Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q4 2017 Earnings Presentation
29 slides from Assa Abloy Ab Class B's earnings presentation, 2018
Slide 1: Q4 Report 2017
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q4 Report 2017
Slide 2: Q4 2017 in brief
Q4 2017 in brief Organic growth in all divisions • Strong growth in Global Tech and EMEA • Continued good growth in Americas, Entrance Systems, and APAC, with flat sales in China • Continued strong development for smart door locks and electro- mechanical solutions Strong profit and cash flow N
Slide 3: Q4 2017 figures in summary
Q4 2017 figures in summary Sales SEK 20,109 M +3% Sales EBIT Sales 5% organic 21 000 3 500 • +3% 3 359 • 3% acquired 3 213 • -5% currency 20 000 3 250 EBIT SEK 3,359 M +5%* 19 000 3 000 • Amortization of acquisition-related intangible assets SEK 87 M (51) 18 000 2 750 • Currency effect SEK -130
Slide 4: Jan. – Dec. 2017 figures in summary
Jan. – Dec. 2017 figures in summary Sales SEK 76,137 M +7% Sales EBIT Sales • 4% organic 80 000 +7% 14 000 • 2% acquired 75 000 13 000 12 341 • 1% currency 70 000 12 000 11 554 65 000 11 000 EBIT SEK 12,341 M +7%* • Amortization of acquisition-related 60 000 10 000 intangible assets SEK 240M (20
Slide 5: Sales by Region
Sales by Region ASSA ABLOY 100 +6 +4 Emerging markets 23 +5 +3 Full year 2017 38 +7 +4 40 +8 +5 14 +1 +1 1 +16 +4 3 +4 +2 4 +4 +7 Change in local currencies Organic change Share of sales, % YTD 2017 vs. YTD 2016, % YTD 2017 vs. YTD 2016, % Emerging markets comprise Africa, Asia (excl. Japan), the Mi
Slide 6: Market highlights
Market highlights Strong e-cylinder demand • New platform driver: Cliq Web Manager, Cliq-go, Medeco XT • Bluetooth keys • Additional sales from new pulse platform in Q1 2018 Strengthened position in smart door locks • Continued strong organic growth • Launch of Amazon key partnership with Yale •
Slide 7: Sales growth, currency adjusted
2017 QTD Organic +5% Sales growth, currency adjusted Acquired +3% +8% % 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 7
Slide 8: Operating margin, %
Margin Bridge 2017 OG Currency ACQ Operating margin, % Q4 YTD 0.3% 0.2% -0.1% -0.1% 0.0% -0.1% % Run rate: EBIT-margin 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 and
Slide 9: Operating profit, SEK M
Operating profit, SEK M +65% in 5 years SEK M SEK M Run rate: EBIT SEK 12,341 M (11,554*) +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 and restr
Slide 10: Manufacturing footprint
Manufacturing footprint Status of programs launched 2006-2016 • 77 factories closed to date, 11 to go • 126 factories converted to assembly, 28 to go Total personnel reduction • 13,564 FTE in total since 2006 • 723 FTE in recent quarter • 1,353 FTE to go for all programs SEK 944 M provisions r
Slide 11: Acquisitions
Acquisitions Fully active pipeline 19 acquisitions done Acquired annualized sales SEK 3,200 M Added sales 4% Divestment of AdvanIDe SEK 1,250 M 11
Slide 12: Phoniro, Sweden
Phoniro, Sweden Turnover of SEK 175 M with 80 employees Leading provider of physical & digital security solutions for elderly care Development of homecare vertical Accretive to EPS 12
Slide 13: Dale & Excel Hardware, UK
Dale & Excel Hardware, UK Turnover of SEK 210 M with Furniture Pocket Door 75 employees Systems Market leading supplier of high quality architectural hardware Hinges Installation tools Complements and extends current hardware portfolio Accretive to EPS 13
Slide 14: EMEA
24% EMEA of Group sales Organic growth of 5% 5 000 22% • Strong growth in Finland, UK, France, Southern and Eastern 4 500 20% Europe, and in Africa/Middle East • Good growth in Germany 4 000 18% • Growth in Scandinavia and Benelux • Strong growth for electromechanical 3 500 16% products and smart
Slide 15: Americas
21% Americas of Group sales Organic growth of 4% 5 000 24% • Strong growth in Electromechanical, High Security, 4 500 22% US Residential, Canada, Mexico and South America (excl. Brazil) • Growth in Architectural Hardware, 4 000 20% Perimeter Protection, Security Doors and in Brazil 3 500 18% Ope
Slide 16: Asia Pacific
11% Asia Pacific of Group sales Organic growth of 3% 3 500 • Strong growth in South Korea, South 3 000 15% Asia, Pacific, and China Architectural Hardware 2 500 • Negative in China Fire and Security Doors 2 000 10% • Personnel adjustment in China YoY -8% 1 500 • Strong growth in Smart Door Locks 1
Slide 17: Global Technologies
14% Global Technologies of Group sales Organic growth of 9% 3 000 22% • HID • Strong growth in Access Control (Mobile keys), Secure Issuance, 2 500 20% Citizen ID and Identification Technology • Negative in Identity & Access management • Strong seasonality in acquired 2 000 18% businesses • Hospit
Slide 18: Entrance Systems
30% Entrance Systems of Group sales Organic growth of 3% 6 500 18% • Strong growth in Pedestrian Doors, 6 000 17% Door components, Industrial and 5 500 High speed doors. 16% 5 000 • Good growth in Residential doors 15% • Negative sales in warehouse and 4 500 14% logistics solutions 4 000 13% 3 500
Slide 19: Q4 Report 2017
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q4 Report 2017 Carolina Dybeck Happe CFO
Slide 20: Financial highlights
Financial highlights October - December January - December SEK M 2016 2017 Change 2016 2017 Change Sales 19,484 20,109 3% 71,293 76,137 7% - Organic growth 120 878 5% 1,428 2,834 4% - Acquired growth 455 480 3% 1,967 1,753 2% - FX-differences 609 -733 -5% -201 257 1% Operating income (EBIT)* 3,213 3
Slide 21: Bridge Analysis – Q4 2017
Bridge Analysis – Q4 2017 SEK M Q4 2016 Organic Currency Acq/Div Q4 2017 5% -5% 3% 3% Sales 19,484 878 -733 480 20,109 Operating profit* 3,213 199 -130 77 3,359 Operating margin, %* 16.5% 22.6% 17.7% 16.0% 16.7% Dilution/accretion 0.3% -0.1% 0.0% Price +2% and volume +3% Positive leverage from a
Slide 22: P&L components as % of sales January - December 2017
P&L components as % of sales January - December 2017 YTD 2017 % YTD 2016 excl. acquisitions Δ YTD 2017 Direct material -35.9% -36.5% -0.6% -36.3% Conversion cost -24.6% -24.2% +0.4% -24.3% Gross margin 39.5% 39.3% -0.2% 39.4% S, G & A -23.3% -23.0% +0.3% -23.2% EBIT* 16.2% 16.3% +0.1% 16.2% Higher
Slide 23: Operating cash flow, SEK M
Operating cash flow, SEK M Quarter 12 months 12 months cash flow / EBT = 94% 6 000 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 2012 2013 2014 2015 2016 2017 Quarter, SEK M Cash rolling 12 months, SEK M EBT rolling 12 months, SEK M 28
Slide 24: Gearing % and net debt, SEK M
Net debt/EBITDA 1.8 (1.8) Gearing % and net debt, SEK M Net debt Gearing Debt/Equity 50% (49) 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 25: Earnings per share, SEK
Earnings per share, SEK +67% in 5 years Quarter YTD EPS +10%* 12 months Dividend proposal 2017: 3.30 SEK, +10% 2.25 9.00 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 in Q4 2016.
Slide 26: Q4 Report 2017
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q4 Report 2017 Johan Molin President and CEO
Slide 27: Conclusions Q4 2017
Conclusions Q4 2017 Sales +8%, excluding currency • Strong growth in Global Tech and EMEA • Continued good growth in Americas, Entrance Systems, and APAC, with flat sales in China • Strong development for smart door locks and electro- mechanical solutions Strong profit and cash flow * Excluding
Slide 28: Q&A www.assaabloy.com
The global leader in door opening solutions
Slide 29: www.assaabloy.com
The global leader in door opening solutions ASSA ABLOY