ASSA ABLOY Corporate presentation 2015

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

© ASSA ABLOY. All rights reserved

ASSA ABLOY Group

Corporate presentation 2015


The global leader in door opening solutions

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Own operations

+70 countries

Employees

44,000

Sales SEK

57 billion


Share of Group sales 2014 Emerging markets 25% of sales

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Local currencies. Emerging markets comprise Africa, Asia, the Middle East, South America and Eastern Europe.

NORTH AMERICA AND CENTRAL AMERICA

26% 36%

WESTERN AND EASTERN EUROPE

6% 41%

ASIA AND MIDDLE EAST

3% 16%

SOUTH AMERICA

21% 2%

AFRICA

17% 1%

AUSTRALIA AND NEW ZEALAND

7% 4%

Change relative to last year


ASSA ABLOY’s historical timeline

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Our vision

To be the world-leader, most successful and innovative provider of total door opening solutions

To lead in innovation and offer well-designed, safe, secure and convenient solutions that create added value to our customers

To offer an attractive company to our employees

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Our growth drivers

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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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Market presence

Product leadership

Cost- efficiency

Growth and profitability 10% Annual growth

16-17% Operating

margin

TARGET

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


Solid market position

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The leading brands Large installed base

A strong sales channel position Local standards adds to stability


Our business is total door opening solutions seamlessly connected to the building

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Our solutions meet customer needs

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Large customers

Institutional and commercial customers such as airports, hospitals, schools, shopping malls, universities and industry

Residential and Consumers

The majority of consumer sales are replacements or upgrades of existing security products

Small and midsize customer

Characterized by each customer’s need for professional advice and installation


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

Our brand strategy

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http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=liQ6dGDbtIh5AM&tbnid=fXYJcHgumsWX7M:&ved=0CAgQjRwwAA&url=http://www.gokeyless.com/product/1012/87/sargent-10-line-10g05-entrance-lock&ei=2QQJUdunIMbRhAeyjYGYBQ&psig=AFQjCNE_ITYpg0Z0XB0gLo-6TUFryQ5AuA&ust=1359631961565641


The Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs.

Product leadership

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Product leadership through innovation

Innovation Our driver for growth

R&D Investments + 100 percent since 2005. More than 1 400 engineers today Long term competitive advantage Continuous improvement of products:

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Benefits Costs Quality


Increased share of fast growing products Electromechanical

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2004 2014

26

SEK bn

57 SEK bn

53%

20%

27%

30%

20%

50%

Mechanical locks & accessories

Electro- mechanical

Security doors

Security doors

Mechanical locks & accessories

Electro- mechanical


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Some ASSA ABLOY products


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Some ASSA ABLOY products


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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Efforts to radically reduce break-even costs

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Manufacturing footprint program

Professional sourcing

Lean operations

Value Analyzes and Value Engineering (VA/VE)

Seamless Flow


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

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ASSA ABLOY divisions 2014

Mech & elmech locks, cylinders &

security doors

Electronic access and identity

Entrance automation

Americas 21%

EMEA 25%

Asia Pacific 14%

Global Technologies (HID and Hospitality)

ASSA ABLOY Entrance Systems

Product offering

Organization % of

Group Sales

60%

13%

27%


EMEA division 2014

Geographically adopted products for Europe, Middle East and Africa

In 2014, EMEA grew by 3 percent organically and sales totaled SEK 14,753 M

The division has 10,678 employees

Leading brands: ASSA ABLOY, Yale, ABLOY and Mul-T-Lock

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Share of Group 25%

Sales

25%

EBIT


Americas division 2014

Geographically adopted products for North and South America

In 2014, Americas grew by 4 percent organically and sales totaled SEK 12,156 M



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Share of Group 21%

Sales

27%

EBIT


Asia Pacific division 2014

Geographically adopted products for Asia, Australia and New Zealand

In 2014, Asia Pacific grew by 1 percent organically and sales totaled SEK 8,336 M



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Share of Group 14%

Sales

13%

EBIT


Global Technologies division 2014

Operates worldwide with focus on access control, identification assurance and hotel security

Products marketed globally

In 2014, Global Technologies grew by 1 percent organically and sales totaled SEK 7,207 M


Leading brands: HID and ASSA ABLOY

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Share of Group 13%

Sales

14%

EBIT


Entrance Systems division 2014

Supplies complete solutions for entrance automation

Products marketed globally

In 2014, Entrance Systems grew by 4 percent organically and sales totaled SEK 15,409 M


Leading brands: ASSA ABLOY, Entrematic and FlexiForce

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Share of Group 27%

Sales

21%

EBIT


Financial overview 2014

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Operating cash flow, SEK

8,238 M

+21%

Earnings per share*, SEK

17.38

+17%

EBIT*, SEK

9,257 M

+17%

Sales, SEK

56,843 M

+17%

* Excluding restructuring costs 2013.


Sales

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0

10 000

20 000

30 000

40 000

50 000

60 000

1994 2014 2004 1999 2009

M SEK


3 000

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5 000

6 000

7 000

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10 000

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Operating income* (EBIT)

*Excluding restructuring costs 2006, 2008, 2009 and 2011.

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Rolling 12 months

Run rate 9.3 Bn SEK (7.9), +17%

2014 2004 2009

M SEK


Sales split Group overview

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Residential

End users

25%

75%

Commercial and institutional

New construction

Recurring business

33%

67%

After market


We are a true world leader

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A clear and well adopted

market strategy

World leadership

in innovation

An efficient customer oriented

organization

Operating in a growing market driven by improved wealth, urbanization and a strong trend towards increased safety and security


www.assaabloy.com

ASSA ABLOY Corporate presentation 2015

Economy & Finance

Transcript of ASSA ABLOY Corporate presentation 2015