q1 report 2006 johan molin, president and ceo€¦ · microsoft powerpoint - q106...

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Q1 report 2006 Johan Molin, President and CEO

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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

Q1 report 2006Johan Molin, President and CEO

Page 2: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

2

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%

Page 3: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

3

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

Page 4: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

4

Organic growth %

-4

-2

0

2

4

6

8

10

12

14

2002

2003

2004

2005

2006

Quarter Rolling 12-months Target

Target 5%

Page 5: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

5

Acquired growth %

0

5

10

15

20

25

30

35

2002

2003

2004

2005

2006

Quarter Rolling 12-months

Page 6: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

6

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

Page 7: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

7

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

Page 8: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

8

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

Page 9: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

9

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

Page 10: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

10

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

Page 11: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

11

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

Page 12: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

12

Manufacturing – profile of revised plan %

2006 2007 2008

CostsPaymentsSavings

Page 13: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

13

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

Page 14: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

Q1 report 2006Göran Jansson, Deputy CEO and CFO

Page 15: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

15

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%

Page 16: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

16

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%

Page 17: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

17

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%

Page 18: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

18

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%

Page 19: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

19

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%

Page 20: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

20

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%

Page 21: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

21

Exposure to raw materials

SteelBrassZincAluminumOther

Page 22: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

22

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

Page 23: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

23

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

Page 24: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

24

Return on Capital Employed %

13

14

15

16

17

18

19

20

21

2004 2005 2006

Target RoCe

Target 20%

Page 25: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

25

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

Page 26: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

26

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

Page 27: Q1 report 2006 Johan Molin, President and CEO€¦ · Microsoft PowerPoint - Q106 Operaterrassen.ppt Author: aahewe Created Date: 4/25/2006 3:23:46 PM

Q&A