The year continues strongly for ASSA ABLOY

  · Sales increased by 22% in the quarter, with 4% organic growth, and totaled
SEK 17,082 M (13,964).
  · Strong growth in Global Technologies and good growth in Americas, EMEA and
Entrance Systems.
  · Negative growth in Asia Pacific as result of continued weak demand in China.
  · Three acquisitions signed during the quarter, with expected annual sales
totaling just over SEK 700 M.
  · Operating income (EBIT) for the quarter increased by 24% to SEK 2,742 M
(2,219). The operating margin was 16.1% (15.9).
  · Net income for the quarter amounted to SEK 1,888 M (1,534).
  · Earnings per share for the quarter rose by 23% and amounted to SEK 1.70
(1.38).
  · Cash flow for the quarter was SEK 1,991 M (1,963).

SALES AND INCOME

                                     Second quarter         First half-year
                                   2014    2015  Change    2014    2015  Change
Sales, SEK M                     13,964  17,082    +22%  26,268  32,334    +23%
of which,
Organic growth                                      +4%                     +4%
Acquisitions                                        +3%                     +3%
  Exchange-rate effects                  +2,008    +15%          +3,900    +16%
Operating income (EBIT), SEK M    2,219   2,742    +24%   4,076   5,071    +24%
Operating margin (EBIT), %         15.9    16.1            15.5    15.7
Income before tax, SEK M          2,073   2,551    +23%   3,782   4,735    +25%
Net income, SEK M                 1,534   1,888    +23%   2,798   3,504    +25%
Operating cash flow, SEK M        1,963   1,991     +1%   2,520   2,511      0%
Earnings per share (EPS), SEK1)    1.38    1.70    +23%    2.52    3.15    +25%

1) Earnings per share have been restated for all periods presented reflecting
the stock split (3:1) approved in May 2015.

COMMENTS BY THE PRESIDENT AND CEO
“The second quarter and the first six months showed a continued very strong
performance for ASSA ABLOY, with a rise in sales of a full 22% in the quarter
and a very strong improvement in operating income of 24%,” says Johan Molin,
President and CEO. “The good organic growth in all divisions, apart from in
China, was very pleasing and an indication of strength in tough economic times.

“Organic growth during the quarter was 4%, driven mainly by a very strong
performance in Global Technologies and good growth in the Americas, EMEA and
Entrance Systems divisions. Performance in Asia Pacific was also very
gratifying, with strong growth in all regions except China, where sales remained
weak.

“The Group’s innovations in the form of new products are achieving great
successes in the market. In the USA the Group has taken a strong lead in energy
saving and smart locks for so-called Home Automation Systems. In Europe we are
seeing the same trend, with our new electromechanical lock systems making
particularly strong advances. The share taken by new products in the first half
-year was over 30% of total sales, a very pleasing figure. We have also achieved
a geographical broadening for similar electromechanical products in Asia during
the quarter.

“Three further acquisitions were made during the quarter. In Finland the company
Flexim was acquired, a leading Finnish supplier of security systems which
provided important complementary market coverage. In Belgium the service and
industrial door company
L-Door was acquired, which complements Entrance Systems’ business in Belgium
very well. On the important Middle Eastern market we succeeded in carrying
through the purchase of Prometal, which manufactures security doors for local
applications. This is an important product category for the specification
market. Our acquisitions so far this year represent 3% in added sales.

“Operating income continued to improve strongly during the quarter, by a full
24%. Our organic growth combined with continued improvements in efficiency meant
that the operating margin continued its positive trend, rising to 16.1%, in
spite of the turbulence on the foreign-exchange markets and dilution from
acquisitions.

“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 17 July.