Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q3 2015 Earnings Presentation
28 slides from Assa Abloy Ab Class B's earnings presentation, 2015
Slide 1: Q3 Report 2015
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q3 Report 2015
Slide 2: ASSA ABLOY overview Jan-Sep 2015
ASSA ABLOY overview Jan-Sep 2015 Financials (SEK bn) Sales by product group Sep 2015 Net sales 49.8 Doors Electro- EBIT 8.0 20% mechanical locks 25% Op cash flow 5.3 Mechanical Net debt 25.1 locks Entrance 29% Automation Market cap 170 26% Sales by region Sep 2015 Leading market positions (EUR B) 37
Slide 3: Financial highlights Q3 2015
Financial highlights Q3 2015 Continued positive development – Strong growth in Americas, EMEA and Entrance – Flat in Global tech – Negative in APAC due to weak Chinese market Sales 17,465 MSEK +19% 3% organic, 4% acquired growth, 12% currency EBIT 2,970 MSEK +19% Currency effect 238 MSEK EPS
Slide 4: Financial highlights Jan-Sept 2015
Financial highlights Jan-Sept 2015 A strong year – Strong growth in Americas, Global Tech and Entrance – Good growth in EMEA – Negative growth in APAC due to China Sales 49,799 MSEK +21% 4% organic, 3% acquired growth, 14% currency EBIT 8,041 MSEK +22% Currency effect 789 MSEK EPS 5.02 SEK +
Slide 5: Market highlights
Market highlights Multiple innovation awards at ASIS – Quantum Secure Predictive security, – Active ID Tap – Aperio cabinet lock for data servers – Ecopower supply, EcoFlex electrified mortise Lock US Green Card program – Contract of 88 MUSD over five-year period Accentra, solution for multi f
Slide 6: Google's NEST partners with Yale
Google’s NEST partners with Yale Seamlessly connected to Google’s NEST Passcodes for family, friends & visitors Cloud based and managed through apps Real time track and trace 6
Slide 7: Group sales in local currencies Jan-Sep 2015
Group sales in local currencies Jan-Sep 2015 Emerging markets 25% (24) of sales 37 +5 39 +7 17 +9 1 +8 2 +24 4 +7 Share of Group sales 2015 YTD, % Year-to-date vs previous year, % 7
Slide 8: Sales growth, currency adjusted
Sales growth, currency adjusted Sales MSEK Growth % 2015 Q3 +7% 67 000 Organic +3% 27 64 000 Acquired +4% 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 Organic Growth Acquired Growth Sales
Slide 9: Operating income (EBIT), MSEK
Operating income (EBIT), MSEK Quarter 12-months 3 000 Run rate 10,722 MSEK (8,777) +22% 11 000 2 800 10 500 10 000 2 600 9 500 2 400 9 000 2 200 8 500 8 000 2 000 7 500 1 800 7 000 1 600 6 500 6 000 1 400 5 500 1 200 5 000 1 000 4 500 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Rolling 12-months
Slide 10: Operating margin, %
Operating margin, % EBIT Margin Run rate 2015 16.3% (16.2) 17 16 15 14 13 12 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Rolling 12-months 2015 Acquisitions Currency Q3 -0.1% -0.3% 2015 -0.1% -0.3% 10
Slide 11: Manufacturing footprint
Manufacturing footprint Status manufacturing footprint programs 2006-2013: – 72 factories closed to date, 6 to go – 84 factories converted to assembly, 25 to go – 39 offices closed, 10 to go Total personnel reduction in Q3: – 510 FTE and total 10,269 FTE 1,000 FTE to go for all programs 711
Slide 12: Margin highlights Q3 2015
Margin highlights Q3 2015 EBIT margin 17.0% (17.0) 0.0% + Volume increase 1.5%, price 1.5% + Margin flat +0.0% + Organic growth + Manufacturing footprint & other programs - Currency -0.3% - Acquisitions -0.1% 12
Slide 13: Acquisitions 2015
Acquisitions 2015 Fully active pipeline 11 acquisitions done in 2015 Annualized sales (1 850 MSEK) Added sales 3.3% 13
Slide 14: Nergeco, France
Nergeco, France Turnover of 350 MSEK with 150 employees High-speed door company, with complementary products Market leader in Southern Europe Strengthens service offering Accretive to EPS 14
Slide 15: Division – EMEA
Division – EMEA SALES Continues strong growth in Scandinavia, Finland and share of Eastern Europe Group total % Good growth in Africa, Italy, Iberia and Israel 23% Growth in UK Negative in Benelux and France Price increases implemented EBIT % 19 Operating margin (EBIT) 18 17 + Organic +5
Slide 16: Division - Americas
Division - Americas SALES share of Strong growth in AHW, Elmech, Canada, Mexico and Group total % South America Good growth in Residential 20 23% Flat in Doors Slightly negative in High security EBIT % 23 Operating margin (EBIT) 22 21 + Organic +6% 20 19 + Efficiency 18 2010 2011 2012 2013
Slide 17: Division - Asia Pacific
Division - Asia Pacific SALES Strong growth in New Zealand, South Asia and North share of Group total % Asia 14 16% Growth in Australia Continued decline in China – Efficiency measures mitigate profit pressure EBIT % Operating margin (EBIT) 18 16 - Organic -3% 14 + Personnel reduction in Chi
Slide 18: Division - Global Technologies
Division - Global Technologies SALES HID share of Group total % – Strong growth in IDT (inlays) and Quantum secure – Good growth in PACS, SI and IDA 13 12% – Flat in Project sales – Strong decline in Gov-Id and BIO solutions Hospitality – Strong growth – Strong profit EBIT % 21 20 Operating ma
Slide 19: Division - Entrance Systems
Division - Entrance Systems SALES Strong growth in Industrial EU, High Speed Doors and share of Group total % 4Front Good growth in Amarr 28 26% Growth in Door automatics and Flexiforce Flat in Ditec and Residential EU Strongly improving efficiency EBIT % 18 Operating margin (EBIT) 17 16
Slide 20: Financial highlights Q3 2015
Financial highlights Q3 2015 3rd Quarter Nine months MSEK 2014 2015 Change 2014 2015 Change Sales 14,727 17,465 +19% 40,996 49,799 +21% Whereof Organic growth +3% +4% Acquired growth +4% +3% FX-differences +1,661 +12% +5,561 +14% Operating income (EBIT) 2,499 2,970 +19% 6,575 8,041 +22% EBIT-margin
Slide 21: Bridge Analysis – Jul-Sep 2015
Bridge Analysis – Jul-Sep 2015 MSEK 2014 Organic Currency Acq/Div 2015 Jul-Sep Jul-Sep 3% 12% 4% 19% Sales 14,727 471 1,661 606 17,465 EBIT 2,499 152 238 81 2,970 % 17.0% 32.2% 14.3% 13.3% 17.0% Dilution / Accretion 0.4% -0.3% -0.1% 26
Slide 22: P&L Components as % of sales Jan – Sep 2015
P&L Components as % of sales Jan – Sep 2015 2014 2015 2015 YTD YTD excl YTD acquisitions Direct material 36.1% 36.4% 36.6% Conversion costs 25.2% 24.6% 24.5% Gross Margin 38.7% 39.0% 38.9% S, G & A 22.7% 22.8% 22.8% EBIT 16.0% 16.2% 16.1% 27
Slide 23: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12-months 4 500 10 500 4 000 10 000 9 500 3 500 9 000 3 000 8 500 2 500 8 000 7 500 2 000 7 000 1 500 6 500 1 000 6 000 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 28
Slide 24: Gearing % and net debt MSEK
Gearing % and net debt MSEK Net Debt Gearing Debt/Equity 30 000 120 63 (68) 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. 2.1 (2.3) 29
Slide 25: Earnings per share, SEK
Earnings per share, SEK Quarter SEK 12-months 2,00 Stock split 2015 3:1 7,00 1,80 6,50 6,00 1,60 5,50 1,40 5,00 1,20 4,50 1,00 4,00 3,50 0,80 3,00 0,60 2,50 0,40 2,00 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Rolling 12-months Restated for Stock split 3:1 2015. 30
Slide 26: Conclusions Q3 2015
Conclusions Q3 2015 Strong growth by 19% with 3% organic Emerging markets 25% (24) Strong EBIT +19% Strong EPS +18% Strong Cash flow +25% 31
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