Assa Abloy Ab Class B · OMXSTO:ASSA_B
Assa Abloy Ab Class B — Q1 2009 Earnings Presentation
32 slides from Assa Abloy Ab Class B's earnings presentation, 2009
Slide 1: Q1 Report 2009
Q1 Report 2009 Johan Molin President & CEO 1
Slide 2: Financial Highlights Q1 2009
Financial Highlights Q1 2009 Record performance despite recessionary headwind – Construction in recession throughout the world – Entrance systems, HID and emerging markets holds up – Large efficiency gains – Continued strong cash flow Sales 8,881 MSEK +8% -12% organic, +4% acquired growth, +16%
Slide 3: ASSA ABLOY in Q1 2009
ASSA ABLOY in Q1 2009 Weakening demand in all parts of the world – De-stocking and weak aftermarket – Emerging markets less hit Relatively good performance of electromechanics – HID and Entrance are stable – Many new products within elmech gives relatively good performance Continued investment
Slide 4: Group Sales in Local Currencies Q1 2009
Group Sales in Local Currencies Q1 2009 45 -10 38 -9 8 +3 2 +17 2 -5 5 -8 Portion of Group sales 2009 YTD, % Year-to-date vs previous year, % 4
Slide 5: Sales Growth Q1 2009 - Currency Adjusted
Sales Growth Q1 2009 - Currency Adjusted 12,0 11,0 10,0 9,0 33000 8,0 7,0 6,0 5,0 28000 4,0 3,0 Sales MSEK Growth % 2,0 1,0 23000 0,0 -1,0 2004 2005 2006 2007 2008 2009 -2,0 -3,0 18000 -4,0 -5,0 2009 Q1 - 8% -6,0 -7,0 Organic -12% -8,0 Acquired + 4% 13000 -9,0 -10,0 -11,0 -12,0 8000 Organic Growth A
Slide 6: Operating Income (EBIT) MSEK
Operating Income* (EBIT) MSEK 1 500 All time high 5 700 Run rate 5,610 MSEK 5 500 1 400 (5,413), +4% 5 300 1 300 5 100 1 200 4 900 1 100 4 700 4 500 1 000 4 300 900 4 100 800 3 900 3 700 700 3 500 600 3 300 500 3 100 2005 2006 2007 2008 2009 Quarter 12-months Quarter Rolling 12-months *Rolling 12-mo
Slide 7: Operating Margin (EBIT)
Operating Margin* (EBIT) 17,0 Run rate 2009 15.8% (16.2) 16,0 15,0 EBIT % 14,0 13,0 12,0 11,0 2005 2006 2007 2008 2009 Quarter Rolling 12-months *Rolling 12-months excludes restructuring and one off costs 2006 of 1,474 MSEK, 2008 of 1,257 MSEK and 2009 of 109 MSEK 7
Slide 8: Manufacturing Footprint
Manufacturing Footprint Large efficiency gains out of the programs 40 new projects with planned closure of 15 sites Consolidation of support functions and administration Conversion to assembly in high cost countries Full cost MFP II, additional charge MFP I – 1 180 MSEK Q4 2008 – 109 MSEK
Slide 9: Acquisitions 2009
Acquisitions 2009 Acquisitions on temporary hold 4 small acquisitions carried through during Q1 – Adds 200 MSEK annualized, +0,6% SimonsVoss – Court appeal pending 9
Slide 10: Acquisitions 2009
Acquisitions 2009 Maiman Company Sales 100 MSEK Complementary door range – Wear and tear laminate doors Stile and Rail – Stile and Rail doors Main customers schools, hospitals and public buildings Will be leveraged through US specification team Accretive in 2009 10
Slide 11: Margin Highlights Q1 2009
Margin Highlights Q1 2009 Total growth 8%, with organic -12% EBIT margin 15.0%* (15.2%) Gross margin maintained ¾ Gains from manufacturing footprint, 24 sites closed ¾ Contingency plans released ¾ 21% less personnel, 6 300, in 18 months ¾ 7% less in Q1 ¾ Raw material positive SG&A cost maint
Slide 12: Division - EMEA
Division - EMEA SALES Construction in deep decline throughout EMEA share of Group total % Relatively good development in Germanic markets 38 Severe downturn in Spain, Italy and EE Profit supported by footprint savings Valli&Valli and Gardesa dilutes by 0.4% EBIT % Operating margin (EBIT)
Slide 13: Division - Americas
Division - Americas SALES Project market and Canada positive share of Group total % Distribution destocks and weak aftermarket Continued downturn in residential, OEM 31 Margin maintained thanks to efficiency gains and reductions of personnel EBIT % 21 Operating margin (EBIT) 20 = Volume -1
Slide 14: Division - Asia Pacific
Division - Asia Pacific SALES Slowing construction in the whole region share of Group total % Australia holds up while New Zealand is weak 8 iRevo and China doors in growth Production for Europe in decline Profit in the Pacific affected by weak currency Operating margin (EBIT) EBIT % - V
Slide 15: Division - Global Technologies
Division - Global Technologies SALES Growth in HID and Fargo share of Group total % ¾ Several large projects for Secure Issuance 14 ITG sales continued negative Hospitality project delays continued Strong profit in HID/Fargo and Hospitality ITG is improving, low margin business reduced EBI
Slide 16: Division - Entrance Systems
Division - Entrance Systems SALES Recession in the retail segment share of Group total % Strong health care and emerging markets 9 Good development of service sales Margin improvement from manufacturing footprint EBIT % Operating margin (EBIT) 17 = Volume 16 15 + Manufacturing footprint 14
Slide 17: Q1 Report 2009
Q1 Report 2009 Tomas Eliasson CFO 17
Slide 18: Financial Highlights Q1 2009
Financial Highlights Q1 2009 Twelve months 1st Quarter MSEK 2007 2008 Change 2008 2009 Change Sales 33,550 34,918 +4% 8,203 8,881 +8% Whereof Organic growth +0% -12% Acquired growth +4% +4% FX-differences +16 +0% +1,460 +16% Operating income (EBIT)* 5,458 5,526 +1% 1,244 1,328 +7% EBIT-margin (%)* 1
Slide 19: P&L – Components as % of Sales
P&L – Components as % of Sales Q1 Year-on-Year 2008 2009* Direct material 31.4% 31.6% Conversion costs 27.4% 27.4% Gross Margin 41.2% 41.0% S, G & A 26.0% 26.0% EBIT 15.2% 15.0% * Excluding restructuring and one off cost of 109 MSEK 19
Slide 20: Cost Development
Cost Development Material Cost Rolling 12 Months Group Year-on-Year Changes in Cost 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2007 2008 2009 -1% -2% -3% -3% -3%in inQ1 Q1 -4% -5% Adjusted for currency, growth and acquisitions 20
Slide 21: Cost Development
Cost Development Conversion Cost Rolling 12 Months Group Year-on-Year Changes in Cost 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2007 2008 2009 -1% -2% -3% -10% -10%in inQ1 Q1 -4% -5% Adjusted for currency and acquisitions Conversion cost = all fixed and variable production costs excluding material 21
Slide 22: Cost Development
Cost Development S, G & A Cost Rolling 12 Months Group Year-on-Year Changes in Cost 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -10% -10%in inQ1 2007 2008 2009 -1% -2% Q1 -3% -4% -5% Adjusted for currency and acquisitions 22
Slide 23: Operating Cash Flow, MSEK
Operating Cash Flow, MSEK 2000 6500 1800 6000 1600 1400 5500 1200 12-months 5000 Quarter 1000 4500 800 600 4000 400 3500 200 0 3000 05 06 07 08 09 20 20 20 20 20 Quarter Rolling 12-months 23
Slide 24: Gearing % and Net Debt MSEK
Gearing % and Net Debt MSEK Net debt Gearing 16 000 120 14 000 100 12 000 80 10 000 8 000 60 6 000 Debt/Equity Debt/Equity71 71 40 4 000 20 2 000 0 0 2005 2006 2007 2008 2009 Net debt Gearing 24
Slide 25: Maturity Profile Gross Debt
Maturity Profile Gross Debt Gross debt CP CP 4.5 4.5 BSEK BSEK 10 000 Long Long 2.6 BSEK 2.6 BSEK 8 000 O/D O/D 1.5 1.5 BSEK BSEK 6 000 4 000 2 000 0 2009 2010 2011 2012 2013 2014 2015 2016- Covered by SEK 12 B back-up facility if necessary and 4 B in cash assets 25
Slide 26: Q1 Report 2009
Q1 Report 2009 Johan Molin President & CEO 26
Slide 27: Conclusion Q1 2009
Conclusion Q1 2009 8% growth Record profit despite recessionary headwind Continued investments in R&D and market presence 4 smaller acquisitions Strong operational cash flow 27
Slide 28: Short Term Actions 2009
Short Term Actions 2009 Stay close to customers – sales force maintained Continue investments in new products Cost reductions Cash and margin focus Be ready to react fast on market opportunities 28
Slide 29: ASSA ABLOY and the economic slowdown
ASSA ABLOY and the economic slowdown Significant construction slowdown in all parts of the world Raw material prices are reducing from Q1 Manufacturing footprint in full motion – Going forward 16 site closures and >1 750 people Contingency plans released Large savings realized, -21% employ
Slide 30: Outlook
Outlook Long Term Organic sales growth is expected to continue at a good rate The operating margin (EBIT) and operating cash flow are expected to develop well Outlook for 2009 Significant construction slowdown in all parts of the world Negative organic growth is expected Easter effect will
Slide 31: Q&A
Q&A 31
Slide 32: Summary
Summary Construction in recession throughout the world Q2 will be negatively affected by Easter Early reaction to downturn gives good savings Manufacturing Footprint program, raw materials and currency gives good benefit in the weak market 32