capital market day 2016 ennepetal/germany… · capital market day 2016 ennepetal/germany, 5 april...

CAPITAL MARKET DAY 2016 ENNEPETAL/GERMANY, 5 APRIL 2016

Riet Cadonau, CEO Bernd Brinker, CFO Beat Malacarne, CIO Dieter Sichelschmidt, COO Access Solutions DACH

Disclaimer

This communication contains certain forward-looking statements, e.g. statements using the words "believes", "assumes", "expects", or formulations of a similar kind. Such forward-looking statements are based on assumptions and expectations which the company believes to be well founded, but which could prove incorrect. They should be treated with appropriate caution because they naturally involve known and unknown risks, uncertainties and other factors which could mean that the actual results, financial situation, development or performance of the company or Group are materially different from those explicitly or implicitly assumed in these statements. Such factors include:

The general economic situation

Competition with other companies

The effects and risks of new technologies

The company's ongoing capital requirements

Financing costs

Delays in the integration of acquisitions

Changes in operating expenses

Fluctuations in exchange rates and raw materials prices

Attracting and retaining skilled employees

Political risks in countries where the company operates

Changes to the relevant legislation

Realization of synergies

Other factors named in this communication

If one or more of these risks, uncertainties or other factors should actually occur, or if one of the underlying assumptions or expectations proves incorrect, the consequences could be materially different from the assumed ones. In view of these risks, uncertainties and 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. The Company emphasizes that past results and performances cannot lead to conclusions about future results and performances. It should also be noted that interim results are not necessarily indicative of year-end results. Persons who are unsure about investing should consult an independent financial advisor.

This document constitutes neither an offer to sell nor a call to buy securities of dorma+kaba in any legal system.

Kaba®, DORMA®, Com-ID®, Ilco®, La Gard®, LEGIC®, SAFLOK®, Silca® etc. are registered brands of dorma+kaba Group. Country-specific requirements or business considerations may mean that not all dorma+kaba Group products and systems are available in all markets.

2 5 April 2016 Capital Market Day 2016 @ dorma+kaba

Agenda

An industry leader emerges Riet Cadonau

Financials Bernd Brinker

Post-Merger Integration Beat Malacarne

DORMA product portfolio Dieter Sichelschmidt

Factory Tour


A unique value proposition

4

An industry leader emerges

Excellent strategic fit Widely complementary

product portfolios, geographic complementary

in Americas and Asia Pacific, complementary within the

construction cycle, innovation power

Value enhancement Remarkable growth

opportunities, significant synergy potential, value

creation for all stakeholders

Top 3 market position dorma+kaba transformational transaction will drive industry consolidation

Sustainable future Two successful, complementary industry leaders that are stronger together

5 April 2016 Capital Market Day 2016 @ dorma+kaba

The Executive Committee as of 1 September 2015


Michael Kincaid COO

AS AMER

Jim-Heng Lee

COO AS APAC

Dieter Sichelschmidt

COO AS DACH

Stefano Zocca COO

Key Systems

Roberto Gaspari

COO AS EMEA

Christoph Jacob COO

Movable Walls

Jörg Lichtenberg

CMO

Andreas Häberli CTO

Beat Malacarne

CIO

Bernd Brinker CFO

Riet Cadonau

CEO


Environmental factors – growth drivers

Capital Market Day 2016 @ dorma+kaba 6 5 April 2016


Urbanization Security follows infrastructure Increasing numbers of mega cities

Increasing wealth in emerging markets and changing Demography Leisure traveling increases worldwide Wealth wants to be secured and people protected World population in mature countries is aging, affecting building requirements

Increasing need for security Globalization Increasing geopolitical risks

Technological progress at a higher pace Digitization, e.g. Connectivity (Internet of Things and Cloud) Changing Business Models, e.g. “Software as a Service”

Environmental factors – market dynamics



Competition The industry keeps consolidating Agile niche players fill promising segments

Customers & Partners Customer and partner specific demands are heterogeneous Our industry starts to enter alliances

Governments Local legislations like import duties and market requirements drive adequate presence and

production footprint Local norms influence product offering

Building blocks of our “Strategy Pyramid”

Mission Values

Am- bition

Strategy “Where to play”,

“How to win”

Strategic priorities (e.g. for capital and people allocation)

Major initiatives (e.g. Core Projects, Value Driver Initiatives)



Strategic focus



Lead in innovation for superior

customer value

Portfolio management and disciplined M&A

Have the right people at the right

place

Superior offering for needs along life cycle

Strengthen foundations: enhancing global brand power and sustainability

Expand presence in markets + verticals

Drive enterprise excellence

along value chain

Access Solutions

DACH

Access Solutions

AMER

Access Solutions

APAC

Access Solutions

EMEA

Movable Walls

Key Systems

Operating Model: Each AS segment with two responsibilities



The Access Solutions (AS) segments have a dual responsibility:

Sales and Services revenues / profits within their territory

Global business ownership for the assigned product clusters across segments

Global business ownership for eight AS product clusters

11

DACH AMER APAC EMEA

Master Key Systems (MKS)

Electronic Access & Data (EAD)

Door Hardware (DHW)

Interior Glass Systems (IGS)

Lodging Systems (LGS)

Services

(SVC)

Entrance Systems (ENS)

Safe Locks (SAL)

Local Products (LOP)




MW KS

Capital Market Day 2016 @ dorma+kaba


* For detailed information on product clusters see appendix

Global product clusters* in order to attain global reach and subsequently profitable

growth

5 April 2016

Global Product Cluster – Example Door Hardware

12


The Global Product Cluster Door Hardware is assigned to AS DACH

Strategically steered by AS DACH (e.g. Product Development and Supply Chain)

Operationally managed locally (e.g. day-to-day management of the factory in Singapore by AS APAC)

Global Business Owner (GBO) drives and facilitates business

Responsible for a global product cluster, which includes product management, lifecycle management and global reach of distribution in order to achieve profitable growth.

Global Business Owner (GBO): Drives and Facilitates business Reports to a COO

supplier sales raw material

production of door closers

distribution

Singapore China Malaysia Germany

customer


Role of the CTO


Innovation classifications sustaining efficiency disruptive

(= CTO task)

Dr. Andreas Häberli Chief Technology Officer (CTO)


development and lead of innovation- and technology management

Innovation portfolio driven by market trends and customer requirements, technological trends and corporate strategy

Intellectual property management and product design as part of innovation

Commitment to increase R+D investments to leverage on the opportunities of dorma+kaba and the digital transformation of our industry - target to invest 4-5% of sales

Role of the CMO


Jörg Lichtenberg Chief Manufacturing Officer (CMO)

Group Procurement Group Supply Chain Management


Optimizing the supply chains, as a consultant and sparring partner, in and across segments, and accomplishing the most efficient global manufacturing footprint

Full responsibility to source and contract the best suppliers worldwide

Agenda





Factory Tour


Key figures HY1 2015/2016

16

in CHF million

1 2 3 4 4+6

2015/2016 reported1)

6+6 2015/2016 pro forma2)

6+6 2014/2015 pro forma2)

Change 2 vs. 3

Net sales growth 947.6 1135.5 1106.6 +2.6% Organic growth* +1.8% Acquisition growth +0.8% Currency effect on sales -8.1% Currency effect on EBITDA

-12.2

EBITDA margin 15.3% 14.6% 13.7% Net profit 57.4 67.1 94.8 -29.2% Earnings per share (in CHF)

7.3

1) Reported: Former Dorma Group consolidated as of 1st September 2015 – former Kaba Group 6 months 2) Pro forma: Former Dorma Group and former Kaba Group both 6 months – previous year at current exchange rates *) organic growth = growth in local currency, excl. acquisitions

Highlights HY1 2015/2016 and Guidance FY 2015/2016


Segment performance HY1 2015/2016

17

Total sales 4+6


(in CHF million)

Total sales 6+6

2015/2016 pro forma2)

(in CHF million)

Total sales 12+12

2014/2015 pro forma2)

(in CHF million)

EBITDA margin 4+6


EBITDA margin 6+6

2015/2016 pro forma2)

EBITDA margin 12+12

2014/2015 pro forma2)

AS AMER 218.2 255.6 491.9 22.8% 20.3% 19.1%

AS APAC 148.0 186.4 377.1 8.4% 9.5% 8.7%

AS DACH 310.0 386.1 776.2 18.3% 18.9% 17.6%

AS EMEA 298.8 357.8 711.7 9.3% 7.9% 7.8%

Key Systems3) 99.3 99.3 206.4 16.1% 16.1% 17.1%

Movable Walls4) 38.5 56.9 109.0 12.0% 11.5% 9.0%

Net sales Group5) 947.6 1135.5 2249.6 15.3% 14.6% 13.5%

1) Reported: Former Dorma Group consolidated as of 1st September 2015 (4 months) – former Kaba Group 6 months (4+6); 2) Pro forma: Former Dorma Group and former Kaba Group both 6 months (6+6) respectively both 12 months (12+12); previous year at current exchange rates 3) Reported = Pro forma: Former Kaba Group 6 months respectively 12 months – former Dorma Group is not active in this segment 4) Reported: Former Dorma Group 4 months (4+6); Pro forma – Former Dorma Group 6 months (6+6) respectively 12 months (12+12) ; former Kaba Group is not active in this segment 5) Intercompany sales are eliminated



New operating model – Impact on segment margins

18

Global product clusters are assigned to specific segments along with the relevant production facilities, regardless of geographical location (intercompany sales). dorma+kaba predominantly allocates profitability to production facilities and less to regions were third party sales are generated.



* MMA: Mediterranean/Middle-East/Africa; NEE: North & East Europe

These effects impact profitability of the segments, e.g. AS DACH and AS EMEA:

AS EMEA is comprised of the former ADS EMEA from Kaba and a variety of European countries from former Dorma which were either part of MMA or NEE*.

Major plants of former Dorma in Singapore, Suzhou (China) and Melaka (Malaysia) were allocated to AS DACH (Product Cluster Door Hardware)

Therefore, the former Dorma business contributes positively to the topline of AS EMEA but is diluting on its EBITDA margin

Guidance for financial year 2015/2016

19

* in local currency

Statement made on 9 September 2015

Guidance for FY 2015/2016 (7 March 2016)

Market development Americas: good Europe: positive by trend Asia and other emerging markets:

flat, no change in current fragile environment

Americas: good Europe: moderate Asia and other emerging markets:

flat, no change in current fragile environment, China even weaker

Organic growth* (pro forma basis)

- Around 6+6-half-year performance +/- 0.5 percentage points (provided no change of current economic situation)

EBITDA margin (pro forma basis)

- Around 6+6-half-year performance +/- 0.5 percentage points (provided no change of current economic situation)



Post-Merger Integration – The road to our targeted profitability

20

Post-merger integration and Guidance FY 2018/2019


Targeted EBITDA 18% margin for fiscal year 2018/2019; yearly continuous improvement expected

Integration costs (one-off) somewhat above CHF 70 million recognized in 2015/2016 (CHF 34.7 million in HY1 2015/2016)

FY 2015/2016 Integration costs in “extraordinary results” > FY 2016/2017 Integration costs (if any) will be integral part of EBITDA/EBIT Note: There will be integration-related costs (e.g. Branding, IT) that cannot be booked as extraordinary items

Integration savings: CHF 60 – 70 million p.a. (fully achieved in 2018/2019)

Main drivers: – Infrastructure – Procurement (CHF 15 million) – Efficiency (headcount reduction, production footprint)

Stand-alone business plans – Contributing to meet growth and profitability targets Stand-alone business plans (at time of merger) will drive growth 100 bps above adjusted GDP* at least

Post-Merger Integration synergies will add additional 100 bps at least

21

Post-merger integration and Guidance FY 2018/2019


Kaba: 5-6% organic growth CAGR; 18% EBITDA margin (2017/2018) DORMA: 4.8% organic growth CAGR; 16% EBITDA margin (2019/2020) Growth initiatives (market penetration, R&D) Operational efficiency (Production footprint) Cost reduction measures (IT costs, Procurement)

dorma+kaba: Cost synergies (CHF 60 – 70 million) Revenue synergies by strengthened market

presence (shared distribution and service network, cross selling, one-stop-shop)

* Adjusted GDP = Sales weighted average for dorma+kaba's relevant markets ** Chart not scaled

Growth after 2018/2019: 200 bps above adjusted GDP* at least

Strong financial profile provides financial flexibility

Strong balance sheet with solid equity ratio of 41.2% (31.12.2015)

Strong cash flow generation

Net liquidity of CHF 31.3 million (31.12.2015)

Pension liabilities for dorma+kaba Group at CHF 269 million

– Stand-alone (as reported) Kaba 30.06.2015 = CHF 38.7 million

– Stand-alone (as reported) Dorma 30.06.2015 = EUR 198.1 million (CHF 205.4 million*)

– Major driver for current pension liabilities: Dorma’s unfunded pension obligations mainly in Germany. The related pension plan was closed for new participants in 2002. New pension schemes are structured predominantly as defined contribution plans.

– High financial flexibility Net debt / EBITDA could be leveraged by up to 2.5x (short time even higher)

22

Financial targets and Group development


* EUR/CHF exchange rates as of 30.06.2015

Financing strategy will enable further growth

23

Trade Finance & Derivatives

Club Deal 5 Core Banks

CHF 500 million

Accordion Option

Regional Banks

Trade Finance & Derivatives

*Term 5 years; Maturity (+2y) and nominal can be increased



New CHF 500 million credit facility (signed on 30.03.2016)* for: Working capital requirements Acquisitions Backup facility

Structured approach for Group development with three pillars


5 April 2016 Capital Market Day 2016 @ dorma+kaba 24

Dedicated process, criteria, organization

Systematic and priority based

Disciplined Mergers & Acquisitions

Foster Strategic Alliances

Active Business Portfolio Management

Use as alternative or complementary to acquire

Structured approach to strengthen market access, offering, value chain

Actively manage alliances supporting our segments

Continuously assess portfolio

Evaluate potential and “where to play”

Portfolio measures, i.e. invest, fix, sell, divest, close

Accelerators for top line and profitability growth

Ensure most accretive capital allocation, improve profitability, strengthen strategic position.

Group Development – Acquisition criteria and priorities

Acquisition criteria

1. Strategic fit and complementarity (product, geography, value chain)

2. Convincing USP (e.g. technology, offering, IP)

3. Critical mass (>= CHF 20 million turnover, except for local service businesses and complementary technologies)

4. Profitable performance track record with potential for above market profitable growth

5. Purchase Prize: proper risk adjusted valuation, EPS accretive, no turnaround project



Acquisition priorities We focus on

Portfolio add-ons (product, technology) and adjacent businesses

Emerging markets

Geographic add-ons (developed regions with sub-critical market share)

In addition, there is also the option and opportunity for

Strategic alliances (e.g. people flow, smart building)

Business portfolio management

CHF per share

CHF million

in % of net profit

2010: regular pay-out 7.00 26.6 30.7%

2011: double pay-out due to sale of Door Systems 14.00 53.2 24.1%

2012: pay-out incl. extra dividend CHF 2.00 9.00 34.2 41.2%

2013: regular pay-out 11.00 41.9 49.1%

2014: regular pay-out 11.00 41.8 49.7%

2015: pay-out extra dividend (after closing dorma+kaba merger) 50.00 190.4 -

2015: regular pay-out 12.00 50.3 50.9%

Dividend policy – Sustainable good returns for shareholders

26



Dividend payout from former Kaba Group

Dividend policy dorma+kaba Group

Envisaged payout ratio of minimum 50% of consolidated net profit after minority interests

*Note: High capital contribution reserve (balance today: CHF 326.5 million)

A successful start to a new era

Summary and conclusion

Summary 7 months after the merger Conclusion

The successful start of dorma+kaba Group further adds to the strong foundation to build a new industry leader.

27 Capital Market Day 2016 @ dorma+kaba 5 April 2016

H1 2015/2016 – Sales growth & profitability improved

Strong financial profile

Integration on track, first cost savings realized

On track to achieve the expected margin and growth targets for the fiscal year 2018/2019

Agenda





Factory Tour


Recap: three key milestones to operate as one company

29 5 April 2016

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2015

Close Integrate and perform

“Closing” (SEP 01, 2015)

“Org Day” (JAN 04, 2016)

“Day 1” (JUL 01, 2016)

Legally, we are allowed to act

as one company after

closing and can start with the integration of

both companies

Major organizational and personnel-

related decisions are

taken and target structure

definition is well advanced

We start operating in our

target organization

and processes and start as one

company into the new

financial year 2016/2017

Plan and perform

Today

An-nounce

2016 .. Jul .. 2019


Dedicated, experienced team to drive integration

30 5 April 2016

Project set-up of dorma+kaba integration Comments

Dedicated integration managers - For each Function - For each AS Segment

Function and Segment

Integration Managers work jointly to ensure integration

Integration orchestrated,

tracked, and supported by a central Integration Management Office (IMO)

EC/ SteerCo

Integration Management Office (IMO)

AMER APAC EMEA DACH MW KS

Manufacturing

Procurement

R&D

Finance

IT

HR

Communications

Legal


Highlights after 7 months into the integration

31 5 April 2016

Achievements Selected highlights

Top team fully aligned

PEOPLE 4-day opening

conference with top 100

executives

PROCESS Market

engagement workshops

Systematic process installed

Projects defined, tracking in place VALUE

Monthly PMI reporting

dashboard


Great momentum – successful customer examples (1/3)

32 5 April 2016

Comments Customer example

Example from the hospitality industry

Order type - Dorma and Kaba: service project

incl. retrofitting of 782 card locks

Value proposition for customer - All-encompassing service

offering from one source



33 5 April 2016


Example from the infrastructure industry

Order type - Dorma and Kaba: entire

hardware package incl. variety of different products

Value proposition for customer - Satisfying customer’s demands

from one source (complementary product offering)



34 5 April 2016


Example from the automotive industry

Order type ─ Dorma: Matrix Access Control

system (incl. maint. contract)

─ Kaba: pedestrian speedgates and glass vehicle barriers

Value proposition for customer ─ Satisfying customer’s high

security requirements


Overall financial targets and degree of substantiation

35 5 April 2016

Degree of substantiation Ambition Stand-alone business plans

- Kaba: 5-6% organic growth CAGR, 18% EBITDA margin (2017/18)

- DORMA: 4.8% organic growth CAGR, 16% EBITDA margin (2019/20)

Stand-alone business plans being implemented

PMI ─ Cost synergies:

CHF 60-70 million

─ Revenue synergies: at least 1% pp.

─ Implementation costs: somewhat above CHF 70 million, partly recognized in FY 2015/2016

Majority of cost synergy target already substantiated, first cost savings already realized

Revenue synergy opportunities identified

Substantiation of implementation costs to be finalized


dorma+kaba integration rests on three columns

36 5 April 2016

dorma+kaba Integration

Core Projects

1

Value Driver Initiatives

2

Change Management

3


Distinction between Core Projects and Value Driver Initiatives

37 5 April 2016

Projects driving and ensuring a successful integration

Do not directly result in the realization of a synergy

May be associated with integration costs/ CAPEX

Examples: e.g. organizational design

Core Projects

Initiatives to realize value – they generate additional revenues and/ or cost-savings

Must be enabled through the merger integration process

Have a continuous positive EBITDA effect

Examples: e.g. offices consolidation



Deep dive 1: Core Projects

38 5 April 2016


Core Projects

1


2

Change Management

3


Key milestone towards Day 1: structure and appointments

39 5 April 2016

Core Projects

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar May Jun Jul 2015

Close Plan and perform An-nounce

2016 Apr

Prior to “Closing” (Before Sep 01, 2015)

.. .. .. .. .. ..

.. ..

11 people (EC members)

Two separate organizations

“Closing” (Sep 01, 2015)

.. .. .. .. .. ..

COO

..

~60 people (e.g. Group Function Heads)

Organizations only linked at top level

“Org Day” (Jan 04, 2016)

.. .. .. .. .. ..

COO

.. .. .. .. .. ..

COO-2 COO-2 COO-2 COO-2 COO-2 COO-2

COO-1 COO-1 COO-1

~300 people (e.g. Market managers)

Middle mgmt. announced/ staffed

“Day 1” (Jul 01, 2016)

.. .. .. .. .. ..

COO

.. .. .. .. .. ..

COO-2 COO-2 COO-2 COO-2 COO-2 COO-2

COO-1 COO-1 COO-1

~16,000 people (entire organization)

Full org structure announced/ staffed


Coherent organizational structures across AS Segments (1/2)

40 5 April 2016

Core Projects

Market org blueprint to be explained on next slide

dorma+kaba organizational structure Comments Set-up as global

company with six Segments

Dual responsibility of Access Solutions (AS) Segments - for territories as well

as

- for allocated global product clusters

Coherent org structures across AS Segments implemented

Mar

kets

Se

gmen

ts

Gro

up

CFO CMO CTO CIO CEO

MW KS

Global Business Owner Support functions Sales & service functions Delivery functions Legend:

DACH AMER APAC EMEA


Coherent organizational structures across AS Segments (2/2)

41 5 April 2016

Core Projects

Market org blueprint to be explained on next slide

Example AS DACH

Mar

kets

Se

gmen

ts

Gro

up

CFO CMO CTO CIO CEO

Global Business Owner Support functions Sales & service functions Delivery functions Legend:

HR

Finance

GBO Door Hardware

GBO Entrance Systems

R&D

Operations

Marketing

Market Switzerland

Market Germany

Market Austria GBO Interior Glass

DACH


Effective and consistent Market1) org blueprint of AS Segments

42 5 April 2016

Core Projects

Five Go-to-Market archetypes Comments

Five Go-to-Market archetypes defined and rolled-out

Archetypes structured along different Sales Models

Optimal degree of consistency across Markets* implemented

Legend:

Developed for smaller, less mature Markets*

Developed for large, mature

Markets*

Developed for (very) large, mature Markets*

Archetype #1

Archetype #2

Archetype #3

Archetype #4

Archetype #5

Solutions/ Projects Cluster/ Channel Teams Startup Product Sales Services


1) Markets are in most cases Countries

Deep dive 2: Value Driver Initiatives

43 5 April 2016


Core Projects

1


2

Change Management

3


By type

(sales synergies)

Topline

Majority of synergies already confirmed (1/2)

44 5 April 2016


Property rationalization Legal entity consolidation

Synergy targets by type Types and selected examples

Infra-structure

Direct spend in ~40 factories Indirect spend across ~180

locations

Procure-ment

Joint product specifications Service contracts

Topline

Reorganization (incl. monthly FTE tracking)

Shared services Efficiency


By type

(cost synergies)

Effiency

Pro-

curement

Infra-

structure

Majority of synergies already confirmed (2/2)

45 5 April 2016


* Incl. AMER, APAC, DACH, EMEA and HQ ** Incl. Finance, Mfg. (incl. Logistics and Quality Mgmt.), Other G&A, IT, Sales Front-Office, Sales Back-Office, HR, Marketing


Top-down synergy targets clearly allocated to segments* and functions**

Bottom-up substantiation approach in progress

460+ initiatives defined and clearly assigned to owners

Intense collaboration between segments and functions to ensure target achievement

460+ initiatives defined – three selected examples

46 5 April 2016


Extensive initiative portfolio Selected examples

Merge duplicated entities/ sales teams in Malaysia

I

Optimize AMER manufacturing footprint

II

Leverage architectural specification writers (MEA)

III

* MEA – Middle East & Africa


Example I: Merge duplicated entities/sales teams in Malaysia

47 5 April 2016


Consolidation efforts Comments

Legal entity consolidation - Systematic process in place - Substantial cost synergies

identified - Initial successes registered

Joint dorma+kaba office in Kuala Lumpur (MY)

Com

bina

tion

of s

ales

team

s Le

gal e

ntity

co

nsol

idat

ion

Combination of sales teams - Consolidation in one location

(property rationalization) - Joined project bidding - Potential for additional sales


Example II: Optimize AMER manufacturing footprint

48 5 April 2016


Before the manufacturing footprint optimization

- Total of 14 factory locations (7 former Kaba, 7 former DORMA)

- Majority of factories small (e.g. one shift) with similar prod. lines

After the manufacturing footprint optimization

- Closure of 4 factories down to 10 (minus ~30%)

- Fewer, larger facilities with the potential to grow in the long-term

Legend:

Former Kaba manufacturing facility Former DORMA manufacturing facility

AMER Manufacturing footprint Comments


Example III: Leverage architectural specification writers

49 5 April 2016


Highly disparate strengths - Dorma: early in the building cycle - Kaba: late in the building cycle

Pilot project in Middle East & Africa

- Integrated each other’s products in resp. specifications with designers/ architects

- Substantial amount of extra specifications in four months generated

- Incl. 6 hotels, 1 airport & 5 commercial centers

Bldg. construction value chain Comments


Deep dive 3: Change Management

50 5 April 2016


Core Projects

1


2

Change Management

3


Pro-active change management in place

51 5 April 2016

Change Management


Customer-focused measures

Employee-focused measures

Healthy sponsorship

spine

Firm risk assessment

and mitigation actions

Extensive mobilization

efforts

Intensified customer

involvement

Top mgmt. town hall meetings/ workshops

Systematic employee engagement

52 5 April 2016

Change Management

Employee pulse check conducted globally

(n=1,800+) to measure engagement, culture

and integration change impact

Systematic cascading of management/

employee engagement throughout the organization

Multiple employee training programs being rolled-out (e.g. product

training for cross-selling, Operating

Model as e-learning module, etc.)


Customer and partner involvement intensified

53 5 April 2016

Change Management

Customer surveys

Standardized questionnaire applied in top countries

Insights/ findings continuously fed back into local/ global organizations

Partner programs

Coordinated approach to merge different programs started

Efforts to increase/ cultivate customer and partner relations strengthened

Customer dialogues

Customer dialogues on PMI expectations and priorities conducted monthly

Several customer suggestions already being implemented


Key takeaways

54 5 April 2016

Integration well on track across all three dimensions

Core

Projects

Day-1 organizational structure finalized

Value Driver

Initiatives

High degree of substantiation reached

Change

Management

Mobilization and risk mgmt. in place


Agenda





Factory Tour


Former DORMA Group worldwide (per 30.06.2015)


Capital Market Day

Former DORMA Mission Statement

DORMA is the trusted global partner for premium access solutions & services

enabling better buildings.

> 50 Countries

7.400 employees 30% of DORMA employees work in Germany and 70% in foreign countries

EUR 1.1 billion in sales 80% of overall sales transacted in foreign market

11.3% EBITDA Margin

56 5 April 2016

DORMA from 1908 to now


Capital Market Day

Foundation of Dörken & Mankel KG in Ennepetal

Glass Fittings First step to design leadership

1908

2001

1976

1962

1987

1950 Door Closer First step to market leadership

Automatic Further step to market leadership

Security Products and emergency exit control systems

Movable Walls step to market leadership

2002 Electronic Access Control

In 2010: 100 million door closer sold

1978 DORMA Production Singapore established

2015 Merger with Kaba

57 5 April 2016

From product to premium access solutions and services


Capital Market Day

DORMA offers holistic solutions from the opening and closing of doors, attendance recording and access control, to emergency exit and escape route management.

DORMA is a world market leader in Door Closers, Automatics, Movable Walls and Services.

58 5 April 2016

Overview DORMA product portfolio


Capital Market Day

59 5 April 2016

DORMA product spread

Capital Market Day

5 April 2016 Capital Market Day 2016 @ dorma+kaba 60

Door Hardware

Entrance Systems

Service

Interior Glass Systems

Movable Walls

Electronic Access & Data

Turnover product segments

DORMA sales channels


Capital Market Day

General Contractor

Commercial End user

Installer & Fabricator

Industry

Glas Toughener

Direct

Distributor

The global DORMA business is driven by distributors, installers and fabricators and industrial customers.

DO

RM

A

Airports Education Governmental Buildings Healthcare Hotels Industrial Buildings Office Buildings Shopping Centres Sports stadiums Shipbuilders Train-/Under-ground Stations Residential buildings

61 5 April 2016

DORMA product segments and world market spread


Capital Market Day

“Best”

“Better”

“Good enough”

“Cheap”

Premium

Affordable

World market

DORMA Sales

~ 50%

~ 50%

~ 90%

~ 10%

S1

S2

S3

S4

Source: Management estimate

62 5 April 2016

DORMA product milestones for S1/S2 markets


Capital Market Day

TS 73

BTS 74/80

TS 93

ITS 96

Manet ED 100/250 Matrix Air ARCHIMEDES

63 5 April 2016

New developments for S3 markets


Capital Market Day

Door Closer

Glass Systems

Architectural Hardware

Automatics

Lego

Balkony Systems

Lockset for interior doors EN lockset Door Hinge

Market launch November 2014 Market launch March 2016

Market launch March 2016

Market launch of all in January 2015

Market launch May 2016 Electronic Access Control

Market launch January 2016

Shanghai

64 5 April 2016

Texas

Services – One stop service performance

Capital Market Day

1. Automatic Doors

2. Access Control & Gates

3. Manual Doors & Door Hardware

4. Glass Door Systems

5. Security & Escape Doors

6. Revolving Doors

7. Car Park Barriers

8. Industrial Doors / Gates

9. Roller & Fire Shutter

10. Turnstiles

One service provider for all access solutions – professional service network with over 1.000 technicians

1

2 3

4

5

6

7

8

9

10


THANK YOU FOR YOUR ATTENTION!

IR Agenda 2016

Vontobel Investors Conference 7 June 2016 Interlaken, Switzerland

Publication and presentation of results 2015/2016 7 September 2016

Zurich, Switzerland

UBS Best of Switzerland Conference 15 September 2016

Ermatingen, Switzerland

Annual General Meeting 18 October 2016

Regensdorf, Switzerland

67

Appendix

Capital Market Day 2016 @ dorma+kaba 5 April 2016

Siegfried Schwirzer, Head of Investor Relations

68

German citizen

Education Certified European Financial Analyst (CEFA) from the European Federation of Financial Analysts Societies (Frankfurt); Ph.D. in Chemistry (Munich)

Career Since March 2016 Head of Investor Relations dorma+kaba Group (CH); 2010 – 2016 Deputy Head of Investor Relations at Clariant (Muttenz, CH); Other Senior IR positions at BASF SE (2009 – 2010) and Ciba Specialty Chemicals (2003 – 2009); 2000 – 2003 Equity Research Analyst at HVB Group, Munich (DE); 1997 – 2000 Business Development Manager at a Biotech startup (Connex, Martinsried, DE)

Capital Market Day 2016 @ dorma+kaba 5 April 2016

Appendix

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