Segment Access Solutions APAC

AS APAC achieved total sales of CHF 261.1 million in the first half of financial year 2021/22. Organic sales grew by 20.0% year-on-year. Growth was supported by projects such as Lodging’s work on eleven hotels built for the Winter Olympics in China. Further impetus came from 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, with regional lockdowns and delays in re-opening offices and borders.

All major regions contributed to growth. China, India, and Southeast Asia posted strong double-digit growth while the region Pacific, Japan & Korea saw modest growth. All Product Clusters contributed to this positive trend with double-digit growth rates. Continued good momentum came from Services, electronic products such as digital locks, and business with touchless access solutions in China. dormakaba is well-positioned here as one of the market leaders in the premium sector. Growth for commercial solutions in China overcompensated for some weakness in the residential market, which was impacted by cash flow issues at some real estate companies. There was also strong growth in India: the segment has strengthened its position in Electronic Access & Data in this market with the acquisition of Indian company Solus Security Systems on 15 July 2021. Solus supplies integrated solutions for access control, time and attendance, visitor management, vehicle access and security, as well as providing the services required for managing these solutions.

Adjusted EBITDA increased to CHF 35.0 million (previous year CHF 28.6 million), with an adjusted EBITDA margin of 13.4% (previous year 14.7%). The lower margin was caused by 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.

In the second half of financial year 2021/22, AS APAC will continue to increase sales prices to offset cost inflation. Barring new waves of Covid-19 and further deterioration of the supply chain, AS APAC expects an improved gross margin due to the lower impact of specific margin-dilutive projects and to price increases in 2021 supported by further increases in the first months of 2022. Organic growth will be bolstered by projects including work at several military bases in Japan, convention centers in India and hospitals in Greater China, as well THE FACE Suites in Kuala Lumpur (Hotel & Residences). The segment expects good organic sales growth for financial year 2021/22, though with a lower growth rate in the second half of 2021/22 due to a high comparable base.

The segment has started to execute the new strategy Shape4Growth to accelerate profitable growth. This includes a focus on core verticals and core countries like India, China, and Australia. Growth in Australia will be supported by the recent acquisition of Australian Reliance Doors and Best Doors Australia Groups (RELBDA), which was completed on 31 August 2021. The segment has already realized initial synergies by selling RELBDA products combined with digital door lock technology from dormakaba. The second half of financial year 2021/22 will also see the segment start to supply the landmark One Sydney Harbour project with the resivo cloud-based access control system and complete door hardware, mechanical key and entrance systems packages.

On 12 January 2022 Andy Jones was appointed as new President of the segment, succeeding Jim-Heng Lee, who became CEO of dormakaba Group. Andy Jones joined dormakaba in 2007 and has held several leadership positions within the company, most recently as Senior Vice President Pacific, Japan & Korea.

Key figures – segment AS APAC

Segment sales (CHF million) – AS APAC