Slide 1: ASSA ABLOY Q1 interim report 2024
ASSA ABLOY Q1 interim report 2024
Slide 2: Strong execution in a challenging market
Strong execution in a challenging market Sales affected by three fewer working days in March – Stable sales in Entrance Systems – Sales decline in Americas, EMEIA, APAC and Global Technologies Operating income and margin improvement – Price realization – Cost actions – Lower direct material cost
Slide 3: Q1 2024 figures in summary
Q1 2024 figures in summary Sales EBIT* +9% +5% Sales MSEK 35,200 +9% – -2% organic 38 000 6 500 – +11% acquired and divested 36 000 6 000 – +0% currency 34 000 5 500 32 000 EBITA-margin* 16.3% (16.6%) 5 427 5 000 30 000 5 186 EBIT-margin* 15.4% (16.0%) 28 000 4 500 26 000 4 000 EBIT* MSEK 5,
Slide 4: Sales by region Jan-Mar 2024
Sales by region ASSA ABLOY Emerging markets 100 9 -2 13 12 5 Jan-Mar 2024 33 2 -2 53 14 -4 6 4 -3 1 16 16 3 27 8 4 -3 -3 Change in local currencies Organic change Share of sales, % QTD 2023 vs. QTD 2022, % QTD 2023 vs. QTD 2022, % Emerging markets follows IMF’s definition as per 2018-12-31 4
Slide 5: Q1 2024 Market highlights
Q1 2024 Market highlights Project wins and achievements Loading dock solutions delivered to three large distribution and logistics facilities in the US and Europe One million Yale Doorman sold in the Nordic countries since launch in 2011 Large US public university selects electronic access con
Slide 6: FX adjusted sales growth
FX adjusted sales growth % MSEK 30 140 000 25 130 000 20 15 120 000 10 110 000 5 100 000 0 90 000 -5 80 000 -10 -15 70 000 -20 60 000 2019 2020 2021 2022 2023 2024 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6
Slide 7: Operating margin
Operating margin 16.5% EBITA-margin run rate % Run rate: EBIT-margin 15.6% (15.6%) 19 18 17 Long term target range (average) 16 15 14 13 12 11 10 2019 2020 2021 2022 2023 2024 Quarter EBIT* Rolling 12-months EBITA* Rolling 12-months *) Operating margin before amortization of intangible assets recogn
Slide 8: Operating profit
Operating profit Record high +20% in 2023Q1 EBIT MSEK MSEK 6 000 22 500 20 000 5 000 17 500 4 000 15 000 12 500 3 000 10 000 2 000 7 500 5 000 1 000 2 500 0 0 2019 2020 2021 2022 2023 2024 Quarter Rolling 12-months Excluding items affecting comparability 8
Slide 9: Acquisitions
Acquisitions Active pipeline – 3 acquisitions signed in Q1 – Representing annualized sales of MSEK 2,000 9
Slide 10: Integrated Warehouse Solutions
Integrated Warehouse Solutions A US manufacturer of loading dock equipment Complementary product offering and branding to the existing product portfolio Sales of MSEK 1,850 in 2023 Accretive to EPS from the start 10
Slide 11: Opening Solutions EMEIA
Opening Solutions 17% EMEIA of Group sales Organic sales -3% – Strong growth in Middle East/India/Africa 6 500 21% – Stable sales in South Europe 6 000 19% – Sales decline Central Europe, the Nordics and the 5 500 UK/Ireland 17% 5 000 4 500 15% Operating margin 13.7% (13.8%) 4 000 13% – Operatin
Slide 12: Opening Solutions Americas
Opening Solutions 30% of Americas Group sales Organic sales -1% – Stable sales in North America Non-Residential and 12 000 25% Latin America – Significant sales decline in US Residential 11 000 24% 10 000 23% Operating margin 18.1% (21.7%) 9 000 22% – Operating dilution (-30bps) due to sales dec
Slide 13: Opening Solutions Asia Pacific
Opening Solutions 5% Asia Pacific of Group sales Organic sales -3% – Good sales growth in South-East Asia 3 000 15% – Sales decline in Pacific, South Korea and China 10% 2 500 Operating margin 5.1% (4.6%) – Very strong operating leverage (+40bps) due to 5% pricing, positive mix, lower material c
Slide 14: Global Technologies
Global Technologies 15% of Group sales Organic sales -9% – Strong sales growth Citizen ID and Identity & Access 6 000 24% Solutions – Sales decline in Identification Technology, Secure 5 500 22% Issuance and Extended Access 5 000 20% – Significant sales decline in Physical Access Control 4 500 18%
Slide 15: Entrance Systems
Entrance Systems 32% of Group sales Organic sales +0% – Very strong sales growth in Perimeter Security 13 000 18% – Strong sales growth in Pedestrian – Sales decline in Industrial and Residential 12 000 17% 11 000 16% – Good growth in service 10 000 15% 9 000 Operating margin 17.0% (16.2%) 14% –
Slide 16: Financial summary
FX & acquisition ‘run-rate’ effects in Q2 2024 Financial summary (31 March 2024): SALES FX: -1% M&A: 12% January - March SEK M 2023 2024* Sales 32,391 35,200 9% - Organic growth 2,218 -762 -2% - Acquired net growth 1,344 3,607 11% - FX-differences 2,237 -35 0% Operating income (EBIT)* 5,186 5,427 5%
Slide 17: Bridge analysis – Q1 2024
Bridge analysis – Q1 2024 MSEK Q1 2023 Organic Currency Acq/div Q1 2024 Growth 22% -2% 0% 11% 9% Sales 32,391 -762 -35 3,607 35,200 Operating income* 5,186 -175 54 362 5,427 Operating margin, %* 16.0% 23% 153% 10% 15.4% Dilution/accretion -0.2 pts 0.2 pts -0.6 pts *Excluding items affecting comparab
Slide 18: Cost breakdown as % of sales – Q1 2024
Cost breakdown as % of sales – Q1 2024 QTD 2024 % QTD 2023 excl. acq/div Δ QTD 2024 Direct material -35.2% -32.6% +2.6 pts -33.9% Conversion cost -23.5% -25.0% -1.5 pts -24.8% Gross margin 41.3% 42.4% +1.1 pts 41.3% S, G & A -25.3% -26.4% -1.1 pts -25.9% EBIT* 16.0% 16.0% 0 pts 15.4% *Excluding item
Slide 19: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months cash flow / EBT = 125% 12 months 8 000 26 000 23 500 7 000 21 000 6 000 18 500 5 000 16 000 13 500 4 000 11 000 3 000 8 500 6 000 2 000 3 500 1 000 1 000 0 -1 500 2019 2020 2021 2022 2023 2024 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 month
Slide 20: Gearing % and net debt, MSEK
Gearing % and net debt, MSEK Net debt/EBITDA** 2.4 (1.2) Net debt Net debt/Equity 68% (33%) Gearing % 80 000 80 70 000 70 60 000 60 50 000 50 40 000 40 30 000 30 20 000 20 10 000 10 0 0 2019* 2020 2021 2022 2023 2024 Net debt, MSEK Gearing, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding i
Slide 21: Earnings per share, SEK
Earnings per share, SEK Quarter 12 months 4,00 16 3,50 14 3,00 12 2,50 10 2,00 8 1,50 6 1,00 4 0,50 2 2019 2020 2021 2022 2023 2024 Quarter, SEK Rolling 12 months, SEK Excluding items affecting comparability 21
Slide 22: Conclusions
Conclusions Strong execution in a challenging market – Negative organic sales Three working days less in March – Net acquired growth of 11% – Record-high underlying Q1-margin Uncertain economic climate – Take advantage of opportunities – Agility and efficiency CMD 14-15 May 2024 in Prague/Ry
Slide 23: Experience a safer and more open world
Experience a safer and more open world The ASSA ABLOY Group is the global leader inaccess solutions. Every day we help people feel safe, secure and experience amore open world. ASSA ABLOY
Slide 24: Appendix
Appendix
Slide 25: Cost breakdown as % of sales
Cost breakdown as % of sales QTD 2024 % QTD 2023 excl. acq/div Δ QTD 2024 Direct material -35.2% -32.6% +2.6 pts -33.9% Conversion cost -23.5% -25.0% -1.5 pts -24.8% Gross margin 41.3% 42.4% +1.1 pts 41.3% S, G & A -25.3% -26.4% -1.1 pts -25.9% EBIT* 16.0% 16.0% 0 pts 15.4% Excluding MFP restructuri
Slide 26: Opening Solutions EMEIA's bridge
Opening Solutions EMEIA’s bridge MSEK Q1 2023 Organic Currency Acq/Div Q1 2024 Growth 17% -3% 1% 2% 0% Sales 6,229 -203 45 145 6,216 Operating income* 858 -62 22 32 850 Operating margin, %* 13.8% 30.6% 49.0% 22.1% 13.7% Dilution/accretion -0.5% 0.2% 0.2% 12 months figures Sales 23,778 24,818 EBIT* 3
Slide 27: Opening Solutions Americas' bridge
Opening Solutions Americas’ bridge MSEK Q1 2023 Organic Currency Acq/Div Q1 2024 Growth 26% -1% 0% 35% 34% Sales 7,861 -75 11 2,735 10,532 Operating income* 1,707 -49 0 253 1,910 Operating margin, %* 21.7% 65.8% -0.8% 9.2% 18.1% Dilution/accretion -0.3% -0.2% -3.1% 12 months figures Sales 29,964 40,
Slide 28: Opening Solutions Asia Pacific's bridge
Opening Solutions Asia Pacific’s bridge MSEK Q1 2023 Organic Currency Acq/Div Q1 2024 Growth 28% -3% -3% -9% -15% Sales 2,411 -68 -84 -211 2,048 Operating income* 111 5 11 -22 105 Operating margin, %* 4.6% -7.5% -13.4% 10.3% 5.1% Dilution/accretion 0.4% 0.6% -0.5% 12 months figures Sales 10,356 9,92
Slide 29: Global Technologies' bridge
Global Technologies’ bridge MSEK Q1 2023 Organic Currency Acq/Div Q1 2024 Growth 38% -9% 0% 6% -3% Sales 5,582 -480 -22 354 5,433 Operating income* 939 -138 -5 43 839 Operating margin, %* 16.8% 28.6% 22.3% 12.0% 15.4% Dilution/accretion -1.1% -0.1% -0.2% 12 months figures Sales 20,875 22,951 EBIT* 3
Slide 30: Entrance Systems' bridge
Entrance Systems’ bridge MSEK Q1 2023 Organic Currency Acq/Div Q1 2024 Growth 14% 0% 1% 3% 4% Sales 11,037 36 -2 372 11,442 Operating income* 1,786 83 19 56 1,944 Operating margin, %* 16.2% 232.9% -919.0% 15.1% 17.0% Dilution/accretion 0.7% 0.2% -0.1% 12 months figures Sales 44,312 47,071 EBIT* 7,07
Slide 31: Thank you
Thank you assaabloy.com