Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q1 2000 Earnings Presentation
19 slides from Assa Abloy Ab Class B's earnings presentation, April 2000
Slide 1: January - March 2000
ASSA ABLOY-gruppen är världsledande tillverkare och leverantör av lås och tillhörande produkter, avsedda för säkerhet, utrymning och bekvämlighet. January-March 2000
Slide 2: First quarter 2000 in summary
First quarter 2000 in summary SEK M 2000 1999 Sales, + 29% 2,976 2,310 Æ Organic growth 6% 2% Æ Acquisitions 22% 6% Æ Exchange rates differences 1% 2% Income before taxes, +44% 284 198 Operating cash flow 288 140
Slide 3: Development 1994 - 2000 per quarter
Development 1994 - 2000 per quarter Sales, SEK M 3500 3000 2500 2000 1500 1000 500 0 94 95 96 97 98 99 00 Income before tax, SEK M 350 300 250 200 150 100 50 0 94 95 96 97 98 99 00
Slide 4: Business review
Business review ¾ Scandinavia (8%) - good growth in Sweden and Norway, weaker in Denmark - multi point locking and electromechanical locking show strongest growth ¾ Finland (17%) - last year’s strong ending continues - growing export of electromechanics and door closers ¾ Germany (9%) - IKON and eff
Slide 5: Business review, cont'd
Business review, cont’d ¾ North America (5%) - stable market - locks and lock products show strongest growth - good development in Mexico ¾ Australia (-) - raising margins - clean out of non core and loss making products - launch of high security cylinders and panic bars from the Group ¾ New markets
Slide 6: Increasing organic growth
Increasing organic growth Sales 2000 Q1 1999 Q1 00/99 % Scandinavia SEK M Assa, Ruko, TrioVing 476 450 8 Finland FIM M Abloy 173 127 17 Germany DEM M IKON, effeff 56 34 9 France FRF M Vachette, JPM 359 294 3 UK GBP M Assa, Abloy 6 5 1 US USD M Sargent, Curries, Medeco 116 108 5 Australia AUD M Lockw
Slide 7: Main events first quarter 2000
Main events first quarter 2000 ¾ Disposal of effeff’s alarm division - Sales of DEM 140 M - price DEM 365 M - Remaining business DEM 140 M - margin over 20% ¾ Disposal of the door division in Mul-T-Lock - remaining locks and cylinder division expected to reach sales of USD 40 M ¾ Remaining 50% in th
Slide 8: Williams' lock division
Williams’ lock division ¾ Global player with strong brand names - Chubb, Tesa and Yale, probably the world’s best known lock brand ¾ Well established in UK, Netherlands, Italy, Spain and North America ¾ Important positions in emerging markets – Yale Guli China - 25 million locks per year - 3,000 emp
Slide 9: Williams' lock division, cont'd
Williams’ lock division, cont’d ¾ Expected sales GBP 520 M ¾ 25 operating units with 14,000 employees – 39% of sales from locks US – 36% of sales from locks Europe – 7% of sales from locks throughout the rest of the world – 18% of sales from the safes business ¾ Expected margins 13-14% after a drop
Slide 10: A world class combination
A world class combination ¾ Complementary geographical coverage – Truly global with almost no overlap ¾ Strategic positions in emerging markets – Leader and major manufacturer in China – Foothold in India / Africa / South America ¾ Global distribution network ¾ Unique opportunities for efficient pro
Slide 11: Further outlook for the Yale acquisition
Further outlook for the Yale acquisition ¾ Increased capacity for joint and innovative R&D - especially electromechanical products ¾ Increased organic growth – New products and market education – Cross sales - potential for a 30 - 40% sales increase ¾ Regain lost margins – This year 13-14% - additio
Slide 12: Global coverage with leading quality brands
Global coverage with leading quality brands
Slide 13: Structure of the deal
Structure of the deal ¾ The price is GBP 825 M - cash and debt free ¾ GBP 618.75 M cash and 19.765 million new B shares in ASSA ABLOY ¾ Cash from new debt facility and SEK 1,500 M rights issue ¾ The take-over requires necessary regulatory approvals
Slide 14: Pro forma financials
Pro forma financials ¾ Combined sales of the group SEK 20 billion (GBP 1.5 billion) ¾ Goodwill up to GBP 600 M - amortised over 20 years ¾ Immediately CEPS accretive - cash positive post capital expenditure ¾ EPS neutral in 2001 - accretive thereafter ¾ Pro forma gearing 119% and equity ratio 38% at
Slide 15: ASSA ABLOY's profile for growth
ASSA ABLOY’s profile for growth Stable organic growth ¾ Trend towards higher security ¾ Security driven - retrofit sales more than half the volume ¾ Electromechanics - cross sales - new markets Stable increasing margins ¾ Improvements in each unit - benchmarking/cross learning Cash flow even stronge
Slide 16: Outlook for 2000
Outlook for 2000 We expect a continued good volume and profit development
Slide 17: ASSA ABLOY income statement and cash flow
ASSA ABLOY income statement and cash flow SEK M Jan-Mar 2000 Jan-Mar 1999 Sales 2,976 2,310 Operating income before goodwill 403 296 amortization Goodwill amortization -60 -38 Financial items -65 -65 Income before tax 284 198 Profit margin 9.5 8.6 Operating cash flow 288 140
Slide 18: ASSA ABLOY key data
ASSA ABLOY key data SEK M Mar 2000 Mar 1999 Capital employed 9,942 7,106 - whereof goodwill 4,224 2,475 Net debt 4,005 4,076 Equity 5,486 3,011 Equity ratio 45.0% 32.9% Interest cover ratio 6.2 4.3 Net debt/equity 0.73 1.35 Return on capital employed excl. goodwill 28.8% 26.1% Return on capital empl
Slide 19: ASSA ABLOY balance sheet
ASSA ABLOY balance sheet SEK M Mar 2000 Dec 1999 Intangible fixed assets 4,366 3,388 Tangible and other fixed assets 3,927 3,810 Current assets 4,907 4,091 Total assets 13,200 11,289 Equity 5,486 5,337 Interest bearing debt 4,272 3,282 Other liabilities 3,442 2,670 Total equity and liabilities 13,20