dormakaba (DOKA) CMD 2024 summary

Strategic direction and market positioning

• Executing the Shape4Growth program with a focus on operational excellence, cost efficiency, and digital innovation, targeting CHF 210 million in total savings by FY 2027/28, including CHF 40 million from commercial transformation.

• Strong emphasis on reducing complexity, including halving software platforms and streamlining hardware portfolios, with significant SKU reduction in door closers targeting at least CHF 20 million in savings.

• Commitment to innovation and digital transformation, with a global R&D roadmap, connected and intelligent products, and ecosystem partnerships.

• Strategic focus on commercial (non-residential) markets, with 90% of business in this segment, leveraging a CHF 20 billion installed base for future service growth.

• Expansion in North America prioritized for GDP plus 2% growth per annum over the next three years, supported by local-for-local production and targeted verticals such as airports, hospitality, and data centers.

Financial guidance and performance

• Reaffirmed mid-term targets for FY 2025/26: 3–5% organic sales growth, 16–18% adjusted EBITDA margin, and ROCE above 30%.

• Achieved 4.9% organic growth and 14.7% adjusted EBITDA margin in FY 2023/24, with ROCE at 29.0%.

• Transformation and restructuring costs will be phased over three years, with most savings realized toward the end of the period.

• Capital allocation priorities include maintaining a strong balance sheet, funding organic growth, pursuing value-accretive acquisitions, and delivering attractive shareholder returns.

• No trade-off between sustainability and profitability; energy efficiency and sustainability are integral to product development and future offerings.

Operational and organizational initiatives

• Ongoing shift from regional to functional organization to reduce duplication and improve efficiency, including divestments and changes in go-to-market models in smaller or less profitable markets.

• Investment in best-cost country production hubs (e.g., Mexico, Bulgaria, Malaysia) to support local-for-local strategies and supply chain resilience.

• Enhanced focus on customer journey and lifetime value, with digital tools and service offerings such as EntriWorX and MotionIQ to reduce planning, installation, and operational costs for customers.

• Ecosystem approach to product development, partnering with technology firms for features like face recognition and self-service security, while maintaining core hardware expertise.

• Ongoing IT and ERP harmonization to support scalable growth and process efficiency, with a three-year rollout plan.