Assa Abloy Ab Class B · OMXSTO:ASSA_B

Assa Abloy Ab Class B — Q1 2021 Earnings Presentation

31 slides from Assa Abloy Ab Class B's earnings presentation, 2021

  1. Slide 1: Q1 interim report 2021

    ASSA ABLOY Q1 interim report 2021 Public

  2. Slide 2: Back to good organic growth

    Back to good organic growth  Good organic sales development – Significant sales growth in APAC – Very strong sales growth in Entrance Systems – Strong sales growth in EMEIA – Stable sales in Americas – Sales declined in Global Technologies  Strong improvement of EBIT-margin – Very strong volume le

  3. Slide 3: Q1 2021 figures in summary

    Q1 2021 figures in summary  Sales MSEK 21,805 -2% 23 000 Sales EBIT 4 500 – +4% organic -2% +16% – +4% acquired and divested 4 000 – - 10% currency 22 000 3 500  EBITA-margin 15.3% (13.0%) 21 000 3 000  EBIT-margin 14.6% (12.4%) 3 187 20 000 2 751 2 500  EBIT MSEK 3,187 +16% 19 000 2 000  EPS S

  4. Slide 4: Sales by region Jan-Mar 2021

    Sales by region ASSA ABLOY 100 8 4 Emerging markets 13 15 10 Jan-Mar 2021 41 12 4 43 3 2 8 22 16 1 4 2 3 26 21 4 6 -2 Change in local currencies Organic change Share of sales, % QTD 2021 vs. QTD 2020, % QTD 2021 vs. QTD 2020, % Emerging markets comprise follows IMF’s definition as per 2018-12-31 4 P

  5. Slide 5: Market highlights

    Market highlights  Project wins  Several larger distribution centers in Europé and North America  Locks and architectural hardware for metro station in China  Major electricity vertical contracts in Middle East for critical infrastructure  Product launches  Facial recognition solution for cons

  6. Slide 6: FX adjusted sales growth

    FX adjusted sales growth % MSEK 20 95 000 15 90 000 10 85 000 5 80 000 0 75 000 -5 70 000 -10 -15 65 000 -20 60 000 2016 2017 2018 2019 2020 2021 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6 Public

  7. Slide 7: Operating margin

    Operating margin % Run rate: EBIT-margin 14.2% (15.2%) % 19 19 18 18 17 Long term target range (average) 17 16 16 15 15 14 14 13 13 12 12 11 11 10 10 9 9 8 8 2016 2017 2018 2019 2020 2021 Quarter EBIT Rolling 12-months EBITA* Rolling 12-months Excluding items affecting comparability. *) Operating ma

  8. Slide 8: Operating profit

    Operating profit MSEK +16% MSEK, 12 months 4 500 vs 16 000 Q1 LY 4 000 14 000 3 500 12 000 3 000 10 000 2 500 8 000 2 000 6 000 1 500 4 000 1 000 500 2 000 0 0 2016 2017 2018 2019 2020 2021 Quarter Rolling 12-months *) Excluding China write-downs, restructuring items and a positive revaluation of ag

  9. Slide 9: Acquisitions

    Acquisitions  Active pipeline – 3 acquisitions completed in Q1 ** * – Acquired annualized sales of MSEK 200 ** Invengo Textile Services * Traka distributer in Iberia 9 Public

  10. Slide 10: TSL, UK

    TSL, UK  Reinforces current RFID offering  Sales of MSEK 30 in 2020  Global provider of RFID handheld readers  Accretive to EPS from start 10 Public

  11. Slide 11: Opening Solutions EMEIA

    Opening Solutions 24% EMEIA of Group sales  Organic sales +5% 6 000 20% – Very strong sales growth in the UK, France, Eastern Europe, Middle East/Africa/India 5 500 18% – Good sales growth in Finland and South Europe 5 000 16% – Stable sales in Germany and Benelux 4 500 14% – Sales declined in Scan

  12. Slide 12: Opening Solutions Americas

    Opening Solutions 22% of Americas Group sales  Organic sales 0% 6 500 24% – Very strong sales growth in US Smart Residential, US Residential and Latin America 6 000 23% – Stable sales in Electromechanical Solutions and Canada 5 500 22% – Sales declined in Security Doors and Architectural 5 000 21%

  13. Slide 13: Opening Solutions Asia Pacific

    Opening Solutions 7% Asia Pacific of Group sales  Organic sales +23% 3 000 20% – Very strong sales growth in China, South Korea and South East Asia 15% – Sales declined in Pacific 2 500 10% 5%  Operating margin 4.4% (-9.6%) 2 000 0% – Very strong leverage (1330 bps) despite negative mix  Recovery

  14. Slide 14: Global Technologies

    Global Technologies 16% of Group sales  Organic sales declined –9% 4 500 24% – Good sales growth in Secure Issuance 4 000 22% – Sales declined in PACS and Identification Technology – Significant sales decline in all other business areas 3 500 20% 3 000 18% – Significant sales decline in Global Solu

  15. Slide 15: Entrance Systems

    Entrance Systems 31% of Group sales  Organic sales +11% 8 500 18% – Very strong growth in Perimeter Security and Residential 8 000 17% – Strong sales growth in Industrial and Pedestrian 7 500 16% 7 000 – Strong sales growth in service 6 500 15% 6 000  Operating margin 14.6% (12.2%) 14% – Very stro

  16. Slide 16: Financial summary, Q1 2021

    FX & acquisition ‘run-rate’ effects in Q2 2021 Financial summary, Q1 2021 (31 March 2021): SALES FX: -7% M&A: +4% January-March SEK M 2020 2021 Change Sales 22,173 21,805 -2% - Organic growth -759 827 +4% - Acquired net growth 648 866 +4% - FX-differences 780 -2,060 - 10% Operating income (EBIT) 2,7

  17. Slide 17: Bridge analysis – Q1 2021

    Bridge analysis – Q1 2021 MSEK Q1 2020 Organic Currency Acq/Div Q1 2021 Growth 4% -10% 4% -2% Sales 22,173 827 -2,060 866 21,805 Operating profit* 2,751 657 -261 40 3,187 Operating margin, %* 12.4% 79.5% 12.7% 4.6% 14.6% Dilution/accretion 2.6 pts 0.0 pts -0.4 pts Sales decreased MSEK -368 due to FX

  18. Slide 18: Cost breakdown as % of sales January - March

    Cost breakdown as % of sales January - March QTD 2021 % QTD 2020 excl. acq/div Δ QTD 2021 Direct material -33.9% -34.4% -0.5 pts -34.0% Conversion cost -25.6% -25.3% +0.3 pts -26.0% Gross margin 40.5% 40.3% -0.2 pts 40.0% S, G & A -28.1% -25.3% +2.8 pts -25.4% EBIT* 12.4% 15.0% +2.6 pts 14.6% • Oper

  19. Slide 19: Operating cash flow, MSEK

    Operating cash flow, MSEK Quarter 12 months 6 000 20 000 12 months cash flow / EBT = 137% 18 000 5 000 16 000 14 000 4 000 12 000 3 000 10 000 8 000 2 000 6 000 4 000 1 000 2 000 0 0 2016 2017 2018 2019 2020 2021 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 months, MSEK Excluding MFP re

  20. Slide 20: Gearing % and net debt, MSEK

    Gearing % and net debt, MSEK Net debt/EBITDA** 1.8 (2.0) Net debt Gearing 40 000 80 Debt/Equity 46% (58%) 35 000 70 30 000 60 25 000 50 20 000 40 15 000 30 10 000 20 5 000 10 0 0 2016 2017 2018 2019* 2020 Net debt, MSEK Gearing, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding MFP restructu

  21. Slide 21: Earnings per share, SEK

    Earnings per share, SEK Quarter 12 months 2,50 EPS Q1 +21% 10,00 2,25 9,00 2,00 8,00 1,75 7,00 1,50 6,00 1,25 5,00 1,00 4,00 0,75 3,00 0,50 2,00 2016 2017 2018 2019 2020 Quarter, SEK Rolling 12 months, SEK Excluding restructuring items, impairment of intangible assets in China and a positive revalua

  22. Slide 22: Conclusions

    Conclusions  Good organic sales growth – Organic sales up 4%  Operating margin at 15%, excluding M&A  Very strong cash flow up 118% vs. LY  Re-accelerate profitable growth  Virtual Capital Markets Day 26 May 22 Public

  23. Slide 23: Q&A

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

  24. Slide 24: Appendix

    Appendix Public

  25. Slide 25: Cost breakdown as % of sales

    Cost breakdown as % of sales QTD 2021 YTD 2020 excl. excl. % QTD 2020 acquisitions Δ QTD 2021 YTD 2019 acquisitions Δ YTD 2020* Direct material -33.9% -34.4% -0.5 pts -34.0% -36.0% -35.1% +0.9 pts -35.2% Conversion cost -25.6% -25.3% +0.3 pts -26.0% -23.9% -24.6% -0.7 pts -25.0% Gross margin 40.5% 4

  26. Slide 26: Opening Solutions EMEIA's bridge

    Opening Solutions EMEIA’s bridge MSEK Q1 2020 Organic Currency Acq/Div Q1 2021 Growth 5% -6% 1% 0% Sales 5,044 243 -277 47 5,058 Operating income 607 144 1 3 755 Operating margin, % 12.0% 59.1% -0.3% 7.3% 14.9% Dilution/accretion 2.2 pts 0.8 pts -0.1 pts 12 months figures Sales 20,980 18,995 EBIT 3,

  27. Slide 27: Opening Solutions Americas' bridge

    Opening Solutions Americas’ bridge MSEK Q1 2020 Organic Currency Acq/Div Q1 2021 Growth 0% -14% 1% -13% Sales 5,271 12 -707 28 4,604 Operating income 1,048 40 -135 1 955 Operating margin, % 19.9% 330.5% 19.1% 3.1% 20.7% Dilution/accretion 0.8 pts 0.1 pts -0.1 pts 12 months figures Sales 23,131 18,34

  28. Slide 28: Opening Solutions Asia Pacific's bridge

    Opening Solutions Asia Pacific’s bridge MSEK Q1 2020 Organic Currency Acq/Div Q1 2021 Growth 23% -7% -4% 12% Sales 1,588 332 -84 -62 1,773 Operating income -152 207 18 5 78 Operating margin, % -9.6% 62.4% -21.4% -8.3% 4.4% Dilution/accretion 13.3 pts 0.3 pts 0.4 pts 12 months figures Sales 10,057 9,

  29. Slide 29: Global Technologies' bridge

    Global Technologies’ bridge MSEK Q1 2020 Organic Currency Acq/Div Q1 2021 Growth -9% -10% 3% -16% Sales 3,933 -320 -408 97 3,301 Operating income 563 -12 -85 7 472 Operating margin, % 14.3% 3.7% 20.9% 6.9% 14.3% Dilution/accretion 0.9 pts -0.7 pts -0.2 pts 12 months figures Sales 16,007 13,527 EBIT

  30. Slide 30: Entrance Systems' bridge

    Entrance Systems’ bridge MSEK Q1 2020 Organic Currency Acq/Div Q1 2021 Growth 11% -12% 12% 11% Sales 6,727 624 -608 756 7,499 Operating income 821 311 -61 24 1,096 Operating margin, % 12.2% 49.9% 10.0% 3.1% 14.6% Dilution/accretion 3.2 pts 0.5 pts -1.3 pts 12 months figures Sales 26,357 29,095 EBIT

  31. Slide 31: Thank you

    Thank you assaabloy.com Public

Assa Abloy — Q1 2021 Earnings Presentation on 6ix