dormakaba Holding AG · SIX:DOKA
dormakaba — FY2019/20 Earnings Presentation
36 slides from dormakaba's earnings presentation, Sep 3, 2020
Slide 1: Full-year results 2019/20
Riet Cadonau, Chairman & CEO Bernd Brinker, CFO Zurich/Switzerland, 3 September 2020 Full-year results 2019/20 (1 July 2019 – 30 June 2020)
Slide 2: Agenda
Agenda Full-year results 2019/20 at a glance Slide 3 Riet Cadonau Sustainable investments Slide 12 Riet Cadonau Financial results and outlook Slide 17 Bernd Brinker 2 Presentation on full-year results 2019/20 3 September 2020
Slide 3: Crisis management priorities
Full-year results 2019/20 at a glance Crisis management priorities $ Health & Safety Supply chain “Cash is King” • Protect employees • Ensure business continuity • Ensure liquidity at all times • Support employees, e.g. to adapt • Continuous premium services • Focus on cash flow, e.g. trade to new w
Slide 4: Sales and profit impacted by Covid-19 pandemic, stronger operating cash flow
Full-year results 2019/20 at a glance Sales and profit impacted by Covid-19 pandemic, stronger operating cash flow • Net sales of CHF 2,539.8 million (previous year CHF 2,818.3 million) • Organic sales decrease of 6.9% • EBITDA at CHF 325.0 million (previous year CHF 448.0 million), EBITDA margin 12
Slide 5: AS AMER: Organic sales and profitability heavily impacted by Covid-19 pandemic
Full-year results 2019/20 at a glance AS AMER: Organic sales and profitability heavily impacted by Covid-19 pandemic CHF million FY 2019/20 FY 2018/19 • Organic growth in the first half of FY 2019/20, Total segment sales 755.3 816.7 sales heavily influenced by the Covid-19 Third-party sales 720.4 78
Slide 6: AS APAC: Despite strong negative impact from Covid-19 pandemic on sales, EBITDA margin kept at a good level
Full-year results 2019/20 at a glance AS APAC: Despite strong negative impact from Covid-19 pandemic on sales, EBITDA margin kept at a good level CHF million FY 2019/20 FY 2018/19 • Second half of FY 2019/20 heavily impacted by Total segment sales 402.4 462.3 the Covid-19 pandemic, major impact in t
Slide 7: AS DACH: Overall negative impact from Covid-19 pandemic
Full-year results 2019/20 at a glance AS DACH: Overall negative impact from Covid-19 pandemic CHF million FY 2019/20 FY 2018/19 • Switzerland with organic growth in FY 2019/20, Total segment sales 791.9 863.0 sales in the German market slightly above and in Austria below last year’s level Third-part
Slide 8: AS EMEA: Sales and profitability negatively impacted by Covid-19 pandemic
Full-year results 2019/20 at a glance AS EMEA: Sales and profitability negatively impacted by Covid-19 pandemic • Organic growth in the first nine months of CHF million FY 2019/20 FY 2018/19 FY 2019/20; sales dropped substantially in Total segment sales 696.1 777.8 the fourth quarter due to Covid-19
Slide 9: Key & Wall Solutions: Despite strong negative impact from Covid-19 pandemic on sales, EBITDA margin kept at a good level
Full-year results 2019/20 at a glance Key & Wall Solutions: Despite strong negative impact from Covid-19 pandemic on sales, EBITDA margin kept at a good level Business Unit Key Systems: CHF million FY 2019/20 FY 2018/19 Total segment sales 351.4 401.9 • Heavily impacted by the Covid-19 pandemic in t
Slide 10: Changes in the Executive Committee
Full-year results 2019/20 at a glance Changes in the Executive Committee Steve Bewick – COO AS EMEA • COO AS EMEA as of 1 January 2020 • 53 years of age, UK citizen • Joined dormakaba in 2008 and held various management and leadership positions with an impressive performance history at the company A
Slide 11: Agenda
Agenda Full-year results 2019/20 at a glance Slide 3 Riet Cadonau Sustainable investments Slide 12 Riet Cadonau Financial results and outlook Slide 17 Bernd Brinker 11 Presentation on full-year results 2019/20 3 September 2020
Slide 12: Selection of products launched in FY 2019/20
Sustainable investments Selection of products launched in FY 2019/20 • Further development of this new generation of sensor barrier which is based on the company’s XEA design language and offers various Argus features for more convenience while at the same time providing the same high level of safet
Slide 13: dormakaba well positioned to address demand in a post Covid-19 world
Sustainable investments dormakaba well positioned to address demand in a post Covid-19 world Smart and secure touchless access… … In attractive verticals such as healthcare Facial recognition & temperature screening Hygienic and user-centric access Sensor & remote opening solutions Automatic doors T
Slide 14: Sustainability progress in the financial year 2019/20 in strategic focus areas
Sustainable investments Sustainability progress in the financial year 2019/20 in strategic focus areas Emissions avoided through green electricity purchase 16,400 Environmental Product Declarations published 13 and energy efficiency tonnes CO2 ISO 14001 certified manufacturing sites 36% 50% Products
Slide 15: dormakaba awarded gold medal for sustainability management from EcoVadis
Sustainable investments dormakaba awarded gold medal for sustainability management from EcoVadis EcoVadis, a leading provider for monitoring sustainability in global supply chains, has rated dormakaba in the top 5% for sustainability management in its assigned sector. • Third-party assessment covers
Slide 16: Agenda
Agenda Full-year results 2019/20 at a glance Slide 3 Riet Cadonau Sustainable investments Slide 12 Riet Cadonau Financial results and outlook Slide 17 Bernd Brinker 16 Presentation on full-year results 2019/20 3 September 2020
Slide 17: Key figures
Financial results and outlook Key figures • Covid-19 pandemic overshadows financial CHF million (except where indicated) FY 2019/20 FY 2018/19 Variance results for FY 2019/20, starting from February Net sales 2,539.8 2,818.3 -9.9% 2020 • Organic sales growth of -6.9% - thereof: organic sales growth
Slide 18: Sales development
Financial results and outlook Sales development 2,818.3 2,714.0 • Organic growth of -6.9% due to Covid-19 related H2 business environment, -104.3 all segments impacted • Negative impact on net sales from currency translation (-3.7%) due to stronger CHF against all major business portfolio currencies
Slide 19: EBITDA development
Financial results and outlook EBITDA development 448.0 432.0 -16.0 • EBITDA decreased by CHF 123.0 million vs PY (-27.5%), mostly Covid-19 related o H1 contribution = CHF 214.1 million; H2 contribution = CHF 110.9 million o Negative impact of CHF 16.0 million by currency translation (strong CHF) 9.3
Slide 20: "Cash is King"
Financial results and outlook “Cash is King” 1 Early implementation of a comprehensive crisis management • In March 2020, the “Cash is King“ principle was introduced throughout the entire organization to address the Covid-19 challenges • Adjustment of financial management to retain entrepreneurial f
Slide 21: Cost savings and restructuring program
Financial results and outlook Cost savings and restructuring program Covid-19 pandemic impact Measures Financial impact Unprecedented slump in Group-wide cost savings and Program will generate a business activity restructuring program initiated positive financial impact • Both supply and demand heav
Slide 22: Income statement (condensed)
Financial results and outlook Income statement (condensed) • Gross margin suffered from lower volume and CHF million FY 2019/20 % FY 2018/19 % Variance in % decreased by 100 bps, mainly Covid-19 related Net sales 2,539.8 100.0 2,818.3 100.0 -9.9 • Lower SG&A spend as a result of lower volume Gross m
Slide 23: Cash flow
Financial results and outlook Cash flow • “Cash is King” principle introduced in March 2020 to handle CHF million FY 2019/20 FY 2018/19 the challenges of Covid-19 and to maintain financial stability Cash generated from operations 407.9 372.8 • As a result, strong improvement of operating cash flow N
Slide 24: Net debt
Financial results and outlook Net debt FY ended FY ended • Net debt development benefited from implementation of CHF million 30.06.2020 30.06.2019 “Cash is King” principle Cash and cash equivalents 156.8 122.4 • As a result, net debt improved significantly against HY Short term debt 139.9 86.3 repor
Slide 25: Dividend payout proposal for financial year 2019/20
Financial results and outlook Dividend payout proposal for financial year 2019/20 Dividend policy Proposed dividend payout FY 2019/20 Envisaged pay-out ratio of minimum of 50% of consolidated • Consolidated net profit after minority interests for net profit after minority interests financial year 20
Slide 26: Economic environment: Sequential improvement expected – limited visibility for FY 2020/21
Financial results and outlook Economic environment: Sequential improvement expected – limited visibility for FY 2020/21 due to Covid-19 pandemic • Financial performance in the months of June and July 2020 indicate an improvement of the economic environment for dormakaba’s businesses compared with th
Slide 27: Sabrina Soussan to take over as CEO on 1 April 2021
Financial results and outlook Sabrina Soussan to take over as CEO on 1 April 2021 Co-CEO of Siemens Mobility since 2017 French and German citizen 51 years of age Studied engineering and completed an MBA before starting her career as a development engineer at Renault Held several leadership positions
Slide 28: Thank you for your attention.
Thank you for your attention. 28 Presentation on full-year results 2019/20 3 September 2020
Slide 29: IR Agenda 2020/21
IR Agenda 2020/21 • UBS, Best of Switzerland Virtual Conference 17 September 2020 • Baader Helvea, Investment Conference 2020, Munich & Virtual 24 September 2020 • Jefferies, 2020 European Mid-Cap Industrials Virtual Forum 14 October 2020 • Annual General Meeting 20 October 2020 • Credit Suisse, Swi
Slide 30: If you want to find out more, visit us on one of our websites or channels
If you want to find out more, visit us on one of our websites or channels Annual Report 2019/20 Read more about the financial results 2019/20 of dormakaba Group on report.dormakaba.com/2019_20. Sustainability Report 2019/20 Visit report.dormakaba.com/2019_20/sustainability to find out what we have a
Slide 31: Appendix
Appendix Segment split – Key & Wall Solutions Product portfolio Currency exposure Shareholder structure 31 Presentation on full-year results 2019/20 3 September 2020
Slide 32: Segment split – Key & Wall Solutions
Appendix - Results FY 2019/20 Segment split – Key & Wall Solutions Business Units Key Systems Movable Walls Change on Change on CHF million FY 2019/20 % FY 2018/191) % previous year FY 2019/20 % FY 2018/191) % previous year in % in % Net sales third parties 180.4 229.7 -21.5% 159.8 158.3 0.9% Interc
Slide 33: Currency exposure
Appendix – Financial data Currency exposure As every globally active group, dormakaba is exposed to currency risks. The currency profile of dormakaba shows a broad balance between sales and cost per region (= natural hedge) Sales per currency regions Cost per currency regions 33% 32% 29% 28% USD USD
Slide 34: Product portfolio – one stop shop – balanced mix between mechanical, electronic and cloud-based solutions
Appendix – Product portfolio Product portfolio* – one stop shop – balanced mix between mechanical, electronic and cloud-based solutions Safe Locks Lodging Systems Door Hardware Entrance Systems Mechanical Electronic Key Systems Access & Data Services Interior Glass Systems * Figures are rounded on a
Slide 35: Shareholder structure (1) – supporting sustainable development
Appendix – Shareholder structure Shareholder structure (1) – supporting sustainable development dormakaba Holding AG (CH) (2) [listed on SIX Swiss Exchange] Shareholder dormakaba Holding AG 30.06.2020 30.06.2019 Pool Shareholders(4) 28.7% 27.2% Shareholder Pool Free Float 71.3% 72.8% (28.7%) Free fl
Slide 36: Disclaimer
Disclaimer This communication contains certain forward-looking statements including, but not limited to, those using the words “believes”, “assumes”, “expects” or formulations of a similar kind. Such forward-looking statements are made on the basis of assumptions and expectations that the company be