kaba company presentation spring 2015

The Kaba world Company presentation spring 2015

Kaba Focus

Access + Data Systems

Key Systems

Kaba Group

Kaba in Figures

Agenda

Company presentation | Kaba Spring 2015 2

Facts + Figures

Kaba represented by subsidiaries

2014/2015: Kaba products sold by local sales offices, external partners or international sales units

Founding year 1862

EMEA

% of Group sales: 58%

Employees (Ø): 3,019

Asia Pacific



Americas



In CHF million

Half-year 14/15

in %

Sales, net 551.4 100

EBITDA 85.7 15.5

Operating profit EBIT 73.1 13.3

Net profit 50.2 9.2

Kaba represented by subsidiaries

2014/2015: Kaba products sold by local sales offices, external partners or international sales units


Kaba – key to success


Patents: 450

Divisions: 4

Over 150 years of innovation

Global presence in 60 countries

For Kaba, the customer is at the center of everything.

We offer our customers innovative solutions and first-class services for the protection of people and property.

We are there for our customers all over the world, and we are passionate about exceeding their expectations.


«Beyond security»

Tagline for security

We offer our customers more than security solutions

We support our customers to simplify their organization and to improve efficiency

We seek personal, trusting, long-term partnerships with our customers


A clear strategy to achieve goals

Innovation leadership for Access + Data Systems and cost leadership for

Key Systems

Our strategy for profitable growth is based on two pillars:

Growth

– Investment in products and markets support organic growth

– Additional growth through selected acquisitions

Improvement of operational efficiency

Accentuated strategy


Four strong growth drivers (1)

Urbanization

Growing number of major cities

worldwide

Increasing demand for residential

and commercial space

Security follows infrastructure

Growing need for security

In our everyday lives, leisure time

and travel

Security concepts are constantly

adapted

Experience and innovative

products are requested


Four strong growth drivers (2)

Technological innovation

Early identification of

technological trends

Create added value for customers

by being an innovation leader

Increasing prosperity in emerging

markets

Growing prosperity in Asia and

South America

Increasing need for systems that

protect people and property


Kaba – key to success

Customer segments

Office + residential buildings

Financial service providers, public

+ government buildings

Educational institutions

Hotels

Health care

Airports + public transport

Transportation + logistics facilities

Sports + recreation facilities

Retail outlets

Production facilities

Utilities

Key cutters, automotive + lock

industry (OEM)

Customer benefits

Compatibility with many technology platforms

Can be integrated into very different infrastructure

Comfort thanks to easy handling

Meet the highest standards of design

Customer focus thanks to local presence

Sustainable partnership – with customers, suppliers and further environment


Kaba Focus


Key Systems

Kaba Group

Kaba in Figures

Agenda



Kaba provides innovative products, services and solutions for access control and optimal operational processes.



Worldwide market coverage by three divisions

– EMEA (ADS EMEA division)

– Asia Pacific (ADS AP division)

– North and South America (ADS AM division)

Comprehensive range of products, system solutions and services for access control, time + attendance, enterprise data collection, hotel and high-security locks as well as safes

Pioneered the reversible key as well as the pushbutton lock, which remains the standard in the Americas market till today



Cylinders + Locks

Product range of keys, mechanical and mechatronic locking cylinders, digital locking systems and pushbutton locks with PIN code as well as keyless access control systems for residential homes and offices.

Access Management

Extensive product portfolio for integrated access control, from single products to entire security consulting.



Workforce Management:

Kaba provides state-of-the-art applications for recording time, personnel and enterprise data, helping to increase its customers’ organizational transparency, making their processes more efficient and increasing productivity.

Physical Access Systems

Tripod barriers, sensor barriers and security interlocks, such as security revolving doors ensure secure access and efficient people flow e.g. in airports (self-boarding gates), stadiums or museums.



Hospitality Products

Hotel and locking solutions for small-scale properties, resorts and luxury hotels; market leader in North America, worldwide no 2 provider.

Safe Locks

Electronic and high-security locking solutions for correctional institutions, locks for ATMs, products for goods-in-transit and cargo security, safes and strong rooms, high-security door locks, mechanical safe locks.



Highlights ADS EMEA half-year 2014/2015

Organic growth: 9.1%

Profitability: 18.0%

Overall good market development throughout all regions

Investments start to pay off

47% of third-party sales

ADS EMEA

Key Figures

Half-year

14/15

Half-year

13/14

Sales (in CHF

million) 261.4 243.1

Change in

division sales 7.5% 6.5%

EBITDA

margin 18.0% 17.3%

FTE (Ø) 2,413 2,368



Highlights ADS AP half-year 2014/2015


Profitability: 1.7%

– Unsatisfactory productivity at Wah Yuet production site

– Investments in further building-up the newly formed division

Market development good, but starting from small base


ADS AP

Key Figures

Half-year

14/15

Half-year

13/14

Sales (in CHF

million) 74.6 55.7

Change in

division sales 33.9% - 5.1%

EBITDA

margin 1.7% 4.9%

FTE (Ø) 3,603 2,732



Highlights ADS Americas half-year 2014/2015


Profitability slightly lower: 27.1%

– Changes in product mix

– Integration costs for acquisitions

Outstanding growth in hotel locks sector


ADS AM

Key Figures

Half-year

14/15

Half-year

13/14

Sales (in CHF

million) 128.0 109.4

Change in

division sales 17.0% 3.8%

EBITDA

margin 27.1% 28.5%

FTE (Ø) 1,165 887


Kaba Focus


Key Systems

Kaba Group

Kaba in Figures

Agenda


Key Systems

Ilco and Silca offer the most comprehensive range of key duplication and origination equipment in the world.

They can provide the appropriate product to meet practically any requirement in the key business.


Key Systems

Two brands with excellent reputation, operational in 130 countries

Ilco: North America and Mexico

Silca: Europe, Asia, Africa and South America

Advanced Diagnostics: worldwide

Core business key blanks No 1 provider worldwide of key blanks for any type of use and type transponder keys for the automotive industry

Key manufacture World’s no 1 leading provider of mechanical, electronic and semi-industrial machines, key cutting + origination machines


Key Systems

Highlights Half-year 2014/2015


Profitability: 17.9%

– Surge in demand from automotive industry (OEM); not expected to

continue at same rate in HY2

Market share gains in growth markets South America and Asia


Key Systems

Key Figures

Half-year

14/15

Half-year

13/14

Sales (in CHF

million) 105.5 88.5

Change in

division sales 19.2% - 0.6%

EBITDA

margin 17.9% 15.7%

FTE (Ø) 1,548 1,389


Kaba Focus


Key Systems

Kaba Group

Kaba in Figures

Agenda


Kaba Group

Group Organization as of 1 March 2015


CEO Riet Cadonau

ADS Americas

Michael Kincaid, COO

Group Innovation Management

Andreas Häberli, CTO

ADS EMEA

Roberto Gaspari, COO

ADS Asia Pacific

Jim-Heng Lee, COO

CFO Beat Malacarne

Group Services Hans-Jürg Roth

Key Systems

Stefano Zocca, COO

Executive Committee as of 1 March 2015


Human Resources (1)

The performance and the passion of our employees are the key to Kaba’s success.

We do everything to attract, retain and develop the best people in a working environment with global reach.


Human Resources (2): A committed employer

Shared understanding, shared values

The Kaba Vision, the Kaba Principles, Directives, Guidelines and the Code of Conduct define our framework for professional behavior.

Long-term employee development

Kaba provides professional development opportunities tailored to employees’ functions and skills:

The security industry is driven by innovation. Continuous professional development, including technical training, is essential. We offer this to our employees, suppliers, distributors and customers.

We strongly believe in practice-based professional development, which is why we are actively committed to apprentice training.

We are passionate about talent development and our related training programs – because of the promise it holds for you and for us!

Our new Kaba Advanced Management Program and the Senior Management Meetings bring together selected senior managers from all business areas and regions to model and work on the Kaba way of doing business and current as well as strategic challenges.


The seven Kaba Principles

These are our corporate values.

They are valid for all associates of Kaba worldwide.

The Kaba Principles are the common ground on which we operate. They are the foundation on which we take decisions, but also how we collaborate among ourselves and how we approach the needs of our clients.

They are a measuring stick for professional work and customer-focused cooperation.


Sustainability (1)

For Kaba, sustainability means acting responsibly – on an economic, ecological and social level – for the sake of future generations.

This commitment is backed by the company’s more than 150-year history of success.


Sustainability (2)

Sustainability as a corporate value

Kaba Group reports in a transparent reporting systematically about their efforts in sustainability.

The aim is clear: getting better. Sustainability should be embedded more strongly into the management system and shape all areas of the company’s operations.

Kaba Group sees itself as a part of a wider society and takes its responsibility for sustainability seriously. This contains development of new products, in the production, with employees and relationships with partners.

www.kaba.com/sustainability


Kaba Focus


Key Systems

Kaba Group

Kaba in Figures

Agenda


Kaba in Figures

Share Symbol: KABN

Traded at SIX Swiss Exchange

* Starting from the half-year under review, items affecting comparability are no longer shown separately in the income statement. Further, the preparation of the income statement was switched from the "expense by nature" to the "expense by function" method. Figures for the previous financial period have been restated accordingly.

In CHF million HY1

2014/2015 HY1

2013/2014

Net sales 551.4 480.9

EBITDA 85.7 74.4

EBITDA margin 15.5% 15.5%

EBIT 73.1 62.5

EBIT margin 13.3% 13.0%

Net profit 50.2 44.0

Earnings per share in CHF 13.1 11.6


Thank you very much

for your attention

This information contains certain forward-looking statements including, but not limited to, those using the words “believes”, “assumes”, “expects” or formulations of a similar kind. Such forward-looking statements are made on the basis of assumptions and expectations that the Company believes to be reasonable at this time, but may prove to be erroneous. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks, uncertainties and other factors which could lead to substantial differences between the actual future results, the financial situation, the development or performance of the Company or the Group and those either expressed or implied by such statements. Such factors include, but are not limited to:

competition from other companies,

the effects and risks of new technologies,

the Company’s continuing capital requirements,

financing costs,

delays in the integration of acquisitions,

changes in the operating expenses,

currency and raw material price fluctuations,

the Company’s ability to recruit and retain qualified employees,

political risks in countries where the Company operates,

changes in applicable law,

and other factors identified in this publication.

Should one or more of these risks, uncertainties or other factors

materialize, or should any underlying assumption or expectation

prove incorrect, actual outcomes may vary substantially from

those indicated. In view of these risks, uncertainties or other

factors, readers are cautioned not to place undue reliance on such

forward-looking statements. The Company accepts no obligation

to continue to report or update such forward-looking statements

or adjust them to future events or developments. It should be

noted that past performance is not a guide to future performance.

Please also note that interim results are not necessarily indicative

of the full year results. Persons requiring advice should consult an

independent adviser. This communication does not constitute an

offer or an invitation for the sale or purchase of securities in any

jurisdiction.

Kaba®, Com-ID®, Ilco®, La Gard®, LEGIC®, SAFLOK®,

Silca®, etc. are registered trademarks of the Kaba Group.

Due to country-specific constraints or marketing considerations,

some of the Kaba Group products and systems may not be

available in every market.

Disclaimer


Satisfied customers are the best performance indicator

Consolidated income statement

Further slides


Satisfied customers are the best performance indicator

A multitude of customers put their trust in Kaba for years. Accor Group Hotels, Aéroports de Paris, Airbus, Air Liquide, Aldi, Alibaba Group, Arnott’s Biscuits, Amsterdam Arena, Arena Ciudad de

México, Ariston Thermo SpA, Armaguard, Astana Stadium, Auchan, Audi, Australian Government Department of Foreign Affairs and Trade,

Australian Turf Club, Bank of America, Banque de France, BASF, Berg Isel Wintersports Stadium, BMW, Bombardier, Bouygues, Brinks,

British Telecom, Budapest Airport, Bunnings, C&A, Camargo Correa, Capitol tower, Carlton Hotels, Carrefour, Castrol, Changi Airport

Singapore, Chevron, China Central Television Station, China Mobil Telecom, City Developments Limited Singapore, Coca-Cola, Cour des

Comptes Paris, Deutsche Bank, DHL, Do It Best Company, Dubai Municipality, EADS, Eaton Corporation, EDF (Eléctricité de France), EdR

Real E-on, Estate Investment Trust, Emmi, European Parliament, Fenway Sports Group, FH Joanneum, Ford Motor Company, Forest City

Enterprises, Fraport, Firboi, Fronius International GmbH, Fundación Parque Científico de Madrid, G4S, Gardens by the Bay Singapore,

Gazprom, General Motors, Haliburton, Hager, Harrods London, Honda Motor Company, Hong Kong Airport Authority, Hôpitaux de Paris,

Hospital Clínico San Carlos, Hotel Four Seasons, Hotel Ritz-Carlton, Hotel Le Meurice Paris, Hotel Le Peninsula, Houses of Parliament,

HSBC, Hungarian House of Parliament, IKEA, JPMorgan Chase, Linfox, Loacker AG, London Airports, L’Oréal, Lot G, Lufthansa, Madrid

City Council, Manchester Airport, Marfrig, Marina Bay Financial Center Singapore, Marriott Hotels, Master Lock Company, McCarran

International Airport Las Vegas, Melbourne Racing Club, Merck, Metro de Madrid, Mister Minit, Mitre 10, MSC, MTR Corporation, Munich

Airport, Nanyang Technological University Singapore, National Australia Bank, Nike, Nissan Group, Novartis Pharma, Odebrecht, Olympia

Stadium Berlin, Otis, OUE, Paks Nuclear Power Plant, Palais Coburg Vienna, Petroliam Nasional Berhad Malaysia, Poste Italiane, Premier

Inn (Whitbread PLC), Raizen, RCT, Renault, Resorts World Sentosa, Roche, Royal Air Force, Russian Central Bank, RWE, Sanofi, Schaeffler,

Sepang F1 International Circuit, Shenyang Metro OCC, Siemens, Singapore Customs, Singapore Mass Rapid Transit, SJ (Swedish Railways),

Sony Computer Entertainment Inc., Spar, Stade de France Paris, Swiss Federal Railways, Swiss National Bank, Bank Societe Generale,

Sydney Ferries, Taiwan Semiconductor Manufacturing Company Ltd., Tan Son Nhat International Airport Vietnam, Telefónica, Tour Eiffel,

Tower 3 KLCC, True Value Company, UOA Bangsar, United Airlines, University Clinic Munich, University of Constance, University of York,

University of Zurich, University Pierre et Marie Curie Paris, Uzbekistan Temir Yo’llari (Uzbek National Railway), Vattenfall, Verizon, Victoria

Racing Club, Volkswagen Group, Walgreens, Wells Fargo, Westfields, Woolworths (Australia), YAS Marina F1 Circuit, Yum! Brands, Zurich

Airport and many more.




in CHF million HY1 2014/2015 % HY1 2013/2014 %

Net sales 551.4 100.0 480.9 100.0

Costs of goods sold - 308.1 - 55.9 - 267.7 - 55.7

Gross margin 243.3 44.1 213.2 44.3

Other operating income, net 3.4 0.6 3.3 0.7

Sales & marketing - 90.6 - 16.4 - 82.9 - 17.2

General administration - 56.4 - 10.2 - 47.4 - 9.9

Research & development - 26.6 - 4.8 - 23.7 - 4.9

Operating profit (EBIT) 73.1 13.3 62.5 13.0

Financial result, net - 4.2 - 0.7 - 2.9 - 0.7

Income taxes - 18.7 - 3.4 - 15.6 - 3.2

Net profit 50.2 9.2 44.0 9.1

Operating profit before

depreciation (EBITDA) 85.7 15.5 74.4 15.5

Earnings per share in CHF 13.1 11.6




in CHF million HY1 ended 31.12.2014

FY ended 30.06.2014

HY1 ended 31.12.2013

Total current assets 465.8 445.2 434.7

Tangible assets 165.8 156.8 154.8

Intangible assets 23.5 18.9 13.2

Other non-current assets 27.5 30.0 27.7

Total assets 682.6 650.9 630.4

Current liabilities 368.5 259.8 276.1

Non-current liabilities 65.4 67.8 64.6

Total liabilities 433.9 327.6 340.7

Equity 248.7 323.3 289.7

Equity ratio 36.4% 49.7% 46.0%





FY ended 30.06.2014

HY1 ended 31.12.2013

Net cash from operating activities 33.0 105.0 42.6

Net cash used in investing activities - 117.5 - 69.0 - 40.1

Free cash flow - 84.5 36.0 2.5

Net cash flows from financing

activities 60.3 - 93.4 - 52.7

Increase (decrease) in cash - 25.3 - 61.8 - 57.2

Cash at end of period 55.2 80.5 85.1

Operating cash flow margin1) 6.0% 10.5% 8.9%


1) Net cash from operating activities/net sales





FY ended 30.06.2014

HY1 ended 31.12.2013

Net liquidity 93.0 - 35.4 - 6.8

EBITDA 85.7 154.5 74.4

Gearing 0.6 - 0.2 - 0.1

-150

-100

-50

0

50

100

150

12/2014 12/2013 12/2012

Cash and cash equivalents

Debt

Net debt/Net liquidity

kaba company presentation spring 2015

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