abby assa financial info background

8/2/2019 Abby Assa Financial Info Background

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Financial Information of

ASSA ABLOY AB

(Swenden)


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CONTENTS:

A. CORPORATE AND GENERAL INFORMATION

1.1 Background information

1.2 Product Brand1.3 About Vingcard Elsafe

1.4 Shareholding information

1.5 Key Executives

B. FINANCIAL ANALYSIS

2.1 Income Statement

2.2 Key Ratio

C. MARKET SHARE & PERFORMANCE

3.1 Share price performance

3.2 Share price information

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ASSA ABLOY AB

EXECUTIVE SUMMARY:

Financial Highlights (in SEK Million) 2007 2008 2009 20102011 (Q3

Annualised)Revenue 33,550 34,829 34,963 36,823 40,056Increase/ (Decrease) % 4% 0.4% 5% 9%

Net Profit 3,368 2,438 2,659 4,080 5,001Increase/ (Decrease) % -28% 9% 53% 23%

Dividend 3.60 3.60 3.60 4.00 N/AIncrease/ (Decrease) % - - 11% N/A

Earning/ (loss) per share (cents) 1.84 1.58 -4.35 -1.44 -0.63Increase/ (Decrease) % -14% -375% -67% -56%

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0

10000

20000

30000

40000

50000

2007 2008 2009 2010 2011

Revenue

Net Profit

-Constant growth from year to year even under adverse economy condition. Solid financial based backed

by healthy balance sheet.

Recent financial data

- Sales for the first nine months of 2011 totaled SEK 30,042 M (2010: SEK27,175 M), representing anincrease of 11%. [Organic growth was 4%. Acquired units contributed 16% .]The Group's operating

income, EBIT, amounted to SEK 4,743 M (2010: SEK4,440 M), an increase of 7%.

-Significant increase in net profit resulted from current restructuring programs carried out. According to

plan, a reduction in personnel of 181 people during the quarter and 5,753 people since the projects

began. A further 639 people will leave by the end of 2012. The operating margin was affected positively

by the volume growth and the efficiency and restructuring programs

-A total of 13 acquisitions were completed during the year, including Pan Pan (China), King Door

Closers, South Korea, ActivIdentity (USA) and Paddock (UK) in year 2011. Acquisition activities continued

at a high pace through the acquisitions of the American company Albany Door Systems and the Korean

company Angel Metal. The acquisition of Albany Door Systems, which brings to the Group a world-leading

company within high-speed industrial doors. It is also gratifying that their leading position in Korea is

further strengthened by Angel Metal. In the year so far the Group has added an impressive sales of SEK

7,800 M (RM3,627 million), representing 21% growth, through acquisitions.

-Sales for the quarter in Global Technologies division totaled SEK 1,524 million ~ RM716 million (SEK

1,365 ~ RM642million), with organic growth amounting to 5%. Hospitality reported a positive trend on

the renovation market with good growth for RFID locks and energy-efficiency products. Acquired growth

amounted to 14%. The divisions operating income amounted to SEK 248 million ~RM116million

(SEK247million~ RM116million), giving an operating margin (EBIT) of 16.3% (18.1%).


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ASSA ABLOY AB

A. CORPORATE AND GENERAL INFORMATION

1.1 BACKGROUND INFORMATION

The Assa Abloy Group is a Swedish lock manufacturer, engaged in the development, manufacture

and marketing of secure door opening solutions,the world's largest by sales.

Assa Abloy was formed in 1994 when ASSA AB was detached from Swedish security firm SecuritasAB. Shortly thereafter the Finnish high-security lock manufacturer Abloy Oy (a subsidiary of the

Finnish company Wrtsil) was acquired. The company was introduced to the Stockholm stock

exchange later the same year. Assa Abloy now owns Yale lock, Sargent and the high-security lock

firms of Medeco in the U.S., Mul-T-Lock in Israel, Fichet-Bauche in France, and VingCard Elsafe

International in Norway.

The Companys operations are divided into five divisions as follows:

(i) EMEA division manufactures and sells mechanical, electromechanical and electronic

locks, cylinders, security doors and fittings in Europe, the Middle East and Africa. Some ofthe divisions leading brands are ABLOY, ASSA, IKON, Mul-T-Lock, TESA, UNION, Yale and

Vachette.

(ii) Americas division manufactures and sells mechanical and electromechanical

locks, cylinders, security doors and door frames in North and South America. Sales in

South America and Mexico take place mainly through distributors, wholesalers and DIY

stores. Some of the divisions leading brands are Ceco, Corbin

Russwin, Curries, Emtek, Medeco, Phillips, SARGENT and La Fonte.

(iii) Asia Pacific division manufactures and sells mechanical and electromechanical l

ocks, digital door locks, high-security doors and fittings. China and the rest of Asia

account for around 70 percent of sales, while Australia and New Zealand account for theremaining 30 percent of the divisions sales. In Asia, the divisions largest brands are

Baodean, Gateman, Guli, King, Pan Pan, Shenfei, Tianming, Wangli and Yale. In Australia

and New Zealand, the largest brands are Lockwood

and Interlock.

(iv) The Global Technologies division is engaged in the supply of electronics security solutions

worldwide. It provides secure identity solutions, contactless identification technology

solutions, electronic lock systems and safes for hotels and cruise ships, mainly to the

commercial segment.

(v) The Entrance Systems division provides automatic entrance solutions, ranging from

automatic swing doors, sliding doors, revolving doors and air curtains to relatedservices, under the Besam brand and, ranging from door, gate and garage door

automation to industrial doors, under the Ditec brand.

Headquarter : Stockholm, Sweden

Independent Auditor : PricewaterhouseCoopers AB

Total Employees : 40,487

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http://en.wikipedia.org/w/index.php?title=VingCard_Elsafe&action=edit&redlink=1


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ASSA ABLOY AB

1.2 Product Brand

5

EMEA, 35%

Americas, 25%

Asia Pacific, 16%

Global

Technologies, 13

%

Entrance

System, 11%

Revenue FY2010 by business operation


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ASSA ABLOY AB

1.3.1 VingCard Elsafe:

VingCard Elsafe is a complete selection of products suited to any facility and a global partner in

total security solutions. Their product line consists of:

(i) Electronic Locks

(ii) Elsafes electronic in-room safe

It raises the security level in a hotel and increases guests peace of mind. Consists of following

features:

- UL Listed in-room safe

- Reliable electronics ready for future software upgrades

- Specially designed latch teen engages both the door and frame preventing attempt to force the

door open

- Anti-tamper labyrinths to protect safes electronics from manipulation

- One piece cold pressed door is over 70% stronger than sheet steel

- Extended solid steel bolt hinges to prevent the door from being forced out of the door frame

- Audit trail

(iii) Energy Management System:

Orion by VingCard Elsafe detects guest presence in the room and allows you to control and manage

your A/C cost while rooms are unoccupied, monitoring and maintaining the same temperature

comfort level when they return to their rooms. It dramatically helps you improve your

environmental and green initiatives and contributes to reducing global warming

(iv) Mini bars:

PolarBar minibars supplement any hotel room with a modern styled minibar. PB minibars claimed

to have large stacking capacity and flexible shelf solution for easy cleaning; it is guaranteed to keep

your guests and staff satisfied.

(v) Accessories:

includes bathroom locks, door retainers, door viewers, exit devices, elevator controllers, keycards

and carriers.

1.3.2 VingCard Elsafe Distributors in Malaysia

(i) Guestserv (M) Sdn. Bhd, Kuala Lumpur (Phone: +60 3 2145 2798)

E-mail: [email protected]

(ii) Security Marketing Sdn Bhd, Kuala Lumpur. (Phone: +6 03 4107 1226)

E-mail: [email protected]

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mailto:[email protected]:[email protected]:[email protected]:[email protected]


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ASSA ABLOY AB

1.4 SHAREHOLDING INFORMATION:

(i) Share information:

Number of shares issued as of December 31, 2011 : 9,175,323 Series A shares

: 347,001,871 Series B shares

Total paid up capital : SEK 366,177,194 (RM170,272,395)

All shares have a par value of SEK 1.00 and provide the holders with equal rights to the companys

assets and earnings. Each Series A share carries ten votes and each Series B share one vote.

(ii) Top 10 shareholdings list

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1.5 KEY EXECUTIVE

(i) Key Board of Directors:

Chairman : Gustaf Douglas (1938)

[Shareholdings : 13,865,243 Series A shares and 21,300,000 Series B shares]

Board Member : Carl Douglas (1962)

Board Member : Johan Molin (1959)

[Shareholdings : 516,282 Series B shares as well as Incentive 2007

convertibles corresponding, on full conversion, to 215,300 Series B shares.]

Board Member : Sven-Christer Nilsson(1944)

[Shareholdings :5,000 Series B shares.]

Board Member : Lars Renstrm(1951)

[Shareholdings : 10,000 Series B shares.]

Board Member : Birgitta Klasn (1949)

[Shareholdings : 7,000 Series B shares.]

(ii) Key Management

President and CEO and Head of Global Technologies division: Johan Molin (1959)

Executive Vice President and Chief Financial Officer (CFO): Tomas Eliasson (1962)

Executive Vice President and Head of Global Technologies : Denis Hbert (1956)

Executive Vice President and Head of Americas division: Thanasis Molokotos (1958)

Executive Vice President and Head of Asia Pacific division: Jonas Persson (1969)

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ASSA ABLOY AB

2.1 INCOME STATEMENT

Analysis:

Comment:

A total of 13 acquisitions were completed during the year, including Pan Pan (China), King Door

Closers, South Korea, ActivIdentity (USA) and Paddock (UK). These acquisitions increase annual

sales by SEK 2,880 million (RM1,339 million). An agreement was signed to acquire a majority

shareholding in Cardo, a leading Swedish industrial door company had caused the increase in sales

number.

Sales for EMEA, Asia Pacific divisions and global technologies had increased by 2%, 14% and 10%

respectively offset by the decrease in America (2%) and Entrance Systems divisions (2%). Growth in

China was very strong, particularly for security doors. South Korea, Australia and New Zealand also

performed well during the year. ASSA ABLOY Hospitality (include of VingCard Elsafe) returned to

positive growth in the second half of the year. Increased volume and continued efficiency programs

increased profitability throughout the division.

Cost adjustments in the form of staff redundancies and the relocation of components and basic

products to low-cost countries continued at a high rate during the year. A third restructuring

program was launched in end of year 2009 continue drive the cost of sales drive and resulted

increase in gross profit margin.

Other financial expenses remain constant with low fluctuation.

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2.5 KEY RATIO

Findings:

(i) Current Ratio: Improvement in FY2010, no cash flow issues and high liquidity.

(ii) Return of capital employed: This increase is mainly due to the effects of completed acquisitions.

During the year, goodwill and other intangible assets with an indefinite useful life have arisen to apreliminary value of SEK 3,818 million (RM1,775million). Besides, the average collection period for

accounts receivables was 51 days (2009: 55days). Material throughput time was 103 days (2009:

97days). The Group is making systematic efforts to increase capital efficiency.

(ii) Gross profit margin: Increased by 2% resulted from cost adjustments in the form of staff

redundancies and the relocation of components and basic products to low-cost countries continued

at a high rate during the year. Also, a third restructuring program was launched in end of year 2009

continue drive the cost down and subsequently increase in margin.

(vi) Net profit margin: Increased by 4% in FY2010 mainly due to increase in gross profit and decreased

in finance cost. Borrowings had been decreased over the period.

(vii) Leverage: Lower leverage as compared with prior year. The decrease was mainly due to net

reduction in debt resulted from continued good earnings trend and a release of working capital.

Cash and cash equivalent amounted SEK2,235 million (RM1,048million)

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ASSA ABLOY AB

3.1 SHARES PRICE PERFORMANCE

Share performance for the past 12 months

52 weeks higher: SEK200.30 (12.02.2011)

52 weeks lower: SEK128.60 (19.08.2011) Lowest price recorded in a year resulted from US and Europe debt crisis issues impacted the world

economy. Current shares price stand at SEK157.30 (RM73.14)

3.2 SHARES INFORMATION

(i) Market Capitalization (Current Market Value of the Group) :

Number of shares outstanding x latest share price in trade

= 349.08 million x SEK157.30

= SEK 54,910million (RM25,533million)

(ii) Average Trade volume for 10 days: 1.2 milllion

(iii)

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2007 2008 2009 2010 2011 (Q3)

SEK SEK SEK SEK SEK

Earning/ (loss) per share (cents) 9.02 9.21 9.22 10.89 11.81Increase/ (Decrease) % 2% 0.1% 18% 8%

Dividend 3.60 3.60 3.60 4.00 N/AIncrease/ (Decrease) % 0% 0% 11% N/A


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ASSA ABLOY AB

(iv) Net Asset per shares : Increased to SEK 67.34 in Quarter 3 of FY2011 from SEK59.04 in

FY2010.

Based on recent unaudited financial data as of September 30, 2011

Net Tangible Asset : SEK 23,508 million

Market Capitalisation : SEK 54,910 million

Share overpriced by market : SEK 31,402 million (RM14,602 million)

abby assa financial info background

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