Q1 Report 2012 Johan Molin President & CEO 1 Financial - - PowerPoint PPT Presentation

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Q1 Report 2012 Johan Molin President & CEO 1 Financial - - PowerPoint PPT Presentation

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Q1 Report 2012 Johan Molin President & CEO 1 Financial highlights Q1 2012 Steady grow th w ith strong profit im provem ent Continued strong growth in Global tech Good development in Europe and North America Slower emerging

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1

Q1 Report 2012

Johan Molin President & CEO

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SLIDE 2

Financial highlights Q1 2012

  • Steady grow th w ith strong profit im provem ent

– Continued strong growth in Global tech – Good development in Europe and North America – Slower emerging markets and declining Australia – Footprint program gives good savings

  • Sales

1 0 ,8 3 9 MSEK + 2 5 %

+ 3% organic, + 19% acquired growth, 3% currency

  • EBI T

1 ,6 5 5 MSEK + 2 0 % Currency effect 19 MSEK

  • EPS

3 .1 0 SEK + 2 3 % Underlying tax rate 23%

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SLIDE 3

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Market highlights

Branding

– Group appearance on all trade shows – Demonstration fleet for architects – One company exposure on internet

  • Investment in Emerging markets

– Build up in India, ME, Africa and South America – Sales units created in Russia, Croatia, Indonesia, Ghana, Uganda, Mozambique, Liberia, Qatar

  • Innovation pays off

– More than 20% of all sales from products less than 3 years old

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SLIDE 4
  • Countries with high total GDP

and highly populated cities

  • 1 3 new ASSA ABLOY Solution

centres

  • 3 new legal entities

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Annual GDP growth, 2012-2016 (prognos), percent

Nigeria 6,2 Ghana Uganda Kenya South Africa Angola Ethiopia Tanzania Ivory coast Congo-Kinshasa Mozambique Zambia 6,1 3,7 7,3 6,2 7,0 6,2 6,5 6,7 7,5 7,8 6,4

Emerging markets expansion

Example; Africa

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SLIDE 5

EMEA High impact Products

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EMEA new products

ASSA ABLOY Door Closers Code Handle DDL CLI Q SMARTAI R Aperio

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SLIDE 6

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Group sales in local currencies Jan-Mar 2012

2 + 4 2 8 + 7 5 1 + 3 9 1 3 + 1 7 5 + 4 1 + 5

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

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SLIDE 7

80 85 90 95 100 105 110 2009 2010 2011 2012 I ndex 1 0 0 = 3 1 / 1 2 2 0 0 8

I ndex 2 0 0 9 -2 0 1 2

ASSA ABLOY, excl. Cardo

Organic growth index

Recovery from recession

Group -2 %

7

* ) Entrance systems division including new acquired companies -12% Division I ndex EMEA

  • 7%

Am ericas

  • 16%

Asia Pacific + 31% Global Tech + 10% ESD * ) + 3%

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SLIDE 8
  • 18
  • 16
  • 14
  • 12
  • 10
  • 8
  • 6
  • 4
  • 2

2 4 6 8 10 12 14 16 18 20

24 000 26 000 28 000 30 000 32 000 34 000 36 000 38 000 40 000 42 000 44 000 46 000 2005 2006 2007 2008 2009 2010 2011 2012

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales growth, currency adjusted

8

2 0 1 2 Q1 + 2 2 % Organic + 3 % Acquired + 1 9 %

Sales MSEK Growth, %

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SLIDE 9

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 6 400 6 600 6 800 7 000 700 800 900 1 000 1 100 1 200 1 300 1 400 1 500 1 600 1 700 1 800 1 900 2005 2006 2007 2008 2009 2010 2011 2012 Quarter Rolling 12-months

Quarter 12-months

Run rate 6 ,9 0 2 MSEK ( 6 ,1 2 8 ) , + 1 3 %

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* ) Excluding restructuring costs.

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SLIDE 10

12,0 13,0 14,0 15,0 16,0 17,0 2005 2006 2007 2008 2009 2010 2011 2012

Quarter Rolling 12-months

Q2 -Q4 2 0 1 2 Dilution Group

  • 0 .2 %

Operating margin (EBIT)* , %

Run rate 2 0 1 2 1 5 .7 % ( 1 6 .5 )

Long term target range ( average)

10

EBIT Margin * ) Excluding restructuring costs.

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SLIDE 11

Manufacturing footprint

  • Status manufacturing footprint programs 2006-2011:

– 45 factories closed to date, 23 to go – 50 factories converted to assembly, 25 to go – 25 offices closed, 4 to go

  • Personnel reduction QTD 346p and total 6,243p
  • 1,292 in further planned reductions

 1,569 MSEK of the provision remains for all programs

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SLIDE 12

Margin highlights Q1 2012

EBI T m argin 1 5 .3 % ( 1 5 .8 ) , -0 .5 % + Volume increase 1.5% , price 1.5% + Margin expansion 0.5% + Manufacturing footprint & efficiency improvements + Positive mix with growth in mature markets

  • Dilution from acquisitions by -1.0%

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Acquisitions 2012

  • Fully active
  • 6 acquisitions done so far in 2 0 1 2
  • Annualized sales 2 ,2 0 0 MSEK, + 5 ,3 %
  • Major acquisitions Jan-Apr 2 0 1 2 :

 Albany, US  Dynaco, BE  Securistyle, UK  Traka, UK  Frameworks, USA

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SLIDE 14

Traka plc

  • Strong technology company
  • Intelligent key cabinets
  • Advanced locker systems
  • Fleet managment solutions
  • Sales of 140 MSEK, 40% export
  • Accretive to EPS from start

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SLIDE 15

Frameworks Manufacturing Inc

  • Entrance to interior aluminum door,

frame and window wall market

  • Adds glaziers as additional distribution

channel

  • Complementary to our door business

with good margins

  • Total sales 110 MSEK
  • Accretive to EPS from start

15

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SLIDE 16

Division - EMEA

  • Market improved but hesitant
  • Growth in Scandinavia, Finland, Benelux, UK,

Israel and Africa

  • France, Germany and Eastern Europe are stable
  • Southern Europe in continued decline
  • Good leverage from volume increase
  • Operating margin (EBIT)

+ Volume 4% = Material cost + Footprint savings

  • Dilution by 0.8%

SALES share of Group total %

31

16 13 14 15 16 17 18 19 2007 2008 2009 2010 2011 2012 EBI T %

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SLIDE 17

Division - Americas

  • Stable sales development
  • Good growth of high security, elmech and residential
  • Positive sales of mechanical locks and security doors
  • Negative sales in Canada, Mexico and Brazil
  • Improved margin from efficiency gains
  • Operating margin (EBIT)

+ Volume 3% = Material cost + Efficiency improvement

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18 18 19 20 21 22 2007 2008 2009 2010 2011 2012 EBI T %

SALES share of Group total %

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SLIDE 18

Division - Asia Pacific

  • Strong growth in Korea and South East Asia

including India

  • Weak growth in China
  • Decline in Australia and New Zeeland
  • Negative mix and Chinese cost pressure
  • Operating margin (EBIT)

= Volume 3% = Raw material

  • Mix & cost pressure

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20 5 7 9 11 13 15 17 2007 2008 2009 2010 2011 2012 EBI T %

SALES share of Group total %

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SLIDE 19

Division - Global Technologies

  • HID

– Good growth of Access control and secure issuance – Strong sales of Identification Technology – Large project orders dilutes

  • Hospitality

– Good growth in all market regions – Several gains of important key accounts

  • Operating margin (EBIT)

+ Volume 8% (13) + Strong leverage from core business growth

  • Dilution from large project orders

14

22 13 14 15 16 17 18 19 2007 2008 2009 2010 2011 2012 EBI T %

SALES share of Group total %

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SLIDE 20

Division - Entrance Systems

  • Good growth of Besam, Crawford and FlexiForce
  • Service sales in steady growth
  • Ditec declining due to southern Europe
  • Albany and Dynaco consolidated in the quarter
  • Sales + 130% and EBIT + 94%
  • Operating margin (EBIT)

+ Volume 3%

  • Dilution from acquisitions -2.7%

+ Leverage from growth + 0.3%

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24 12 13 14 15 16 17 18 19 2007 2008 2009 2010 2011 2012 EBI T %

SALES share of Group total %

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SLIDE 21

26

Q1 Report 2012

Carolina Dybeck Happe CFO

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SLIDE 22

Financial highlights Q1 2012

MSEK 2011 2012 Change 2010 2011 Change

Sales 8,699 10,839 +25% 36,823 41,786 +13% Whereof Organic growth +3% +4% Acquired growth +19% +17% FX-differences +149 +3%

  • 2,309
  • 8%

Operating income (EBIT) *) 1,377 1,655 +20% 6,046 6,624 +10% EBIT-margin (%) 15.8 15.3 16.4 15.9 Operating cash flow 448 483 +8% 6,285 6,080

  • 3%

EPS (SEK) **) 2.52 3.10 +23% 10.89 12.30 +13%

1st Quarter Twelve months

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* ) Excluding restructuring items of 1,420 MSEK for Q4 and full year 2011 * * ) Excluding one-off items of 1,447 for Q4 and 1,016 MSEK for the full year 2011

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SLIDE 23

Bridge Analysis – Jan-Mar 2012

MSEK

2011 Jan-Mar Organic Currency Acq/ Div 2012 Jan-Mar

3% 3% 19% 25%

Revenues

8,699 294 149 1,696 10,839

EBIT

1,377 92 19 167 1,655

%

15.8% 31.1% 12.9% 9.9% 15.3%

Dilution / Accretion

0.5% 0.0%

  • 1.0%

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SLIDE 24

P&L – Components as % of sales

  • Direct material

32.9% 33.2% 32.7%

  • Conversion costs

26.2% 25.4% 27.6%

  • Gross Margin

40.9% 41.4% 39.7%

  • S, G & A

25.1% 25.1% 24.4%

  • EBIT

15.8% 16.3% 15.3% 2 0 1 2

Q1 excluding acquisitions

2 0 1 1

Q1

2 0 1 2

Q1

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SLIDE 25

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 2 500 3 000 2005 2006 2007 2008 2009 2010 2011 2012

Quarter Cash Rolling 12-months EBT Rolling 12 months

Grow th

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Recession Grow th

Quarter 12 months

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SLIDE 26

Gearing % and net debt MSEK

20 40 60 80 100 120 5 000 10 000 15 000 20 000 25 000 30 000 2005 2006 2007 2008 2009 2010 2011 2012 Net debt Gearing

Debt/ Equity 6 4 ( 1 0 3 ) Net debt/ EBI TDA 2 .0 ( 3 .0 )

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Net Debt Gearing

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SLIDE 27

32

Q1 Report 2012

Johan Molin President & CEO

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Conclusions Q1 2012

  • Strong total growth by 25% with 3% organic
  • Good development in mature markets

– Many new products and projects wins

  • Slower emerging markets
  • Good evolution in acquired companies
  • Footprint program gives good savings
  • Strong profit improvement

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SLIDE 29

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Q&A