Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q3 2002 Earnings Presentation
23 slides from Assa Abloy Ab Class B's earnings presentation, 2002
Slide 1: Interim report Third Quarter 2002
The ASSA ABLOY Group is the world’s leading manufacturer and supplier of locking solutions, dedicated to satisfying end-user needs for security, safety and convenience. Interim report Third Quarter 2002
Slide 2: ASSA ABLOY's ambition is to provide the best locking solutions
ASSA ABLOY’s ambition is to provide the best locking solutions, making the world safer and more secure The ASSA ABLOY Group includes 50 of the world’s top locking brands. We employ around 30,000 highly skilled men and women in more than 100 companies. And we are present in 130 countries. Our annual
Slide 3: Third quarter highlights
Third quarter highlights ¾ Pretax profit increased 28% to SEK 523 M in Q3 ¾ Strong EBITA-margin improvement, increased 0,9% to 14,5 % over Q2 ¾ 3% organic growth in Q3 – US stable – slight upturn in Germany – strong growth, 12% in New Markets and 13% South Pacific ¾ Strong operating cash flow SEK 1,
Slide 4: Financial highlights 2002
Financial highlights 2002 SEK M Third Quarter Year to date 2002 2001 02/01 2002 2001 02/01 Sales 6,459 5,717 13% 19,008 16,304 17% Organic growth Æ 3% 2% Acquisitions Æ 17% 17% Exchange rate Æ -7% -2% differences EBITA - margin 14.5 13.9 14.0 14.2 Income before taxes 523 408 28% 1,468 1,173 25% Æ Ex
Slide 5: Development 1994 - 2002 per quarter (SEK M)
Development 1994 - 2002 per quarter (SEK M) 7000 500 Sales Income before tax 450 6000 400 5000 350 4000 300 250 3000 200 2000 150 100 1000 50 0 0 94 95 96 97 98 99 00 01 02 94 95 96 97 98 99 00 01 02
Slide 6: Development 1994-2002 per quarter
Development 1994-2002 per quarter SEK M Income before tax Op Cashflow 16 1000 EBITA Margin % 14 900 800 12 Yale 700 10 UDP Medeco TESA 600 8 500 Vachette 6 400 ESSEX Lockwood 300 4 200 2 100 0 0 94 95 96 97 98 99 00 01 02 94 95 96 97 98 99 00 01 02
Slide 7: Business review
Business review ¾ Scandinavia (6% Q3, 4% ytd) – good development in Q3 - increasing margins – strong security driven growth in Norway – product launches in Sweden expected to accelerate growth ¾ Finland (0% Q3, 1% ytd) – growing export but domestic market still soft – new high security cylinder laun
Slide 8: Business review, cont'd
Business review, cont’d ¾ South Europe (2% Q3, 2% ytd) – continued good development in France – Spanish TESA improving quickly from the loss of hotel components – stronger quarter in Italy while Belgium still slow ¾ Great Britain (0% Q3, 1% ytd) – at its turning point – new product launches with gre
Slide 9: Business review, cont'd
Business review, cont’d ¾ South Pacific (13% Q3, 9% ytd) – impressive business and margin development in Lockwood and Interlock – growing US and Asian exports ¾ New markets (12% Q3, 2% ytd) – strong growth pick up in the quarter – East Europe, South Africa and Brazil develops well – acquisition of P
Slide 10: Organic Growth per Area
Organic Growth per Area Sales Q3 Q3 02 / 01 YTD YTD 02 / 01 2002 2001 % 2002 2001 % Scandinavia SEK M Sweden, Norway, Denmark 461 444 6 1,454 1402 4 Finland EUR M 29 30 0 93 93 1 Central Europe EUR M Germany, Holland, Switzerland 45 42 1 132 113 -1 South Europe EUR M France, Italy, Spain, Belgium 88
Slide 11: Outlook 2002
Outlook 2002 The development potential for ASSA ABLOY is substantial – the company’s strong position – the security-driven growth – the increased demand for convenient locking solutions – the potential for continued rationalization – the ongoing consolidation of the industry create opportunities for
Slide 12: ASSA ABLOY Income statement and cash flow
ASSA ABLOY Income statement and cash flow SEK M Q3 Q3 YTD YTD 2002 2001 2002 2001 Sales 6,459 5,717 19,008 16,304 Operating income before goodwill 933 797 2,663 2,308 amortization (EBITA) EBITA % 14.5 13.9 14.0 14.2 Goodwill amortization -247 -218 -711 -629 Financial items -165 -171 -490 -510 Income
Slide 13: ASSA ABLOY key data
ASSA ABLOY key data SEK M 30 Sept 31 Dec 2002 2001 Capital employed 28,034 27,861 - whereof goodwill 16,956 16,371 Net debt 15,116 15,534 Equity 12,517 11,846 Equity ratio 36.9% 35.6% Interest cover ratio 3.9 3.5 Net debt/equity 1.21 1.31 Operating return on capital employed 13.0% 13.3% Return on ca
Slide 14: ASSA ABLOY balance sheet
ASSA ABLOY balance sheet SEK M 30 Sept 31 Dec. 2002 2001 Intangible fixed assets 17,124 16,558 Tangible and other fixed assets 7,072 7,508 Current assets 10,797 10,603 Total assets 34,993 34,669 Equity 12,517 11,846 Interest bearing debt 16,813 17,278 Other liabilities 5,663 5,545 Total equity and l
Slide 15: Introduction to ASSA ABLOY
Introduction to ASSA ABLOY ¾ The world’s no 1 provider of locking solutions with annual sales approximately EUR 3 billion ¾ Global market share around 10% ¾ Compounded average growth rate 1994-2001 – Sales 30% – EPS 46% ¾ Management ownership and benchmarking process ensure strong focus on EPS growt
Slide 16: How we see the locks business
How we see the locks business ¾ Mature business – strong local standards, leaders and brands – barriers of entry ¾ Majority of sales to existing buildings – creates stability and recurring revenue ¾ Trend towards higher security – increasing need to protect life and property ¾ Growing intelligent lo
Slide 17: ASSA ABLOY's strategy
ASSA ABLOY’s strategy ¾ General – focus on locking solutions – lead the trend towards higher security – focus on EPS and cash flow ¾ Mature markets – multidomestic/acquisitions/local brands – benchmarking/cross learning – synergies/cross selling ¾ New markets – local leadership - organic growth – lo
Slide 18: Our step by step Group development process
Our step by step Group development process ¾ Establish a global platform – local strength and pride – acquire strong local positions and brands - add areas of expertise – significant installed base with recurring revenue – develop operational excellence – benchmarking ¾ Leverage Group synergies – wi
Slide 19: Our development since 1994 (MSEK)
Our development since 1994 (MSEK) MSEK Income before tax Cash flow Total sales 1994 3 500 2000 45 acquisitions +19 500 1500 – 100 companies Organic growth +4 000 1000 Proforma sales 2002 +27 000 500 0 94 95 96 97 98 99 00 01
Slide 20: Our way of working
Our way of working – Leading the trend towards higher security
Slide 21: Our way of working
Our way of working – Developing our companies step-by-step
Slide 22: Our endorsement brand strategy
Our endorsement brand strategy – global coverage with strong local brands
Slide 23: Financial goal for ASSA ABLOY
Financial goal for ASSA ABLOY – a five year perspective (excl. new acquisitions) 20% return on capital employed (including goodwill and amortizations) through – organic growth 2% above GDP over a business cycle – 2-3% margin improvement • stand alone improvement through local operation excellence •