Specialist
Former executive at Assa Abloy Global Solutions AB
Agenda
- Demand across key end markets
- Commercial and residential markets including trends and dynamics
- Assa Abloy’s (STO: ASSA-B) pricing dynamics vs peers
- Investment strategy, focusing on organic and inorganic growth
- Geographical exposure, including in core regions
Questions
1.
How would you assess Assa Abloy’s sales performance across the Entrance Systems segment?
2.
You mentioned a lot of the acquisitions that have taken place since 2002, which have allowed the Entrance Systems segment to grow. How is Assa Abloy’s management dealing with the companies acquired, in terms of autonomy of operations?
3.
You mentioned the Entrance Systems segment having a high growth prospect. Can the 37% growth in Q3 2022 be sustained or improved upon for full-year 2022 and into Q1 2023?
4.
You mentioned the custom solutions within Assa Abloy’s Entrance Systems. How do these compare to competitors such as Allegion and Dormakaba?
5.
You mentioned the residential market being particularly strong within the North America region. What are your thoughts on the strong US residential market demand in the medium-to-long term? This is related to the residential segment within the entrance division. Why are we seeing a strong demand from the US residential market? What is your outlook for the strength of the US residential market in the medium-to-long term?
6.
You mentioned that Assa Abloy, through the announced acquisitions, can significantly increase its presence within the US residential market. How much market share can the company realistically gain if the two acquisitions were to go through?
7.
You talked about the service segment within the Entrance Systems division being a substantial contributor, saying about 25% of revenue comes from that segment. Do you expect an uptick in service solutions in the short-to-medium term? How much growth can the service segment offer YoY?
8.
Are you confident of Assa Abloy’s ability to secure the required technicians for the service segment?
9.
What is your growth outlook for the Entrance Systems division in 2023?
10.
Can the operating margin of 15.7% be sustained into Q1 2023?
11.
In Q3 2022, organic sales increased by 19% for the Global Technologies division. How would you assess Assa Abloy’s operational execution as it relates to citizen ID, identification technology and physical access control?
12.
What is your growth outlook for Global Solutions in the short-to-medium term?
13.
How would you assess Assa Abloy’s competitive positioning within the identity and access solutions space?
14.
How can we assess Assa Abloy’s pricing strategy as it relates to smart locks?
15.
Regarding particular regions such as Asia, will South Korea continue to lead the adoption of smart locks? Can the greater-than-90% penetration be sustained in the short-to-medium term?
16.
What is your pricing outlook for smart locks as we head into 2023? Assa Abloy quoted a 6% increase for Q3 2022, so do you expect it to remain around that same level for 2023?
17.
Which factor – gasoline prices or customer preference – do you think plays a bigger role in Assa Abloy’s pricing strategy?
18.
How would you assess Assa Abloy’s operational activity across the European market?
19.
Europe contributed 34% to Assa Abloy’s global sales, as reported in the 2022 capital markets day. Can that be increased in 2023?
20.
Which division offers the best growth opportunity within the European market for Assa Abloy?
21.
Reinforcing the growth opportunities available from Global Solutions, what opportunities are on offer as it relates to cloud-based solutions? How would you assess the growth potential within cloud-based solutions for the European market?
22.
How would you assess Assa Abloy’s M&A strategy in terms of focus on size, particular sectors or product offerings?
23.
What are the biggest risks facing Assa Abloy as we head into 2023?
