Q1 Report 2015 Johan Molin President and CEO Financial highlights - - PowerPoint PPT Presentation

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Q1 Report 2015 Johan Molin President and CEO Financial highlights - - PowerPoint PPT Presentation

Jun 08, 2023 340 likes •634 views

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q1 Report 2015 Johan Molin President and CEO Financial highlights Q1 2015 Good start of the year

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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

Q1 Report 2015

Johan Molin President and CEO

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SLIDE 2

Financial highlights Q1 2015

  • Good start of the year

– Strong growth in Americas, Global Tech and ESD – Good growth in EMEA – Weak in APAC due to Chinese market and credit policy

  • Sales

1 5 ,2 5 2 MSEK + 2 4 %

5% organic, 3% acquired growth, 16% currency

  • EBI T

2 ,3 2 9 MSEK + 2 5 % Currency effect 249 MSEK

  • EPS

4 .3 6 SEK + 2 8 % Underlying tax rate 26%

2

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SLIDE 3
  • Record awards at ISC West

– Aperio R100, Aperio M100 & Ecopower power supply – Electrified latch & GL1 Electrified Gate Lock – HID Mobile Access & Active ID tap authentication

  • Good development in consumer business

– Yale drives growth in EMEA, Americas and APAC – Combination of digital and mechanical products

  • Strong growth in Latin America (+ 43% )

– Regional warehouses and recent acquisitions

  • Pedestrian Door Automatics

– New range of swing door operators – Good growth in emerging markets

3

Market highlights

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SLIDE 4

4

Group sales in local currencies Jan-Mar 2015

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

Share of Group sales 2 0 1 5 YTD, % Year-to-date vs previous year, %

4 0 + 3

Em erging m arkets 2 3 % ( 2 2 ) of sales

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SLIDE 5
  • 15
  • 12
  • 9
  • 6
  • 3

3 6 9 12 15 18 21 24 27 31 000 34 000 37 000 40 000 43 000 46 000 49 000 52 000 55 000 58 000 61 000 64 000 67 000 2008 2009 2010 2011 2012 2013 2014 2015 Growth % Sales MSEK

Orga nic Gr owth Acqu ir ed Gr owth Sales in Fixed Cu rr encies

Sales growth, currency adjusted

5

2 0 1 5 Q1 + 8 % Organic + 5 % Acquired + 3 %

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SLIDE 6

Operating income (EBIT), MSEK

4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 8 500 9 000 9 500 10 000 900 1 100 1 300 1 500 1 700 1 900 2 100 2 300 2 500 2 700 2008 2009 2010 2011 2012 2013 2014 2015 12-m onths Quarter

Quarter Rolling 12-mont hs

Run rate 9 ,7 2 8 MSEK ( 8 ,1 1 8 ) + 2 0 %

6

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SLIDE 7

12,0 13,0 14,0 15,0 16,0 17,0 2008 2009 2010 2011 2012 2013 2014 2015 EBI T Margin

Quarter Rolling 12- m onths

2 0 1 5 Dilution Q1

  • 0 .1 %

2 0 1 5 -0 .1 %

Operating margin (EBIT), %

Run rate 2 0 1 5 1 6 .3 % ( 1 6 .3 )

7

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SLIDE 8

Manufacturing footprint

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  • Status manufacturing footprint programs 2006-2013:

– 69 factories closed to date, 11 to go – 84 factories converted to assembly, 5 to go – 38 offices closed, 9 to go

  • Personal reduction QTD 206p and total 9,620p
  • 364p in further planned reductions

 845 MSEK of the provision remains for all programs

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SLIDE 9

Margin highlights Q1 2015

EBI T m argin 1 5 .3 % ( 1 5 .1 ) + 0 .2 % + Volume increase 4% , price 1% + Margin increase + 0.2% + Organic growth + Manufacturing footprint

  • Currency -0.3%
  • Acquisitions -0.1%

Good leverage from grow th

9

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SLIDE 10

Acquisitions 2015

  • Fully active pipeline
  • 4 acquisitions done in 2015
  • Annualized sales 750 MSEK
  • Added sales 1.5%

1 0

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SLIDE 11

Quantum Secure, USA

1 1

  • Bookings of 400 MSEK with 175

employees

  • Provider of advanced identity

management systems

  • Brings compliance in highly-

regulated industries

  • Management of identities across

multiple sites

  • Neutral to EPS
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SLIDE 12

MSL, Switzerland

1 2

  • Turnover of 180 MSEK with 106

employees

  • Leading supplier of Swiss mortice

locks

  • Complets Swiss total door opening

solutions

  • Adds important market coverage
  • Accretive to EPS
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SLIDE 13

Teamware, Malaysia

1 3

  • Turnover of 240 MSEK with 120

employees

  • Creates firm market leadership in

fast growing Malaysia

  • Complimentary channels and

products

  • Allows specification
  • Accretive to EPS
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SLIDE 14

25%

SALES share of Group total %

Division - EMEA

  • Strong growth in Scandinavia, Finland, Eastern Europe

and Africa

  • Good growth in UK and Iberia
  • Flat in Germany and Israel
  • Negative in Benelux, France and Italy
  • Strategic move in Switzerland
  • Operating margin (EBIT)

+ Organic 3% + Leverage from savings + 0.5%

  • Dilution & Currency -0.7%

1 4 13 14 15 16 17 18 19 2010 2011 2012 2013 2014 2015 EBI T %

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SLIDE 15

Division - Americas

  • Strong growth in AHW, Doors, El-mech, Residential,

Mexico and South America

  • Stable trend in High security and Canada
  • Important moves in South America
  • Strong demand from Home Automation
  • Operating margin (EBIT)

+ Organic 8% + Good leverage from efficiency

  • Currency & Dilution -0.5%

1 6

20

18 19 20 21 22 23 2010 2011 2012 2013 2014 2015 EBI T %

24%

SALES share of Group total %

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SLIDE 16

Division - Asia Pacific

  • Strong growth in Australia, South Asia and North Asia
  • Good growth in New Zealand
  • China

– Strong decline due to weak market and credit policy – Government incentives for construction – Many companies for sale

  • Operating margin (EBIT)
  • Organic -3%

+ Personnel reduction in China -8% + Positive sales mix

  • Currency & Dilution -0.3%

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1 8 8 10 12 14 16 18 2010 2011 2012 2013 2014 2015 EBI T %

11%

SALES share of Group total %

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Division - Global Technologies

  • HID

– Strong growth in Gov-Id, IDT (inlays) and Project sales – Good growth in IAM (Identity and access management) – Austin move completed

  • Hospitality

– Strong growth – Strong profit

  • Operating margin (EBIT)

+ Organic 12% + Leverage from growth

  • Currency & Dilution -0.3%

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2 0 14 15 16 17 18 19 20 21 2010 2011 2012 2013 2014 2015 EBI T %

14%

SALES share of Group total %

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SLIDE 18

Division - Entrance Systems

  • Strong growth in Door Automatics, High Speed Doors,

Flexiforce, Amarr and 4Front

  • Flat in Industrial EU and decline in Residential EU and

Ditec

  • Europe is tough but improving with growing service
  • Operating margin (EBIT)

+ Organic 5% + Efficiency improvement

  • Negative mix (US growing)
  • Currency -0.4%

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2 2 11 12 13 14 15 16 17 18 2010 2011 2012 2013 2014 2015 EBI T %

26%

SALES share of Group total %

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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

Q1 Report 2015

Carolina Dybeck Happe CFO

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

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Financial highlights Q1 2015

MSEK 2014 2015 Change 2013 2014 Change

Sales 12,305 15,252 +24% 48,481 56,843 +17% Whereof Organic growth +5% +3% Acquired growth +3% +9% FX-differences +1,892 +16% +2,138 +5% Operating income (EBIT) 1,857 2,329 +25% 7,923 9,257 +17% EBIT-margin (%) ) 15.1 15.3 16.3 16.3 Operating cash flow 557 520

  • 7%

6,803 8,238 +21% EPS (SEK) 3.41 4.36 +28% 14.84 17.38 +17%

1st Quarter Twelve months

2 5

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SLIDE 21

Bridge Analysis – Jan-Mar 2015

MSEK

2014 Jan-Mar Organic Currency Acq/ Div 2015 Jan-Mar

5% 16% 3% 24%

Revenues

12,305 680 1,892 376 15,252

EBIT

1,857 186 249 38 2,329

%

15.1% 27.3% 13.1% 10.1% 15.3%

Dilution / Accretion

0.6%

  • 0.3%
  • 0.1%

2 6

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P&L Components as % of sales Jan – Mar 2015

Direct material 34.6% 35.5% 35.6% Conversion costs 26.5% 25.4% 25.3% Gross Margin 38.9% 39.1% 39.1% S, G & A 23.8% 23.7% 23.8% EBIT 15.1% 15.4% 15.3% 2 0 1 5

YTD excluding acquisitions

2 0 1 4

Q1

2 0 1 5

Q1

2 7

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Operating cash flow, MSEK

4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 8 500 9 000 9 500 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 2008 2009 2010 2011 2012 2013 2014 2015 1 2 -m onths Quarter

Quarter Cash Rolling 12-months EBT Rolling 12 months

2 8

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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 2008 2009 2010 2011 2012 2013 2014 2015 Gearing Net Debt

Net debt Gearing

Debt/ Equity 6 4 ( 7 2 ) Net debt/ EBI TDA 2 .3 ( 2 .3 )

29

* ) 2008-2011 Not restated for changed pension accounting principles.

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Earnings per share, SEK

8,00 10,00 12,00 14,00 16,00 18,00 20,00 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00 5,50 2008 2009 2010 2011 2012 2013 2014 2015 1 2 -m onths Quarter SEK

Quarter Rolling 12- m onths

3 0

Excluding restructuring costs of 1,000 MSEK in Q4 and full year 2013. 2008-2011 Not restated for changed pension accounting principles.

Dividend proposal 2 0 1 5 : 6 .5 0 SEK ( 5 .7 0 ) Stock split proposal 3 :1

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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

Q1 Report 2015

Johan Molin President and CEO

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Conclusions Q1 2015

  • Strong growth by 24% with 5% organic

– Strong growth in Americas, Global Tech and ESD – Good growth in EMEA – Decline in APAC

  • Good acquisition pipeline
  • Emerging markets 23% (22)
  • Strong EBIT improvement of 25%
  • Strong EPS improvement by 28%

3 2

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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

Q&A

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