Slide 1: ASSA ABLOY Q3 interim report 2023
ASSA ABLOY Q3 interim report 2023
Slide 2: Continued strong execution
Continued strong execution Positive organic sales development – Good sales growth in Global Technologies and Americas – Stable sales in Entrance Systems – Sales decline in EMEIA and APAC Record strong underlying margin SEK 0.5bn in cost savings – MFP and short-term measures Record strong ope
Slide 3: Q3 2023 figures in summary
Q3 2023 figures in summary Sales EBIT*^ +16% +19% Sales MSEK 36,881 +16% – +1% organic 38,000 6,500 – +11% acquired and divested 5,916 36,000 6,000 – +4% currency 34,000 5,500 EBITA-margin*^ 18.4% (16.2%) 32,000 30,000 5,000 4,973 EBIT-margin*^ 17.4% (15.6%) 28,000 4,500 26,000 4,000 EBIT*^
Slide 4: Sales by region Jul-Sep 2023
Sales by region ASSA ABLOY 100 12 1 Emerging markets 14 11 1 Jul-Sep 2023 29 1 -2 54 18 0 8 7 2 1 15 15 4 36 8 4 15 9 Change in local currencies Organic change Share of sales, % QTD 2023 vs. QTD 2022, % QTD 2023 vs. QTD 2022, % Emerging markets follows IMF’s definition as per 2018-12-31 4
Slide 5: Q3 2023 Market highlights
Q3 2023 Market highlights Project wins Large automatic sliding doors package to a nation-wide retail chain in the US Digital access and workforce management solution to Europe’s largest construction site in the UK for 16,000 workers Employee badges in Apple Wallet to an American multi-national
Slide 6: FX adjusted sales growth
FX adjusted sales growth % MSEK 30 140,000 25 130,000 20 120,000 15 110,000 10 5 100,000 0 90,000 -5 80,000 -10 70,000 -15 -20 60,000 2018 2019 2020 2021 2022 2023 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6
Slide 7: Operating margin
Operating margin 16.6% EBIT-margin % Run rate: EBIT-margin 15.8% (15.3%) rolling 12 months ex. HHI/div 19 18 17 Long term target range (average) 16 15 14 13 12 11 10 2018 2019 2020 2021 2022 2023 Quarter EBIT* Rolling 12-months EBIT* ex HHI/div last 12 months EBITA* Rolling 12-months *) Operating ma
Slide 8: Operating profit
Operating profit MSEK MSEK 6,000 22,500 20,000 5,000 17,500 4,000 15,000 12,500 3,000 10,000 2,000 7,500 5,000 1,000 2,500 0 0 2018 2019 2020 2021 2022 2023 Quarter Rolling 12-months Excluding items affecting comparability 8
Slide 9: Acquisitions
Acquisitions Active pipeline – 10 acquisitions signed in Q3 – 18 acquisitions signed as of September 2023 – Representing annualized sales of SEK 19 bn HHI integration – Integration team in place – Synergies starting to be realized – Investment in the innovation team and new product developments
Slide 10: Evolis, France
Evolis, France Leading manufacturer of ID card printers and consumables. Reinforcing our current offering within the secure issuance business Sales of MSEK 1,200 in 2022 Accretive to EPS from the start 10
Slide 11: Forte, Peru
Forte, Peru Leading residential door locks and padlocks manufacturer Strengthening our position in emerging markets Sales of MSEK 200 in 2022 Accretive to EPS from the start 11
Slide 12: Opening Solutions EMEIA
Opening Solutions 16% EMEIA of Group sales Organic sales -3% – Strong growth in Middle East/India/Africa 6,500 21% – Stable growth in South Europe 19% – Sales decline in UK/Ireland, Central Europe and the 6,000 Nordics 17% 5,500 15% Operating margin 13.8% (14.3%) 5,000 13% – Operating dilution (
Slide 13: Opening Solutions Americas
Opening Solutions 30% of Americas 24.2% Group sales Q3 operating margin excl. Organic sales +3% HHI/div – Good growth in North America Non-Residential 12,000 25% – Stable growth in Latin America 11,000 24% – Significant sales decline in US Residential 10,000 23% Operating margin 16.9%* (20.9%) 9
Slide 14: Opening Solutions Asia Pacific
Opening Solutions 7% Asia Pacific of Group sales Organic sales -7% – Strong sales growth in South-East Asia 3,000 15% – Sales decline in China, South Korea and Pacific 10% 2,500 Operating margin 8.7% (4.5%) – Very strong operating leverage due to lower material 5% cost, cost efficiencies and no
Slide 15: Global Technologies
Global Technologies 15% of Group sales Organic sales +4% – Very strong sales growth in Secure Issuance 6,000 24% – Strong sales growth in Physical Access Control, Identity & Access Solutions and Citizen ID 5,500 22% – Sales decline in Extended Access and significant sales 5,000 20% decline in Iden
Slide 16: Entrance Systems
Entrance Systems 32% of Group sales Stable organic sales – Strong sales growth in Industrial and Pedestrian 12,000 18% – Good growth in Perimeter Security – Significant sales decline in Residential 11,000 17% – Strong growth in service 10,000 16% 9,000 15% Operating margin 17.0% (15.7%) 8,000 14
Slide 17: Financial summary
FX & acquisition ‘run-rate’ effects in Q4 2023 Financial summary (30 September 2023): SALES FX: 3% M&A: 11% July-September* January-September* SEK M 2022 2023 Change 2022 2023 Change Sales 31,820 36,881 16% 87,878 103,746 18% - Organic growth 3,741 144 1% 10,351 3,259 4% - Acquired net growth 857 3,
Slide 18: Bridge analysis – Q3 2023
Bridge analysis – Q3 2023 Q3 2023 ex MSEK Q3 2022 Organic Currency Acq/div HHI/div Q3 2023 HHI/div Growth 33% 1% 4% 3% 7% 9% 16% Sales 31,820 144 1,184 850 33,998 2,883 36,881 Operating profit* 4,973 483 243 217 5,916 -139 5,777 Operating margin, %* 15.6% 336% 20.5% 25.5% 17.4% -4.8% 15.7% Dilution/
Slide 19: HHI update
HHI update HHI financial performance 600 100 – Sales –16% vs Q3 last year EBIT- – EBIT-margin at 7.6%, up 330bps versus Q2, excluding 500 margin closing and integration costs in Q3 of MSEK 205 7.6% 75 – Increased pace of integration costs in H2 2023 400 – PPA being assessed 300 50 Q4 seasonally
Slide 20: Cost breakdown as % of sales – Q3 2023
Cost breakdown as % of sales – Q3 2023 QTD 2023 % QTD 2022 excl. acq/div Δ QTD 2023 Direct material -37.6% -34.8% +2.8 pts -35.9% Conversion cost -22.7% -23.4% -0.7 pts -23.1% Gross margin 39.7% 41.8% +2.1 pts 41.0% S, G & A -24.1% -24.6% -0.5 pts -25.3% EBIT* 15.6% 17.2% +1.6 pts 15.7% *Excluding i
Slide 21: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months cash flow / EBT = 125% 12 months 8,000 25,000 22,500 7,000 20,000 6,000 17,500 5,000 15,000 4,000 12,500 10,000 3,000 7,500 2,000 5,000 1,000 2,500 0 0 2018 2019 2020 2021 2022 2023 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 months, MSEK Exc
Slide 22: Gearing % and net debt, MSEK
Gearing % and net debt, MSEK Net debt/EBITDA** 2.6 (1.4) Net debt Net debt/Equity 71% (35%) Gearing % 80,000 80 70,000 70 60,000 60 50,000 50 40,000 40 30,000 30 20,000 20 10,000 10 0 0 2018 2019* 2020 2021 2022 2023 Net debt, MSEK Gearing, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding i
Slide 23: Earnings per share, SEK
Earnings per share, SEK Quarter 12 months 3.50 14 3.00 12 2.50 10 2.00 8 1.50 6 1.00 4 0.50 2 2018 2019 2020 2021 2022 2023 Quarter, SEK Rolling 12 months, SEK Excluding items affecting comparability 23
Slide 24: Conclusions
Conclusions Positive organic sales development – Organic sales up 1% – Net acquired growth of 11% Record strong margin Record cash flow Integration of HHI – positive start Soft economic climate CMD 14-15 May 2024 in Prague/Rychnov 24
Slide 25: 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
Slide 26: Appendix
Appendix
Slide 27: Cost breakdown as % of sales
Cost breakdown as % of sales QTD 2023 YTD 2023 excl. excl. % QTD 2022 acquisitions Δ QTD 2023 YTD 2022 acquisitions Δ YTD 2023 Direct material -37.6% -34.8% +2.8 pts -35.9% -37.2% -34.7% +2.5 pts -35.5% Conversion cost -22.7% -23.4% -0.7 pts -23.1% -23.3% -23.6% -0.3 pts -23.3% Gross margin 39.7% 41
Slide 28: Opening Solutions EMEIA's bridge
Opening Solutions EMEIA’s bridge MSEK Q3 2022 Organic Currency Acq/Div Q3 2023 Growth 14% -3% 5% 3% 5% Sales 5,758 -193 329 167 6,061 Operating income* 825 -75 65 24 838 Operating margin, %* 14.3% 39.1% 19.8% 14.2% 13.8% Dilution/accretion -0.8% 0.3% 0.0% 12 months figures Sales 21,814 24,723 EBIT*
Slide 29: Opening Solutions Americas' bridge
Opening Solutions Americas’ bridge MSEK Q3 2022 Organic Currency Acq/Div Q3 2023 Growth 41% 3% 4% 38% 45% Sales 7,640 199 236 3,015 11,091 Operating income* 1,600 213 69 -12 1,870 Operating margin, %* 20.9% 107.0% 29.2% -0.4% 16.9% Dilution/accretion 1.6% 0.8% -6.4% 12 months figures Sales 26,438 34
Slide 30: Opening Solutions Asia Pacific's bridge
Opening Solutions Asia Pacific’s bridge MSEK Q3 2022 Organic Currency Acq/Div Q3 2023 Growth 28% -7% 0% -3% -10% Sales 2,918 -194 -2 -82 2,640 Operating income* 132 74 1 23 229 Operating margin, %* 4.5% -38.0% -50.2% -27.7% 8.7% Dilution/accretion 3.2% -0.1% 1.1% 12 months figures Sales 9,607 10,465
Slide 31: Global Technologies' bridge
Global Technologies’ bridge MSEK Q3 2022 Organic Currency Acq/Div Q3 2023 Growth 39% 4% 4% 4% 12% Sales 5,142 219 195 207 5,763 Operating income* 890 107 51 17 1,065 Operating margin, %* 17.3% 48.9% 25.9% 8.1% 18.5% Dilution/accretion 1.2% 0.4% -0.4% 12 months figures Sales 17,568 22,948 EBIT* 2,706
Slide 32: Entrance Systems' bridge
Entrance Systems’ bridge MSEK Q3 2022 Organic Currency Acq/Div Q3 2023 Growth 37% 0% 4% 2% 6% Sales 11,066 2 443 214 11,725 Operating income* 1,735 174 59 27 1,995 Operating margin, %* 15.7% 10556% 13.3% 12.4% 17.0% Dilution/accretion 1.5% -0.1% -0.1% 12 months figures Sales 40,519 46,012 EBIT* 6,44
Slide 33: Thank you
Thank you assaabloy.com