Q2 Report 2015 Johan Molin President and CEO Financial highlights - - PowerPoint PPT Presentation

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Q2 Report 2015 Johan Molin President and CEO Financial highlights - - PowerPoint PPT Presentation

Mar 23, 2024 381 likes •707 views

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q2 Report 2015 Johan Molin President and CEO Financial highlights Q2 2015 Strong developm ent Strong

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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

Q2 Report 2015

Johan Molin President and CEO

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Financial highlights Q2 2015

  • Strong developm ent

– Strong growth in Global Tech – Good growth in Americas, EMEA and Entrance – Negative in APAC due to weak Chinese market

  • Sales

1 7 ,0 8 2 MSEK + 2 2 %

4% organic, 3% acquired growth, 15% currency

  • EBI T

2 ,7 4 2 MSEK + 2 4 % Currency effect 302 MSEK

  • EPS

1 .7 0 SEK + 2 3 % Underlying tax rate 26%

2

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Financial highlights Jan-Jun 2015

  • Strong first half of the year

– Strong growth in Americas and Global Tech – Good growth in EMEA and Entrance – Weak in APAC

  • Sales

3 2 ,3 3 4 MSEK + 2 3 %

4% organic, 3% acquired growth, 16% currency

  • EBI T

5 ,0 7 1 MSEK + 2 4 % Currency effect 551 MSEK

  • EPS

3 .1 5 SEK + 2 5 % Underlying tax rate 26%

3

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SLIDE 4

4

Market highlights

  • Entrance - segmentation shows result

– Large projects won combining pedestrian- industrial- and high performance door solutions

  • Positive momentum for Identity Assurance

– Product launches drive sales – real time cloud, threat analytics & several solutions for mobile & tablets

  • Strong growth in Hospitality

– High demand of Mobile Keys solution from hotels of all sizes

  • Strong DDL sales driven by Home Automation

– Successful integration partnerships in Asia, US & Europe

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SLIDE 5

5

Group sales in local currencies Jan-Jun 2015

2 + 3 1 3 9 + 8 1 6 + 1 0 4 + 8 1 + 5

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

3 8 + 4

Em erging m arkets 2 5 % ( 2 3 ) of sales

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SLIDE 6
  • 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

Organic Gr owth Acquired Growth Sales in Fixed Curr encies

Sales growth, currency adjusted

6

2 0 1 5 Q2 + 7 % Organic + 4 % Acquired + 3 %

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SLIDE 7

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 10 500 900 1 100 1 300 1 500 1 700 1 900 2 100 2 300 2 500 2 700 2 900 2008 2009 2010 2011 2012 2013 2014 2015 12-m onths Quarter

Quarter Rolling 12-mont hs

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

7

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

Quarter Rolling 12- m onths

2 0 1 5 Dilution Q2

  • 0 .1 %

2 0 1 5 -0 .1 %

Operating margin (EBIT), %

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

8

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Manufacturing footprint

9

  • Status manufacturing footprint programs 2006-2013:

– 71 factories closed to date, 9 to go – 84 factories converted to assembly, 5 to go – 39 offices closed, 8 to go

  • Personal reduction QTD 139p and total 9,759p
  • 225p in further planned reductions

 776 MSEK of the provision remains for all programs

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Margin highlights Q2 2015

EBI T m argin 1 6 .1 % ( 1 5 .9 ) + 0 .2 % + Volume increase 2.5% , price 1.5% + Margin increase + 0.2% + Organic growth + Manufacturing footprint

  • Currency -0.1%
  • Acquisitions -0.1%

1 0

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Acquisitions 2015

  • Fully active pipeline
  • 7 acquisitions done in 2015
  • Annualized sales 1 400 MSEK
  • Added sales 3.0%

1 1

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L-Door, Belgium

1 2

  • Turnover of 175 MSEK with 120

employees

  • Domestic market leader in sectional

doors

  • Strong service organisation
  • Excellent market coverage
  • Accretive to EPS
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Flexim, Finland

1 3

  • Turnover of 340 MSEK with 245

employees

  • Leading security system provider

and locksmith

  • Good domestic sales coverage
  • Expertise in project specification

and services

  • Accretive to EPS
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Prometal, UAE and Saudi Arabia

1 4

  • Turnover of 225 MSEK with 420

employees

  • Leading manufacturer of steel

security doors

  • Established and well reputed brand
  • Reinforces the specification of total

door opening solutions

  • Accretive to EPS
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SLIDE 15

23%

SALES share of Group total %

Division - EMEA

  • Strong growth in Scandinavia, Finland, Eastern Europe

and Africa

  • Good growth in Germany and Iberia
  • Flat in UK, Italy and Israel
  • Negative in Benelux and France
  • No inflation makes currency compensation difficult
  • Operating margin (EBIT)

+ Organic + 5% + Savings

  • Dilution & Currency -0.6%

1 5 13 14 15 16 17 18 19 2010 2011 2012 2013 2014 2015 EBI T %

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Division - Americas

  • Strong growth in AHW, Residential, Mexico and South

America

  • Growth in El-mech, Doors and Canada
  • Stable trend in High security
  • Strong demand from Home Automation
  • Operating margin (EBIT)

+ Organic + 5% + Efficiency

  • Currency & Dilution -0.4%

1 7

20

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

23%

SALES share of Group total %

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Division - Asia Pacific

  • Strong growth in Australia, South Asia and North Asia
  • Growth in New Zealand
  • Continued decline in China

– Efficiency measures implemented in China

  • Operating margin (EBIT)
  • Organic -2%

+ Personnel reduction in China -9% , + Positive sales mix

  • Currency & Dilution -0.4%

14

1 9 8 10 12 14 16 18 2010 2011 2012 2013 2014 2015 EBI T %

15%

SALES share of Group total %

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Division - Global Technologies

  • HID

– Strong growth in IAM (Identity and Access management), IDT (inlays) and Project sales – Slight decline in Gov-Id – Promising development of ID-Assurance – Investment in R&D

  • Hospitality

– Strong growth – Strong profit

  • Operating margin (EBIT)

+ Organic + 10%

  • Negative mix
  • Currency & Dilution -0.7%

13

2 1 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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Division - Entrance Systems

  • Strong growth in High Speed Doors, Flexiforce, Amarr

and 4Front

  • Good growth in Door Automatics
  • Flat in Industrial EU and Ditec and decline in Residential

EU

  • Improving efficiency
  • Operating margin (EBIT)

+ Organic + 5% + Consolidation effects

  • Currency -0.4%

28

2 3 11 12 13 14 15 16 17 18 2010 2011 2012 2013 2014 2015 EBI T %

25%

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

Q2 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 Q2 2015

MSEK 2014 2015 Change 2014 2015 Change

Sales 13,964 17,082 +22% 26,268 32,334 +23% Whereof Organic growth +4% +4% Acquired growth +3% +3% FX-differences +2,008 +15% +3,900 +16% Operating income (EBIT) 2,219 2,742 +24% 4,076 5,071 +24% EBIT-margin (%) ) 15.9 16.1 15.5 15.7 Operating cash flow 1,963 1,991 +1% 2,520 2,511 0% EPS (SEK) 1.38 1.70 +23% 2.52 3.15 +25%

2nd Quarter Six months

2 6

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Bridge Analysis – Apr-Jun 2015

MSEK

2014 Apr-Jun Organic Currency Acq/ Div 2015 Apr-Jun

4% 15% 3% 22%

Revenues

13,964 656 2,008 453 17,082

EBIT

2,219 170 302 51 2,742

%

15.9% 25.9% 15.1% 11.2% 16.1%

Dilution / Accretion

0.4%

  • 0.1%
  • 0.1%

2 7

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P&L Components as % of sales Apr – Jun 2015

Direct material 36.5% 36.8% 37.0% Conversion costs 25.1% 24.3% 24.2% Gross Margin 38.4% 38.9% 38.8% S, G & A 22.5% 22.7% 22.7% EBIT 15.9% 16.2% 16.1% 2 0 1 5

Q2 excl acquisitions

2 0 1 4

Q2

2 0 1 5

Q2

2 8

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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 10 000 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 2008 2009 2010 2011 2012 2013 2014 2015 12-m onths Quarter

Quarter Cash Rolling 12-months EBT Rolling 12 months

2 9

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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 7 0 ( 7 6 ) Net debt/ EBI TDA 2 .3 ( 2 .4 )

30

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

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Earnings per share, SEK

2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2008 2009 2010 2011 2012 2013 2014 2015 1 2 -m onths Quarter SEK

Quarter Rolling 12-m ont hs

3 1

Restated for Stock split 3: 1 2015.

Stock split 2 0 1 5 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

Q2 Report 2015

Johan Molin President and CEO

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Conclusions Q2 2015

  • Strong growth by 22% with 4% organic
  • Emerging markets 25% (23)
  • Strong EBIT improvement of 24%
  • Strong EPS improvement by 23%

3 3

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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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