Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q2 2016 Earnings Presentation
29 slides from Assa Abloy Ab Class B's earnings presentation, 2016
Slide 1: Q2 Report 2016
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q2 Report 2016
Slide 2: ASSA ABLOY overview Jan-Jun 2016
ASSA ABLOY overview Jan-Jun 2016 Financials (SEK bn) Sales by product group Jun 2016 Net sales 33.8 Doors EBIT 5.3 18% Electro- mechanical locks Op cash flow 3.0 26% Mechanical locks Net debt 27.1 29% Entrance Automation Market cap 185 27% Sales by region Jun 2016 Leading market positions (EUR B) 38
Slide 3: Financial highlights Q2, 2016
Financial highlights Q2, 2016 Strong growth in mature markets – Strong growth in Americas, EMEA and Global Tech – Good growth in Entrance Systems – Negative in APAC due to weak Chinese market Sales 17,894 MSEK +5% 4% organic, 4% acquired growth, -3% currency EBIT 2,910 MSEK +6% Currency effect
Slide 4: Financial highlights Jan-Jun 2016
Financial highlights Jan-Jun 2016 Strong development despite a challenging market – Strong growth in Americas – Good growth in Entrance Systems, EMEA and Global Tech – Negative growth in APAC due to China Sales 33,785 MSEK +4% 4% organic, 3% acquired growth, -3% currency EBIT 5,321 MSEK +5% Cu
Slide 5: Market highlights
Market highlights ASSA ABLOY in Forbes 100 most innovative companies Strong development in EMEA digital product sales – Driven by APERIO and smart door locks Successful roll out of Service centers in USA – Incremental growth through local service and quick deliveries DSC Flash Japanese profi
Slide 6: Group sales in local currencies Jan-Jun 2016
Group sales in local currencies Jan-Jun 2016 Emerging markets 23% (25) of sales 38 +7 40 +7 15 +1 1 +12 3 +39 3 +1 Share of Group sales 2016 YTD, % Year-to-date vs previous year, % 6
Slide 7: Sales growth, currency adjusted
Sales growth, currency adjusted Sales MSEK Growth % 2016 Q2 +8% 70 000 Organic +4% 21 67 000 Acquired +4% 18 64 000 15 61 000 12 58 000 9 55 000 6 52 000 3 49 000 0 46 000 -3 43 000 -6 40 000 -9 37 000 -12 34 000 -15 2009 2010 2011 2012 2013 2014 2015 2016 Organic Growth Acquired Growth Sales in Fix
Slide 8: Operating income (EBIT), MSEK
Operating income (EBIT), MSEK Quarter Run rate 11,329 MSEK (10,251) +11% 12-months 3 200 11 500 3 000 11 000 10 500 2 800 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 2009 2010 2011 2012 2013 2014 2015 2016 Quarter Rol
Slide 9: Operating margin, %
Operating margin, % EBIT Margin Run rate 2016 16.3% (16.3) 17 16 15 14 13 12 2009 2010 2011 2012 2013 2014 2015 2016 2016 Acquisitions Currency Quarter Rolling 12-months Q2 -0.2% -0.1% 9
Slide 10: Manufacturing footprint
Manufacturing footprint Status of manufacturing footprint programs 2006-2013: – 76 factories closed to date, 2 to go – 99 factories converted to assembly, 16 to go Total personnel reduction: – 11,356 FTE in total 493 FTE to go for all programs New MFP in progress 395 MSEK of the provision
Slide 11: Margin highlights Q2 2016
Margin highlights Q2 2016 EBIT margin 16.3% (16.1) +0.2% + Volume increase 3%, price 1% Margin improvement + 4% Organic growth + Manufacturing footprint & pricing - Currency -0.1% - Acquisitions -0.2% 11
Slide 12: Acquisitions 2016
Acquisitions 2016 Fully active pipeline 9 acquisitions done in 2016 Divestment of Carlocks 550 MSEK Acquired annualized sales 1,700 MSEK Added sales 2.5% 12
Slide 13: Nassau, Denmark
Nassau, Denmark Turnover of 540 MSEK with 360 employees Important European supplier of industrial doors Adds additional coverage in industrial doors and service Neutral to EPS 13
Slide 14: Demoteller, USA
Demoteller, USA Turnover of 85 MSEK with 32 employees Solutions for the financial card Trism (Fii Software) instance issuance market Enhances position within secure issuance Accretive to EPS 14
Slide 15: Mauer, Bulgaria
Mauer, Bulgaria Turnover of 100 MSEK with 200 employees Manufacturer of cylinders and locks Market Leader of locking products in Bulgaria Accretive to EPS 15
Slide 16: Division – EMEA
Division – EMEA Sales Strong growth in Scandinavia, Finland, Germany, share of Group total % Iberia, Eastern Europe and Africa Good growth in UK, Benelux, France, Italy and Israel 23% Strong progress of elmech solutions Positive calendar effect EBIT % Operating margin (EBIT) 19 18 + Organi
Slide 17: Division - Americas
Division - Americas Sales share of Strong growth in Door group, Elmech, Residential, Group total % Mexico and South America (ex Brazil) Good growth in AHW, High security and Canada 24% 20 Negative in Brazil Quotation levels continue to develop positive EBIT % 23 Operating margin (EBIT) 22
Slide 18: Division - Asia Pacific
Division - Asia Pacific Sales share of Strong growth in Pacific Group total % Good growth in South Asia and Korea 13% 14 Continued decline in China – Personnel reduction China YTD–586 p Exciting orders for elmech in Japan EBIT % 18 Operating margin (EBIT) 16 14 - Organic -6% 12 + Savings m
Slide 19: Division - Global Technologies
Division - Global Technologies Sales HID share of Group total % – Strong growth in PACS, Gov ID, IDT (inlays) and Quantum secure 13% 13 – Flat in IAM (Identity) and project sales Hospitality – Growth – Strong profit EBIT % Operating margin (EBIT) 21 20 + Organic +5% 19 18 - R&D investments 17
Slide 20: Division - Entrance Systems
Division - Entrance Systems Sales share of Strong growth in Door automatics, EU Industrial, High Group total % speed doors 27% Good growth in Amarr and 4Front and Ditec 28 Negative in EU Residential Continued good leverage EBIT % 18 Operating margin (EBIT) 16 + Organic +4% 14 12 + Direct M
Slide 21: Financial highlights Q2 2016
Financial highlights Q2 2016 2nd Quarter Six months MSEK 2015 2016 Change 2015 2016 Change Sales 17,082 17,894 +5% 32,334 33,785 +4% Whereof Organic growth 656 650 +4% 1,336 1,099 +4% Acquired growth 453 593 +4% 829 1,083 +3% FX-differences 2,008 -431 -3% 3,900 -730 -3% Operating income (EBIT) 2,742
Slide 22: Bridge Analysis – Apr-Jun 2016
Bridge Analysis – Apr-Jun 2016 MSEK 2015 Organic Currency Acq/Div 2016 Apr-Jun Apr-Jun 4% -3% 4% 5% Sales 17,082 650 -431 593 17,894 EBIT 2,742 195 -81 54 2,910 % 16.1% 29.9% 18.8% 9.1% 16.3% Dilution / Accretion 0.5% -0.1% -0.2% 22
Slide 23: P&L Components as % of sales Jan – Jun 2016
P&L Components as % of sales Jan – Jun 2016 2015 2016 2016 YTD YTD excl YTD acquisitions Direct material 36.3% 35.6% 35.3% Conversion costs 24.8% 24.9% 25.3% Gross Margin 38.9% 39.5% 39.4% S, G & A 23.2% 23.5% 23.7% EBIT 15.7% 16.0% 15.7% 23
Slide 24: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12-months 5 000 11 000 4 500 10 500 10 000 4 000 9 500 3 500 9 000 3 000 8 500 8 000 2 500 7 500 2 000 7 000 1 500 6 500 1 000 6 000 5 500 500 5 000 0 4 500 2009 2010 2011 2012 2013 2014 2015 2016 Quarter Cash Rolling 12-months EBT Rolling 12 months 24
Slide 25: Gearing % and net debt, MSEK
Gearing % and net debt, MSEK Net Debt Gearing 30 000 Debt/Equity 120 64 (70) 25 000 100 20 000 80 15 000 60 10 000 40 5 000 20 0 0 2009 2010 2011 2012 2013 2014 2015 2016 Net debt Gearing Net debt/EBITDA *) 2009-2011 Not restated for changed pension accounting principles. 2.1 (2.3) 25
Slide 26: Earnings per share, SEK
Earnings per share, SEK Quarter SEK 12-months 2.00 Q2 EPS +7% 7.50 1.80 7.00 6.50 1.60 6.00 1.40 5.50 1.20 5.00 1.00 4.50 4.00 0.80 3.50 0.60 3.00 0.40 2.50 2009 2010 2011 2012 2013 2014 2015 2016 Quarter Rolling 12-months Restated for Stock split 3:1 2015. 26
Slide 27: Conclusions Q2 2016
Conclusions Q2 2016 Good growth by 5% with 4% organic and 4% acquired Strong growth in mature markets Chosen by Forbes as 100 most innovative company Good EBIT development +6% Strong cash flow +27% 27
Slide 28: 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 29: ASSA ABLOY
ASSA ABLOY