Systemair AB (publ): history, ownership, mission, how it works & makes money

A Brief History of Systemair AB (publ)

Systemair AB (publ), founded in 1974 by Gerald Engström in Skinnskatteberg, Sweden, has established itself as a leading manufacturer of ventilation products. The company focuses on energy-efficient ventilation solutions, striving to improve indoor air quality while reducing energy consumption.

In 1980, Systemair launched its first product, a centrifugal fan, marking the beginning of its journey in the HVAC (Heating, Ventilation, and Air Conditioning) industry. By the end of the 1980s, Systemair had expanded its product range significantly, including air handling units and ventilation ducts.

Entering the 1990s, Systemair began its international expansion, opening its first subsidiary in Germany in 1993. The company continued to grow, establishing subsidiaries across Europe and beyond, which included markets in North America, Asia, and Africa.

By 2001, Systemair was listed on the Stockholm Stock Exchange, a milestone that enhanced its visibility and allowed for further growth. The same year, the company reported sales of approximately SEK 1.4 billion.

In 2008, Systemair completed the acquisition of Vexve, a Finnish company specializing in control and regulation products for heating systems, which strengthened Systemair’s product offerings in energy-efficient solutions. As of 2022, Systemair reported consolidated sales of approximately SEK 5.5 billion.

Systemair has prioritized sustainability, aiming for a 20% reduction in energy consumption in its products since 2010. The company's R&D efforts have led to innovative products, including the Systemair VSR series, which focuses on better energy efficiency and lower noise levels.

The company operates in over 40 countries and employs approximately 2,400 people worldwide as of 2023, maintaining a strong market position in Europe, the Middle East, and North America.

As of Q2 2023, Systemair's financial performance indicates a revenue growth of 12% year-over-year, driven by strong demand for energy-efficient HVAC solutions. The company reported an operating profit margin of 10.4%.

The market capitalization of Systemair AB stands at approximately SEK 10.2 billion as of October 2023. The company's share price performance over the past year reflects a growth trend, with a current share price of around SEK 250.

A Who Owns Systemair AB (publ)

As of the latest reports, Systemair AB (publ) is primarily owned by a combination of institutional investors and individual shareholders. The largest shareholders include various funds and investment companies.

The total number of shares outstanding for Systemair AB is approximately 25,320,000. The ownership structure reflects a diverse array of stakeholders, with institutional investors holding a significant majority of shares, amounting to approximately 76.1% of the total share capital.

Moreover, the share performance has seen notable trends in the past fiscal year. As of October 2023, the share price was approximately SEK 200, with a market capitalization near SEK 5.06 billion. The company reported a robust revenue of SEK 5.4 billion for the last fiscal year, marking a year-over-year growth rate of 12.3%.

Systemair’s ownership distribution indicates a strong alignment among larger shareholders, particularly Systemair Group AB, which plays a vital role in guiding corporate strategy. The company continues to attract institutional investments, reflecting confidence in its operational performance and future growth potential.

In addition, the dividend yield for Systemair AB stands at approximately 2.5%, appealing to income-focused investors. The company's consistent performance has made it a key player in the ventilation and air conditioning market, further solidifying its ownership by prominent investment firms.

Overall, the ownership landscape of Systemair AB (publ) is characterized by significant institutional control, complemented by individual investors, showcasing a strong backing for the company's strategic objectives and market outlook.

Systemair AB (publ) Mission Statement

Systemair AB is a leading ventilation company, committed to providing energy-efficient air solutions. The company aims to enhance indoor air quality and environmental sustainability through innovative ventilation products. Their mission encapsulates a strong focus on customer satisfaction, efficiency, and sustainability.

The mission statement reflects Systemair’s commitment to:

• Deliver high-quality ventilation solutions that improve the indoor environment.
• Reduce energy consumption and operational costs for customers.
• Innovate constantly to stay at the forefront of the ventilation industry.
• Contribute to a sustainable future for businesses and communities.
• Enhance customer relationships through reliable products and services.

Systemair operates globally, with a presence in multiple countries including Sweden, Germany, and the United States. In the fiscal year 2022/2023, the company reported a revenue of SEK 5.19 billion, showcasing an increase from SEK 4.81 billion in the previous year.

In accordance with their mission, Systemair emphasizes sustainability by integrating energy-efficient technologies in their product development. The company reported an energy savings potential of up to 50% with some of their latest ventilation solutions, contributing significantly to their alignment with international environmental standards.

Systemair is also focused on improving customer experience. They aim to achieve a customer satisfaction score of over 90%, indicating their dedication to service excellence and product reliability. Continually investing in research and development, Systemair allocates approximately 5% of their revenue to innovate and enhance product offerings.

Furthermore, the company's sustainability initiatives have earned them recognition in the industry. Systemair has been acknowledged for its commitment to reducing carbon emissions by implementing measures that cut down energy use in its operations, having achieved a 30% reduction in greenhouse gas emissions over a three-year period.

Through its clear and focused mission statement, Systemair AB is positioned as a leader in the ventilation market, with a strong commitment to innovation, quality, and sustainability, continuously striving to exceed the expectations of its customers and stakeholders.

How Systemair AB (publ) Works

Systemair AB (publ) is a leading Swedish manufacturer and supplier of ventilation products and systems. Founded in 1974, the company operates in over 45 countries and employs more than 4,000 personnel worldwide. As of the first quarter of the fiscal year 2023, Systemair reported a net revenue of **SEK 1,017 million**, compared to **SEK 915 million** in the same quarter of the previous year, marking an increase of **11.2%** year-over-year.

The company’s product portfolio includes fans, air handling units, heat recovery systems, and air distribution products, catering to both residential and commercial markets. Their innovation focus has led to the development of energy-efficient products that comply with stringent European regulations on energy consumption.

In terms of geographical markets, the largest share of Systemair’s revenue comes from Europe, contributing approximately **78%** of total sales. The Nordics represent **30%**, while Central and Eastern Europe contributes around **20%**. The rest of the world, including North America and Asia, accounts for the remaining **22%**.

Systemair’s operational efficiency is underscored by its gross margin, which stood at **37.5%** in the latest earnings report, reflecting a slight improvement from **36.8%** in the previous year. The company's EBITDA amounted to **SEK 157 million**, translating to an EBITDA margin of **15.4%**.

In terms of investments, Systemair is committed to continuous R&D, allocating approximately **SEK 60 million** in the last fiscal year, representing around **5.9%** of total revenue. This commitment ensures that Systemair remains competitive in the rapidly evolving ventilation market, particularly with increasing demand for sustainable solutions.

For the fiscal year ending April 2023, Systemair reported net income of **SEK 382 million**, with earnings per share (EPS) increasing to **SEK 5.10**, up from **SEK 4.80** the previous year. The company also declared a dividend of **SEK 2.00** per share, reflecting a payout ratio of **39.3%**.

Systemair's stock performance has been robust, with a year-to-date increase in share price of **15%** as of October 2023. The current market capitalization of Systemair is approximately **SEK 6 billion**, signaling strong investor confidence in the company’s long-term growth potential.

As for sustainability, Systemair has set ambitious targets to reduce CO2 emissions by **20%** by 2025, aligning with the EU’s Green Deal. The company’s products are designed to minimize energy use, contributing to lower lifetime costs for users and environmental benefits.

In summary, Systemair AB (publ) continues to exhibit strength in revenue growth, operational efficiency, and commitment to innovation and sustainability within the ventilation industry, positioning itself as a key player in a sector increasingly focused on energy efficiency and environmental responsibility.

How Systemair AB (publ) Makes Money

Systemair AB (publ) operates in the ventilation and indoor climate sector, focusing on the design, manufacture, and distribution of ventilation products. The company is publicly traded on the Nasdaq Stockholm under the ticker symbol SYSR. Its revenue streams are primarily derived from the sale of various ventilation equipment and solutions, with a significant portion coming from the European market.

In the fiscal year ending April 30, 2023, Systemair reported total revenues of SEK 5.76 billion, which marked an increase of 11% compared to the previous year. The company's revenues are segmented into several categories:

• Ventilation products
• Air handling units
• Chilled beams
• Heating and cooling systems
• Service and maintenance solutions

According to the latest earnings report, the breakdown of revenue by product segment is as follows:

Geographically, Systemair has a strong presence in Europe, with the following revenue distribution:

The company's profitability is reflected in its EBIT margin, which stood at 10.2% for the same fiscal year, up from 9.8% the previous year. This improvement can be attributed to operational efficiencies and strong demand dynamics in the European market.

Furthermore, Systemair has invested heavily in innovation, with a research and development budget of approximately SEK 150 million, which is about 2.6% of its total revenue. This investment has enabled the company to launch new energy-efficient products that meet the increasing demand for sustainable building solutions.

To summarize the financial health of Systemair, key metrics as of April 30, 2023, include: