Annual Report
2013/2014
DRIVING
EXPANSION.
ENSURING
CONTINUITY.
MAKING STRONG
COMPANIES STRONGER.

Spheros GmbH

Spheros

AIR CONDITIONING FOR BUSES

Spheros develops and produces air conditioning systems, engine-independent heating systems, water pumps and roof hatches for buses. The company’s core competence is air management in buses: it has supplemented this in recent years by developing, industrialising (purchasing components and configuring them) and integrating entire electronics systems into bus bodies. The company’s differentiated portfolio with premium, standard and basic products enables it to cover demand in both mature western markets and fast-growing emerging countries.

Spheros is an international company with six production sites on three continents. It is the global market leader in its largest business segment, the development and assembly of customised bus air control systems. The world market for buses is growing in structural terms, driven by several trends, such as urbanisation, the mobility needs of a growing middle class and the general growth of the population.

POTENTIAL FOR DEVELOPMENT

Spheros aims to grow even faster than the market. To this end, it intends to further drive its international expansion through local partnerships, boosting its export business and founding further subsidiaries abroad. The company plans to extend its existing competences to other areas. It aims to further strengthen its electronics expertise and capture the market for refrigerated trucks in the Middle East. In addition, it intends to develop new products for use in buses.

Spheros has already taken first steps towards reaching this goal: it has established a spare parts business in South America by founding a subsidiary in Brazil. In addition, a joint venture in Brazil under Spheros’ industrial management has been developing and producing electrical and electronic components for buses since 2013. After opening a sales office in Australia, the company has now completed the expansion of its international presence. Revenues with new customers will consolidate its market share in the air conditioning business.

2014 FINANCIAL YEAR

Spheros’ revenues and earnings developed as expected in 2014 in local currency and were significantly up on the previous year’s values. Especially its European business was above expectations. In Germany, for example, the liberalisation of long-distance bus services triggered a sharp rise in demand for buses and therefore for Spheros’ products. The company’s new bus electronics products have been well received on the market. In Turkey, Brazil and India, the devaluation of the respective local currency had a negative effect on earnings. The company’s debt reduction was as expected.

OUTLOOK AND OBJECTIVES

In 2015, the company aims to expand its air control management business in the US and launch a new generation of heating systems in Asia. In addition, it expects a continued rise in demand following the liberalisation of the long-distance bus market in Germany. Based on this outlook, the company expects to boost revenues and generate more profit accordingly.

€ 12.9mn

INVESTMENT OF DBAG

65.3%

SHARE OF DBAG FUND V

MBO

TYPE OF INVESTMENT

15.7%

SHARE OF DBAG

MARCH 2012

INITIAL INVESTMENT

770

EMPLOYEES

REVENUES in €mnRevenues Spheros GmbH

Gilching (Germany) / www.spheros.com