Q1 Report 2011 Johan Molin 1 Financial highlights Q1 2011 Good - - PDF document

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Q1 Report 2011 Johan Molin 1 Financial highlights Q1 2011 Good - - PDF document

Jun 27, 2023 115 likes •437 views

President & CEO Q1 Report 2011 Johan Molin 1 Financial highlights Q1 2011 Good start of the year Strong growth in Asia and North & South America Stable evolution in Europe Slight decline in the Pacific Continued

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1

Q1 Report 2011

Johan Molin President & CEO

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Financial highlights Q1 2011

Good start of the year

– Strong growth in Asia and North & South America – Stable evolution in Europe – Slight decline in the Pacific – Continued margin expansion – Sale of Cardo Flow and acquisition of FlexiForce

Sales 8 ,6 9 9 MSEK + 4 %

+ 6% organic, + 7% acquired growth, -9% currency

EBI T 1 ,3 7 7 MSEK + 6 %

Currency effect -113 MSEK

EPS 2 .5 3 SEK + 7 %

Tax rate reduced to 22%

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Market highlights

Rapid growth for digital door locks in China Safezone automatic door closer meets strong customer demand Launch of i-Class SE, platform independant Secure Identity Object (SIO) Good penetration of Aperio within system integration Introduction of Online Card Services, Identity on Demand (IOD)

Digital Door Lock Safezone HDP 5 0 0 0 Card printer Aperio

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Identity on Demand (IOD)

A scalable, secure, automated, on-line and high-quality system for provisioning a personalized smart card Dedicated setup in Europe and USA

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Group sales in local currencies Jan-Mar 2011

2 + 1 5 3 2 + 1 5 4 6 + 1 0 1 3 + 3 4 5

  • 1

2

  • 2

Share of Group sales 2 0 1 1 YTD, % Year-to-date vs previous year, %

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Organic growth index

Recovery from recession

Group

  • 5 %

EMEA

  • 1 1 %

Am ericas

  • 1 5 %

APAC + 3 1 % GT + 7 % Entrance

  • 3 %
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7

  • 16
  • 14
  • 12
  • 10
  • 8
  • 6
  • 4
  • 2

2 4 6 8 10 12 14 16

22 000 23 000 24 000 25 000 26 000 27 000 28 000 29 000 30 000 31 000 32 000 33 000 34 000 35 000 36 000 2004 2005 2006 2007 2008 2009 2010 2011 Grow th % Sales, MSEK

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales growth Q1 2011 - Currency adjusted

2 0 1 1 Q1 + 1 3 % Organic + 6 % Acquired + 7 % Total sales 5 %

  • ver 2 0 0 8 peak
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Operating income (EBIT), MSEK

3 600 3 800 4 000 4 200 4 400 4 600 4 800 5 000 5 200 5 400 5 600 5 800 6 000 6 200 600 700 800 900 1 000 1 100 1 200 1 300 1 400 1 500 1 600 1 700 2005 2006 2007 2008 2009 2010 2011

Quarter Rolling 12-months

Quarter 12-months

Run rate 6 ,1 2 6 MSEK ( 5 ,3 8 0 ) , + 1 4 %

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Operating margin (EBIT), %

12,0 13,0 14,0 15,0 16,0 17,0 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1 EBI T %

Quarter Rolling 12-months

Run rate 2 0 1 1 1 6 .5 % ( 1 5 .6 )

Long term target range ( average)

2011 Group Dilution Addition of Cardo -0.6% Other acquisitions -0.4%

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Manufacturing footprint

Conversion to assembly or closures in high cost countries

– 40 factories closed to date, 11 to go – 42 factories converted to assembly, 11 to go – 21 offices closed, 4 to go

Consolidation of core production to China and Eastern Europe Personnel reduction 5,483p, + 13% to plan 933 more to go 873 MSEK remains at the end of the first quarter for all three programs

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Margin highlights Q1 2011

EBI T m argin 1 5 .8 % ( 1 5 .5 ) + Volume increase 4% , price 2% + Manufacturing footprint & efficiency improvements

  • Increased gross margin despite material cost increases
  • Slightly lower S, G & A
  • Dilution from acquisitions by -0.5% -units
  • Negative currency effect –0.1% -units
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Acquisitions Q1 2011

  • Fully active on acquisitions

– Good pipeline targeting 5% growth

  • 7 acquisitions com pleted

Jan-Apr 2 0 1 1 Annualized > 5 ,7 5 0 MSEK, + 1 6 % Major acquisitions Jan-Apr:

Cardo Swesafe Lasercard FlexiForce

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FlexiForce

European leader in industrial door hardware

Manufacturer of hardware for industrial doors Sales 600 MSEK and 300 employees Sales indirect to door producers and installers Strongly complementary on products with Cardo and Ditec LCC manufacturing in Poland and China Accretive to EPS from start

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Entrance systems division

Organizational chart, sales and profit 2010

14

ASSA ABLOY Entrance System s

Sales 9 .4 BSEK, EBI T 1 2 .7 %

Direct sales Distribution sales

3 8 % of Agta Record, Sales BSEK 2 .0

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Division - EMEA

  • Slow development of EMEA due to austerity programs
  • Continued growth in Finland, Sweden, Germany and

Eastern Europe

  • Unrest in North Africa affects exports from

Italy and Spain

  • Excellent efficiency improvements and price management
  • Operating margin (EBIT)

+ Volume 0% + Strong Elmech sales + Excellent efficiency gains

  • Raw materials increasing

SALES share of Group total %

35

EBIT %

13 14 15 16 17 18 19

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Division - Americas

  • All business units are growing
  • Particularly good in South America, Canada and

electromechanical locks

  • Solid development of doors, high security locks and

residential

  • EBIT reached record level despite strong investments

in R&D

  • Operating margin (EBIT)

+ Volume + 7% + Price management and efficiency with reinforced investment in R&D

  • Raw materials increasing

SALES share of Group total %

25

EBIT %

17 18 19 20 21

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Division - Asia Pacific

  • All of Asia in strong growth
  • Digital door locks and China are doing particularly well
  • Decline in NZ and weak Australia mainly due to

natural disasters

  • Good margin expansion for Q1
  • Operating margin (EBIT)

+ Volume + 10% + Efficiency improvements + Currency gain of + 0.6%

  • Raw materials and salaries increasing

SALES share of Group total %

13

EBIT %

6 8 10 12 14 16

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Division - Global Technologies

  • Strong evolution in HID

– Solid development within physical access – Strong growth of IDS – ActivIdentity and LaserCard added

  • Hospitality

– Renovation market in very strong demand – New build still in decline – RFID lock upgrades and energy management are developing particularly well

  • Operating margin (EBIT)

+ Volume + 19%

  • Mix towards IDS affects leverage
  • Dilution from Active Identity &

Lasercard by -2.3%

  • Dilution from currency by -0.9%

SALES share of Group total %

15

EBIT %

12 13 14 15 16 17 18 19

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Division - Entrance Systems

  • Growth is back with strong demand from retail
  • Continued strong evolution in service
  • Strong margin improvement in Ditec
  • Integration of Cardo is progressing well
  • Dilution from Cardo by -0,4%
  • Operating margin (EBIT)
  • + Volume + 4%

+ Efficiency gains & Ditec improvement

  • Dilution from Cardo

SALES share of Group total %

13

EBIT %

12 14 16 18

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Q1 Report 2011

Tomas Eliasson CFO

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Financial highlights Q1 2011

MSEK 2010 2011 Change 2009 2010 Change

Sales 8,345 8,699 +4% 34,963 36,823 +5% Whereof Organic growth +6% +3% Acquired growth +7% +8% FX-differences

  • 666
  • 9%
  • 1,626
  • 6%

Operating income (EBIT) 1,295 1,377 +6% 5,413* 6,046 +12% EBIT-margin (%) 15.5 15.8 15.5* 16.4 Operating cash flow 870 448

  • 49%

6,843 6,285

  • 8%

EPS (SEK)* 2.36 2.53 +7% 9.22 10.89 +18%

*Excluding restructuring and one off charges of 1,039 MSEK 1st Quarter Twelve months

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Bridge Analysis – Jan-Mar 2011

MSEK

2010 Jan-Mar Acq/ Div Currency Organic 2011 Jan-Mar

7%

  • 9%

6% 4%

Revenues

8,345 551

  • 666

469 8,699

EBIT

1,295 49

  • 113

146 1,377

%

15.5% 8.9% 17.0% 31.1% 15.8%

Dilution / Accretion

  • 50 bp
  • 10 bp

90 bp

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P&L – Components as % of sales

Direct material 32.3% 32.9% Conversion costs 27.4% 26.2% Gross Margin 40.3% 40.9% S, G & A 24.8% 25.1% EBIT 15.5% 15.8% 2 0 1 1

Q1

2 0 1 0

Q1 * ) * ) Currency effect -0.4%

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Operating cash flow, MSEK

3 000 3 500 4 000 4 500 5 000 5 500 6 000 6 500 7 000 7 500 500 1 000 1 500 2 000 12-months Quarter

Quarter Cash Rolling 12-months EBT Rolling 12 months

Recession starts Back to grow th

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Gearing % and net debt MSEK

20 40 60 80 100 120 5 000 10 000 15 000 20 000 25 000 30 000 Gearing Net Debt

Net debt Gearing

Debt/ Equity 5 1 ( 5 7 ) Debt/ Equity 1 0 3 ( 5 7 ) Net debt 2 1 .6 BSEK

Sale of Cardo Flow and cash flow 2 0 1 1 w ill reduce debt level

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Net interest rate, %

3,00 3,50 4,00 4,50 5,00 5,50 6,00

Interest rate

Additional debt in Q1 is short term = reduced interest rate

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Q1 Report 2011

Johan Molin President & CEO

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Conclusions Q1 2011

  • 13% total growth whereof 6% organic growth
  • Emerging markets and in particular Asia in strong

growth

  • Margin expansion in all parts
  • Reduced tax rate by 2% to 22%
  • Exciting acquired growth ahead and sale of Cardo Flow
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Outlook

Long Term

  • Organic sales growth is expected to continue at a

good rate

  • The operating margin (EBIT) and operating cash flow

are expected to develop well

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Q&A