dormakaba Holding AG: history, ownership, mission, how it works & makes money

A Brief History of dormakaba Holding AG

dormakaba Holding AG, established in 2015, is a leading global provider of access and security solutions. The company was formed through the merger of dorma and Kaba, two well-established entities in the industry. As of 2022, dormakaba operates in over 130 countries, employing approximately **15,000** people worldwide.

In the fiscal year 2022/23, dormakaba reported consolidated revenues of **1.2 billion CHF**, reflecting a **7.5%** increase compared to the previous year. The company achieved a net profit margin of **8.1%**, attributed to strong demand across key markets.

Financial Overview

The financial performance of dormakaba can be delineated in its earnings reports, showcasing a steady growth trajectory. Below is a table detailing its financial metrics over recent years:

In the 2022/23 fiscal year, the company’s operating cash flow was reported at **205 million CHF**, indicating a robust operational efficiency. The total assets of dormakaba as of mid-2023 stood at approximately **2.6 billion CHF**, with liabilities of **1.5 billion CHF**, giving it a solid equity base of **1.1 billion CHF**.

Market Position and Global Reach

dormakaba holds a significant market position in the access control and security sector. The company is recognized for its innovative products, including electronic access solutions and physical security systems. In 2022, dormakaba's market share in Europe was estimated to be around **18%** in the electronic access control market.

Furthermore, dormakaba has strategically invested in key markets such as North America and Asia Pacific, where growth rates are projected to be above **5%** annually through 2025. In North America, revenue from the access control segment reached **300 million CHF** in 2022, growing by **10%** year-over-year.

Recent Developments

dormakaba has been active in pursuing mergers and acquisitions to bolster its capabilities. In 2021, it acquired the electronic access systems business from **Graham Manufacturing**, enabling enhanced technological integration and expansion into new market segments. This acquisition is expected to contribute approximately **25 million CHF** in annual revenue.

The company has also committed to sustainable practices, with a target of achieving carbon neutrality in its production processes by **2025**. As part of its environmental strategy, dormakaba allocates around **5%** of its annual revenue to research and development aimed at sustainable product innovation.

Stock Performance

dormakaba Holding AG is publicly traded on the Swiss Exchange under the symbol **DOKA**. As of October 2023, the stock price reflects a robust market sentiment, trading at approximately **CHF 500**, with a year-to-date increase of **15%**. The company's market capitalization stands at around **3 billion CHF**.

The performance of dormakaba shares has generally tracked an increasing trend in recent years, with a **52-week range** between **CHF 420 and CHF 520**. The dividend yield for investors is currently estimated at **2.3%**, based on the latest annual payout of **CHF 12** per share, maintaining investor confidence amid a competitive market landscape.

Conclusion

dormakaba Holding AG showcases a strong financial performance and strategic positioning within the global access control and security market. With continued investment in innovation and sustainability, the company is poised to leverage growth opportunities in the coming years.

A Who Owns dormakaba Holding AG

dormakaba Holding AG, a global leader in access and security solutions, has a diverse ownership structure. As of the latest reports, the largest stakeholders consist of institutional investors, pension funds, and private equity firms.

According to the latest data available from 2023, the following entities hold significant shares in dormakaba:

In terms of market capitalization, as of October 2023, dormakaba Holding AG has a market cap of approximately CHF 3.1 billion. The company reported a total revenue of CHF 1.18 billion for the fiscal year 2022/23, reflecting a growth of 6.5% compared to the previous year.

The stock performance reveals a 15% increase over the last year, with the share price currently trading around CHF 600 per share. As of the end of Q3 2023, the company's EBITDA stood at CHF 215 million, resulting in a margin of approximately 18.2%.

The distribution of ownership highlights the trend of growing institutional investment in dormakaba, indicating confidence in the company’s strategic direction and market position.

dormakaba Holding AG Mission Statement

dormakaba Holding AG, a global leader in access and security solutions, emphasizes its commitment to creating "Safe, Secure, and Seamless" access to buildings, spaces, and resources. The company combines innovative technology with deep expertise to deliver a comprehensive portfolio of products and services designed to meet the evolving needs of customers across various industries.

The mission statement reinforces the organization's core values: commitment to quality, innovation, and sustainability. The focus on customer-centric solutions highlights their aim to enhance security and convenience for end-users while fostering trust and dependability in their services.

In the fiscal year 2023, dormakaba reported revenues of approximately CHF 2.25 billion, reflecting a growth of 8.1% year-over-year. The robust financial performance underscores the effectiveness of their strategic initiatives and product offerings, aligning with their mission to enhance security and access solutions globally.

Furthermore, dormakaba's investment in R&D reached approximately CHF 97 million, representing 4.3% of total revenues for the year. This focus on research and development demonstrates the company's dedication to pioneering advancements in security technology, solidifying its position in the competitive market.

Global operations span over 130 countries, showcasing a diversified portfolio that includes access solutions, electronic locks, keyless entry systems, and integrated security software. This extensive reach aligns with the mission statement of delivering comprehensive security solutions tailored to various sectors, such as healthcare, hotels, and commercial buildings.

dormakaba balances its innovative capacities with sustainable practices. In 2022, the commitment to sustainability was evidenced by a reduction of greenhouse gas emissions by 30% compared to 2019 levels, aiming for a 50% reduction by 2030. This goal aligns with their mission to create a safer, more secure environment while minimizing environmental impact.

Finally, customer satisfaction metrics reveal that over 85% of clients report satisfaction with dormakaba's products and services, reinforcing the effectiveness of their mission-driven approach. This high satisfaction rate showcases the company's success in meeting the needs of its customers and fostering loyalty in its diversified client base.

How dormakaba Holding AG Works

dormakaba Holding AG, based in Switzerland, specializes in access and security solutions, providing products and services that span across the entire access management spectrum. The company operates through multiple segments, including products, services, and systems. The global reach of dormakaba enhances its ability to cater to various markets including commercial buildings, hotels, and transportation sectors.

Business Segments

• Products: This segment includes mechanical locks, electronic access systems, and door hardware. In FY 2021/2022, this segment generated CHF 1.4 billion in revenue, accounting for approximately 45% of total sales.
• Services: Covers installation, maintenance, and repair services, contributing around CHF 800 million in revenue, or about 25% of total revenue.
• Systems: Encompasses integrated solutions for building security and management, with revenues of approximately CHF 600 million, or 20% of total revenue.

Financial Performance

In the fiscal year ending June 30, 2022, dormakaba reported sales of CHF 3.1 billion, representing a year-on-year increase of 8%. The EBITDA for the same period was CHF 502 million, reflecting an EBITDA margin of 16.2%. Net profit reached CHF 223 million, up from CHF 175 million in the previous fiscal year, translating to an increase of approximately 27%.

Market Strategy

dormakaba employs a multi-channel approach for sales, integrating direct sales, distribution partnerships, and e-commerce platforms. In 2022, the company accelerated its digital transformation initiatives, leading to a strong increase in online sales by 20% compared to the previous year. The company also invested approximately CHF 80 million in research and development to innovate and expand its product offerings.

Global Presence

The company operates in more than 130 countries with over 16,000 employees. The main regions of operation include Europe, the Americas, and Asia-Pacific. In FY 2022, Europe contributed around 51% of overall revenue, followed by the Americas at 30% and Asia-Pacific at 19%.

Stock Performance

As of October 2023, dormakaba's shares are traded on the SIX Swiss Exchange under the ticker symbol DOKA. Over the past year, the stock has experienced a fluctuation with a 52-week range of CHF 160 to CHF 210. The current price sits at approximately CHF 180, giving the company a market capitalization of around CHF 2.9 billion.

The company's dividend policy indicates a payout ratio of approximately 40% of net profits. The most recent dividend declared was CHF 7.20 per share, reflecting a dividend yield of about 4% based on the current stock price.

Outlook

Looking ahead, dormakaba aims for a compound annual growth rate (CAGR) of 5% to 7% over the next five years, driven by strategic investments in technology and the expansion of service offerings. The company’s focus on sustainability and innovation is likely to be key drivers in maintaining competitive advantage in the security solutions market.

How dormakaba Holding AG Makes Money

dormakaba Holding AG operates in the security and access management sector, focusing on providing a range of solutions, including electronic access control, mechanical locks, and door hardware. The company generates revenue through several key segments.

Revenue Segments

The primary revenue streams for dormakaba include:

• Access solutions
• Electronic access and data management
• Key systems
• Doors and partitions
• Service and maintenance contracts

Financial Performance

For the fiscal year 2022/23, dormakaba generated total revenues of CHF 1.2 billion, marking an increase of 7.1% compared to the previous year. The operating profit (EBIT) stood at CHF 141 million, which represents an EBIT margin of approximately 11.8%.

Access Solutions

This segment focuses on security and access control systems. In fiscal 2022, revenues from access solutions accounted for about 46% of total revenues, reaching CHF 552 million.

Electronic Access and Data Management

Electronic access products, including smart locks and card systems, contributed to around 35% of total revenues, generating approximately CHF 420 million in fiscal 2022.

Key Systems

Key systems and mechanical locks are also significant revenue contributors, making up approximately 12% of total sales, which translates to roughly CHF 144 million.

Doors and Partitions

The doors and partitions segment achieved revenue of about CHF 72 million, accounting for 6% of the total. This includes automated door systems and various partition solutions.

Service and Maintenance Contracts

Service contracts, which include installation and ongoing maintenance of access solutions, contributed around CHF 48 million to total revenues, representing approximately 4%.

Geographic Distribution

dormakaba's operations are global, with significant revenue generated across various regions:

Market Trends

dormakaba benefits from increasing demand for enhanced security solutions, driven by global trends in urbanization and digitalization. The electronic access control market is projected to grow at a CAGR of 10.5% from 2023 to 2030. Additionally, the company focuses on innovations in IoT and sustainable solutions, aligning with market demands.

Investment in R&D

In fiscal 2022, dormakaba invested approximately CHF 35 million in research and development, representing about 2.9% of total revenue. This investment is aimed at developing advanced security technologies and improving existing product lines.

Conclusion of Operations and Future Outlook

With strategic acquisitions and a focus on technological advancement, dormakaba is well-positioned to capitalize on emerging trends within the security sector, enhancing its revenue-generating capabilities in the future.