Q4 Report 2011 Q4 Report 2011 Johan Molin President & CEO President & CEO 1
Financial highlights Q4 2011 Financial highlights Q4 2011 � Strong quarter w ith record sales and earnings Strong quarter w ith record sales and earnings – Strong growth in Asia, Africa, Global Tech and Entrance Systems – Stable development in Europe and North America – South America and Pacific negative So th Ame ica and Pacific negati e – New footprint program launched with closure of 17 sites � Sales � Sales 1 1 7 4 4 MSEK 1 1 ,7 4 4 MSEK + 2 2 % + 2 2 % + 4% organic, + 20% acquired growth, -2% currency � EBI T EBI T 1 ,8 8 1 MSEK ) 1 ,8 8 1 MSEK * ) + 1 7 % + 1 7 % Currency effect -42 MSEK � EPS 3 .4 3 SEK * * ) + 2 0 % Underlying tax rate 23% Underlying tax rate 23% * ) Excluding restructuring items of 1,420 MSEK * * ) Excluding one-off items of 1,167 MSEK ) g , 2
Financial highlights Jan-Dec 2011 Financial highlights Jan Dec 2011 � Strong perform ance in a tough environm ent St f i t h i t � Sales Sales 4 1 ,7 8 6 MSEK 4 1 ,7 8 6 MSEK + 1 3 % + 1 3 % + 4% organic, + 17% acquired growth, -8% currency � EBI T 6 ,6 2 4 MSEK * ) , ) + 1 0 % Currency effect -430 MSEK � EPS 1 2 .3 0 SEK * * ) + 1 3 % Underlying tax rate 23% Underlying tax rate 23% * ) Excluding restructuring items of 1,420 MSEK * * ) Excluding one-off items of 736 MSEK ) Excluding one off items of 736 MSEK 3
Market highlights Market highlights � ASSA ABLOY branded sales 80% � Global footprint implemented Gl b l f t i t i l t d – Low cost country content from 31 to 49% in five years – Employees in low cost countries from 34 to 51% in five years � Successful launch of Mobile Keys for residential market � Launch of high duty performance printer, HDP 8500 L h f hi h d t f i t HDP 8500 – Government ID card programs with high volume needs � Substantial project wins through specification (total � Substantial project wins through specification (total door solutions) HDP 8500 Heathrow term inal 2 London Heathrow term inal 2 , London CMA CGM Headquarters Marseille CMA CGM Headquarters, Marseille 4
High Duty HDP 8500 High Duty HDP 8500 ID production in the most demanding environments � First decentralized high duty ID card printer in the First decentralized high duty ID card printer in the industry – For large (government & other) ID card programs � Networked printing, secure ID cards issued from multiple sites � Passports, driving licenses, national IDs and health cards, vehicle identification, employee and personal IDs l ID Scalable system y architecture HDP 8 5 0 0 , heavy duty printer High definit ion print ing High definit ion print ing 5
Substantial project wins through specification Substantial project wins through specification Total door solutions
Group sales in local currencies Jan-Dec Group sales in local currencies Jan Dec 2011 4 8 + 3 2 2 8 2 8 + 8 + 8 1 6 + 2 9 1 + 2 2 + 7 5 -3 Share of Group sales 2 0 1 1 YTD, % Year-to-date vs previous year, % 7
Organic growth index * ) Organic growth index ) Recovery from recession I ndex 2 0 0 9 - 2 0 11 ASSA ABLOY excl Craw ford Group -3 % 110 105 1 / 1 2 2 0 08 100 95 I ndex 1 0 0 = 3 90 Division Division I ndex I ndex 85 85 EMEA -8 % 80 Am ericas -1 7 % 2009 2010 2011 Asia Pacific + 3 0 % Global Tech + 7 % Entrance * * ) -5 % * ) With all acquisitions as per 31/ 12/ 2011 historically restated * * ) Door automatics stand-alone + 2% 8
Sales growth Q4 2011 - Currency adjusted Sales growth Q4 2011 Currency adjusted 46 000 20 20 44 000 18 2 0 1 1 Q4 + 2 4 % 16 42 000 Organic + 4 % 14 12 12 Acquired + 2 0 % 40 000 10 8 38 000 6 SEK % 4 36 000 36 000 Sales, MS Grow th 2 34 000 0 -2 32 000 -4 -6 6 S 30 000 -8 -10 28 000 -12 -14 14 26 000 26 000 -16 24 000 -18 2005 2006 2007 2008 2009 2010 2011 Organic Growth Organic Growth Acquired Growth Acquired Growth Salesin Fixed Currencies Sales in Fixed Currencies 9
Operating income (EBIT) MSEK Operating income (EBIT), MSEK 1 900 6 600 Run rate 6 ,6 2 4 MSEK ( 6 ,0 4 6 ) , + 1 0 % 1 800 6 400 6 200 1 700 6 000 1 600 1 600 5 800 1 500 5 600 months 1 400 5 400 rter 5 200 1 300 Quar 12-m 5 000 1 200 4 800 1 100 4 600 4 400 1 000 4 200 4 200 900 4 000 800 3 800 700 3 600 05 06 07 08 09 10 11 200 200 200 200 200 201 201 Quarter Rolling 12-months * ) * ) Excluding restructuring items of 1,420 MSEK in Q4 and full year 2011 l di i i f 20 S i Q d f ll 20 10
Operating margin (EBIT)* % Operating margin (EBIT) , % 17 0 17,0 Long term target range ( average) 16,0 EBI T % 15,0 14,0 ,0 Run rate 2 0 1 1 1 5 9 % ( 1 6 6 ) Run rate 2 0 1 1 1 5 .9 % ( 1 6 .6 ) 13,0 12,0 Quarter Quarter Rolling 12-months Rolling 12-months Q4 2011 Group Dilution Q1 2012 Group Dilution Crawford Crawford -0.2% -0.7% Other acquisitions Other acquisitions -0.5% -0.3% * ) Excluding restructuring items of 1,420 MSEK in Q4 and full year 2011 * ) l di i i f 20 S i Q d f ll 20 11
New manufacturing footprint program New manufacturing footprint program � 17 factories to be closed – Further consolidation within the ASSA ABLOY Group F th lid ti ithi th ASSA ABLOY G – Cost 1 420 MSEK, net 1 016 MSEK (after 404 MSEK Cardo capital gain) – Cost fully booked in Q4, payback 3 years � Status manufacturing footprint programs 2006-2009: – 44 factories closed to date, 7 to go – 47 factories converted to assembly, 6 to go – 23 offices closed, 2 to go g � Personnel reduction YTD 5,869p � 457 in further planned reductions p � 1 665 MSEK of the provision remains for all programs � 1 665 MSEK of the provision remains for all programs 12
Margin highlights Q4 2011 Margin highlights Q4 2011 EBI T m argin 1 6 0 % ( 1 6 6 ) 0 6 % EBI T m argin 1 6 .0 % ( 1 6 .6 ) , -0 .6 % + Volume increase 3% price 1% + Volume increase 3% , price 1% + Margin expansion 0.2% + Manufacturing footprint & efficiency improvements M f i f i & ffi i i - Geographical mix and project orders - Dilution from acquisitions by -0.7% - Negative currency effect –0.1% 13
Acquisitions 2011 Acquisitions 2011 � 1 8 acquisitions done in 2 0 1 1 � Annualized sales 6 ,8 0 0 MSEK, + 1 8 % � Major acquisitions 2 0 1 1 : � Cardo, SE � Swesafe, SE � Lasercard, US � FlexiForce, NL � Portafeu FR � Portafeu, FR � Angel Metal, KR 14
Acquisitions 2012 Acquisitions 2012 � Fully active � 3 acquisitions done so far in 2 0 1 2 � Annualized sales 1 ,8 5 0 MSEK, + 5 % � Major acquisitions Jan-Apr 2 0 1 2 : Major acquisitions Jan Apr 2 0 1 2 : � Albany, US � Dynaco, BE � Securistyle, UK y , 15
Albany Door Systems Albany Door Systems � Market leader in high speed doors M k t l d i hi h d d � Strong presence in Europe and US � Sales and service has good fit with Crawford and Besam (direct channel) � Total sales 185 MUSD with 700 Total sales 185 MUSD with 700 employees � Accretive to EPS from start 16
Dynaco Dynaco � Market leader in distribution of high speed doors � Sales in 60 countries through global network of distributors � Leading patented products � Total sales 51 MEUR with 140 employees � Accretive to EPS from start 17
Securistyle Securistyle � Leading manufacturer of window hardware to the OEM industry � Strong presence in UK with exports to Europe, India and China China � Combination of Securistyle and Yale UK gives full range of products � Total sales 21 MGBP with 205 employees � Accretive to EPS from start W indow hardw are products W indow hardw are products 18
Division - EMEA Division EMEA SALES � Market slightly improved share of Group total % Group total % � Growth in Scandinavia, Finland, Germany, UK and Eastern Europe 30 � F France and Benelux are stable d B l t bl � Southern Europe with Spain and Italy in strong decline � Efficiency improvements gave record margin ff d � Operating margin (EBIT) EBI T % 19 - Volume + 1% 18 17 - Material cost a e a cos 16 16 15 + Restructuring savings 14 13 - Acquisition dilution by 0.4% 2007 2008 2009 2010 2011 7 8 9 0 1 19
EMEA Financial Review EMEA Financial Review 4th Quarter Twelve months MSEK 2010 2011 Change 2010 2011 Change Sales 3,364 3,524 +5% 13,036 13,030 -0% Organic growth Organic growth 1% 1% -0% 0% Acquired growth +5% +5% EBIT EBIT 604 604 640 640 +6% +6% 2 174 2,174 2 203 2,203 1% 1% EBIT-margin (%) 18.0 18.2 16.7 16.9 RoCE (%) RoCE (%) 26.3 26 3 25 4 25.4 21.6 21 6 22 0 22.0 Operating cash flow before paid interest p 858 851 -1% 2,607 , 2,142 , -18% * ) * ) Excluding restructuring items of 587 MSEK for the fourth quarter and the full year of 2011 l di i i f 8 S f h f h d h f ll f 20 20
Division - Americas Division Americas SALES � Institutional construction more stable share of Group total % Group total % � Good growth of high security, residential and elmech � 21 Weak sales in Brazil, Mexico, Latin America, Canada and security doors and security doors � Margin sustained through efficiency gains � O Operating margin (EBIT) ti i (EBIT) EBI T % 22 - Volume 0% 21 20 - Material cost M t i l t 19 + Efficiency improvement 18 2007 2008 2009 2010 2011 21
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