Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q1 2015 Earnings Presentation
28 slides from Assa Abloy Ab Class B's earnings presentation, 2015
Slide 1: Q1 Report 2015
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q1 Report 2015
Slide 2: ASSA ABLOY overview Jan-Mar 2015
ASSA ABLOY overview Jan-Mar 2015 Financials (SEK bn) Sales by product group Mar 2015 Net sales 15.3 Electro- Doors mechanical EBIT 2.3 18% locks 25% Op cash flow 0.5 Mechanical locks Net debt 25.2 30% Entrance Automation Market cap 190 27% Sales by region Mar 2015 Leading market positions (EUR B) 6,
Slide 3: Financial highlights Q1 2015
Financial highlights Q1 2015 Good start of the year – Strong growth in Americas, Global Tech and ESD – Good growth in EMEA – Weak in APAC due to Chinese market and credit policy Sales 15,252 MSEK +24% 5% organic, 3% acquired growth, 16% currency EBIT 2,329 MSEK +25% Currency effect 249 MSEK
Slide 4: Market highlights
Market highlights Record awards at ISC West – Aperio R100, Aperio M100 & Ecopower power supply – Electrified latch & GL1 Electrified Gate Lock – HID Mobile Access & Active ID tap authentication Good development in consumer business – Yale drives growth in EMEA, Americas and APAC – Combination of
Slide 5: Group sales in local currencies Jan-Mar 2015
Group sales in local currencies Jan-Mar 2015 Emerging markets 23% (22) of sales 40 +3 39 +9 14 +12 1 +5 2 +43 4 +8 Share of Group sales 2015 YTD, % Year-to-date vs previous year, % 5
Slide 6: Sales growth, currency adjusted
Sales growth, currency adjusted Sales MSEK Growth % 2015 Q1 +8% 67 000 Organic +5% 27 64 000 Acquired +3% 24 61 000 21 58 000 18 55 000 15 52 000 12 9 49 000 6 46 000 3 43 000 0 40 000 -3 -6 37 000 -9 34 000 -12 31 000 -15 2008 2009 2010 2011 2012 2013 2014 2015 Orga nic Growth Acqu ired Growth Sale
Slide 7: Operating income (EBIT), MSEK
Operating income (EBIT), MSEK Quarter 12-months 2 700 Run rate 9,728 MSEK (8,118) +20% 10 000 2 500 9 500 9 000 2 300 8 500 2 100 8 000 1 900 7 500 1 700 7 000 6 500 1 500 6 000 1 300 5 500 1 100 5 000 900 4 500 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Rolling 12-months 7
Slide 8: Operating margin (EBIT), %
Operating margin (EBIT), % EBIT Margin Run rate 2015 16.3% (16.3) 17,0 16,0 15,0 14,0 13,0 12,0 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Rolling 12-months 2015 Dilution Q1 -0.1% 2015 -0.1% 8
Slide 9: Manufacturing footprint
Manufacturing footprint Status manufacturing footprint programs 2006-2013: – 69 factories closed to date, 11 to go – 84 factories converted to assembly, 5 to go – 38 offices closed, 9 to go Personal reduction QTD 206p and total 9,620p 364p in further planned reductions 845 MSEK of the provis
Slide 10: Margin highlights Q1 2015
Margin highlights Q1 2015 EBIT margin 15.3% (15.1) +0.2% + Volume increase 4%, price 1% + Margin increase +0.2% + Organic growth + Manufacturing footprint - Currency -0.3% - Acquisitions -0.1% Good leverage from growth 10
Slide 11: Acquisitions 2015
Acquisitions 2015 Fully active pipeline 4 acquisitions done in 2015 Annualized sales 750 MSEK Added sales 1.5% 11
Slide 12: Quantum Secure, USA
Quantum Secure, USA Bookings of 400 MSEK with 175 employees Provider of advanced identity management systems Brings compliance in highly- regulated industries Management of identities across multiple sites Neutral to EPS 12
Slide 13: MSL, Switzerland
MSL, Switzerland Turnover of 180 MSEK with 106 employees Leading supplier of Swiss mortice locks Complets Swiss total door opening solutions Adds important market coverage Accretive to EPS 13
Slide 14: Teamware, Malaysia
Teamware, Malaysia Turnover of 240 MSEK with 120 employees Creates firm market leadership in fast growing Malaysia Complimentary channels and products Allows specification Accretive to EPS 14
Slide 15: Division - EMEA
Division - EMEA SALES Strong growth in Scandinavia, Finland, Eastern Europe share of and Africa Group total % Good growth in UK and Iberia 25% Flat in Germany and Israel Negative in Benelux, France and Italy Strategic move in Switzerland EBIT % 19 Operating margin (EBIT) 18 17 + Organic
Slide 16: Division - Americas
Division - Americas SALES share of Strong growth in AHW, Doors, El-mech, Residential, Group total % Mexico and South America 20 24% Stable trend in High security and Canada Important moves in South America Strong demand from Home Automation EBIT % Operating margin (EBIT) 23 22 + Organic 8%
Slide 17: Division - Asia Pacific
Division - Asia Pacific SALES Strong growth in Australia, South Asia and North Asia share of Group total % Good growth in New Zealand 14 11% China – Strong decline due to weak market and credit policy – Government incentives for construction – Many companies for sale EBIT % Operating margin
Slide 18: Division - Global Technologies
Division - Global Technologies SALES HID share of Group total % – Strong growth in Gov-Id, IDT (inlays) and Project sales – Good growth in IAM (Identity and access management) 13 14% – Austin move completed Hospitality – Strong growth – Strong profit EBIT % 21 Operating margin (EBIT) 20 19 + O
Slide 19: Division - Entrance Systems
Division - Entrance Systems SALES Strong growth in Door Automatics, High Speed Doors, share of Group total % Flexiforce, Amarr and 4Front Flat in Industrial EU and decline in Residential EU and 28 26% Ditec Europe is tough but improving with growing service EBIT % Operating margin (EBIT) 18
Slide 20: Financial highlights Q1 2015
Financial highlights Q1 2015 1st Quarter Twelve months MSEK 2014 2015 Change 2013 2014 Change Sales 12,305 15,252 +24% 48,481 56,843 +17% Whereof Organic growth +5% +3% Acquired growth +3% +9% FX-differences +1,892 +16% +2,138 +5% Operating income (EBIT) 1,857 2,329 +25% 7,923 9,257 +17% EBIT-margin
Slide 21: Bridge Analysis – Jan-Mar 2015
Bridge Analysis – Jan-Mar 2015 MSEK 2014 Organic Currency Acq/Div 2015 Jan-Mar Jan-Mar 5% 16% 3% 24% Revenues 12,305 680 1,892 376 15,252 EBIT 1,857 186 249 38 2,329 % 15.1% 27.3% 13.1% 10.1% 15.3% Dilution / Accretion 0.6% -0.3% -0.1% 21
Slide 22: P&L Components as % of sales Jan – Mar 2015
P&L Components as % of sales Jan – Mar 2015 2014 2015 2015 Q1 YTD excluding Q1 acquisitions Direct material 34.6% 35.5% 35.6% Conversion costs 26.5% 25.4% 25.3% Gross Margin 38.9% 39.1% 39.1% S, G & A 23.8% 23.7% 23.8% EBIT 15.1% 15.4% 15.3% 22
Slide 23: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12-months 4 500 9 500 4 000 9 000 3 500 8 500 8 000 3 000 7 500 2 500 7 000 2 000 6 500 1 500 6 000 1 000 5 500 500 5 000 0 4 500 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Cash Rolling 12-months EBT Rolling 12 months 23
Slide 24: Gearing % and net debt MSEK
Gearing % and net debt MSEK Net Debt Gearing 30 000 120 Debt/Equity 64 (72) 25 000 100 20 000 80 15 000 60 10 000 40 5 000 20 0 0 2008 2009 2010 2011 2012 2013 2014 2015 Net debt Gearing Net debt/EBITDA *) 2008-2011 Not restated for changed pension accounting principles. 2.3 (2.3) 24
Slide 25: Earnings per share, SEK
Earnings per share, SEK Quarter SEK 12-months 5,50 20,00 Dividend proposal 2015: 6.50 SEK (5.70) 5,00 Stock split proposal 3:1 4,50 18,00 4,00 3,50 16,00 3,00 14,00 2,50 2,00 12,00 1,50 1,00 10,00 0,50 0,00 8,00 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Rolling 12-months Excluding restructurin
Slide 26: Conclusions Q1 2015
Conclusions Q1 2015 Strong growth by 24% with 5% organic – Strong growth in Americas, Global Tech and ESD – Good growth in EMEA – Decline in APAC Good acquisition pipeline Emerging markets 23% (22) Strong EBIT improvement of 25% Strong EPS improvement by 28% 26
Slide 27: Q&A
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q&A
Slide 28: ASSA ABLOY
ASSA ABLOY