1. business and industrial
2. company
3. merger and acquisition

Kaba invests and transforms for the future
CAPITAL MARKET DAY 13 NOVEMBER 2014
Riet Cadonau, CEO
Beat Malacarne, CFO
Agenda
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Kaba Group
Investment cycle: achievements and goals
Acquisitions
FY 2013/2014: achievements and financials
Guidance and mid-term targets
Summary and conclusion
Capital Market Day 2014 © Kaba
13.11.2014
3
Stability in a dynamic environment
Security market total: approx. CHF 120 billion
Accessible market segments relevant to Kaba: approx. CHF 40 billion
2/3 Installed base
1/3 New customers
Customer requirements
Four growth drivers
Capital Market Day 2014 © Kaba
13.11.2014
4
Our current regional presence in the global market
EMEA
Sales in CHF million
586.8
Employees (Ø)
2,967
ASIA PACIFIC
Sales in CHF million
118.7
AMERICAS
Employees (Ø)
Sales in CHF million
3,210
298.0
Employees(Ø)
1,561
Capital Market Day 2014 © Kaba
13.11.2014
5
Divisional goals for FY 2014/2015
ADS EMEA
Gain market
share
ADS AP
Keep market
share
ADS AM
Gain market
share
KS
Gain market
share
Capital Market Day 2014 © Kaba
13.11.2014
6
Our goal: profitable growth
PROFITABLE GROWTH
Growth
Operational efficiency
Organic growth
Process optimization/
Cost structure
Investment in markets
Various programs
Investment in innovations
Acquisitions
Criteria
Priorities
Capital Market Day 2014 © Kaba
13.11.2014
7
Kaba’s strategy for profitable growth is founded on
our commitment to:
 innovation leadership in Access + Data Systems and cost leadership in Key Systems
 investing in organic growth to increase our global market presence and strengthen
our competitive position
 strategic acquisitions and alliances
 operational efficiency to ensure high profitability and a strong basis for growth
 enhancing our brand value globally
 delivering customer-driven and customer-focused products, solutions and services
 attracting, developing and retaining competent and passionate associates and
leadership that encourages and empowers people
Capital Market Day 2014 © Kaba
13.11.2014
8
Investment cycle:
achievements and goals
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Kaba Group
Investment cycle: achievements and goals
Acquisitions
FY 2013/2014: achievements and financials
Guidance and mid-term targets
Summary and conclusion
Capital Market Day 2014 © Kaba
13.11.2014
9
Organizational change
> decentrally-organized set of
companies
> divisionally-steered industrial
group
Capital Market Day 2014 © Kaba
13.11.2014
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The changes around Kaba
Time
Technology
Now
Mechanical
Electronic
Software as
a Service
Facility Manager
Head of Security
Chief Information
Officer
Stakeholders
 Customers
 Investors
 Employees
Standards for governance, compliance; sustainability
Welder
Precision engineer
Competitors
Software engineer
Consolidation
International
Local
Global
New competitors?
Capital Market Day 2014 © Kaba
13.11.2014
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What we achieved so far (1)
Accentuated strategy: from “Total Access” to
innovation leadership for Access + Data Systems
and cost leadership for Key Systems
Benefit
1. Strategy fits business
2. Clear goals for each business
3. Distinct market positioning for brand
Capital Market Day 2014 © Kaba
13.11.2014
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What we achieved so far (2)
Clean-up divisional structure:
 Dissolution Industrial Locks division
 Division Key Systems under one leadership
 Split division ADS EMEA/AP into ADS EMEA
and ADS AP
Benefit
1. Clearly defined market access
2. Transparent reporting
3. Optimized focus and management attention
Capital Market Day 2014 © Kaba
13.11.2014
13
What we achieved so far (3)
Strengthening of divisions
 Focus local units
 Centralized divisional functions
 Uniform structure in all divisions
Benefit
1. Clear contact point to customer/market
2. Bundling of competencies
3. Effective collaboration between divisions
Capital Market Day 2014 © Kaba
13.11.2014
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What we achieved so far (4)
Group Innovation Management
 Aligned innovation roadmaps
 Corporate patent and IP management
 Portfolio management
 Build-up learning organization across
decentralized R+D centers
 Strategic innovation projects for securing
our future: e.g. Trusted Services
Benefit
1. Bundling and coordination of innovation
activities to avoid redundancies
2. Innovations to meet customers’ needs
3. Protect customers’ investments systematically
Capital Market Day 2014 © Kaba
13.11.2014
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What we achieved so far (5)
Strengthen Group functions and programs
> Group HR, M+A, IT, COM, Procurement, Tax,
Treasury
 E.g. Talent and Management Development
 Coordination/Lead Group-wide projects
Benefit
1. Effectively meeting needs of various
stakeholder groups
2. Process improvement,
e.g. cash management
3. Foster competencies
Capital Market Day 2014 © Kaba
13.11.2014
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Where do we go from here
Next steps
> Build-up ADS AP division
> Continue investing in markets (organically
or acquisitions), e.g. Asia Growth Plan
> Continue investing in innovation
> Continue investing in operational efficiency,
e.g. establish Group Pricing
Benefit
1. Strengthen position in AP
2. Continue bundling our activities to achieve
critical mass and to become more effective
3. Continue improving our processes and
products to better meet customer and other
stakeholder requirements
Capital Market Day 2014 © Kaba
13.11.2014
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Acquisitions
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Kaba Group
Investment cycle: achievements and goals
Acquisitions
FY 2013/2014: achievements and financials
Guidance and mid-term targets
Summary and conclusion
Capital Market Day 2014 © Kaba
13.11.2014
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Acquisition criteria
> Strategic fit and complementary (product and/or
geography and/or value chain)
> Critical mass
> Own technology/offering/intellectual property
> Customer base (= installed base), geographic extension
STRATEGY
FINANCIAL PERFORMANCE
> Profitable business (track record)
> Potential for profitable growth above market
> Management/key people: strength, retention and value fit
> Purchase price: properly valued and accretive
(value/EPS enhancing)
Capital Market Day 2014 © Kaba
13.11.2014
EXECUTION
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Current acquisition priorities
Primarily acquisitions for Access + Data Systems
(but selected acquisitions for Key Systems still possible):
> Emerging Markets
(particularly Asia, but also South America)
> “White Spots” (= developed countries/regions with
subcritical market share) and “Add-ons” (= technology,
complementary and/or adjacent product groups)
Capital Market Day 2014 © Kaba
13.11.2014
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Acquisitions 2013 and 2014
Division
Country/
Date
Emerging
markets
KS
Colombia
Feb 2013
X
ADS AP
China
Aug 2013
ADS AM
Brazil
Feb 2014
ADS AP
India
Jul 2014
ADS AM
Canada
Oct 2014
KS
UK
Nov 2014
Capital Market Day 2014 © Kaba
White
spots
Addon
> Local base SAM
10
> Localized products
> Established distribution
network
25
> Localized products
> Established distribution
network
22
> Localized products
> Established distribution
network
X
18
> Complementary product
group
> New sales channels
X
10
> Complementary product
group
X
X
13.11.2014
Benefit
3.5
X
X
Sales in
CHFm,
approx.
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FY 2013/2014:
achievements and financials
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Kaba Group
Investment cycle: achievements and goals
Acquisitions
FY 2013/2014: achievements and financials
Guidance and mid-term targets
Summary and conclusion
Capital Market Day 2014 © Kaba
13.11.2014
22
Kaba Group FY 2013/2014: achievements
> Sales cross 1 billion mark: CHF 1003.5 million
> Growth target exceeded:
organic* growth 5.2% at Group level
> EBITDA margin of 15.5% within target range
> Acquisitions in emerging markets:
Probuck in China, Task in Brazil, Dorsët Kaba in India
*in local currency
Capital Market Day 2014 © Kaba
13.11.2014
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Key figures FY 2013/2014
FY 2013/2014
FY 2012/2013
(restated)
1,003.5
964.3
155.3
152.9
15.5%
15.9%
84.6
85.3
Total current assets
445.3
495.8
Total non-current assets
501.4
468.4
Total liabilities
351.8
380.4
Equity
594.9
583.8
62.8%
60.5%
105.0
110.2
10.5%
11.4%
in CHF million
P+L
Net sales
EBITDA
EBITDA margin
Net profit
Balance sheet
Equity ratio
Cash flow statement
Net cash from operating activities
Cash flow margin
Capital Market Day 2014 © Kaba
13.11.2014
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Divisional performance
EBITDA CONTRIBUTION BY DIVISION
THIRD-PARTY SALES BY DIVISION
17.3%
19%
58%
22%
ADS EMEA/AP
ADS EMEA/AP
ADS AM
ADS AM
43.4%
KS
Other
Other
38.5%
EBITDA MARGINS
GROWTH FY 2013/2014
Organic
4.9
Acquisitions
1.3
Currency
impact
- 2.0
ADS AM
5.2
2.5
- 4.1
Key Systems
6.8
1.2
- 2.6
Kaba Group
5.2
1.6
- 2.6
Growth in % sales
ADS EMEA/AP
KS
EBITDA in % sales
ADS EMEA/AP
FY 13/14
FY 12/13*
13.5
14.2
ADS AM
29.6
29.0
Key Systems
16.3
16.0
Kaba Group
15.5
15.9
*restated
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13.11.2014
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Net liquidity and gearing
FY ended
30.06.2014
FY ended
30.06.2013
(restated)
FY ended
30.06.2012
Net debt*
- 35.4
-56.1
- 11.7
EBITDA
155.3
152.9
151.2
Gearing
- 0.2
- 0.4
- 0.1
in CHF million
*-net debt = net liquidity
06/2014
06/2013
06/2012
150
100
Cash and cash equivalents
50
Debt
0
Net liquidity
-50
-100
-150
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13.11.2014
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Dividend pay-out 2014
> 40% - 60% of consolidated net profit
POLICY
CHF
per share
7.00
2010: regular pay-out
2011: double pay-out (CHF 7.00 + 7.00) due to
sale of Door Automation
CHF
in % of
million net profit
26.6
30.7%
14.00
53.2
24.1%
9.00
34.2
41.2%
2013: regular pay-out
11.00
41.9
49.1%
2014: regular pay-out
11.00
42.0
49.6%
2012: pay-out incl. extra dividend CHF 2.00
Dividend yields 2014/2015: low 2.5% / high 3.1%
(based on share prices 2013/2014: low CHF 356 / high: CHF 447)
Pay-out from reserve from capital contribution
(balance 30 June 2014: CHF 433.5m)
Capital Market Day 2014 © Kaba
13.11.2014
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Guidance and mid-term targets
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Kaba Group
Investment cycle: achievements and goals
Acquisitions
FY 2013/2014: achievements and financials
Guidance and mid-term targets
Summary and conclusion
Capital Market Day 2014 © Kaba
13.11.2014
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Economic environment: growth potential
GDP growth in %
World
China
10
8
6
4
2
0
-2
10
8
6
4
2
0
-2
11
12
India
13
14
15
16
ASEAN
10
8
6
4
2
0
-2
12
13
14
15
16
17
11
12
13
14
15
16
17
13
14
15
16
17
14
15
16
17
12
13
14
15
16
17
16
17
Euro zone
10
8
6
4
2
0
-2
12
11
USA
10
8
6
4
2
0
-2
13
10
8
6
4
2
0
-2
CEE
11
12
Latin and South America
10
8
6
4
2
0
-2
11
11
17
10
8
6
4
2
0
-2
11
12
13
14
15
16
17
11
12
13
14
15
Source: International Monetary Fund, October 2014
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13.11.2014
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Guidance for financial year 2014/2015
Guidance as of
12 September 2014
Market development
(GDP)
Europe: moderate growth
Americas: fair growth
Asia Pacific: moderate growth
Net sales organic*
growth
3.0% - 5.0%, provided stable economies
EBITDA margin
On level of 2013/2014 financial year,
provided stable economies
*in local currency
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13.11.2014
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Mid-term targets:
estimated EBITDA margin development
1.0% - 1.5%
1.0% - 1.5%
15.5%
Markets
Current
Capital Market Day 2014 © Kaba
18.0%
Innovation
+ 2.4%
13.11.2014
Operational
efficiency
Mid-term
31
Summary and conclusion
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Kaba Group
Investment cycle: achievements and goals
Acquisitions
FY 2013/2014: achievements and financials
Guidance and mid-term targets
Summary and conclusion
Capital Market Day 2014 © Kaba
13.11.2014
32
Summary
KABA IS
> a stable value in a dynamic world
> a healthy company with strong balance
sheet
> anticipating and adapting well to the
changes in its environment
to be the preferred partner for our customers,
employees and investors also in the future.
Capital Market Day 2014 © Kaba
13.11.2014
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Conclusion
ON TRACK FOR SUSTAINABLE
PROFITABLE GROWTH
We will continue to invest above-average in
markets, product innovation and infrastructure
in order to develop our market positions and
to strengthen our long-term competitiveness.
Capital Market Day 2014 © Kaba
13.11.2014
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Kaba Group: ADS Americas division
CAPITAL MARKET DAY 13 NOVEMBER 2014
Michael Kincaid, COO ADS Americas
Agenda
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At a glance
Go-to-market
Strategy
Conclusion
Product presentation
Capital Market Day 2014 © Kaba
13.11.2014
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ADS Americas sites
> Canada:
> Montreal, QC (Lodging Products)
> Whitby, ON (Keyscan)
> USA:
> Winston-Salem, NC (Cylinders + Locks)
> Lexington, KY (Safe Locks)
> Madison Heights, MI (Lodging Products)
> Miramar, FL (Workforce Management)
> Mexico: Mexico City
> Brazil:
> Rio de Janeiro
> São Paulo
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13.11.2014
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ADS Americas: facts + figures
HEADCOUNT PER REGION
KEY FIGURES
2013/2014
Sales
2012/2013
(restated)
237.9
230.4
Organic growth
5.2%
- 3.6%
EBITDA margin
29.6%
29.0%
1,016
926
(in CHF million)
FTE (Ø)
22% OF THIRD PARTY GROUP SALES FY 2013/2014
Capital Market Day 2014 © Kaba
USA
Canada
Brazil
Mexico
Other
38.5% OF EBITDA GROUP FY 2013/2014
13.11.2014
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Go-to-market
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At a glance
Go-to-market
Strategy
Conclusion
Product presentation
Capital Market Day 2014 © Kaba
13.11.2014
39
ADS Americas: our business
Strategic product groups
Business segments
Cylinders + Locks
Access Control
Access Management
Workforce Management
Workforce Management
Physical Access Systems
Physical Access Systems
Hospitality Products
Lodging
Safe Locks
Safe and Container Locks
Capital Market Day 2014 © Kaba
13.11.2014
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ADS Americas: business channels and customers
(1)
Access Control
Mechanical/electronic locking
systems; pushbutton locks with
PIN code; keyless
access control systems
Indirect
SALES PER CHANNEL IN %
Security
hardware
wholesellers
Indirect
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13.11.2014
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ADS Americas: business channels and customers
(2)
Workforce Management
Applications (software, hardware)
for recording time, personnel
and enterprise data
Direct
Indirect
Corporations
OEM
SALES PER CHANNEL IN %
Direct
Indirect
Capital Market Day 2014 © Kaba
13.11.2014
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ADS Americas: business channels and customers
(3)
Physical Access Systems
Tripod barriers, sensor barriers
and security interlocks such as
self-boarding gates
Direct
Indirect
Airlines,
airports
Integrators
SALES PER CHANNEL IN %
Direct
Indirect
Capital Market Day 2014 © Kaba
13.11.2014
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ADS Americas: business channels and customers
(4)
Lodging – Hotels
Hotel locks and access control
systems
Direct
Indirect
Hotels
E.g.
construction
contractor
SALES PER CHANNEL IN %
Direct
Indirect
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13.11.2014
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ADS Americas: business channels and customers
(5)
Lodging – Multihousing
Mechanical and electronic
pushbutton locks, mechanical and
electronic locks with RFID and
mobile technology
Direct
Indirect
Facility owners
E.g. contract
hardware
distributor
SALES PER CHANNEL IN %
Direct
Indirect
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13.11.2014
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ADS Americas: business channels and customers
(6)
Lodging – Temporary Stay
Locks and Web-based access
management system for travel and
vacation rental market
Direct
SALES PER CHANNEL IN %
Facility owners
Direct
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13.11.2014
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ADS Americas: business channels and customers
(7)
Safe and Container Locks
Electronic high security locks, ATM
locks, safe and container locks
Direct
Indirect
E.g. ATM
manufacturers,
Government
Security
hardware
wholesellers
SALES PER CHANNEL IN %
Direct
Indirect
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13.11.2014
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ADS Americas: markets and market positioning (1)
Access Management
Cylinders + Locks
Kaba Group revenue per region
Kaba Group revenue per region
Americas
Americas
EMEA
EMEA
Asia Pacific
Asia Pacific
Main competition
Assa Abloy
Allegion
Stanley B&D
Main competition
Lenel (UTC)
Honeywell
Siemens
Kaba: #4 (North America: Pushbutton locks #1)
Kaba: #4 (North America: #6)
Based on figures FY 2013/2014
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13.11.2014
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ADS Americas: markets and market positioning (2)
Workforce Management
Physical Access Systems
Kaba Group revenue per region
Kaba Group revenue per region
Americas
Americas
EMEA
EMEA
Asia Pacific
Asia Pacific
Main competition
Kronos
Amano/Horoquarz
Main competition
Gunnebo
Boon Edam
Automatic Systems, Record
Kaba: #3 (North Americas: #2)
Kaba: #2 (North Americas: #6)
Based on figures FY 2013/2014
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13.11.2014
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ADS Americas: markets and market positioning (3)
Hospitality Products
Safe Locks
Kaba Group revenue per region
Kaba Group revenue per region
Americas
Americas
EMEA
EMEA
Asia Pacific
Asia Pacific
Main competition
Vingcard (Assa Abloy)
Onity (UTC)
Salto, MIWA
Main competitors
Sargent&Greenleaf
Intergard Brasil
Securam
Kaba #2 (North America: #1)
Kaba: #1 (North America: #1)
Based on figures FY 2013/2014
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13.11.2014
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Strategy
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>
>
At a glance
Go-to-market
Strategy
Conclusion
Product presentation
Capital Market Day 2014 © Kaba
13.11.2014
51
Accentuated Kaba Group strategy
Access + Data Systems
Key Systems
EMEA
Americas
Asia Pacific
Innovation leadership
Capital Market Day 2014 © Kaba
Cost leadership
13.11.2014
52
Strategy for ADS Americas: innovation leadership
This means for ADS Americas
> Combine hardware and software sets into integrated security systems
that solve customers’ needs in our vertical markets
> Being at forefront of industry trends, such as mobile credentials,
and converting them into products, e.g. for our hotel customers
> Leveraging patented Kaba technology from one product group
to another
> Cloud-based solutions for customers evolving security and
management needs
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13.11.2014
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Kaba Group goal: profitable growth
PROFITABLE GROWTH
Growth
Operational efficiency
Organic growth
Process optimization/
Cost structure
Investment in markets
Various programs
Investment in innovations
Acquisitions
Criteria
Priorities
Capital Market Day 2014 © Kaba
13.11.2014
54
ADS Americas: investment in markets
Growth
Organic growth
Investment in markets
> Market expansion with global
ADS products:
> Hospitality Products, Safe Locks
Investment in innovation
> Global business ownership,
regional market management
Acquisitions
> Product structure supporting
localization
Criteria
Priorities
> Expansion in new market segments
in mature markets
> Strengthening of operations in
emerging markets
Capital Market Day 2014 © Kaba
13.11.2014
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ADS Americas: investment in innovation
Growth
Organic growth
Investment in markets
Technology trends in North America
> RFID advancing significantly, with
greater emphasis on end-to-end security
Investment in innovation
> Mobile credentials: Kaba mobile access
solutions
Acquisitions
> Wireless (Zigbee) for commercial access
control applications
Criteria
Priorities
Capital Market Day 2014 © Kaba
> Appliances & Cloud versus traditional
client-server software applications
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ADS Americas: investment in acquisitions (1)
Growth
Organic growth
Investment in markets
Investment in innovation
Acquisitions
Criteria
Priorities
> Two acquisitions in 2014
> Task Sistemas de Computaçao S/A
Brazil
> Emerging market Brazil
> Substantial customer base, three
local offices as well as own assembly
operation and Brazil-wide distribution
network with more than ten partners
> Localized products
> Dedicated PMI manager on site
> PMI on track
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ADS Americas: investment in acquisitions (2)
Keyscan Inc. (Canada)
> Fri 31 October 2014 (signed and closed)
> Networked electronic access control added to
ADS Americas product offering  allows us
to bid for complete access control solutions
for commercial buildings
> Access through ‘low voltage wholesalers’ to a
large established network of integrators and
security dealers which are new business
channels for Kaba
> Potential cross-selling synergies
> Products to be made available throughout
the Americas region
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ADS Americas: operational efficiency (1)
Operational
efficiency
Process optimization/
Cost structure
> Lean manufacturing
> Supply chain management
> Product engineering
> Pricing
Various programs
Capital Market Day 2014 © Kaba
> First program successfully
implemented, others started up
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ADS Americas: operational efficiency (2)
Lean manufacturing
> Improve processes
> Improve assembly methods
> Order process time, delivery time
> Waste/scrap reduction
Supply chain
management
> Supplier management
> Maximize sourcing in low cost countries
> Final assembly near to the customer for
customization
Product engineering
> Optimize materials used
> Optimize design
> Tailor functions to specific needs
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ADS Americas: operational efficiency (3)
MT 1
Example:
product engineering MT lock
MT 2
UNIT COST DEVELOPMENT
20.00
15.00
MT 4
10.00
5.00
0.00
MT1
Capital Market Day 2014 © Kaba
MT2
MT4
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Conclusion
>
>
>
>
>
At a glance
Go-to-market
Strategy
Conclusion
Product presentation
Capital Market Day 2014 © Kaba
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62
ADS Americas as part of Kaba Group
in CHF million
Kaba Group
Net operating assets (as of 30.6.2014)
EBIT
FY 2013/2014
579.1
123.6
RONOA
21.3%
ADS Americas Net operating assets (as of 30.6.2014)
EBIT
172.7
66.0
RONOA
Significant
value
contributor
38.2%
> ADS Americas goal for mid-term targets: maintain profitability in %
at FY 2013/2014 level, i.e. at around 30% EBITDA margin
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Conclusion
ADS Americas
> High profitability contribution to Kaba Group
> Direct go-to-market in attractive verticals
> Good growth in core markets and
opportunities in emerging markets
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Innovation at Kaba Group
CAPITAL MARKET DAY 13 NOVEMBER 2014
Dr. Andreas Häberli, Chief Technology Officer
Investments in R+D substantially increased
IN % OF NET SALES
8.0%
6.0%
+ CHF 19 million
4.0%
2.0%
0.0%
2010/2011
Capital Market Day 2014 © Kaba
2011/2012
2012/2013
2013/2014
13.11.2014
2014/2015
2015/2016
66
Strategy for ADS divisions: innovation leadership
Kaba is best-in-class to transform a
trend or a customer demand sustainably
into a unique customer value in order to
grow profitably and shape the future of
our industry.
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Kaba’s innovation portfolio
Market trends /
customer
requirements
Group strategy
and
outset
Technology
trends
Kaba’s innovation portfolio
Capital Market Day 2014 © Kaba
13.11.2014
68
Market and technology trends
> Market and technology trends
> Kaba’s innovation portfolio
> Case study: Kaba Mobile Access Solutions
> Demonstration
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13.11.2014
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Kaba’s innovation portfolio
Market trends /
customer
requirements
Group strategy
and
outset
Technology
trends
Kaba’s innovation portfolio
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Our customers’ expectations
What are my benefits?
I want to share!
I want everything on my
mobile!
Is it secure?
I do not want any
hassle
Why planning?
I expect flexibility!
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I expect plug and play
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I expect quality
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Our customers’ expectations translated
Value not products: product
What are my added
and its features are only a
benefits?
means
to an end
Offices, homes,
I want to share!
cars, bikes, …
everything
on my
>I want
Choice
and control
> Everything
is connected
mobile!
To get answers
concerning
security and
Is it secure?
privacy
I do notservices
want any
Seamless
from
ordering
to support!
hassle
Why planning?
On-demand
I expect flexibility!
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> Intuitive use
>
Usability
is key
I expect
plug
and play
> Need to individualize
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A security system
I expect quality
simply has to work!
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Kaba’s innovation portfolio
Market trends /
customer
requirements
Group strategy
and
outset
Technology
trends
Kaba’s innovation portfolio
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“Hype cycle” of emerging technologies
Expectations
IOT
NFC
Cloud
BLE
IOT
Internet of Things
Near Field Communication
Cloud Computing
Bluetooth Low Energy
NFC
BLE
Cloud
Innovation
Trigger
Peak of
Inflated
Expectations
Trough of
Disillusionment
Slope of Enlightenment
Plateau of
Productivity
Time
Source: Gartner August 2013 > August 2014
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Kaba’s innovation portfolio
> Market and technology trends
> Kaba’s innovation portfolio
> Case study: Kaba Mobile Access Solutions
> Demonstration
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Kaba’s innovation portfolio
Market trends /
customer
requirements
Group strategy
and
outset
Technology
trends
Kaba’s innovation portfolio:
Achieve balance between short-term goals and
sustainable, profitable growth!
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Innovation portfolio: classification of innovations (1)
Sustaining
innovation
…
Disruptive
innovation
Efficiency
innovation
…
?
Methodology by Prof. Dr. Clayton Christensen, Harvard Business School
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Innovation portfolio: classification of innovations
Influence on
Innovation
Jobs
Capital
Sustaining
little
little
Efficiency
optimize
frees
Disruptive
creates
uses
(2)
Example
Credential
Methodology by Prof. Dr. Clayton Christensen, Harvard Business School
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Innovation portfolio: classification of innovations (3)
Sustaining
innovation
…
Disruptive
innovation
Efficiency
innovation
…
?
Methodology by Prof. Dr. Clayton Christensen, Harvard Business School
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Sustaining innovation: example
Silca Futura
> Electronic key cutting machine
with double-function cutting
process
> Integrated tablet for operation
and remote support
> Maximizing user-friendliness
> Minimal size
> Easy-to-carry
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Efficiency innovation: example
Modular CH
> Higher degree of automation in production
> Reduced inventories
> Flexible length optimizes installation efficiency for Kaba dealers
one insert for different profiles and different form factors
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Disruptive innovation at Kaba (1)
So far
Kaba invests in
Software platforms sold
as a tool
Software platforms offered
as a service =
additional USP
Differentiation over
products as USP
Differentiation over
products remains USP
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Disruptive innovation at Kaba (2):
mobile access in hotels
Kaba
> Sells Trusted Services
(SaaS) to add value to its
products.
Hotel operator
> Streamlined operations
> Increased trip basket via
mobile app
> Customer satisfaction
Guest
> Choice and control
> Straight-to-the-room
> Convenience
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Innovation roadmap: investments distribution
Share in R + D
investment
Share in total number
of innovation projects
Sustaining
Efficiency
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Case study:
Kaba Mobile Access Solutions
> Market and technology trends
> Kaba’s innovation portfolio
> Case study: Kaba Mobile Access Solutions
> Demonstration
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Trusted Services (software platform as a service)
ASK
USER
Trusted Services enable:

Mobile issuing of credentials

For mobile devices

For different markets
(e.g. hotels, corporate, residential)
GRANT
OWNER
GET
USE
SECURE (TRUSTED)
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Kaba’s strategic approach and offering (1)
Kaba affiliate LEGIC
> Core business so far: RFID technology provider
> More than 250 partners with x00’000 installations
> Multi-application for RFID cards (access, T&A, ticketing, …)
> Extended strategy and USP: Software platform as a service for mobile
credential management
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Kaba’s strategic approach and offering (2)
Kaba Mobile Access Solutions
> We leverage on our existing products and solutions
> Additional value for our hospitality customers,
e.g. “choice and control for guests”
> New use cases for our enterprise solutions,
e.g. “improved process efficiency”
> Protect our installed base
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Unique Selling Points
> Broad installed base of LEGIC IDConnect
> Offered to LEGIC’s IDNetwork of > 250 partners!
> Seamless extension of a vast installed basis
> Phones are managed as cards for a smooth transition
(access control, vending, time + attendance, ticketing…)
> Low entry barrier to partners (starter kit)
> Supports various technologies
> Supports existing RFID installations (since 2010)
> Seamless extension of Kaba installed base by mobile use cases
> Supports NFC, BLE on iOS and Android phones
> Hosted in private Kaba cloud
> Kaba as trusted security brand
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Conclusion
Innovation at Kaba
> Innovation leadership as goal for ADS
> R+D investments substantially increased
> Well-balanced innovation portfolio
> Disruptive innovation projects well on track to
support future sustainable profitable growth
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Thank you for your attention!
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IR Agenda 2014/2015
> CS Swiss Equity Midcap Conference
21 November 2014
> Helvea Swiss Equities Conference
16 January 2015
> Publication and presentation of
half-year results 2014/2015
4 March 2015
> Kepler Chevreux – 16th Swiss Seminar
26 March 2015
> Vontobel Summer Conference
21 May 2015
> Publication and presentation of
results 2014/2015
9 September 2015
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Disclaimer
This information contains certain forward-looking statements
including, but not limited to, those using the words “believes”,
“assumes”, “expects” or formulations of a similar kind. Such
forward-looking statements are made on the basis of
assumptions and expectations that the Company believes to be
reasonable at this time, but may prove to be erroneous. Undue
reliance should not be placed on such statements because, by
their nature, they are subject to known and unknown risks,
uncertainties and other factors which could lead to substantial
differences between the actual future results, the financial
situation, the development or performance of the Company or
the Group and those either expressed or implied by such
statements. Such factors include, but are not limited to:
> competition from other companies,
> the effects and risks of new technologies,
> the Company’s continuing capital requirements,
> financing costs,
> delays in the integration of acquisitions,
Should one or more of these risks, uncertainties or other factors
materialize, or should any underlying assumption or expectation
prove incorrect, actual outcomes may vary substantially from
those indicated. In view of these risks, uncertainties or other
factors, readers are cautioned not to place undue reliance on
such forward-looking statements. The Company accepts no
obligation to continue to report or update such forward-looking
statements or adjust them to future events or developments. It
should be noted that past performance is not a guide to future
performance. Please also note that interim results are not
necessarily indicative of the full year results. Persons requiring
advice should consult an independent adviser. This
communication does not constitute an offer or an invitation for
the sale or purchase of securities in any jurisdiction.
Kaba®, Com-ID®, Ilco®, La Gard®, LEGIC®, SAFLOK®,
Silca®, etc. are registered trademarks of the Kaba Group.
Due to country-specific constraints or marketing considerations,
some of the Kaba Group products and systems may not be
available in every market.
> changes in the operating expenses,
> currency and raw material price fluctuations,
> the Company’s ability to recruit and retain qualified
employees,
> political risks in countries where the Company operates,
> changes in applicable law,
> and other factors identified in this publication.
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