Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q1 2012 Earnings Presentation
28 slides from Assa Abloy Ab Class B's earnings presentation, 2012
Slide 1: Q1 Report 2012
“ASSA ABLOY Qi Report 2012 “E . >. e ~~ HEE: : :
Slide 2: ASSA ABLOY overview
ASSA ABLOY overview Financials (SEK bn) Sales by product group Mar 2012 Net sales 43.9 Doors Electro- mechanical 17% EBIT 6.9 locks 21% Op cash flow 6.1 Entrance Mechanical Net debt 15.7 locks Automation 38% 24% Market cap 75 Sales by region Mar 2012 Leading market positions Competitors 51% ASSA ABL
Slide 3: Financial highlights Q1 2012
Financial highlights Q1 2012 ▪ Steady growth with strong profit improvement – Continued strong growth in Global tech – Good development in Europe and North America – Slower emerging markets and declining Australia – Footprint program gives good savings ▪ Sales 10,839 MSEK +25% +3% organic, +19% acqu
Slide 4: Market highlights
Market highlights Branding – Group appearance on all trade shows – Demonstration fleet for architects – One company exposure on internet ▪ Investment in Emerging markets – Build up in India, ME, Africa and South America – Sales units created in Russia, Croatia, Indonesia, Ghana, Uganda, Mozambique,
Slide 5: Emerging markets expansion
Emerging markets expansion Example; Africa ▪ Countries with high total GDP Nigeria Uganda and highly populated cities ▪ 13 new ASSA ABLOY Solution Ethiopia 6,2 centres 6,2 6,2 6,1 ▪ 3 new legal entities Ivory coast 6,7 Kenya Ghana 6,5 6,4 Congo-Kinshasa 7,0 Tanzania 7,3 7,5 7,8 Angola Zambia Mozambi
Slide 6: EMEA new products
ASSA ABLOY Code Handle DDL Door Closers EMEA High impact Products EMEA new products Aperio CLIQ SMARTAIR 6
Slide 7: Group sales in local currencies Jan-Mar
Group sales in local currencies Jan-Mar 2012 51 +39 28 +7 13 +17 1 +5 2 +4 5 +4 Share of Group sales 2012 YTD, % Year-to-date vs previous year, % 7
Slide 8: Organic growth index
Organic growth index Recovery from recession Index 2009-2012 ASSA ABLOY, excl. Cardo 110 105 Group -2% Index 100 = 31/12 2008 100 95 90 85 Division Index 80 EMEA -7% 2009 2010 2011 2012 Americas -16% Asia Pacific +31% Global Tech +10% ESD *) +3% *) Entrance systems division including new acquired co
Slide 9: Sales growth, currency adjusted
Sales growth, currency adjusted Sales MSEK Growth, % 2012 Q1 +22% 46 000 Organic +3% 20 44 000 18 42 000 Acquired +19% 16 14 12 40 000 10 38 000 8 6 36 000 4 2 34 000 0 -2 32 000 -4 -6 30 000 -8 28 000 -10 -12 26 000 -14 -16 24 000 -18 2005 2006 2007 2008 2009 2010 2011 2012 Organic Growth Acquired
Slide 10: Operating income (EBIT), MSEK
Operating income (EBIT), MSEK Quarter 12-months 1 900 7 000 Run rate 6,902 MSEK (6,128), +13% 6 800 1 800 6 600 1 700 6 400 1 600 6 200 6 000 1 500 5 800 1 400 5 600 5 400 1 300 5 200 1 200 5 000 1 100 4 800 4 600 1 000 4 400 900 4 200 4 000 800 3 800 700 3 600 2005 2006 2007 2008 2009 2010 2011 201
Slide 11: Operating margin (EBIT), %
Operating margin (EBIT)*, % EBIT Margin 17,0 Long term target range (average) 16,0 15,0 Run rate 2012 15.7% (16.5) 14,0 13,0 12,0 2005 2006 2007 2008 2009 2010 2011 2012 Quarter Rolling 12-months Q2-Q4 2012 Dilution Group -0.2% *) Excluding restructuring costs. 11
Slide 12: Manufacturing footprint
Manufacturing footprint ▪ Status manufacturing footprint programs 2006-2011: – 45 factories closed to date, 23 to go – 50 factories converted to assembly, 25 to go – 25 offices closed, 4 to go ▪ Personnel reduction QTD 346p and total 6,243p ▪ 1,292 in further planned reductions → 1,569 MSEK of the p
Slide 13: Margin highlights Q1 2012
Margin highlights Q1 2012 EBIT margin 15.3% (15.8), -0.5% + Volume increase 1.5%, price 1.5% + Margin expansion 0.5% + Manufacturing footprint & efficiency improvements + Positive mix with growth in mature markets - Dilution from acquisitions by -1.0% 13
Slide 14: Acquisitions 2012
Acquisitions 2012 ▪ Fully active ▪ 6 acquisitions done so far in 2012 ▪ Annualized sales 2,200 MSEK, +5,3% ▪ Major acquisitions Jan-Apr 2012: → Albany, US → Dynaco, BE → Securistyle, UK → Traka, UK → Frameworks, USA 14
Slide 15: Traka plc
Traka plc ▪ Strong technology company ▪ Intelligent key cabinets ▪ Advanced locker systems ▪ Fleet managment solutions ▪ Sales of 140 MSEK, 40% export ▪ Accretive to EPS from start 15
Slide 16: Frameworks Manufacturing Inc
Frameworks Manufacturing Inc ▪ Entrance to interior aluminum door, frame and window wall market ▪ Adds glaziers as additional distribution channel ▪ Complementary to our door business with good margins ▪ Total sales 110 MSEK ▪ Accretive to EPS from start 16
Slide 17: Division - EMEA
Division - EMEA SALES share of ▪ Market improved but hesitant Group total % ▪ Growth in Scandinavia, Finland, Benelux, UK, Israel and Africa 31 ▪ France, Germany and Eastern Europe are stable ▪ Southern Europe in continued decline ▪ Good leverage from volume increase EBIT % 19 ▪ Operating margin (EB
Slide 18: Division - Americas
Division - Americas SALES share of ▪ Stable sales development Group total % ▪ Good growth of high security, elmech and residential 21 ▪ Positive sales of mechanical locks and security doors ▪ Negative sales in Canada, Mexico and Brazil ▪ Improved margin from efficiency gains EBIT % ▪ Operating margi
Slide 19: Division - Asia Pacific
Division - Asia Pacific SALES share of ▪ Strong growth in Korea and South East Asia Group total % including India 11 ▪ Weak growth in China ▪ Decline in Australia and New Zeeland ▪ Negative mix and Chinese cost pressure EBIT % 17 ▪ Operating margin (EBIT) 15 13 = Volume 3% 11 9 = Raw material 7 5 -
Slide 20: Division - Global Technologies
Division - Global Technologies SALES ▪ HID share of Group total % – Good growth of Access control and secure issuance – Strong sales of Identification Technology 14 – Large project orders dilutes ▪ Hospitality – Good growth in all market regions – Several gains of important key accounts EBIT % ▪ Ope
Slide 21: Division - Entrance Systems
Division - Entrance Systems SALES share of ▪ Good growth of Besam, Crawford and FlexiForce Group total % ▪ Service sales in steady growth 23 ▪ Ditec declining due to southern Europe ▪ Albany and Dynaco consolidated in the quarter ▪ Sales +130% and EBIT +94% EBIT % ▪ Operating margin (EBIT) 19 18 + V
Slide 22: Financial highlights Q1 2012
Financial highlights Q1 2012 1st Quarter Twelve months MSEK 2011 2012 Change 2010 2011 Change Sales 8,699 10,839 +25% 36,823 41,786 +13% Whereof Organic growth +3% +4% Acquired growth +19% +17% FX-differences +149 +3% -2,309 -8% Operating income (EBIT) *) 1,377 1,655 +20% 6,046 6,624 +10% EBIT-margi
Slide 23: Bridge Analysis – Jan-Mar 2012
Bridge Analysis – Jan-Mar 2012 MSEK 2011 Organic Currency Acq/Div 2012 Jan-Mar Jan-Mar 3% 3% 19% 25% Revenues 8,699 294 149 1,696 10,839 EBIT 1,377 92 19 167 1,655 % 15.8% 31.1% 12.9% 9.9% 15.3% Dilution / Accretion 0.5% 0.0% -1.0% 23
Slide 24: P&L – Components as % of sales
P&L – Components as % of sales 2011 2012 2012 Q1 Q1 excluding Q1 acquisitions ▪ Direct material 32.9% 33.2% 32.7% ▪ Conversion costs 26.2% 25.4% 27.6% ▪ Gross Margin 40.9% 41.4% 39.7% ▪ S, G & A 25.1% 25.1% 24.4% ▪ EBIT 15.8% 16.3% 15.3% 24
Slide 25: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months 3 000 Growth 7 500 7 000 2 500 Recession 6 500 2 000 6 000 5 500 1 500 Growth 5 000 1 000 4 500 4 000 500 3 500 0 3 000 2005 2006 2007 2008 2009 2010 2011 2012 Quarter Cash Rolling 12-months EBT Rolling 12 months 25
Slide 26: Gearing % and net debt MSEK
Gearing % and net debt MSEK Net Debt Gearing 30 000 120 Debt/Equity 64 (103) 25 000 100 20 000 80 15 000 60 10 000 40 5 000 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 Net debt Gearing Net debt/EBITDA 2.0 (3.0) 26
Slide 27: Conclusions Q1 2012
Conclusions Q1 2012 ▪ Strong total growth by 25% with 3% organic ▪ Good development in mature markets – Many new products and projects wins ▪ Slower emerging markets ▪ Good evolution in acquired companies ▪ Footprint program gives good savings ▪ Strong profit improvement 27
Slide 28: Q&A
Q&A 28