assa abloy's facts & figures - 2014 corporate presentation part 1
TRANSCRIPT
ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
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ASSA ABLOY in brief 2013
Own operations in more than 70 countries
Authorized distribution covering the world
About 43,000 employees
Sales of over SEK 48 billion
3 000
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9 000
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Quarter Rolling 12 months
Operating income* (EBIT) Quarter, SEK M 12 months, SEK M
*Excluding restructuring costs 2006, 2008, 2009, 2011 and 2013.
Run rate 7,923 MSEK (7,501), +6%
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We have built a world leader
A clear and well adopted strategy
Trend towards higher security
Acquisitions successfully integrated
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Our vision
To be the world-leader, most successful and innovative provider of door opening solutions
To lead in innovation and offer well-designed, convenient, safe and secure solutions that create added value to our customers
To be an attractive company to work for
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Market presence
Product leadership
Cost- efficiency
Growth and profitability
ASSA ABLOY Strategy
+ + =
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A world-leading market presence is achieved by exploiting the strength of the brand portfolio, increasing growth in the core business and expanding into new markets and segments.
Market presence
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Solid market position
The leading brands
Large installed base
A strong sales channel position
Local standards adds to stability
Our solutions meet customer needs
Large customers Institutional and commercial customers such as airports, hospitals, schools, shopping malls universities and industry
Small and midsize customer Characterized by each customer’s need for professional advice and installation
Residential and Consumers The majority of consumer sales are replacements or upgrades of existing security products
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Our brand strategy
ASSA ABLOY as master brand United sales force and progressive implementation on products
Product brands capitalizing on installed base
Four Global brands where market position is unique
Product brands, non endorsed - Not associated with the ASSA ABLOY brand
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+ The Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs.
Product leadership
Product leadership through innovation We are convinced that innovation is the most important driver for
growth
Investments in R&D has more than doubled since 2005 and we have around 1 350 engineers
We assure long term competitive advantage by continuously improving our products in terms of benefits, costs and quality
Increased share of fast growing products – electromechanics
2000 14 sek bn
2013 48 sek bn
42%
36%
22%
Mechanical locks &
accessories
66%
Electromechanical
20%
Security doors
14%
Electromechanical
49%
Mechanical locks &
accessories
33%
Security doors
18%
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+ Efforts to increase cost-efficiency continue in all areas, including common product platforms with fewer components and common product development.
Cost efficiency
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= ASSA ABLOY creates opportunities for increased growth and profitability through a strong focus on the strategy’s three areas of market presence, product leadership and cost-efficiency.
Growth and profitability
Our growth drivers The new “electronic world”:
– electromechanical and digital locking
– access control and secure identity & issuance
– automatic doors
Geographical and emerging market expansion
Increased need for security
Higher expectations
Acquisitions
Branding
Innovation – new solutions
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ASSA ABLOY divisions 2013
Mech & elmech locks, cylinders &
security doors
Electronic access & identity
Entrance automation
Americas 21%
EMEA 27%
Asia Pacific 14%
Global Technologies (HID & Hospitality)
ASSA ABLOY Entrance Systems
Product Offering Organization
% of Group Sales
62%
13%
25%
EMEA division 2013
Europe, Middle East and Africa
In 2013, EMEA grew by -2 percent and sales totaled SEK 13,165 M
The division has 10,089 employees
Some of the leading brands are ABLOY, ASSA, TESA, Yale and Vachette
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Sales Operating income (EBIT)
30 31
Share of Group
27% 26%
Americas division 2013
30 26
21%
Sales
Share of Group
21% 26%
North and South America
In 2013, Americas grew by 5 percent and sales totalled SEK 10,121 M
The division has 6,726 employees
Some of the leading brands are Corbin Russwin, Curries, Emtek, Medeco, Phillips, SARGENT, Ceco, Yale and La Fonte
Operating income (EBIT)
Asia Pacific division 2013
14% 13%
Sales Operating income (EBIT)
Share of Group
14% 13%
Asia, Australia and New Zealand
In 2013, Asia Pacific grew by 3 percent and sales totalled SEK 7,420 M
The division has 14,243 employees
Some of the leading brands in Asia are, Baodean, Guli, King, iRevo,Pan Pan, Shenfei, Tianming and Yale. In Australia and New Zealand Lockwood and Interlock
Global Technologies division 2013
13% 14%
Sales Operating income (EBIT)
Share of Group
Operates worldwide with focus on access control, secure issuance of cards, RFID identification technology and hotel security
In 2013, Global Technologies grew by 3 percent and sales totalled SEK 6,472 M
The division has 3,136 employees
Leading brands are HID, Fargo, Elsafe and VingCard 13% 14%
Share of Group
Sales
Entrance Systems division 2013
25% 21%
25% 21%
Operating income (EBIT)
Supplies complete solutions for automatic doors and after-sales services
In 2013, Entrance Systems grew by 11 percent and sales totalled SEK 12,237 M
The division has 8,191 employees
Leading brands are Besam, Crawford, Megadoor, Albany, Flexiforce, Kelley, Serco, Normstahl, Ditec, EM and Amarr
Financial overview 2013 Sales increased to
SEK 48,481 M (4%)
Operating income (EBIT*) SEK 7,923 M (5%)
Earnings per share* SEK 14.84 (6%)
Operating cash flow SEK 6,803 M (7,044)
*Excluding restructuring costs 2006, 2008, 2009, 2011 and 2013.
Earnings per share
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1,00
2,00
3,00
4,00
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6,00
7,00
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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
*Excluding restructuring costs 2006, 2008, 2009, 2011 and 2013.
Sales split Group overview
End users Recurring business Product mix
Commercial and institutional
75%
Residential
25% Mechanical products
33%
Electromechanical products
24%
Entrance automation
25%
Security doors
18% New
construction
33%
After market
67%
Share of Group sales by region 2013
NORTH AMERICA AND CENTRAL AMERICA
32% 44% 17% +19% -1% +14%
WESTERN AND EASTERN EUROPE
ASIA AND MIDDLE EAST
SOUTH AMERICA AFRICA AUSTRALIA AND NEW ZEALAND
2% +13%
1% +14%
4% +4%
Share of Group sales in local currency 2013, %
Change relative to the previous year, %
Emerging markets comprise Africa, Asia, the Middle East, South America and eastern Europe.
People make it all happen Our basic convictions and beliefs We have discipline and a focused
approach We reward result and performance We give access to information We learn from our mistakes We never hide We practice business ethics We promote diversity We grow people through a clear task
and the authority to act We continuously recruit competent and
well educated people We give priority to internal recruitment We are each in charge of our own
professional career