Gunnebo Year-end release 2008 Gran Gezelius President and CEO - - PDF document

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Gunnebo Year-end release 2008 Gran Gezelius President and CEO - - PDF document

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Gunnebo Year-end release 2008 Gran Gezelius President and CEO Gunnebo AB February 6, 2009 CEO Comments To Fourth Quarter 2008 Both order intake and operating profit for the fourth quarter were on the same level as last year, despite

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SLIDE 1

Gunnebo Year-end release 2008

Göran Gezelius President and CEO Gunnebo AB February 6, 2009

CEO Comments To Fourth Quarter 2008

” Both order intake and operating profit for the fourth quarter were

  • n the same level as last year, despite significant concerns on the

financial markets and in many areas of the industry. We are seeing a downturn on some markets and among certain g g customers, but increases on others thanks to our strategy of

  • ffering complete security solutions to focused customer groups.

The framework contract signed with the European Commission to upgrade security at its offices in a hundred or so sites around the world is a good example of our capacity and business

  • pportunities.

6 February 2009, page 2

Despite the banking crisis, Gunnebo’s order intake for Business Line Bank increased during the fourth quarter, partly due to some strategic orders from French banks, but orders from banks also increased in the Nordic region, the UK, Belgium and Italy.”

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SLIDE 2

CEO Comments To Fourth Quarter 2008

  • Order intake increased to MSEK 1,767

(1,711). Organically it decreased by 2% .

  • Net sales amounted to MSEK 1,985 (2,010).

Organically it decreased by 5% .

  • The operating profit amounted to MSEK 140

(146), and the operating margin to 7.1% (7.3).

  • Profit after tax amounted to MSEK 81 (44).

6 February 2009, page 3

  • Earnings per share were SEK 1.75 (0.95).
  • The operating cash flow amounted to MSEK

301 (222).

Items affecting comparability and Currency effects

Fourth quarter MSEK 2 0 0 8 2 0 0 7 Redundancies etc (net)

  • 20
  • 4

Currency effects + 17 6 Total

  • 3

2 Full year MSEK 2 0 0 8 2 0 0 7

6 February 2009, page 4

Redundancies etc (net)

  • 47
  • 5

Currency effects

  • 1

8 Total

  • 4 8

3

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SLIDE 3

Fourth Quarter In Brief: Order Intake

  • Order intake decreased organically by 2 per

cent

  • Order intake increased organically for

500 1 000 1 500 2 000

Order I ntake Q4 2 0 0 4 -2 0 0 8 , MSEK

Order intake increased organically for Business Lines Bank and Site Protection, while it decreased for Retail and Secure Storage

2004 2005 2006 2007 2008 6 February 2009, page 5

Fourth Quarter In Brief: Net Sales

  • Net sales decreased organically by 5 per

cent

  • Business Line Secure Storage showed

1 500 2 000 2 500

Net sales Q4 2 0 0 4 -2 0 0 8 , MSEK

Business Line Secure Storage showed

  • rganically a positive development, + 5 per

cent, while other Business Lines showed a decrease

500 1 000 2004 2005 2006 2007 2008 6 February 2009, page 6

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SLIDE 4

CEO Comments To Full Year 2008

  • Order intake increased to MSEK 6,965

(6,938). Organically it increased by 1% .

  • Net sales amounted to MSEK 6 903 (7 025)
  • Net sales amounted to MSEK 6,903 (7,025).

Organically it decreased by 2% .

  • The operating profit amounted to MSEK 281

(349), and the operating margin to 4.1% (5.0).

  • Profit after tax amounted to MSEK 115 (128).

6 February 2009, page 7

CEO Comments To Full Year 2008

  • Earnings per share were SEK 2.50 (2.80).
  • The operating cash flow amounted to MSEK

255 (66) 255 (66).

  • The Board and the President propose no

dividend for 2008 (2007: SEK 1.60 per share).

6 February 2009, page 8

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SLIDE 5

EBIT-bridge December 2007 – December 2008

MSEK

6 February 2009, page 9 EBIT Dec 2007 Comparable EBIT Acquisitions/ Divestments Volume Currency Translation & Transaction impact Items affecting comparability 2008 Residual EBIT Dec 2008 Items affecting comparability 2007

%

8000 10000 20 25

MSEK

Organic Growth, Net Sales and Order Intake

6000 ‐4000 ‐2000 2000 4000 6000 15 ‐10 ‐5 5 10 15

1 2 3 4 5 6 7 8 9 10 11 12

6 February 2009, page 10

2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7

‐6000 ‐15

2 0 0 8 2 0 0 8

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Organic growth net sales, quarterly data (left-hand scale) Organic growth order intake, quarterly data (left-hand scale) Net sales, moving 12-months (right-hand scale)

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SLIDE 6

30 35 30 35

% %

Gross Margin And Operating Costs

Excluding items affecting comparability* 5 10 15 20 25 5 10 15 20 25

6 February 2009, page 11

1 2 3 4 5 6 7 8 9 10 11 12

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7 2 0 0 8 2 0 0 8

Gross margin Operating costs in relation to Net Sales

* 2006 is excluding items affecting comparability

300 350 400 120 140 160

Profit/ Loss After Financial Items*

MSEK MSEK

‐50 50 100 150 200 250 300 ‐20 20 40 60 80 100 120

6 February 2009, page 12

2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7

‐100 50 ‐40 20

1 2 3 4 5 6 7 8 9 10 11 12

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

2 0 0 8 2 0 0 8

Quarterly values (left-hand scale) Moving twelve months (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

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SLIDE 7

Mkr

7000 8000 300 350

Operating Cash Flow

Before financial items, tax and restructuring costs

MSEK

‐2000 ‐1000 1000 2000 3000 4000 5000 6000 ‐100 ‐50 50 100 150 200 250

6 February 2009, page 13

2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7

‐2000 ‐100

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

2 0 0 8 2 0 0 8

Quarterly values

In Brief

October - Decem ber Full year MSEK 2 0 0 8 2007 Organic 2 0 0 8 2007 Organic g g Order intake 1 ,7 6 7 1,711

  • 2

6 ,9 6 5 6,938 1 Net sales 1 ,9 8 5 2,010

  • 5

6 ,9 0 3 7,025

  • 2

Operating profit/ loss 1 4 0 146 2 8 1 349 Operating margin, % 7 .1 7.3 4 .1 5.0 Profit/ loss after financial items 1 1 4 121 1 8 0 254 Profit/ loss after tax 8 1 44 1 1 5 128

6 February 2009, page 14

Profit/ loss after tax 8 1 44 1 1 5 128 Earnings per share, SEK 1 .7 5 0.95 2 .5 0 2.80 Operating cash flow 3 0 1 222 2 5 5 66

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SLIDE 8

Business Line Bank

Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Order intake 6 0 1 554 2 ,2 7 6 2,327 2008: ” Wait and see”-market as a consequence

  • f the banking crisis

Net sales 6 4 8 681 2 ,2 0 8 2,326 Operating profit/ loss 6 7 79 1 6 8 221 Operating margin, % 1 0 .3 11.6 7 .6 9.5 Share of Group sales: 32%

6 February 2009, page 15

  • f the banking crisis

2008: A number of major orders received during the year Q4: Order intake increased organically by 4% . Particularly good development in France, UK, Belgium and EU-East

sales: 32%

Business Line Retail

Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Order intake 1 5 3 202 7 3 4 803 Q4: Order intake Net sales 2 1 5 217 7 7 9 739 Operating profit/ loss 7 13 6

  • 5

Operating margin, % 3 .3 6.0 0 .8

  • 0.7

Share of Group sales: 11%

6 February 2009, page 16

2008: The installed SafePay base has functioned well during the year, as have new pilot installations 2008: Positive full year operating profit of MSEK 6 (-5)

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SLIDE 9

Business Line Site Protection

Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Order intake 7 2 6 670 2 ,8 5 1 2,755 Q4: Framework contract signed with the European Commission Net sales 8 0 0 818 2 ,8 5 0 2,920 Operating profit/ loss 5 2 48 9 1 97 Operating margin, % 6 .5 5.9 3 .2 3.3 Share of Group sales: 41%

6 February 2009, page 17

Q4: Market development 2008: Indoor Perimeter Protection (Gunnebo Troax)

sales: 41%

Business Line Secure Storage

Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 O de intake 2 8 7 285 1 1 0 4 1 053 Q4: Net sales + 5 per cent Order intake 2 8 7 285 1 ,1 0 4 1,053 Net sales 3 2 2 294 1 ,0 6 6 1,040 Operating profit/ loss 2 4 27 7 9 99 Operating margin, % 7 .5 9.2 7 .4 9.5 Share of Group sales: 16%

6 February 2009, page 18

2008: Establishment of a European Distribution Centre 2008: Development of raw-material prices

sales: 16%

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SLIDE 10

Group Liquidity and Financial Position

  • The Group’s liquid funds at the end of the period amounted to

MSEK 169 (218) and equity totalled MSEK 1,073 (1,142).

  • Translation of foreign subsidiary balance sheets had an adverse effect on

equity of MSEK 79, primarily due to the stronger Swedish krona against the UK pound and some other currencies the UK pound and some other currencies.

  • Net debt amounted to MSEK 1,967 (1,746), mainly due to

exchange rate fluctuations.

  • A weaker Swedish krona in relation to the euro resulted in a higher

balance sheet total.

6 February 2009, page 19

  • Group equity did not increase to the same extent. This resulted in a

fall in the equity ratio to 20% (24% ) while the debt/ equity ratio increased to 1.8 (1.5).

Equity Bridge December 2007-December 2008

Equity Bridge, MSEK

6 February 2009, page 20

Equity Dec 2007 Hedge Translation impact Result Dividend Equity Dec 2008

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SLIDE 11

Bridge Net Debt

Bridge Net debt, MSEK

6 February 2009, page 21

Net interest- bearing debt Dec 2007 Cash from

  • perations

Investments Dividend Translation- & Hedge impact Net interest- bearing debt Dec 2008

Credit Facilities

Credit Facilities December 2008 Drawn Frame

6 February 2009, page 22

Syndicated Loan October 2010 Bilateral December 2010 Subordinated loan December 2011 Short term facilities Total

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SLIDE 12

Financial Targets

  • Gunnebo shall earn a return on capital

employed of at least 15% and 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.

6 February 2009, page 23

Financial Targets

6 February 2009, page 24

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SLIDE 13

CEO Comments To Fourth Quarter 2008

”Moving into the first quarter of 2009, the business landscape is irregular and difficult to interpret; investments in some areas will need to be combined with savings and cutbacks in others. Our g

  • rder book at the end of 2008 is roughly the same in terms of

volume as it was a year ago, and the number of outstanding tenders for major projects is considerably higher than last year, and higher than at the end of the third quarter of 2008.”

6 February 2009, page 25

Göran Gezelius President and CEO

www.gunnebo.com

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SLIDE 14

Operating profit/ loss and operating margin

Oct-Dec Full year 2 0 0 8 2 0 0 7 2 0 0 8 2 0 0 7 MSEK % MSEK % MSEK % MSEK %

Business Line Bank

6 7 1 0 .3 79 11.6 1 6 8 7 .6 221 9.5

Business Line Retail

7 3 .3 13 6.0 6 0 .8

  • 5
  • 0.7

Business Line Site Protection

5 2 6 .5 48 5.9 9 1 3 .2 97 3.3

Business Line Secure Storage

2 4 7 .5 27 9.2 7 9 7 .4 99 9.5 Central items

  • 1 0
  • 21
  • 6 3
  • 63
  • G o

tot l 1 4 0 7 1 146 7 3 2 8 1 4 1 3 4 9 5 0

6 February 2009, page 27

Group total 1 4 0 7 .1 146 7.3 2 8 1 4 .1 3 4 9 5 .0

Consolidated income statement

Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Net sales 1 ,9 8 5 2,010 6 ,9 0 3 7,025 Cost of goods sold

  • 1 ,4 2 4
  • 1,443
  • 4 ,9 5 7
  • 5,040

Gross profit 5 6 1 567 1 ,9 4 6 1,985 Other operating costs, net

  • 4 2 1
  • 421
  • 1 ,6 6 5
  • 1,636

Operating profit/ loss 1 4 0 146 2 8 1 349 Net financial items

  • 2 6
  • 25
  • 1 0 1
  • 95

Profit/ loss after financial

6 February 2009, page 28

item s 1 1 4 121 1 8 0 254 Taxes

  • 3 3
  • 77
  • 6 5
  • 126

Profit/ loss for the period 8 1 44 1 1 5 128

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SLIDE 15

Consolidated balance sheet

3 1 Decem ber MSEK 2 0 0 8 2007 Goodwill 1 ,2 4 0 1,103 Other intangible assets 1 2 0 129 T ibl t Tangible assets 6 2 5 584 Financial assets 3 4 6 168 Inventories 9 1 3 789 Current receivables 1 ,8 4 9 1,846 Liquid funds 1 6 9 218 Total asset 5 ,2 6 2 4,837

6 February 2009, page 29

, , Equity 1 ,0 7 3 1,142 Long-term liabilities 2 ,1 4 2 1,604 Current liabilities 2 ,0 4 7 2,091 Total equity and liabilities 5 ,2 6 2 4,837

Key ratios

Full year 2 0 0 8 2007 Return on capital employed, % 9 .2 11.9 Return on equity, % 1 0 .4 11.7 Gross margin, % 2 8 .2 28.3 Operating profit/ loss before depreciation (EBITDA), MSEK 4 1 1 488 Operating profit/ loss (EBIT), MSEK 2 8 1 349 Operating margin before depreciation (EBITDA), % 6 .0 6.9 Operating margin, % (EBIT) 4 .1 5.0

6 February 2009, page 30

Profit margin, % (EBT) 2 .6 3.6 Capital turnover rate, times 2 .2 2.3 Equity ratio, % 2 0 24 Interest coverage ratio, times 2 .9 3.7 Debt/ equity ratio, times 1 .8 1.5