Presentation on theme: "ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience."— Presentation transcript:
1 ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
2 ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
3 ASSA ABLOY in brief 2012 Own operations in more than 70 countries Authorized distribution covering the worldAbout 43,000 employeesSales of about SEK 47 billionASSA ABLOY is the global leader in door opening solutions, and we offer a more complete range of door opening solutions than any other company on the market. In, for example, the rapidly growing electromechanical security sector, the Group has a leading position in fields such as access control, identification technology, automatic doors and hotel security.ASSA ABLOY is the strongest global player in the industry. The Group is represented in all major regions, on both mature and emerging markets worldwide, with leading positions in much of Europe and North America, Asia and the Pacific.We own operations in more than 60 countries, and through authorized distribution we cover the world.Since our Group was founded in 1994, we have grown from a regional company to an international Group with more than 41,000 employees and sales of about SEK 42 billion.
5 Operating income* (EBIT) Quarter, SEK M12 months, SEK MRun rate 7,501 MSEK (6,624), +13%ASSA ABLOY has seen amazing growth since its start in Evolving from a regional mechanical locks company to a truly global corporation providing total door opening solutions. Today we are by far the largest company within our industryRapid Growth:from SEK 200 million to over SEK 6,600 million in operating incomefrom subsidiaries in 10 countries to 60 countriesfrom 4,500 employees to 41,000 employees*Excluding restructuring costs 2006, 2008, 2009 and 2011.
6 We have built a world leader A clear and well adopted strategyTrend towards higher securityAcquisitions successfully integratedOur strong development during the past 16 years is based on several factors.The strategy is clear: To ensure our future growth we need to be an innovative leader of product development, present products that are relevant to our customers and strive for cost-efficiency in everything we do.There is a demand for safety and security with a focus on convenience and design that is increasing worldwide. Today, customers are looking for solutions rather than individual lock components. The market is rapidly changing toward new technologies and ASSA ABLOY has a leading position. Electromechanical products will be increasingly important for the Group’s growth in the future.Recent acquisitions have been successfully integrated into the company and we intend to continue acquiring companies so we can add new technology, strengthen our geographic presence in, for example Asia, and complement our existing operations. We’ve made 65 acquisitions between and 150 acquisitions since the Group was formed in 1994.
7 Our visionTo be the world-leader, most successful and innovative provider of door opening solutionsTo lead in innovation and offer well-designed, convenient, safe and secure solutions that create added value to our customersTo be an attractive company to work for• To be the true world leader, the most successful and innovative provider of total door opening solutions.• To lead in innovation and provide well-designed, convenient, safe and secure solutions that give true added value to our customers.• To offer an attractive company to our employees
8 Growth and profitability ASSA ABLOY Strategy++Market presenceProduct leadershipCost- efficiency=Growth and profitabilityASSA ABLOY creates opportunities for increased growth and profitability through a strong focus on the strategy’s three areas of market presence, product leadership and cost-efficiency.
9 +MarketpresenceA world-leading market presence is achieved by exploiting the strength of the brand portfolio, increasing growth in the core business and expanding into new markets and segments.A world-leading market presence is achieved by exploiting the strength of the brand portfolio, increasing growth in the core business and expanding into new markets and segments.ASSA ABLOY has many of the industry’s strongest brands. The sales teams on the local markets are united under the ASSA ABLOY master brand to better meet the rising demand for more complete security solutions.Collaboration with architects, security consultants and major end-users on the specification and project market is being intensified. The Group is expanding into new geographical markets through the development of distribution channels, with customized product offerings and through acquisitions.
10 Solid market position The leading brands Large installed base A strong sales channel positionLocal standards adds to stabilityOur strong development during the past 16 years is based on several factors.The strategy is clear: To ensure our future growth we need to be an innovative leader of product development, present products that are relevant to our customers and strive for cost-efficiency in everything we do.There is a demand for safety and security with a focus on convenience and design that is increasing worldwide. Today, customers are looking for solutions rather than individual lock components. The market is rapidly changing toward new technologies and ASSA ABLOY has a leading position. Electromechanical products will be increasingly important for the Group’s growth in the future.Recent acquisitions have been successfully integrated into the company and we intend to continue acquiring companies so we can add new technology, strengthen our geographic presence.
11 Our business is total door opening solutions seamlessly connected to the building ASSA ABLOYs business is total door opening solutions seamlessly connected to the buildingOur market is everywhere in the world where there is a need for secure, safe, and convenient door opening solutions. ASSA ABLOY’s business is built around the total door solution, and almost everything that is connected to the door, attached to the door, or surrounds the door. Our goal is to make door solutions seamlessly connected to the building.Our products play an important part for our customers’ security and safety and are an integral part of our customers’ overall solution. Our focus remains firmly on the door opening. By concentrating on what we do best, we continue to provide the best possible total door opening solutions.ASSA ABLOYs business is focused on six product areas: mechanical locks and hardware, electromechanical and electronic locks, physical and logical access control, secure identity and issuance, entrance automation, and security doors. Our products and solutions are used in commercial, industrial, institutional, and residential areas.11
12 Our solutions meet customer needs Large customers Institutional and commercial customers such as airports, hospitals, schools, shopping malls universities and industrySmall and midsize customer Characterized by each customer’s need for professional advice and installationResidential and Consumers The majority of consumer sales are replacements or upgrades of existing security productsDemands vary widely between customer segments, but ASSA ABLOY has solutions for all types of doors in a range of environments. We work with architects, authorities and major end customers to create and offer the best security solutions for all kinds of door openings.Airports, hospitals, offices and private homes have different security needs. Accordingly, the security solution for each door is adapted to the door’s location and how it will be used.Major customers include airports, commercial institutions and hospitals, with a large number of people passing through daily.Small and midsize customers are characterized by the customers’ need for professional advice and installation. This need is mainly met by specialized distributors and installers, such as locksmiths.The majority of consumer sales are replacements or upgrades of existing security products. The typical private consumer needs extensive advice and help with installation. ASSA ABLOY has developed a range of home security concepts to meet these needs.
13 Four Global brands where market position is unique Our brand strategyASSA ABLOY as master brand United sales force and progressive implementation on productsProduct brands capitalizing on installed baseFour Global brands where market position is uniqueProduct brands, non endorsed- Not associated with the ASSA ABLOY brand
14 +ProductleadershipThe Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs.The Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs. A key activity for achieving this is the use of common product platforms with fewer components.New products are also being developed in close collaboration with ASSA ABLOY’s end-users and distributors to enhance customer value. The product development process has been streamlined by implementing a clearly defined common development process and by separating the maintenance and improvement of existing products from new development.
15 Product leadership through innovation We are convinced that innovation is the most important driver for growthInvestments in R&D has more than doubled since 2005 and we have over engineersWe assure long term competitive advantage by continuously improving our products in terms of benefits, costs and qualityWe are convinced that innovation is the single most important driver for organic growth. Therefore innovation and the innovation process are central to ASSA ABLOY’s strategy and development of its long-term competitive advantage.ASSA ABLOY assures true long-term competitive advantage by continuously improving its products in terms of benefits, costs and quality through an endless number of small development steps.
16 Increased share of fast growing products – electromechanics 200014 sek bn201247 sek bnSecuritydoors14%22%Securitydoors18%Mechanicallocks &accessories36%Electronics/electromech20%Mechanicallocks &accessories66%42%Electronics/electromech46%36%
17 Some ASSA ABLOY products 1. (Top) Cliq Remote Cliq Remote is a new locking system enabling the user to control a key’s access rights by mobile phone. Each time a Cliq key is inserted into an updating unit, it connects via the internet to the administration system, downloads new access rights and removes old rights. The key also energizes the lock cylinder, which therefore does not need its own power supply. The battery lasts for around 30,000 door operations and two years’ use.2. HID Global’s Secure Identity Objects™ (SIO) technology won the 2011 SESAME award for innovation at CARTES. Delivering enhanced security, portability and flexibility, SIO technology operates within HID’s Trusted Identity Platform® (TIP™) that enables digital credentials to be securely embedded into a variety of trusted devices, including Near Field Communications (NFC) mobile phones and related devices.3. HID Global’s new EDGE EVO® and VertX EVO™ controller platform for IP access control solutions is an open and scalable platform that provides organizations with the most extensive access device systems. The platform delivers enhanced security features including superior performance and future upgrade options, extending the value of an open architecture access control development platform by protecting an organization’s hardware investment for end-user installations. EDGE EVO and4. (Bottom) ASSA ABLOY Mobile Kews opens doors with a cell phone. The market for mobile access control is growing strongly. ASSA ABLOY Mobile Keys and NFC-enabled phones now make it possible to unlock doors securely using a cell phone. ASSA ABLOY Mobile Keys provide the infrastructure and the technology that allow the transfer of physical keys and access cards to a cell phone.5. The Crawford 242FG overhead sectional door Attractive design and customer needs in focus. The Crawford 242FG overhead sectional door is a fully glazed door, designed to be used when there is a need for light, exposure, or vision. Typical applications are show-rooms, fire stations, or other applications where optimal daylight inlet and/or exposure possibilities are desirable.
18 Some ASSA ABLOY products (Left) Yale Doorman is a digital door lock for housing in Scandinavia. The smart digital door lock, Yale Doorman, was launched in Scandinavia in The lock allows users to lock and unlock their homes using electronic key fobs, a PIN code or remote control. The key fob can be easily blocked if lost and a new one registered by the user. The PIN code allows access at all times without a key.2. (Top right)Tight-sealing sliding doors improve energy savings for Besam customers.Besam has launched greener configurations for their existing sliding door profile packages. The TightSeal features extra brushes and rubber bumpers for a more energy-saving seal and the configuration is available for existing as well as new sliding door systems. Benefits include less air leakage and water infiltration, which is especially optimal during non-business hours but also beneficial whenever the door is closed during opening hours.3. (Bottom right) The Norton’SafeZone door closer/holder is an award winning innovation featuring a builtin motion sensor that detects movement through a doorway. SafeZone enhances the safety and convenience features of an opening by holding the door open to allow safe passage for slow moving people like the very young, elderly or infirm. It also eases the way for carts, gurneys or other bulky objects that are difficult to navigate through an opening equipped with a standard door closer. Ideal for use in healthcare facilities, schools and retail stores, SafeZone eliminates unnecessary cycles on openings subjected to heavy traffic of people or equipment by holding the door open as long as needed. This reduces damage caused by equipment hitting the door. SafeZone also reduces the likelihood a door will be propped open, resulting in energy savings and increased security.
19 +CostefficiencyEfforts to increase cost- efficiency continue in all areas, including common product platforms with fewer components and common product development.Efforts to increase cost-efficiency continue in all areas, including common product platforms with fewer components and common product development. In production, flexible final assembly close to the customer is combined with the transfer of high-volume standard production to external and internal production units in low-cost countries. The implementation of lean methods continues, and is leading to more efficient productionflows, better control of material costs, improved decision-making procedures, shorter development times and increased cooperation between marketing and sales teams.19
20 Efficient manufacturing footprint A radically reduced break-even cost is done through embracing lean manufacturing methods and consolidating the number of factories. The single most important transformation is the move from producing everything in-house (manufacturing-centric) to an assembly-oriented organization.Non-critical activities are outsourced. Concentration on assembly in high-cost countries. Selected components are produced in ASSA ABLOY low-cost facilities (cylinders, door closers, lock cases, electromechanics). Global sourcing is done on all other components and products.
21 = Growth and profitability ASSA ABLOY creates opportunities for increased growth and profitability through a strong focus on the strategy’s three areas of market presence, product leadership and cost-efficiency.ASSA ABLOY creates opportunities for increased growth and profitability through a strong focus on the strategy’s three areas of market presence, product leadership and cost-efficiency.21
22 Our growth drivers The new “electronic world”: electromechanical and digital lockingaccess control and secure identity & issuanceautomatic doorsGeographical and emerging market expansionIncreased need for securityHigher expectationsAcquisitionsBrandingInnovation – new solutionsThe new “electronic world” has brought an increased demand for electromechanical and digital products. Clients also express their need for extended access control and high security in their identification process. Door automatics is another field that is growing rapidly in the electronic world, providing increased convenience.Geographically we will continue to build our presence in mature and emerging markets where the need for our solutions is expected to grow as the standard of living continues to improve.There is an increased need for security to meet the demand for protection of our posessions in a world where we own more, at a higher monetory value.Higher expectations of the role of security and safety products, including more intelligent solutions to fit modern needs and desires increase the value of our business opportunities.Acquisitions continue to be a strong growth driver adding new technologies, products and geographical presence. In 2010 PanPan which is Chinas largest manufacturer of high security steel doors. Other large acquisitions where King Door Closers, South Africa, Paddock, UK and ActivityIdentiy , USA.To utilize our brand asset on a global basis we will, over time, transform local brands into the ASSA ABLOY brand, which has been chosen as the Group’s master brand. A selected number of global brands will also be used and on a local basis product brands will continue to exist with a strengthened ASSA ABLOY endorsement.Innovation is the single most important driver for organic growth. We have about 1,000 engineers. A new development process with gateways has been implemented, creating a much faster time to market for new products.
23 ASSA ABLOY Entrance Systems ASSA ABLOY divisions 2012ProductOffering% of Group SalesOrganizationMech & el mechlocks, cylinders &security doorsAmericas21%EMEA28%Asia Pacific14%63%Electronic access& identityGlobal Technologies(HID & Hospitality)13%Entrance automationASSA ABLOY Entrance Systems24%ASSA ABLOY is organized into three geographical divisions and two product divisions.The geographical divisions consist of a number of local companies that are mainly active on the local market:EMEA (Europe, Middle East and Africa)Americas (North and South America)Asia Pacific (Asia, Australia and New Zealand)The two product divisions, which serve a global market are:Global Technologies, which comprisesHID Global is a global leader in secure identity solutions, primarily in identity and access control, and in contactless identification solutions.ASSA ABLOY Hospitality is the market leader in electronic lock systems and safes for hotels and cruise ships.-Entrance Systems which supplies solutions for entrance automation.23
24 Operating income (EBIT) EMEA division 2012Europe, Middle East and AfricaIn 2012, EMEA grew by percent and sales totaled SEK 13,382 MThe division has 10,260 employeesSome of the leading brands are ABLOY, ASSA, TESA, Yale and VachetteShare of GroupSalesOperating income (EBIT)EMEA division manufactures and sells mechanical, electromechanical and electronic locks, cylinders, security doors and fittings in Europe, the Middle East and Africa. Most sales take place in West Europe, but emerging markets in East Europe and the Middle East are gaining in importance. EMEA consists of a number of Group companies with a good knowledge of their local and in many respects diversified markets. Some of the division’s leading brands are ABLOY, ASSA, IKON, Mul-T-Lock, TESA, UNION, Yale and Vachette.The division has 10,100 employees and divisional management is located in London, United Kingdom.3028312934
25 Operating income (EBIT) Americas division 2012North and South AmericaIn 2012, Americas grew by 9 percent and sales totaled SEK 9,671 MThe division has 6,620 employeesSome of the leading brands are Corbin Russwin, Curries, Emtek, Medeco, Phillips, SARGENT, Ceco, Yale and La FonteShare of GroupSalesOperating income (EBIT)Americas division manufactures and sells mechanical and electromechanical locks, cylinders, security doors and door frames in North and South America. The majority of the division’s sales are in North America, where ASSA ABLOY has an extensive sales organization and sells its products through distributors. Sales in South America and Mexico take place mainly through distributors, wholesalers and DIY stores.Some of the division’s leading brands are Ceco, Corbin Russwin, Curries, Emtek, Medeco, Phillips, SARGENT and La Fonte. The division has 6,700 employees and divisional management is located in New Haven, Connecticut, USA.21252630
26 Operating income (EBIT) Asia Pacific division 2012Asia, Australia and New ZealandIn 2012, Asia Pacific grew by percent and sales totaled SEK 7,224 MThe division has 15,284 employeesSome of the leading brands in Asia are, Baodean, Guli, King, iRevo Pan Pan, Shenfei, Tianming, Wangli and Yale. In Australia and New Zealand Lockwood and InterlockShare of GroupSalesOperating income (EBIT)1412ASSA ABLOY’s Asia Pacific division includes companies in China and other parts of Asia, Australia and New Zealand.The Asia Pacific division has 15,800 employees and its head office is based in Hong Kong.ASSA ABLOY is the master brand and some of the leading product brands are Lockwood in Australia, Interlock in New Zealand, Guli, Baodean, and Wangli in China and iRevo and King Door Closers in Korea. The Yale brand is being developed extensively in the region.
27 Global Technologies division 2012 Operates worldwide with focus on access control, secure issuance of cards, RFID identification technology and hotel securityIn 2012, Global Technologies grew by 9 percent and sales totaled SEK 6,262 MThe division has 3,029 employeesLeading brands are HID, Fargo, Elsafe and VingCardShare of GroupSalesOperating income (EBIT)1413Global Technologies has a leading position as a supplier of electronic security solutions worldwide. The division consists of two business units: HID Global and ASSA ABLOY Hospitality, with sales mainly to the commercial segment. HID Global is a global leader in secure identity solutions, primarily in identity and access control, and in contactless identification solutions. ASSA ABLOY Hospitality is the market leader in electronic lock systems and safes for hotels and cruise ships. The division has 2,800 employees and divisional management is based in Stockholm, Sweden.
28 Entrance Systems division 2012 Supplies complete solutions for automatic doors and after-sales servicesIn 2012, Entrance Systems grew by 33 percent and sales totaled SEK 10,979 MThe division has 7,429 employeesLeading brands are Besam, Crawford, DITEC, EntreMatic, Flexiforce and NormstahlShare of GroupSalesOperating income (EBIT)2420Entrance Systems division is a global leading supplier of products, components and service in entrance automation. The product range includes automatic swing-, sliding- and revolving doors, air curtains, door-, gate- and garage door automation as well as industrial doors, docking solutions and hangar doors. The recent acquisitions of Albany Door Systems and Dynaco add high-speed industrial doors to the product range.The products are sold both through a direct sales channel (new equipment and an extensive service offering) and via distributors (products and components). Products are sold under the global leading brands Besam, Crawford, Megadoor, Normstahl, Ditec, FlexiForce, EM and Henderson.The division has 5,600 employees and the divisional head office is placed in Landskrona, Sweden.
30 Financial overview 2012 Sales increased to SEK 46,619 M (12%) Operating income (EBIT) SEK 7,501 M (13%)Earnings per share SEK (13%)Operating cash flow SEK 7,044 M (6,080)
31 Earnings per shareIn five years sales has increased with 25%, Operating income with 20% and earnings per share with 36%
32 Sales split Group overview End usersRecurring businessProduct mixElectronicproducts22%New construction 33%Residential25%Mechanicalproducts 36%Entranceautomation24%Commercial and institutional75%After market67%Securitydoors18%Commerical and institutional clients account for 75 percent of ASSA ABLOYs sales. The remaining 25 percent comes from residential clients which generates good profitability.Two-thirds of sales come from the aftermarket and one-third comes from new construction, which gives good stability in the order intake.
33 Share of Group sales by region 2010 Emerging markets comprise Africa, Asia, the Middle East, South America and eastern Europe.
34 People make it all happen Our basic convictions and beliefsWe have discipline and a focused approachWe reward result and performanceWe give access to informationWe learn from our mistakesWe never hideWe practice business ethicsWe promote diversityWe grow people through a clear task and the authority to actWe continuously recruit competent and well educated peopleWe give priority to internal recruitmentWe are each in charge of our own professional careerIt is the employees of the ASSA ABLOY Group that will convert our basic convictions and beliefs into action. This fact underlines that employees are our most valuable resource and the foundation for our future success.The culture and success of the company is best developed and carried out by following our basic convictions and beliefs:ASSA ABLOY is a disciplined and focused result-driven company with high business ethics that recognizes and rewards performance by giving a clear task and full authority to act.Individual growth and career development is achieved through challenging tasks, continuous training, trust, feedback, and teamwork. Access to information and the opportunity to ask questions are fundamental for motivation and performance.We continuously recruit with diversity in mind, competent, well-educated and trained people and give priority to internal recruitment when equal competence is available.We learn from our mistakes and we never hide. People within ASSA ABLOY are expected to be in charge of their own professional career.Caption: Camille Smith from Americas Division.