1.1 Segment reporting
Operating model
As part of its new corporate strategy Shape4Growth, dormakaba changed its operating model as per 1 January 2022 with the aim to
- Focus stronger on its customers
- Increase operational efficiency to gain scale
- Increase transparency and accountability
The new operating model drives customer centricity with fewer and more focused regions, leaner organizations, scale, and an ease of doing business.
The Access Solutions (AS) business is divided into three customer-centric regional sales organizations – Americas, Asia Pacific, and Europe & Africa. These three Regions are supported by Global Functions to secure efficiencies of scale and to capture business synergies in product development, product management, and operations. To enable a strong customer focus and sales generation, the three Regions are built around
- Project and solutions sales, focusing on architects, design engineers, and influencers to increase specification capabilities
- Indirect sales, focusing on distributors, general contractors, and project managers to enhance a dedicated offering for key verticals and to push cross-selling
- Services, focusing on facility managers, building operators, or installers to support services growth as part of the company’s global core business
Key & Wall Solutions completes the organizational setup as standalone global segment.
The financial performance of the Regions is measured at full value contribution to the performance of the Group to improve financial steering, transparency, and accountability.
Region Asia Pacific covers the Markets ASEAN, Greater China, India, Pacific & North Asia, and as a new addition, the Middle East. The Region Asia Pacific includes two OEM (Original Equipment Manufacturer) plants situated in mainland China and Taiwan.
Region Europe & Africa covers the Markets Austria, Germany, Switzerland, CEERT (Central and South East Europe, Poland, Russia, and Turkey), Scanbalt (Sweden, Norway, Denmark, Finland, and the Baltic states), South (Belgium, Luxembourg, France, Spain, Portugal, Italy, and French-speaking Africa), UK, Ireland, Netherlands, and the Sub-Sahara.
Key & Wall Solutions remains as a standalone self-contained segment with two global businesses – Key Systems and Movable Walls. Key & Wall Solutions includes its productions facilities, which are situated around the globe in North and South America, Europe, and Asia.
Marketing & Products manages the entire product & solution portfolio lifecycles globally to support and develop sales units to achieve market success. In addition, it is responsible for creating an engaging customer journey along the sales funnel from strategic marketing through branding and marketing communication to strategic pricing and sales excellence.
Operations is responsible for dormakaba’s entire production network including the areas Plants, Manufacturing Excellence, Industrial Engineering, Procurement, Logistics, and Health & Safety. Operations’ main task is to build an integrated production network, optimize the production footprint, bundling our purchasing activities, and drive lean efforts.
Product Development is responsible for delivering customer- and market-oriented product and solution developments and innovations. In cooperation with Marketing & Products, it develops and steers innovations and technology strategies to foster dormakaba’s innovation leadership in the market.
Corporate functions (Strategy, Finance, HR, Legal, and IT) globally support the above Regions and Functions to steer the business, drive implementation of the current Shape4Growth strategy, and strengthen customer centricity of dormakaba.
In accordance with the management organization, the reporting to Group management consists of the three regions, Key & Wall Solutions, and the Global Functions, as described above. Segment Reporting is prepared up to the level of adjusted EBITDA/EBIT because these are the key figures used for management purposes. The reporting forms the basis for assessing performance and allocating resources. Financial transactions of Global Functions that are directly attributable or can be allocated on a reasonable basis to a specific segment are reported under the segment concerned. The segment results are based on the same accounting principles that are used to determine the operating profit of the Group. Intersegment transactions are based on the arm’s length principle.
Offering
dormakaba Group provides smart, secure, and sustainable solutions for seamless flow and integrated access. Its portfolio of strong brands offers customers the full range of products, solutions, and services for access to premises, buildings, and rooms. From award-winning, end-to-end access solutions to industry best practices and straightforward installation across a range of markets and industries, dormakaba is a complete partner for door and access systems, catering to a broad range of industries such as hotels, retail spaces, sporting venues, airports, hospitals, offices, utilities, and multi-housing, as well as in some select residential markets.
The company’s global access solutions portfolio ranges from door solutions, such as automatic door systems, swing and revolving doors and their operators, a wide variety of fittings, door closers and stoppers, and locking systems – from cylinders, keys, and locks all the way to fully networked and Cloud-based electronic access solutions and ecosystem solutions. The range also includes solutions for seamless flow such as sensor barriers, speed gates and self-boarding gates, high-security locks, solutions for workforce management, as well as services for all these applications.
In addition, the company also offers products in the areas of Key Systems and Movable Walls, but under different brands. Key Systems offers a range of high-performance key blanks and mechanical, electronic, and (semi-)industrial key cutting and origination machines. In addition, the portfolio covers solutions for the automotive industry, such as vehicle keys, transponders, and key programming devices and duplication equipment. The Movable Walls unit specializes in acoustic movable partitions as well as horizontal and vertical partitioning systems. The business offers partition solutions that range from manual application to fully automatic/electronic walls. The business units Key Systems and Movable Walls are combined in the global standalone, self-contained segment Key &Wall Solutions.
|
|
|
Region Americas |
|
Region Asia Pacific |
|
Region Europe & Africa |
|
Eliminations |
|
Sales Region Total |
|
Key & Wall Solutions |
|
Global Research and Development |
|
Corporate |
|
Eliminations |
|
Group |
||||||||||||||||||||
|
CHF million |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 1) |
|
Net sales third parties |
|
736.8 |
|
657.3 |
|
543.1 |
|
439.1 |
|
1,125.7 |
|
1,073.6 |
|
0.0 |
|
0.0 |
|
2,405.6 |
|
2,170.0 |
|
351.3 |
|
329.7 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
2,756.9 |
|
2,499.7 |
|
Intercompany sales |
|
7.9 |
|
14.7 |
|
30.9 |
|
23.0 |
|
18.8 |
|
32.2 |
|
–49.5 |
|
–63.1 |
|
8.1 |
|
6.8 |
|
12.8 |
|
15.1 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
–20.9 |
|
–21.9 |
|
0.0 |
|
0.0 |
|
Total sales |
|
744.7 |
|
672.0 |
|
574.0 |
|
462.1 |
|
1,144.5 |
|
1,105.8 |
|
–49.5 |
|
–63.1 |
|
2,413.7 |
|
2,176.8 |
|
364.1 |
|
344.8 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
–20.9 |
|
–21.9 |
|
2,756.9 |
|
2,499.7 |
|
Adjusted EBIT (Operating profit) |
|
121.6 |
|
116.6 |
|
95.9 |
|
73.1 |
|
216.1 |
|
211.4 |
|
3.5 |
|
6.6 |
|
437.1 |
|
407.7 |
|
42.2 |
|
45.2 |
|
–100.0 |
|
–86.9 |
|
–85.9 |
|
–82.4 |
|
0.0 |
|
0.0 |
|
293.4 |
|
283.6 |
|
as % of sales |
|
16.3% |
|
17.4% |
|
16.7% |
|
15.8% |
|
18.9% |
|
19.1% |
|
–7.1% |
|
–10.5% |
|
18.1% |
|
18.7% |
|
11.6% |
|
13.1% |
|
0.0% |
|
0.0% |
|
0.0% |
|
0.0% |
|
0.0% |
|
0.0% |
|
10.6% |
|
11.3% |
|
Adjusted depreciation and amortization |
|
11.2 |
|
13.2 |
|
12.8 |
|
12.3 |
|
19.8 |
|
21.6 |
|
0.0 |
|
0.0 |
|
43.8 |
|
47.1 |
|
8.7 |
|
9.6 |
|
4.3 |
|
6.3 |
|
22.1 |
|
15.4 |
|
0.0 |
|
0.0 |
|
78.9 |
|
78.4 |
|
Adjusted EBITDA (Operating profit before depreciation and amortization) |
|
132.8 |
|
129.8 |
|
108.7 |
|
85.4 |
|
235.9 |
|
233.0 |
|
3.5 |
|
6.6 |
|
480.9 |
|
454.8 |
|
50.9 |
|
54.8 |
|
–95.7 |
|
–80.6 |
|
–63.8 |
|
–67.0 |
|
0.0 |
|
0.0 |
|
372.3 |
|
362.0 |
|
as % of sales |
|
17.8% |
|
19.3% |
|
18.9% |
|
18.5% |
|
20.6% |
|
21.1% |
|
–7.1% |
|
–10.5% |
|
19.9% |
|
20.9% |
|
14.0% |
|
15.9% |
|
0.0% |
|
0.0% |
|
0.0% |
|
0.0% |
|
0.0% |
|
0.0% |
|
13.5% |
|
14.5% |
1) Dormakaba changed its operating model as of 01 January 2022. To enable a fair comparison with current-year data, all segment information disclosed were retrospectively adjusted to the new operating model by reclassification of transactions within the segment reporting.
Transition into the new operating model
The transition into the new operating model contains the following major elements:
- Global Operations and Marketing & Products organizations are separated in the new operating model as Global Functions. Their financial contribution to the Group’s financial performance is allocated to the respective sales Region; either directly attributable or allocated on a reasonable basis.
- Other Organizational Changes reflect the geographical and other structural shifts of responsibility. The change in Region Americas stems mainly from the centralization of the Safe Locks business (share of former AS EMEA segment) while Region Asia Pacific is impacted by the additional responsibility for the Market Middle East (former AS EMEA segment). The impact of above changes on Europe & Africa are partly offset by the Legic SmartCard and Connect technologies (former segment “other”).
- Global Research and Development costs contain the development costs for global products, and are organized as a Global Function (Product Development) and disclosed separately in the new operating model.
The following table bridges current year segment performance to the former operating model, summarized by the changes described above.
|
|
|
Financial year ended 30.06.2022 |
|
Global Operations and Marketing & Products |
|
Other organizational changes |
|
Global Research and Development |
|
Financial year ended 30.06.2022 |
|
CHF million |
|
Region Americas |
|
|
|
Access Solutions AMER |
||||
|
Net sales third parties |
|
736.8 |
|
–0.5 |
|
20.2 |
|
0.0 |
|
717.1 |
|
Intercompany sales |
|
7.9 |
|
–29.1 |
|
1.6 |
|
0.0 |
|
35.4 |
|
Total sales |
|
744.7 |
|
–29.5 |
|
21.7 |
|
0.0 |
|
752.5 |
|
Adjusted EBIT (Operating profit) |
|
121.6 |
|
–6.0 |
|
4.0 |
|
23.3 |
|
100.3 |
|
as % of sales |
|
16.3% |
|
|
|
|
|
|
|
13.3% |
|
Adjusted depreciation and amortization |
|
11.2 |
|
0.7 |
|
0.2 |
|
–3.2 |
|
13.5 |
|
Adjusted EBITDA (Operating profit before depreciation and amortization) |
|
132.8 |
|
–5.3 |
|
4.2 |
|
20.1 |
|
113.8 |
|
as % of sales |
|
17.8% |
|
|
|
|
|
|
|
15.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Region Asia Pacific |
|
|
|
Access Solutions APAC |
||||
|
Net sales third parties |
|
543.1 |
|
–4.4 |
|
61.2 |
|
0.0 |
|
486.3 |
|
Intercompany sales |
|
30.9 |
|
–3.8 |
|
0.1 |
|
0.0 |
|
34.6 |
|
Total sales |
|
574.0 |
|
–8.1 |
|
61.2 |
|
0.0 |
|
520.9 |
|
Adjusted EBIT (Operating profit) |
|
95.9 |
|
26.5 |
|
3.6 |
|
0.9 |
|
64.9 |
|
as % of sales |
|
16.7% |
|
|
|
|
|
|
|
12.5% |
|
Adjusted depreciation and amortization |
|
12.8 |
|
3.7 |
|
0.5 |
|
0.0 |
|
8.6 |
|
Adjusted EBITDA (Operating profit before depreciation and amortization) |
|
108.7 |
|
30.2 |
|
4.1 |
|
0.9 |
|
73.5 |
|
as % of sales |
|
18.9% |
|
|
|
|
|
|
|
14.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Region Europe & Africa |
|
Access Solutions EMEA & DACH 1) |
||||||
|
Net sales third parties |
|
1,125.7 |
|
5.0 |
|
–60.2 |
|
0.0 |
|
1,180.9 |
|
Intercompany sales |
|
18.8 |
|
–96.0 |
|
5.3 |
|
–1.1 |
|
110.6 |
|
Total sales |
|
1,144.5 |
|
–91.0 |
|
–54.9 |
|
–1.1 |
|
1,291.5 |
|
Adjusted EBIT (Operating profit) |
|
216.1 |
|
–24.7 |
|
–13.4 |
|
70.9 |
|
183.3 |
|
as % of sales |
|
18.9% |
|
|
|
|
|
|
|
13.9% |
|
Adjusted depreciation and amortization |
|
19.8 |
|
–4.3 |
|
0.5 |
|
–1.1 |
|
24.7 |
|
Adjusted EBITDA (Operating profit before depreciation and amortization) |
|
235.9 |
|
–29.0 |
|
–12.9 |
|
69.8 |
|
208.0 |
|
as % of sales |
|
20.6% |
|
|
|
|
|
|
|
16.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key & Wall Solutions |
|
|
|
Key & Wall Solutions |
||||
|
Net sales third parties |
|
351.3 |
|
0.0 |
|
0.0 |
|
0.0 |
|
351.3 |
|
Intercompany sales |
|
12.8 |
|
0.0 |
|
0.0 |
|
0.0 |
|
12.8 |
|
Total sales |
|
364.1 |
|
0.0 |
|
0.0 |
|
0.0 |
|
364.1 |
|
Adjusted EBIT (Operating profit) |
|
42.2 |
|
1.1 |
|
0.0 |
|
0.0 |
|
41.1 |
|
as % of sales |
|
11.6% |
|
|
|
|
|
|
|
11.3% |
|
Adjusted depreciation and amortization |
|
8.7 |
|
–0.1 |
|
0.0 |
|
0.0 |
|
8.8 |
|
Adjusted EBITDA (Operating profit before depreciation and amortization) |
|
50.9 |
|
1.0 |
|
0.0 |
|
0.0 |
|
49.9 |
|
as % of sales |
|
14.0% |
|
|
|
|
|
|
|
13.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global R&D |
Global R&D |
|||||||
|
Adjusted EBIT (Operating profit) |
|
–100.0 |
|
|
|
|
|
–100.0 |
|
0.0 |
|
Adjusted depreciation and amortization |
|
4.3 |
|
|
|
|
|
4.3 |
|
0.0 |
|
Adjusted EBITDA (Operating profit before depreciation and amortization) |
|
–95.7 |
|
|
|
|
|
–95.7 |
|
0.0 |
1) For better readability, the former segments AS EMEA and AS DACH are disclosed combined. Intersegment transactions of the combined disclosure are eliminated.
|
CHF million |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 |
|
Net working capital 1) |
|
|
|
|
|
Group |
|
751.3 |
|
641.6 |
|
Region Americas |
|
87.3 |
|
81.9 |
|
Region Asia Pacific |
|
139.7 |
|
124.3 |
|
Region Europe & Africa |
|
167.1 |
|
169.0 |
|
Operations |
|
299.7 |
|
209.9 |
|
Key & Wall Solutions |
|
87.4 |
|
80.1 |
|
Corporate |
|
–14.3 |
|
–12.0 |
|
Elimination |
|
–15.6 |
|
–11.6 |
1) Details on the calculation of net working capital are disclosed in chapter 5.1 About this report, in the note on the alternative performance measures (APM).
|
CHF million |
|
Financial year ended 30.06.2022 |
|
Financial year ended (restated) 30.06.2021 |
|
Capital expenditure 1) |
|
|
|
|
|
Group |
|
78.5 |
|
76.1 |
|
Region Americas |
|
3.4 |
|
4.4 |
|
Region Asia Pacific |
|
6.0 |
|
5.9 |
|
Region Europe & Africa |
|
4.4 |
|
4.3 |
|
Operations |
|
31.7 |
|
30.1 |
|
Key & Wall Solutions |
|
7.8 |
|
10.7 |
|
Global Research and Development |
|
10.1 |
|
7.9 |
|
Corporate |
|
15.1 |
|
12.8 |
1) Details on the calculation of capital expenditure are disclosed in chapter 5.1 About this report, in the note on the alternative performance measures (APM).
Reconciliation of operational figures
|
|
|
Financial year ended 30.06.2022 |
|
Financial year ended 30.06.2021 |
||||||||
|
CHF million |
|
Adjusted |
|
IAC 1) |
|
Unadjusted |
|
Adjusted |
|
IAC 1) |
|
Unadjusted |
|
Operating profit before depreciation and amortization (EBITDA) |
|
372.3 |
|
–30.3 |
|
342.0 |
|
362.0 |
|
–8.9 |
|
353.1 |
|
Depreciation and amortization 2) |
|
–78.9 |
|
–58.3 |
|
–137.2 |
|
–78.4 |
|
–0.4 |
|
–78.8 |
|
Operating profit (EBIT) |
|
293.4 |
|
–88.6 |
|
204.8 |
|
283.6 |
|
–9.3 |
|
274.3 |
1) Content of items affecting comparability (IAC) is described in the note alternative performance measures (APM) (5.1).
2) In 2021/22: depreciation and amortization include CHF 48.7 million goodwill recycling from the sale of the Mesker hollow metal doors business and CHF 2.2 million goodwill recycling from the sale of the interior glass systems business (IGS), which are treated as IAC. Details are disclosed in the note on business combinations and divestments (4.3).