Q3 Report October 25, 2017

Transcription

1 Q3 Report 2017 October 25, 2017

2 CEO s comments A weak operating profit, 49 MSEK (91). Different trends across the business. Organic sales growth: APAC +9% EMEA -5% Americas +/- 0 Overall the sales contracted organically by -2% Profit development has not been satisfactory due to both onetime and structural effects Page 2 GUNNEBO Q3 REPORT 2017

3 Third Quarter 2017 in Brief Q3 IN BRIEF Q3 Q3 YTD YTD Full year Net sales, MSEK 1,409 1,448 4,359 4,312 6,088 EBITDA excl. non-recurring items, MSEK EBITDA margin excl. non-recurring items, % EBITDA, MSEK EBITDA margin, % Operating profit (EBIT) excl. non-recurring items, MSEK Operating margin (EBIT) excl. non-recurring items, % Operating profit (EBIT), MSEK Operating margin (EBIT), % Net profit for the period, MSEK Basic earnings per share, SEK Free cash flow, MSEK Page 3 GUNNEBO Q3 REPORT 2017

4 Net Sales, MSEK Sales by Product Area, YTD Page 4 GUNNEBO Q3 REPORT 2017

5 Organic Sales Growth by Quarter Page 5 GUNNEBO Q3 REPORT 2017

6 Sales Growth by Quarter and YTD by Region SALES VS LAST YEAR (QTD) Organic Structure Currency Total EMEA -5% 0% 0% -5% APAC 9% 0% -3% 6% AMERICAS 0% 0% -2% -2% TOTAL -2% 0% -1% -3% SALES VS LAST YEAR (YTD) Organic Structure Currency Total EMEA -2% 0% 2% 0% APAC -3% 0% 4% 1% AMERICAS 2% 0% 4% 6% TOTAL -1% 0% 2% 1% Page 6 GUNNEBO Q3 REPORT 2017

7 Organic Sales Growth Development by Region Q vs Q EMEA Asia-Pacific Americas Sales: -5% Sales: +9% Sales: 0% Group Sales: -2% Page 7 GUNNEBO Q3 REPORT 2017

8 Region Europe, Middle East & Africa (EMEA) Q ,200 1, Sales per quarter Operating margin %, excl. non-recurring items REGION EMEA Operating margin % 12M, excl. non-recurring items 7% 6% 5% 4% 3% 2% 1% 0% Q3 Q3 YTD YTD Full year Net sales, MSEK ,773 2,776 3,907 Organic growth, % Operating profit excl. non-recurring items, MSEK Operating margin excl. non-recurring items, % Non-recurring items, MSEK Operating profit, MSEK Sales decreased organically by -5% Strong development of sales in UK and Middle East Weaker development on all other markets, especially France where a strategic review is ongoing Excluding France sales in the region had an organic decline of 3%, and the Group was flat Local production in South Africa under closure, full focus on customers and sales Cash Management and Entrance Security showed good sales development in the quarter Gunnebo was named Security Company of the Year in Denmark at the annual Security User Expo and in Sweden, Gunnebo received a prestigious award from the Nordic security industry. EMEA Sales by Product Area, YTD 2017 Page 8 GUNNEBO Q3 REPORT 2017

9 Closure of Manufacturing in South Africa In recent years, the economic climate and trading conditions in South Africa and other markets in Sub-Saharan Africa have been adverse, resulting in the underutilisation of the local manufacturing unit in Wadeville To improve profitability and allow full focus on customers and sales, the decision has been made to close the manufacturing unit in Wadeville, South Africa The closure affects some 100 employees. It will be finalised during 2017 Going forward, products will be supplied from Gunnebo s global Product Areas Cash Management, Entrance Security and Safes & Vaults respectively Page 9 GUNNEBO Q3 REPORT 2017

10 Region Asia-Pacific Q % 16% 14% 12% 10% 8% 6% 4% 2% 0% Sales increased organically by 9% During the quarter the OKI fire project was finalized as planned, having a positive effect on both sales and profitability development Good development on all markets in the region except India, where sales to public banks continued to contract Entrance Security, Electronic Security and Fire project sales developed well Sales per quarter Safes & Vaults had a weaker sales development Operating margin %, excl. non-recurring items Operating margin % 12M, excl. nonrecurring items REGION ASIA-PACIFIC Q3 Q3 YTD YTD Full year APAC Sales by Product Area, YTD 2017 Net sales, MSEK ,129 Organic growth, % Operating profit excl. non-recurring items, MSEK Operating margin excl. non-recurring items, % Non-recurring items, MSEK Operating profit, MSEK Page 10 GUNNEBO Q3 REPORT 2017

11 Region Americas Q Sales per quarter Operating margin %, excl. nonrecurring items REGION AMERICAS Operating margin % 12M, excl. non-recurring items 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Q3 Q3 YTD YTD Full year Net sales, MSEK ,052 Organic growth, % Operating profit excl. non-recurring items, MSEK Operating margin excl. non-recurring items, % Non-recurring items, MSEK Operating profit, MSEK Organic sales development was flat Positive development of sales in Brazil, weaker on other markets in the region Strong sales of Cash Management, driven by drive-up tube systems to customers in the US. First order delivered in Mexico. Weak development in Safes & Vaults due to low sales to US public authorities Weak development of Electronic Security and related services, mainly explained by lower activity of sales in Mexico due to the earthquake at the end of the period Gunnebo is rated as the main brand within antishoplifting surveillance technology by retailers in Brazil as part of the Annual Brand Survey carried out by Supermercado Moderno magazine Americas Sales by Product Area, YTD 2017 Page 11 GUNNEBO Q3 REPORT 2017

12 Gunnebo s Product Areas and % of Sales YTD % 19% 22% 18% 8% Cash Management Entrance Security Safes & Vaults Electronic Security Other Deposit Dispensing Recycling Closed Cash Management Systems Services Entrance Control Security Doors & Partitions Electronic Article Surveillance Services Safes Vaults & Vault Doors Safe Deposit Lockers ATM Safes Services Access Control Intrusion Detection Electronic Locking Remote Monitoring Services Fire Safety products and services Other traded products and services Page 12 GUNNEBO Q3 REPORT 2017

13 Product Area Cash Management Good sales development in the quarter Growth area has continued to strengthen the offering and competence 19% Continued roll-out of cash management together with a CIT partner in the Middle East Continued good sales in the US First delivery completed in Mexico SafePay growing demand for closed cash management outside the Nordics. Good level of sales in France and the UK in the quarter. Order for SafePay received from major Swedish retailer to outlet in Thailand Cash Management Deposit Dispensing Recycling Closed Cash Management Systems Services Page 13 GUNNEBO Q3 REPORT 2017

14 Product Area Entrance Security Strong sales development in the quarter from many markets, especially good in China 22% New orders to metro lines, as well as first order for a high-speed train station in China Another interesting customer segment is Airport. During the quarter an order to supply immigration gates for the border control at Marseilles airport was received Good development of sales to public and commercial buildings in the quarter. Examples of orders include a battery plat in South Korea and an office building project in the Philippines. Within the high-risk site market segment, Gunnebo has received a prestigious order from a public authority in Australia Entrance Security Entrance Control Security Doors & Partitions Electronic Article Surveillance Services Page 14 GUNNEBO Q3 REPORT 2017

15 Product Area Safes & Vaults Sales had a slow development in the quarter: 33% Sales of graded safes and vaults decreased in the quarter mainly due to slower business in France, US, South Europe, India and South Africa Sales of safes to global manufacturers of ATMs down from a high level mainly due to lower volumes in India The interest for the automated safe deposit locker system, Safe Store Auto, has continued to be good during the quarter and several new orders were received First order received from a private real estate investor in China Safes & Vaults Safes Vaults & Vault Doors Safe Deposit Lockers ATM Safes Services Page 15 GUNNEBO Q3 REPORT 2017

16 Product Area Electronic Security 18% Sales in the quarter declined, derived mainly from market segment bank in France which is the biggest market for this product area Another big market is Mexico, where sales in the quarter were down due to poor market conditions and effects from the earthquake in September Electronic Security Access Control Intrusion Detection Electronic Locking Remote Monitoring Services Page 16 GUNNEBO Q3 REPORT 2017

17 Other - Fire Projects 8% Sales within Fire Projects, which is a niche business in South-East Asia, had a good development in the quarter where the large-scale OKI-project was finalized Other Fire Safety products and services Other traded products and services Page 17 GUNNEBO Q3 REPORT 2017

18 Operating Profit by Quarter, MSEK Full year Operating profit excl. non-recurring items 2016: : 397 Operating profit 2016: : 320 Operating profit Operating profit, excl. non-recurring items Page 18 GUNNEBO Q3 REPORT 2017

19 Operating Profit and EBITDA by Quarter, excl. Non-Recurring Items Operating Profit EBITDA Page 19 GUNNEBO Q3 REPORT 2017

20 Operating Profit Bridge by Quarter and YTD OPERATING PROFIT BRIDGE Q3 Operating profit Organic -5 Structure 9 Currency 0 Other -46 Operating profit OPERATING PROFIT BRIDGE YTD Operating profit Organic -13 Structure 45 Currency 18 Other -74 Operating profit Page 20 GUNNEBO Q3 REPORT 2017

21 Operating Margin by Quarter, % 12% 10% 8% 6% Full year Operating margin, excl. non-recurring items 2016: : 6.6 4% 2% 0% Operating margin 2016: : 5.3 Operating margin %, quarter Operating margin %, LTM Operating margin % quarter, excl. non-recurring items Operating margin % LTM, excl. non-recurring items Page 21 GUNNEBO Q3 REPORT 2017

22 Group Income Statement Page 22 GUNNEBO Q3 REPORT 2017

23 Free Cash Flow by Quarter and Last Twelve Months Free cash flow 12M Page 23 GUNNEBO Q3 REPORT 2017

24 Free Cash Flow MSEK 2017 Q Q YTD 2016 YTD 2016 Full year Operating profit Depreciation Amortisation- acquisition-related intangibles Amortisation - other intangibles Other Change in working capital Operating cash flow Investing cash flow excluding acquisitions Free cash flow Page 24 GUNNEBO Q3 REPORT 2017

25 Net Debt NET DEBT INCL. & EXCL. PENSION + NET LEVERAGE Net debt Pension liability Net leverage Page 25 GUNNEBO Q3 REPORT 2017

26 Group Financial Targets & Outcome FINANCIAL TARGETS & OUTCOME Target Q3 Q3 YTD YTD Full year 12M Organic growth -2% -1% -1% 0% 1% 0% 5% Operating margin 1) 4.8% 7.3% 5.4% 6.2% 7.2% 6.6% 7.0% Return on capital employed 1) 2) 11.4% 12.4% 11.4% 12.4% 12.8% 11.4% 15.0% Equity ratio 34% 32% 34% 32% 34% 34% 30% 1) Excluding non-recurring items 2) During the last twelve-month period Page 26 GUNNEBO Q3 REPORT 2017

27 Welcome to Gunnebo s Capital Market Day 2017! When? November 23 Where? Fotografiska, Stockholm Agenda Update on Gunnebo s strategic agenda Presentation of Gunnebo s major Product Areas Demonstration of Gunnebo s Retail Solution, that connects security products and other retail systems on one platform Q&A session Registration: malin.serrander@gunnebo.com Page 27 GUNNEBO Q3 REPORT 2017

28 Financial Calendar 2017 Financial Calendar 2017/ Year-End Report 2017 February 2, 2018 Interim Report Q April 24, 2018 NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT Interim Report Q October 23, 2018 Capital Markets Day 2017 November 23, 2017 AGM 2018 April 12, 2018 Interim Report Q July 19, 2018 Page 28 GUNNEBO Q3 REPORT 2017

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