Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q4 2020 Earnings Presentation
32 slides from Assa Abloy Ab Class B's earnings presentation, 2021
Slide 1: Q4 interim report 2020
ASSA ABLOY Q4 interim report 2020 Public
Slide 2: Strong operational execution
Strong operational execution Organic sales development – Stable sales in EMEA and Entrance Systems – Sales declined in Americas and APAC – Sales declined significantly in Global Technologies Solid EBIT-margin – Adjusted for acquisitions and divestments the operating margin reached 16% – Net cost
Slide 3: Q4 2020 figures in summary
Q4 2020 figures in summary Sales MSEK 23,298 -7% 26 000 Sales EBIT 5 500 – - 5% organic -7% -14% – +5% acquired and divested 25 000 5 000 – - 7% currency 24 000 4 500 EBITA-margin 15.6%* (16.8%) 23 000 4 000 4 047 22 000 3 500 EBIT-margin 14.9%* (16.2%) 3 475 21 000 3 000 EBIT MSEK 3,475 -14
Slide 4: Full year 2020 figures in summary
Full year 2020 figures in summary Sales MSEK 87,649 -7% 100 000 Sales EBIT 18 000 – - 8% organic -7% -20% – +4% acquired and divested – - 3% currency 95 000 16 000 EBITA-margin 14.3%* (16.4%) 14 920 90 000 14 000 EBIT-margin 13.6%* (15.9%) 85 000 12 000 11 916 EBIT MSEK 11,916 -20% 80 000 10
Slide 5: Sales by region Oct-Dec 2020
Sales by region ASSA ABLOY 100 0 -5 Emerging markets 16 -9 -11 Oct-Dec 2020 41 +8 -3 40 -3 -5 10 -16 -15 1 -6 -11 3 1 -2 5 +15 1 Change in local currencies Organic change Share of sales, % QTD 2020 vs. QTD 2019, % QTD 2020 vs. QTD 2019, % Emerging markets comprise follows IMF’s definition as per 201
Slide 6: Market highlights
Market highlights Project wins Automatic door solutions for university hospital in South Korea Door hardware for airport in China Product launches Automatic sliding door with digital OLED signage incorporated into door New Yale Doorman smart lock launched in Scandinavia New HID EikonTo
Slide 7: Sales growth
Sales growth % MSEK 20 100 000 15 95 000 10 90 000 5 85 000 0 80 000 -5 75 000 -10 70 000 -15 65 000 -20 60 000 2015 2016 2017 2018 2019 2020 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 7 Public
Slide 8: Operating margin
Operating margin Adj. for acq & div: 16.1% in Q4 % Run rate: EBIT-margin 13.6% (15.9%) % 18 18 17 17 Long term target range (average) 16 16 15 15 14 14 13 13 12 12 11 11 10 10 9 9 8 8 2015 2016 2017 2018 2019 2020 Quarter EBIT Rolling 12-months EBITA* Rolling 12-months Excluding China write-downs, r
Slide 9: Operating profit
Operating profit MSEK -14% MSEK, 12 months 4 500 vs 16 000 Q4 LY 4 000 14 000 3 500 12 000 3 000 10 000 2 500 8 000 2 000 6 000 1 500 4 000 1 000 500 2 000 0 0 2015 2016 2017 2018 2019 2020 Quarter Rolling 12-months *) Excluding China write-downs, restructuring items and a positive revaluation of ag
Slide 10: Acquisitions
Acquisitions Fully active pipeline – 4 acquisitions completed in Q4 – 12 acquisitions completed in 2020 – Acquired annualized sales of MSEK 5,600 Divestments – agta record and ASSA ABLOY Entrance businesses – CEDES – Gardesa – Divested annualized sales of MSEK 1,600 10 Public
Slide 11: Opening Solutions EMEA
Opening Solutions 22% EMEA of Group sales Adj for acq & div: Organic sales –1% 6 000 15.9% in Q4 20% – Strong sales growth in the UK and France 5 500 18% – Stable sales in Germany and Scandinavia – Sales declined in Benelux, Eastern Europe, Middle 5 000 16% East/Africa and South Europe 4 500 14% 4
Slide 12: Opening Solutions Americas
Opening Solutions 20% of Americas Group sales Organic sales declined -4% 6 500 24% – Very strong sales growth in US Smart Residential, US Residential and Latin America 6 000 23% – Sales declined in Architectural Hardware, Electromechanical Solutions, Security Doors and in 5 500 22% Canada 5 000 21
Slide 13: Opening Solutions Asia Pacific
Opening Solutions 9% Asia Pacific of Group sales Organic sales declined -5% 3 000 20% – Sales declined in Pacific, China and South Korea – Significant sales decline in other regions 15% 2 500 10% New divisional organization from January 5% 2 000 Operating margin 8.2% (8.2%) 0% – Good leverage
Slide 14: Global Technologies
Global Technologies 15% of Group sales Organic sales declined –17% 4 500 24% – Sales declined in Identity & Access Mgmt Solutions, Secure Issuance and Physical Access Control 4 000 22% – Significant sales decline in all other business areas 3 500 20% – Significant sales decline in Global Solutions
Slide 15: Entrance Systems
Entrance Systems 34% of Group sales Organic sales -1% 8 500 18% – Strong sales growth in Perimeter Security 8 000 – Stable sales in Residential and Industrial 17% – Sales declined in Pedestrian 7 500 16% 7 000 – Stable sales in service 6 500 15% 6 000 14% Operating margin 15.8% (16.3%) 5 500 – S
Slide 16: Financial summary, Q4 2020
Financial summary, Q4 2020 FX & acquisition ‘run-rate’ effects in Q1 2021 (31 December 2020): SALES FX: -12% M&A: +4% October-December January-December SEK M 2019 2020* Change 2018 2020* Change Sales 24,946 23,298 -7% 94,029 87,649 -7% - Organic growth 147 -1,150 - 5% 2,652 -7,150 -8% - Acquired net
Slide 17: Cost efficiency in everything we do
Cost efficiency in everything we do Progress in Q4 Operational efficiency with more permanent savings Additional permanent headcount reduction of 650 Travel costs reduced by 60% Reduced SG&A and conversion net costs by MFP8 launched in Q4 Restructuring costs of SEK 1.4 bn ~SEK 0.5 bn in Q4
Slide 18: Bridge analysis – Q4 2020
Bridge analysis – Q4 2020 Adj. for acq & div: 16.1% in Q4 MSEK Q4 2019 Organic Currency Acq/Div Q4 2020 Growth -5% -7% 5% -7% Sales 24,946 -1,150 -1,709 1,211 23,298 Operating profit* 4,047 -166 -321 -86 3,475 Operating margin, %* 16.2% 14.4% 18.8% -7.1% 14.9% Dilution/accretion 0.0 pts -0.1 pts -1.
Slide 19: Cost breakdown as % of sales October - December
Cost breakdown as % of sales October - December QTD 2020 % QTD 2019 excl. acq/div Δ QTD 2020 Direct material -36.1% -35.7% +0.4 pts -35.6% Conversion cost -23.9% -24.0% -0.1 pts -24.6% Gross margin 40.0% 40.3% +0.3 pts 39.8% S, G & A -23.8% -24.2% -0.4 pts -24.9% EBIT* 16.2% 16.1% -0.1 pts 14.9% *)
Slide 20: Operating cash flow, MSEK
Operating cash flow, MSEK Working capital Record cash flow down SEK 1.8 Bn Quarter 12 months 6 000 20 000 12 months cash flow / EBT = 131% 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 2015 2016 2017 2018 2019 2020 Quarter, MSEK Cash rolling 12 months,
Slide 21: Gearing % and net debt, MSEK
Gearing % and net debt, MSEK Net debt/EBITDA** 1.9 (1.8) Net debt Gearing 40 000 80 Debt/Equity 51% (56%) 35 000 70 30 000 60 25 000 50 20 000 40 15 000 30 10 000 20 5 000 10 0 0 2015 2016 2017 2018 2019* 2020 Net debt, MSEK Gearing, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding MFP rest
Slide 22: Earnings per share, SEK
Earnings per share, SEK Quarter 12 months Dividend proposal: SEK 3.90 2,50 10,00 split in two payments 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 2015 2016 2017 2018 2019 2020 Quarter, SEK Rolling 12 months, SEK Excluding restructuring items, impairment of intang
Slide 23: Conclusions
Conclusions Strong operational execution – Organic sales declined by 5% – Operating margin at 16%, excl acq & div – Very strong cash flow up 6% vs. last year Short term and long term views – Covid-19 continues to have negative effects – Strong focus on cost and cash flow remains – Investments in
Slide 24: Q&A
=N 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 25: Appendix
Appendix Public
Slide 26: Cost breakdown as % of sales
Cost breakdown as % of sales QTD 2020 YTD 2020 excl. excl. % QTD 2019 acquisitions Δ QTD 2020 YTD 2019 acquisitions Δ YTD 2020 Direct material -36.1% -35.7% +0.4 pts -35.6% -36.0% -35.1% +0.9 pts -35.2% Conversion cost -23.9% -24.0% -0.1 pts -24.6% -23.9% -24.6% -0.7 pts -25.0% Gross margin 40.0% 40
Slide 27: Opening Solutions EMEA’s bridge
Opening Solutions EMEA’s bridge MSEK Q4 2019 Organic Currency Acq/Div Q4 2020 Growth -1% -4% 0% -5% Sales 5,525 -35 -244 -3 5,242 Operating income 884 -7 -43 -163 670 Operating margin, % 16.0% 20.2% 17.7% 5069% 12.8% Dilution/accretion 0.0 pts -0.1 pts -3.1 pts 12 months figures Sales 21,144 18,982
Slide 28: Opening Solutions Americas’ bridge
Opening Solutions Americas’ bridge MSEK Q4 2020 Organic Currency Acq/Div Q4 2020 Growth -4% -9% -10% -23% Sales 5,900 -208 -612 -513 4,567 Operating income 1,182 1 -129 -139 915 Operating margin, % 20.0% -0.5% 21.1% 27.1% 20.0% Dilution/accretion 0.9 pts -0.2 pts -0.7 pts 12 months figures Sales 23,
Slide 29: Opening Solutions Asia Pacific’s bridge
Opening Solutions Asia Pacific’s bridge MSEK Q4 2019 Organic Currency Acq/Div Q4 2020 Growth -5% -6% 1% -10% Sales 2,676 -135 -141 18 2,418 Operating income 220 0 -18 -2 199 Operating margin, % 8.2% 0.1% 13.1% -11.8% 8.2% Dilution/accretion 0.4 pts -0.3 pts -0.1 pts 12 months figures Sales 10,689 8,
Slide 30: Global Technologies’ bridge
Global Technologies’ bridge MSEK Q4 2019 Organic Currency Acq/Div Q4 2020 Growth -17% -7% 5% -19% Sales 4,377 -710 -317 194 3,545 Operating income 800 -156 -83 20 582 Operating margin, % 18.3% 21.9% 26.1% 10.5% 16.4% Dilution/accretion -0.9 pts -0.7 pts -0.3 pts 12 months figures Sales 15,423 14,158
Slide 31: Entrance Systems’ bridge
Entrance Systems’ bridge MSEK Q4 2019 Organic Currency Acq/Div Q4 2020 Growth -1% -7% 23% 15% Sales 6,893 -64 -417 1,515 7,927 Operating income 1,125 -21 -52 198 1,251 Operating margin, % 16.3% 32.3% 12.5% 13.1% 15.8% Dilution/accretion -0.1 pts 0.2 pts -0.6 pts 12 months figures Sales 25,553 28,323
Slide 32: Thank you
Thank you assaabloy.com Public