Assa Abloy Ab Class B · OMXSTO:ASSA_B

Assa Abloy Ab Class B — Q1 2022 Earnings Presentation

30 slides from Assa Abloy Ab Class B's earnings presentation, 2022

  1. Slide 1: Q1 interim report 2022

    ASSA ABLOY Q1 interim report 2022

  2. Slide 2: A strong start to the year

    A strong start to the year  Organic sales development – Very strong sales growth in Americas, Entrance Systems and Global Technologies – Strong sales growth in EMEIA – Sales decline in APAC  Very strong EBIT improvement – Despite higher material and logistic costs, labor and component shortages 

  3. Slide 3: Q1 2022 figures in summary

    Q1 2022 figures in summary  Sales MSEK 26,591 +22% Sales EBIT – +14% organic +22% +26% – +0% acquired and divested 27,000 4,500 – +8% currency 26,000  EBITA-margin 15.6% (15.3%) 25,000 4,000 24,000 4,001  EBIT-margin 15.0% (14.6%) 23,000  EBIT MSEK 4,001 +26% 3,500 22,000  EPS SEK 2.57 +27% 21,

  4. Slide 4: Sales by region Jan-Mar 2022

    Sales by region ASSA ABLOY 100 14 14 Emerging markets 13 9 8 Jan-Mar 2022 37 6 9 48 24 22 7 -4 -6 1 20 17 3 25 23 4 12 10 Change in local currencies Organic change Share of sales, % QTD 2022 vs. QTD 2021, % QTD 2022 vs. QTD 2021, % Emerging markets follows IMF’s definition as per 2018-12-31 4

  5. Slide 5: Market highlights

    Market highlights  Project wins – Major critical infrastructure project for US water utility company in 24 states, including 8,000 locking points with recurring revenues – HID to deliver E-Passport services to a large African country – Launch of employee and tenant badges in Apple Wallet for 7 Worl

  6. Slide 6: FX adjusted sales growth

    FX adjusted sales growth % MSEK 30 105,000 25 100,000 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 2017 2018 2019 2020 2021 2022 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6

  7. Slide 7: Operating margin

    Operating margin % Run rate: EBIT-margin 15.0% (14.2%) % 19 19 18 18 17 17 Long term target range (average) 16 16 15 15 14 14 13 13 12 12 11 11 10 10 2017 2018 2019 2020 2021 2022 Quarter EBIT Rolling 12-months EBITA* Rolling 12-months Excluding items affecting comparability. *) Operating margin bef

  8. Slide 8: Operating profit

    Operating profit MSEK MSEK, 12 months 4,500 16,000 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 2017 2018 2019 2020 2021 2022 Quarter Rolling 12-months *) Excluding China write-downs, restructuring items, a positive revaluation of agta record 8

  9. Slide 9: Acquisitions

    Acquisitions  Active pipeline – 3 acquisitions signed in Q1 – Representing annualized sales of MSEK 250  Additional acquisitions in the pipeline – Arran Isle  Sales of MSEK 1,200  Transaction expected to close in Q2 – HHI  Sales of MSEK 13,700*  Transaction expected to close in 2022 * Fiscal y

  10. Slide 10: Opening Solutions EMEIA

    Opening Solutions 19% EMEIA of Group sales  Organic sales +7% – Very strong sales growth in Eastern Europe, Middle 6,000 18% East/Africa/India and Finland 5,500 16% – Strong sales growth in Scandinavia, DACH and South Europe 14% 5,000 – Good growth in France 12% – Stable sales growth in UK 4,500 10

  11. Slide 11: Opening Solutions Americas

    Opening Solutions 23% of Americas Group sales  Organic sales +22% 6,500 24% – Strong growth in Canada and very strong sales growth in all other product areas and regions 6,000 23% 5,500 22%  Operating margin 20.3% (20.7%) 5,000 21% – Very good operating leverage (20bps)  Excellent operational exe

  12. Slide 12: Opening Solutions Asia Pacific

    Opening Solutions 6% Asia Pacific of Group sales  Organic sales -2% 3,000 20% – Very strong sales growth in Pacific – Good sales growth in South-East Asia 15% – Stable sales growth in South Korea 2,500 10% – Significant sales decline in China 5% 2,000 0%  Operating margin 3.5% (4.4%) – Negative op

  13. Slide 13: Global Technologies

    Global Technologies 15% of Group sales  Organic sales +11% – Very strong sales growth in Identification Technology, 4,500 24% Citizen ID and Secure Issuance 4,000 22% – Strong sales growth in Extended Access – Stable sales growth in Identity & Access Solutions 3,500 20% – Sales decline in Physical

  14. Slide 14: Entrance Systems

    Entrance Systems 36% of Group sales  Organic sales +20% 10,000 18% – Very strong sales growth in Residential, Perimeter 9,500 Security and Industrial 17% 9,000 – Good sales growth in Pedestrian 8,500 16% 8,000 – Strong growth in service 7,500 15% 7,000  Operating margin 16.1% (14.6%) 6,500 14% – V

  15. Slide 15: Financial summary, Q1 2022

    FX & acquisition ‘run-rate’ effects in Q2 2022 Financial summary, Q1 2022 (31 March 2022): SALES FX: +9% M&A:+0% January-March SEK M 2021 2022 Change Sales 21,805 26,591 +22% - Organic growth 827 3,287 +14% - Acquired net growth 866 -52 +0% - FX-differences -2,060 1,551 +8% Operating income (EBIT) 3

  16. Slide 16: Bridge analysis – Q1 2022

    Bridge analysis – Q1 2022 MSEK Q1 2021 Organic Currency Acq/Div Q1 2022 Growth -2% 14% 8% 0% 22% Sales 21,805 3,287 1,551 -52 26,591 Operating profit 3,187 646 212 -43 4,001 Operating margin, % 14.6% 19.6% 13.6% 82.0% 15.0% Dilution/accretion 0.6 pts -0.1 pts -0.1 pts Sales increase driven by volume

  17. Slide 17: Cost breakdown as % of sales

    Cost breakdown as % of sales Jan-Mar QTD 2022 % QTD 2021 excl. acq/div Δ QTD 2022 Direct material -34.0% -36.6% -2.6 pts -36.7% Conversion cost -26.0% -24.0% +2.0 pts -23.9% Gross margin 40.0% 39.4% -0.6 pts 39.4% S, G & A -25.4% -24.2% +1.2 pts -24.4% EBIT 14.6% 15.2% +0.6 pts 15.0% *) Excluding re

  18. Slide 18: Operating cash flow, MSEK

    Operating cash flow, MSEK Quarter 12 months 6,000 12 months cash flow / EBT = 81% 20,000 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 2017 2018 2019 2020 2021 2022 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 months, MSEK Excluding MFP res

  19. Slide 19: Gearing % and net debt, MSEK

    Gearing % and net debt, MSEK Net debt/EBITDA** 1.5 (1.8) Net debt Net debt/Equity 38% (46%) Gearing 40,000 80 35,000 70 30,000 60 25,000 50 20,000 40 15,000 30 10,000 20 5,000 10 0 0 2017 2018 2019* 2020 2021 2022 Net debt, MSEK Gearing, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding MFP

  20. Slide 20: Earnings per share, SEK

    Earnings per share, SEK Quarter 12 months 3.00 11.00 2.75 10.00 2.50 9.00 2.25 8.00 2.00 7.00 1.75 6.00 1.50 5.00 1.25 4.00 1.00 0.75 3.00 0.50 2.00 2017 2018 2019 2020 2021 2022 Quarter, SEK Rolling 12 months, SEK Excluding restructuring items, impairment of intangible assets in China and a positiv

  21. Slide 21: Conclusions

    Conclusions  Strong profitable sales growth – Organic sales up 14%  Strong EBIT improvement – Operating profit up 26%  Challenging operating environment – High labor, material, logistic and energy costs – Component and labor shortages – Negative effects from the war in Ukraine 21

  22. Slide 22: Experience a safer and more open world

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

  23. Slide 23: Appendix

    Appendix

  24. Slide 24: Cost breakdown as % of sales

    Cost breakdown as % of sales QTD 2022 excl. % QTD 2021 acquisitions Δ QTD 2022 Direct material -34.0% -36.6% -2.6 pts -36.7% Conversion cost -26.0% -24.0% +2.0 pts -23.9% Gross margin 40.0% 39.4% -0.6 pts 39.4% S, G & A -25.4% -24.2% +1.2 pts -24.4% EBIT 14.6% 15.2% +0.6 pts 15.0% 24

  25. Slide 25: Opening Solutions EMEIA’s bridge

    Opening Solutions EMEIA’s bridge MSEK Q1 2021 Organic Currency Acq/Div Q1 2022 Growth 0% 7% 3% -5% 5% Sales 5,058 325 198 -271 5,309 Operating income 755 51 -10 -21 776 Operating margin, % 14.9% 15.7% -4.9% 7.7% 14.6% Dilution/accretion 0.1 pts -0.7 pts 0.3 pts 12 months figures Sales 18,995 20,774

  26. Slide 26: Opening Solutions Americas’ bridge

    Opening Solutions Americas’ bridge MSEK Q1 2021 Organic Currency Acq/Div Q1 2022 Growth -13% 22% 13% 1% 36% Sales 4,604 1,098 484 54 6,241 Operating income 955 235 103 -28 1,265 Operating margin, % 20.7% 21.4% 21.3% -52.6% 20.3% Dilution/accretion 0.2 pts 0.0 pts -0.6 pts 12 months figures Sales 18,

  27. Slide 27: Opening Solutions Asia Pacific’s bridge

    Opening Solutions Asia Pacific’s bridge MSEK Q1 2021 Organic Currency Acq/Div Q1 2022 Growth 12% -2% 7% 1% 6% Sales 1,773 -48 141 13 1,879 Operating income 78 -4 -8 1 67 Operating margin, % 4.4% 7.7% -5.8% 4.7% 3.5% Dilution/accretion -0.1 pts -0.8 pts 0.0 pts 12 months figures Sales 9,026 8,826 EBI

  28. Slide 28: Global Technologies’ bridge

    Global Technologies’ bridge MSEK Q1 2021 Organic Currency Acq/Div Q1 2022 Growth -16% 11% 10% 2% 23% Sales 3,301 399 279 72 4,051 Operating income 472 -2 54 -8 516 Operating margin, % 14.3% -0.5% 19.5% -11.7% 12.7% Dilution/accretion -1.4 pts 0.2 pts -0.4 pts 12 months figures Sales 13,527 15,354 EB

  29. Slide 29: Entrance Systems’ bridge

    Entrance Systems’ bridge MSEK Q1 2021 Organic Currency Acq/Div Q1 2022 Growth 11% 20% 8% 1% 29% Sales 7,499 1,589 485 79 9,653 Operating income 1,096 372 73 14 1,555 Operating margin, % 14.6% 23.4% 15.0% 18.0% 16.1% Dilution/accretion 1.4 pts 0.1 pts 0.0 pts 12 months figures Sales 29,095 34,844 EBI

  30. Slide 30: Thank you

    Thank you assaabloy.com

Assa Abloy — Q1 2022 Earnings Presentation on 6ix