Q3 Report 2013 Johan Molin President & CEO 1 Financial - - PowerPoint PPT Presentation

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Q3 Report 2013 Johan Molin President & CEO 1 Financial - - PowerPoint PPT Presentation

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Q3 Report 2013 Johan Molin President & CEO 1 Financial highlights Q3 2013 Good Grow th in all parts except Europe Strong growth in Americas, APAC and Global Tech EMEA bottoming ESD slightly negative Important gains of

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1

Q3 Report 2013

Johan Molin President & CEO

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SLIDE 2

Financial highlights Q3 2013

  • Good Grow th in all parts except Europe

– Strong growth in Americas, APAC and Global Tech – EMEA bottoming – ESD slightly negative – Important gains of efficiency and savings – Preparation for new Manufacturing footprint

  • Sales

1 2 ,1 3 1 MSEK + 5 % + 3% organic, + 3% acquired growth, -1% currency

  • EBI T

2 ,0 9 0 MSEK + 8 % Currency effect -56 MSEK

  • EPS

3 .9 8 SEK + 1 3 % Forecasted tax rate 25%

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SLIDE 3

Financial highlights Jan-Sep 2013

  • Good perform ance in a tough m arket
  • Sales

3 5 ,2 3 9 MSEK + 2 % + 2% organic, + 4% acquired growth, -4% currency

  • EBI T

5 ,7 2 2 MSEK + 5 % Currency effect -215 MSEK

  • EPS

1 0 .7 6 SEK + 6 % Forecasted tax rate 25%

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SLIDE 4
  • Strong sales of new SE-reader

– Multi technology, virtual keys, speed of reading

  • Most innovative product awards ASIS, USA

– 4 out of 10 first prices out of 600 exhibitors

  • Success for Nexgen e-cylinder technology

– Several large orders for vending and parking

  • Yale DDL chosen for home automation

– Broad European launch with Verisure

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Market highlights

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SLIDE 5

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Group sales in local currencies Jan-Sep 2013

2 + 1 2 3 2 + 1 7 1 7 + 1 1 5 + 6 1 + 4

Share of Group sales 2 0 1 3 YTD, % Year-to-date vs previous year, %

4 3

  • 3
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SLIDE 6
  • 15
  • 12
  • 9
  • 6
  • 3

3 6 9 12 15 18 21 24 26 000 28 000 30 000 32 000 34 000 36 000 38 000 40 000 42 000 44 000 46 000 48 000 2006 2007 2008 2009 2010 2011 2012 2013

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales growth, currency adjusted

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2 0 1 3 Q3 + 6 % Organic + 3 % Acquired + 3 %

Sales MSEK Growth, %

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SLIDE 7

Operating income (EBIT), MSEK

3 500 4 000 4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 800 900 1 000 1 100 1 200 1 300 1 400 1 500 1 600 1 700 1 800 1 900 2 000 2 100 2 200 2006 2007 2008 2009 2010 2011 2012 2013

Quarter Rolling 12-months Quarter 12-months

Run rate 7 ,7 5 1 MSEK ( 7 ,3 5 3 ) + 5 %

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SLIDE 8

12,0 13,0 14,0 15,0 16,0 17,0 2006 2007 2008 2009 2010 2011 2012 2013

Quarter Rolling 12-months

2 0 1 3 Dilution QTD 0 .1 % YTD 0 .0 %

Operating margin (EBIT)* , %

Run rate 2 0 1 3 1 6 .3 % ( 1 5 .8 )

Long term target range ( average)

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EBIT Margin * ) Excluding restructuring costs.

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SLIDE 9

Manufacturing footprint

  • Status manufacturing footprint programs 2006-2011:

– 56 factories closed to date, 12 to go – 68 factories converted to assembly, 7 to go – 28 offices closed, 1 to go

  • Personal reduction 7,084p and 451p remains
  • New MFP program planned in Q4

– Closure of 30 entities – Payback of approx. 3 years – Cost estimate 1,000 MSEK

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SLIDE 10

Margin highlights Q3 2013

EBI T m argin 1 7 .2 % ( 1 6 .7 ) 0 .5 % + Volume increase + 2% , price + 1% + Margin expansion 0.5% = Organic growth + Manufacturing footprint + Capacity adjustments

  • Dilution from Currency -0.2%

+ Acquisitions + 0.1%

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SLIDE 11

Acquisitions 2013

  • Fully active pipeline
  • 1 0 acquisitions done in 2 0 1 3
  • Annualized sales 2 ,3 0 0 MSEK
  • Added sales 5 %

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SLIDE 12

Ameristar, USA

  • Turnover of 1,100 MSEK with

650 employees

  • The leading US manufacturer of

perimeter security solutions

  • Complements the ASSA ABLOY
  • ffering of security solutions in

the American market

  • Reinforces the market

leadership in North America

  • Accretive to EPS

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SLIDE 13

Mercor, Poland

  • Turnover of 370 MSEK with

550 employees

  • Leading Polish manufacturer of

security and fire doors

  • Offers complete door opening

solutions

  • Will significantly reinforce the

market position in Eastern Europe

  • Accretive to EPS

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SLIDE 14

Xinmao, China

  • Turnover of 190 MSEK with 360

employees

  • Market leader in Heilongjiang of

fire rated & security doors

  • Supply of total hardware package

& installation

  • Good synergies on products and

market coverage

  • Accretive to EPS

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SLIDE 15

Huasheng, China

  • Turnover of 210 MSEK with 460

employees

  • Market leader in Shandong of fire

rated & security doors

  • Supply of total hardware package

& installation

  • Good synergies on products and

market coverage

  • Accretive to EPS

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SLIDE 16

Division - EMEA

  • Bottoming with slight growth
  • Growth in Scandinavia, Finland, Germany, Italy,

Africa and Eastern Europe

  • Stable in the UK
  • Decline in France, Holland, Iberia and Israel
  • JPM factory France closed
  • Operating margin (EBIT)

= Organic 1%

  • Material cost

+ Footprint savings = SG&A

SALES share of Group total %

27

16 13 14 15 16 17 18 19 2008 2009 2010 2011 2012 2013 EBI T %

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SLIDE 17

Division - Americas

  • Strong growth in AHW, Electromechanical, Residential

and South America

  • Growth in Doors and High security
  • Slightly negative in Mexico and Canada
  • Continued investments in R&D and front end
  • Operating margin (EBIT)

+ Organic + 7% + Material cost + Efficiency improvement

  • R&D and front end

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SALES share of Group total %

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18 19 20 21 22 2008 2009 2010 2011 2012 2013 EBI T %

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SLIDE 18

Division - Asia Pacific

  • Strong growth in Australia, New Zealand and Korea
  • Good growth in China
  • Decline in South East Asia
  • Profit improvement coming from overall volume

growth and cost control in China

  • Operating margin (EBIT)

= Organic + 6% + Material cost + Efficiency in China

  • Mix & cost pressure

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SALES share of Group total %

5 7 9 11 13 15 17 2008 2009 2010 2011 2012 2013 EBI T %

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SLIDE 19

Division - Global Technologies

  • HID

– Good growth of Access control and Secure Issuance – Strong growth in Project sales – Negative in Government ID and stable in IDT – Strong profit improvement

  • Hospitality

– Good growth from the renovation market – Solid profit development

  • Operating margin (EBIT)

+ Organic + 7% + Good cost control + All parts doing well on margin

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SALES share of Group total %

13 14 15 16 17 18 19 20 2008 2009 2010 2011 2012 2013 EBI T %

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SLIDE 20

Division - Entrance Systems

  • Europe weak while Americas & Asia are growing
  • Stable sales in Door automatics and Industrial doors
  • Negative sales of High speed doors and dockings
  • Continued decline in Ditec due to weak southern

Europe

  • Sales + 9% and EBIT + 10%
  • Operating margin (EBIT)
  • Organic -1%
  • Dilution & currency -0.4%
  • Good product cost reductions
  • Strong efficiency improvements

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SALES share of Group total %

12 13 14 15 16 17 18 19 2008 2009 2010 2011 2012 2013 EBI T %

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SLIDE 21

26

Q3 Report 2013

Carolina Dybeck Happe CFO

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SLIDE 22

Financial highlights Q3 2013

MSEK 2012 2013 Change 2012 2013 Change

Sales 11,545 12,131 5% 34,380 35,239 +2% Whereof Organic growth +3% +2% Acquired growth +3% +4% FX-differences

  • 133
  • 1%
  • 1,021
  • 4%

Operating income (EBIT) 1,932 2,090 +8% 5,471 5,722 +5% EBIT-margin (%) 16.7 17.2 15.9 16.2 Operating cash flow 1,967 2,175 +11% 3,885 4,262 +10% EPS (SEK)* 3.53 3.98 +13% 10.18 10.76 +6%

3rd Quarter Nine months

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* ) excluding non comparable items

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SLIDE 23

Bridge Analysis – Jul-Sep 2013

MSEK

2012 Jul-Sep Organic Currency Acq/ Div 2013 Jul-Sep

3%

  • 1%

3% 5%

Revenues

11,545 362

  • 133

358 12,131

EBIT

1,932 136

  • 56

78 2,090

%

16.7% 37.5% 41.9% 21.8% 17.2%

Dilution / Accretion

0.6%

  • 0.2%

0.1%

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SLIDE 24

P&L – Components as % of sales

  • Direct material

35.1% 34.9% 35.2%

  • Conversion costs

25.0% 25.0% 24.9%

  • Gross Margin

39.9% 40.1% 39.9%

  • S, G & A

23.2% 23.0% 22.7%

  • EBIT

16.7% 17.1% 17.2% 2 0 1 3

Q3 excluding acquisitions

2 0 1 2

Q3

2 0 1 3

Q3

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SLIDE 25

Operating cash flow, MSEK

3 000 3 500 4 000 4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 500 1 000 1 500 2 000 2 500 3 000 3 500 2006 2007 2008 2009 2010 2011 2012 2013 Quarter Cash Rolling 12-months EBT Rolling 12 months

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Quarter 12 months

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SLIDE 26

Gearing % and net debt MSEK

20 40 60 80 100 120 5 000 10 000 15 000 20 000 25 000 30 000 2006 2007 2008 2009 2010 2011 2012 2013

Net debt Gearing

Debt/ Equity 6 3 ( 7 2 ) Net debt/ EBI TDA 2 .0 ( 2 .1 )

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Net Debt Gearing

* ) 2006-2011 Not restated for changed pension accounting principles.

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SLIDE 27

Earnings per share, SEK

5,00 6,00 7,00 8,00 9,00 10,00 11,00 12,00 13,00 14,00 15,00 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00

2006 2007 2008 2009 2010 2011 2012 2013

Quarter Rolling 12-months Quarter SEK 12-months

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* ) Excluding restructuring costs. * * ) 2006-2011 Not restated for changed pension accounting principles.

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SLIDE 28

33

Q3 Report 2013

Johan Molin President & CEO

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SLIDE 29

Conclusions Q3 2013

  • Good growth in all parts except Europe
  • Strong growth in Americas, APAC and Global Tech
  • EMEA bottoming and ESD slightly negative
  • Strong efficiency improvements supports profit
  • Preparation for new Manufacturing Footprint
  • Strong cash flow and record EBIT of 2,090 MSEK + 8%

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Q&A