dormakaba initiates transformation program to strengthen the company for the future
dormakaba Holding AG / Key word(s): Development of Sales/Restructure of Company Ad hoc announcement pursuant to Art. 53 LR |
dormakaba is launching a transformation program to further drive customer centricity, strengthen the company for the future, and achieve its mid-term targets. The company expects resulting cost savings with a run-rate of approximately CHF 170 million by 2025/26 and a net reduction of full-time equivalent positions of up to 800. The program aims to further consolidate the global production footprint, to reduce the supplier base, to improve sourcing capabilities and to re-focus Product Development through a single global roadmap. In addition, dormakaba will optimize its General & Administrative functions by leveraging shared service centers for Human Resources and Finance. The transformation will be supported by consolidating IT initiatives to drive standardization for an improved customer experience.
Rümlang, 3 July 2023 – As part of dormakaba’s Shape4Growth (S4G) strategy the transformation program represents an important step towards achieving better profitability and sustainable volume growth. It is designed to ensure attainment of the company`s mid-term financial targets, an annual organic sales growth of 3%-5% for each future financial year, 16% to 18% adjusted EBITDA margin reached in 2025/26 financial year and a ROCE of above 30% starting from the 2025/26 financial year. The transformation program is projected to deliver estimated combined cost savings on a run-rate basis of approximately CHF 170 million per year by the end of 2025/26. One-off costs of approximately CHF 225 million and a one-time additional CAPEX investment of around CHF 100 million (IT, Operations) will be incurred starting in 2023/24. The main impact on Items Affecting Comparability (IAC) will materialize in the same year. For 2022/23, dormakaba expects IAC to increase to around CHF 60 million, including CHF 30 million related to the transformation. While the program`s implementation may impact up to 1800 positions, the expected net reduction of full-time equivalent positions will be approximately 800.