Kaba posts profitable growth

Kaba Group's sales decreased from CHF 1,130.0 million in the previous year to CHF 945.2 million in 2010/2011. This is mainly because of the disposal of the Door Automation segment. Using like-for-like figures, i.e. excluding the CHF 177.9 million of sales generated by Door Automation, which was sold during the period under review, Kaba posted sales of CHF 952.1 million in the previous year. Currency influences reduced sales by 9.1% or CHF 86.6 million in 2010/2011. Kaba's organic sales growth came to 5.9%.

Like-for-like EBIT margin improves

Thanks to the strong second half, EBIT after adjusting for currency and acquisition influences increased from CHF 125.0 million in the previous year to CHF 129.7 million in the year under review. This produced an improvement in the EBIT margin from 13.1% to 13.7%. Consolidated net profit more than doubled, rising 155% from CHF 86.9 million to CHF 221.6 million. This exceptional increase can be mainly attributed to the disposal of the Door Automation segment to the Japanese Nabtesco Group. The comparable net profit went up 8.5%, from CHF 78.4 million to CHF 85.1 million. Earnings per share rose from CHF 22.90 to CHF 58.30.
Net debt went down from CHF 232.7 million to CHF 32.8 million. As a result of the profit generated and the sale of the Door Automation segment, equity rose to CHF 457.5 million as at 30 June 2011. With an equity ratio of 52.8% (previous year 37.8%) Kaba has a strong balance sheet.

All segments on a positive growth path

Access + Data Systems

Kaba's biggest business segment posted organic sales growth of CHF 27.6 million, or 4.6% (previous year - 2.7%). The acquisition of Norwegian company Møller Undall Group on 1 March 2011 and of e-DATA on 1 June 2011 contributed another CHF 12.7 million to sales. Meanwhile, however, currency influences reduced the sales figure by CHF 46.4 million. The net result was a 1.0% fall in sales to CHF 587.7 million. Adjusted EBIT of CHF 84.9 million gave an EBIT margin of 14.4% (previous year 13.2%). Sales growth also had a greater leverage effect on EBIT in the second half of the year: the comparableEBIT margin rose from 11.5% in the previous year to 13.3% in the year under review.

Industrial Locks

Industrial Locks achieved the highest rate of growth of all Kaba's business segments, posting an 11.6% organic increase in sales to CHF 171.9 million. Chinese company Wah Yuet Group made a particularly impressive contribution to this performance. Although organic growth declined slightly in the second half-year compared to the previous year, it remained very healthy at 6.7%. Adjusted EBIT rose 3.0% to CHF 47.4 million, an excellent 27.6% of earnings.

Key Systems

The Key Systems business segment achieved organic sales growth of 4.4% to CHF 198.5 million. In the second half of the year, the growth rate of 2.1% compared to the previous year was around the same as the rate of GDP growth, thus matching the long-term trend. EBIT decreased 6.6% to CHF 22.5 million, giving an operating margin of 11.3%. In India, Kaba's subsidiary Silca increased its stake in Minda Silca during the year under review from 50% to 65%. The company manufactures keys for the replacement keys business and OEM sector. It is an important partner for Kaba in the fast-growing Indian market.

Renewal and rejuvenation of Management Board
Riet Cadonau took over from Rudolf Weber as CEO on 1 July 2011. He previously managed the Ascom Group for around four years, and from 2006 sat on Kaba Group's Board of Directors, which he left on 30 June 2011. On 1 November 2011 Kaba's longstanding CFO Werner Stadelmann will hand over his post to Beat Malacarne, who is currently CFO of SBB Cargo AG.

At the start of the current financial year, the former Head of Key Systems Europe/Asia Pacific, Roberto Gaspari, took over management of Access + Data Systems EMEA/Asia Pacific, replacing Ulrich Wydler. The renewal and rejuvenation of management has been implemented further by the appointments of the following new members of Group Management:

• Stefano Zocca, Head of Key Systems EMEA/Asia Pacific/SAM
• Andreas Häberli, Chief Technology Officer (CTO)
• Patrick Grawehr, Head of Group Services

Exceptional doubling of payout to CHF 14.00 per share proposed

The divestment of the Door Automation Business Segment has resulted in an exceptionally high one-off profit. That is why this year the Board of Directors intends to propose to the Annual General Meeting an exceptional payout of CHF 14.00 per share (previous year CHF 7.00).

Elections to the Board of Directors
The terms of office of Ulrich Graf, Riet Cadonau and Klaus Schmidt expire on the date of the Annual General Meeting, 25 October 2011. Riet Cadonau became CEO on 1 July 2011, and on this date stepped down from the Board of Directors for reasons of good corporate governance. For personal reasons, Klaus Schmidt is not putting himself forward for re-election. The Board of Directors proposes that Ulrich Graf be re-elected. As from the current 2011/2012 financial year Graf, the long-serving executive Chairman of the Board of Directors, is heading the Board as non-executive Chairman.
Further, the Board of Directors will propose to the Annual General Meeting to elect Thomas Pleines to the Board. Born in 1955, Thomas Pleines is a German citizen who has spent most of his career so far at Allianz Group, including several years in Switzerland.