Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q3 2021 Earnings Presentation
32 slides from Assa Abloy Ab Class B's earnings presentation, 2021
Slide 1: ASSA ABLOY Q3 interim report 2021
ASSA ABLOY Q3 interim report 2021
Slide 2: Strong profitable sales growth
Strong profitable sales growth ▪ Organic sales development – Very strong sales growth in Americas and Entrance Systems – Strong sales growth in EMEIA and Global Technologies – Declining sales in APAC ▪ Strong underlying EBIT improvement – Despite higher material and logistic costs ▪ Five acquisition
Slide 3: Q3 2021 figures in summary
Q3 2021 figures in summary ▪ Sales MSEK 23,930 +8% Sales EBIT* – +7% organic +8% +7% – +2% acquired and divested 24,000 4,000 – - 1% currency 23,000 3,800 ▪ Adj. EBITA-margin* 15.6% (15.7%) 22,000 3,600 ▪ Adj. EBIT-margin* 15.0% (15.0%) 21,000 3,588 3,400 ▪ Adj. EBIT* MSEK 3,588 +7% 20,000 3,341 3,2
Slide 4: Sales by region Jul-Sep 2021
Sales by region ASSA ABLOY 100 9 7 Emerging markets 16 3 1 Jul-Sep 2021 37 11 8 45 13 13 10 -12 -11 1 2 2 3 44 36 4 2 1 Change in local currencies Organic change Share of sales, % QTD 2021 vs. QTD 2020, % QTD 2021 vs. QTD 2020, % Emerging markets comprise follows IMF’s definition as per 2018-12-31 4
Slide 5: Market highlights
Market highlights ▪ Project wins – Several critical infrastructure project wins to secure water and transport infrastructure sites in the UK and Australia – eCLIQ frame contract signed with E.ON. in Germany including 30,000 locking points – Energy saving door solution for a main US distribution cust
Slide 6: FX adjusted sales growth
FX adjusted sales growth % MSEK 30 95,000 25 90,000 20 15 85,000 10 80,000 5 75,000 0 -5 70,000 -10 65,000 -15 -20 60,000 2016 2017 2018 2019 2020 2021 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6
Slide 7: Operating margin
Operating margin % Run rate: EBIT-margin 14.7% (14.0%) % 19 19 18 18 17 Long term target range (average) 17 16 16 15 15 14 14 13 13 12 12 11 11 10 10 9 9 8 8 2016 2017 2018 2019 2020 2021 Quarter EBIT Rolling 12-months EBITA* Rolling 12-months Excluding items affecting comparability. *) Operating ma
Slide 8: Operating profit
Operating profit MSEK MSEK, 12 months 4,500 16,000 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 2016 2017 2018 2019 2020 2021 Quarter Rolling 12-months *) Excluding China write-downs, restructuring items, a positive revaluation of agta record 8
Slide 9: Acquisitions
Acquisitions ** ▪ Active pipeline – 3 acquisitions completed in Q3 ** Invengo Textile Services – 9 acquisitions completed in 2021 * – Acquired annualized sales of MSEK 800 * Traka distributer in Iberia ▪ Additional acquisitions to be closed – MR Group and Arran Isle ▪ Sales of MSEK 1,400 ▪ Transacti
Slide 10: Acquisition of the Hardware and Home Improvement division of Spectrum Brands
Acquisition of the Hardware and Home Improvement division of Spectrum Brands Key highlights Revenue Breakdown (locksets) ▪ 7,500 employees with headquarters in Lake Forest, Aftermarket Electromechanical California, with an attractive manufacturing footprint ~75% New construction ~20% ~25% ▪ Strong p
Slide 11: Strong strategic rationale for the acquisition
Strong strategic rationale for the acquisition ▪ Strategic step in developing ASSA ABLOY’s residential business in North America with complementary products and technology ▪ Opportunity to transition large existing mechanical customer base to digital solutions ▪ Strong position in residential DIY re
Slide 12: Opening Solutions EMEIA
Opening Solutions 21% EMEIA of Group sales ▪ Organic sales +7% 6,000 18% – Very strong sales growth in Finland, France and 16% Middle East/Africa/India 5,500 – Strong sales growth in Benelux, DACH, Eastern 14% 5,000 Europe and the UK 12% – Stable sales growth in Scandinavia and South Europe 4,500 10
Slide 13: Opening Solutions Americas
Opening Solutions 22% of Americas Group sales ▪ Organic sales +14% 6,500 24% – Very strong sales growth in Access & High Security, Architectural Hardware, Electromechanical Solutions, 6,000 23% Latin America, Security Doors, US Residential and US Smart Residential 5,500 22% – Strong sales growth in
Slide 14: Opening Solutions Asia Pacific
Opening Solutions 8% Asia Pacific of Group sales ▪ Organic sales -7% 3,000 20% – Stable sales in South Korea – Sales declined in Pacific 15% – Significantly sales decline in South East Asia and 2,500 China 10% 5% 2,000 0% ▪ Operating margin 5.8% (7.4%) – Negative operating leverage (-150 bps) due to
Slide 15: Global Technologies
Global Technologies 15% of Group sales ▪ Organic sales +7% – Very strong sales growth in Identification Technology 4,500 24% and Extended Access 4,000 22% – Strong sales growth in Physical Access Control and Secure Issuance 3,500 20% – Sales declined in Identity & Access Solutions 3,000 18% – Signif
Slide 16: Entrance Systems
Entrance Systems 34% of Group sales ▪ Organic sales +10% 8,500 18% – Very strong sales growth in Residential and Perimeter Security 8,000 17% – Strong sales growth in Pedestrian and Industrial 7,500 16% 7,000 – Good sales growth in service 6,500 15% ▪ Operating margin 14.8% (17.8%) 6,000 14% – Very
Slide 17: Financial summary, Q3 2021
FX & acquisition ‘run-rate’ effects in Q3 2021 Financial summary, Q3 2021 (30 September 2021): SALES FX: +1% M&A: -1% July-September January-September SEK M 2020 2021 Δ 2020 2021 Δn Sales 22,225 23,930 8% 64,351 69,384 8% - Organic growth -1,043 1,576 +7% -6,001 6,661 11% - Acquired net growth 816 4
Slide 18: Bridge analysis – Q3 2021
Bridge analysis – Q3 2021 MSEK Q3 2020 Organic Currency Acq/Div Q3 2021 Growth 7% -1% 2% 8% Sales 22,225 1,576 -361 490 23,930 Operating profit* 3,593 341 -120 -421 3,392 Operating margin, %* 16.2% 21.6% 33.2% -86% 14.2% Dilution/accretion 0.5 pts -0.4 pts -2.1 pts Sales increase driven by volume ▪
Slide 19: Cost breakdown as % of sales Jul-Sep
Cost breakdown as % of sales Jul-Sep QTD 2021 % QTD 2020 excl. acq/div Δ QTD 2021 Direct material -35.5% -36.1% -0.6 pts -35.9% Conversion cost -23.9% -23.9% +0.0 pts -24.3% Gross margin 40.6% 40.0% -0.6 pts 39.8% S, G & A -24.4% -23.7% +0.7 pts -25.6% EBIT 16.2% 16.3% +0.1 pts 14.2% • Operating mar
Slide 20: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months 6,000 12 months cash flow / EBT = 118% 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 2016 2017 2018 2019 2020 2021 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 months, MSEK Excluding MFP re
Slide 21: Gearing % and net debt, MSEK
Gearing % and net debt, MSEK Net debt/EBITDA** 1.5 (2.2) Net debt Debt/Equity 38% (56%) Gearing 40,000 80 35,000 70 30,000 60 25,000 50 20,000 40 15,000 30 10,000 20 5,000 10 0 0 2016 2017 2018 2019* 2020 2021 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 3.00 10.00 2.75 9.00 2.50 8.00 2.25 7.00 2.00 1.75 6.00 1.50 5.00 1.25 4.00 1.00 3.00 0.75 0.50 2.00 2016 2017 2018 2019 2020 2021 Quarter, SEK Rolling 12 months, SEK Excluding restructuring items, impairment of intangible assets in China and a positive reva
Slide 23: Conclusions
Conclusions ▪ Strong profitable sales growth – Organic sales up 7% – Adjusted operating margin of 15.0% ▪ Strong operating cash flow ▪ Focus on profitable growth ▪ Focus on offsetting challenging operating environment – Higher material costs – Higher logistic costs – Component shortages 23
Slide 24: Experience a safer and more open world
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
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Slide 26: Cost breakdown as % of sales
Cost breakdown as % of sales QTD 2021 YTD 2021 excl. excl. % QTD 2020* acquisitions Δ QTD 2021 YTD 2020* acquisitions Δ YTD 2021 Direct material -35.5% -36.1% -0.6 pts -35.9% -35.0% -35.3% -0.3 pts -35.1% Conversion cost -23.9% -23.9% +0.0 pts -24.3% -25.1% -24.5% +0.6 pts -25.0% Gross margin 40.6%
Slide 27: Opening Solutions EMEIA’s bridge
Opening Solutions EMEIA’s bridge MSEK Q3 2020 Organic Currency Acq/Div Q3 2021 Growth 7% -1% -1% 5% Sales 4,824 330 -55 -55 5,044 Operating income 765 46 -24 -215 572 Operating margin, % 15.9% 13.9% 44.0% 388.6% 11.3% Dilution/accretion 0.2 pts -0.7 pts -4.1 pts 12 months figures Sales 19,264 20,579
Slide 28: Opening Solutions Americas’ bridge
Opening Solutions Americas’ bridge MSEK Q3 2020 Organic Currency Acq/Div Q3 2021 Growth 14% -3% 2% 13% Sales 4,779 664 -115 73 5,400 Operating income 966 155 -18 10 1,112 Operating margin, % 20.2% 23.3% 15.8% 13.5% 20.6% Dilution/accretion 0.4 pts 0.1 pts -0.1 pts 12 months figures Sales 20,347 19,5
Slide 29: Opening Solutions Asia Pacific’s bridge
Opening Solutions Asia Pacific’s bridge MSEK Q3 2020 Organic Currency Acq/Div Q3 2021 Growth -7% 1% -2% -8% Sales 2,479 -167 11 -52 2,271 Operating income 183 -46 -12 8 132 Operating margin, % 7.4% 27.9% -106.9% -14.6% 5.8% Dilution/accretion -1.5 pts -0.6 pts 0.5 pts 12 months figures Sales 9,100 8
Slide 30: Global Technologies’ bridge
Global Technologies’ bridge MSEK Q3 2020 Organic Currency Acq/Div Q3 2021 Growth 7% -2% 3% 8% Sales 3,428 233 -48 92 3,705 Operating income 550 67 -26 -5 585 Operating margin, % 16.0% 28.8% 55.7% -5.9% 15.8% Dilution/accretion 0.9 pts -0.6 pts -0.5 pts 12 months figures Sales 14,991 14,192 EBIT 2,24
Slide 31: Entrance Systems’ bridge
Entrance Systems’ bridge MSEK Q3 2020 Organic Currency Acq/Div Q3 2021 Growth 10% -3% 6% 13% Sales 7,116 661 -152 433 8,058 Operating income 1,266 184 -39 -219 1,191 Operating margin, % 17.8% 27.8% 25.8% -50.5% 14.8% Dilution/accretion 1.2 pts -0.5 pts -3.7 pts 12 months figures Sales 27,288 31,491
Slide 32: Thank you
Thank you assaabloy.com