Q4 Report 2017 2 February 2018 CEOs Comments The implementation of - - PowerPoint PPT Presentation

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Q4 Report 2017 2 February 2018 CEOs Comments The implementation of - - PowerPoint PPT Presentation

Dec 21, 2023 656 likes •960 views

Q4 Report 2017 2 February 2018 CEOs Comments The implementation of our Profitable Growth Strategy continues Continued work with the strategic review in France Factory closure in South Africa completed Prioritisation of product

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Q4 Report 2017

2 February 2018

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Page 2 GUNNEBO Q4 REPORT 2017

▪ The implementation of our Profitable Growth Strategy continues

▪ Continued work with the strategic review in France ▪ Factory closure in South Africa completed ▪ Prioritisation of product areas to further strengthen focus on customers and delivery

▪ Weak sales in the quarter

▪ Bank sales in India and South Africa ▪ Large Entrance Control order delivered in quarter four 2016 in Europe

▪ Strong order intake in Q4 ▪ Full year EBIT: 6.2%

CEO’s Comments

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SLIDE 3

Page 3 GUNNEBO Q4 REPORT 2017

Fourth Quarter 2017 in Brief

2017 2016 2017 2016

Q4 IN BRIEF

Q4 Q4 YTD YTD Net sales, MSEK 1,632 1,776 5,991 6,088 EBITDA excl. items affecting comparability (IAC), MSEK 163 203 486 561 EBITDA margin excl. items affecting comparability (IAC), % 10.0 11.4 8.1 9.2 EBITDA, MSEK 133 173 421 489 EBITDA margin, % 8.1 9.7 7.0 8.0 Operating profit (EBIT) excl. items affecting comparability (IAC), MSEK 134 172 369 438 Operating margin (EBIT) excl. items affecting comparability (IAC), % 8.2 9.7 6.2 7.2 Operating profit (EBIT), MSEK 104 142 304 366 Operating margin (EBIT), % 6.4 8.0 5.1 6.0 Net profit for the period, MSEK 76 96 160 209 Basic earnings per share, SEK 0.91 1.25 2.00 2.71 Free cash flow, MSEK 71 107

  • 74

159 Dividend per share (*proposed), SEK

  • 1.20*

1.20

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Page 4 GUNNEBO Q4 REPORT 2017

Net Sales, MSEK

Sales by Product Area, YTD

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Page 5 GUNNEBO Q4 REPORT 2017

Organic Sales Growth by Quarter

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Page 6 GUNNEBO Q4 REPORT 2017

Sales Growth by Quarter and YTD by Region

SALES VS LAST YEAR (QTD)

Organic Structure Currency Total EMEA

  • 6%

0% 0%

  • 6%

APAC

  • 9%

0%

  • 4%
  • 13%

AMERICAS

  • 3%

0%

  • 6%
  • 9%

TOTAL

  • 6%

0%

  • 2%
  • 8%

SALES VS LAST YEAR (YTD)

Organic Structure Currency Total EMEA

  • 3%

0% 1%

  • 2%

APAC

  • 4%

0% 1%

  • 3%

AMERICAS 1% 0% 1% 2% TOTAL

  • 3%

0% 1%

  • 2%
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Page 7 GUNNEBO Q4 REPORT 2017

Organic Sales Growth Development by Region Q4 2017 vs Q4 2016

EMEA Asia-Pacific Americas

Sales:

  • 3%

Sales:

  • 9%

Sales:

  • 6%

Group

Sales:

  • 6%
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Page 8 GUNNEBO Q4 REPORT 2017

Gunnebo’s Product Areas and % of Sales Full Year 2017

Cash Management

▪ Deposit & recycling ▪ Closed cash management ▪ Envelope & coin-roll systems ▪ Application & monitoring software ▪ Services

Entrance Security

▪ Entrance control ▪ Security doors & partitions ▪ Electronic article surveillance ▪ Services

Safes & Vaults

▪ Safes ▪ Vaults & vault doors ▪ Safe deposit lockers ▪ ATM safes ▪ Services

Electronic Security

▪ Access control ▪ Intrusion detection ▪ Electronic locking ▪ Remote monitoring ▪ Services

Other

▪ Fire safety products and services ▪ Other traded products and services

33% 19% 23% 18% 7%

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Page 9 GUNNEBO Q4 REPORT 2017

▪ Continued good sales development in the quarter ▪ Growth area – has continued to strengthen the offering and competence throughout the year ▪ Gunnebo’s cash management solutions will optimise cash processing at one of the first drive-in cinemas in Australia ▪ Renewed multi-year service contract signed with Nordic retail chain, COOP Product Area Cash Management

Cash Management

▪ Deposit & recycling ▪ Closed cash management ▪ Envelope & coin-roll systems ▪ Application & monitoring software ▪ Services

Sales by Region

FY 2017

EMEA, 67% APAC, 8% Americas, 25%

19%

  • f Group Sales
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Page 10 GUNNEBO Q4 REPORT 2017

▪ Continued strong sales development in the quarter ▪ Delivery to high-risk site in Australia has started ▪ Breakthrough order to the metro sector in India ▪ Another growing customer segment is airport. During the quarter several orders for pre- boarding gates were received from customers including Munich Airport and Incheon Airport. ▪ In general, good development of sales to public and commercial buildings

Product Area Entrance Security

Entrance Security

▪ Entrance control ▪ Security doors & partitions ▪ Electronic article surveillance ▪ Services

* Entrance Control

EMEA, 61% APAC, 22% Americas, 17%

23%

  • f Group Sales

Sales by Region

FY 2017

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Page 11 GUNNEBO Q4 REPORT 2017

▪ Sales developed slowly in the quarter:

▪ Sales of graded safes and vaults decreased in the quarter mainly due to continued slow business with banks in several major markets ▪ Sales of safes to global manufacturers of ATMs down from a high level mainly due to lower volumes in India

▪ The interest for the automated safe deposit locker system, SafeStore Auto, has continued to be good during the quarter and several new orders were received

▪ First order from Pakistan ▪ Solution will be installed at high-end housing estate in Shanghai

Product Area Safes & Vaults

Safes & Vaults

▪ Safes ▪ Vaults & vault doors ▪ Safe deposit lockers ▪ ATM safes ▪ Services

EMEA, 62% APAC, 23% Americas, 15%

33%

  • f Group Sales

Sales by Region

FY 2017

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Page 12 GUNNEBO Q4 REPORT 2017

▪ Sales in the quarter were flat – important improvement compared to the drop earlier in the year ▪ Belgian hospital group, Chirec, equips its latest hospital with security solutions from Gunnebo, including electronic security, cash management and entrance security Product Area Electronic Security

Electronic Security

▪ Access control ▪ Intrusion detection ▪ Electronic locking ▪ Remote monitoring ▪ Services

18%

  • f Group Sales

EMEA, 78% APAC, 4% Americas, 18%

Sales by Region

FY 2017

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Page 13 GUNNEBO Q4 REPORT 2017

▪ OKI project completed Other - Fire Projects

Other

▪ Fire safety products and services ▪ Other traded products and services

7%

  • f Group Sales
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Page 14 GUNNEBO Q4 REPORT 2017

Region Europe, Middle East & Africa (EMEA) Q4 2017

▪ Sales decreased organically by 6% ▪ Positive development of sales in UK, South Europe and France ▪ Strategic review in France continues ▪ Local production in South Africa closed ▪ Cash Management and Electronic Security showed good sales development in the quarter ▪ Entrance Security and Safes & Vaults had a weaker development ▪ Strong order intake

EMEA Sales by Product Area, YTD 2017

2017 2016 2017 2016 Q4 Q4 YTD YTD Net sales, MSEK 1,058 1,131 3,831 3,907 Organic growth, %

  • 6

2

  • 3

Operating profit excl. IAC, MSEK 54 76 116 172 Operating margin excl. IAC, % 5.1 6.7 3.0 4.4 Items affecting comparability (IAC), MSEK

  • 22
  • 23
  • 47
  • 59

Operating profit, MSEK 32 53 69 113

REGION EMEA

0% 1% 2% 3% 4% 5% 6% 7% 200 400 600 800 1,000 1,200 1 2 3 4 1 2 3 4 1 2 3 4 2015 2016 2017

Operating margin %,

  • excl. IAC

Operating margin % 12M,

  • excl. IAC

Sales per quarter

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Page 15 GUNNEBO Q4 REPORT 2017

Region Asia-Pacific Q4 2017

▪ Sales decreased organically by 9% ▪ Continued weak sales development in India – low spending from the public bank sector and lower sales

  • f safes to global ATM manufacturers in the region

▪ Positive development of sales for other markets in the region ▪ Entrance Security and Electronic Security developed well ▪ Weaker development for fire projects (Other) – OKI project now complete ▪ Safes & Vaults had a weaker sales development ▪ Strong order intake

APAC Sales by Product Area, YTD 2017

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 50 100 150 200 250 300 350 400 1 2 3 4 1 2 3 4 1 2 3 4 2015 2016 2017

Operating margin %,

  • excl. IAC

Operating margin % 12M,

  • excl. IAC

Sales per quarter

2017 2016 2017 2016 Q4 Q4 YTD YTD Net sales, MSEK 305 351 1,091 1,129 Organic growth, %

  • 9

3

  • 4

5 Operating profit excl. IAC, MSEK 42 55 130 138 Operating margin excl. IAC, % 13.8 15.7 11.9 12.2 Items affecting comparability (IAC), MSEK

  • 6
  • 3
  • 12
  • 5

Operating profit, MSEK 36 52 118 133

REGION ASIA-PACIFIC

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Page 16 GUNNEBO Q4 REPORT 2017

Region Americas Q4 2017

▪ Sales decreased organically by 3% ▪ Positive development of sales in Brazil, flat in Mexico ▪ Weak development of sales in North America, due to slow business to bank projects ▪ Safes & Vaults developed well particularly in the US where sales to public administration picked up ▪ Entrance Security developed stably ▪ Sales of Electronic Security developed well in Brazil, but continued to be weak on all other markets ▪ Cash Management sales decreased due to delays in investments in bank projects ▪ Order intake was flat

Americas Sales by Product Area, YTD 2017

2017 2016 2017 2016 Q4 Q4 YTD YTD Net sales, MSEK 269 294 1,069 1,052 Organic growth, %

  • 3

4 1

  • 2

Operating profit excl. IAC, MSEK 38 41 123 128 Operating margin excl. IAC, % 14.1 13.9 11.5 12.2 Items affecting comparability (IAC), MSEK

  • 2
  • 4
  • 6
  • 8

Operating profit, MSEK 36 37 117 120

REGION AMERICAS

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 50 100 150 200 250 300 350 1 2 3 4 1 2 3 4 1 2 3 4 2015 2016 2017

Operating margin %,

  • excl. IAC

Operating margin % 12M,

  • excl. IAC

Sales per quarter

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Page 17 GUNNEBO Q4 REPORT 2017

Operating Profit by Quarter, MSEK

Operating profit Operating profit, excl. IAC

Full year Operating profit

  • excl. IAC

2017: 369 2016: 438 2015: 397

Operating profit

2017: 304 2016: 366 2015: 320

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Page 18 GUNNEBO Q4 REPORT 2017

Operating Profit and EBITDA by Quarter, excl. Items Affecting Comparability

Operating Profit EBITDA

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Page 19 GUNNEBO Q4 REPORT 2017

Operating Profit Bridge by Quarter and YTD

OPERATING PROFIT BRIDGE Q4

Operating profit 2016 142 Organic

  • 26

Structure 9 Currency Other

  • 21

Operating profit 2017 104

OPERATING PROFIT BRIDGE YTD

Operating profit 2016 366 Organic

  • 39

Structure 54 Currency 17 Other

  • 94

Operating profit 2017 304

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Page 20 GUNNEBO Q4 REPORT 2017

Operating Margin by Quarter, %

Operating margin %, quarter Operating margin % quarter, excl. IAC Operating margin %, LTM Operating margin % LTM, excl. IAC

Full year Operating margin,

  • excl. IAC

2017: 6.2 2016: 7.2 2015: 6.6

Operating margin

2017: 5.1 2016: 6.0 2015: 5.3

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Page 21 GUNNEBO Q4 REPORT 2017

Group Income Statement

CONDENSED CONSOLIDATED INCOME STATEMENTS

2017 2016 2017 2016 MSEK Q4 Q4 YTD YTD Net sales 1,632 1,776 5,991 6,088 Cost of goods sold

  • 1,185
  • 1,257
  • 4,306
  • 4,319

Gross profit 447 519 1,685 1,769 Selling and administrative expenses

  • 351
  • 379
  • 1,395
  • 1,417

Other operating income and expenses, net 8 2 14 14 Operating profit 104 142 304 366 Financial income and expenses, net

  • 14
  • 13
  • 57
  • 53

Profit before taxes 90 129 247 313 Income tax

  • 14
  • 33
  • 87
  • 104

Net profit for the period 76 96 160 209 Net profit attributable to: Shareholders of the Parent Company 70 95 153 206 Non-controlling interests 6 1 7 3 Net profit for the period 76 96 160 209 Basic earnings per share, SEK 0.91 1.25 2.00 2.71 Diluted earnings per share, SEK 0.91 1.24 2.00 2.70

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Page 22 GUNNEBO Q4 REPORT 2017

Free Cash Flow by Quarter and Last Twelve Months

Free cash flow 12M

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Page 23 GUNNEBO Q4 REPORT 2017

Free Cash Flow

FREE CASH FLOW MSEK 2017 Q4 2016 Q4 2017 YTD 2016 YTD Operating profit 104 142 304 366 Depreciation 16 17 66 68 Amortisation- acquisition-related intangibles 4 6 22 24 Amortisation - other intangibles 9 8 29 31 Other

  • 23
  • 43
  • 150
  • 133

Change in working capital 13 7

  • 200
  • 122

Operating cash flow 123 137 71 234 Investing cash flow excluding acquisitions

  • 52
  • 30
  • 145
  • 75

Free cash flow 71 107

  • 74

159

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Page 24 GUNNEBO Q4 REPORT 2017

Net Debt

NET DEBT INCL. & EXCL. PENSION + NET LEVERAGE

Net debt Net leverage Pension liability Net leverage excl. pension liability

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Page 25 GUNNEBO Q4 REPORT 2017

Group Financial Targets & Outcome

FINANCIAL TARGETS & OUTCOME

Target 2017 2016 2017 2016 Q4 Q4 YTD YTD Organic growth

  • 6%

3%

  • 3%

1% 5% Operating margin1) 8.2% 9.7% 6.2% 7.2% 7.0% Return on capital employed1) 2) 10.3% 12.8% 10.3% 12.8% 15.0% Equity ratio 33% 34% 33% 34% 30%

1) Excluding items affecting comparability (IAC) 2) During the last twelve-month period

5%

Organic growth

7%

Operating margin

15%

Return on capital employed

30%

Equity ratio

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Page 26 GUNNEBO Q4 REPORT 2017

Final Remarks

▪ 2017 was an unsatisfactory year in terms of growth and profitability ▪ Structural measures continue to drive productivity ▪ Strong agenda in place to support growth

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Page 27 GUNNEBO Q4 REPORT 2017

Financial Calendar 2018

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