Dormakaba Holding Ag · SIX:DOKA
Dormakaba — Kaba — FY2013/2014 Earnings Presentation
36 slides from Dormakaba's earnings presentation, Sep 12, 2014
Slide 1: Kaba invests and grows well
Kaba invests and grows well RESULTS FINANCIAL YEAR 2013/2014 Riet Cadonau, CEO Beat Malacarne, CFO
Slide 2: Agenda
Agenda > FY 2013/2014 at a glance Riet Cadonau > FY 2013/2014 in review Riet Cadonau > Financial results FY 2013/2014 Beat Malacarne > Switch to Swiss GAAP FER Beat Malacarne > Guidance FY 2014/2015 Beat Malacarne > Summary and outlook Riet Cadonau Presentation FY 2013/2014 © Kaba 12.9.2014 2
Slide 3: Kaba Group FY 2013/2014 at a glance
Kaba Group FY 2013/2014 at a glance > Sales cross 1 billion mark: CHF 1003.5 million > Growth target exceeded: organic* growth 5.2% at Group level > EBITDA margin of 15.5% within target range > Acquisitions in emerging markets: Probuck in China, Task in Brazil, Dorsët Kaba in India *in local currenc
Slide 4: ADS EMEA/AP: pleasing organic growth
ADS EMEA/AP: pleasing organic growth > Organic growth: 4.9% Sales development in CHF million > Decline in profitability largely due to: > Announced higher investment activity 7.2 > Additional infrastructure costs - 11.2 > Above-market growth in DACH region and Northern Europe > AP fails to meet expe
Slide 5: ADS AM: increased profitability
ADS AM: increased profitability > Organic growth: 5.2% Sales development in CHF million > Profitability increased again, with strong EBITDA margin > Hospitality (hotel locks) performs 5.6 - 9.5 particularly well 11.4 > Business with U.S. Government good PROFITABILITY / FTE 237.9 230.4 FY 13/14 FY 12
Slide 6: KS: strong performance on high level
KS: strong performance on high level > Organic growth: 6.8% Sales development in CHF million > Profitability improved yet again > Strong market position expanded > Increased market share in emerging 2.2 markets of South America and Asia - 4.9 > Market share held in mature markets 12.3 PROFITABILITY
Slide 7: FY 2013/2014 in review
FY 2013/2014 in review > FY 2013/2014 at a glance Riet Cadonau > FY 2013/2014 in review Riet Cadonau > Financial results FY 2013/2014 Beat Malacarne > Switch to Swiss GAAP FER Beat Malacarne > Guidance FY 2014/2015 Beat Malacarne > Summary and outlook Riet Cadonau Presentation FY 2013/2014 © Kaba 12
Slide 8: Our goal: profitable growth
Our goal: profitable growth PROFITABLE GROWTH Growth Operational efficiency Organic growth Process optimization/ Cost structure Investment in markets Various programs Investment in innovations Acquisitions Criteria Priorities Presentation FY 2013/2014 © Kaba 12.9.2014 8
Slide 9: Organic growth: investment in markets
Organic growth: investment in markets PROFITABLE GROWTH > Geographical expansion: Growth > ADS: build-up market presence in some emerging Organic growth markets Investment in markets > KS: market share gains in Investment in innovations SAM and Asia > Global presence of ADS Acquisitions products: Cr
Slide 10: Organic growth: investment in innovation
Organic growth: investment in innovation PROFITABLE GROWTH > Annual amount of R+D Growth investment: above 5% of sales > Three classifications for Organic growth innovation Investment in markets > Sustaining Investment in innovations > Efficiency Acquisitions > Disruptive Criteria > Some products us
Slide 11: Acquisitions (1)
Acquisitions (1) PROFITABLE GROWTH > Integration FlexonSilca, Probuck Growth and Task on track > 31 July 2014: acquisition Organic growth majority stake in Dorsët Kaba Investment in markets (India) (ADS) completed Investment in innovations > Priorities for further acquisitions remain Acquisitions >
Slide 12: Acquisitions (2): majority stake in Dorsët Kaba
Acquisitions (2): majority stake in Dorsët Kaba > 31 July 2014, ADS EMEA/AP division > JV investment increased from 49% to 74% > Takeover of three additional businesses adds three production sites and four regional offices, with about 1,000 employees > Established extensive distribution network in I
Slide 13: Operational efficiency
Operational efficiency PROFITABLE GROWTH > Procurement > Cost savings effects Operational efficiency > Supplier Code of Conduct Process optimization/ Cost structure > Lean manufacturing > KS: further improvements show Various programs in increased EBITDA margin > ADS: programs running > Pricing > Fi
Slide 14: Financial results FY 2013/2014
Financial results FY 2013/2014 > FY 2013/2014 at a glance Riet Cadonau > FY 2013/2014 in review Riet Cadonau > Financial results FY 2013/2014 Beat Malacarne > Switch to Swiss GAAP FER Beat Malacarne > Guidance FY 2014/2015 Beat Malacarne > Summary and outlook Riet Cadonau Presentation FY 2013/2014 ©
Slide 15: FY 2013/2014: changes in accounting practices
FY 2013/2014: changes in accounting practices > P+L reporting switched from “type of cost” to “functional cost” > Items affecting comparability no longer shown as a separate line item in P+L > First time adoption of IAS 19 revised Figures of previous periods restated accordingly Presentation FY 2013
Slide 16: Key figures FY 2013/2014
Key figures FY 2013/2014 > Net sales growth 4.1% (PY: 1.8%) > Organic growth* 5.2% (PY: - 1.0%) > Acquisition growth 1.6% (PY: 0.1%) > Currency effect on sales - 2.6% (PY: 2.7%) > Currency effect on EBITDA - 2.2 million (PY: 3.3 million) > EBITDA margin 15.5% (PY: 15.9%) > Net profit CHF 84.6 millio
Slide 17: Consolidated income statement (1)
Consolidated income statement (1) FY 2013/2014 FY 2012/2013 in CHF million % (restated) % Net sales 1,003.5 100.0 964.3 100.0 Cost of goods sold - 556.7 - 55.5 - 538.9 - 55.9 Gross margin 446.8 44.5 425.4 44.1 Other operating income, net 7.9 0.7 11.0 1.1 Sales & marketing - 178.0 - 17.7 - 170.2 - 17
Slide 18: Consolidated income statement (2): sales
Consolidated income statement (2): sales SALES DEVELOPMENT FY 2013/2014 Sales development in CHF million Third-party sales by divisions KS 19% 15.0 ADS ADS AM EMEA/AP - 24.6 22% 58% Other 1% 1003.5 48.8 FX development (average rate) 964.3 FY FY Change 2013/2014 2012/2013 EUR 1.23 1.23 + 0.0% FY Orga
Slide 19: Consolidated income statement (3): EBITDA
Consolidated income statement (3): EBITDA EBITDA DEVELOPMENT FY 2013/2014 EBITDA development in CHF million EBITDA contributions by divisions KS 17% ADS - 0.3 - 2.2 EMEA/AP 4.9 44% ADS AM 39% 152.9 155.3 EBITDA margins EBITDA in % sales FY 13/14 FY 12/13* ADS EMEA/AP 13.5 14.2 ADS AM 29.6 29.0 Key S
Slide 20: Consolidated income statement (4): EBIT
Consolidated income statement (4): EBIT EBIT DEVELOPMENT FY 2013/2014 EBIT development in CHF million EBIT contributions by divisions KS 18% ADS EMEA/AP 39% - 1.3 - 1.4 ADS AM 4.8 43% 121.5 123.6 EBIT margins EBIT in % sales FY 13/14 FY 12/13* ADS EMEA/AP 10.2 10.9 ADS AM 27.7 27.0 Key Systems (KS)
Slide 21: Consolidated balance sheet
Consolidated balance sheet FY ended FY ended 30.06.2014 30.06.2013 in CHF million (restated) Total current assets 445.3 495.8 Tangible assets 156.8 158.6 Intangible assets 314.5 280.7 Other non-current assets 30.1 29.1 Total assets 946.7 964.2 Current liabilities 259.8 296.8 Non-current liabilities
Slide 22: Consolidated cash flow statement
Consolidated cash flow statement FY ended FY ended 30.06.2014 30.06.2013 in CHF million (restated) Net cash from operating activities 105.0 110.2 Net cash used in investing activities - 69.0 - 29.7 Free cash flow 36.0 80.5 Net cash flows from financing activities - 93.4 - 63.5 Increase (decrease) in
Slide 23: Net liquidity and gearing
Net liquidity and gearing FY ended FY ended FY ended 30.06.2014 30.06.2013 30.06.2012 in CHF million (restated) Net debt* - 35.4 -56.1 - 11.7 EBITDA 155.3 152.9 151.2 Gearing - 0.2 - 0.4 - 0.1 *-net debt = net liquidity 06/2014 06/2013 06/2012 150 100 50 Cash and cash equivalents Debt 0 Net liquidit
Slide 24: Dividend pay-out proposal 2014
Dividend pay-out proposal 2014 > 40% - 60% of consolidated net profit POLICY > Consolidated net profit CHF 84.6 million, pay-out CHF 42.0 million CHF CHF in % of per share million net profit 2010: regular pay-out 7.00 26.6 30.7% 2011: double pay-out (CHF 7.00 + 7.00) due to 14.00 53.2 24.1% sale of
Slide 25: Switch to Swiss GAAP FER
Switch to Swiss GAAP FER > FY 2013/2014 at a glance Riet Cadonau > FY 2013/2014 in review Riet Cadonau > Financial results FY 2013/2014 Beat Malacarne > Switch to Swiss GAAP FER Beat Malacarne > Guidance FY 2014/2015 Beat Malacarne > Summary and outlook Riet Cadonau Presentation FY 2013/2014 © Kaba
Slide 26: Consolidated balance sheet – assets
Consolidated balance sheet – assets IFRS FER Reporting Reporting period ended period ended in CHF million 30.06.2014 % 30.06.2014 % Variance Current assets Cash and cash equivalents 80.5 8.5 80.5 12.4 Trade receivables 178.2 18.8 178.2 27.4 Inventories 165.2 17.5 165.2 25.4 Current income tax assets
Slide 27: Consolidated balance sheet – liabilities
Consolidated balance sheet – liabilities IFRS FER Reporting Reporting period ended period ended in CHF million 30.06.2014 % 30.06.2014 % Variance Current liabilities Current borrowings 40.0 4.2 40.0 6.2 Trade payables 54.6 5.8 54.6 8.4 Current income tax liabilities 11.8 1.2 11.8 1.8 Accrued and oth
Slide 28: Guidance FY 2014/2015
Guidance FY 2014/2015 > FY 2013/2014 at a glance Riet Cadonau > FY 2013/2014 in review Riet Cadonau > Financial results FY 2013/2014 Beat Malacarne > Switch to Swiss GAAP FER Beat Malacarne > Guidance FY 2014/2015 Beat Malacarne > Summary and outlook Riet Cadonau Presentation FY 2013/2014 © Kaba 12.
Slide 29: Guidance for financial year 2014/2015
Guidance for financial year 2014/2015 Guidance as of 12 September 2014 Market development Europe: moderate growth Americas: fair growth Asia Pacific: moderate growth Net sales organic* growth 3.0% - 5.0%, provided stable economies On level of 2013/2014 financial year, provided EBITDA margin stable e
Slide 30: Summary and outlook
Summary and outlook > FY 2013/2014 at a glance Riet Cadonau > FY 2013/2014 in review Riet Cadonau > Financial results FY 2013/2014 Beat Malacarne > Switch to Swiss GAAP FER Beat Malacarne > Guidance FY 2014/2015 Beat Malacarne > Summary and outlook Riet Cadonau Presentation FY 2013/2014 © Kaba 12.9.
Slide 31: Summary
Summary > Organic* growth: good on Group level (5.2%) and within all three divisions > ADS EMEA/AP 4.9% > ADS Americas 5.2% > Key Systems 6.8% > Profitability: very good at ADS Americas and Key Systems, at ADS EMEA/AP impacted by investments > Strong balance sheet > Guidance for FY 2014/2015 (provid
Slide 32: Conclusion: on track for sustainable profitable growth
Conclusion ON TRACK FOR SUSTAINABLE PROFITABLE GROWTH We will continue to invest above-average in markets, product innovation and infrastructure in order to develop our market positions and to strengthen our long-term competitiveness. Presentation FY 2013/2014 © Kaba 12.9.2014 32
Slide 33: Capital Market Day 13 November 2014
We invite you to the Capital Market Day 13 November 2014 at the production site of Kaba Switzerland in Wetzikon. Invitations to be sent out at beginning of October 2014 Presentation FY 2013/2014 © Kaba 12.9.2014 33
Slide 34: IR Agenda 2014/2015
IR Agenda 2014/2015 > Annual General Meeting 28 October 2014 > Capital Market Day 13 November 2014 > CS Swiss Equity Midcap Conference 20 November 2014 > Helvea Swiss Equities Conference 16 January 2015 > Publication and presentation of 4 March 2015 half-year results 2014/2015 Presentation FY 2013/2
Slide 35: Thank you for your attention!
Thank you for your attention! Presentation FY 2013/2014 © Kaba 12.9.2014 35
Slide 36: Disclaimer
Disclaimer This information contains certain forward-looking statements Should one or more of these risks, uncertainties or other factors including, but not limited to, those using the words “believes”, materialize, or should any underlying assumption or expectation “assumes”, “expects” or formulati