Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q1 2017 Earnings Presentation
32 slides from Assa Abloy Ab Class B's earnings presentation, April 2017
Slide 1: Q1 Report 2017
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q1 Report 2017
Slide 2: ASSA ABLOY overview Jan-Mar 2017
ASSA ABLOY overview Jan-Mar 2017 Financials (SEK bn) Sales by product group Mar 2017 Net sales 18.1 Doors Electro- EBIT 2.8 18% mechanical locks 27% Op cash flow 0.8 Mechanical locks Net debt 23.3 28% Entrance Automation Market cap* 216 27% * April 25, 2017 Sales by region Mar 2017 Leading market po
Slide 3: Q1 2017 in brief
Q1 2017 in brief Strong start of 2017 • Organic growth in all divisions • Strong growth in electro- mechanical solutions • Good development in many mature markets, with strong growth in key markets like USA, Scandinavia, UK and Germany • Stabilization of demand in China • Positive Easter effect 3
Slide 4: Sales in local currency
Sales in local currency ASSA ABLOY 100 +9 +6 Emerging markets 22 +7 +5 Q1 2017 39 +11 +6 41 +10 +8 12 +2 +2 1 +9 +9 3 +5 +2 4 +6 +7 Change in local currencies Organic change Share of sales, % Q1 2017 vs. Q1 2016, % Q1 2017 vs. Q1 2016, % Emerging markets comprise Africa, Asia (excl. Japan), the Midd
Slide 5: Market highlights
Market highlights Strong growth of digital door locks • Several pilot projects for home deliveries • Locks are a major part of home automation New products and design guideline in Entrance Systems • Uniform design drives synergies and unity • New revolving door range Innovation leadership conf
Slide 6: 10 ISC West Awards for ASSA ABLOY
10 ISC West Awards for ASSA ABLOY Adams Rite 8800 Series Narrow Stile Rim Exit Device HID PIV Enterprise and HID PIV Express HES 1500/1600 IN220 Lock Medeco XT Dual-Tech Cylinder HES 1500/1600 IN220 Power over Ethernet Lock HID Location Medeco XT Slim Line B Key with XT Air App Attack Resistant Door
Slide 7: Q1 2017 figures in summary
Q1 2017 figures in summary Sales SEK 18,142 M +14% Sales EBIT Sales 20 000 5 000 • 6% organic (2% price, 4% volume) +14% 18 000 4 500 • 3% acquired, 5% currency 16 000 4 000 14 000 3 500 EBIT SEK 2,787 M +16% 12 000 2 787 3 000 • Currency effect SEK 133 M 2 411 10 000 2 500 8 000 2 000 Margin
Slide 8: Sales growth, currency adjusted
2017 QTD Organic +6% Sales growth, currency adjusted Acquired +3% +9% % SEK M 25 80 000 20 75 000 15 70 000 10 65 000 5 60 000 0 55 000 -5 50 000 -10 45 000 2012 2013 2014 2015 2016 2017 Organic growth, % Acquired growth, % Sales in fixed currencies, SEK M 8
Slide 9: Operating margin, %
Dilution from 2017 acquisitions currency Operating margin, % Q1 -0.2% 0.1% % Run rate 16.2%* (16.2) 18 18 17 17 Long term target range (average) 16 16 15 15 14 14 13 13 2012 2013 2014 2015 2016 2017 Quarter Rolling 12-months *) Excluding China write down SEK 300 M in Q4 and full year 2016 and restru
Slide 10: Operating profit, SEK M
Operating profit, SEK M +73% in 5 years SEK M SEK M Run rate SEK 11,930 M* (11,162) +7% 4 000 16 000 3 500 14 000 3 000 12 000 2 500 10 000 2 000 8 000 1 500 6 000 1 000 4 000 500 2 000 0 0 2012 2013 2014 2015 2016 2017 Quarter Rolling 12-months *) Excluding China write down SEK 300 M in Q4 and full
Slide 11: Manufacturing footprint
Manufacturing footprint Status of programs launched 2006-2016 • 76 factories closed to date, 12 to go • 111 factories converted to assembly, 35 to go Total personnel reduction • 12,319 FTE in total since 2006 • 157 FTE in recent quarter • 1,965 FTE to go for all programs SEK 1,484 M provisions
Slide 12: Acquisitions
Acquisitions Fully active pipeline 15 acquisitions consolidated last 12 months 7 acquisitions in 2017 Acquired annualized sales in 2017 SEK 700 M, +1% 12
Slide 13: Jerith, USA
Jerith, USA Turnover of SEK 200 M with 75 employees Leading supplier of aluminum fencing in the US Complementary to the perimeter security business Accretive to EPS 13
Slide 14: Reco Port, Sweden
Reco Port, Sweden Turnover of SEK 90 M with 40 employees Develops, manufactures and installs folding doors and sectional overhead doors Strong position within the folding door segment in Sweden Accretive to EPS 14
Slide 15: Division – EMEA
24% Division – EMEA of Group sales Organic growth of 5% 5 000 22% • Strong growth in Scandinavia, Finland, UK, Germany, and Southern Europe 4 500 20% • Good growth in France and Eastern Europe • Flat in Benelux and negative in 4 000 18% the Middle East • Electromechanical products lead the 3 500 1
Slide 16: EMEA Financial Review
EMEA Financial Review SEK M Q1 2016 Organic Currency Acq/Div Q1 2017 Growth 5% 2% 3% 10% Sales 4,004 195 85 120 4,404 Operating income (EBIT) 634 44 18 23 718 Operating margin, % 15.8% 22.4% 21.2% 18.9% 16.3% Dilution/accretion 0.3% 0.1% 0.1% 12 months figures* EBIT 2,628 2,806 Operating cash flow 2
Slide 17: Americas
25% Americas of Group sales Organic growth of 7% 5 000 23% • Strong growth in Electromechanical, Security doors, Perimeter protection, 4 500 22% Residential, Mexico and South America (ex Brazil). • Good growth in Architectural Hardware, 4 000 21% High security and Canada • Negative in Brazil 3 500
Slide 18: Americas Financial Review
Americas Financial Review SEK M Q1 2016 Organic Currency Acq/Div Q1 2017 Growth 7% 8% 0% 15% Sales 3,969 282 313 2 4,566 Operating profit 824 74 62 0 961 Operating margin, % 20.8% 26.3% 19.8% 16.0% 21.0% Dilution/accretion 0.3% -0.1% 0.0% 12 months figures* EBIT 3,415 3,777 Operating cash flow 3,332
Slide 19: Asia Pacific
10% Asia Pacific of Group sales Organic growth of 3% 3 500 • Strong growth in Pacific, South Korea, 3 000 15% South Asia and Japan • Strong growth in Digital Door Locks 2 500 • Flat sales in China • Personnel adjustment in China YoY -12% 2 000 10% 1 500 Operating margin 7.9% (9.9) • Organic grow
Slide 20: Asia Pacific Financial Review
Asia Pacific Financial Review SEK M Q1 2016 Organic Currency Acq/Div Q1 2017 Growth 3% 6% 0% 9% Sales 1,758 63 100 -3 1,917 Operating profit 174 -32 10 0 151 Operating margin, % 9.9% -50.5% 9.6% 14.7% 7.9% Dilution/accretion -2.0% 0.0% 0.0% 12 months figures* EBIT 1,421 1,064 Operating cash flow 1,2
Slide 21: Global Technologies
13% Global Technologies of Group sales Organic growth of 9% 3 000 22% • HID • Strong growth in Access Control, Identity and Access Management, 2 500 20% Secure Issuance and GovID • Growth in Project business • Negative in ID Technology 2 000 18% • Hospitality • Strong growth • Mobile keys increasi
Slide 22: Global Technologies Financial Review
Global Technologies Financial Review SEK M Q1 2016 Organic Currency Acq/Div Q1 2017 Growth 9% 6% 1% 16% Sales 2,147 213 100 22 2,481 Operating profit 363 41 27 -8 422 Operating margin, % 16.9% 19.2% 27.0% -39.2% 17.0% Dilution/accretion 0.2% 0.4% -0.5% 12 months figures* EBIT 1,650 1,811 Operating c
Slide 23: Entrance Systems
28% Entrance Systems of Group sales Organic growth of 7% 6 000 18% • Strong growth in Door automatics, High 5 500 17% speed doors, Door components, US Industrial and US Residential 5 000 16% • Good growth in EU industrial doors 4 500 15% 4 000 14% Operating margin 12.5% (12.3) 3 500 13% • Organi
Slide 24: Entrance Systems Financial Review
Entrance Systems Financial Review SEK M Q1 2016 Organic Currency Acq/Div Q1 2017 Growth 7% 5% 7% 19% Sales 4,291 296 192 308 5,087 Operating profit 529 76 17 17 638 Operating margin, % 12.3% 25.8% 8.7% 5.4% 12.5% Dilution/accretion 0.8% -0.1% -0.5% 12 months figures* EBIT 2,479 2,862 Operating cash
Slide 25: Financial highlights Q1 2017
Financial highlights Q1 2017 January - March SEK M 2016 2017 Change Sales 15,891 18,142 14% - Organic growth* 400 1,022 6% - Acquired growth 490 448 3% - FX-differences* -251 780 5% Operating income (EBIT) 2,411 2,787 16% EBIT-margin 15.2% 15.4% Income before tax 2,209 2,593 17% Net income 1,638 1,9
Slide 26: Bridge Analysis – Q1 2017
Bridge Analysis – Q1 2017 SEK M Q1 2016 Organic Currency Acq/Div Q1 2017 6% 5% 3% 14% Sales 15,891 1,022 780 448 18,142 Operating profit 2,411 213 133 31 2,787 Operating margin, % 15.2% 20.8% 17.1% 6.8% 15.4% Dilution/accretion 0.3% 0.1% -0.2% Good leverage, except APAC Small positive currency e
Slide 27: P&L components as % of sales Q1 2017
P&L components as % of sales Q1 2017 Q1 2017 % Q1 2016 excl. acquisitions Δ Q1 2017 Direct material 34.5% 35.1% +0.6% 35.2% Conversion costs 25.9% 25.0% -0.9% 25.2% Gross margin 39.6% 39.9% +0.3% 39.6% S, G & A 24.4% 24.3% -0.1% 24.2% EBIT 15.2% 15.6% +0.4% 15.4% Higher material cost Organic gro
Slide 28: Operating cash flow, SEK M
Operating cash flow, SEK M Quarter 12 months 12 months cash / EBT = 99%* 5 000 20 000 4 500 18 000 4 000 16 000 3 500 14 000 3 000 12 000 2 500 10 000 2 000 8 000 1 500 6 000 1 000 4 000 500 2 000 0 0 2012 2013 2014 2015 2016 2017 Quarter, SEK M Cash rolling 12 months, SEK M EBT rolling 12 months, S
Slide 29: Gearing % and net debt, SEK M
Net debt/EBITDA 1.8 (2.0) Gearing % and net debt, SEK M Net debt Gearing Debt/Equity 48% (58) 30 000 90 25 000 75 20 000 60 15 000 45 10 000 30 5 000 15 0 0 2012 2013 2014 2015 2016 2017 Net debt, SEK M Gearing, % 29
Slide 30: Earnings per share, SEK
Earnings per share, SEK +71% in 5 years Quarter 12 months Q1 EPS 1.73 +17% 2,00 8,00 1,75 7,00 1,50 6,00 1,25 5,00 1,00 4,00 0,75 3,00 0,50 2,00 2012 2013 2014 2015 2016 2017 Quarter, SEK Rolling 12-months, SEK *) Excluding restructuring items of SEK 1,597 M for Q4 and full year 2016. Chart is resta
Slide 31: Conclusions Q1 2017
Conclusions Q1 2017 +14% sales growth, whereof 9% excluding currency Strong growth in all divisions, but APAC Growth in APAC Technology leadership EBIT +16% and EPS +17% 31
Slide 32: www.assaabloy.com
The global leader in door opening solutions