Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q2 2024 Earnings Presentation
32 slides from Assa Abloy Ab Class B's earnings presentation, Jul 17, 2024
Slide 1: ASSA ABLOY Q2 interim report 2024
ASSA ABLOY Q2 interim report 2024
Slide 2: Strong performance
Strong performance Negative organic sales development – Good sales growth in EMEIA and Americas – Stable sales growth in Entrance Systems – Sales decline in APAC and Global Technologies Strong growth through acquisitions Strong operating margin and record operating profit Excellent cash conv
Slide 3: Q2 2024 figures in summary
Q2 2024 figures in summary Sales EBIT* +10% +11% Sales MSEK 37,968 +10% – -1% organic 40,000 7,000 37,968 – +11% acquired and divested 38,000 6,500 – +0% currency 36,000 34,474 34,000 6,000 EBITA-margin* 16.9% (16.6%) 6,085 32,000 5,500 30,000 5,500 EBIT-margin* 16.0% (16.0%) 5,000 28,000 26,0
Slide 4: Sales by region Apr-Jun 2024
Sales by region ASSA ABLOY 100 10 -1 Emerging markets 14 11 0 Apr-Jun 2024 30 2 2 55 17 -2 7 -3 -11 1 23 8 3 25 6 4 -3 -4 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
Slide 5: Market highlights
1 2 Market highlights Project wins and achievements Delivered 1,200 hurricane approved garage doors made 1 of recycled steel to a new residential development in Florida Large Dutch bank selects our revolving doors, swing doors 2 and security lanes for their new headquarters 3 4 A package of fi
Slide 6: FX adjusted sales growth
FX adjusted sales growth % 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
Slide 7: Operating margin
Operating margin 16.6% EBITA-margin run rate % Run rate: EBIT-margin 15.7% (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 *) Operating margin before amortization of intangible assets recogn
Slide 8: Operating profit
Operating profit +20% in 2023 MSEK 5 year run rate EBIT up 63% 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 8
Slide 9: Acquisitions
Acquisitions Active pipeline – 8 acquisitions completed in Q2 – 11 acquisitions completed in H1 – Representing annualized sales of MSEK 2,900 9
Slide 10: Wesko Locks
Wesko Locks Canadian manufacturer and supplier of electronic and specialty locks Complements current high-security products and solutions Sales of MSEK 170 in 2023 Accretive to EPS from the start 10
Slide 11: Nomadix and Global Reach
Nomadix and Global Reach US and UK based providers of Wi-Fi access and engagement platform solutions for the hospitality industry Technological addition to hospitality business and adjacent verticals Sales of MSEK 300 in 2023 Accretive to EPS from the start 11
Slide 12: Opening Solutions EMEIA
Opening Solutions 16% EMEIA of Group sales Organic sales 1% – Strong growth in Central Europe 6,500 21% – Good growth in the Nordics 6,000 19% – Stable sales in South Europe, Middle East/India/Africa 5,500 and the UK 17% 5,000 4,500 15% Operating margin 13.6% (12.5%) 4,000 13% – Very strong oper
Slide 13: Opening Solutions Americas
Opening Solutions 30% of Americas Group sales Organic sales 3% – Strong sales in North America Non-Residential and 12,000 25% Latin America 11,000 24% 10,000 23% Operating margin 19.0% (20.5%) 9,000 22% – Stable operating leverage 8,000 21% – FX -10 bps 7,000 20% – M&A -140 bps 6,000 19% – HHI
Slide 14: Opening Solutions Asia Pacific
Opening Solutions 6% Asia Pacific of Group sales Organic sales -5% – Sales decline in Pacific, South Korea and China 3,000 15% – Significant sales decline in South-East Asia 10% 2,500 Operating margin 8.3% (7.8%) – Strong volume leverage despite lower sales 5% – FX +60bps 2,000 AUD 0% – M&A -1
Slide 15: Global Technologies
Global Technologies 15% of Group sales Organic sales -7% – Very strong sales growth in Citizen ID 6,000 24% – Strong sales growth in Identity & Access Solutions 5,500 22% – Sales decline in Secure Issuance and Identification Technology 5,000 20% – Significant sales decline in Extended Access and P
Slide 16: Entrance Systems
Entrance Systems 32% of Group sales Organic sales 0% – Strong sales growth in Pedestrian 13,000 18% – Sales decline in Perimeter Security, Residential and Industrial 12,000 17% 11,000 – Strong sales growth in service 16% 10,000 15% Operating margin 17.0% (16.2%) 9,000 14% – Strong operating leve
Slide 17: Financial summary
FX & acquisition ‘run-rate’ effects in Q3 2024 Financial summary (30 June 2024): SALES FX: -2% M&A: 4% April-June January-June SEK M 2023 2024 Change 2023 2024 Change Sales 34,474 37,968 10% 66,865 73,168 9% - Organic growth 897 -349 -1% 3,115 -1,111 -2% - Acquired net growth 2,002 3,925 11% 3,346 7
Slide 18: Bridge analysis – Q2 2024
Bridge analysis – Q2 2024 MSEK Q2 2023 Organic Currency Acq/div Q2 2024 Growth 17% -1% 0% 11% 10% Sales 34,474 -349 -83 3,925 37,968 Operating income* 5,500 37 38 511 6,085 Operating margin, %* 16.0% -10.5% -45.5% 13.0% 16.0% Dilution/accretion 0.2 pts 0.1 pts -0.3 pts *Excluding items affecting com
Slide 19: Cost breakdown as % of sales – Q2 2024
Cost breakdown as % of sales – Q2 2024 QTD 2024 % QTD 2023 excl. acq/div Δ QTD 2024 Direct material -35.2% -32.5% +2.7 pts -33.6% Conversion cost -23.5% -25.0% -1.5 pts -24.6% Gross margin 41.3% 42.5% +1.2 pts 41.8% S, G & A -25.3% -26.1% -0.8 pts -25.8% EBIT* 16.0% 16.4% +0.4 pts 16.0% *Excluding i
Slide 20: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months cash flow / EBT = 118% 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
Slide 21: Gearing % and net debt, MSEK
Gearing % and net debt, MSEK Net debt/EBITDA** 2.4 (2.8) Net debt Net debt/Equity 68% (75%) 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, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding i
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
Slide 23: Conclusions
Conclusions Strong profitable growth – Strong sales growth of 10% driven by acquisitions – Record operating income – Excellent cash conversion Uncertain economic climate – Take advantage of opportunities – Agility and efficiency 23
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
Slide 25: Appendix
Appendix
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 -35.2% -32.5% +2.7 pts -33.6% -35.2% -32.5% +2.7 pts -33.8% Conversion cost -23.5% -25.0% -1.5 pts -24.6% -23.5% -25.0% -1.5 pts -24.7% Gross margin 41.3% 42
Slide 27: Opening Solutions EMEIA’s bridge
Opening Solutions EMEIA’s bridge MSEK Q2 2023 Organic Currency Acq/Div Q2 2024 Growth 12% 1% 0% 2% 3% Sales 6,202 87 -14 116 6,391 Operating income* 777 54 10 31 872 Operating margin, %* 12.5% 62.1% -73.4% 26.7% 13.6% Dilution/accretion 0.7pts 0.2pts 0.2pts 12 months figures Sales 24,420 25,007 EBIT
Slide 28: Opening Solutions Americas’ bridge
Opening Solutions Americas’ bridge MSEK Q2 2023 Organic Currency Acq/Div Q2 2024 Growth 22% 3% -1% 33% 35% Sales 8,549 231 -5 2,786 11,562 Operating income* 1,755 39 2 403 2,198 Operating margin, %* 20.5% 16.7% -38.3% 14.5% 19.0% Dilution/accretion 0.0pts -0.1pts -1.4pts 12 months figures Sales 31,4
Slide 29: Opening Solutions Asia Pacific’s bridge
Opening Solutions Asia Pacific’s bridge MSEK Q2 2023 Organic Currency Acq/Div Q2 2024 Growth 16% -5% -2% -5% -12% Sales 2,765 -138 -55 -142 2,430 Operating income* 215 -11 12 -14 203 Operating margin, %* 7.8% 7.7% -22.6% 10.2% 8.3% Dilution/accretion 0.0pts 0.6pts -0.1pts 12 months figures Sales 10,
Slide 30: Global Technologies’ bridge
Global Technologies’ bridge MSEK Q2 2023 Organic Currency Acq/Div Q2 2024 Growth 33% -7% -1% 9% 1% Sales 5,869 -435 -13 519 5,939 Operating income* 1,082 -169 -3 27 937 Operating margin, %* 18.4% 38.9% 24.6% 5.2% 15.8% Dilution/accretion -1.6pts 0.0pts -1.0pts 12 months figures Sales 22,327 23,021 E
Slide 31: Entrance Systems’ bridge
Entrance Systems’ bridge MSEK Q2 2023 Organic Currency Acq/Div Q2 2024 Growth 10% 0% 0% 4% 4% Sales 11,715 -9 -15 505 12,196 Operating income* 1,899 96 16 64 2,077 Operating margin, %* 16.2% -1,098% -111% 12.8% 17.0% Dilution/accretion 0.8pts 0.2pts -0.2pts 12 months figures Sales 45,354 47,552 EBIT
Slide 32: Thank you
Thank you assaabloy.com