Q1 Report 2016 - Assa Abloy · 2016-04-27 · Financial highlights Q1, 2016 Good start of the year...
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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q1 Report 2016 Johan Molin President and CEO
Transcript of Q1 Report 2016 - Assa Abloy · 2016-04-27 · Financial highlights Q1, 2016 Good start of the year...
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
Q1 Report 2016Johan MolinPresident and CEO
Financial highlights Q1, 2016
Good start of the year – Strong growth in Americas – Good growth in EMEA and Entrance systems– Growth in Global tech and negative in APAC due to weak Chinese
market– Short quarter due to Easter
Sales 15,891 MSEK +4%3% organic, 3% acquired growth, -2% currency
EBIT 2,411 MSEK +4% Currency effect -76 MSEK
EPS 1.47 SEK +1%Underlying tax rate 26%
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6 innovation awards at ISC West– Quantum Secure, SAFE Engine – goID, virtualized Identity Platform– KS200, Wired server cabinet lock– M380, Eco-Magnalock– EcoFlex, electronic mortise lock
Strong door closer growth– New revolutionary super-silent door closer (Fensterbau)– New door operator with net-zero power consumption
Strong growth in Pedestrian Door Automation– New slider range fuels growth
Complete range of green eco hardware
Market highlights
Growth in Eco product lineEnergy harvesting Low power
Solar-powered lock Inductive power transfer
ADAEZ Power Operator
EcoMagTM
EcoFlexTM
EcoStrikeTM
EcoPowerTM
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Group sales in local currencies Jan-Mar 2016
3 +37
40 +713 +2
4 +0
1 +11
Share of Group sales 2016 YTD, %Year-to-date vs previous year, %
39 +5
Emerging markets 22% (23) of sales
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34 00037 00040 00043 00046 00049 00052 00055 00058 00061 00064 00067 00070 000
2009 2010 2011 2012 2013 2014 2015 2016
Growth %Sales MSEK
Organic Growth Acquired Growth Sales in Fixed Currencies
Sales growth, currency adjusted
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2016 Q1 +6%
Organic +3%
Acquired +3%
Operating income (EBIT), MSEK
4 5005 0005 5006 0006 5007 0007 5008 0008 5009 0009 50010 00010 50011 00011 500
1 0001 2001 4001 6001 8002 0002 2002 4002 6002 8003 0003 200
2009 2010 2011 2012 2013 2014 2015 2016
12-monthsQuarter
Quarter Rolling 12-months
Run rate 11,162 MSEK (9,728) +15%
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12
13
14
15
16
17
2009 2010 2011 2012 2013 2014 2015 2016
EBIT Margin
Quarter Rolling 12-months 2016 Acquisitions CurrencyQ1 -0.3% -0.2%
Operating margin, %
Run rate 2016 16.2% (16.3)
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Manufacturing footprint
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Status of manufacturing footprint programs 2006-2013:– 75 factories closed to date, 3 to go– 94 factories converted to assembly, 21 to go– 42 offices closed, 7 to go
Total personnel reduction: – 457 FTE in quarter – 11,207 FTE in total
644 FTE to go for all programs
457 MSEK of the provision remains for all programs
Margin highlights Q1 2016
EBIT margin 15.2% (15.3) -0.1%
+ Volume increase 2%, price 1%
Margin decline -0.1%+ 3% Organic growth + Manufacturing footprint & pricing- Currency -0.2%- Acquisitions -0.3%
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Acquisitions 2016
Fully active pipeline
3 acquisitions done in 2016
Divestment of Carlocks 550 MSEK
Acquired annualized sales 750 MSEK
Added sales 1%
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Lighthouse, USA
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Turnover of 350 MSEK with 150 employees
Strategic move into the direct channel in North America
A sectional door and docking distributor in North Carolina, USA
Platform for expansion
Accretive to EPS
ADAEZ, USA
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Turnover of 30 MSEK
Net-Zero power consumption door opener
Complementary product line, with niche applications like elderly care
Accretive to EPS
25%
SALES share of
Group total %
Division – EMEA
Strong growth in Scandinavia and eastern Europe
Good growth in Finland, Benelux, France and Italy
Growth in Germany and Israel and flat in UK and Iberia
Easter effect
Operating margin (EBIT) + Organic +3%
= Direct Material
- Investments in R&D
- Dilution from acq & currency -0.1%
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2010 2011 2012 2013 2014 2015 2016
EBIT %
MSEK 2015 2016 Change 2014 2015 Change
1st Quarter Twelve months
EMEA Financial Review
Sales 3,944 4,004 +2% 14,753 16,524 +12%Organic growth +3% +4%Acquired growth +2% +4%EBIT 626 634 +1% 2,432 2,620 +8%EBIT-margin (%) 15.9 15.8 16.5 15.9RoCE (%) 19.1 18.6 21.0 20.4Operating cash flowbefore paid interest 217 188 -13% 2,288 2,622 +15%
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Division - Americas
Strong growth in AHW, Elmech, Residential, Canada, Mexico and South America
Good growth in Doors
Growth in High Security
Good general activity level in the market
Operating margin (EBIT)
+ Organic +6%
+ Efficiency
- Currency and acq -1.2%
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20
18
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2010 2011 2012 2013 2014 2015 2016
EBIT %
25%
SALES share of
Group total %
Americas Financial Review
Sales 3,664 3,969 +8% 12,156 15,665 +29%Organic growth +6% +7%Acquired growth +3% +2%EBIT 772 824 +7% 2,613 3,363 +29%EBIT-margin (%) 21.1 20.8 21.5 21.5RoCE (%) 22.1 23.0 23.1 24.1Operating cash flowbefore paid interest 156 271 +74% 2,637 3,217 +22%
1st Quarter Twelve months
MSEK 2015 2016 Change 2014 2015 Change
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Division - Asia Pacific
Strong growth in New Zealand and South Asia
Negative in Australia and North Asia
Continued decline in China– Personnel reduction China –303 p
Operating margin (EBIT)
- Organic -3%
+ Savings mitigate sales decline
= Currency and acq 0%
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16
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2010 2011 2012 2013 2014 2015 2016
EBIT %
10%
SALES share of
Group total %
Asia Pacific Financial Review
Sales 1,847 1,758 -5% 8,336 10,171 +22%Organic growth -3% -3%Acquired growth +2% +9%EBIT 189 174 -8% 1,187 1,436 +21%EBIT-margin (%) 10.2 9.9 14.2 14.1RoCE (%) 7.1 5.7 14.2 12.6Operating cash flowbefore paid interest -212 -221 -4% 931 1,235 +33%
1st Quarter Twelve months
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MSEK 2015 2016 Change 2014 2015 Change
Division - Global Technologies
HID– Strong growth in Project sales,
IDT (inlays) and Quantum secure
– Growth in PACS (Access control)
– Decline in IAM (Identity) and Gov-Id
Hospitality– Growth
– Strong profit
Operating margin (EBIT)= Organic +1%
- Negative mix and R&D investments
- Currency and acq -0.5%
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2010 2011 2012 2013 2014 2015 2016
EBIT %
13%
SALES share of
Group total %
Global Technologies Financial Review
Sales 2,071 2,147 +4% 7,207 9,100 +26%Organic growth +1% +7%Acquired growth +4% +2%EBIT 360 363 +1% 1,368 1,647 +20%EBIT-margin (%) 17.4 16.9 19.0 18.1RoCE (%) 16.3 14.7 19.6 18.8Operating cash flowbefore paid interest 130 110 -15% 1,282 1,557 +21%
1st Quarter Twelve months
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MSEK 2015 2016 Change 2014 2015 Change
Division - Entrance Systems
Strong growth in 4Front, Amarr
Good growth in High Speed Doors and Door Automatics
Flat in EU Industrial and negative in EU Residential and Ditec
Good leverage from consolidation
Operating margin (EBIT) + Organic +3%
+ Consolidation effects
- Dilution from acq and currency -0.6%
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22
10
12
14
16
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2010 2011 2012 2013 2014 2015 2016
EBIT %
27%
SALES share of
Group total %
Entrance Systems Financial Review
Sales 4,041 4,291 +6% 15,409 17,957 +17%Organic growth +3% +5%Acquired growth +5% +1%EBIT 486 529 +9% 2,054 2,436 +19%EBIT-margin (%) 12.0 12.3 13.3 13.6RoCE (%) 11.6 12.3 13.1 14.9Operating cash flowbefore paid interest 462 403 -13% 2,007 2,637 +31%
1st Quarter Twelve months
MSEK 2015 2016 Change 2014 2015 Change
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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
Q1 Report 2016Carolina Dybeck HappeCFO
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
Financial highlights Q1 2016
MSEK 2015 2016 Change 2014 2015 Change
Sales 15,252 15,891 +4% 56,843 68,099 +20%Whereof Organic growth 680 448 +3% 1,510 2,634 +4%Acquired growth 376 490 +3% 4,714 2,078 +3%FX-differences 1,892 -299 -2% 2,138 +6,544 +13%
Operating income (EBIT) 2,329 2,411 +4% 9,257 11,079 +20%EBIT-margin (%) 15.3 15.2 16.3 16.3Operating cash flow 520 498 -4% 8,238 9,952 +21%
EPS (SEK) 1.45 1.47 +1% 5.79 6.93 +20%
1st Quarter Twelve months
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Bridge Analysis – Jan-Mar 2016
MSEK 2015
Jan-Mar
Organic Currency Acq/Div 2016
Jan-Mar
3% -2% 3% 4%
Sales 15,252 448 -299 490 15,891
EBIT 2,329 137 -76 22 2,411
% 15.3% 30.5% 25.6% 4.5% 15.2%
Dilution / Accretion 0.4% -0.2% -0.3%
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P&L Components as % of salesJan – Mar 2016
Direct material 35.6% 35.0% 34.5%
Conversion costs 25.3% 25.4% 25.9%
Gross Margin 39.1% 39.6% 39.6%
S, G & A 23.8% 24.1% 24.4%
EBIT 15.3% 15.5% 15.2%
2016Q1 excl
acquisitions
2015Q1
2016Q1
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Operating cash flow, MSEK
4 5005 0005 5006 0006 5007 0007 5008 0008 5009 0009 50010 00010 50011 000
0500
1 0001 5002 0002 5003 0003 5004 0004 5005 000
2009 2010 2011 2012 2013 2014 2015 2016
12-monthsQuarter
Quarter Cash Rolling 12-months EBT Rolling 12 months
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Gearing % and net debt, MSEK
0
20
40
60
80
100
120
0
5 000
10 000
15 000
20 000
25 000
30 000
2009 2010 2011 2012 2013 2014 2015 2016
GearingNet Debt
Net debt Gearing
Debt/Equity 58 (64)
Net debt/EBITDA2.0 (2.3)
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*) 2009-2011 Not restated for changed pension accounting principles.
Earnings per share, SEK
2.002.503.003.504.004.505.005.506.006.507.00
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2009 2010 2011 2012 2013 2014 2015 2016
12-monthsQuarter SEK
Quarter Rolling 12-months
30
Restated for Stock split 3:1 2015.
Dividend proposal 2016: 2.65 SEK (2.17)
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
Q1 Report 2016Johan MolinPresident and CEO
Conclusions Q1 2016
Good growth by 4% with 3% organic
Continued strong North America and positive evolution in Europe
Strong prize winning innovations
Good EBIT development by +4%
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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
Q&A
