q1 report 2012...q1 report 2012 johan molin president & ceo conclusions q1 2012 strong total...
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Q1 Report 2012 Johan Molin
President & CEO
Financial highlights Q1 2012
Steady growth with strong profit improvement – Continued strong growth in Global tech – Good development in Europe and North America – Slower emerging markets and declining Australia – Footprint program gives good savings
Sales 10,839 MSEK +25% +3% organic, +19% acquired growth, 3% currency
EBIT 1,655 MSEK +20% Currency effect 19 MSEK
EPS 3.10 SEK +23% Underlying tax rate 23%
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Market highlights Branding
– Group appearance on all trade shows – Demonstration fleet for architects – One company exposure on internet
Investment in Emerging markets – Build up in India, ME, Africa
and South America – Sales units created in Russia, Croatia,
Indonesia, Ghana, Uganda, Mozambique, Liberia, Qatar
Innovation pays off – More than 20% of all sales from
products less than 3 years old
Countries with high total GDP and highly populated cities
13 new ASSA ABLOY Solution centres
3 new legal entities
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Annual GDP growth, 2012-2016 (prognos), percent
Nigeria
6,2
Ghana
Uganda
Kenya
South Africa
Angola
Ethiopia
Tanzania
Ivory coast
Congo-Kinshasa
Mozambique Zambia
6,1
3,7
7,3
6,2
7,0
6,2
6,5
6,7
7,5 7,8
6,4
Emerging markets expansion Example; Africa
EMEA High impact Products
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EMEA new products
ASSA ABLOY Door Closers Code Handle DDL
CLIQ SMARTAIR Aperio
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Group sales in local currencies Jan-Mar 2012
2 +4
28 +7 51 +39
13 +17
5 +4
1 +5
Share of Group sales 2012 YTD, % Year-to-date vs previous year, %
80
85
90
95
100
105
110
2009 2010 2011 2012
Ind
ex 1
00
= 3
1/1
2 2
00
8Index 2009-2012
ASSA ABLOY, excl. Cardo
Organic growth index Recovery from recession
Group -2%
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*) Entrance systems division including new acquired companies -12%
Division Index
EMEA -7%
Americas -16%
Asia Pacific +31%
Global Tech +10%
ESD *) +3%
-18-16-14-12-10-8-6-4-202468101214161820
24 00026 00028 00030 00032 00034 00036 00038 00040 00042 00044 00046 000
2005 2006 2007 2008 2009 2010 2011 2012Organic Growth Acquired Growth Sales in Fixed Currencies
Sales growth, currency adjusted
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2012 Q1 +22% Organic +3% Acquired +19%
Sales MSEK Growth, %
Operating income (EBIT), MSEK
3 6003 8004 0004 2004 4004 6004 8005 0005 2005 4005 6005 8006 0006 2006 4006 6006 8007 000
700800900
1 0001 1001 2001 3001 4001 5001 6001 7001 8001 900
2005 2006 2007 2008 2009 2010 2011 2012
Quarter Rolling 12-months
Quarter 12-months
Run rate 6,902 MSEK (6,128), +13%
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*) Excluding restructuring costs.
12,0
13,0
14,0
15,0
16,0
17,0
2005 2006 2007 2008 2009 2010 2011 2012
Quarter Rolling 12-months Q2-Q4 2012 Dilution Group -0.2%
Operating margin (EBIT)*, %
Run rate 2012 15.7% (16.5)
Long term target range (average)
10
EBIT Margin
*) Excluding restructuring costs.
Manufacturing footprint Status manufacturing footprint programs 2006-2011:
– 45 factories closed to date, 23 to go – 50 factories converted to assembly, 25 to go – 25 offices closed, 4 to go
Personnel reduction QTD 346p and total 6,243p
1,292 in further planned reductions
1,569 MSEK of the provision remains for all programs
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Margin highlights Q1 2012
EBIT margin 15.3% (15.8), -0.5% + Volume increase 1.5%, price 1.5%
+ Margin expansion 0.5% + Manufacturing footprint & efficiency improvements + Positive mix with growth in mature markets - Dilution from acquisitions by -1.0%
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Acquisitions 2012
Fully active
6 acquisitions done so far in 2012
Annualized sales 2,200 MSEK, +5,3%
Major acquisitions Jan-Apr 2012: Albany, US Dynaco, BE Securistyle, UK Traka, UK Frameworks, USA
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Traka plc
Strong technology company
Intelligent key cabinets
Advanced locker systems
Fleet managment solutions
Sales of 140 MSEK, 40% export
Accretive to EPS from start
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Frameworks Manufacturing Inc
Entrance to interior aluminum door, frame and window wall market
Adds glaziers as additional distribution channel
Complementary to our door business with good margins
Total sales 110 MSEK
Accretive to EPS from start
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Division - EMEA
Market improved but hesitant
Growth in Scandinavia, Finland, Benelux, UK, Israel and Africa
France, Germany and Eastern Europe are stable
Southern Europe in continued decline
Good leverage from volume increase
Operating margin (EBIT) + Volume 4% = Material cost + Footprint savings - Dilution by 0.8%
SALES share of
Group total %
31
16
13 14 15 16 17 18 19
2007
2008
2009
2010
2011
2012
EBIT %
Division - Americas
Stable sales development
Good growth of high security, elmech and residential
Positive sales of mechanical locks and security doors
Negative sales in Canada, Mexico and Brazil
Improved margin from efficiency gains
Operating margin (EBIT)
+ Volume 3%
= Material cost
+ Efficiency improvement
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18
18
19
20
21
22
2007
2008
2009
2010
2011
2012
EBIT %
SALES share of
Group total %
Division - Asia Pacific
Strong growth in Korea and South East Asia including India
Weak growth in China
Decline in Australia and New Zeeland
Negative mix and Chinese cost pressure
Operating margin (EBIT) = Volume 3% = Raw material - Mix & cost pressure
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20
5 7 9
11 13 15 17
2007
2008
2009
2010
2011
2012
EBIT %
SALES share of
Group total %
Division - Global Technologies
HID – Good growth of Access control and secure issuance – Strong sales of Identification Technology – Large project orders dilutes
Hospitality – Good growth in all market regions – Several gains of important key accounts
Operating margin (EBIT) + Volume 8% (13) + Strong leverage from core business growth - Dilution from large project orders
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22
13 14 15 16 17 18 19
2007
2008
2009
2010
2011
2012
EBIT %
SALES share of
Group total %
Division - Entrance Systems Good growth of Besam, Crawford and FlexiForce
Service sales in steady growth
Ditec declining due to southern Europe
Albany and Dynaco consolidated in the quarter
Sales +130% and EBIT +94%
Operating margin (EBIT) + Volume 3% - Dilution from acquisitions -2.7% + Leverage from growth +0.3%
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24
12 13 14 15 16 17 18 19
2007
2008
2009
2010
2011
2012
EBIT %
SALES share of
Group total %
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Q1 Report 2012 Carolina Dybeck Happe
CFO
Financial highlights Q1 2012
MSEK 2011 2012 Change 2010 2011 Change
Sales 8,699 10,839 +25% 36,823 41,786 +13% Whereof Organic growth +3% +4% Acquired growth +19% +17% FX-differences +149 +3% -2,309 -8% Operating income (EBIT) *) 1,377 1,655 +20% 6,046 6,624 +10% EBIT-margin (%) 15.8 15.3 16.4 15.9 Operating cash flow 448 483 +8% 6,285 6,080 -3% EPS (SEK) **) 2.52 3.10 +23% 10.89 12.30 +13%
1st Quarter Twelve months
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*) Excluding restructuring items of 1,420 MSEK for Q4 and full year 2011 **) Excluding one-off items of 1,447 for Q4 and 1,016 MSEK for the full year 2011
Bridge Analysis – Jan-Mar 2012
MSEK 2011
Jan-Mar
Organic Currency Acq/Div 2012
Jan-Mar
3% 3% 19% 25%
Revenues 8,699 294 149 1,696 10,839
EBIT 1,377 92 19 167 1,655
% 15.8% 31.1% 12.9% 9.9% 15.3%
Dilution / Accretion 0.5% 0.0% -1.0%
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P&L – Components as % of sales
Direct material 32.9% 33.2% 32.7%
Conversion costs 26.2% 25.4% 27.6%
Gross Margin 40.9% 41.4% 39.7%
S, G & A 25.1% 25.1% 24.4%
EBIT 15.8% 16.3% 15.3%
2012 Q1 excluding acquisitions
2011 Q1
2012 Q1
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Operating cash flow, MSEK
3 000
3 500
4 000
4 500
5 000
5 500
6 000
6 500
7 000
7 500
0
500
1 000
1 500
2 000
2 500
3 000
2005 2006 2007 2008 2009 2010 2011 2012
Quarter Cash Rolling 12-months EBT Rolling 12 months
Growth
30
Recession
Growth
Quarter 12 months
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
2005 2006 2007 2008 2009 2010 2011 2012
Net debt Gearing
Debt/Equity 64 (103)
Net debt/EBITDA 2.0 (3.0)
31
Net Debt Gearing
32
Q1 Report 2012 Johan Molin
President & CEO
Conclusions Q1 2012
Strong total growth by 25% with 3% organic
Good development in mature markets – Many new products and projects wins
Slower emerging markets
Good evolution in acquired companies
Footprint program gives good savings
Strong profit improvement
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Q&A