Gunnebo Q3 2018 - External · 2019-08-19 · Gunnebo Group Q3 2018 23 October 2018 The Group in Brief–ContinuingOperations 4,900 MSEK Turnover 2017 4,400 No of Employees 25 Sales
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Business Unit Cash Management Q3 2018 Continuing Operations
• 21% of Group Sales (YTD)
• Sales increased by 2% in the third quarter
• Strong sales development in the Middle East due to major deliveries to a regional CIT company
• Good levels of sales of the closed cash management system, SafePay, in the Nordics
• In region Americas, sales in Brazil also showed growth. Sales in the US developed more weakly, mainly due to continued delays in investments in bank projects
• In Asia-Pacific, Cash Management is still a small part of sales. Development was good in Australia.
• Germany: Retailer places major order for Gunnebo's cashdeposit solutions, to be rolled out over the coming five years
• Sweden: Energy company ST1 with petrol stations nationwideinvests in SafePay closed cash management system
• Netherlands: Continued good order intake from CIT companyusing cash management solutions from Gunnebo to optimiseits retail offering
• Australia: Major retailer signs two-year service contract for itsinstalled base of cash management solutions
• Middle East: Large CIT company in the Middle East continuesto place orders for Gunnebo’s cash management solutions tostreamline the cash process for its retail customers
• Brazil: Gunnebo Cash Management solutions continueto grow in retail with a positive kick-off in the petrol stationsegment
Business Unit Cash Management – Q3 2018 Highlights
• Switzerland: Several public high-risk sites in Genevaincrease entrance security with solutions from Gunnebo
• South Korea: The performance of Gunnebo’s airportgate solutions makes Gunnebo stand out from thecompetitors and wins an order for ImmSec to beinstalled in two airports in South Korea
• China: Hangzhou Metro Line No.5 in China installsGunnebo’s MFL for flow control and fare collection
• Middle East: Gunnebo’s high-security range foroutdoor perimeter protection, elkosta, is specified insecurity projects for critical sites in Saudi Arabia
• India: Business for metro gates for metro projects isdeveloping well
• US: Good initial success in several airport projects
Business Unit Entrance Control – Q3 2018 Highlights
• Mexico: Banamex invests in upgrading its branch network acrossthe country
• Canada: Retail chain North West turns to Gunnebo to upgrade lossprevention solutions in its stores nationwide
• India: Sales of fire equipment marketed and sold under theMinimax brand continue to develop well
• Brazil: DPSP Group shows continued trust in Gunnebo byinstalling EAS solutions in more than 80 stores during the quarter
• Brazil: An important deal for Electronic Article Surveillance andCCTV equipment for 16 supermarkets, increases Gunnebopartnership with GPA, Brazil’s largest retail and distribution chain
• Spain: As part of the increased focus on the main Business Units,a small local alarm monitoring business for consumers has beendivested
Business Unit Integrated Security – Q3 2018 Highlights
• Local integrator business – not core forthe future of Gunnebo
• Scope: French sales company,production facilities in Baldenheimand Bazancourt, and the Belgian andLuxembourg business
• 2017 turnover: MEUR 117
• 2017 no. of employees: 930
• In the third quarter, the ongoingdivestment has been subject to workscouncil consultation, which hassuccessfully been completed. Fullclosing is expected to take place inquarter four after antitrust clearance.
“The planned divestment of the French, Belgian and Luxembourg integrator business is in line with our strategy to become a more product-focused company. With OpenGateas the owner, this business will have the right foundation to further develop its business in line with its own clearly defined agenda.”
Henrik Lange, President & CEO
Update: Business in France, Belgium and Luxembourg Under Divestment
• Net sales amounted to MSEK 1,303 (1,164),sales growth was 6%
• EBITA amounted to MSEK 92 (85) and theEBITA margin was 7.1% (7.3)
• EBIT amounted to MSEK 88 (63) and theEBIT margin was 6.8% (7.2)
• EBIT includes the sales of monitoringbusiness in Spain (MSEK 21) and a one timeimpairment of intangible asset (MSEK -11)
• Net profit for the period for the continuingoperation was MSEK 56 (25). Including thediscontinued operation net profit for theperiod, was MSEK 11 (16)
• Net sales for discontinued operations inthe third quarter amounted to MSEK 242(245)
• EBIT related to the operations amountedto MSEK -41 (-14) and net result fromoperating activities amounted to MSEK -45 (-9)
• The loss on the divestment recorded wasMSEK -609 YTD
Gunnebo has signed an offer from global private equity firm OpenGate Capital to acquire Gunnebo’s business in France, Belgium and Luxembourg. The divestment has been subject to works council consultation, which has successfully been completed. Full closing is expected to take place in quarter four after antitrust clearance.
The ongoing divestment includes the French sales company, production facilities in Baldenheim and Bazancourt as well as the Belgian and Luxembourg business.
2018 2017 2018 2017 2017MSEK Q3 Q3 YTD YTD Full year
Net sales 242 245 768 798 1,130
EBIT from operating activities -41 -14 -94 -8 3
Result from operating activities -45 -9 -85 -4 8
Loss on divestment - - -609 - -
Net profit/loss from discontinued operations -45 -9 -694 -4 8
Total assets of disposal group held for sale 431 975 431 975 1,021
Total liabilities of disposal group held for sale 564 519 564 519 546
• Definition: EBIT excluding IAC andacquisition related amortization andimpairments. For the Business Units, nocosts for Group functions are allocated.
• Target is to reach a 10% EBITA throughfocusing on the main Business Units,driving both topline growth and marginimprovements.
• EBITA target defined by Business Unitwill allow dedicated focus on drivingimprovements.
• Increase from 30-40% of net profit to30-50% will ensure good direct return.
• The Business Unit focus will giveincreased profitability enough to bothreinvest in our business and alsoincrease the dividend level to theGroup’s shareholders.
• By ensuring a Business Unit focus theGroup will improve its profitability andthus dividends over time.