ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
© ASSA ABLOY. All rights reserved
ASSA ABLOY Leading the future Capital Markets Day 2017
Johan Molin, CEO Carolina Dybeck Happe, CFO
© ASSA ABLOY. All rights reserved
Agenda
1. Introduction - ASSA ABLOY 2017
2. Finance – Overview
3. Strategy - Our Road to the Future
4. Leading the Future
2
© ASSA ABLOY. All rights reserved
Good industry to be in!
Increased demand for security
Urbanization & increased wealth
Shift to new technologies
Sustainable buildings
Change of applications and codes
3
Trends create underlying strong demand
© ASSA ABLOY. All rights reserved
ASSA ABLOY Solid market position
Leading brands
Large installed base
Strong channel position
Large specification team
4
Strong barriers to entry
© ASSA ABLOY. All rights reserved
Good sales and customer composition
5
Residential
End users
25%
75%
Commercial and institutional
New construction
Recurring business
33%
67%
Aftermarket
Stable sales and profit
© ASSA ABLOY. All rights reserved
ASSA ABLOY divisions
6
Mech & elmechlocks, cylinders &
security doors
Electronic accessand identity
Entrance automation
Americas24%
EMEA23%
Asia Pacific11%
Global Technologies(HID and Hospitality)
ASSA ABLOY Entrance Systems
Product offering Organization % of Group Sales
58%
28%
14%
12 months until Sept. 2017
© ASSA ABLOY. All rights reserved
January - September 2017in brief
Good organic growth, +4%
• Strong growth in Global Tech
• Good growth in EMEA, Americas and
Entrance Systems
• Flat APAC, despite weak China
• Continued good development for smart
door locks and electro-mechanical solutions
17 acquisitions done, +4%
• Acquired annualized sales 2,800 MSEK
7
© ASSA ABLOY. All rights reserved
January - September 2017 figures in summary
Sales SEK 56,028 M +8%
• 4% organic
• 2% acquired
• 2% currency
EBIT SEK 8,982 M +8%
• Currency effect SEK 167 M
Margin 16.0% (16.1)
EPS SEK 5.63 +8%
8 340
8 982
0
2 000
4 000
6 000
8 000
10 000
12 000
0
10 000
20 000
30 000
40 000
50 000
60 000
Jan-Sep 2016 Jan-Sep 2017
Sales, SEK M EBIT, SEK M
Sales EBIT
8
Sales +8%
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Financial targetsOver a business cycle
9
© ASSA ABLOY. All rights reserved
Sales growth, currency adjusted
45 000
50 000
55 000
60 000
65 000
70 000
75 000
80 000
-10
-5
0
5
10
15
20
25
2012 2013 2014 2015 2016 2017
Organic growth, % Acquired growth, % Sales in fixed currencies, SEK M
10
SEK M%
CAGR 8% last 5 years
Organic 3%Acquired 5%
© ASSA ABLOY. All rights reserved
Acquisitions add further growth
0
2
4
6
8
10
12
14
16
18
20
0
2
4
6
8
10
12
14
16
18
20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD
M&A growth, net, % M&A average growth, %
11
10 years - CAGR 6%
*) M&A growth, net, including divestments.
© ASSA ABLOY. All rights reserved
13
14
15
16
17
18
13
14
15
16
17
18
2012 2013 2014 2015 2016 2017
Quarter Rolling 12-months
Long term target range (average)
Operating margin, %
12
Run rate 16.2%* (16.2) %
*) Excluding China write down SEK 300 M in Q4 and full year 2016 and restructuring items.
Accretion / dilution from 2017 OG, ex APAC* OG APAC* M&A currency12-months +0.4% -0.3% -0.2% +0.1%
© ASSA ABLOY. All rights reserved
Operating profit, SEK M
4 000
6 000
8 000
10 000
12 000
14 000
16 000
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2012 2013 2014 2015 2016 2017
Quarter Rolling 12-months
13
SEK M SEK MRun rate SEK 12,194 M* (11,380) +7%
*) Excluding China write down SEK 300 M in Q4 and full year 2016 and restructuring items.
+66%in
5 years
© ASSA ABLOY. All rights reserved
Global competitors
14
1,1
2,1
2,5*
7,7
0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0
Estimated annual sales 2016, EUR Billions = Sales 2010
3.9 Bn
1.9 Bn
1,8 Bn
1.0 Bn
* Dormakaba, including Stanley Mechanical Security, pro forma
© ASSA ABLOY. All rights reserved
Agenda
1. Introduction - ASSA ABLOY 2017
2. Finance – Overview
3. Strategy - Our Road to the Future
4. Leading the Future
15
© ASSA ABLOY. All rights reserved
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
0
2 500
5 000
7 500
10 000
12 500
15 000
17 500
20 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Quarter Rolling 12-months
Sales development since 2005 Substantial top line improvement
16
Sales +172% since 2005SEK M SEK M
© ASSA ABLOY. All rights reserved
Growth has triggered significant changeASSA ABLOY is fundamentally different compared to 2005
17
41%23%
32%
24%
7%
11%
12%
14%
8%
28%
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
2005 2017 12-months*
Sales per division
Entrance Systems
Global Technologies
Asia Pacific
Americas
EMEA
SEK M
*) Sales for 2017 is rolling 12-months Oct 2016 –Sep 2017.
© ASSA ABLOY. All rights reserved
Growth has triggered significant changeASSA ABLOY is fundamentally different compared to 2005
18
39%23%
36%
31%
6%
8%
11%
15%
8%
24%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2005 2017 12-months*
Operating profit per division
Entrance Systems
Global Technologies
Asia Pacific
Americas
EMEA
SEK M
Exluding Other. *) Operating profit for 2017 is rolling 12-months Oct 2016 –Sep 2017.
© ASSA ABLOY. All rights reserved
13
14
15
16
17
18
13
14
15
16
17
18
2012 2013 2014 2015 2016 2017
Quarter Rolling 12-months
Long term target range (average)
Operating margin, %
19
Run rate 16.2%* (16.2) %
*) Excluding China write down SEK 300 M in Q4 and full year 2016 and restructuring items.
Accretion / dilution from 2017 OG, ex APAC* OG APAC* M&A currency12-months +0.4% -0.3% -0.2% +0.1%
© ASSA ABLOY. All rights reserved
Operating margin (EBIT*) 2010-2017
20
*) Excluding restructuring, currency and China write down Q4 2016.
Not including margin on export from mature markets.
Emerging markets **dilution -1.4%
Mature markets accretion
Entrance Systems dilution -0.8%
ASSA ABLOY Group
6
8
10
12
14
16
18
20
2010 2011 2012 2013 2014 2015 2016 2017Sep12m
ASSA ABLOY Group Entrance Systems
Mature Markets Emerging Markets
© ASSA ABLOY. All rights reserved
Acquisitions first dilute, but give long term leverage
9
17
20
8
13
18
13 12
20
16
13
17
0
10
20
30
40
50
60
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Sales (cumulative), SEK M Sales (annual), SEK M Number of acquistions
21
174 acquisitions since 2006SEK 34 billion in added sales
SEK M
17 acquisitions done 2017
*) Including LOB and August, not consolidated.
© ASSA ABLOY. All rights reserved
Company acquired 2012
22
0
5
10
15
20
25
30
35
40
45
50
0
25
50
75
100
125
150
175
200
225
250
275
2012 2013 2014 2015 2016 2017
Sales EBIT
Five years developmentSales +55%, EBIT +272%
© ASSA ABLOY. All rights reserved
Company acquired 2013
23
0
10
20
30
40
50
60
70
0
25
50
75
100
125
150
175
200
225
250
275
2013 2014 2015 2016 2017
Sales EBIT
Four years developmentSales +35%, EBIT +97%
© ASSA ABLOY. All rights reserved
Company acquired 2013
24
0
5
10
15
20
25
30
35
40
45
0
50
100
150
200
250
300
350
400
450
500
2013 2014 2015 2016 2017
Sales EBIT
Four years developmentSales +30%, EBIT +81%
© ASSA ABLOY. All rights reserved
Company acquired 2012
25
0
20
40
60
80
100
120
140
160
500
525
550
575
600
625
650
675
700
2012 2013 2014 2015 2016 2017
Sales EBIT
Five years developmentSales +17%, EBIT -28%
© ASSA ABLOY. All rights reserved
Company acquired 2012
26
0
20
40
60
80
100
120
0
100
200
300
400
500
600
2012 2013 2014 2015 2016 2017
Sales EBIT
Five years developmentSales +238%, EBIT +220%
© ASSA ABLOY. All rights reserved
Operating margin (EBIT)Effects of recent acquisitions and divestments
ASSA ABLOY Group – no major
impact on reported EBIT, %
• Global Technologies
• Acquisition of Mercury (Nov) & Arjo
• Divestment of AdvanIDe
• Accretion
• Americas
• August (consolidated in late Q4)
• Dilution
• Seasonality
27
© ASSA ABLOY. All rights reserved
Operating margin (EBIT)Effects of recent acquisitions and divestments
Stable EBIT, % - proforma
Adj. EBITA, % - proforma
increases
• More M&A amortization from
SEK 300 M to SEK 500 M/year
15%
16%
17%
18%
12 months 12 months + M&A
EBIT, % Adj. EBITA, %*
28
Adj. EBITA
16.6%*
Adj. EBITA
16.9%*
Pro-forma profitability
Excluding China write down SEK 300 M in Q4 and full year 2016 and restructuring items. Adj. EBITA = EBIT + M&A amortization, %Rolling 12 months figures.
EBIT16.2%
© ASSA ABLOY. All rights reserved
Financial highlights
29
July - September January - September
SEK M 2016 2017 Change 2016 2017 Change
Sales 18,025 18,499 3% 51,809 56,028 8%
- Organic growth* 307 590 3% 1,308 1,956 4%
- Acquired growth 429 373 2% 1,512 1,273 2%
- FX-differences* -176 -488 -2% -810 990 2%
Operating income (EBIT) 3,020 3,080 2% 8,340 8,982 8%
EBIT-margin 16.8% 16.7% 16.1% 16.0%
Income before tax 2,844 2,910 2% 7,782 8,447 9%
Net income 2,122 2,153 1% 5,786 6,250 8%
EPS, SEK 1.91 1.94 1% 5.21 5.63 8%
Operating cash flow 2,830 2,654 -6% 5,846 6,053 4%
* The sales components Organic growth and FX-differences has been restated for 2016. No effect on sales numbers.
© ASSA ABLOY. All rights reserved
Bridge Analysis – YTD 2017
Positive leverage from all divisions, except APAC, +40 bps
Dilution from China/APAC, as expected, -30 bps
Dilution from acquisitions in Entrance Systems, Global
Technologies and EMEA
30
SEK M YTD 2016 Organic Currency Acq/Div YTD 2017
4% 2% 2% 8%
Sales 51,809 1,956 990 1,273 56,028
Operating profit 8,340 371 167 103 8,982
Operating margin, % 16.1% 19.0% 16.9% 8.1% 16.0%
Dilution/accretion 0.1% 0.0% -0.2%
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P&L components have changed but stable margin
Sourcing more direct material
• Short term swings in raw material costs
Lower conversion costs due to efficiency projects
Increased investments in RnD and front sales
31
% YTD 20122017*
12-months Δ
Direct material -34.6% -36.2% -1.6%
Conversion costs -25.9% -24.4% +1.5%
Gross margin 39.5% 39.4% -0.1%
S, G & A -23.4% -23.2% +0.2%
EBIT 16.1% 16.2% +0.1%
*) Sales for 2017 is Rolling 12 Months Oct-Sep
*) Excluding China write down SEK 300 M in Q4 and full year 2016 and restructuring items.
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Target = 100% automation of processes
CAD
General Support Processes
PDM
ProductConfigurator
Order
ManufacturingPurchasing
Logistics, warehouse Shipping
Customer
Suppliers
&
Part
ners
Product development
Seamless Flow
32
22%
43%
0%
20%
40%
60%
2011 2017
E-commerce
7%
28%
0%
5%
10%
15%
20%
25%
30%
2011 2017
PDM
0%
78%
0%
20%
40%
60%
80%
100%
2011 2017
Seamless Production
16%
63%
0%
20%
40%
60%
80%
2011 2017
E-procurement
0%
46%
0%
10%
20%
30%
40%
50%
2011 2017
ERP
© ASSA ABLOY. All rights reserved
Operating cash flow, SEK M
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
2012 2013 2014 2015 2016 2017
Quarter, SEK M Cash rolling 12 months, SEK M EBT rolling 12 months, SEK M
33
Quarter 12 months12 months cash / EBT = 95%*
*) Excluding China write down SEK 300 M in Q4 and full year 2016 and restructuring items.
© ASSA ABLOY. All rights reserved
Gearing % and net debt, SEK M
0
15
30
45
60
75
90
0
5 000
10 000
15 000
20 000
25 000
30 000
2012 2013 2014 2015 2016 2017
Net debt, SEK M Gearing, %
34
Net debt GearingDebt/Equity 53% (57)
Net debt/EBITDA1.9 (2.0)
© ASSA ABLOY. All rights reserved
2,00
3,00
4,00
5,00
6,00
7,00
8,00
0,50
0,75
1,00
1,25
1,50
1,75
2,00
2012 2013 2014 2015 2016 2017
Quarter, SEK Rolling 12 months, SEK
Quarter
Earnings per share, SEK
35
12 monthsYTD EPS +8%
*) Excluding restructuring items of SEK 1,597 M for Q4 and full year 2016.Chart is restated for Stock split 3:1 2015 and excludes cost for restructuring programs in 2013 and 2016.
+66%in
5 years
© ASSA ABLOY. All rights reserved
Agenda
1. Introduction - ASSA ABLOY 2017
2. Finance – Overview
3. Strategy - Our Road to the Future
4. Leading the Future
36
© ASSA ABLOY. All rights reserved
Strategy
37
© ASSA ABLOY. All rights reserved
Our vision – remains unchanged
To be the true world leader, 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
38
© ASSA ABLOY. All rights reserved
Total door opening solutionsSeamlessly connected to the building
39
© ASSA ABLOY. All rights reserved
Market presence
40
1
© ASSA ABLOY. All rights reserved
ASSA ABLOY as Group brand
Leverages local and
global presence
Total door solutions
Product cross fertilization
Reduced operational costs
41
Complementing brands
70% ASSA ABLOY
30%
70%
ASSA ABLOY
© ASSA ABLOY. All rights reserved
Customer focus through segmentation
The segmented approach assures customer focus and
relevance and provides us with a superior
understanding of the customer needs.
42
© ASSA ABLOY. All rights reserved
SpecificationASSA ABLOY leads the industry
Global Specification force
• End-customer specifiers
• Electromechanical specifiers
BIM – Building Information
Modeling
• Configuration and simulation tool
• Architects, contractors, building
consultants & facility managers
Environmental product
declarations automatically
generated
43
© ASSA ABLOY. All rights reserved
Video BIM
44
© ASSA ABLOY. All rights reserved
45
Gødstrup Super Hospital, Denmark
€0.6mproject value
BIM
Solution: ARX Access Control, Master Key System, Architectural Hardware, Door Closers
© ASSA ABLOY. All rights reserved
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Sep 12m
Revenues, SEK M
Emerging markets sales, SEK M
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Sep 12m
Revenues, SEK M
46
SEK M
Share of sales from emerging markets, %. Emerging markets comprise Africa, Asia (ex. Japan), the Middle East, South America and Eastern Europe.
13%
23%
xx%
© ASSA ABLOY. All rights reserved
Latin America growth
47
+103%
1 535
3 349
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2012 2017 Sep 12m
Chart TitleLatin America, Group salesSEK M
+118%
© ASSA ABLOY. All rights reserved
Africa & Middle East growth
48
+103%
1 623
2 468
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2 600
2 800
3 000
2012 2017 Sep 12m
Chart TitleAfrica & Middle East, Group sales
SEK M
+52%
© ASSA ABLOY. All rights reserved
Asia growth, excluding China
2 337
4 149
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
2012 2017 Sep 12m
Chart Title
49
Asia excl. China, Group sales
+78%
SEK M
© ASSA ABLOY. All rights reserved
China growth
50
+103%
4 304
4 978
3 000
3 500
4 000
4 500
5 000
5 500
2012 2017 Sep 12m
Chart TitleChina, Group salesSEK M
+16%
© ASSA ABLOY. All rights reserved
Xinmao
PanPan Yingkou
Tianming
Langfang
HuashengGuoqiang
PanPan Wuxi
PanPan Chengdou
Jiawei
Taizhou
Shenfei
PanPan Changsha
Sanhe
DigiGuli Longdian
ASSA ABLOY in China
55%45%
2014
North South
43%57%
2017
North South
N
S
51
© ASSA ABLOY. All rights reserved
174 acquisitions since 2006 Added sales 34 BSEK
Fully active pipeline
17 acquisitions done in 2017
Acquired annualized sales 2,800 MSEK – added sales 4%
Divestment of AdvanIDe 1,250 MSEK
52
© ASSA ABLOY. All rights reserved
Product leadership
53
2
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Product leadership through innovation
54
Innovation
Our biggest driver for growth
R&D Investments
+200 percent since 2006
2,000 R&D engineers in 2017
Long term competitive
advantage
Continuous innovation
>25% of sales from new products
Benefits Costs Quality
© ASSA ABLOY. All rights reserved
26,6
29,7
30,9
30,0
27,2
21
23
25
27
29
31
33
2013 2014 2015 2016 2017 Sep.
Sales from products launched past 3 years
55
%
Group target
© ASSA ABLOY. All rights reserved
Shared Technologies & Competence Centers Global platforms & focused product units
56
Accentra™
ResidentialSDL
© ASSA ABLOY. All rights reserved
Growing electromechanical market
57
2007 2017 Sep 12 months
34SEK bn
76 SEK bn
48%
19% 24%
27%
18% 27%
Mechanical locks & accessories
Electro-mechanical
Security doors
Security doors
Mechanical locks & accessories
Electro-mechanical
Entranceautoma-tion
9%
28%Entranceautomation
SEK billion 20072017 Sep
12 m Change
Electro-mechanical 8.1 20.2 +149%
Mechanical 16.1 20.8 +29%
© ASSA ABLOY. All rights reserved
14%
19%
67%
Electromechanics drives growthSales excl. Entrance Systems and doors
58
*) Sales for 2017 is Rolling 12 Months Oct-Sep
25%
25%
50%
SEK 24 Billion2007
SEK 41 BillionSept. 2017*
Mechanical locks & accessories
Mechanical locks & accessories
Electro-mechanical
Electro-mechanical
Global Technologies
Global Technologies
Electro-mechanical
share of sales by division, excl. doors 2017*
EMEA 37%Americas 26%
APAC 28%
© ASSA ABLOY. All rights reserved
Average annual organic growth2014 – 2017 YTD*)
0
2
4
6
8
10
12
59
*) Organic growth estimated for Mechanical, El.mech, excl. GT and Security doors.
© ASSA ABLOY. All rights reserved
Accentra – for multi-family housing, vacation rentals, assisted living, etc.
Connected home
60
Yale Smart Living
Digital door viewerDoor bells, alarms
Homedeliveries
© ASSA ABLOY. All rights reserved
Sales development – Smart door locks
Strong sales growth
Acquisition of August adds
market presence in the US
Local standards are critical
61
+103%
0
500
1 000
1 500
2 000
2 500
2012 2017 E
Chart TitleSmart door locks, ‘000 units
+270%
© ASSA ABLOY. All rights reserved
€0.3mproject value
1,700units
Future Park Istanbul, Turkey
Solution: Smart home integration of Yale MonoblockSmart Door Lock
62
© ASSA ABLOY. All rights reserved
Non-residential moving fast into digitalization, connectivity and cloudRecurring revenue >50%
Seos Aperio
CLIQ
63
Virtual ID
© ASSA ABLOY. All rights reserved
Sustainability is a commercial opportunityGlobal expansion of ‘Eco products’
64
Regenerative
door operator
Energy harvesting cylinder
Energy efficient
door system
EcoFlexTM
EcoStrikeTM
© ASSA ABLOY. All rights reserved
Bloomberg European HQLondon, UK
Solution: Fire-rated steel doors, door controls, locks and cylinders
€1.5mproject value
65
© ASSA ABLOY. All rights reserved
3
Cost efficiency
66
© ASSA ABLOY. All rights reserved
Efforts to radically reduce break-even costs
67
Manufacturing
footprint program
Professional sourcing
Lean operations
Value Analysis and Value
Engineering (VA/VE)
Robotization
Seamless Flow
© ASSA ABLOY. All rights reserved
Manufacturing footprint
Status of programs launched 2006-2016
• 77 factories closed to date, 11 to go
• 116 factories converted to assembly, 33 to go
Total personnel reduction
• 12,841 FTE in total since 2006
• 364 FTE in recent quarter
• 1,626 FTE to go for all programs
SEK 1,212 M provisions remain for all programs
68
© ASSA ABLOY. All rights reserved
7%
0%
-12%
3%4%
2% 2%3%
4%
2%
4%
-5%
-10%
-12%
1%
-2%
-4%-5%
-2%-2%
-3%
-1%
-15%
-10%
-5%
0%
5%
10%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD
Growth Employees
Organic growth each year, i.e. excluding acquisitions younger than 12 months, and the corresponding change in total number of employees for the same units.
Efficiency: Organic Growth vs. Headcount
69
63% difference between organic growth and headcount since 2007
© ASSA ABLOY. All rights reserved
ASSA ABLOY GroupAverage employees high-cost vs. low-cost countries
38%
62%
2008
Not restated for acquisitions
46%54%
2017
High cost countries
High cost countries
Low cost countries
Low cost countries
70
© ASSA ABLOY. All rights reserved
Professional sourcingSourcing is strategic & impact is rapidly increasing
Professional sourcing
Integration with R&D process
Standardization
Supplier provides sub systems
Less and stronger suppliers
Category management
Supplier agreements
Should cost process
Audited suppliers
0
5 000
10 000
15 000
20 000
25 000
30 000
2005 2017 Sep 12m
Material value
71
+283%
0
2 000
4 000
6 000
8 000
10 000
12 000
2005 2017 Sep 12m
Indirect spend value
2005 2016
+101%
© ASSA ABLOY. All rights reserved
Lean implementationAPAC example
72
© ASSA ABLOY. All rights reserved
Value Analysis and Value EngineeringSavings from VA/VE
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012 2013 2014 2015 2016 Target2017
73
MEUR
160 MEUR in 9
years
© ASSA ABLOY. All rights reserved
Target = 100% automation of processes
CAD
General Support Processes
PDM
ProductConfigurator
Order
ManufacturingPurchasing
Logistics, warehouse Shipping
Customer
Suppliers
&
Part
ners
Product development
Seamless Flow
74
22%
43%
0%
20%
40%
60%
2011 2017
E-commerce
7%
28%
0%
5%
10%
15%
20%
25%
30%
2011 2017
PDM
0%
78%
0%
20%
40%
60%
80%
100%
2011 2017
Seamless Production
16%
63%
0%
20%
40%
60%
80%
2011 2017
E-procurement
0%
46%
0%
10%
20%
30%
40%
50%
2011 2017
ERP
© ASSA ABLOY. All rights reserved
Agenda
1. Introduction - ASSA ABLOY 2017
2. Finance – Overview
3. Strategy - Our Road to the Future
4. Leading the Future
75
© ASSA ABLOY. All rights reserved
Uniqueness through differentiation gives long term lasting value creation
76
A differentiated value propositionBest gets copied
Front end, catch maximum value
– security is not transparent
Uniqueness through constant innovation
and differentiation
Selective value chain – Focus on core
competencies
76
© ASSA ABLOY. All rights reserved
Achieve 10% annual growth with profitability between 16-17%
Leading the futureUniqueness through differentiation
Market presence
• Brand, segmentation, specification
• Emerging markets
• Acquisitions
Product leadership through innovation
• Electro mechanics, connected homes and smart door locks
• IOT, Authentication, virtualization and connectivity
• Recurring revenue, service, software, cloud, IDs
• Sustainable products
Cost efficiency
• Manufacturing footprint program
• Professional sourcing, lean operations, VA/VE
• Seamless Flow - automation
77
© ASSA ABLOY. All rights reserved
We are a true world leader
78
Operating in a growing market driven by improved wealth, urbanization and a strong trend towards
increased safety and security
© ASSA ABLOY. All rights reserved
www.assaabloy.com
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