nterim Report January-Septem ber 2 0 1 3 elephone Conference - - PDF document

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nterim Report January-Septem ber 2 0 1 3 elephone Conference - - PDF document

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nterim Report January-Septem ber 2 0 1 3 elephone Conference October 24, 2013 CEO Comments The quarter has developed well and order intake grew organically by 10% . Asia-Pacific continued to show excellent growth, organically it

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nterim Report January-Septem ber 2 0 1 3

elephone Conference October 24, 2013

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  • The quarter has developed well and order intake

grew organically by 10% .

  • Asia-Pacific continued to show excellent growth,
  • rganically it increased by 45% .
  • Americas grew organically by 8% .
  • Markets in Europe generally remained unstable and

showed no signs of an actual recovery.

  • Focus on adapting costs in Europe has produced

good results.

  • Focus to move gravity to growth markets and

adjust cost-structure in Europe continuing, contributed to improved margins during the quarter.

  • In the third quarter business outside of Europe

accounted for 42% of net sales.

  • SafePay & EAS on the right track.
  • Moving point of gravity and cost reductions in

Europe will continue.

  • Operating margin amounted to 7.1% in the

quarter.

CEO Comments

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SLIDE 3

8 October 2013, page 3

  • During the quarter, a number of orders that are

fully in line with the Group’s strategy were received:

  • Brazil: breakthrough in the CIT customer segment

with an order for cash handling solutions.

  • Korea: a major order from Samsung for entrance

control.

  • Belgium: an important order for solutions to tighten

security at airport check-in from TUI Airlines

  • Germany: a major retail chain is continuing to

streamline cash handling in its stores with equipment from Gunnebo

  • Spain: Bankia has commissioned Gunnebo to

upgrade security in its branch network in line with new legal requirements.

CEO Comments

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8 October 2013, page 4

Platform In South Korea Acquired

  • ATG Entrance Corporation, distributor of Gunnebo turnstile

product range into the South Korean market, acquired July 5

  • Annual turnover of some 4 MEUR and 13 employees in its sales
  • ffice in Seoul
  • Solid customer base with leading South Korean corporations as

LG, Samsung, Hyundai and the government of South Korea

  • Holds a market leading position on the South Korean market

for turnstiles

“The acquisition of ATG Entrance Corporation is very much in line with Gunnebo’s strategic agenda to move the point of gravity to markets outside Europe. ATG is the South Korean market leader in turnstiles with a strong existing customer

  • base. We also see ATG as a good platform to introduce other
  • fferings from Gunnebo into the South Korean market as

well as to surrounding countries.”

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8 October 2013, page 5

Gunnebo Extends Reach in Southeast Asia

  • New offices opened in Bangkok, Thailand and

in Yangon in the Republic of Myanmar "We expect a lot of development in the security sector in Thailand, mainly as a result of increasing wealth and improvements being made to the infrastructure. Our extended service offering here will allow us to better meet emerging customer needs.” “The second new site, a branch office of Gunnebo Singapore, is located in Yangon, Myanmar and will give Gunnebo direct access to the local market. By expanding our presence in Southeast Asia, Gunnebo continues to take advantage of the growing opportunities in the region.”

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8 October 2013, page 6

Third Quarter 2013

  • Order intake increased to MSEK 1,248 (1,084),
  • rganically it increased by 10% . Acquired units

contributed MSEK 60.

  • Net sales increased to MSEK 1,314 (1,280),
  • rganically they increased by 3% . Acquired units

contributed MSEK 36.

  • Operating profit increased to MSEK 61 (17) and the
  • perating margin to 4.6% (1.3% ). Acquired units

had a positive effect on operating profit of MSEK 7.

  • Operating profit excluding expenses of a non-

recurring nature of MSEK -32 (-46) increased the

  • perating profit to MSEK 93 (63) and the operating

margin to 7.1% (4.9% ).

  • Profit after tax for the period totalled MSEK 32 (1).
  • Earnings per share were SEK 0.39 (-0.02).
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SLIDE 7

8 October 2013, page 7

January-September 2013

  • Order intake increased to MSEK 4,201 (3,933),
  • rganically it increased by 4% . Acquired units

contributed MSEK 262.

  • Net sales increased to MSEK 3,794 (3,719),
  • rganically they increased by 1% . Acquired units

contributed MSEK 208.

  • Operating profit increased to MSEK 119 (69) and

the operating margin to 3.1% (1.9% ). Acquired units had a positive effect on operating profit of MSEK 32.

  • Operating profit excluding expenses of a non-

recurring nature of MSEK -54 (-58) increased the

  • perating profit to MSEK 173 (127) and the
  • perating margin to 4.5% (3.4% ).
  • Profit after tax for the period totalled MSEK 54 (22).
  • Earnings per share were SEK 0.69 (0.26).
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8 October 2013, page 8

Market Developm ent

  • Good development of US Hamilton Safe
  • Good development in India & Australia
  • Weaker development in Europe, Africa & Middle East,

especially within the banking sector

Profit analysis

Implemented cost reductions could not fully offset the weaker sales development in Europe. Market initiatives to launch concept solutions in cash handling have continued and have incurred some initial costs.

% of Group sales: 46%

Business Area Bank Security & Cash Handling

Full year MSEK 2013 2012 2013 2012 2012 Order intake 625 513 1,954 1,718 2,374 Net sales 617 602 1,739 1,652 2,386 Operating profit/loss excl. non-recurring items 45 46 79 92 158 Operating margin excl. non-recurring items, % 7.3 7.6 4.5 5.6 6.6 Non-recurring items

  • 9
  • 4
  • 21
  • 4
  • 13

Operating profit/loss 36 42 58 88 145 July-Sept Jan-Sept

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8 October 2013, page 9

Market Developm ent

  • Strong order intake from global manufacturers
  • f ATMs, especially in India
  • Overall stable development of order intake
  • Good development from newly established sales

company in Malaysia

Profit analysis

The increase in profit during the period can be explained by an increased focus on cost efficiency in the production and distribution of standard products.

% of Group sales: 15%

Business Area Secure Storage

Full year MSEK 2013 2012 2013 2012 2012 Order intake 164 182 574 589 801 Net sales 189 196 577 581 781 Operating profit/loss excl. non-recurring items 9 4 30 17 30 Operating margin excl. non-recurring items, % 4.8 2.0 5.2 2.9 3.8 Non-recurring items

  • 1
  • 3
  • 11

Operating profit/loss 8 4 27 17 19 July-Sept Jan-Sept

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8 October 2013, page 10

Market Developm ent

  • Stable development of order intake
  • Good development in Brazil supporting weaker

development in Europe

  • Further improved customer service in Australia,

US and Netherlands due to establishment of service-centers

Profit analysis

The operating profit and operating margin, adjusted for one-

  • ff items, have improved thanks to increased efficiency in our

service deliveries, partly due to a change in the distribution between outsourced and in-house services on a number of markets.

% of Group sales: 22%

Business Area Global Services

Full year MSEK 2013 2012 2013 2012 2012 Order intake 201 192 903 914 1,138 Net sales 276 271 818 841 1,143 Operating profit/loss excl. non-recurring items 35 26 83 73 110 Operating margin excl. non-recurring items, % 12.7 9.6 10.1 8.7 9.6 Non-recurring items

  • 19
  • 6
  • 24
  • 6
  • 9

Operating profit/loss 16 20 59 67 101 Jan-Sept July-Sept

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8 October 2013, page 11

Market Developm ent

  • Good development of order intake
  • Good growth in region Asia-Pacific and in the

Middle East

  • Weaker development in Europe

Profit analysis

The Business Area’s margins have improved thanks to the relocation of assembly to China. Last year’s results included expenses of a non-recurring nature for compensation to a commercial agent following arbitration.

% of Group sales: 12%

Business Area Entrance Control

Full year MSEK 2013 2012 2013 2012 2012 Order intake 202 163 546 502 674 Net sales 164 158 454 466 663 Operating profit/loss excl. non-recurring items 10 9 17 11 47 Operating margin excl. non-recurring items, % 6.1 5.7 3.7 2.4 7.1 Non-recurring items

  • 1
  • 27
  • 3
  • 28
  • 33

Operating profit/loss 9

  • 18

14

  • 17

14 Jan-Sept July-Sept

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8 October 2013, page 12

SafePay

  • SafePay also showed an improvement in profit

during the third quarter.

  • A seasonally strong sales quarter coupled with a

continued focus on costs and product quality in close collaboration with our customers.

Gatew ay

  • Increased demand for electronic article surveillance

and consumables such as tags and labels resulted in a good quarter in terms of sales.

  • An improved gross margin and focus on cost savings

have helped reverse the profit trend.

% of Group sales: 5%

Developing Businesses

Full year MSEK 2013 2012 2013 2012 2012 Order intake 56 34 224 210 263 Net sales 68 53 206 179 263 Operating profit/loss excl. non-recurring items 2

  • 13
  • 9
  • 38
  • 42

Operating margin excl. non-recurring items, % 2.9

  • 24.5
  • 4.4
  • 21.2
  • 16.0

Non-recurring items

  • 1
  • 1
  • 1

Operating profit/loss 1

  • 13
  • 10
  • 38
  • 43

July-Sept Jan-Sept

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8 October 2013, page 13

Gunnebo Global Market Trends January-September 2013

  • Asia-Pacific
  • Americas

Europe, Middle East & Africa

  • North Europe
  • South Europe
  • France
  • Africa & Middle East
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8 October 2013, page 14

FI NANCI ALS

Christian Johansson CFO

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8 October 2013, page 15

Full year MSEK 2013 2012 2013 2012 2012 Net sales 1 314 1 280 3 794 3 719 5 236 Cost of goods sold

  • 908
  • 900
  • 2 653
  • 2 614
  • 3 666

Gross profit 406 380 1 141 1 105 1 570 Other operating costs, net

  • 345
  • 363
  • 1 022
  • 1 036
  • 1 391

Operating profit/loss 61 17 119 69 179 Net financial items

  • 8
  • 6
  • 24
  • 14
  • 66

Profit/loss after financial items 53 11 95 55 113 Taxes

  • 21
  • 10
  • 41
  • 33
  • 89

Profit/loss for the period 32 1 54 22 24 Gross margin, % 30,9 29,7 30,1 29,7 30,0 Operating margin, % 4,6 1,3 3,1 1,9 3,4 Operating profit excl. non-recurring items, MSEK 93 63 173 127 266 Operating profit excl. non-recurring items, % 7,1 4,9 4,5 3,4 5,1 Earnings per share, SEK 0,39

  • 0,02

0,69 0,26 0,26

Summary Group income statement

July-Sept Jan-Sept

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8 October 2013, page 16

Good News in Q3

  • Improved margins related to increased sales outside Europe
  • Some price and mix effects inspite of soft markets
  • Developing Business (SafePay & EAS)
  • Sales
  • Gross margin improvements
  • Overhead cost reduction
  • Efficiency increase in Global Services
  • Cost reductions in Europe
  • Operations
  • Direct material
  • Assembly in China
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8 October 2013, page 17

Operating Cash Flow

4 Quarters Aggregated MSEK

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8 October 2013, page 18

Group Liquid Funds and Financial Position

  • The Group’s liquid funds at the end of the

period amounted to MSEK 317 (350* )

  • Equity totalled MSEK 1,416 (1,533* ),

giving an equity ratio of 33% (36* ).

  • Net debt amounted to MSEK 1,179 (1,026* ).

Excluding pension commitments it amounted to MSEK 817 (684* ).

  • Debt/ equity ratio amounted to 0.8 (0.7* ).

* at the beginning of the year

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8 October 2013, page 19

Gunnebo’s Key Priorities 2013

  • Grow th
  • Gross Margin I m provem ents
  • Fixed Cost Savings in Europe
  • SafePay
  • Ham ilton Safe
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8 October 2013, page 20

Financial Calendar

Year-end release 2013 January 31, 2014 Gunnebo CMD 2014 March 5, 2014 AGM 2014 April 10, 2014 Interim report January-March 2014 April 29, 2014

Financial Calendar

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8 October 2013, page 21

Q&A

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8 October 2013, page 22

THE LEADI NG GLOBAL PROVI DER OF A SAFER FUTURE