Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q4 2014 Earnings Presentation
23 slides from Assa Abloy Ab Class B's earnings presentation, February 2015
Slide 1: Q4 Report 2014
Q4 Report 2014 1
Slide 2: ASSA ABLOY overview Jan-Dec 2014
ASSA ABLOY overview Jan-Dec 2014 Financials (SEK bn) Sales by product group Dec 2014 Net sales 56.8 Electro- Doors mechanical EBIT 9.3 20% locks 23% Op cash flow 8.3 Mechanical Entrance Net debt 22.3 locks Automation 30% Market cap 150 27% Sales by region Dec 2014 Leading market positions (EUR B) 6,
Slide 3: Financial highlights Q4 2014
Financial highlights Q4 2014 Strong ending of the year – Strong growth in Americas, Global Tech and ESD – Growth in EMEA – Decline in APAC due to strict credit policy and weak market in China – Strong cash flow Sales 15,847 MSEK +20% 3% organic, 8% acquired growth, 9% currency EBIT 2,681 MSEK
Slide 4: Financial highlights Jan-Dec 2014
Financial highlights Jan-Dec 2014 A very solid year with strong continued progress – US market turning strong – Europe divided – Emerging markets slowing, especially China in Q4 – Big success from innovative products – Good contribution from acquisitions Sales 56,843 MSEK +17% 3% organic, 9% acq
Slide 5: Market highlights
Market highlights Strong progress of Government ID – New orders; Ireland, Saudi Arabia, Angola – First National ID card in EU based on E-passport Strong demand in the US for home automation – Home automation drives Digital Door Lock sales Starwood mobile keys show good progress – 150 first hot
Slide 6: Group sales in local currencies Jan-Dec
Group sales in local currencies Jan-Dec 2014 Emerging markets 25% of sales 41 +6 36 +26 16 +3 1 +17 2 +21 4 +7 Share of Group sales 2014 YTD, % Year-to-date vs previous year, % 6
Slide 7: Sales growth, currency adjusted
Sales growth, currency adjusted Sales MSEK 2014 Q4 +11% Growth, % Organic +3% 59 000 56 000 Acquired +8% 30 53 000 25 50 000 20 47 000 15 44 000 10 41 000 5 38 000 0 35 000 -5 32 000 -10 29 000 -15 2007 2008 2009 2010 2011 2012 2013 2014 Organic Growth Acquired Growth Sales in Fixed Currencie s 7
Slide 8: Operating income (EBIT*), MSEK
Operating income (EBIT*), MSEK Quarter 12-months 2 700 9 500 2 500 Run rate 9,257 MSEK (7,923) +17% 9 000 2 300 8 500 2 100 8 000 7 500 1 900 7 000 1 700 6 500 1 500 6 000 1 300 5 500 1 100 5 000 900 4 500 2007 2008 2009 2010 2011 2012 2013 2014 Quarter Rolling 12-months 8
Slide 9: Operating margin (EBIT), %
Operating margin (EBIT), % EBIT Margin Run rate 2014 16.3% (16.3) 17,0 Long term target range (average) 16,0 15,0 14,0 13,0 12,0 2007 2008 2009 2010 2011 2012 2013 2014 Quarter Rolling 12-months 2014 Dilution Q4 -0.2% 2014 -0.3% 9
Slide 10: Manufacturing footprint
Manufacturing footprint Status manufacturing footprint programs 2006-2013: – 64 factories closed to date, 16 to go – 77 factories converted to assembly, 12 to go – 36 offices closed, 11 to go Personal reduction QTD 459p and total 9,414p 570p in further planned reductions 941 MSEK of the prov
Slide 11: Margin highlights Q4 2014
Margin highlights Q4 2014 EBIT margin 16.9% (16.6) +0.3% + Volume increase 2%, price 1% + Margin increase +0.3% + Organic growth + Manufacturing footprint + Currency +0.2% - Acquisitions -0.2% 11
Slide 12: Acquisitions 2014
Acquisitions 2014 Fully active pipeline 20 acquisitions done in 2014 Annualized sales 2,600 MSEK Added sales 5.4% 12
Slide 13: Digi Electronic Lock, China
Digi Electronic Lock, China Turnover of 300 MSEK with 620 employees The leading digital door lock manufacturer in China Complete product range for the mid to low segments Complements our current product range Accretive to EPS 13
Slide 14: ODIS, Chile
ODIS, Chile Turnover of 120 MSEK with 240 employees Leading supplier of locks and padlocks in Chile Adds complementary market segments Enables total door opening solutions Accretive to EPS 14
Slide 15: Silvana and Metalika, Brazil
Silvana and Metalika, Brazil Combined turnover of 250 MSEK with 410 employees Market leading companies for locks and fire doors in Brazil Complements existing business in Brazil Accretive to EPS 15
Slide 16: Division - EMEA
Division - EMEA SALES Strong growth in Germany, Iberia, Eastern Europe share of Group total % and Africa Good growth in Scandinavia 25 Flat in the UK, Italy and Israel Negative in Benelux, France and Finland Continued investment in sales and R&D EBIT % Operating margin (EBIT) 19 18 + Org
Slide 17: Bridge Analysis – Oct-Dec 2014
Bridge Analysis – Oct-Dec 2014 MSEK 2013 Organic Currency Acq/Div 2014 Oct-Dec Oct-Dec 3% 9% 8% 20% Revenues 13,242 363 1,129 1,113 15,847 EBIT 2,202 113 209 157 2,681 % 16.6% 31.2% 18.6% 14.1% 16.9% Dilution / Accretion 0.3% 0.2% -0.2% 17
Slide 18: P&L Components as % of sales Jan – Dec 2014
P&L Components as % of sales Jan – Dec 2014 2013 2014 2014 YTD YTD excluding YTD acquisitions Direct material 35.0% 35.4% 36.5% Conversion costs 25.5% 25.4% 24.9% Gross Margin 39.5% 39.2% 38.6% S, G & A 23.2% 22.6% 22.3% EBIT 16.3% 16.6% 16.3% 18
Slide 19: Operating cash flow, MSEK
Operating cash flow, MSEK Quarter 12 months 4 000 3 500 8 500 3 000 7 500 2 500 6 500 2 000 1 500 5 500 1 000 4 500 500 0 3 500 2007 2008 2009 2010 2011 2012 2013 2014 Quarter Cash Rolling 12-months EBT Rolling 12 months 19
Slide 20: Gearing % and net debt MSEK
Gearing % and net debt MSEK Net Debt Gearing Debt/Equity 30 000 62 (68) 120 25 000 100 20 000 80 15 000 60 10 000 40 5 000 20 0 0 2007 2008 2009 2010 2011 2012 2013 2014 Net debt Gearing Net debt/EBITDA *) 2007-2011 Not restated for changed pension accounting principles. 2.1 (2.2) 20
Slide 21: Earnings per share, SEK
Earnings per share, SEK Quarter SEK 12-months 2014 EPS +17% 5,50 Dividend proposal 2015: 6.50 SEK (5.70) 18,00 5,00 Stock split proposal 3:1 17,00 4,50 16,00 4,00 15,00 3,50 14,00 3,00 13,00 2,50 2,00 12,00 1,50 11,00 1,00 10,00 0,50 9,00 0,00 8,00 2007 2008 2009 2010 2011 2012 2013 2014 Quarter Rol
Slide 22: Conclusions Q4 2014
Conclusions Q4 2014 Strong growth by 20% with 3% organic – Strong in US – Europe divided – Emerging markets slowing, especially China New products very successful, 32% of sales Strong EBIT improvement of 22% Very strong cash flow +37% 22
Slide 23: Q&A
Q&A 23