Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Q2 1 April - 30 june 2016 Presentation

461 views

Published on

The ASSA ABLOY Group released the interim report second quarter April-June 2016 on Tuesday 19 July 2016.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Q2 1 April - 30 june 2016 Presentation

  1. 1. ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q2 Report 2016 Johan Molin President and CEO
  2. 2. Financial highlights Q2, 2016  Strong growth in mature markets – Strong growth in Americas, EMEA and Global Tech – Good growth in Entrance Systems – Negative in APAC due to weak Chinese market  Sales 17,894 MSEK +5% 4% organic, 4% acquired growth, -3% currency  EBIT 2,910 MSEK +6% Currency effect -81 MSEK  EPS 1.82 SEK +7% Underlying tax rate 26% 2
  3. 3. Financial highlights Jan-Jun 2016  Strong development despite a challenging market – Strong growth in Americas – Good growth in Entrance Systems, EMEA and Global Tech – Negative growth in APAC due to China  Sales 33,785 MSEK +4% 4% organic, 3% acquired growth, -3% currency  EBIT 5,321 MSEK +5% Currency effect -158 MSEK  EPS 3.30 SEK +5% Underlying tax rate 26% 3
  4. 4.  ASSA ABLOY in Forbes 100 most innovative companies  Strong development in EMEA digital product sales – Driven by APERIO and smart door locks  Successful roll out of Service centers in USA – Incremental growth through local service and quick deliveries  Japanese profile CLIQ-cylinder – Orders and quick pipeline build Flash DSC Market highlights
  5. 5. 5 Group sales in local currencies Jan-Jun 2016 3 +39 40 +7 15 +1 3 +1 1 +12 Share of Group sales 2016 YTD, % Year-to-date vs previous year, % 38 +7 Emerging markets 23% (25) of sales
  6. 6. -15 -12 -9 -6 -3 0 3 6 9 12 15 18 21 34 000 37 000 40 000 43 000 46 000 49 000 52 000 55 000 58 000 61 000 64 000 67 000 70 000 2009 2010 2011 2012 2013 2014 2015 2016 Growth %Sales MSEK Organic Growth Acquired Growth Sales in Fixed Currencies Sales growth, currency adjusted 6 2016 Q2 +8% Organic +4% Acquired +4%
  7. 7. Operating income (EBIT), MSEK 4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 8 500 9 000 9 500 10 000 10 500 11 000 11 500 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 2 600 2 800 3 000 3 200 2009 2010 2011 2012 2013 2014 2015 2016 12-monthsQuarter Quarter Rolling 12-months Run rate 11,329 MSEK (10,251) +11% 7
  8. 8. 12 13 14 15 16 17 2009 2010 2011 2012 2013 2014 2015 2016 EBIT Margin Quarter Rolling 12-months 2016 Acquisitions Currency Q2 -0.2% -0.1% Operating margin, % Run rate 2016 16.3% (16.3) 8
  9. 9. Manufacturing footprint 9  Status of manufacturing footprint programs 2006-2013: – 76 factories closed to date, 2 to go – 99 factories converted to assembly, 16 to go  Total personnel reduction: – 11,356 FTE in total  493 FTE to go for all programs  New MFP in progress  395 MSEK of the provision remains for all programs
  10. 10. Margin highlights Q2 2016 EBIT margin 16.3% (16.1) +0.2% + Volume increase 3%, price 1% Margin improvement + 4% Organic growth + Manufacturing footprint & pricing - Currency -0.1% - Acquisitions -0.2% 10
  11. 11. Acquisitions 2016  Fully active pipeline  9 acquisitions done in 2016  Divestment of Carlocks 550 MSEK  Acquired annualized sales 1,700 MSEK  Added sales 2.5% 11
  12. 12. Nassau, Denmark 12  Turnover of 540 MSEK with 360 employees  Important European supplier of industrial doors  Adds additional coverage in industrial doors and service  Neutral to EPS
  13. 13. Demoteller, USA 13  Turnover of 85 MSEK with 32 employees  Solutions for the financial card instance issuance market  Enhances position within secure issuance  Accretive to EPS Trism (Fii Software)
  14. 14. Mauer, Bulgaria 14  Turnover of 100 MSEK with 200 employees  Manufacturer of cylinders and locks  Market Leader of locking products in Bulgaria  Accretive to EPS
  15. 15. Division – EMEA  Strong growth in Scandinavia, Finland, Germany, Iberia, Eastern Europe and Africa  Good growth in UK, Benelux, France, Italy and Israel  Strong progress of elmech solutions  Positive calendar effect  Operating margin (EBIT) + Organic +6% = Direct material - Acquisitions & currency -0.2% 15 13 14 15 16 17 18 19 2010 2011 2012 2013 2014 2015 2016 EBIT % 23% Sales share of Group total %
  16. 16. Division - Americas  Strong growth in Door group, Elmech, Residential, Canada, Mexico and South America (ex Brazil)  Good growth in AHW, High security and Canada  Negative in Brazil  Quotation levels continue to develop positive  Operating margin (EBIT) + Organic +8% + Direct Material - Acquisitions and currency -0.7% 17 20 18 19 20 21 22 23 2010 2011 2012 2013 2014 2015 2016 EBIT % 24% Sales share of Group total %
  17. 17. Division - Asia Pacific  Strong growth in Pacific  Good growth in South Asia and Korea  Continued decline in China – Personnel reduction China YTD–586 p  Exciting orders for elmech in Japan  Operating margin (EBIT) - Organic -6% + Savings mitigate sales decline = Acquisitions and currency 0.2% 14 19 8 10 12 14 16 18 2010 2011 2012 2013 2014 2015 2016 EBIT % 13% Sales share of Group total %
  18. 18. Division - Global Technologies  HID – Strong growth in PACS, Gov ID, IDT (inlays) and Quantum secure – Flat in IAM (Identity) and project sales  Hospitality – Growth – Strong profit  Operating margin (EBIT) + Organic +5% - R&D investments - Acquisitions and currency -0.1% 13 21 14 15 16 17 18 19 20 21 2010 2011 2012 2013 2014 2015 2016 EBIT % 13% Sales share of Group total %
  19. 19. Division - Entrance Systems  Strong growth in Door automatics, EU Industrial, High speed doors  Good growth in Amarr and 4Front and Ditec  Negative in EU Residential  Continued good leverage  Operating margin (EBIT) + Organic +4% + Direct Material and consolidation effects - Acquisitions and currency -0.3% 28 23 10 12 14 16 18 2010 2011 2012 2013 2014 2015 2016 EBIT % 27% Sales share of Group total %
  20. 20. ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q2 Report 2016 Carolina Dybeck Happe CFO ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
  21. 21. Financial highlights Q2 2016 MSEK 2015 2016 Change 2015 2016 Change Sales 17,082 17,894 +5% 32,334 33,785 +4% Whereof Organic growth 656 650 +4% 1,336 1,099 +4% Acquired growth 453 593 +4% 829 1,083 +3% FX-differences 2,008 -431 -3% 3,900 -730 -3% Operating income (EBIT) 2,742 2,910 +6% 5,071 5,321 +5% EBIT-margin (%) 16.1 16.3 15.7 15.7 Operating cash flow 1,991 2,519 +27% 2,511 3,017 +20% EPS (SEK) 1.70 1.82 +7% 3.15 3.30 +5% 2nd Quarter Six months 26
  22. 22. Bridge Analysis – Apr-Jun 2016 MSEK 2015 Apr-Jun Organic Currency Acq/Div 2016 Apr-Jun 4% -3% 4% 5% Sales 17,082 650 -431 593 17,894 EBIT 2,742 195 -81 54 2,910 % 16.1% 29.9% 18.8% 9.1% 16.3% Dilution / Accretion 0.5% -0.1% -0.2% 27
  23. 23. P&L Components as % of sales Jan – Jun 2016 Direct material 36.3% 35.6% 35.3% Conversion costs 24.8% 24.9% 25.3% Gross Margin 38.9% 39.5% 39.4% S, G & A 23.2% 23.5% 23.7% EBIT 15.7% 16.0% 15.7% 2016 YTD excl acquisitions 2015 YTD 2016 YTD 28
  24. 24. Operating cash flow, MSEK 4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 8 500 9 000 9 500 10 000 10 500 11 000 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 2009 2010 2011 2012 2013 2014 2015 2016 12-monthsQuarter Quarter Cash Rolling 12-months EBT Rolling 12 months 29
  25. 25. 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 64 (70) Net debt/EBITDA 2.1 (2.3) 30 *) 2009-2011 Not restated for changed pension accounting principles.
  26. 26. Earnings per share, SEK 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 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 31 Restated for Stock split 3:1 2015. Q2 EPS +7%
  27. 27. ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q2 Report 2016 Johan Molin President and CEO
  28. 28. Conclusions Q2 2016  Good growth by 5% with 4% organic and 4% acquired  Strong growth in mature markets  Chosen by Forbes as 100 most innovative company  Good EBIT development +6%  Strong cash flow +27% 33
  29. 29. ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience Q&A

×