Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q3 2013 Earnings Presentation
29 slides from Assa Abloy Ab Class B's earnings presentation, 2013
Slide 1: Q3 Report 2013
Q3 Report 2013 1
Slide 2: ASSA ABLOY overview Jan-Sep 2013
ASSA ABLOY overview Jan-Sep 2013 Financials (SEK bn) Sales by product group Sep 2013 Net sales 35.2 Doors Electro- mechanical EBIT 5.7 18% locks 24% Op cash flow 4.3 Mechanical locks Entrance Net debt 17.4 33% Automation Market cap 110 25% Sales by region Sep 2013 Leading market positions 5,4 43% 32
Slide 3: Financial highlights Q3 2013
Financial highlights Q3 2013 Good Growth in all parts except Europe – Strong growth in Americas, APAC and Global Tech – EMEA bottoming – ESD slightly negative – Important gains of efficiency and savings – Preparation for new Manufacturing footprint Sales 12,131 MSEK +5% +3% organic, +3% acquired
Slide 4: Financial highlights Jan-Sep 2013
Financial highlights Jan-Sep 2013 Good performance in a tough market Sales 35,239 MSEK +2% +2% organic, +4% acquired growth, -4% currency EBIT 5,722 MSEK +5% Currency effect -215 MSEK EPS 10.76 SEK +6% Forecasted tax rate 25% 4
Slide 5: Market highlights
Market highlights Strong sales of new SE-reader – Multi technology, virtual keys, speed of reading Most innovative product awards ASIS, USA – 4 out of 10 first prices out of 600 exhibitors Success for Nexgen e-cylinder technology – Several large orders for vending and parking Yale DDL chosen
Slide 6: Group sales in local currencies Jan-Sep
Group sales in local currencies Jan-Sep 2013 43 -3 32 +17 17 +11 1 +4 2 +12 5 +6 Share of Group sales 2013 YTD, % Year-to-date vs previous year, % 6
Slide 7: Sales growth, currency adjusted
Sales growth, currency adjusted Sales MSEK Growth, % 2013 Q3 +6% 48 000 Organic +3% 24 46 000 21 44 000 Acquired +3% 18 42 000 15 40 000 12 9 38 000 6 36 000 3 34 000 0 32 000 -3 30 000 -6 -9 28 000 -12 26 000 -15 2006 2007 2008 2009 2010 2011 2012 2013 Organic Growth Acquired Growth Sales in Fixed
Slide 8: Operating income (EBIT), MSEK
Operating income (EBIT), MSEK Quarter 12-months 2 200 8 000 2 100 Run rate 7,751 MSEK (7,353) +5% 2 000 7 500 1 900 7 000 1 800 1 700 6 500 1 600 6 000 1 500 1 400 5 500 1 300 5 000 1 200 1 100 4 500 1 000 4 000 900 800 3 500 2006 2007 2008 2009 2010 2011 2012 2013 Quarter Rolling 12-months 8
Slide 9: Operating margin (EBIT), %
Operating margin (EBIT)*, % EBIT Margin Run rate 2013 16.3% (15.8) 17,0 Long term target range (average) 16,0 15,0 14,0 13,0 12,0 2006 2007 2008 2009 2010 2011 2012 2013 Quarter Rolling 12-months 2013 Dilution QTD 0.1% *) Excluding restructuring costs. YTD 0.0% 9
Slide 10: Manufacturing footprint
Manufacturing footprint Status manufacturing footprint programs 2006-2011: – 56 factories closed to date, 12 to go – 68 factories converted to assembly, 7 to go – 28 offices closed, 1 to go Personal reduction 7,084p and 451p remains New MFP program planned in Q4 – Closure of 30 entities – Payb
Slide 11: Margin highlights Q3 2013
Margin highlights Q3 2013 EBIT margin 17.2% (16.7) 0.5% + Volume increase +2%, price +1% + Margin expansion 0.5% = Organic growth + Manufacturing footprint + Capacity adjustments - Dilution from Currency -0.2% + Acquisitions +0.1% 11
Slide 12: Acquisitions 2013
Acquisitions 2013 Fully active pipeline 10 acquisitions done in 2013 Annualized sales 2,300 MSEK Added sales 5% 12
Slide 13: Ameristar, USA
Ameristar, USA Turnover of 1,100 MSEK with 650 employees The leading US manufacturer of perimeter security solutions Complements the ASSA ABLOY offering of security solutions in the American market Reinforces the market leadership in North America Accretive to EPS 13
Slide 14: Mercor, Poland
Mercor, Poland Turnover of 370 MSEK with 550 employees Leading Polish manufacturer of security and fire doors Offers complete door opening solutions Will significantly reinforce the market position in Eastern Europe Accretive to EPS 14
Slide 15: Xinmao, China
Xinmao, China Turnover of 190 MSEK with 360 employees Market leader in Heilongjiang of fire rated & security doors Supply of total hardware package & installation Good synergies on products and market coverage Accretive to EPS 15
Slide 16: Huasheng, China
Huasheng, China Turnover of 210 MSEK with 460 employees Market leader in Shandong of fire rated & security doors Supply of total hardware package & installation Good synergies on products and market coverage Accretive to EPS 16
Slide 17: Division - EMEA
Division - EMEA SALES Bottoming with slight growth share of Group total % Growth in Scandinavia, Finland, Germany, Italy, Africa and Eastern Europe 27 Stable in the UK Decline in France, Holland, Iberia and Israel JPM factory France closed EBIT % Operating margin (EBIT) 19 18 = Organic 1
Slide 18: Division - Americas
Division - Americas SALES share of Strong growth in AHW, Electromechanical, Residential Group total % and South America 21 Growth in Doors and High security Slightly negative in Mexico and Canada Continued investments in R&D and front end Operating margin (EBIT) EBIT % 22 + Organic +7% 21
Slide 19: Division - Asia Pacific
Division - Asia Pacific SALES share of Strong growth in Australia, New Zealand and Korea Group total % Good growth in China 14 Decline in South East Asia Profit improvement coming from overall volume growth and cost control in China EBIT % Operating margin (EBIT) 17 15 = Organic +6% 13 11
Slide 20: Division - Global Technologies
Division - Global Technologies SALES HID share of Group total % – Good growth of Access control and Secure Issuance – Strong growth in Project sales 14 – Negative in Government ID and stable in IDT – Strong profit improvement Hospitality – Good growth from the renovation market – Solid profit de
Slide 21: Division - Entrance Systems
Division - Entrance Systems SALES Europe weak while Americas & Asia are growing share of Group total % Stable sales in Door automatics and Industrial doors 24 Negative sales of High speed doors and dockings Continued decline in Ditec due to weak southern Europe Sales +9% and EBIT +10% EBIT
Slide 22: Financial highlights Q3 2013
Financial highlights Q3 2013 3rd Quarter Nine months MSEK 2012 2013 Change 2012 2013 Change Sales 11,545 12,131 5% 34,380 35,239 +2% Whereof Organic growth +3% +2% Acquired growth +3% +4% FX-differences -133 -1% -1,021 -4% Operating income (EBIT) 1,932 2,090 +8% 5,471 5,722 +5% EBIT-margin (%) 16.7
Slide 23: Bridge Analysis – Jul-Sep 2013
Bridge Analysis – Jul-Sep 2013 MSEK 2012 Organic Currency Acq/Div 2013 Jul-Sep Jul-Sep 3% -1% 3% 5% Revenues 11,545 362 -133 358 12,131 EBIT 1,932 136 -56 78 2,090 % 16.7% 37.5% 41.9% 21.8% 17.2% Dilution / Accretion 0.6% -0.2% 0.1% 23
Slide 24: P&L – Components as % of sales
P&L – Components as % of sales 2012 2013 2013 Q3 Q3 excluding Q3 acquisitions Direct material 35.1% 34.9% 35.2% Conversion costs 25.0% 25.0% 24.9% Gross Margin 39.9% 40.1% 39.9% S, G & A 23.2% 23.0% 22.7% EBIT 16.7% 17.1% 17.2% 24
Slide 25: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months 3 500 8 000 7 500 3 000 7 000 2 500 6 500 2 000 6 000 5 500 1 500 5 000 1 000 4 500 4 000 500 3 500 0 3 000 2006 2007 2008 2009 2010 2011 2012 2013 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 25 000 63 (72) 100 20 000 80 15 000 60 10 000 40 5 000 20 0 0 2006 2007 2008 2009 2010 2011 2012 2013 Net debt Gearing Net debt/EBITDA *) 2006-2011 Not restated for changed pension accounting principles. 2.0 (2.1) 26
Slide 27: Earnings per share, SEK
Earnings per share, SEK Quarter SEK 12-months 15,00 4,00 14,00 3,50 13,00 3,00 12,00 2,50 11,00 2,00 10,00 9,00 1,50 8,00 1,00 7,00 0,50 6,00 0,00 5,00 2006 2007 2008 2009 2010 2011 2012 2013 Quarter Rolling 12-months *) Excluding restructuring costs. **) 2006-2011 Not restated for changed pension a
Slide 28: Conclusions Q3 2013
Conclusions Q3 2013 Good growth in all parts except Europe Strong growth in Americas, APAC and Global Tech EMEA bottoming and ESD slightly negative Strong efficiency improvements supports profit Preparation for new Manufacturing Footprint Strong cash flow and record EBIT of 2,090 MSEK +8
Slide 29: Q&A
Q&A 29