Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — H1 2001 Earnings Presentation
21 slides from Assa Abloy Ab Class B's earnings presentation, June 2001
Slide 1: Interim report January - June 2001
The ASSA ABLOY Group is the world’s leading manufacturer and supplier of locks and associated products, dedicated to satisfying end-user needs for security, safety and convenience. Interim report January - June 2001
Slide 2: Six months Financial highlights 2001
Six months Financial highlights 2001 SEK M 2001 2000 Sales, + 74% 10,587 6,079 Æ Organic growth 4% 5% Æ Acquisitions 61% 18% Æ Exchange rate differences 9% 1% Income before taxes, + 25% 765 610 EPS, + 13% (SEK) 1.41 1.25 EPS excl. goodwill, + 55% (SEK) 2.56 1.65 Operating cash flow 825 695
Slide 3: Development 1994 - 2001 per Quarter
Development 1994 - 2001 per Quarter 6000 Sales, SEK M 5000 4000 3000 2000 1000 0 94 95 96 97 98 99 00 01 450 Income before tax, SEK M 400 350 300 250 200 150 100 50 0 94 95 96 97 98 99 00 01
Slide 4: General Development
General Development ¾ Continued good development in US - institutional segment remains stable ¾ Uncertainty in European markets - distributors adjust inventories ¾ Continued strong development in new markets ¾ Down-turn in technology and IT industries has led to temporary slowdown in the electronic
Slide 5: Business review
Business review ¾ Scandinavia (2%) - good development in Sweden - softer markets in Norway and Denmark - costs being adjusted - integration of Sloth&Co in Denmark proceeds - merge of inventories - joint sales force being established ¾ Finland (1%) - cautious domestic market - inventory adjustments i
Slide 6: Business review, cont’d
Business review, cont’d ¾ South Europe (5%) - Yale Italy improving profits above expectations - MAB a strong addition - Spain and Belgium growing faster - JPM doubles panic device cross-sales ¾ Great Britain (8%) - strong increase in old units - Yale integration proceeds according to plan - new bran
Slide 7: Business review, cont’d
Business review, cont’d ¾ Australia (-1%) - cross-sales compensating for weak market - signs of market recovery - stronger autumn expected ¾ New markets (20%) - strong growth continues - Mul-T-Lock in the lead - encouraging development in South Africa - acquisition of Viro brings synergies and re-en
Slide 8: Six months Organic growth per area
Six months Organic growth per area Sales 2001 2000 01/00 % Scandinavia SEK M Assa, Ruko, TrioVing 990 945 2 Finland EUR M Abloy 63 63 1 Central Europe EUR M IKON, effeff, Lips, Keso 71 62 4 South Europe EUR M Vachette, JPM, Litto, Yale 156 124 5 UK GBP M Union, Chubb, Yale, Assa 54 11 8 North Americ
Slide 9: Main events Q2 2001
Main events Q2 2001 ¾ Acquisition of MAB - sales of Euro 18 M – Italian market leader in floor spring door closers - high profitability – Strengthens the Italian product package and position – Considerable cross-sales opportunities ¾ Acquisition of Viro Locks - sales of SEK 130 M – Leading South Afr
Slide 10: Main events Q2 2001 cont’d
Main events Q2 2001 cont’d ¾ Acquisition of KESO completed June 01 – Leading Swiss cylinder manufacturer - sales of CHF 50 M – Flat key concept - cross sales opportunities ¾ UDP joint venture completed June 01 – UDP is a leading security door manufacturer with sales of USD 180 M and good profitabili
Slide 11: Outlook
Outlook We expect a continued good development in volume and profit for the remaining part of 2001 and years to come
Slide 12: ASSA ABLOY Six months income statement and cash flow
ASSA ABLOY Six months income statement and cash flow SEK M 2001 2000 Sales 10,587 6,079 Operating income before goodwill 1,511 844 amortization (EBITA) EBITA % 14.3 13.9 Goodwill amortization -411 -130 Financial items -339 -114 Income before taxes 765 610 Profit margin (EBT) % 7.2 10.0 Operating cas
Slide 13: ASSA ABLOY key data
ASSA ABLOY key data SEK M 30 June 31 Dec. 2001 2000 Capital employed 25,979 19,757 - whereof goodwill 15,853 12,078 Net debt 14,026 8,560 Equity 11,516 10,637 Equity ratio 37.0% 43.1% Interest cover ratio 3.2 5.5 Net debt/equity 1.22 0.80 Return on capital employed excl. goodwill 34.1% 34.3% Return
Slide 14: ASSA ABLOY balance sheet
ASSA ABLOY balance sheet SEK M 30 June 31 Dec. 2001 2000 Intangible fixed assets 16,055 12,259 Tangible and other fixed assets 6,186 5,252 Current assets 10,030 8,496 Total assets 32,271 26,007 Equity 11,516 10,637 Interest bearing debt 15,569 10,330 Other liabilities 5,186 5,040 Total equity and li
Slide 15: Introduction to ASSA ABLOY
Introduction to ASSA ABLOY ¾ The world’s no 1 locks manufacturer with sales over SEK 23 billion ¾ Global market share around 10% ¾ Compounded average growth rate 1994-2000 – Sales 26% – EPS 53% ¾ Management ownership and benchmarking process ensure strong focus on EPS growth
Slide 16: The locks market characteristics
The locks market characteristics ¾ Local market leaders - large installed base – Local differences and standards ¾ Stable organic growth - 2-3% over GDP – Trend towards higher security – Retrofit more than half the sales (counter cyclical) ¾ Electromechanics growing in importance - adds intelligence
Slide 17: ASSA ABLOY’s strategy
ASSA ABLOY’s strategy ¾ General – Focus on the lock business – Lead the trend towards higher security – Focus on EPS - employees shareholders ¾ Mature markets – Multidomestic/acquisitions/local brands – Benchmarking/cross learning – Synergies/cross selling ¾ Emerging markets – Joint efforts/organic
Slide 18: The development of the ASSA ABLOY Group 1994 - 2001 (SEK M)
The development of the ASSA ABLOY Group 1994 -2001 (SEK M) Total sales 1994 3 500 35 acquisitions (94-01) +17 000 3 divestitures -1 000 Organic growth +3 500 Proforma sales 2001 +23 000
Slide 19: Important key data
Important key data Income before taxes and Earnings per share and operating cash flow Return on capital employed MSEK 1800 SEK EPS Cash flow 1600 Income 3,5 ROCE 35% ROCE excl. GW 1400 3 30% 1200 2,5 25% 1000 2 20% 800 1,5 15% 600 1 10% 400 200 0,5 5% 0 0 0% 94 95 96 97 98 99 00 94 95 96 97 98 99 00
Slide 20: Global coverage with strong brands
Global coverage with strong brands
Slide 21: Our way of working
Our way of working Developing our companies step by step Leading the trend towards higher security Electromechanics growing in importance