Q4 Report 2017 · 2019-09-13 · Page 3 GUNNEBO Q4 REPORT 2017 Fourth Quarter 2017 in Brief 2017...
Transcript of Q4 Report 2017 · 2019-09-13 · Page 3 GUNNEBO Q4 REPORT 2017 Fourth Quarter 2017 in Brief 2017...
Q4 Report 20172 February 2018
Page 2 GUNNEBO Q4 REPORT 2017
▪ The implementation of our Profitable Growth Strategy continues
▪ Continued work with the strategic review in France
▪ Factory closure in South Africa completed
▪ Prioritisation of product areas to furtherstrengthen focus on customers and delivery
▪ Weak sales in the quarter
▪ Bank sales in India and South Africa
▪ Large Entrance Control order delivered in quarter four 2016 in Europe
▪ Strong order intake in Q4
▪ Full year EBIT: 6.2%
CEO’s Comments
Page 3 GUNNEBO Q4 REPORT 2017
Fourth Quarter 2017 in Brief
2017 2016 2017 2016
Q4 IN BRIEF Q4 Q4 YTD YTD
Net sales, MSEK 1,632 1,776 5,991 6,088
EBITDA excl. items affecting comparability (IAC), MSEK 163 203 486 561
EBITDA margin excl. items affecting comparability (IAC), % 10.0 11.4 8.1 9.2
EBITDA, MSEK 133 173 421 489
EBITDA margin, % 8.1 9.7 7.0 8.0
Operating profit (EBIT) excl. items affecting comparability (IAC), MSEK 134 172 369 438
Operating margin (EBIT) excl. items affecting comparability (IAC), % 8.2 9.7 6.2 7.2
Operating profit (EBIT), MSEK 104 142 304 366
Operating margin (EBIT), % 6.4 8.0 5.1 6.0
Net profit for the period, MSEK 76 96 160 209
Basic earnings per share, SEK 0.91 1.25 2.00 2.71
Free cash flow, MSEK 71 107 -74 159
Dividend per share (*proposed), SEK - - 1.20* 1.20
Page 4 GUNNEBO Q4 REPORT 2017
Net Sales, MSEK
Sales by Product Area, YTD
Page 5 GUNNEBO Q4 REPORT 2017
Organic Sales Growth by Quarter
Page 6 GUNNEBO Q4 REPORT 2017
Sales Growth by Quarter and YTD by Region
SALES VS LAST YEAR (QTD)
Organic Structure Currency Total
EMEA -6% 0% 0% -6%
APAC -9% 0% -4% -13%
AMERICAS -3% 0% -6% -9%
TOTAL -6% 0% -2% -8%
SALES VS LAST YEAR (YTD)
Organic Structure Currency Total
EMEA -3% 0% 1% -2%
APAC -4% 0% 1% -3%
AMERICAS 1% 0% 1% 2%
TOTAL -3% 0% 1% -2%
Page 7 GUNNEBO Q4 REPORT 2017
Organic Sales Growth Development by Region Q4 2017 vs Q4 2016
EMEA Asia-Pacific Americas
Sales: -3%Sales: -9% Sales: -6%
Group
Sales: -6%
Page 8 GUNNEBO Q4 REPORT 2017
Gunnebo’s Product Areas and % of Sales Full Year 2017
Cash Management
▪ Deposit & recycling
▪ Closed cash management
▪ Envelope & coin-roll systems
▪ Application & monitoring software
▪ Services
Entrance Security
▪ Entrance control
▪ Security doors & partitions
▪ Electronic article surveillance
▪ Services
Safes & Vaults
▪ Safes
▪ Vaults & vault doors
▪ Safe deposit lockers
▪ ATM safes
▪ Services
Electronic Security
▪ Access control
▪ Intrusion detection
▪ Electronic locking
▪ Remote monitoring
▪ Services
Other
▪ Fire safety products and services
▪ Other traded products and services
33%19% 23% 18% 7%
Page 9 GUNNEBO Q4 REPORT 2017
▪ Continued good sales development in the quarter
▪ Growth area – has continued to strengthen the offering and competence throughout the year
▪ Gunnebo’s cash management solutions will optimise cash processing at one of the first drive-in cinemas in Australia
▪ Renewed multi-year service contract signed with Nordic retail chain, COOP
Product Area Cash Management
Cash Management
▪ Deposit & recycling
▪ Closed cash management
▪ Envelope & coin-roll systems
▪ Application & monitoring software
▪ Services
Sales by RegionFY 2017
EMEA, 67%
APAC, 8%
Americas, 25%
19%of Group Sales
Page 10 GUNNEBO Q4 REPORT 2017
▪ Continued strong sales development in the quarter
▪ Delivery to high-risk site in Australia has started
▪ Breakthrough order to the metro sector in India
▪ Another growing customer segment is airport. During the quarter several orders for pre-boarding gates were received from customers including Munich Airport and Incheon Airport.
▪ In general, good development of sales to public and commercial buildings
Product Area Entrance Security
EntranceSecurity
▪ Entrance control
▪ Security doors & partitions
▪ Electronic article surveillance
▪ Services
* Entrance Control
EMEA, 61%
APAC, 22%
Americas, 17%
23%of Group Sales
Sales by RegionFY 2017
Page 11 GUNNEBO Q4 REPORT 2017
▪ Sales developed slowly in the quarter:
▪ Sales of graded safes and vaults decreased in the quarter mainly due to continued slow business with banks in several major markets
▪ Sales of safes to global manufacturers of ATMs down from a high level mainly due to lower volumes in India
▪ The interest for the automated safe deposit locker system, SafeStore Auto, has continued to be good during the quarter and several new orders were received
▪ First order from Pakistan
▪ Solution will be installed at high-end housing estate in Shanghai
Product Area Safes & Vaults
Safes & Vaults
▪ Safes
▪ Vaults & vault doors
▪ Safe deposit lockers
▪ ATM safes
▪ Services
EMEA, 62%
APAC, 23%
Americas, 15%
33%of Group Sales
Sales by RegionFY 2017
Page 12 GUNNEBO Q4 REPORT 2017
▪ Sales in the quarter were flat –important improvement compared to the drop earlier in the year
▪ Belgian hospital group, Chirec, equips its latest hospital with security solutions from Gunnebo, including electronic security, cash management and entrance security
Product Area Electronic Security
Electronic Security▪ Access control
▪ Intrusion detection
▪ Electronic locking
▪ Remote monitoring
▪ Services
18%of Group Sales
EMEA, 78%
APAC, 4%
Americas, 18%
Sales by RegionFY 2017
Page 13 GUNNEBO Q4 REPORT 2017
▪ OKI project completed
Other - Fire Projects
Other
▪ Fire safety products and services
▪ Other traded products and services
7%of Group Sales
Page 14 GUNNEBO Q4 REPORT 2017
Region Europe, Middle East & Africa (EMEA) Q4 2017
▪ Sales decreased organically by 6%
▪ Positive development of sales in UK, South Europe and France
▪ Strategic review in France continues
▪ Local production in South Africa closed
▪ Cash Management and Electronic Security showed good sales development in the quarter
▪ Entrance Security and Safes & Vaults had a weaker development
▪ Strong order intake
EMEA Sales by Product Area, YTD 2017
2017 2016 2017 2016
Q4 Q4 YTD YTD
Net sales, MSEK 1,058 1,131 3,831 3,907
Organic growth, % -6 2 -3 0
Operating profit excl. IAC, MSEK 54 76 116 172
Operating margin excl. IAC, % 5.1 6.7 3.0 4.4
Items affecting comparability (IAC), MSEK -22 -23 -47 -59
Operating profit, MSEK 32 53 69 113
REGION EMEA
0%
1%
2%
3%
4%
5%
6%
7%
0
200
400
600
800
1,000
1,200
1 2 3 4 1 2 3 4 1 2 3 4
2015 2016 2017
Operating margin %,excl. IAC
Operating margin % 12M,excl. IAC
Sales per quarter
Page 15 GUNNEBO Q4 REPORT 2017
Region Asia-Pacific Q4 2017
▪ Sales decreased organically by 9%
▪ Continued weak sales development in India – low spending from the public bank sector and lower sales of safes to global ATM manufacturers in the region
▪ Positive development of sales for other markets in the region
▪ Entrance Security and Electronic Security developed well
▪ Weaker development for fire projects (Other) – OKI project now complete
▪ Safes & Vaults had a weaker sales development
▪ Strong order intake
APAC Sales by Product Area, YTD 2017
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0
50
100
150
200
250
300
350
400
1 2 3 4 1 2 3 4 1 2 3 4
2015 2016 2017
Operating margin %,excl. IAC
Operating margin % 12M,excl. IAC
Sales per quarter
2017 2016 2017 2016
Q4 Q4 YTD YTD
Net sales, MSEK 305 351 1,091 1,129
Organic growth, % -9 3 -4 5
Operating profit excl. IAC, MSEK 42 55 130 138
Operating margin excl. IAC, % 13.8 15.7 11.9 12.2
Items affecting comparability (IAC), MSEK -6 -3 -12 -5
Operating profit, MSEK 36 52 118 133
REGION ASIA-PACIFIC
Page 16 GUNNEBO Q4 REPORT 2017
Region Americas Q4 2017
▪ Sales decreased organically by 3%
▪ Positive development of sales in Brazil, flat in Mexico
▪ Weak development of sales in North America, due to slow business to bank projects
▪ Safes & Vaults developed well particularly in the US where sales to public administration picked up
▪ Entrance Security developed stably
▪ Sales of Electronic Security developed well in Brazil, but continued to be weak on all other markets
▪ Cash Management sales decreased due to delays in investments in bank projects
▪ Order intake was flat
Americas Sales by Product Area, YTD 2017
2017 2016 2017 2016
Q4 Q4 YTD YTD
Net sales, MSEK 269 294 1,069 1,052
Organic growth, % -3 4 1 -2
Operating profit excl. IAC, MSEK 38 41 123 128
Operating margin excl. IAC, % 14.1 13.9 11.5 12.2
Items affecting comparability (IAC), MSEK -2 -4 -6 -8
Operating profit, MSEK 36 37 117 120
REGION AMERICAS
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
50
100
150
200
250
300
350
1 2 3 4 1 2 3 4 1 2 3 4
2015 2016 2017
Operating margin %, excl. IAC
Operating margin % 12M, excl. IAC
Sales per quarter
0
Page 17 GUNNEBO Q4 REPORT 2017
Operating Profit by Quarter, MSEK
Operating profit Operating profit, excl. IAC
Full yearOperating profit
excl. IAC
2017: 369 2016: 438 2015: 397
Operating profit
2017: 3042016: 3662015: 320
Page 18 GUNNEBO Q4 REPORT 2017
Operating Profit and EBITDA by Quarter, excl. Items Affecting Comparability
Operating Profit EBITDA
Page 19 GUNNEBO Q4 REPORT 2017
Operating Profit Bridge by Quarter and YTD
OPERATING PROFIT BRIDGE Q4
Operating profit 2016 142
Organic -26
Structure 9
Currency 0
Other -21
Operating profit 2017 104
OPERATING PROFIT BRIDGE YTD
Operating profit 2016 366
Organic -39
Structure 54
Currency 17
Other -94
Operating profit 2017 304
Page 20 GUNNEBO Q4 REPORT 2017
Operating Margin by Quarter, %
Operating margin %, quarter Operating margin % quarter, excl. IAC
Operating margin %, LTM Operating margin % LTM, excl. IAC
Full yearOperating margin,
excl. IAC
2017: 6.22016: 7.22015: 6.6
Operating margin
2017: 5.12016: 6.02015: 5.3
Page 21 GUNNEBO Q4 REPORT 2017
Group Income Statement
CONDENSED CONSOLIDATED INCOME STATEMENTS
2017 2016 2017 2016
MSEK Q4 Q4 YTD YTD
Net sales 1,632 1,776 5,991 6,088
Cost of goods sold -1,185 -1,257 -4,306 -4,319
Gross profit 447 519 1,685 1,769
Selling and administrative expenses -351 -379 -1,395 -1,417
Other operating income and expenses, net 8 2 14 14
Operating profit 104 142 304 366
Financial income and expenses, net -14 -13 -57 -53
Profit before taxes 90 129 247 313
Income tax -14 -33 -87 -104
Net profit for the period 76 96 160 209
Net profit attributable to:
Shareholders of the Parent Company 70 95 153 206
Non-controlling interests 6 1 7 3
Net profit for the period 76 96 160 209
Basic earnings per share, SEK 0.91 1.25 2.00 2.71
Diluted earnings per share, SEK 0.91 1.24 2.00 2.70
Page 22 GUNNEBO Q4 REPORT 2017
Free Cash Flow by Quarter and Last Twelve Months
Free cash flow 12M
Page 23 GUNNEBO Q4 REPORT 2017
Free Cash Flow
FREE CASH FLOW
MSEK2017
Q4
2016
Q4
2017
YTD
2016
YTD
Operating profit 104 142 304 366
Depreciation 16 17 66 68
Amortisation- acquisition-related
intangibles4 6 22 24
Amortisation - other intangibles 9 8 29 31
Other -23 -43 -150 -133
Change in working capital 13 7 -200 -122
Operating cash flow 123 137 71 234
Investing cash flow excluding acquisitions -52 -30 -145 -75
Free cash flow 71 107 -74 159
Page 24 GUNNEBO Q4 REPORT 2017
Net Debt
NET DEBT INCL. & EXCL. PENSION + NET LEVERAGE
Net debt Net leverage
Pension liability Net leverage excl.
pension liability
Page 25 GUNNEBO Q4 REPORT 2017
Group Financial Targets & Outcome
FINANCIAL TARGETS & OUTCOME Target
2017 2016 2017 2016
Q4 Q4 YTD YTD
Organic growth -6% 3% -3% 1% 5%
Operating margin1)
8.2% 9.7% 6.2% 7.2% 7.0%
Return on capital employed1) 2)
10.3% 12.8% 10.3% 12.8% 15.0%
Equity ratio 33% 34% 33% 34% 30%
1) Excluding items affecting comparability (IAC)
2) During the last twelve-month period
5%Organic growth
7%Operating margin
15%Return on capital
employed
30%Equity ratio
Page 26 GUNNEBO Q4 REPORT 2017
Final Remarks
▪ 2017 was an unsatisfactory year in terms of
growth and profitability
▪ Structural measures continue to drive
productivity
▪ Strong agenda in place to support growth
Page 27 GUNNEBO Q4 REPORT 2017
Financial Calendar 2018
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