Explaining charts
Investor Relations

Letter to the shareholders

Very solid business results

Dear Shareholders

We can look back on an eventful and pleasing 2015/2016 financial year. The merger between Dorma and Kaba to form dorma + kaba was completed on 1 September 2015, and we are pleased to be able to present you with a very solid set of results for the year as a whole.

On a pro forma basis (i.e. as if the merger had already taken place on 1 July 2015), dorma + kaba increased its sales by 2.6 % to CHF 2,302.6 million, compared with CHF 2,244.7 million in the previous year. To make it easier to compare this year’s results with last year’s, we have used the same Swiss franc exchange rate to prepare the figures for both. The company recorded organic growth of 2.3 %, which is at the top of our target range between 1.3 % and 2.3 %. In addition to this, the acquisitions we made in the previous year contributed positively around 0.3 % to overall growth. The EBITDA margin came to 14.4 % on a pro forma basis, compared with 13.5 % in the previous year, which is within the target range for financial year 2015/2016 of 14.1 % to 15.1 %. The increased profitability compared to the previous year is mainly caused by the positive business performance of Access Solutions AMER segment in North America, as well as first cost savings due to the merger.

Market developments

The economic performance during the financial year varied greatly between different regions. The Access Solutions AMER segment benefited from a positive economic environment in North America, posting very good growth thanks to its attractive product portfolio, especially in the Lodging Systems sector.

There was positive growth in parts of Europe during the financial year, which helped the Access Solutions EMEA segment increase its sales, while the Access Solutions DACH segment only managed marginal growth. The Group enjoyed good demand from customers in the UK and Scandinavia, and there was a gradual recovery in demand in Southern Europe. Demand in Middle Eastern and African markets, by contrast, was very subdued owing to economic factors and the consequences of a significant drop in crude oil prices. Eastern European demand was also down overall.

Business at the Access Solutions APAC segment varied from country to country. In the Pacific region, especially Australia, the business benefited from the healthy economic situation and reported a very good performance. Activities in China, by contrast, suffered from a challenging economic environment and were affected by a targeted withdrawal from unprofitable businesses during the year under review.

Sales at the Key Systems segment did not reach the same high level as in the previous year but met expectations. In the financial year 2014/2015, sales at the Key Systems segment benefited from a non-recurring item in the automotive sector (OEM). Solid sales growth and a marked year-on-year improvement in margins at the Movable Walls segment also met the expectations we had for this newly created segment.

Reinforcing innovation as a key success factor

dorma + kaba’s innovative strength plays a crucial role and now more than ever is a key to sustainable, profitable growth. We aim to make the company even more competitive globally by increasing the pace of innovation and accelerating product development and the time-to-market of new products. In addition to substantial investments in developing new and existing products and solutions, the Group will therefore invest in modernizing production facilities and further developing IT systems. We also plan to relocate the production of certain standardized products to Asia, while at the same time strengthening sites such as the one in Ennepetal (Germany) by further building up our competence centers for product development. Synergies from the merger, allied to improved cost structures, will also mean that individual sites will see job reductions or relocations. We will work with local social partners to find as possible socially acceptable solutions for the employees concerned.

Integration process progresses as planned

We have been dealing intensly with the integration since the merger to form dorma + kaba Group was announced in April 2015. Together with our employees we have already achieved a lot. The merger was formally completed on 1 September 2015, which is also when the real integration work began. As planned, dorma + kaba has been operating as ONE company since 1 July 2016. We have achieved all milestones we set for the first year of the integration process. Since the start of the new 2016/2017 financial year, we are now operating within the planned target organization with the newly designed roles and processes, and we are acting globally under the umbrella brand “dormakaba”. We are now entering the next phase of the integration process in line with the timetable and the schedule of milestones. The key priorities in this new phase are the implementation
of defined integration projects, further growth and efficiency initiatives, and the continued development of a consistent corporate culture across dorma + kaba. Our aim is to complete nearly all of the integration process by the end of the 2017/2018 financial year. Our target thus remains the same: Based on the successful merger and ongoing integration, as well as on the continuation of existing strategic business initiatives, we expect to achieve an EBITDA margin of 18 % and organic sales growth of two percentage points above adjusted GDP growth in dorma + kaba’s relevant markets in the 2018/2019 financial year.

Annual General Meeting of 18 October 2016

The ten acting members of the Board of Directors will present themselves for re-election at the General Meeting of 18 October 2016, which will be dorma + kaba Holding AG’s second ordinary Annual General Meeting. The Board of Directors is also asking you, our valued shareholders, to re-elect Ulrich Graf as Chairman of the Board of Directors, and Rolf Dörig, Hans Gummert and Hans Hess as members of the Compensation Committee.


The Board of Directors proposes to the General Meeting to approve an unchanged dividend of CHF 12.00 per share for the 2015/2016 financial year. This corresponds with the Board of Directors targeted pay-out ratio of 50 % of the consolidated net profit after minority interests, if the one-time integration costs incurred in this transitional year are not taken into account.


In the name of the Board of Directors and the Executive Committee, we would like thank you, our shareholders, as well as customers and business partners of the dorma + kaba Group for your trust in us and your commitment to our company. Thank you for your support and for the open dialog we have had over the past financial year. A very special thanks to all our employees, who work every day with great skill and dedication to ensure the successful progress of dorma+kaba.

Sincerely yours

Ulrich Graf
Chairman of the Board of Directors

Riet Cadonau