1

Q1 Report 2011Johan Molin

President & CEO

2

Financial highlights Q1 2011

Good start of the year– Strong growth in Asia and North & South America– Stable evolution in Europe– Slight decline in the Pacific – Continued margin expansion– Sale of Cardo Flow and acquisition of FlexiForce

Sales 8,699 MSEK +4%+6% organic, +7% acquired growth, -9% currency

EBIT 1,377 MSEK +6% Currency effect -113 MSEK

EPS 2.53 SEK +7%Tax rate reduced to 22%

3

Market highlights

Rapid growth for digital door locks in China

Safezone automatic door closer meets strong customer demand

Launch of i-Class SE, platform independantSecure Identity Object (SIO)

Good penetration of Aperio within system integration

Introduction of Online Card Services, Identity on Demand (IOD)

Digital Door Lock

Safezone

HDP 5000Card printer

Aperio

Identity on Demand (IOD)

A scalable, secure, automated, on-line and high-quality system for provisioning a personalized smart card

Dedicated setup in Europe and USA

5

Group sales in local currencies Jan-Mar 2011

2 +15

32 +1546 +10

13 +34

5 -1

2 -2

Share of Group sales 2011 YTD, %Year-to-date vs previous year, %

Organic growth indexRecovery from recession

Group -5%EMEA -11%Americas -15%APAC +31%GT +7%Entrance -3%

7

-16-14-12-10-8-6-4-20246810121416

22 00023 00024 00025 00026 00027 00028 00029 00030 00031 00032 00033 00034 00035 00036 000

2004 2005 2006 2007 2008 2009 2010 2011

Gro

wth

%

Sal

es, M

SEK

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales growth Q1 2011 - Currency adjusted

2011 Q1 +13%Organic +6%Acquired +7%

Total sales 5% over 2008 peak

8

Operating income (EBIT), MSEK

3 600

3 800

4 000

4 200

4 400

4 600

4 800

5 000

5 200

5 400

5 600

5 800

6 000

6 200

600

700

800

900

1 000

1 100

1 200

1 300

1 400

1 500

1 600

1 700

2005

2006

2007

2008

2009

2010

2011

Quarter Rolling 12-monthsQuarter 12-months

Run rate 6,126 MSEK (5,380), +14%

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Operating margin (EBIT), %

12,0

13,0

14,0

15,0

16,0

17,0

2005

2006

2007

2008

2009

2010

2011

EBIT

%

Quarter Rolling 12-months

Run rate 2011 16.5% (15.6)

Long term target range (average)

2011 Group DilutionAddition of Cardo -0.6%Other acquisitions -0.4%

10

Manufacturing footprint

Conversion to assembly or closures in high cost countries– 40 factories closed to date, 11 to go– 42 factories converted to assembly, 11 to go– 21 offices closed, 4 to go

Consolidation of core production to China and Eastern Europe

Personnel reduction 5,483p, +13% to plan

933 more to go

873 MSEK remains at the end of the first quarter for all three programs

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Margin highlights Q1 2011

EBIT margin 15.8% (15.5)

+ Volume increase 4%, price 2% + Manufacturing footprint & efficiency improvements

- Increased gross margin despite material cost increases- Slightly lower S, G & A

- Dilution from acquisitions by -0.5%-units- Negative currency effect –0.1%-units

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Acquisitions Q1 2011

Fully active on acquisitions– Good pipeline targeting 5% growth

7 acquisitions completed Jan-Apr 2011

Annualized >5,750 MSEK, +16%

Major acquisitions Jan-Apr: Cardo SwesafeLasercardFlexiForce

FlexiForceEuropean leader in industrial door hardware

Manufacturer of hardware for industrial doors

Sales 600 MSEK and 300 employees

Sales indirect to door producers and installers

Strongly complementary on products with Cardo and Ditec

LCC manufacturing in Poland and China

Accretive to EPS from start

Entrance systems divisionOrganizational chart, sales and profit 2010

14

ASSA ABLOY Entrance SystemsSales 9.4 BSEK, EBIT 12.7%

Direct sales Distribution sales

38% of Agta Record, Sales BSEK 2.0

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Division - EMEA

Slow development of EMEA due to austerity programs

Continued growth in Finland, Sweden, Germany and Eastern Europe

Unrest in North Africa affects exports from Italy and Spain

Excellent efficiency improvements and price management

Operating margin (EBIT) + Volume 0%+ Strong Elmech sales + Excellent efficiency gains- Raw materials increasing

SALESshare of

Group total %

35

EBIT %

13

14

15

16

17

18

19

18

Division - AmericasAll business units are growing

Particularly good in South America, Canada and electromechanical locks

Solid development of doors, high security locks and residential

EBIT reached record level despite strong investments in R&D

Operating margin (EBIT) + Volume +7%+ Price management and efficiency with

reinforced investment in R&D- Raw materials increasing

SALESshare of

Group total %

25

EBIT %

17

18

19

20

21

20

Division - Asia Pacific

All of Asia in strong growth

Digital door locks and China are doing particularly well

Decline in NZ and weak Australia mainly due to natural disasters

Good margin expansion for Q1

Operating margin (EBIT)+ Volume +10%+ Efficiency improvements+ Currency gain of +0.6%- Raw materials and salaries increasing

SALESshare of

Group total %

13

EBIT %

6

8

10

12

14

16

22

Division - Global Technologies Strong evolution in HID– Solid development within physical access– Strong growth of IDS– ActivIdentity and LaserCard added

Hospitality– Renovation market in very strong demand– New build still in decline– RFID lock upgrades and energy management are developing

particularly well

Operating margin (EBIT)+ Volume +19%- Mix towards IDS affects leverage- Dilution from Active Identity &

Lasercard by -2.3% - Dilution from currency by -0.9%

SALESshare of

Group total %

15

EBIT %

1213141516171819

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Division - Entrance Systems

Growth is back with strong demand from retail

Continued strong evolution in service

Strong margin improvement in Ditec

Integration of Cardo is progressing well

Dilution from Cardo by -0,4%

Operating margin (EBIT)

+ Volume +4%+ Efficiency gains & Ditec improvement- Dilution from Cardo

SALESshare of

Group total %

13

EBIT %

12

14

16

18

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Q1 Report 2011Tomas Eliasson

CFO

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Financial highlights Q1 2011

MSEK 2010 2011 Change 2009 2010 Change

Sales 8,345 8,699 +4% 34,963 36,823 +5%Whereof Organic growth +6% +3%Acquired growth +7% +8%FX-differences -666 -9% -1,626 -6%

Operating income (EBIT) 1,295 1,377 +6% 5,413* 6,046 +12%EBIT-margin (%) 15.5 15.8 15.5* 16.4Operating cash flow 870 448 -49% 6,843 6,285 -8%

EPS (SEK)* 2.36 2.53 +7% 9.22 10.89 +18%

*Excluding restructuring and one off charges of 1,039 MSEK

1st Quarter Twelve months

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Bridge Analysis – Jan-Mar 2011

MSEK 2010

Jan-Mar

Acq/Div Currency Organic 2011

Jan-Mar

7% -9% 6% 4%

Revenues 8,345 551 -666 469 8,699

EBIT 1,295 49 -113 146 1,377

% 15.5% 8.9% 17.0% 31.1% 15.8%

Dilution / Accretion

-50 bp -10 bp 90 bp

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P&L – Components as % of sales

Direct material 32.3% 32.9%

Conversion costs 27.4% 26.2%

Gross Margin 40.3% 40.9%

S, G & A 24.8% 25.1%

EBIT 15.5% 15.8%

2011Q1

2010Q1

*)

*) Currency effect -0.4%

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Operating cash flow, MSEK

3 000

3 500

4 000

4 500

5 000

5 500

6 000

6 500

7 000

7 500

0

500

1 000

1 500

2 000

12-m

onth

s

Qua

rter

Quarter Cash Rolling 12-months EBT Rolling 12 months

Recessionstarts

Back togrowth

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Gearing % and net debt MSEK

0

20

40

60

80

100

120

0

5 000

10 000

15 000

20 000

25 000

30 000

Gea

ring

Net

Deb

t

Net debt Gearing

Debt/Equity 51 (57)

Debt/Equity 103 (57)

Net debt 21.6 BSEKSale of Cardo Flow and cash flow 2011 willreduce debt level

32

Net interest rate, %

3,00

3,50

4,00

4,50

5,00

5,50

6,00In

tere

st ra

teAdditional debt in Q1 is short term = reduced interestrate

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Q1 Report 2011Johan Molin

President & CEO

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Conclusions Q1 2011

13% total growth whereof 6% organic growth

Emerging markets and in particular Asia in strong growth

Margin expansion in all parts

Reduced tax rate by 2% to 22%

Exciting acquired growth ahead and sale of Cardo Flow

35

Outlook

Long Term

Organic sales growth is expected to continue at a good rate

The operating margin (EBIT) and operating cash flow are expected to develop well

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Q&A