Company Announcements

Ad hoc announcement pursuant to Art. 53 LR

• Strategy execution moving from “Shape” to “Growth”
• Continued focus on execution of ongoing transformation program 
• Adding commercial transformation with cost savings of CHF 40 million by 2027/28 
• Complexity reduction in product offering, starting with streamlining of door closer portfolio delivering at least CHF 10 million of savings by 2027/28, and another CHF 10 million beyond
• Grow North American market at GDP plus 2% per annum over the next three years 
• Reiterated mid-term targets 2025/2

Rümlang, 20 November 2024 – Till Reuter, CEO dormakaba, comments: “We are making good progress on our strategic transformation, delivering consistent tangible results. Execution remains key to achieving our mid-term targets. Our strong position within this attractive industry allows us to gradually pivot from reshaping our foundation to focusing on further growth. With new initiatives, we are freeing up resources to reinvest in innovation and go-to-market strategies. This will enable us to provide even greater value for our customers.”

“dormakaba is ready to take the next step in becoming the leading access solutions provider, uniquely combining the physical and digital worlds. Our strategy not only strengthens our core business but also positions us to lead in innovation, improve the customer journey, and expand our sustainable impact. By focusing on both the ongoing transformation and future growth, we are creating a dynamic, forward-looking company that meets the evolving needs of our customers.”

dormakaba today hosts the Capital Markets Day 2024 at its headquarters in Rümlang to provide investors and analysts with an update on its strategy. The strategy is focused on transforming the company to reach its full potential and drive profitable growth. In 2023/24, execution of the strategy delivered tangible results with efficiency and cost improvements through the transformation program. 

Well positioned to operate in an attractive industry with a holistic global offering
dormakaba operates in one of the most attractive sectors in the industrial goods industry, a resilient and late-cyclical market that consistently outpaces GDP growth. This industry’s expansion is driven by powerful megatrends, coupled with emerging developments in construction that are shaping and accelerating change in the access solutions market.

dormakaba is well positioned to leverage these megatrends with a holistic, global portfolio of products and solutions tailored for a wide range of verticals. With key competencies in both electro-mechanical and digital technologies, the company is well-equipped to meet evolving customer needs. Its strong emphasis on refurbishment and retrofitting allows the company to deliver value throughout the entire building lifecycle. This approach uniquely positions dormakaba to maximize the potential of its installed base and drive upselling opportunities through advanced, technology-driven solutions that help customers enhance efficiency and sustainability. 

Taking the next step: From Shape to Growth with three value drivers
dormakaba is now taking the next step in strategy implementation, advancing from "shape" to "growth" by focusing on three value drivers – Elevate Performance, Reduce Complexity, and Innovate & Grow – and underpinned by a leading position in sustainability: 

Elevate Performance

• Continued stringent execution of the transformation program as announced in July 2023. 
• While execution of the ongoing program remains key, additional initiatives are launched to drive commercial transformation with regard to productivity, shared business services, and automation and digitalization. These additional initiatives are expected to deliver CHF 40 million in savings by the end of financial year 2027/28 with one-off costs of CHF 60 million.
• Create a global performance culture to underpin a growth mindset and customer centricity. 

Reduce Complexity 

• Introduce one global R&D roadmap to gain more market impact: Focus on major opportunities, aligned with key markets for a synchronized go-to-market approach 
• Streamline access control solutions portfolio: Software platforms to be consolidated to at least half the number
• Streamline hardware portfolio: Starting with door closers, build a modular portfolio based on customer needs. This initiative is expected to deliver savings of at least CHF 10 million by 2027/28, and another CHF 10 million beyond.
• Develop global supply chain towards resilience, simplicity, and cost efficiency: Optimize best-cost country share while capitalizing on a strong local-for-local operations footprint. 
• Continuous business portfolio review: Divest under-critical business, reduce unprofitable business, and optimize go-to-market by leveraging market hub structures

Innovate & Grow

• Innovation centered on evolving products to be connected and interoperable, and integrating them seamlessly in a unified ecosystem
• Grow market North America: Strengthen market position by focusing on selected geographies and go-to-market and improve commercial productivity by simplifying and automating elements of the customer journey. The goal is to deliver growth of nominal GDP plus 2% per annum in the North American market over the next three years.
• Grow verticals: Grow selected verticals with big potential such as multi-housing and global hospitality while expanding the currently strong presence e.g. in industrial, offices, and airports. 
• Accelerate growth by participating in ongoing industry consolidation 

On track to achieve mid-term targets 
dormakaba has an attractive business and financial profile characterized by limited volatility, low capital intensity, and attractive profitability.

With its financial performance getting traction, the company reiterates its mid-term targets of an annual organic sales growth of 3-5%, 16-18% adjusted EBITDA margin reached in 2025/26, and a Return of Capital Employed (ROCE) of above 30% from 2025/26 onwards. 

With the ongoing transformation, the company will reach the range of 16% to 18% adjusted EBITDA while the additional savings will allow to further progress within the range. Current and new initiatives will deliver through June 2026 and beyond. 

Further information
Today’s Capital Markets Day starting at 9:00 a.m. CET will be held in English and will be broadcast live on the dormakaba website www.dormakabagroup.com.

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This communication 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 reflect the current judgement of the company, involve risks and uncertainties and 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 outside of the company's and the Group's control 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. Except as required by applicable law or regulation, the company accepts no obligation to continue to report, update or otherwise review such forward-looking statements or adjust them to new information, or future events or developments. 
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