Assa Abloy Ab Class B · OMXSTO:ASSA_B

Assa Abloy Ab Class B — Q3 2024 Earnings Presentation

32 slides from Assa Abloy Ab Class B's earnings presentation, Oct 23, 2024

  1. Slide 1: ASSA ABLOY Q3 interim report 2024

    ASSA ABLOY Q3 interim report 2024

  2. Slide 2: Record operating profit

    Record operating profit  Small positive organic sales growth – Good sales growth in Americas and Global Technologies – Stable sales growth in EMEIA – Sales decline in Entrance Systems and APAC  Strong operating margin and record operating profit  Excellent cash conversion – 118% cash conversion 

  3. Slide 3: Q3 2024 figures in summary

    Q3 2024 figures in summary Sales EBIT* +1% +8%  Sales MSEK 37,418 +1% – Small positive organic growth 40 000 7 000 – +4% acquired and divested 38 000 37 418 36 881 – -3% currency 36 000 6 500 34 000  EBITA-margin* 17.7% (16.7%) 6 255 32 000 6 000 30 000  EBIT-margin* 16.7% (15.7%) 5 777 28 000 5

  4. Slide 4: Sales by region Jul-Sep 2024

    Sales by region ASSA ABLOY 100 5 0 Emerging markets 14 2 -3 Jul-Sep 2024 30 5 2 54 5 1 7 -3 -8 2 26 13 3 8 0 4 -3 -5 Change in local currencies Organic change Share of sales, % QTD 2024 vs. QTD 2023, % QTD 2024 vs. QTD 2023, % Emerging markets follow IMF’s definition as per 2018-12-31 4

  5. Slide 5: Q3 2024 Market highlights

    Q3 2024 Market highlights Project wins and achievements  30 000 locks, handles and cylinders installed at the Olympic village in Paris  Dock levelers and doors to Europe’s largest logistics center  Workforce management solution with 20,000 badges for major construction site in the US  Complete s

  6. Slide 6: FX adjusted sales growth

    FX adjusted sales growth Sales R12M +46% vs 2019 % MSEK 30 150 000 25 140 000 20 130 000 15 120 000 10 110 000 5 100 000 0 90 000 -5 80 000 -10 -15 70 000 -20 60 000 2019 2020 2021 2022 2023 2024 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6

  7. Slide 7: Operating margin

    Operating margin 16.8% EBITA-margin run rate % Run rate: EBIT-margin 15.9% (15.8%) 19 18 17 Long term target range (average) 16 15 14 13 12 11 10 2019 2020 2021 2022 2023 2024 Quarter* EBIT* Rolling 12-months EBITA* Rolling 12-months * Excluding items affecting comparability, restructuring items and

  8. Slide 8: Operating profit

    Operating profit MSEK Run rate EBIT up 61% vs 5 years ago MSEK 6 000 22 500 20 000 5 000 17 500 4 000 15 000 12 500 3 000 10 000 2 000 7 500 5 000 1 000 2 500 0 0 2019 2020 2021 2022 2023 2024 Quarter Rolling 12-months * Excluding items affecting comparability, restructuring items and impairment of

  9. Slide 9: Acquisitions

    Acquisitions  Active pipeline – 7 acquisitions completed in Q3 – 18 acquisitions completed as of September 2024  Representing annualized sales of MSEK ~7,000  Divestment of Citizen ID – Citizen ID, transaction expected to close during Q1 2025 – Divested annualized sales of MSEK 1,300 9

  10. Slide 10: Level Lock

    Level Lock  US technology solutions business  Complements technology portfolio and strengthens digital offering  Sales of MSEK 170 in 2023  Dilutive to EPS from the start software platform 10

  11. Slide 11: SKIDATA

    SKIDATA  An international leading provider of access management solutions  Enhances and complements current offering with Entrance Systems  Sales of MSEK 3,500 in 2023  Small dilutive effect to EPS from the start 11

  12. Slide 12: Opening Solutions EMEIA

    Opening Solutions 16% EMEIA of Group sales  Organic sales 1% – Good growth in Central Europe and the Nordics 6 500 21% – Stable sales in South Europe 6 000 19% – Sales decline in Middle East/India/Africa and the 5 500 UK/Ireland 17% 5 000 4 500 15%  Operating margin* 14.5% (13.8%) 4 000 13% – Stab

  13. Slide 13: Opening Solutions Americas

    Opening Solutions 30% of Americas Group sales  Organic sales 4% – Very strong sales growth in Latin America 12 000 25% – Strong sales growth in North America non-residential 11 000 24% – Stable sales in North America residential 10 000 23% 9 000 22%  Operating margin* 19.2% (16.9%) 8 000 21% – Str

  14. Slide 14: Opening Solutions Asia Pacific

    Opening Solutions 6% Asia Pacific of Group sales  Organic sales -6% – Stable sales in South Korea 3 000 15% – Sales decline in Pacific – Significant sales decline in China and South-East Asia 10% 2 500  Operating margin* 7.9% (8.7%) 5% – Dilution (-80bps) due to lower sales, partially offset 2 000

  15. Slide 15: Global Technologies

    Global Technologies 17% of Group sales  Organic sales +2% – Very strong sales growth in Citizen ID 6 500 24% – Good sales growth in Identification Technology, Physical Access Control, and Identity & Access Solutions 6 000 22% – Significant sales decline in Secure Issuance and 5 500 20% Extended Acc

  16. Slide 16: Entrance Systems

    Entrance Systems 32% of Group sales  Organic sales -2% – Strong sales growth in Pedestrian 13 000 18% – Good sales growth in Perimeter Security – Sales decline in Residential and Industrial 12 000 17% 11 000 16% – Good sales growth in service 10 000 15% 9 000  Operating margin 17.1% (17.0%) 14% –

  17. Slide 17: Financial summary

    FX & acquisition ‘run-rate’ effects in Q4 2024 Financial summary (30 Sep 2024): SALES FX: -3% M&A: 5% July-September* January-September* SEK M 2023 2024 Change 2023 2024 Change Sales 36,881 37,418 1% 103,746 110,586 7% - Organic growth 144 91 0% 3,259 -1,020 -1% - Acquired net growth 3,733 1,579 4%

  18. Slide 18: Bridge analysis – Q3 2024

    Bridge analysis – Q3 2024 MSEK Q3 2023 Organic Currency Acq/div Q3 2024 Growth 16% 0% -3% 4% 1% Sales 36,881 91 -1,133 1,579 37,418 Operating income* 5,777 348 -194 325 6,255 Operating margin, %* 15.7% 382.1% 17.2% 20.6% 16.7% Dilution/accretion 0.9 pts -0.1 pts 0.2 pts *Excluding items affecting co

  19. Slide 19: Cost breakdown as % of sales – Q3 2024

    Cost breakdown as % of sales – Q3 2024 QTD 2024 % QTD 2023 excl. acq/div Δ QTD 2024 Direct material -35.9% -33.5% +2.4 pts -33.7% Conversion cost -23.1% -24.4% -1.3 pts -24.2% Gross margin 41.0% 42.1% +1.1 pts 42.1% S, G & A -25.3% -25.6% -0.3 pts -25.4% EBIT* 15.7% 16.5% +0.8 pts 16.7% *Excluding i

  20. Slide 20: Operating cash flow, MSEK

    Operating cash flow, MSEK Quarter 12 months cash flow / EBT = 111% 12 months 8 000 26 000 23 500 7 000 21 000 6 000 18 500 5 000 16 000 13 500 4 000 11 000 3 000 8 500 6 000 2 000 3 500 1 000 1 000 0 -1 500 2019 2020 2021 2022 2023 2024 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 month

  21. Slide 21: Gearing % and net debt, MSEK

    Gearing % and net debt, MSEK Net debt/EBITDA* 2.3 (2.6) Net debt Net debt/Equity 66% (71%) Gearing % 80 000 80 70 000 70 60 000 60 50 000 50 40 000 40 30 000 30 20 000 20 10 000 10 0 0 2019 2020 2021 2022 2023 2024 Net debt, MSEK Gearing, % * Excluding items affecting comparability. 21

  22. Slide 22: Earnings per share, SEK

    Earnings per share, SEK Quarter 12 months 4,00 16 3,50 14 3,00 12 2,50 10 2,00 8 1,50 6 1,00 4 0,50 2 2019 2020 2021 2022 2023 2024 Quarter, SEK Rolling 12 months, SEK Excluding items affecting comparability 22

  23. Slide 23: Conclusions

    Conclusions  Strong sales growth – Currency adjusted sales growth of 5% – Record operating income – Excellent cash conversion  EBIT-margin run rate of 15.9%  Uncertain economic climate – Take advantage of opportunities – Agility and efficiency – Lower interest rates 23

  24. Slide 24: Experience a safer and more open world

    Experience a safer and more open world The ASSA ABLOY Group is the global leader in.access solutions. Every day we help people feel safe, secure and experience amore open world. ASSA ABLOY

  25. Slide 25: Appendix

    Appendix

  26. Slide 26: Cost breakdown as % of sales

    Cost breakdown as % of sales QTD 2024 YTD 2024 excl. excl. % QTD 2023 acquisitions Δ QTD 2024 YTD 2023 acquisitions Δ YTD 2024 Direct material -35.9% -33.5% +2.4 pts -33.7% -35.5% -32.9% +2.6 pts -33.7% Conversion cost -23.1% -24.4% -1.3 pts -24.2% -23.3% -24.7% -1.4 pts -24.6% Gross margin 41.0% 42

  27. Slide 27: Opening Solutions EMEIA's bridge

    Opening Solutions EMEIA’s bridge MSEK Q3 2023 Organic Currency Acq/Div Q3 2024 Growth 5% 1% -3% 1% -1% Sales 6,061 32 -144 61 6,010 Operating income* 838 7 5 19 869 Operating margin, %* 13.8% 21.7% -3.2% 31.9% 14.5% Dilution/accretion 0.0pts 0.5pts 0.2pts 12 months figures Sales 24,723 24,956 EBIT*

  28. Slide 28: Opening Solutions Americas' bridge

    Opening Solutions Americas’ bridge MSEK Q3 2023 Organic Currency Acq/Div Q3 2024 Growth 45% 4% -4% 1% 1% Sales 11,091 396 -419 146 11,214 Operating income* 1,870 158 -89 210 2,149 Operating margin, %* 16.9% 39.8% 21.3% 144.1% 19.2% Dilution/accretion 0.8pts -0.1pts 1.6pts 12 months figures Sales 34,

  29. Slide 29: Opening Solutions Asia Pacific's bridge

    Opening Solutions Asia Pacific’s bridge MSEK Q3 2023 Organic Currency Acq/Div Q3 2024 Growth -10% -6% -2% 0% -8% Sales 2,640 -146 -71 2 2,425 Operating income* 229 -32 -5 0 193 Operating margin, %* 8.7% 22.2% 6.4% 10.3% 7.9% Dilution/accretion -0.8pts 0.0pts 0.0pts 12 months figures Sales 10,465 9,3

  30. Slide 30: Global Technologies' bridge

    Global Technologies’ bridge MSEK Q3 2023 Organic Currency Acq/Div Q3 2024 Growth 12% 2% -3% 11% 10% Sales 5,763 120 -175 604 6,313 Operating income* 1,065 89 -51 91 1,195 Operating margin, %* 18.5% 74.2% 29.1% 15.1% 18.9% Dilution/accretion 1.1pts -0.3pts -0.4pts 12 months figures Sales 22,948 23,57

  31. Slide 31: Entrance Systems' bridge

    Entrance Systems’ bridge MSEK Q3 2023 Organic Currency Acq/Div Q3 2024 Growth 6% -2% -3% 7% 2% Sales 11,725 -182 -338 768 11,973 Operating income* 1,995 102 -54 4 2,047 Operating margin, %* 17.0% -56.0% 16.0% 0.5% 17.1% Dilution/accretion 1.1pts 0.1pts -1.1pts 12 months figures Sales 46,012 47,800 E

  32. Slide 32: Thank you

    Thank you assaabloy.com

ASSA ABLOY — Q3 2024 Earnings Presentation on 6ix