ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

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ASSA ABLOY in brief 2012

 Own operations in more than 70 countries  Authorized distribution covering the world  About 43,000 employees  Sales of about SEK 47 billion 3

ASSA ABLOY timeline

1994 – 2012

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Operating income* (EBIT) Quarter, SEK M 2 200 2 000

Run rate 7,501 MSEK (6,624), +13%

1 800 1 600 1 400 1 200 1 000 800 600 Quarter Rolling 12 months *Excluding restructuring costs 2006, 2008, 2009 and 2011.

12 months, SEK M 8 000 7 500 7 000 6 500 6 000 5 500 5 000 4 500 4 000 3 500 3 000

We have built

a world leader

 A clear and well adopted strategy  Trend towards higher security  Acquisitions successfully integrated 6

Our vision    To be the world-leader, most successful and innovative provider of door opening solutions To lead in innovation and offer well-designed, convenient, safe and secure solutions that create added value to our customers To be an attractive company to work for 7

ASSA ABLOY Strategy

Market presence Product leadership = Growth and profitability 8 Cost efficiency

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Market

presence

A world-leading market presence is achieved by exploiting the strength of the brand portfolio, increasing growth in the core business and expanding into new markets and segments.

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Solid

market position  The leading brands  Large installed base  A strong sales channel position  Local standards adds to stability 10

Our business is total door opening solutions seamlessly connected to the building

Our solutions meet

customer needs Large customers

Institutional and commercial customers such as airports, hospitals, schools, shopping malls universities and industry

Small and midsize customer

Characterized by each customer’s need for professional advice and installation

Residential and Consumers

The majority of consumer sales are replacements or upgrades of existing security products

Our brand strategy ASSA ABLOY as master brand United sales force and progressive implementation on products Product brands capitalizing on installed base Four Global brands where market position is unique Product brands, non endorsed Not associated with the ASSA ABLOY brand 13

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Product

leadership

The Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs.

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Product leadership through innovation    We are convinced that innovation is the most important driver for growth Investments in R&D has more than doubled since 2005 and we have over 1 350 engineers We assure long term competitive advantage by continuously improving our products in terms of benefits, costs and quality

Increased share of fast growing products – electromechanics

2000

14 sek bn

2012

47 sek bn

Security doors 14% Electronics/ electromech 20% Mechanical locks & accessories 66% 18% Electronics/ 36% 46% Mechanical locks & accessories 36% 42%

Some ASSA ABLOY products 17

Some ASSA ABLOY products 18

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Cost

efficiency

Efforts to increase cost efficiency continue in all areas, including common product platforms with fewer components and common product development.

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Efficient manufacturing footprint

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Growth

and profitability

ASSA ABLOY creates opportunities for increased growth and profitability through a strong focus on the strategy’s three areas of market presence, product leadership and cost-efficiency.

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Our growth drivers  The new “electronic world”: – electromechanical and digital locking – access control and secure identity & issuance – automatic doors  Geographical and emerging market expansion      Increased need for security Higher expectations Acquisitions Branding Innovation – new solutions

ASSA ABLOY divisions 2012

Product Offering Entrance automation Organization % of Group Sales Mech & el mech locks, cylinders & security doors Electronic access & identity Americas 21% EMEA 28% Global Technologies (HID & Hospitality) Asia Pacific 14% ASSA ABLOY Entrance Systems 63% 13% 24%

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EMEA division 2012   Europe, Middle East and Africa In 2012, EMEA grew by 3 percent and sales totaled SEK 13,382 M  The division has 10,260 employees  Some of the leading brands are ABLOY, ASSA, TESA, Yale and Vachette

Sales Share of Group Operating income (EBIT)

34

Americas division 2012     North and South America In 2012, Americas grew by 9 percent and sales totaled SEK 9,671 M The division has 6,620 employees Some of the leading brands are Corbin Russwin, Curries, Emtek, Medeco, Phillips, SARGENT, Ceco, Yale and La Fonte 26 30

Sales Share of Group Operating income (EBIT) 21 25

Asia Pacific division 2012     Asia, Australia and New Zealand In 2012, Asia Pacific grew by 9 percent and sales totaled SEK 7,224 M The division has 15,284 employees Some of the leading brands in Asia are, Baodean, Guli, King, iRevo Pan Pan, Shenfei, Tianming, Wangli and Yale. In Australia and New Zealand Lockwood and Interlock

Sales Share of Group Operating income (EBIT) 14 12

Global Technologies division 2012     Operates worldwide with focus on access control, secure issuance of cards, RFID identification technology and hotel security In 2012, Global Technologies grew by 9 percent and sales totaled SEK 6,262 M The division has 3,029 employees Leading brands are HID, Fargo, Elsafe and VingCard

Sales Share of Group Operating income (EBIT) 14 13

Entrance Systems division 2012     Supplies complete solutions for automatic doors and after-sales services In 2012, Entrance Systems grew by 33 percent and sales totaled SEK 10,979 M The division has 7,429 employees

Sales Share of Group Operating income (EBIT)

Leading brands are Besam, Crawford, DITEC, EntreMatic, Flexiforce and Normstahl

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ASSA ABLOY

Financial overview

Financial overview 2012     Sales increased to SEK 46,619 M (12%) Operating income (EBIT) SEK 7,501 M (13%) Earnings per share SEK 13.84 (13%) Operating cash flow SEK 7,044 M (6,080)

Earnings per share 15,00 14,00 13,00 12,00 11,00 10,00 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00

Sales split Group overview

End users Recurring business Residential 25% Commercial and institutional 75% New construction 33% After market 67% Product mix Electronic products 22% Mechanical products 36% Entrance automation 24% Security doors 18%

Emerging markets comprise Africa, Asia, the Middle East, South America and eastern Europe.

People make it all happen             Our basic convictions and beliefs We have discipline and a focused approach We reward result and performance We give access to information We learn from our mistakes We never hide We practice business ethics We promote diversity We grow people through a clear task and the authority to act We continuously recruit competent and well educated people We give priority to internal recruitment We are each in charge of our own professional career

www.assaabloy.com