ASSA ABLOY Group Corporate presentation 2016 The global leader in - PowerPoint PPT Presentation

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience ASSA ABLOY Group Corporate presentation 2016

The global leader in door opening solutions Own Sales SEK operations Employees 68 + 70 46,000 billion countries 2

Change relative Share of Group sales 2015 to last year Emerging markets 26% of sales WESTERN AND NORTH AMERICA ASIA AND EASTERN EUROPE AND CENTRAL AMERICA MIDDLE EAST 6 % 8% 9% 41 % 36 % 16 % AUSTRALIA AFRICA SOUTH AMERICA AND NEW ZEALAND 0% 26 % 7 % 1 % 2 % 4 % Local currencies. Emerging markets comprise Africa, Asia, the Middle East, South America and Eastern Europe. 3

ASSA ABLOY’s historical timeline 4

Our vision  To be the world-leader, most successful and innovative provider of total door opening solutions  To lead in innovation and offer well-designed, safe, secure and convenient solutions that create added value to our customers  To offer an attractive company to our employees 5

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 6

STRATEGY Market Product Cost- presence leadership efficiency TARGET 10 % 16-17 % Growth and profitability Annual Operating growth margin 7

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. 8

Solid market position Large installed base The leading brands A strong sales channel position Local standards adds to stability 9

Our business is total door opening solutions seamlessly connected to the building 10

Our solutions meet customer needs Large custom ers Sm all and m idsize Residential and custom er Consum ers Institutional and commercial customers Characterized by each The majority of consumer such as airports, hospitals, customer’s need for sales are replacements schools, shopping malls, professional advice or upgrades of existing universities and industry and installation security products 11

Our brand strategy 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 12

Product leadership The Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs. 13

Product leadership through innovation I nnovation Our driver for growth R&D I nvestm ents + 230 percent since 2005. More than 1 600 engineers today Long term com petitive advantage Continuous improvement of products: Benefits Costs Quality 14

Increased share of fast growing products Electromechanical Security doors Electro- mechanical 20 % 68 Security doors Electro- 51 % mechanical SEK bn 20 % 27 % 28 29 % SEK bn Mechanical Mechanical locks & locks & 53 % accessories accessories 2 0 0 5 2 0 1 5 15

Some ASSA ABLOY products 16

Some ASSA ABLOY products 17

Cost efficiency Efforts to increase cost- efficiency continue in all areas, including common product platforms with fewer components and common product development. 18

Efforts to radically reduce break-even costs  Manufacturing footprint program  Professional sourcing  Lean operations  Value Analyzes and Value Engineering (VA/ VE)  Seamless Flow 19

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. 20

ASSA ABLOY divisions 2015 Product % of Organization offering Group Sales Mech & elm ech Am ericas EMEA Asia Pacific 6 1 % locks, cylinders & 2 3 % 2 4 % 1 4 % security doors Global Technologies Electronic access 1 3 % and identity ( HI D and Hospitality) Entrance ASSA ABLOY Entrance System s 2 6 % autom ation 21

EMEA division 2015  Geographically adopted products for Europe, Middle East and Africa  In 2015, EMEA grew by 4 percent organically and sales totaled SEK 16,524 M  The division has 10,886 employees  Leading brands: ASSA ABLOY , Yale, ABLOY and Mul-T-Lock Sales EBIT 24 % 23 % Share of Group 22

Americas division 2015  Geographically adopted products for North and South America  In 2015, Americas grew by 7 percent organically and sales totaled SEK 15,665 M  The division has 7,957 employees  Leading brands: ASSA ABLOY , Yale, ABLOY and Mul-T-Lock Sales EBIT 23 % 29 % Share of Group 23

Asia Pacific division 2015  Geographically adopted products for Asia, Australia and New Zealand  In 2015, Asia Pacific declined by 3 percent organically and sales totaled SEK 10,171 M  The division has 13,651 employees  Leading brands: ASSA ABLOY , Yale, ABLOY and Mul-T-Lock Sales EBIT 14 % 13 % Share of Group 24

Global Technologies division 2015  Operates worldwide with focus on access control, identification assurance and hotel security  Products marketed globally  In 2015, Global Technologies grew by 7 percent organically and sales totaled SEK 9,100 M  The division has 3,583 employees  Leading brands: HID and ASSA ABLOY Sales EBIT 13 % 14 % Share of Group 25

Entrance Systems division 2015  Supplies complete solutions for entrance automation  Products marketed globally  In 2015, Entrance Systems grew by 5 percent organically and sales totaled SEK 17,957 M  The division has 9,686 employees  Leading brands: ASSA ABLOY , Entrematic and FlexiForce Sales EBIT 26 % 21 % Share of Group 26

Financial overview 2015 Sales, SEK EBIT, SEK Earnings per Operating share, SEK cash flow, SEK 68,099 M 11,079 M 6.93 9,952 M + 20% + 20% + 20% * + 21% * ) Restated for Stock split 3: 1 2015. 27

Sales M SEK 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1994 2015 2000 2005 2010 Restated for Stock split 3: 1 2015. 28

Operating income* (EBIT) M SEK 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2015 2005 2010 * Excluding restructuring costs 2006, 2008, 2009 and 2011. 29

Sales split Group overview End users Recurring business Residential New construction 25 % 33 % 75 % 67 % Commercial After market and institutional 30

We are a true world leader A clear and An efficient World well adopted customer leadership market oriented in innovation strategy organization Operating in a growing market driven by improved wealth, urbanization and a strong trend towards increased safety and security 31

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