Assa Abloy Ab Class B · OMXSTO:ASSA_B

Assa Abloy Ab Class B — FY2006 Earnings Presentation

33 slides from Assa Abloy Ab Class B's earnings presentation, 2007

  1. Slide 1: Year End Report 2006

    Year End Report 2006 Johan Molin President & CEO

  2. Slide 2: Financial Highlights Q4

    Financial Highlights Q4 ƒ Q4 Continued with high growth rates – Record profitability in Global Technology and Entrance Systems – Continued recovery in Asia Pacific ƒ Sales 8 059 SEK M + 7% +9 % organic, +5 % acquired growth, -7 % currency ƒ EBIT* 1 274 SEK M +20 % ƒ EPS* 2.14 SEK +16 % *Excluding re

  3. Slide 3: Financial Highlights Full Year

    Financial Highlights Full Year ƒ Strong performance in sales and EBIT – More than a year of strong growth ƒ Sales 31 137 SEK M +12 % +9 % organic, +3 % acquired, 0 % currency ƒ EBIT* 4 771 SEK M +17 % ƒ EPS* 7.99 SEK +15 % * Excluding restructuring cost of 1 474 SEK M 3

  4. Slide 4: Organic Growth %

    Organic Growth % 14 12 10 2006: 9.0 % (5.0) 8 6 4 2 0 2003 2004 2005 2006 -2 -4 Quarter Rolling 12-months Target 4

  5. Slide 5: Sales Growth - Currency Adjusted

    Sales Growth - Currency Adjusted % MSEK 16 14 31000 12 29000 12 12months monthsgrowth growth 10 run runrate rate12,0 12,0%: %: 8 27000 organic organic 9,0 9,0%% acquired acquired3,0 3,0%% 6 25000 4 2 23000 0 2003 2004 2005 2006 -2 21000 Acquired growth Organic growth Sales rolling 12-months in fixed

  6. Slide 6: Group Sales in Local Currencies Full Year 2006

    Group Sales in Local Currencies Full Year 2006 48 +9 39 +15 5 +19 1 +30 2 +25 5 +9 Portion of Group sales 2006 % Year-to-date vs previous year % 6

  7. Slide 7: Growth Highlights

    Growth Highlights ƒ Continued rapid growth of Intelligent Door Openings – Elmech components and electronic cylinders – Access control – Automatic doors ƒ Hospitality in strong growth backed by launch of new RFID locking solution – Brings the hotel door online ƒ Investment into specification market ƒ

  8. Slide 8: Acquisitions

    Acquisitions ƒ Pemko – Leading North American producer of door components – Complementary to existing product range – Sales 55 USD M – EPS accretive from date of acquisition ƒ Pyropanel – Australian market leader in fire rated doors – Strengthens position in commercial segment – Sales 19 AUD M – EPS

  9. Slide 9: Operating Income* (EBIT) SEK M

    Operating Income* (EBIT) SEK M 1300 5000 1250 4800 1200 4600 1150 4400 1100 4200 1050 4000 1000 3800 950 3600 900 850 3400 800 3200 2004 2005 2006 Quarter 12-months Quarter Rolling 12-months *Excluding Q2-Q4 restructuring 9

  10. Slide 10: Margin Highlights

    Margin Highlights ƒ Raw material price increase offset through customer price increases – Price increase +4% in Q4 – Material prices declines on zinc and brass – Margin dilution expected to disappear in H1 2007 ƒ Restructuring progressing well – Projects started in Q4 with costs of 517 SEK M, 1 474

  11. Slide 11: Division - EMEA

    Division - EMEA ƒ Continued growth across all countries SALES share of Group total % ƒ Especially strong sales growth in Nordic, Germany, Eastern Europe and Africa 39 ƒ All restructuring programs in progress EBIT % ƒ Operating margin (EBIT) 17 16 + Volume 15 + Restructuring savings progressing well

  12. Slide 12: EMEA Financial Review

    EMEA Financial Review Fourth Quarter Full Year EUR M 2006 2005 Change 2006 2005 Change Sales 359 330 +9% 1 351 1 255 +8% Organic growth +10% +8% Acquired growth 0% 0% EBIT 58* 48 +21% 213* 184 +16% EBIT-margin (%) 16.2* 14.5 15.8* 14.7 RoCE (%) 20.7* 16.9 19.1* 16.6 Operating cash flow before paid i

  13. Slide 13: Division - Americas

    Division - Americas SALES ƒ Continued strong sales of electro- share of Group total % mechanical and the commercial segment 32 ƒ Residential growing at a lower pace ƒ Mexico developing well EBIT % ƒ Operating margin (EBIT) 20 + Volume 19 = Price increase offset cost increase 18 17 16 15 2004 2005 20

  14. Slide 14: Americas Financial Review

    Americas Financial Review Fourth Quarter Full Year USD M 2006 2005 Change 2006 2005 Change Sales 339 293 +16% 1 374 1 182 +16% Organic growth +9% +10% Acquired growth +7% +6% EBIT 65* 54 +20% 264* 217 +22% EBIT-margin (%) 19.1* 18.3 19.2* 18.3 RoCE (%) 20.9* 19.9 22.3* 19.6 Operating cash flow befor

  15. Slide 15: Division - Asia Pacific

    Division - Asia Pacific SALES ƒ Low growth in New Zealand and Australia share of Group total % ƒ Continued good development of China 7 ƒ New organisation implemented ƒ Operating margin (EBIT) EBIT % 20 + Implemented price increases Q4 2006 18 16 and further to come in H1 2007 14 12 + Restructuring 1

  16. Slide 16: Asia Pacific Financial Review

    Asia Pacific Financial Review Fourth Quarter Full Year AUD M 2006 2005 Change 2006 2005 Change Sales 107 105 +2% 415 389 +7% Organic growth +2% +4% Acquired growth +0% +3% EBIT 13* 8 +62% 38* 43 -12% EBIT-margin (%) 12.0* 8.2 9.2* 11.1 RoCE (%) 13.7* 9.7 10.8* 12.9 Operating cash flow before paid in

  17. Slide 17: Division - Global Technologies

    Division - Global Technologies SALES ƒ Strong growth pace in all segments share of Group total % - Fargo new commercial organisation 13 - ITG reorganized to customer segments - Asian sourcing and manufacturing growing fast - Hotel Safe production in Norway outsourced EBIT % ƒ Operating margin (EBIT)

  18. Slide 18: Global Technologies Financial Review

    Global Technologies Financial Review Fourth Quarter Full Year SEK M 2006 2005 Change 2006 2005 Change Sales 1 227 938 +31% 4 220 3 387 +25% Organic growth +16% +12% Acquired growth +24% +12% EBIT 194* 129 +50% 612* 476 +29% EBIT-margin (%) 15.8* 13.8 14.5* 14.1 RoCE (%) 15.2* 15.7 15.5* 17.3 Operati

  19. Slide 19: Division - Entrance Systems

    Division - Entrance Systems SALES share of Group total % ƒ Rapid growth in North America and Asia 8 ƒ Solid development in Europe ƒ Good development within service EBIT % 17 ƒ Operating margin (EBIT) 16 15 14 + Volume development 13 12 + Price increase implemented Q4 11 10 9 2004 2005 2006 19

  20. Slide 20: Entrance systems Financial Review

    Entrance systems Financial Review Fourth Quarter Full Year SEK M 2006 2005 Change 2006 2005 Change Sales 765 701 +9% 2 715 2 373 +14% Organic growth +11% +11% Acquired growth +2% +3% EBIT 120 105 +14% 368* 335 +10% EBIT-margin (%) 15.7 15.0 13.6* 14.1 RoCE (%) 15.3 15.0 11.5* 11.1 Operating cash flo

  21. Slide 21: Year End Report 2006 - Tomas Eliasson CFO

    Year End Report 2006 Tomas Eliasson CFO

  22. Slide 22: Financial Highlights Q4 and Full Year 2006

    Financial Highlights Q4 and Full Year 2006 Fourth Quarter Full Year SEK M 2006 2005 Change 2006 2005 Change Sales 8 059 7 530 +7% 31 137 27 802 +12% Whereof Organic growth +9% +9% Acquired growth +5% +3% FX-differences -493 -7% -109 +0% Operating income (EBIT) 1 274 * 1 063 +20% 4 771* 4 078 +17% EB

  23. Slide 23: Operating Cash Flow SEK M

    Operating Cash Flow SEK M 1200 5500 5000 1000 4500 800 4000 12-mths Quarter 600 3500 400 3000 200 2500 0 2000 2004 2005 2006 Quarter Rolling 12-months 23

  24. Slide 24: Working Capital - Receivables

    Working Capital Receivables 59 58 57 DSO: 54 (53) 56 55 Days 54 53 52 51 50 49 2004 2005 2006 24

  25. Slide 25: Working Capital - Inventories

    Working Capital Inventories 120 118 116 MTPT: 109 (108) 114 112 Days 110 108 106 104 102 2004 2005 2006 25

  26. Slide 26: Gearing % and Net Debt SEK M

    Gearing % and Net Debt SEK M 16000 160 14000 140 12000 120 10000 100 8000 80 6000 60 4000 40 2000 20 0 0 2004 2005 2006 Net debt Gearing Net debt Gearing 26

  27. Slide 27: Financing

    Financing ƒ Finalized previously announced re-financing from 30% long term to 60% long term debt ƒ Interest and capital maturities increased 27

  28. Slide 28: Return On Capital Employed* %

    Return On Capital Employed* % 22 20 Target 20% 18 16 ROCE ROCEYTD YTD17.1% 17.1%(15.9) (15.9) 14 12 2004 2005 2006 *Excluding Q2-Q4 restructuring 28

  29. Slide 29: Earnings per Share* SEK

    Earnings per Share* SEK 9,00 8,00 7,00 6,00 EPS 2006 * 7.99 EPS 2006 4.72 5,00 Dividend 3.25 4,00 3,00 2,00 1,00 0,00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 *Excluding Q2-Q4 restructuring 29

  30. Slide 30: Year End Report 2006 - Johan Molin President & CEO

    Year End Report 2006 Johan Molin President & CEO

  31. Slide 31: Conclusion

    Conclusion ƒ Strong organic growth +9% ƒ Acquisitions and new products adds growth ƒ Good improvement of the EBIT ƒ Restructuring ahead of plan 31

  32. Slide 32: Outlook 2007

    Outlook 2007 ƒ Organic sales growth is expected to continue at a good rate ƒ The operating margin (EBIT) and operating cash flow are expected to develop well 32

  33. Slide 33: ASSA ABLOY

    ASSA ABLOY The World's Leading Lock Group

Assa Abloy — FY2006 Earnings Presentation on 6ix