Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q4 2007 Earnings Presentation
32 slides from Assa Abloy Ab Class B's earnings presentation, 2008
Slide 1: Q4 Report 2007
Q4 Report 2007 Johan Molin, President & CEO 1
Slide 2: Financial Highlights Q4
Financial Highlights Q4 Q4 - Solid improvement – Strong continued growth in Global Tech and Asia Pacific – US commercial in steady progress – Earnings improvement in all divisions – Strongest ever cash flow Sales 8,721 MSEK +8% +6% organic, +5% acquired growth, -2% currency EBIT 1,440 MSEK +13
Slide 3: Financial Highlights Full Year 2007
Financial Highlights Full Year 2007 Another record year with all divisions improving Sales 33,550 MSEK +8% +7% organic, +5% acquired growth, -4% currency EBIT 5,458 MSEK +14% Cash Flow 4,808 MSEK +36% EPS 9.02 SEK +13% 3
Slide 4: Group Sales in Local Currencies Jan-Dec
Group Sales in Local Currencies Jan-Dec 2007 48 +8 37 +12 6 +40 1 +22 2 +18 6 +17 Portion of Group sales Jan-Dec 2007 % Year-to-date vs previous year % 4
Slide 5: Organic Growth, %
Organic Growth, % 14 12 2007: 7% (9%) Easter effect: 10 Growth reduced with -2-3% Q1 2008 8 6 4 2 0 2003 2004 2005 2006 2007 -2 -4 Quarter Rolling 12-months Target 5
Slide 6: Growth Highlights
Growth Highlights Very strong growth in Asia Pacific – Focused organization in place – Very good progress in China New markets & regions 15% of total sales in Q4 – Baodean & iRevo Commercial US in stable progress – Specification in continuous progress Secure Identity in strong growth – Fargo
Slide 7: Sales Growth - Currency Adjusted
Sales Growth - Currency Adjusted - Stable double digit development % MSEK 16 Run rate 12% Organic 7% 34000 14 Acquired 5% 32000 12 10 30000 8 28000 6 26000 4 24000 2 0 22000 2004 2005 2006 2007 Acquired growth Organic growth Sales rolling 12-months in fixed currencies 7
Slide 8: Acquisitions 2007
Acquisitions 2007 Pemko (Americas) Pyropanel, Baodean & iRevo (Asia Pacific) LaForce and Portronik (Entrance Systems) Integrated Engineering and Aontec (Global Tech) Alba, Esety, and Powershield (EMEA) Including a number of smaller acquisitions addition to turnover 1,800 MSEK (~5.5% grow
Slide 9: Acquisitions 2008, Jan-Feb
Acquisitions 2008, Jan-Feb Valli&Valli (EMEA) SimonsVoss (Global Tech) Annual addition to turnover 700 MSEK (~2.1% growth annualized) 9
Slide 10: SimonsVoss – Digital Access Control Systems
SimonsVoss – Digital Access Control Systems Leading in fast growing digital access control systems Complements HiD access control in Europe Sales of 400 MSEK in 2008 Slightly dilutive Subject to regulatory approval 10
Slide 11: Powershield – Total Door Solutions
Powershield –Total Door Solutions Leading on high security steel doors Important step for European total door solution Synergies on specification and lock sales Sales of 150 MSEK in 2008 Accretive from start Consolidated Dec 2007 11
Slide 12: Valli&Valli – Italian Design Handles
Valli&Valli – Italian Design Handles Global brand in exclusive designed door handles 65% Exports Brand reinforces the specification world 300 MSEK in sales in 2008 Accretive from start Consolidated from Q2 12
Slide 13: Operating Income (EBIT) MSEK
Operating Income* (EBIT) MSEK 1450 5700 1400 Run rate 5,458 MSEK (4,771) +14% 5500 1350 5300 1300 5100 1250 4900 1200 4700 1150 4500 1100 4300 1050 4100 1000 3900 950 3700 900 3500 850 3300 800 3100 2004 2005 2006 2007 Quarter 12-months Quarter Rolling 12-months *Rolling 12-months excludes 2006 rest
Slide 14: Operating Margin (EBIT)
Operating Margin* (EBIT) 17,5 17,0 Run rate 16.3% (15.3) 16,5 16,0 EBIT % 15,5 15,0 14,5 14,0 13,5 13,0 2004 2005 2006 2007 Quarter Rolling 12-months *Excluding 2006 restructuring costs of 1,474 MSEK 14
Slide 15: Margin Highlights Q4
Margin Highlights Q4 Volume growth 3% Price increase 3% Raw material compensated 0.2% dilution from acquisitions and geographical mix Restructuring slightly ahead of plan – Total reduction of 1,316 employees – Quarterly saving 55 MSEK (90 from project start less 35 LY) – Run rate 60% of to
Slide 16: Division - EMEA
Division - EMEA SALES Continued strong improvement of profit share of Group total % Moderate growth in most markets 39 Restructuring adds to profit Closure in Q4 of CE-Marshall, Laperche, Stremler and FAS sites EBIT % Operating margin (EBIT) 18 17 + Volume 16 + Restructuring savings 15 14
Slide 17: Division - Americas
Division - Americas SALES Good general growth in all sectors except share of residential Group total % Door group improved 30 Residential in negative demand Canada suffering from strong CAD EBIT % 21 20 Operating margin (EBIT) 19 + Volume 18 17 + Restructuring savings 16 15 = Raw material
Slide 18: Division - Asia Pacific
Division - Asia Pacific SALES Very strong development in China share of Group total % – Baodean consolidated from 1 October 8 Strong sales in other Asian markets Good growth in the Pacific iRevo diluting by 0.8% EBIT % – Good sales development 20 18 16 14 Operating margin (EBIT) 12 10 + Vo
Slide 19: Division - Global Technologies
Division - Global Technologies SALES Strong performance from HiD/Fargo share of Group total % – Crescendo & i-Class 14 – Fargo HDP Good development in Hospitality ITG change in management and structure EBIT % 18 17 Operating margin (EBIT) 16 15 + Volume 14 13 + Manufacturing and overhead sav
Slide 20: Division - Entrance Systems
Division - Entrance Systems SALES Slower development in Europe and share of America - larger projects delayed Group total % 9 Good order intake in Dec and Jan Strong development in Asia Pacific and emerging markets Manufacturing started in CZ and EBIT % growing in China 17 16 15 14 Operati
Slide 21: Q4 Report 2007 Tomas Eliasson, CFO
Q4 Report 2007 Tomas Eliasson, CFO 21
Slide 22: Financial Highlights Q4 and Full Year 2007
Financial Highlights Q4 and Full Year 2007 4th Quarter Full Year MSEK 2007 2006 Change 2007 2006 Change Sales 8,721 8,059 +8% 33,550 31,137 +8% Whereof Organic growth +6% +7% Acquired growth +5% +5% FX-differences -188 -2% -1,131 -4% Operating income (EBIT) 1,440 1,274* +13% 5,458 4,771* +14% EBIT-m
Slide 23: Operating Cash Flow, MSEK
Operating Cash Flow, MSEK 1800 6500 1600 6000 1400 5500 1200 5000 12-months 1000 4500 Quarter 800 4000 600 3500 400 3000 200 2500 0 2000 2004 2005 2006 2007 Quarter Rolling 12-months 23
Slide 24: Working Capital - Receivables
Working Capital Receivables 59 58 57 DSO: 54 (54) 56 55 Days 54 53 52 51 50 49 2004 2005 2006 2007 24
Slide 25: Working Capital - Inventories
Working Capital Inventories 120 118 116 MTPT: 104 (109) 114 112 110 Days 108 106 104 102 100 98 96 2004 2005 2006 2007 25
Slide 26: Gearing % and Net Debt MSEK
Gearing % and Net Debt MSEK Net debt Gearing 16000 160 14000 140 12000 120 10000 100 8000 80 6000 Debt/Equity Debt/Equity83 83 60 4000 40 2000 20 0 0 2004 2005 2006 2007 Net debt Gearing 26
Slide 27: Return On Capital Employed %
Return On Capital Employed* % 22 21 Target 20% 20 19 18 17 16 15 14 ROCE ROCEYTD YTD18.6% 18.6%(17.1) (17.1) 13 12 2004 2005 2006 2007 *2006 excludes restructuring and one off financial cost 2007 27
Slide 28: Earnings per Share and Proposed Dividend, SEK
Earnings per Share and Proposed Dividend, SEK 10,00 9,00 EPS EPS2007 2007 9.02 9.02(7.99) (7.99) 8,00 Proposed ProposedDividend Dividend 3.60 3.60(3.25) (3.25) 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 28
Slide 29: Q4 Report 2007 Johan Molin, President & CEO
Q4 Report 2007 Johan Molin, President & CEO 29
Slide 30: Conclusion 2007
Conclusion 2007 Strong total growth, +12%, driven by good general demand, market investments and acquisitions Emerging markets took off Price management and efficiency programs adds to profit Earnings improvement in all divisions Record strong cash flow 30
Slide 31: Outlook Going Forward
Outlook Going Forward Organic sales growth is expected to continue at a good rate The operating margin (EBIT) and operating cash flow are expected to develop well First quarter 2008 will be affected by Easter effect 31
Slide 32: The global leader in door opening solutions
The global leader in door opening solutions ASSA ABLOY