Segment Key & Wall Solutions

Key & Wall Solutions generated total sales of CHF 344.9 million in the financial year 2020/21. Organic sales grew by 1.8% year-on-year. In the first half of 2020/21, organic sales were 9.2% below the previous year due to the impact of the pandemic, with key shops still closed due to regional lockdowns for example. In the second half-year, demand improved in most regions, which resulted in 16.0% organic sales growth compared to the second half of 2019/20.

Business Unit Key Systems recorded double-digit growth in the year under review. Growth was driven by a good recovery in demand from the global automotive industry, and a strong key cutting machines business that benefitted from the introduction of a new platform of high-end electronic key cutting machines and a major contract in the USA. In addition, the previous year provided a weak baseline particularly for Key Systems as both supply and demand in major markets such as Italy, India, and Latin America were heavily impacted by the pandemic.

Organic sales for Business Unit Movable Walls were below the previous year due to a base effect stemming from having finalized a major project in Las Vegas. On top, delays in the finalization of existing projects, postponed construction projects as well as regional lockdowns had an impact. However, both order backlog and order entry remained strong.

EBITDA stood at CHF 54.2 million, up by 7.3% compared to the previous year. The EBITDA margin increased to 15.7% (previous year 14.4%) and has already achieved pre-Covid levels. Both Business Units improved their EBITDA margin, with Movable Walls reaching an all-time high. The increase in profitability was driven by higher volumes, continued tight cost management, and the reduction of personnel expenses as well as procurement savings and a favorable product mix in Movable Walls.

Barring new additional waves of Covid-19, Key & Wall Solutions expects moderate organic growth. Growth will be driven by both a good order backlog in Movable Walls and good demand for Key Systems in major regions and markets such as the automotive industry. The Movable Wall business has won several major contracts that will support growth such as the Shangri-La Hotel in Beijing (China), the expansion of the Las Vegas Convention Center (USA), and The Circle convention center at Zurich airport (Switzerland).

Sales will continue to be driven by new, innovative products like the Unocode F Series, a new platform of five models of high-end electronic key cutting machines. The Unocode F Series was launched successfully in the second half of 2020/21 and already contributed to growth in the financial year 2020/21. For Movable Walls, growth potential is expected from new cost-effective automated movable walls.

Both Business Units will continue to increase sales prices to compensate for higher raw material costs.

Key figures - segment Key & Wall Solutions

 Segment sales (CHF million) - Key & Wall Solutions