Dormakaba Holding Ag · SIX:DOKA
Dormakaba — FY2014/2015 Earnings Presentation
40 slides from Dormakaba's earnings presentation, Sep 9, 2015
Slide 1: Kaba Group: Markedly Good Results in an Eventful Year
KABA GROUP: MARKEDLY GOOD RESULTS IN AN EVENTFUL YEAR RESULTS FINANCIAL YEAR 2014/2015 Riet Cadonau, CEO dorma+kaba Group Beat Malacarne, CIO dorma+kaba Group and former CFO of Kaba Group Zurich, 9.9.2015
Slide 2: Disclaimer
Disclaimer This communication contains certain forward-looking statements, e.g. If one or more of these risks, uncertainties or other factors should statements using the words "believes", "assumes", "expects", or actually occur, or if one of the underlying assumptions or expectations formulations of
Slide 3: Agenda
Agenda Kaba Group: FY 2014/2015 in review Riet Cadonau Kaba Group: financial results FY 2014/2015 Beat Malacarne dorma+kaba Group: an industry leader emerges Riet Cadonau Conclusion Riet Cadonau Kaba Group results financial year 2014/2015 9.9.2015 3
Slide 4: At a glance
Kaba Group: FY 2014/2015 in review At a glance Billion mark passed once again: sales up 8.1% to CHF 1,085.2 million Growth and profitability targets achieved – 5.4% organic growth (in local currency) on Group level – All divisions contributed to growth – EBITDA margin of 15.7% Strong product p
Slide 5: ADS EMEA: profitability further improved
Kaba Group: FY 2014/2015 in review ADS EMEA: profitability further improved Organic growth: 5.3% Profitability increased again – Operating margin in Switzerland maintained despite appreciation of Swiss franc Above-market growth overall – DACH, Western and Northern Europe especially pleasing Pr
Slide 6: ADS Asia Pacific: turnaround initiated
Kaba Group: FY 2014/2015 in review ADS Asia Pacific: turnaround initiated Organic growth: 6.0% Profitability still not satisfactory – Goal of break-even at EBIT level achieved – Operational efficiency despite initial improvement not yet sufficient Good growth in commercial sector despite chall
Slide 7: ADS Americas: strong margin
Kaba Group: FY 2014/2015 in review ADS Americas: strong margin Organic growth: 3.5% Very good profitability – Despite changes in product mix and integration costs associated with acquisitions Very healthy growth in hotel sector due to continuing investment cycle and demand for Mobile Access So
Slide 8: Key Systems: excellent organic growth
Kaba Group: FY 2014/2015 in review Key Systems: excellent organic growth Organic growth: 9.5% Strong profitability – EBITDA margin improved again – Cost leadership (i.e. operational excellence along whole value chain) reinforced Good market growth in all markets, especially in emerging markets
Slide 9: Investments in acquisitions
Kaba Group: FY 2014/2015 in review Investments in acquisitions Strategic rationale: Benefits: Insert text geographic, emerging localized products, here ACCRETIVE market established distribution network Strategic rationale: Benefits: Insert text technological, add-on complementary here ACCRETIVE prod
Slide 10: Investments in innovation and products
Kaba Group: FY 2014/2015 in review Investments in innovation and products Added value through innovation Attractive product launches and pipeline Trends – Electronic and software-based solutions – Wireless access solutions – Mobile access Kaba Group results financial year 2014/2015 9.9.2015 10
Slide 11: ADS Americas: Mobile Access Solutions
Kaba Group: FY 2014/2015 in review ADS Americas: Mobile Access Solutions Kaba Group results financial year 2014/2015 9.9.2015 11
Slide 12: ADS AP: digital locks for residential market
Kaba Group: FY 2014/2015 in review ADS AP: digital locks for residential market Kaba Group results financial year 2014/2015 9.9.2015 12
Slide 13: Key Systems: Air4 System and MySilca App
Kaba Group: FY 2014/2015 in review Key Systems: Air4 System and MySilca App Kaba Group results financial year 2014/2015 9.9.2015 13
Slide 14: ADS EMEA: wireless solutions (1)
Kaba Group: FY 2014/2015 in review ADS EMEA: wireless solutions (1) Kaba Group results financial year 2014/2015 9.9.2015 14
Slide 15: ADS EMEA: wireless solutions (2)
Kaba Group: FY 2014/2015 in review ADS EMEA: wireless solutions (2) Kaba Group results financial year 2014/2015 9.9.2015 15
Slide 16: ADS EMEA: wireless solutions (3)
Kaba Group: FY 2014/2015 in review ADS EMEA: wireless solutions (3) Kaba Group results financial year 2014/2015 9.9.2015 16
Slide 17: ADS EMEA: wireless solutions (4)
Kaba Group: FY 2014/2015 in review ADS EMEA: wireless solutions (4) Kaba Group results financial year 2014/2015 9.9.2015 17
Slide 18: Agenda
Agenda Kaba Group: FY 2014/2015 in review Riet Cadonau Kaba Group: financial results FY 2014/2015 Beat Malacarne dorma+kaba Group: an industry leader emerges Riet Cadonau Conclusion Riet Cadonau Kaba Group results financial year 2014/2015 9.9.2015 18
Slide 19: Key figures
Kaba Group: financial results FY 2014/2015 Key figures (prior year restated in accordance with Swiss GAAP FER) Net sales growth 8.1% (PY: 4.0%) Organic growth* 5.4% (PY: 5.1%) Acquisition growth 5.4% (PY: 1.6%) Currency effect on sales - 2.4% (PY: - 2.5%) Currency effect on EBITDA CHF - 2.
Slide 20: Consolidated income statement
Kaba Group: financial results FY 2014/2015 Consolidated income statement FY 2014/2015 FY 2013/2014 in CHF million % (restated) % Net sales 1,085.2 100.0 1,003.5 100.0 Cost of goods sold - 608.3 - 56.1 - 556.6 - 55.5 Gross margin 476.9 43.9 446.9 44.5 Other operating income, net 6.1 0.6 7.9 0.8 Sales
Slide 21: Sales development
Kaba Group: financial results FY 2014/2015 Sales development Sales development (in CHF million) Third-party sales by division 1.1% 19.1% 45.1% ADS EMEA ADS AP 1,085.2 ADS AM - 23.7 KS 22.8% Other 52.9 1,003.5 11.9% 52.5 FX development (average rate) FY 13/14* Organic Acquisition Currency FY 14/15 FY
Slide 22: EBITDA development
Kaba Group: financial results FY 2014/2015 EBITDA development EBITDA development (in CHF million) EBITDA contribution by division 0.8% 17.7% 41.0% ADS EMEA ADS AP 170.2 ADS AM - 2.2 KS 154.5 10.5 Other 7.4 38.8% 1.7% EBITDA margin in % FY 14/15 FY 13/14 (restated) FY 13/14* Organic Acquisition Curre
Slide 23: EBIT development
Kaba Group: financial results FY 2014/2015 EBIT development EBIT development (in CHF million) EBIT contribution by division 0.8% 17.2% 39.4% ADS EMEA ADS AP 145.0 ADS AM KS -1.5 130.6 Other 9.4 6.5 42.3% 0.3% EBIT margin in % FY 14/15 FY 13/14 (restated) FY 13/14* Organic Acquisition Currency FY 14/
Slide 24: Consolidated balance sheet
Kaba Group: financial results FY 2014/2015 Consolidated balance sheet FY ended 30.6.2015 FY ended 30.6.2014 in CHF million (restated) Total current assets 532.3 445.2 Tangible assets 155.0 156.8 Intangible assets 26.0 18.9 Other non-current assets 21.0 30.0 Total assets 734.3 650.9 Current liabiliti
Slide 25: Consolidated cash flow statement
Kaba Group: financial results FY 2014/2015 Consolidated cash flow statement FY ended 30.6.2015 FY ended 30.6.2014 in CHF million (restated) Net cash from operating activities 104.3 105.0 Net cash used in investing activities - 142.5 - 69.0 Free cash flow - 38.2 36.0 Net cash from financing activitie
Slide 26: Gearing and net liquidity
Kaba Group: financial results FY 2014/2015 Gearing and net liquidity FY ended FY ended FY ended in CHF million 30.6.2015 30.6.2014 30.6.2013 Net liquidity 121.2 35.4 56.1 EBITDA 170.2 154.5 152.9 Gearing - 0.7 - 0.2 - 0.4 150 100 50 Cash and cash equivalents 0 Debt -50 Net liquidity -100 -150 6/2015
Slide 27: Currency exposure
Kaba Group: financial results FY 2014/2015 Currency exposure Sales per currency regions Sales – costs equivalence: natural hedge 25% 30% – Transaction risks limited thanks to decentralized structure and local production sites Countering currency-related pressure 15% on prices in Switzerland with
Slide 28: Dividend pay-out proposal 2015
Kaba Group: financial results FY 2014/2015 Dividend pay-out proposal 2015 POLICY 40% - 60% of consolidated net profit RESULT Consolidated net profit CHF 98.9 million, Proposed dividend-yields: pay-out CHF 50.3 million low 1.9% / high 2.9% (based on share price: low CHF 413.75 / high: CHF 630)
Slide 29: Agenda
Agenda Kaba Group: FY 2014/2015 in review Riet Cadonau Kaba Group: financial results FY 2014/2015 Beat Malacarne dorma+kaba Group: an industry leader emerges Riet Cadonau Conclusion Riet Cadonau Kaba Group results financial year 2014/2015 9.9.2015 29
Slide 30: A unique value proposition
dorma+kaba Group: an industry leader merges A unique value proposition Top 3 market position Excellent strategic fit dorma+kaba transformational Complementary product transaction will drive industry portfolios, enhanced access consolidation to key markets, strong combined presence through- out build
Slide 31: What we achieved so far
dorma+kaba Group: an industry leader merges What we achieved so far Merger Announcement 30 April 2015 Green light of Kaba shareholders for merger Capital increase: shares issued to Dorma owner family EC members designated Preparatory PMI work started Approvals of antitrust authorities
Slide 32: Next steps
dorma+kaba Group: an industry leader emerges Next steps Continue to focus on customers and partners In parallel, work on Post Merger Integration (PMI) – Finalizing operating model – Finalizing key elements such as mission, values, etc. – Definition of leadership personnel down to country level –
Slide 33: Timeline: key milestones
dorma+kaba Group: an industry leader emerges Timeline: key milestones “Closing” “Organization Day” “Day 1” (1 September 2015) (4 January 2016) (1 July 2016) Legally, we are We start operating in All major allowed to act as our target organizational and one company after organization and personnel-re
Slide 34: Outlook (1)
dorma+kaba Group: an industry leader emerges Outlook (1) Challenging global environment, especially in emerging markets Expectations for overall economic development main market regions – Americas: good – Europe: positive by trend – Asia and other emerging markets: flat, no change in current fra
Slide 35: Outlook (2)
dorma+kaba Group: an industry leader emerges Outlook (2) dorma+kaba Group combined mid-term targets, including synergies (provided stable economies) ‒ Approx. 6 - 7% per year run-rate sales growth expected (in local currency), including expected revenue synergies ‒ EBITDA margin of 18% to be reach
Slide 36: Agenda
Agenda Kaba Group: FY 2014/2015 in review Riet Cadonau Kaba Group: financial results FY 2014/2015 Beat Malacarne dorma+kaba Group: an industry leader emerges Riet Cadonau Conclusion Riet Cadonau Kaba Group results financial year 2014/2015 9.9.2015 36
Slide 37: Conclusion: a sound foundation for the next chapter
Conclusion A sound foundation for the next chapter Results FY 2014/2015 FY 2015/2016 and onwards Kaba Group: markedly good results ─ Organic growth: 5.4% with all divisions contributing ─ Profitability: 15.7% ADS EMEA, ADS Americas and Strong foundation for Key Systems further improved profitabili
Slide 38: CTO dialogue
dorma+kaba Group We invite you to CTO dialogue 11 November at HolidayInn Zurich Oerlikon dorma+kaba Chief Technology Officer Andreas Häberli presents an innovation update dorma+kaba representatives give insight into the Dorma product offering Subsequent visit to Kaba booth at the Messe Sicherh
Slide 39: IR calendar
dorma+kaba Group IR calendar UBS Best of Switzerland Conference 11 September 2015 Annual General Meeting 20 October 2015 CTO dialogue (Zurich) 11 November 2015 CS Small & Mid Cap Conference 20 November 2015 Helvea Swiss Equities Conference 15 January 2016 Half-Year Results 2015/2016 7 Ma
Slide 40: Thank you for your attention!
THANK YOU FOR YOUR ATTENTION!