q1 report 2006 johan molin, president and ceo€¦ · microsoft powerpoint - q106...
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![Page 1: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM](https://reader034.vdocument.in/reader034/viewer/2022052015/602cd172647fab6aa078450a/html5/thumbnails/1.jpg)
Q1 report 2006Johan Molin, President and CEO
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Financial highlights Q1
Sales SEK 7 653 M +22%+12% organic growth
+4% from extra working days
Operating income SEK 1 110 M +25%Restructuring costs SEK 40 M
Operating cash flow SEK 587 M +7%
EPS SEK 1.88 +26%
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Sales distribution in local currencies
2 +27
Portion of Group sales 2005 %Year-to-date vs previous year %
38 +1350 +12
4 +30
5 +5
1 +18
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Organic growth %
-4
-2
0
2
4
6
8
10
12
14
2002
2003
2004
2005
2006
Quarter Rolling 12-months Target
Target 5%
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Acquired growth %
0
5
10
15
20
25
30
35
2002
2003
2004
2005
2006
Quarter Rolling 12-months
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Division - EMEA
Continued strong sales especially in Nordic and Eastern EuropeSales trend improved in most marketsWorking day impact 6%Operating margin (EBIT) + higher volume - new restructuring costs and a lost legal case
SALESshare of
Group total %
EBITshare of
Group total %
41
40
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Division - Americas
All parts of the business showed strong growthSpecification activity progress wellMexico is back on healthy growthOperating margin (EBIT) develops wellAcquisition of Adams Rite completed
SALESshare of
Group total %
EBITshare of
Group total %
33
40
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Division - Asia Pacific
Continued good growth in ASIA Flat demand in AU/NZ residential markets Material cost increases pressure the margin Price increase implemented
SALESshare of
Group total %
EBITshare of
Group total %
6
3
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Division - Global Technologies
Continued good growthImproved Operating margin (EBIT)ASSA ABLOY HID– new products and geographic expansion
ASSA ABLOY Identification Technology– strong growth in RFID-sales
ASSA ABLOY Hospitality– slower sales growth
SALESshare of
Group total %
EBITshare of
Group total %
12
11
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New Division - Entrance Systems
Margins from 10% to 14% since 2002Develop service, 40% of salesComplement with acquisitionsStrong demand in all major marketsOperating margin (EBIT) diluted by acquisitions
SALESshare of
Group total %
EBITshare of
Group total %
8
6
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Manufacturing – revised 3 year plan
From manufacturing to assembly50 restructuring projectsConsolidation and OutsourcingMajority relate to EMEA Estimated restructuring cost SEK 1 250 M Savings estimated to SEK 600 M at full effect
UK car-locks production under review
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Manufacturing – profile of revised plan %
2006 2007 2008
CostsPaymentsSavings
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Recent acquisitions
Baron, Canada (Americas)– Sales CAD 30 M and EBIT > 10%– Canadian market leader in middle range steel doors – Immediately EPS-accretive
Perth Door Services, Australia (Entrance Systems)– Sales AUD 12.6 M and EBIT > 5%– Service company with 80 employees– Immediately EPS-accretive
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Q1 report 2006Göran Jansson, Deputy CEO and CFO
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Financial highlights Q1 and FY 2005
SEK M 2006 2005 Change 2005 2004 Change1st Quarter Full year
Sales 7,653 6,269 +22% 27,802 25,526 +9%Whereof Organic growth +12% +5%Acquisitions +2% +1%FX-differences 514 +8% 643 +3%
EBIT-margin (%) 14.5 14.2 14.7 14.4Income before taxes 965 764 +26% 3,556 3,199 +11%
Operating cash flow 587 549 +7% 3,702 3,439 +8%
EPS (SEK) 1.88 1.49 +26% 6.97 6.33 +10%
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EUR M 2006 2005 Change 2005 2004 Change1st Quarter Full year
EMEA financial review
Sales 342 305 +12% 1,255 1,210 +4%Organic growth +11% +3%
EBIT 51 44 +16% 184 174 +5%EBIT-margin (%) 15.0 14.3 14.7 14.4RoCE (%) 18.3 15.8 16.6 16.3Operating cash flowbefore paid interest 32 25 +28% 205 201 +2%
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USD M 2006 2005 Change 2005 2004 Change1st Quarter Full year
Americas financial review
Sales 322 283 +14% 1,182 1,129 +5%Organic growth +13% +5%
EBIT 60 51 +18% 217 199 +9%EBIT-margin (%) 18.7 17.9 18.3 17.6RoCE (%) 21.1 18.4 19.6 18.2Operating cash flowbefore paid interest 35 32 +9% 236 192 +23%
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AUD M 2006 2005 Change 2005 2004 Change1st Quarter Full year
Asia Pacific financial review
Sales 93 81 +15% 389 343 +13%Organic growth +6% +2%
EBIT 6 8 -25% 43 52 -17%EBIT-margin (%) 6.6 9.7 11.1 15.1RoCE (%) 7.1 9.9 12.9 16.8Operating cash flowbefore paid interest 1 15 -93% 46 51 -10%
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SEK M 2006 2005 Change 2005 2004 Change1st Quarter Full year
Global Technologies financial review
Sales 950 773 +23% 3,387 2,923 +16%Organic growth +10% +12%
EBIT 134 106 +26% 476 377 +26%EBIT-margin (%) 14.1 13.7 14.1 12.9RoCE (%) 17.8 16.1 17.3 15.0Operating cash flowbefore paid interest 5 60 -92% 341 398 -14%
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SEK M 2006 2005 Change 2005 2004 Change1st Quarter Full year
Entrance systems financial review
Sales 617 495 +25% 2,373 1,989 +19%Organic growth +12% +8%
EBIT 77 63 +22% 335 260 +29%EBIT-margin (%) 12.5 12.7 14.1 13.1RoCE (%) 9.8 9.0 11.1 9.2Operating cash flowbefore paid interest 123 130 -5% 307 254 +21%
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Exposure to raw materials
SteelBrassZincAluminumOther
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Operating income (EBIT) SEK M
0
200
400
600
800
1000
1200
2004 2005 20060
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Quarter Rolling 12-months
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Operating cash flow SEK M
0
200
400
600
800
1000
1200
1400
2004 2005 20063100
3200
3300
3400
3500
3600
3700
3800
Quarter Rolling 12-months
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Return on Capital Employed %
13
14
15
16
17
18
19
20
21
2004 2005 2006
Target RoCe
Target 20%
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Net debt SEK M and Gearing %
11000
11500
12000
12500
13000
13500
14000
14500
15000
2004 2005 20060
20
40
60
80
100
120
140
160
Net debt Gearing
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Outlook
Organic sales growth is expected to continue at a good rateThe operating margin (EBIT) and operating cash flow are expected to develop well, excluding effects from additional restructuring
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Q&A