Systemair AB Q4 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : It's Carl from Nordea. I have a few questions. First of all, if you could give us any idea of what May and the first week of June looks like in the different markets if you, for instance, compare it to April levels.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : It's -- how -- May levels and sales for order intake levels and also in the first week of June, if you compare that to what you saw in April.

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay. Perfect. And also, you mentioned a lower back -- order backlog in the Nordics. Is it possible to try to quantify that? And also, on that note, have you seen improvement in Norway and Finland, which you pointed out as the weakest markets in the Nordics?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay. Perfect. And I have a few more if I may. I mean looking at the gross margin in the quarter, it looks fairly decent actually. Could you just give some flavors what's behind that?

Question: Carl Ragnerstam - Nordea Markets, Research Division - Analyst : Okay. Perfect. And also on that note, since you -- despite the COVID-19 outbreak, do you think that you are able to implement more or less all of the measures you talked about on the Capital Markets Day, including pricing [Geniox] laid out, et cetera, despite the outbreak?

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : I wanted to follow up on the previous questions there on the underlying margin improvement. During the CMD, you showed a great chart there, how to get to your 10% EBIT margin. And I wanted to -- you mentioned pricing there, Roland, and how much. But is it mainly pricing? And what are the main levers ahead sort of to reach that 10% EBIT? Would you say that the pricing, which was 0.8 percentage points is now fully sort of reflected in the margin? And are you now more focusing on Menerga and a few factories and so on? Or what main levers would you say are to be expected going forward? Maybe the easier question is, is pricing fully now reflected? Is the pricing sort of lever fully done now? And would you say -- was there more?

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : For the longer term -- midterm, you would expect...

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : I understand, in the midterm...

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : And if we look at, for example, the IT transformation that you've been talking about, where are you in that process?

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : Okay. That's clear. And I obviously understand that it's difficult to comment on future order intake. I would have expected you to have sort of a vague outlook as well, which -- yes, it's always natural. But on -- based on your current backlog, what can you say about growth, organic growth in the coming quarters? Was this the worst quarter for you? Are you expecting worse to come sort of -- what is your base case in terms of organic growth going forward, would you say? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 09, 2020 / 7:00AM, SYSR.ST - Q4 2020 Systemair AB Earnings Call

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : Yes. Okay. So that late cyclical comment should not be sort of exaggerated in your outlook. And on the goodwill impairments, what are future risks there? Is that something you could comment on I guess. Maybe not -- maybe that's -- maybe not possible.

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : And a final comment -- final question on M&A. Does the current market environment open up for opportunities? Or how do you view that?

Question: Douglas Lindahl - Kepler Cheuvreux, Research Division - Analyst : Yes. Just one more if I may on Germany, which you said showed growth in the quarter. Is that sort of normal -- is it a continuation of the previous trend? Or is it -- do you see Germany becoming stronger because there we've seen obviously the climate package and regulation moving in your favor, so to say?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : I have a question. The Turkish hospital, do you have more projects like that? And when will this one be booked? When will we see the margins in your figures?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : Yes. When there is more focus on delivery times than prices, we like that, too. Can you talk about the capacity utilization in your factories right now since all of them are open and are coming towards the normal level?

Question: Marcela Klang - Handelsbanken Capital Markets AB, Research Division - Analyst : Clearly. And the final question, the increased inventories during the quarter when the customers refused to receive orders, what is the situation now with your inventory level?