PDF Document 4.74 MB - Investment AB Latour

INDUSTRIAL OPERATIONSSWEGONImportant events in 2012• Slowdown on the market affectedgrowth and profitability.• Sales outside the Nordic region continuedto rise.• Swegon’s market shares grew on theEuropean market.• More investments in marketing andproduct development in order tostrengthen Swegon’s head start inproducts and systems.• Successful launch of Tellus, a completelynew concept for fresh air,chilling, heat and hot tap water.• Hotel Solutions won the Big IndoorClimate Prize at Nordbygg in Stockholm.• Home Solution Apartment, a systemfor need-steered ventilation for housingwon the 2012 Ventilation Prize atVVS Dagene in Oslo.• Hannu Saatamoinen became Swegon’snew CEO.Goal achievement – primary factorsSwegon’s ambition is to develop significantlybetter than the rest of the market.The Group has achieved this for anumber of years, and in 2012 as well.Net sales improved by 3 percent,adjusted for exchange effects, despitethe fact that markets developed negativelyin several important countries. Theoperating margin increased primarilydue our energy efficient products andsystems.Strategy for profitable expansion• Broaden the product range andremain on the cutting edge of theproduct areas in which Swegon is aleader as well as develop new systemsolutions. This will be achievedthrough continued investments inproduct development as well asthrough strategic acquisitions.• Continue expansion on new marketsand markets with low penetration.Europe will be the primary growthmarket in the coming years, but thereare also possibilities for expansionoutside of Europe. Expansion will beachieved through both acquisitionsand existing operations.Swegon’s customersThe market for air treatment generallyfollows the construction industry’s developmentbut at a slightly faster rate ofgrowth. This is a result of a greater needfor high quality ventilation systems, inboth new buildings and in renovations.Historically speaking Swegon’s customersare found among contractors,ventilation and sanitation consultantsand architects. However, constructioncompanies and property owners arebecoming more and more important.Stringent requirements from authoritiesand demanding consumers makecompanies in the Nordic region leadersin air treatment in terms of function andINTERNATIONAL EXPANSIONNET SALES AND OPERATING PROFITSEK mSEK m3,000400DISTRIBUTION OF NET SALES PERMARKETSwegon has continued its geographic expansion in 2012,despite the economic downturn. At the end of the yearexports were 72 percent of the company’s sales and salesoutside the Nordic region were record high.2,5002,0001,5001,000500030020010002008 2009 2010 2011 2012Net salesOperating resultSweden28 %Other Nordic30 %Otherworld42 %NET SALES AND PROFITLatour´sminimum(SEK m) 2012 2011 2010 2009 2008 goalNet sales 2,785 2,707 2,153 2,081 2,312 >10 %(of which export) 2,010 1,940 1,497 1,384 1,529Operating profit 326 1) 312 208 226 293Operating capital 2) 1,093 1 135 759 673 606Operating margin, % 11.7 11.5 9.7 10.8 12.7 >10Return on operating capital, % 29.8 27.5 27.4 33.5 48.3 >20Investments 34 70 198 82 70No. of employees 1,340 1,288 1,054 992 1,0471)After restructuring costs2)AveragePROPORTION OF THE GROUP NETASSET VALUE, OPERATING PROFITAND NET SALES18 % 54 %41 %Proportion of Proportion of Proportion ofGroup net Group Groupasset value operating profi t net sales34 LATOUR ANNUAL REPORT 2012