ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience.

Transcription

1 ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q4 Report 20

2 Q4 20 in brief Organic growth in all divisions Strong growth in Global Tech and EMEA Continued good growth in Americas, Entrance Systems, and APAC, with flat sales in China Continued strong development for smart door locks and electromechanical solutions Strong profit and cash flow New CEO Nico Delvaux appointed 2

3 Q4 20 figures in summary Sales SEK 20,109 M +3% 5% organic 3% acquired Sales Sales +3% EBIT % currency EBIT SEK 3,359 M +5% * Amortization of acquisition-related intangible assets SEK 87 M (51) Currency effect SEK -130 M Operating margin.7% (.5 * ) EBITA-margin.1% (.8 * ) EPS SEK % ** 000 Q4 * Q4 Sales, SEK M EBIT, SEK M * Excluding China write down SEK 300 M and restructuring items in Q4 20. ** Excluding restructuring items. 3

4 Jan. Dec. 20 figures in summary Sales SEK 76,137 M +7% 4% organic Sales Sales +7% EBIT % acquired 1% currency EBIT SEK 12,341 M +7% * Amortization of acquisition-related intangible assets SEK 240M (200) Currency effect SEK 37 M Operating margin.2% (.2 * ) EBITA-margin.5% (.5 * ) EPS SEK % ** Jan-Dec 20 Jan-Dec 20 Sales, SEK M EBIT, SEK M * Excluding China write down SEK 300 M and restructuring items in Q4 20. ** Excluding restructuring items. 4

5 Sales by Region Full year 20 ASSA ABLOY Emerging markets Share of sales, % Change in local currencies YTD 20 vs. YTD 20, % Organic change YTD 20 vs. YTD 20, % Emerging markets comprise Africa, Asia (excl. Japan), the Middle East, Latin America and Eastern Europe. 5

6 Market highlights Strong e-cylinder demand New platform driver: Cliq Web Manager, Cliq-go, Medeco XT Bluetooth keys Additional sales from new pulse platform in Q Strengthened position in smart door locks Continued strong organic growth Launch of Amazon key partnership with Yale Gearing up for Yale Lock for nest - in store March 2018 Acquisition of August Home Major HID win for ecovers in South America New country win and leading regional reference ecover with Shielding material - New HID Technology Deliveries during 2018 with expected additional opportunities 6

7 Sales growth, currency adjusted 20 QTD Organic +5% Acquired +3% +8% % 25 SEK M Organic growth, % Acquired growth, % Sales in fixed currencies, SEK M

8 Operating margin, % Margin Bridge 20 OG Currency ACQ Q4 0.3% -0.1% 0.0% YTD 0.2% -0.1% -0.1% % 18 Run rate: EBIT-margin.2% * (.2) 18 Long term target range (average) Quarter Rolling 12-months * Excluding China write down SEK 300 M and restructuring items in Q

9 Operating profit, SEK M +65% in 5 years SEK M Run rate: EBIT SEK 12,341 M (11,554*) +7% SEK M Quarter Rolling 12-months * Excluding China write down SEK 300 M and restructuring items in Q

10 Manufacturing footprint Status of programs launched factories closed to date, 11 to go 126 factories converted to assembly, 28 to go Total personnel reduction 13,564 FTE in total since FTE in recent quarter 1,353 FTE to go for all programs SEK 944 M provisions remain for all programs 10

11 Acquisitions Fully active pipeline 19 acquisitions done Acquired annualized sales SEK 3,200 M Added sales 4% Divestment of AdvanIDe SEK 1,250 M 11

12 Phoniro, Sweden Turnover of SEK 5 M with 80 employees Leading provider of physical & digital security solutions for elderly care Development of homecare vertical Accretive to EPS 12

13 Dale & Excel Hardware, UK Turnover of SEK 210 M with 75 employees Market leading supplier of high quality architectural hardware Complements and extends current hardware portfolio Accretive to EPS Furniture Hinges Pocket Door Systems Installation tools 13

14 EMEA 24% of Group sales Organic growth of 5% % Strong growth in Finland, UK, France, Southern and Eastern Europe, and in Africa/Middle East % Good growth in Germany % Growth in Scandinavia and Benelux Strong growth for electromechanical products and smart door locks % % Operating margin.3% (.8) Organic growth leverage +0.4% % + Footprint savings and efficiency - Investments in sales Curr. 0.1% and Acq. 0.0% Q4 15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10% Sales, SEK M Operating margin, % Excluding restructuring items. 14

15 EMEA Financial Review SEK M Q4 20 Organic Currency Acq/Div Q4 20 Growth 5% 0% 2% 7% Sales 4, ,869 Operating income * Operating margin, % *.8% 25.4% 9.8% 18.8%.3% Dilution/accretion 0.4% 0.1% 0.0% 12 months figures * Sales,837 18,081 EBIT 2,722 2,990 Operating cash flow before paid interest 2,577 2,977 Cash flow/ebit 95% 99% * Excluding restructuring items for

16 Americas 21% of Group sales Organic growth of 4% Strong growth in Electromechanical, High Security, US Residential, Canada, Mexico and South America (excl. Brazil) Growth in Architectural Hardware, Perimeter Protection, Security Doors and in Brazil % 22% 20% 18% Operating margin 19.9% (20.8) Organic growth leverage +0.4% + Leverage - Material cost Curr. 0.0% Acq. -1.3% Q4 15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales, SEK M Operating margin, % % 14% Excluding restructuring items.

17 Americas Financial Review SEK M Q4 20 Organic Currency Acq/Div Q4 20 Growth 4% -8% 1% -3% Sales 4, ,243 Operating profit * Operating margin, % * 20.8% 29.6% 19.9% -72.4% 19.9% Dilution/accretion 0.4% 0.0% -1.3% 12 months figures * Sales,044,940 EBIT 3,640 3,815 Operating cash flow before paid interest 3,447 3,491 Cash flow/ebit 95% 92% * Excluding restructuring items for 20.

18 Asia Pacific 11% of Group sales Organic growth of 3% Strong growth in South Korea, South Asia, Pacific, and China Architectural Hardware Negative in China Fire and Security Doors Personnel adjustment in China YoY -8% Strong growth in Smart Door Locks Operating margin 9.7% (10.4*) Organic growth leverage -0.8% - China, incl. higher steel costs + Savings Curr. -0.2% Acq. 0.3% Q4 15 Q1 Q2 Q3 *Q4 Q1 Q2 Q3 Q4 Sales, SEK M Operating margin, % 15% 10% 5% 0% *Excluding write down in China in Q4 20 and restructuring items. 18

19 Asia Pacific Financial Review SEK M Q4 20 Organic Currency Acq/Div Q4 20 Growth 3% -4% 0% -1% Sales 2, ,400 Operating profit * Operating margin, % * 10.4% -19.5% 14.4% 76.6% 9.7% Dilution/accretion -0.8% -0.2% 0.3% 12 months figures * Sales 9,189 9,211 EBIT 1, Operating cash flow before paid interest 1, Cash flow/ebit 199% 92% * Excluding China write down SEK 300 M and restructuring items in Q

20 Global Technologies 14% of Group sales Organic growth of 9% % HID Strong growth in Access Control (Mobile keys), Secure Issuance, Citizen ID and Identification Technology % Negative in Identity & Access management Strong seasonality in acquired businesses % Hospitality Strong growth, including Mobile keys % Operating margin 21.5% (18.6) Organic growth leverage 0.9% Curr. 0.2% and Acq. 1.8% Q4 15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales, SEK M Operating margin, % 14% Excluding restructuring items. 20

21 Global Technologies Financial Review SEK M Q4 20 Organic Currency Acq/Div Q4 20 Growth 9% -6% 2% 5% Sales 2, ,835 Operating profit * Operating margin, % * 18.6% 30.8%.9% 123.8% 21.5% Dilution/accretion 0.9% 0.2% 1.8% 12 months figures * Sales 9,697 10,373 EBIT 1,752 1,946 Operating cash flow before paid interest 1,724 1,732 Cash flow/ebit 98% 89% * Excluding restructuring items for

22 Entrance Systems 30% of Group sales Organic growth of 3% Strong growth in Pedestrian Doors, Door components, Industrial and High speed doors. Good growth in Residential doors Negative sales in warehouse and logistics solutions Operating margin 15.9% (15.4) Organic growth leverage +0.6% + Good leverage from consolidation % % % 15% 14% 13% 12% 11% Curr. 0.1% and Acq. -0.2% % Q4 15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales, SEK M Operating margin, % Excluding restructuring items. 22

23 Entrance Systems Financial Review SEK M Q4 20 Organic Currency Acq/Div Q4 20 Growth 3% -3% 5% 5% Sales 5, ,072 Operating profit * Operating margin, % * 15.4% 35.8% 13.9% 12.7% 15.9% Dilution/accretion 0.6% 0.1% -0.2% 12 months figures * Sales 19,789 21,781 EBIT 2,753 3,087 Operating cash flow before paid interest 2,713 3,065 Cash flow/ebit 99% 99% * Excluding restructuring items for

24 ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q4 Report 20 Carolina Dybeck Happe CFO

25 Financial highlights October - December January - December SEK M Change Change Sales 19,484 20,109 3% 71,293 76,137 7% - Organic growth % 1,428 2,834 4% - Acquired growth % 1,967 1,753 2% - FX-differences % % Operating income (EBIT) * 3,213 3,359 5% 11,554 12,341 7% EBITA-margin *.8%.1%.5%.5% EBIT-margin *.5%.7%.2%.2% Income before tax ** 2,767 3,226 % 10,549 11,673 11% Net income ** 2,088 2,385 14% 7,874 8,635 10% EPS, SEK ** % % Operating cash flow 4,620 4,876 6% 10,467 10,929 4% * Excluding China write down SEK 300 M and restructuring items in Q4 20. ** Excluding restructuring items. 25

26 Bridge Analysis Q4 20 SEK M Q4 20 Organic Currency Acq/Div Q4 20 5% -5% 3% 3% Sales 19, ,109 Operating profit * 3, ,359 Operating margin, % *.5% 22.6%.7%.0%.7% Dilution/accretion 0.3% -0.1% 0.0% Price +2% and volume +3% Positive leverage from all divisions, except APAC Accretion from acquisitions/divestments in Global Technologies Dilution from acquisitions in Americas and Entrance Systems * Excluding write down in China and restructuring items in Q

27 P&L components as % of sales January - December 20 % YTD 20 YTD 20 excl. acquisitions Δ YTD 20 Direct material -35.9% -36.5% -0.6% -36.3% Conversion cost -24.6% -24.2% +0.4% -24.3% Gross margin 39.5% 39.3% -0.2% 39.4% S, G & A -23.3% -23.0% +0.3% -23.2% EBIT *.2%.3% +0.1%.2% Higher material cost and lower conversion cost Organic growth leverage S, G & A down 0.3% vs. previous year, despite investments in R&D and sales * Excluding China write down SEK 300 M and restructuring items in Q

28 Operating cash flow, SEK M Quarter months cash flow / EBT = 94% months Quarter, SEK M Cash rolling 12 months, SEK M EBT rolling 12 months, SEK M 28

29 Gearing % and net debt, SEK M Net debt/ebitda 1.8 (1.8) Net debt Debt/Equity 50% (49) Gearing Net debt, SEK M Gearing, % 0 29

30 Earnings per share, SEK +67% in 5 years Quarter 2.25 YTD EPS +10% * Dividend proposal 20: 3.30 SEK, +10% 12 months Quarter, SEK Rolling 12 months, SEK * Excluding restructuring items in Q4 20. Chart is restated for Stock split 3: and excludes cost for restructuring programs in 2013 and

31 ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q4 Report 20 Johan Molin President and CEO

32 Conclusions Q4 20 Sales +8%, excluding currency Strong growth in Global Tech and EMEA Continued good growth in Americas, Entrance Systems, and APAC, with flat sales in China Strong development for smart door locks and electromechanical solutions Strong profit and cash flow * Excluding write down in China and restructuring items in Q

33 Q&A

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