Q2 Report 2016 Johan Molin President and CEO Financial highlights - - PowerPoint PPT Presentation

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Q2 Report 2016 Johan Molin President and CEO Financial highlights - - PowerPoint PPT Presentation

Feb 15, 2023 221 likes •530 views

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q2 Report 2016 Johan Molin President and CEO Financial highlights Q2, 2016 Strong growth in mature

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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 2016

Johan Molin President and CEO

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SLIDE 2

Financial highlights Q2, 2016

  • Strong growth in mature markets

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

  • Sales

17,894 MSEK +5% 4% organic, 4% acquired growth, -3% currency

  • EBIT

2,910 MSEK +6% Currency effect -81 MSEK

  • EPS

1.82 SEK +7% Underlying tax rate 26%

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Financial highlights Jan-Jun 2016

  • Strong development despite a challenging market

– Strong growth in Americas – Good growth in Entrance Systems, EMEA and Global Tech – Negative growth in APAC due to China

  • Sales

33,785 MSEK +4% 4% organic, 3% acquired growth, -3% currency

  • EBIT

5,321 MSEK +5% Currency effect -158 MSEK

  • EPS

3.30 SEK +5% Underlying tax rate 26%

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SLIDE 4
  • ASSA ABLOY in Forbes 100 most innovative

companies

  • Strong development in EMEA digital product sales

– Driven by APERIO and smart door locks

  • Successful roll out of Service centers in USA

– Incremental growth through local service and quick deliveries

  • Japanese profile CLIQ-cylinder

– Orders and quick pipeline build

Flash DSC

Market highlights

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SLIDE 5

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Group sales in local currencies Jan-Jun 2016

3 +39 40 +7 15 +1 3 +1 1 +12

Share of Group sales 2016 YTD, % Year-to-date vs previous year, %

38 +7

Emerging markets 23% (25) of sales

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

3 6 9 12 15 18 21 34 000 37 000 40 000 43 000 46 000 49 000 52 000 55 000 58 000 61 000 64 000 67 000 70 000 2009 2010 2011 2012 2013 2014 2015 2016 Growth % Sales MSEK

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales growth, currency adjusted

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2016 Q2 +8% Organic +4% Acquired +4%

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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 11 000 11 500 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 2 600 2 800 3 000 3 200 2009 2010 2011 2012 2013 2014 2015 2016 12-months Quarter

Quarter Rolling 12-months

Run rate 11,329 MSEK (10,251) +11%

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12 13 14 15 16 17 2009 2010 2011 2012 2013 2014 2015 2016 EBIT Margin

Quarter Rolling 12-months

2016 Acquisitions Currency Q2

  • 0.2% -0.1%

Operating margin, %

Run rate 2016 16.3% (16.3)

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Manufacturing footprint

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  • Status of manufacturing footprint programs 2006-2013:

– 76 factories closed to date, 2 to go – 99 factories converted to assembly, 16 to go

  • Total personnel reduction:

– 11,356 FTE in total

  • 493 FTE to go for all programs
  • New MFP in progress

 395 MSEK of the provision remains for all programs

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Margin highlights Q2 2016

EBIT margin 16.3% (16.1) +0.2% + Volume increase 3%, price 1% Margin improvement + 4% Organic growth + Manufacturing footprint & pricing

  • Currency -0.1%
  • Acquisitions -0.2%

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Acquisitions 2016

  • Fully active pipeline
  • 9 acquisitions done in 2016
  • Divestment of Carlocks 550 MSEK
  • Acquired annualized sales 1,700 MSEK
  • Added sales 2.5%

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SLIDE 12

Nassau, Denmark

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  • Turnover of 540 MSEK with 360

employees

  • Important European supplier of

industrial doors

  • Adds additional coverage in

industrial doors and service

  • Neutral to EPS
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SLIDE 13

Demoteller, USA

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  • Turnover of 85 MSEK with 32

employees

  • Solutions for the financial card

instance issuance market

  • Enhances position within secure

issuance

  • Accretive to EPS

Trism (Fii Software)

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SLIDE 14

Mauer, Bulgaria

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  • Turnover of 100 MSEK with 200

employees

  • Manufacturer of cylinders and locks
  • Market Leader of locking products in

Bulgaria

  • Accretive to EPS
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Division – EMEA

  • Strong growth in Scandinavia, Finland, Germany,

Iberia, Eastern Europe and Africa

  • Good growth in UK, Benelux, France, Italy and Israel
  • Strong progress of elmech solutions
  • Positive calendar effect
  • Operating margin (EBIT)

+ Organic +6% = Direct material

  • Acquisitions & currency -0.2%

15 13 14 15 16 17 18 19 2010 2011 2012 2013 2014 2015 2016 EBIT %

23%

Sales share of Group total %

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Division - Americas

  • Strong growth in Door group, Elmech, Residential,

Canada, Mexico and South America (ex Brazil)

  • Good growth in AHW, High security and Canada
  • Negative in Brazil
  • Quotation levels continue to develop positive
  • Operating margin (EBIT)

+ Organic +8% + Direct Material

  • Acquisitions and currency -0.7%

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18 19 20 21 22 23 2010 2011 2012 2013 2014 2015 2016 EBIT %

24%

Sales share of Group total %

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SLIDE 17

Division - Asia Pacific

  • Strong growth in Pacific
  • Good growth in South Asia and Korea
  • Continued decline in China

– Personnel reduction China YTD–586 p

  • Exciting orders for elmech in Japan
  • Operating margin (EBIT)
  • Organic -6%

+ Savings mitigate sales decline = Acquisitions and currency 0.2%

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19 8 10 12 14 16 18 2010 2011 2012 2013 2014 2015 2016 EBIT %

13%

Sales share of Group total %

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Division - Global Technologies

  • HID

– Strong growth in PACS, Gov ID, IDT (inlays) and Quantum secure – Flat in IAM (Identity) and project sales

  • Hospitality

– Growth – Strong profit

  • Operating margin (EBIT)

+ Organic +5%

  • R&D investments
  • Acquisitions and currency -0.1%

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21 14 15 16 17 18 19 20 21 2010 2011 2012 2013 2014 2015 2016 EBIT %

13%

Sales share of Group total %

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Division - Entrance Systems

  • Strong growth in Door automatics, EU Industrial, High

speed doors

  • Good growth in Amarr and 4Front and Ditec
  • Negative in EU Residential
  • Continued good leverage
  • Operating margin (EBIT)

+ Organic +4% + Direct Material and consolidation effects

  • Acquisitions and currency -0.3%

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23 10 12 14 16 18 2010 2011 2012 2013 2014 2015 2016 EBIT %

27%

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 2016

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 2016

MSEK 2015 2016 Change 2015 2016 Change

Sales 17,082 17,894 +5% 32,334 33,785 +4% Whereof Organic growth 656 650 +4% 1,336 1,099 +4% Acquired growth 453 593 +4% 829 1,083 +3% FX-differences 2,008

  • 431
  • 3%

3,900

  • 730
  • 3%

Operating income (EBIT) 2,742 2,910 +6% 5,071 5,321 +5% EBIT-margin (%) 16.1 16.3 15.7 15.7 Operating cash flow 1,991 2,519 +27% 2,511 3,017 +20% EPS (SEK) 1.70 1.82 +7% 3.15 3.30 +5%

2nd Quarter Six months

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Bridge Analysis – Apr-Jun 2016

MSEK

2015 Apr-Jun Organic Currency Acq/Div 2016 Apr-Jun

4%

  • 3%

4% 5%

Sales

17,082 650

  • 431

593 17,894

EBIT

2,742 195

  • 81

54 2,910

%

16.1% 29.9% 18.8% 9.1% 16.3%

Dilution / Accretion

0.5%

  • 0.1%
  • 0.2%

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P&L Components as % of sales Jan – Jun 2016

Direct material 36.3% 35.6% 35.3% Conversion costs 24.8% 24.9% 25.3% Gross Margin 38.9% 39.5% 39.4% S, G & A 23.2% 23.5% 23.7% EBIT 15.7% 16.0% 15.7% 2016

YTD excl acquisitions

2015

YTD

2016

YTD

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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 10 500 11 000 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 2009 2010 2011 2012 2013 2014 2015 2016 12-months Quarter

Quarter Cash Rolling 12-months EBT Rolling 12 months

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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

2009 2010 2011 2012 2013 2014 2015 2016

Gearing Net Debt

Net debt Gearing

Debt/Equity 64 (70) Net debt/EBITDA 2.1 (2.3)

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*) 2009-2011 Not restated for changed pension accounting principles.

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Earnings per share, SEK

2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2009 2010 2011 2012 2013 2014 2015 2016 12-months Quarter SEK

Quarter Rolling 12-months 31

Restated for Stock split 3:1 2015.

Q2 EPS +7%

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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 2016

Johan Molin President and CEO

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Conclusions Q2 2016

  • Good growth by 5% with 4% organic and 4% acquired
  • Strong growth in mature markets
  • Chosen by Forbes as 100 most innovative company
  • Good EBIT development +6%
  • Strong cash flow +27%

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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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