[PDF] - Gunnebo Interim Report January-June 2007 Gran Gezelius President PDF Document

SLIDE 1

Gunnebo Interim Report January-June 2007

Göran Gezelius President and CEO Gunnebo AB 19 July 2007

16 July 2007, page 2

”It is encouraging to see a strong improvement of the

perating result during the first half of the year: a profit of

115 MSEK compared to 41 MSEK last year (-14 MSEK including items affecting comparability). For the fourth quarter in a row, the growth in invoiced sales surpassed our target of 5% increase. After the strong growth in order intake in the first quarter we experienced a dip in the second quarter. For the first half year as a whole, the order intake rose by 8% . Göran Gezelius President and CEO

SLIDE 2

16 July 2007, page 3

Comments by the CEO on April-June 2007

The order intake declined organically by 3% to

MSEK 1,720 (1,784)

Invoiced sales rose organically by 7% to MSEK

1,763 (1,664)

The operating result improved to MSEK 88

(22). The previous year’s result included net cost items affecting comparability of MSEK 21.

The result after tax amounted to MSEK 42

(loss 1)

Result per share amounted to SEK 0.90 (0.00)
The operating cash flow was a deficit of MSEK

58 (deficit MSEK 40)

16 July 2007, page 4

Comments by the CEO on January-June 2007

The order intake rose organically by 8% to

MSEK 3,604 (3,392)

Invoiced sales rose organically by 9% to MSEK

3,366 (3,146)

The operating result improved to MSEK 115

(loss 14). The previous year’s result included net cost items affecting comparability of MSEK 55.

SLIDE 3

16 July 2007, page 5

Comments by the CEO on January-June 2007

The result after tax amounted to MSEK 44

(loss 39)

Result per share amounted to SEK 0.95

(loss 0.85)

The operating cash flow improved to a

deficit of MSEK 24 (deficit 99)

The operating profit for 2007 as a whole is

expected to be significantly better than in the previous year

16 July 2007, page 6

Invoiced sales and organic growth

4
2

2 4 6 8 10 12 14

2000
1000

1000 2000 3000 4000 5000 6000 7000

2005 2005 % MSEK 2004 2004 2006 2006 2007 2007 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 1 2

Organic grow th, quarterly values ( left-hand scale) I nvoiced sales, m oving 1 2 -m onths ( right-hand scale)

SLIDE 4

16 July 2007, page 7

Order intake

1 ,7 8 4 245 767 203 569 2006

3

7

2
7
4

% * 1 ,7 2 0 2 5 7 7 4 2 1 8 5 5 3 6 2 0 0 7 April-June Full year January-June 2,831 2,834 1,383 4 1 ,4 2 6 Business Line Site Protection 8 14 6 10 % * 3 ,6 0 4 5 2 4 3 9 7 1 ,2 5 7 2 0 0 7 3 ,3 9 2 466 381 1,162 2006 6 ,6 5 8 6 ,7 6 2 Group total 919 946 Business Line Secure Storage 665 745 Business Line Retail 2,243 2,237 Business Line Bank 2005 2006 MSEK * Organic grow th

Revenue

1 ,6 6 4 245 673 169 577 2006 7 4 11 7 1 % * 1 ,7 6 3 2 5 3 7 5 7 1 7 9 5 7 4 2 0 0 7 April-June Full year January-June 2,702 2,736 1,244 13 1 ,3 9 8 Business Line Site Protection 9 10 7 3 % * 3 ,3 6 6 5 0 8 3 4 0 1 ,1 2 0 2 0 0 7 3 ,1 4 6 469 323 1,110 2006 6 ,4 7 7 6 ,7 2 7 Group total 937 995 Business Line Secure Storage 667 714 Business Line Retail 2,171 2,282 Business Line Bank 2005 2006 MSEK

16 July 2007, page 8

Gross margin: Changes Jan-June 2007 / Jan-June 2006

Gross margin January-June 2006

29,4%

Impact on gross margin that has not affected

reclassification of S&A costs to Cost of Goods Sold:

0,7%
Impact on gross margin that has had an impact
n operating result, as invoicing of orders taken
n an average lower margin within mainly

Business Line Site Protection, and other changes as price, productivity and cost effects

0,6%
Gross margin January-June 2007:

28,1%

SLIDE 5

16 July 2007, page 9

Order book development 2007

Orders on hand, value end Q2:

MSEK 1,700

The process from offer to invoicing

has a time-cycle depending on among others the kind of business, size and complexity

Around MSEK 350 are orders based
n tenders from 2006
Those tenders will mainly be

invoiced during Q3, and to a smaller extent in Q4

2 0 4 0 6 0 8 0 1 0 0 %

Invoicing based on tenders 2007 Invoicing based on tenders 2006 Q1 Q2 Q3 Q4

16 July 2007, page 10

In brief

7%

3%

Organic

40

0.00

1
1

1,3 22 1,644 1,784 2006

5 8

0 .9 0 4 2 6 6 5 ,0 8 8 1 ,7 6 3 1 ,7 2 0 2 0 0 7 April- June 9% 8% Organic 2006 2 0 0 7 MSEK

0.85

0 .9 5 Result per share, SEK

55

6 9 Result after financial items

39

4 4 Net result January-June

99
2 4

Operating cash flow

14

1 1 5 Operating result

0,4

3,146 3,392 3 ,4 3 ,3 6 6 3 ,6 0 4 Operating margin, % Invoiced sales Order intake

SLIDE 6

16 July 2007, page 11

Gross margin and other operating costs

Excluding items affecting comparability

5 10 15 20 25 30 35 5 10 15 20 25 30 35

2005 2005 % % 2004 2004 2006 2006 2007 2007 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 1 2

Gross m argin Other operating costs Four period linear trend operating costs

16 July 2007, page 12

40
20

20 40 60 80 100 120 140 160

100
50

50 100 150 200 250 300 350 400

MSEK MSEK 2006 2006 2004 2004 2005 2005 1 2 3 4 1 2 3 4 1 2 3 1 2 3 4 1 2 3 4 1 2 3 4 1 2 4 1 2

Result after financial items*

2007 2007

Quarterly values ( left-hand scale) Moving tw elve m onths ( right-hand scale)

* * Exc Exc. . I tem s I tem s affecting affecting com parability com parability and goodw ill and goodw ill depreciation depreciation

SLIDE 7

16 July 2007, page 13

Operating cash flow

Before financial items, tax and structuring costs

100
50

50 100 150 200 250 300

MSEK 2006 2006 2004 2004 2005 2005 1 2 3 4 1 2 3 4 1 2 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2007 2007

Quarterly values

16 July 2007, page 14

Full year Jan-June April-June

205
243
55
21
Items affecting comparability

3 0 8 2 1 6 4 1 1 1 5 4 3 8 8 Total before item s affecting com parability

67
58
30
3 1
16
1 4

Central items

Operating result

2 2 19 7

12

45 2006 8 8 2 1 2 9

5

5 7 2 0 0 7 108 31

15

1 7 Business Line Site Protection 1 1 5 4 5

1 0

9 4 2 0 0 7

1 4

39

18

65 2006 1 0 3

2 7

Group total 67 88 Business Line Secure Storage 21

20

Business Line Retail 179 175 Business Line Bank 2005 2006 MSEK

SLIDE 8

16 July 2007, page 15

Full year Jan-June April-June 4 .8 3 .2 1 .3 3 .4 2 .6 5 .0 Total before item s affecting com parability

Operating margin

1 .3 7.8 1.0

7.1

7.8 2006 5 .0 8 .3 3 .8

2 .8

9 .9 2 0 0 7 4.0 1.1

1.2

1 .2 Business Line Site Protection 3 .4 8 .8

2 .9

8 .4 2 0 0 7

0 .4

8.3

5.6

5.9 2006 1 .6

0 .4

Group total 7.2 8.8 Business Line Secure Storage 3.1

2.8

Business Line Retail 8.2 7.7 Business Line Bank 2005 2006 %

16 July 2007, page 16

Share of Group revenue: 33%

Order intake in Nordic, Spain and Portugal, and agent markets in Asia, Africa and Middle East Order intake in France, Germany, Belgium, Italy and Great Britain Robotized Safe Deposit Lockers (SDL’s) Traditional and automated banking equipm ent

Business Line Bank

Full year Jan-June April-June 5.9 65 1,110 1,162 2006 8 .4 9 4 1 ,12 0 1 ,25 7 2 0 07 2,243 2,237 569 5 3 6 Order intake 7.7 175 2,282 2006 7.8 45 577 2006 9 .9 5 7 5 7 4 2 0 07 Operating margin, % Operating result Revenue MSEK 179 8.2 2,171 2005

SLIDE 9

16 July 2007, page 17

Share of Group revenue: 10%

Markets for Electronic Article Surveillance in among others Russia, Sweden and Portugal Order intake in Nordic, Belgium, Holland, Great Britain, Spain and Italy SafePay™ Security doors and deposit safes

Business Line Retail

Full year Jan-June April-June

5.6
18

323 381 2006

2 .9
1 0

3 4 0 3 9 7 2 0 07 665 745 203 1 8 5 Order intake

2.8
20

714 2006

7.1
12

169 2006

2 .8
5

1 7 9 2 0 07 Operating margin, % Operating result Revenue MSEK 21 3.1 667 2005

16 July 2007, page 18

Share of Group revenue: 42%

Gunnebo indoor perimeter protection Changes in product mix and production disturbances Order intake in France, Holland, Great Britain and Spain Good development of invoiced sales, among others thanks to mild winter

Business Line Site Protection

Full year Jan-June April-June

1.2
15

1,244 1,383 2006 1 .2 1 7 1 ,39 8 1 ,42 6 2 0 07 2,831 2,834 767 7 4 2 Order intake 1.1 31 2,736 2006 1.0 7 673 2006 3 .8 2 9 7 5 7 2 0 07 Operating margin, % Operating result Revenue MSEK 108 4.0 2,702 2005

SLIDE 10

16 July 2007, page 19

Share of Group revenue: 15%

Limited growth in Europe Earlier re-structuring programmes Agent markets and OEM-customers

Business Line Secure Storage

Full year Jan-June April-June 8.3 39 469 466 2006 8 .8 4 5 5 0 8 5 2 4 2 0 07 919 946 245 2 5 7 Order intake 8.8 88 995 2006 7.8 19 245 2006 8 .3 2 1 2 5 3 2 0 07 Operating margin, % Operating result Revenue MSEK 67 7.2 937 2005

16 July 2007, page 20

Gunnebo One Company in France

Legally, the three major companies

merged as of July 1 2007

These three companies are migrated to a

single common ERP-system

Order intake and invoiced sales unchanged

first half year compared to same period 2006

Improved operating result first half year

compared to same period 2006

The integration programme is expected to

continue according to plan also during the second half of 2007

SLIDE 11

16 July 2007, page 21

55
3 9

16

5 5
41
1 4
938

9 2 4

2,222

3,146 2006

4 4
2 5

6 9

4 6

1 1 5

8 3 1

9 4 6

2 ,4 2 0

3 ,3 6 6 2 0 0 7 Jan-June

Consolidated income statement

Full year April- June

9 7
1 2 8
1

4 2 Net result for the period 2 0 1 8 1 9 2 5 4 8 9 5 0 1 Gross operating profit

2 1
1
23

2 2

467
1,175

1,664 2006

2 4

6 6

2 2

8 8

4 1 3
1 ,2 6 2

1 ,7 6 3 2 0 0 7

205
243

* Whereof items affecting comparability

12
1 1 6
89
2 7
1 952
4,802

6,727 2006

70

Net financial items 3 3 Result after financial item s

130

Taxes 1 0 3 Operating result

1 915

Other operating costs*

4,459

Cost of sales 6,477 Revenue 2005 MSEK

16 July 2007, page 22

1,675 1,761 1,627 1 ,7 2 5 Other provisions and liabilities 1,950 1,882 2,126 1 ,9 3 9 Interest-bearing provisions and liabilities

Consolidated balance sheet

3 1 Decem ber 3 1 June 1,208 1,044 1,106 1 ,0 7 2 Equity 744 628 692 6 1 2 Tangible fixed assets 4 ,8 5 9 4 ,8 5 9 134 1,711 944 188 116 1,074 2006 4 ,7 3 6 4 ,7 3 6 1 4 1 1 ,7 5 4 8 1 7 2 1 3 1 1 7 1 ,0 8 2 2 0 0 7 4 ,8 3 3 4 ,6 8 7 Total equity and liabilities 4 ,6 8 7 193 1,766 718 207 119 1,056 2006 1,639 Operating receivables 169 Liquid funds 4 ,8 3 3 Total asset 838 Inventory 219 Financial fixed assets 126 Other intangible fixed assets 1,098 Goodwill 2005 MSEK

SLIDE 12

16 July 2007, page 23

3.7 1.9 0.0 2 .0 Profit margin, % (EBT)

Excluding items affecting comparability

Key ratios

Full year Jan-June 6.8 5.4 3.3 5 .4 Operating margin before depreciation, % (EBI TDA) 1.3 12.7 9.8 2006 3 .4 1 0 .9 9 .8 2 0 0 7 3.2 7.3 7.1 2006

* During the last 12-month period

4.8 Operating margin, % (EBI T) 12.8 Return on equity, % * 10.4 Return on capital employed, % * 2005

16 July 2007, page 24

Financial targets

In the long term, Gunnebo shall earn a

return on capital employed of at least 15% and attain an operating margin of at least 7%

The equity ratio shall not fall below 30%
The Group shall achieve organic growth of at

least 5% each year

SLIDE 13

16 July 2007, page 25

Outlook for 2007 as a whole

The operating result is expected to be

significantly better than the previous year’s

result. However, in view of developments in

2006 and some delay to the Gunnebo One Company integration project, it is considered that it will not be possible to reach the financial targets in all respects during the 2007 financial year