Assa Abloy Ab Class B · OMXSTO:ASSA_B

Assa Abloy Ab Class B — Q1 2023 Earnings Presentation

33 slides from Assa Abloy Ab Class B's earnings presentation, Apr 26, 2023

  1. Slide 1: ASSA ABLOY Q1 interim report 2023

    ASSA ABLOY Q1 interim report 2023

  2. Slide 2: A very strong start to 2023

    A very strong start to 2023  Organic sales development – Very strong sales growth in Americas and Global Technologies – Strong sales in APAC – Good sales growth in EMEIA and Entrance Systems  Record high EBIT-margin for the quarter – 100bps improvement vs. last year  Four acquisitions signed in t

  3. Slide 3: Q1 2023 figures in summary

    Q1 2023 figures in summary Sales EBIT  Sales MSEK 32,391 +22% +22% +30% – +8% organic 34 000 6 000 – +5% acquired and divested 32 000 5 500 – +9% currency 5 186 30 000 5 000  EBITA-margin* 16.6% (15.6) 28 000 4 500  EBIT-margin* 16.0% (15.0) 26 000 4 000 24 000  EBIT* MSEK 5,186 +30% 4 001 3 500

  4. Slide 4: Sales by region Jan-March 2023

    Sales by region ASSA ABLOY 100 12 8 Emerging markets 13 13 7 Jan-March 2023 35 10 4 50 14 11 7 12 10 1 3 3 3 15 0 4 16 11 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

  5. Slide 5: Q1 2023 Market highlights

    Q1 2023 Market highlights  Project wins – HID delivers thousands of mobile access credentials via Employee Badge in Apple Wallet to Bishopsgate 22, a next generation office building in London – ~10,000 cylinders to be delivered to EWZ Zürich, an energy utility company – Several strong residential a

  6. Slide 6: FX adjusted sales growth

    FX adjusted sales growth % MSEK 30 130 000 125 000 25 120 000 20 115 000 15 110 000 105 000 10 100 000 5 95 000 90 000 0 85 000 -5 80 000 -10 75 000 70 000 -15 65 000 -20 60 000 2018 2019 2020 2021 2022 2023 Organic growth, % Acquired growth, % Sales in fixed currencies, MSEK 6

  7. Slide 7: Operating margin

    Operating margin % Run rate: EBIT-margin 15.6% (15.0%) % 19 19 18 18 17 17 Long term target range (average) 16 16 15 15 14 14 13 13 12 12 11 11 10 10 2018 2019 2020 2021 2022 2023 Quarter EBIT Rolling 12-months EBITA* Rolling 12-months Excluding items affecting comparability. *) Operating margin bef

  8. Slide 8: Operating profit

    Operating profit MSEK MSEK, 12 months 6 000 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 2018 2019 2020 2021 2022 2023 Quarter Rolling 12-months Excluding China write-downs, restructuring items, a positive revaluation of agta record 8

  9. Slide 9: Acquisitions

    Acquisitions  Active pipeline – 4 acquisitions signed in Q1 – Representing annualized sales of MSEK 440  HHI update – Court decision expected in Q2 9

  10. Slide 10: Mottura, Italy

    Mottura, Italy  Manufacturer of high security residential locks and cylinders  Strengthening our position in the residential space  Sales of MSEK 300 in 2022  Accretive to EPS from the start 10

  11. Slide 11: Opening Solutions EMEIA

    Opening Solutions 19% EMEIA of Group sales  Organic sales +3% – Strong growth in Middle East/India/Africa 6 500 18% – Good growth in the Nordics and Central Europe 6 000 16% – Stable growth in the UK/Ireland and South Europe 5 500 14% 5 000 12%  Operating margin 13.8% (14.6%) 4 500 10% – Good oper

  12. Slide 12: Opening Solutions Americas

    Opening Solutions 24% of Americas Group sales  Organic sales +11% 8 500 24% – Very strong sales growth in Canada, Security Doors, Access & High Security and Architectural Hardware 23% 7 500 – Strong sales growth in US Residential and Latin America 22% 6 500 – Sales decline in US Smart Residential a

  13. Slide 13: Opening Solutions Asia Pacific

    Opening Solutions 6% Asia Pacific of Group sales  Organic sales 6% 3 000 15% – Very strong sales growth in South Korea – Strong sales growth in South-East Asia 10% – Sales decline in Pacific and China 2 500 5%  Operating margin 4.6% (3.5%) 2 000 – Strong operating leverage due to volume and no sig

  14. Slide 14: Global Technologies

    Global Technologies 17% of Group sales  Organic sales +24% – Very strong sales growth in Physical Access Control 6 000 24% and Identification Technology 5 500 – Strong sales growth in Citizen ID 22% 5 000 – Good sales growth in Identity & Access Solutions 20% 4 500 – Sales decline in Extended Acces

  15. Slide 15: Entrance Systems

    Entrance Systems 34% of Group sales  Organic sales +3% 12 000 18% – Very strong sales growth in Pedestrian 11 500 – Strong sales growth in Industrial 11 000 17% – Sales decline in Residential and significant sales 10 500 decline in Perimeter Security 10 000 16% 9 500 9 000 15% – Very strong growth

  16. Slide 16: Financial summary

    FX & acquisition ‘run-rate’ effects in Q1 2023 Financial summary (31 March 2023): SALES FX: 5% M&A: 4-5% January - March SEK M 2022 2023* Sales 26,591 32,391 22% - Organic growth 3,287 2,218 8% - Acquired net growth -52 1,344 5% - FX-differences 1,551 2,237 9% Operating income (EBIT)* 4,001 5,186 30

  17. Slide 17: Bridge analysis – Q1 2023

    Bridge analysis – Q1 2023 MSEK Q1 2022 Organic Currency Acq/Div Q1 2023 Growth 22% 8% 9% 5% 22% Sales 26,591 2,218 2,237 1,344 32,391 Operating profit* 4,001 739 387 58 5,186 Operating margin, %* 15% 33.3% 17.3% 4.3% 16.0% Dilution/accretion *) Excluding MFP restructuring items. 1.3 pts 0.2 pts -0.5

  18. Slide 18: Cost breakdown as % of sales – Q1 2023

    Cost breakdown as % of sales – Q1 2023 QTD 2023 % QTD 2022 excl. acq/div Δ QTD 2023 Direct material -36.7% -34.8% +1.9 pts -35.2% Conversion cost -23.9% -23.6% +0.3 pts -23.5% Gross margin 39.4% 41.6% +2.2 pts 41.3% S, G & A -24.4% -25.1% -0.7 pts -25.3% EBIT* 15.0% 16.5% +1.5 pts 16.0% *) Excluding

  19. Slide 19: Launch of the 9th Manufacturing Footprint Program (MFP)

    Launch of the 9th Manufacturing Footprint Program (MFP)  Restructuring projects from all divisions – 13 factory closures – 5 office/warehouse closures – 23 “conversion to assembly” projects  Financial effects – Restructuring cost MSEK 1,225 – Total annualized savings of MSEK >700 by 2025 – Pay-bac

  20. Slide 20: Operating cash flow, MSEK

    Operating cash flow, MSEK Quarter 12 months cash flow / EBT = 102% 12 months 7 000 20 000 18 000 6 000 16 000 5 000 14 000 12 000 4 000 10 000 3 000 8 000 2 000 6 000 4 000 1 000 2 000 0 0 2018 2019 2020 2021 2022 2023 Quarter, MSEK Cash rolling 12 months, MSEK EBT rolling 12 months, MSEK Excluding

  21. Slide 21: Gearing % and net debt, MSEK

    Gearing % and net debt, MSEK Net debt/EBITDA** 1.2 (1.5) Net debt Net debt/Equity 33% (38%) 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 2018 2019* 2020 2021 2022 2023 Net debt, MSEK Gearing, % *) IFRS 16 effect on net debt SEK 3.7 bn. **) Excluding MF

  22. Slide 22: Earnings per share, SEK

    Earnings per share, SEK Quarter 12 months 3,50 14,00 3,25 3,00 12,00 2,75 2,50 10,00 2,25 2,00 8,00 1,75 1,50 6,00 1,25 1,00 4,00 0,75 0,50 2,00 2018 2019 2020 2021 2022 2023 Quarter, SEK Rolling 12 months, SEK Excluding restructuring items, impairment of intangible assets in China and a positive re

  23. Slide 23: Dividend, SEK

    Dividend, SEK Proposal SEK 4.80 5,00 4,50 +182% 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 23

  24. Slide 24: Conclusions

    Conclusions  Strong sales growth – Organic sales up 8%  Strong EBIT-margin – Operating profit up 30%  Very strong cash flow  Uncertain economic climate  MFP9 launched – SEK 0.7bn in annual savings to be realized  Dividend of SEK 4.8 in two installments 24

  25. Slide 25: 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

  26. Slide 26: Appendix

    Appendix

  27. Slide 27: Cost breakdown as % of sales

    Cost breakdown as % of sales QTD 2023 % QTD 2022 excl. acq/div Δ QTD 2023 Direct material -36.7% -34.8% +1.9 pts -35.2% Conversion cost -23.9% -23.6% +0.3 pts -23.5% Gross margin 39.4% 41.6% +2.2 pts 41.3% S, G & A -24.4% -25.1% -0.7 pts -25.3% EBIT* 15.0% 16.5% +1.5 pts 16.0% *) Excluding MFP restr

  28. Slide 28: Opening Solutions EMEIA's bridge

    Opening Solutions EMEIA’s bridge MSEK Q1 2022 Organic Currency Acq/Div Q1 2023 Growth 5% 3% 5% 9% 17% Sales 5,309 162 249 510 6,229 Operating income* 776 24 2 56 858 Operating margin, %* 14.6% 14.8% 0.8% 11.0% 13.8% Dilution/accretion 0.0 pts -0.6 pts -0.2 pts 12 months figures Sales 20,774 23,778 E

  29. Slide 29: Opening Solutions Americas' bridge

    Opening Solutions Americas’ bridge MSEK Q1 2022 Organic Currency Acq/Div Q1 2023 Growth 36% 11% 13% 2% 26% Sales 6,241 778 738 105 7,861 Operating income* 1,265 329 151 -38 1,707 Operating margin, %* 20.3% 42.4% 20.4% -36.0% 21.7% Dilution/accretion 2.3 pts -0.1 pts -0.8 pts 12 months figures Sales

  30. Slide 30: Opening Solutions Asia Pacific's bridge

    Opening Solutions Asia Pacific’s bridge MSEK Q1 2022 Organic Currency Acq/Div Q1 2023 Growth 6% 6% 6% 16% 28% Sales 1,879 120 103 309 2,411 Operating income* 67 17 18 9 111 Operating margin, %* 3.5% 14.0% 17.5% 3.0% 4.6% Dilution/accretion 0.5 pts 0.8 pts -0.2 pts 12 months figures Sales 8,826 10,35

  31. Slide 31: Global Technologies' bridge

    Global Technologies’ bridge MSEK Q1 2022 Organic Currency Acq/Div Q1 2023 Growth 23% 24% 10% 4% 38% Sales 4,051 1,030 325 175 5,582 Operating income* 516 336 81 6 939 Operating margin, %* 12.7% 32.7% 24.9% 3.2% 16.8% Dilution/accretion 3.6 pts 0.9 pts -0.4 pts 12 months figures Sales 15,354 20,875 E

  32. Slide 32: Entrance Systems' bridge

    Entrance Systems’ bridge MSEK Q1 2022 Organic Currency Acq/Div Q1 2023 Growth 29% 3% 9% 2% 14% Sales 9,653 283 855 246 11,037 Operating income* 1,555 71 135 25 1,786 Operating margin, %* 16.1% 25.2% 15.7% 10.4% 16.2% Dilution/accretion 0.2 pts 0.0 pts -0.1 pts 12 months figures Sales 34,844 44,312 E

  33. Slide 33: Thank you

    Thank you assaabloy.com

ASSA ABLOY — Q1 2023 Earnings Presentation on 6ix