Key & Wall Solutions

Key & Wall Solutions generated total sales of CHF 364.1 million in the financial year 2021/22 compared to CHF 344.8 million in the previous year. Organic growth accelerated during the period under review, yielding 5.7% for the full year.

The two Business Units Key Systems and Movable Walls recorded very different financial performances for the reporting period. Business Unit Key Systems posted 10.4% organic sales growth due to good demand in all its three business lines Keys, Key Cutting Machines, and Automotive Solutions. India, Southeast Asia, and North America saw double-digit sales growth. Europe & Middle East as well as Latin America posted good growth, whereas sales in China were impacted by Covid lockdowns. The increased organic sales were due to good volume growth supported by the low baseline from the previous year, when demand in major markets was negatively impacted by the pandemic. Additionally, sales price increases contributed to organic growth.

Sales for Business Unit Movable Walls recovered during the second half of 2021/22 with high single-digit growth in the final quarter. The improvement was driven by the business starting to convert part of its Covid-related project backlog into sales. In addition, the business benefited from higher sales prices and from market share gains in the USA due to changes in the competitive landscape in the second half year. However, due to a weak first half, organic growth for the full financial year was still below the previous year at –0.6% (half-year 2021/22: –6.7%).

Adjusted EBITDA for Key & Wall Solutions was below the previous year but improved during the year as well, with CHF 50.9 million for the full financial year 2021/22, compared to CHF 22.3 million for the first half of 2021/22 (–7.1% respectively –16.2% compared to the previous year). The adjusted EBITDA margin for the full year 2021/22 was at 14.0% (previous year: 15.9%).

Business Unit Key Systems was able to offset higher raw material and freight costs with higher sales prices, thus improving its adjusted EBITDA margin to 15.6% (previous year: 15.1%).

The adjusted EBITDA margin at Business Unit Movable Walls was impacted by lower sales volumes, a negative mix effect due to lower sales from the Skyfold business, as well as higher raw material and freight costs. As a result, it went down to 11.6% from the previous year’s 16.9%. The project-driven business faces headwind due to contract durations and a more pronounced time gap between raw material price increases and higher sales prices. Going forward, the business expects an improvement due to higher sales prices for new projects, which will contribute to higher gross margins.

Assuming no further major disruptions related to Covid-19 and no further deterioration of the supply chain, Key & Wall Solutions expects continued organic sales growth in 2022/23 based on a good order intake and backlog. The order book of Movable Walls in particular is promising, with the order backlog in Europe and the Americas still at record level; and also Key Systems sees good demand in major regions. In addition, demand will be driven by the launch of new innovative solutions. Recent examples are the launch of RW5 and Smart Aerial plus, the new connected devices for cloning of automotive keys integrated in our digital ecosystem named MyKeysPro.

Both Business Units will continue to focus on price realization to offset higher energy, raw material, and freight costs as well as labor cost inflation. Additionally, the segment expects to benefit from the initiatives it is currently taking in procurement and sales excellence as part of the new strategy Shape4Growth.

Key figures – Key & Wall Solutions

Sales (CHF million) - Key & Wall Solutions