Segment Access Solutions AMER

AS AMER achieved total sales of CHF 669.6 million in financial year 2020/21. Organic sales declined by 5.2% compared to the previous year. Due to the weakening of the US commercial business the sales recovery in 2020/21 was less pronounced than in Europe and Asia – organic sales increased by just 1.6% in the second half of 2020/21 compared to the previous year.

The Lodging Systems business showed the most notable decline with organic sales 20% below the pre-Covid level; this is due to its high proportion of customers in the severely impacted hospitality industry. However, business sentiment and the aftermarket business continued to recover. Safe Locks and Mechanical Key Systems experienced double-digit sales growth whereas Door Hardware, Interior Glass Systems, and Services were below the previous year.

Major parts of the Entrance Systems business, including its touchless offering, experienced a good sequential recovery. This was supported by the continued strong performance of Alvarado, which was acquired in 2019. Sales in Electronic Access & Data were above the previous year’s level due to good demand for integrated electronic security systems and several well-received product launches.

EBITDA was at CHF 109.8 million (previous year CHF 128.1 million). The EBITDA margin was at 16.4% (previous year 17.0%), impacted by volume contraction, the very weak performance of Mesker, increasing raw material costs, and higher freight costs which offset lower discretionary spending and cost-saving measures. The continued weak hollow metal door business (Mesker) had a negative effect of 240 basis points on the segment’s EBITDA margin. As the performance at Mesker continued to be very unsatisfactory, the segment must focus on the turnaround of the business; on top, management is evaluating strategic options.

The segment expects moderate organic growth in financial year 2021/22 driven by a recovery of the US commercial market which already showed an uptick during the fourth quarter of 2020/21. In addition, the order book and the project pipeline improved based on several contract acquisitions, including a number of airport projects in the US, and Resorts World in Las Vegas, a hospitality project that includes 4,000 digital door locks interlinked to the Ambiance software platform. Strategic investments will support further performance progress and profitable growth over time. These efforts include a dedicated Sales Excellence initiative, which is designed to drive performance by tailoring sales activities more effectively to geographic and market opportunities.

Growth is also expected from new, innovative solutions in Electronic Access & Data, Entrance Systems, and Safe Locks.

AS AMER will continue to increase sales prices to compensate for higher raw material costs and has initiated measures to secure supplies of scarce electronic components to enable further growth for its electronic access solutions.

Key figures - segment AS AMER

Segment sales (CHF million) - AS AMER