Dormakaba Holding Ag · SIX:DOKA
Dormakaba — FY2015/2016 Earnings Presentation
41 slides from Dormakaba's earnings presentation, Sep 7, 2016
Slide 1: Full-year results 2015/2016
Riet Cadonau, CEO Bernd Brinker, CFO Zurich/Switzerland, 07.09.2016 Full-year results 2015/2016
Slide 2: Disclaimer
Disclaimer This communication contains certain forward-looking statements, e.g. statements using the words "believes", "assumes", "expects", or formulations of a similar kind. Such forward-looking statements are based on assumptions and expectations which the company believes to be well founded, but
Slide 3: Agenda
Full-year results 2015/2016 Agenda FY 2015/2016 at a glance Riet Cadonau Slide 3 PMI status and strategy Riet Cadonau Slide 13 Financial results and outlook Bernd Brinker Slide 21 3 Presentation on full-year results 2015/2016 7.9.2016
Slide 4: FY 2015/2016 at a glance: Pro forma results
FY 2015/2016 at a glance Pro forma*) results • Post-merger integration on track: all milestones met, first cost savings • Sales increased currency-adjusted by 2.6% to 2,302.6m CHF • EBITDA increased by 29.1m CHF to 332.7m CHF • Guidance met: • Organic growth of 2.3% • EBITDA margin improved to 14.4%
Slide 5: Segment structure and third-party sales contribution
FY 2015/2016 at a glance Segment structure and third-party sales contribution Access Access Access Access Key Movable Solutions Solutions Solutions Solutions Systems Walls (AS) AMER (AS) APAC (AS) DACH (AS) EMEA 8.9% of 4.5% of 86.1% of Group sales Group sales Group sales 5 Presentation on full-year
Slide 6: AS AMER: Strong results driven by Lodging Systems
FY 2015/2016 at a glance AS AMER: Strong results driven by Lodging Systems • Total sales increased 5.4%*) to 514.9m CHF • EBITDA margin 20.9% vs. 19.3% in 2014/2015 • Strong demand in North America, weaker markets in South America • Double-digit sales growth in Lodging Systems • Keyscan acquired in
Slide 7: AS APAC: Improved profitability
FY 2015/2016 at a glance AS APAC: Improved profitability • Total sales decreased 0.8%*) to 376.1m CHF • EBITDA margin 9.6% vs. 8.7% in 2014/2015 • Good growth and growing market share in Australia and South-East Asia • Sales impacted by economic slowdown in China and by the targeted rightsizing of W
Slide 8: AS DACH: Sustained high profitability
FY 2015/2016 at a glance AS DACH: Sustained high profitability • Total sales increased by 1.6%*) to 790.0m CHF • EBITDA 146.7m CHF, EBITDA margin of 18.6% on par with previous year • Good growth in Germany. Austria slightly above, Switzerland was negatively impacted by the weak performance of Safe+V
Slide 9: AS EMEA: Solid growth in Western Europe
FY 2015/2016 at a glance AS EMEA: Solid growth in Western Europe • Total sales increased by 3.9%*) to 736.5m CHF • EBITDA 48.4m CHF; EBITDA margin 6.6%, slightly below previous year • Good growth in Western Europe, demand in Eastern Europe and the Middle East impacted by weak economy • Good demand f
Slide 10: Key systems: Good performance
FY 2015/2016 at a glance Key systems: Good performance • Total sales of 208.5m CHF, down by 1.1%*) compared to 2014/2015 • EBITDA margin of 17.1% almost on par with the previous year • Increased demand in most regions, double-digit sales growth in Asia and South America • Comparable base in North Am
Slide 11: Movable Walls: Good growth and improved profitability
FY 2015/2016 at a glance Movable Walls: Good growth and improved profitability • Total sales up by 3.9%*) to 113.8m CHF • EBITDA 13.1m CHF; EBITDA margin increased to 11.5% from 9.0% • Sales growth driven by North America, strong performance in Asia and Australia • EMEA weaker • Focus on enabling pr
Slide 12: Innovation update
FY 2015/2016 at a glance Innovation update • Commitment to increase R&D investments to leverage on the opportunities of dorma+kaba and the digital transformation of our industry – target to invest 4-5% of sales • Industry trends • Mobile access • Software as a Service (SaaS) • Preventive maintenance
Slide 13: Agenda
Full-year results 2015/2016 Agenda FY 2015/2016 at a glance Riet Cadonau Slide 3 PMI status and strategy Riet Cadonau Slide 13 Financial results and outlook Bernd Brinker Slide 21 13 Presentation on full-year results 2015/2016 7.9.2016
Slide 14: Milestones
Post-merger integration Milestones Close Detail plan and perform Execute plan and perform Perform 2015 2016 2017 2018 2019 “Closing” “Org Day” “Day 1” “Day i” (SEP 01, 2015) (JAN 04, 2016) (JUL 01, 2016) (JUL 01, 2018) • Legally allowed • Major organi- • Start operating • Major integration to act as
Slide 15: What we achieved
Post-merger integration What we achieved April 2015: December 2015: Merger announced Country heads appointed Mission and values finalized May 2015: Green light of Kaba shareholders received January 2016: for the merger Organization Day Capital increase: shares issued to Dorma Operating Model defined
Slide 16: Status: on track
Post-merger integration Status: on track Post-merger integration 1 2 3 Core Value Driver Change Projects Initiatives Management 16 Presentation on full-year results 2015/2016 7.9.2016
Slide 17: Changing focus in the process
Post-merger integration Changing focus in the process FROM… …TO Planning, e.g. VDIs, Core Projects Execution, i.e. realizing synergies Internal focus, e.g. Operating Model and org External focus, e.g. joint portfolio with revised structure, processes, ambition, values Go-to-Market approach, cross-se
Slide 18: Selection of first won joint tenders
Post-merger integration Selection of first won joint tenders Singapore: Changi Airport Terminal 4 and Jewel Sydney, Australia: Flour Mill Apartments Utrecht, The Netherlands: Hotel City Center Vienna, Austria: Headquarter Erste Group Bank 18 Presentation on full-year results 2015/2016 7.9.2016
Slide 19: Strategy pyramid
dorma+kaba strategy 2021 Strategy pyramid Our ambition is our view on what we want to achieve by the year 2021. Our mission is our timeless reason for being. Ambition Our values are the principles or standards of behavior we stand for. Mission Values Our strategy is the long term plan of action we p
Slide 20: Six strategic pillars and two foundations
dorma+kaba strategy 2021 Six strategic pillars and two foundations to support the dorma+kaba ambition to become the trusted industry leader Superior offering Expanding presence Enterprise Innovation Optimized business Right people excellence leadership portfolio – right roles Global brand power Sust
Slide 21: Agenda
Full-year results 2015/2016 Agenda FY 2015/2016 at a glance Riet Cadonau Slide 3 PMI status and strategy Riet Cadonau Slide 13 Financial results and outlook Bernd Brinker Slide 21 21 Presentation on full-year results 2015/2016 7.9.2016
Slide 22: Key figures
Financial Results FY 2015/2016 Key figures 12+12 12+12 10+12 • Solid organic growth of 2.3%, even higher after 2015/2016 2014/2015 2015/2016 in CHF million pro forma1) pro forma1) reported2) adjusted for one-time effects Net sales 2,302.6 2,244.7 2,115.9 • EBITDA grew by 29.1m CHF to 332.7m CHF Orga
Slide 23: Sales development (basis 12+12 pro forma)
Financial Results FY 2015/2016 Sales development (basis 12+12 pro forma) Sales development (in CHF million) • Organic sales growth of 52.0m CHF (2.3%), 2,305.4 2,302.6 at the upper end of our guidance for 2015/2016 5.9 • Underlying organic sales growth (elimination 2,244.7 of one-time effects at Wah
Slide 24: EBITDA development (basis 12+12 pro forma)
Financial Results FY 2015/2016 EBITDA development (basis 12+12 pro forma) EBITDA development (in CHF million) • Strong organic EBITDA growth of 24.8m CHF 332.7 4.3 • EBITDA growth driven by AS AMER and initial merger-related cost savings 309.4 303.6 -5.8 24.8 • Currency translation negatively impact
Slide 25: EBITDA margin development on segment level
Financial Results FY 2015/2016 EBITDA margin development on segment level 12+12 12+12 10+12 • EBITDA margin at midpoint of our guidance for 2015/161) 2014/151) 2015/162) 2015/2016 AS AMER 20.9% 19.3% 22.0% • EBITDA margin profile on segment level (12+12 AS APAC 9.6% 8.7% 9.1% vs. 10+12, both 2015/20
Slide 26: Income statement (basis 12+12 pro forma)
Financial Results FY 2015/2016 Income statement (basis 12+12 pro forma) 12+12 12+12 2015/2016 2014/2015 • Gross margin and General administration: first pro forma1) pro forma1) merger-related cost synergies mCHF % mCHF % Net sales 2,302.6 100.0 2,244.7 100.0 • Sales and marketing: higher expenses th
Slide 27: Cash flow statement and net debt
Financial Results FY 2015/2016 Cash flow statement and net debt (both as reported) Consolidated cash flow statement • Strong financial profile of dorma+kaba mirrored by cash flow profile and net debt development in CHF million 2015/20161) 2014/20152) Cash generated from operations 327.6 149.1 • Good
Slide 28: Dividend pay-out proposal
Financial Results FY 2015/2016 Dividend pay-out proposal Proposal Policy • Elimination of merger-related “extraordinary result” (including tax impact) leads to an adjusted base of 92m CHF Envisaged pay-out ratio of minimum 50% of consolidated • 12.00 CHF per share (50.3m CHF) net profit after minori
Slide 29: 2018/2019 targets confirmed
Outlook 2018/2019 targets confirmed – stand-alone plans and PMI plans will contribute EBITDA margin Confirmation of 2018/2019 targets dorma+kaba is managed as one Cornerstones of margin improvement*): • 18% EBITDA margin company since “Day 1” (1 July 2016) • Restructuring (esp. in the US, in • Organ
Slide 30: Guidance for financial year 2016/2017
Outlook Guidance for financial year 2016/2017 Business outlook and guidance FY 2016/2017 Market development • IMF: "Uncertainty has increased, and risk of weaker growth scenarios are becoming more tangible." • North America good, South America improving from low base • Europe: moderate growth • Asia
Slide 31: FY 2015/2016: a successful start to a new era
Summary FY 2015/2016: a successful start to a new era Outlook Summary FY 2015/2016 • Post-merger integration on track • Sales increased • EBITDA increased The successful start of dorma+kaba • Guidance met further adds to the strong foundation to build a new industry leader. • High operating cash flo
Slide 32: Thank you for your attention.
Thank you for your attention. dorma+kaba Holding AG Hofwisenstrasse 24 8153 Rümlang Switzerland www.dormakaba.com
Slide 33: IR Agenda 2016/2017
Financial Results FY 2015/2016 IR Agenda 2016/2017 • Credit Suisse European Industrials Conference 14 September 2016 London, UK • UBS Best of Switzerland Conference 16 September 2016 Ermatingen, Switzerland • Annual General Meeting 18 October 2016 Regensdorf, Switzerland • Publication and presentati
Slide 34: Financial data - appendix
Financial results FY 2015/2016 Financial data - appendix • Segments Access Solutions (total) • Currency exposure • Consolidated income statement (Swiss GAAP FER) • Consolidated balance sheet • Consolidated cash flow statement 34 Presentation on full-year results 2015/2016 7.9.2016
Slide 35: Segments Access Solutions (total)
Financial data - appendix Segments Access Solutions (total) Sales / profitability (in CHF million) FY 2015/16 FY 2014/15 FY 2015/16 pro forma2) pro forma2) reported3) Total segment sales1) 1,985.4 1,933.7 1,815.2 Operating profit before depreciation and amortization (EBITDA) 338.7 320.4 314.9 EBITDA
Slide 36: Currency exposure
Financial data - appendix Currency exposure Sales per currency regions1) As every globally active group, 32% 32% dorma+kaba is exposed to currency risks The currency profile of dorma+kaba shows a broad balance between sales 8% and costs per region (= natural hedge) 28% Cost per currency regions1) 27
Slide 37: Consolidated income statement (Swiss GAAP FER)
Financial data - appendix Consolidated income statement (Swiss GAAP FER) in CHF million Financial year Financial year except per share amounts ended 30.06.20161) in % ended 30.06.20152) in % Net sales 2,115.9 100.0 1,085.2 100.0 Cost of goods sold -1,222.7 -57.8 -608.3 -56.1 Gross margin 893.2 42.2
Slide 38: Consolidated balance sheet (1/2): Assets
Financial data - appendix Consolidated balance sheet (1/2): Assets Financial year Financial year in CHF million ended 30.06.20161) in % ended 30.6.20152) in % Current assets Cash and cash equivalents 213.2 13.5 142.5 19.4 Trade receivables 403.7 25.6 185.4 25.2 Inventories 364.0 23.0 175.8 23.9 Curr
Slide 39: Consolidated balance sheet (2/2): Liabilities and equity
Financial data - appendix Consolidated balance sheet (2/2): Liabilities and equity Financial year Financial year in CHF million ended 30.06.20161) in % ended 30.6.20152) in % Current liabilities Current borrowings 52.6 3.3 19.7 2.7 Trade payables 120.1 7.6 58.2 7.9 Current income tax liabilities 47.
Slide 40: Consolidated cash flow statement (1/2)
Financial data - appendix Consolidated cash flow statement (1/2) Financial year Financial year in CHF million ended 30.06.20161) ended 30.6.20152) Net profit 104.7 98.9 Depreciation and amortization 49.8 25.2 Income tax expenses 54.8 38.8 Interest expenses 9.7 6.1 Interest income -1.5 -0.4 (Gain) Lo
Slide 41: Consolidated cash flow statement (2/2)
Financial data - appendix Consolidated cash flow statement (2/2) Financial year Financial year in CHF million ended 30.06.20161) ended 30.6.20152) Cash flows from investing activities Purchase of property, plant and equipment -47.1 -26.8 Proceeds from sale of property, plant and equipment 4.9 0.5 Ac
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