A strong start of the year for ASSA ABLOY

  · Sales increased by 24% in the quarter, with 5% organic growth, and totaled
SEK 15,252 M (12,305).
  · Strong growth in Americas, Global Technologies and Entrance Systems and good
growth in EMEA.
  · Negative growth in Asia Pacific.
  · Two acquisitions made during the quarter, with expected annual sales
totaling about SEK 340 M.
  · Operating income (EBIT) amounted to SEK 2,329 M (1,857). The operating
margin was 15.3% (15.1).
  · Net income amounted to SEK 1,616 M (1,264).
  · Earnings per share increased by 28% and amounted to SEK 4.36 (3.41).
  · Cash flow was normal for the season and amounted to SEK 520 M (557).

SALES AND INCOME

                         Full year                 First quarter
                      2013     2014    Change    2014    2015  Change
Sales, SEK M        48,481   56,843      +17%  12,305  15,252    +24%
of which,
Organic                                   +3%                     +5%
growth
Acquisitions                              +9%                     +3%
Exchange-rate       -1,156   +2,138       +5%    +109  +1,892    +16%
effects
Operating        7,923 (1)    9,257  +17% (1)   1,857   2,329    +25%
income
(EBIT),
SEK M
Operating         16.3 (1)     16.3              15.1    15.3
margin
(EBIT), %
Income before    7,381 (1)    8,698  +18% (1)   1,709   2,184    +28%
tax, SEK M
Net income,      5,496 (2)    6,436  +17% (2)   1,264   1,616    +28%
SEK M
Operating            6,803    8,238      +21%     557     520     -7%
cash flow,
SEK M
Earnings per     14.84 (2)    17.38  +17% (2)    3.41    4.36    +28%
share (EPS),
SEK

1) Items affecting comparability in 2013 amounting to SEK -1,000 M for the full
year have been excluded.
2) Items affecting comparability in 2013 amounting to SEK -721 M after tax for
the full year have been excluded.

COMMENTS BY THE PRESIDENT AND CEO
“The first quarter was very positive for ASSA ABLOY, with an increase in sales
of 24% and an improvement in operating income of a full 25%,” says Johan Molin,
President and CEO. “It was pleasing to see that growth in North and South
America, and in the Emerging Markets apart from China, continued at a high
level.

“Organic growth during the quarter was 5%, driven by a very strong performance
in the USA. The Americas, Global Technologies and Entrance Systems divisions all
showed strong growth, while EMEA maintained its stable but relatively low growth
of 2%. All regions in Asia Pacific produced strong growth except China. The weak
market in China, in combination with our introduction of a strict credit policy,
meant that sales there fell back significantly.

“New products, and especially electromechanical products, make up a steadily
increasing share of our sales. This is an exciting trend, with more and more
customers choosing solutions that link their locks to the Internet. Over a short
period ASSA ABLOY has developed a leading position in digital door locks and
access control with great potential for the future in both the residential and
the commercial segments.

“During the quarter the strategic acquisition of Quantum Secure was carried out.
Quantum Secure gives ASSA ABLOY the ability to offer its customers a total
solution for managing identity and access in security-intensive environments
such as airports and other public places. The Chilean company ODIS was also
acquired. The acquisitions represent 0.6% in added sales.

“Operating income continued to strengthen in a very satisfactory manner this
quarter, with a rise of a full 25%. The main contributory factors were our
organic growth, good improvements in efficiency and positive exchangerate
effects.

“My judgment is that the global economic trend remains weak. Although America is
showing a positive trend, Europe and many of the Emerging Markets are
stagnating. However, our strategy of expanding on the Emerging Markets remains
unchanged, since in the long term they are expected to achieve very good
economic growth. We are also continuing our investments in new products,
especially in the growth area of electromechanics.”

FURTHER INFORMATION CAN BE OBTAINED FROM:
Johan Molin, President and CEO, Tel: +46 8 506 485 42
Carolina Dybeck Happe, Chief Financial Officer, Tel: +46 8 506 485 72

ASSA ABLOY is holding an analysts’ meeting at 10.00 today at Operaterrassen in
Stockholm.

The analysts’ meeting can also be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on: +46 8 5055 6476, +44 203 364
5371 or +1 877 679 2993.

This information is that which ASSA ABLOY is required to disclose under the
Swedish Securities Exchange and Clearing Operations Act and/or the Swedish
Financial Instruments Trading Act.
The information is released for publication at 08.00 on 28 April.