Region Asia Pacific

5 min.

Region Asia Pacific is comprised of the former segment Access Solutions Asia Pacific (AS APAC) and the Market Middle East which used to be a part of the former segment Access Solution Europe Middle East & Africa (AS EMEA). All figures were consolidated according to the new operating model. To ensure comparability, dormakaba will disclose the comparable figures of the former operating model in the Notes to the Consolidated Financial Statements for the full financial year 2021/22.

Region Asia Pacific (including Middle East) achieved total sales of CHF 574.0 million in the financial year 2021/22 compared to CHF 462.1 million in the previous year. Organic sales grew by 11.3% year-on-year. Growth was supported by projects such as hotels and hospitals in Greater China and Southeast Asia, convention centers in India, government and commercial projects in the Middle East, and a major residential project in Sydney with the resivo cloud-based access control system and complete door hardware, mechanical key and entrance systems packages.  

The first half of 2021/22 experienced better growth compared to the second half due to some catch-up demand compared to the previous year when the industry was faced with even more Covid-19-related project delays. Business continued to be impacted by the pandemic particularly affecting the economy in China, with further regional lockdowns and delays in re-opening offices and borders.

All major Markets contributed to growth. India, Southeast Asia, and the Middle East posted strong double-digit growth, while the remaining Markets Greater China and Pacific also contributed to growth despite the negative impact from lockdowns. Continued good growth momentum came from the business with touchless access solutions; for example, sales for touchless solutions in Hong Kong increased by around 50% in 2021/22 versus the previous year. And there was strong double-digit growth in Door Hardware, Entrance Systems, Lodging Systems, and Mechanical Key Systems. Growth for commercial solutions in Greater China such as in Lodging Systems overcompensated for the negative effects of the lockdowns as well as some weakness in the residential market.

Adjusted EBITDA increased to CHF 108.7 million (previous year: CHF 85.4 million), with an adjusted EBITDA margin of 18.9% (previous year: 18.5%). The slightly higher margin was supported by good volume growth that overcompensated a negative product mix resulting from stronger sales in the lower margin OEM business for the US market (Wah Yuet) and by some low-gross-margin projects in India and Southeast Asia. The Region was able to increase sales prices in line with raw material prices, reflecting a slightly higher gross margin in the second half versus the first half of the year.

Region Asia Pacific expects moderate growth in the financial year 2022/23. This is due to a strong comparable base and to limited visibility as business in China and other countries might continue to be impacted by the Covid pandemic.

Asia Pacific will continue to increase sales prices where necessary to offset cost inflation. Organic growth will be bolstered by a good project pipeline in the commercial, healthcare, government, residential, and hospitality sectors.

As of 12 January 2022, the Region is being led by a new President, Andy Jones. Andy and his team have started to execute the new strategy Shape4Growth to accelerate profitable growth. This includes a focus on core verticals and the Region’s core countries India, China, and Australia. Growth in Australia will continue to be supported by the acquisition of Australian Reliance Doors and Best Doors Australia Groups (RELBDA, 31 August 2021). The country organization already realized initial synergies and generated a strong order intake by selling RELBDA products combined with digital door lock technology from dormakaba.

Key figures – Region Asia Pacific

Sales (CHF million) - Region Asia Pacific