A strong end to the year for ASSA ABLOY

Fourth quarter

  · Net sales increased by 15% in the quarter to SEK 18,301 M (15,847). Organic
growth was 5% (3).
  · Strong growth in Americas, Global Technologies, Entrance Systems and EMEA.
  · Negative growth in Asia Pacific due to continued weak demand in China.
  · Agreements have been signed for the acquisition of six companies, including
CEDES in Switzerland, with combined expected annual sales of about SEK 1,100 M.
  · Operating income (EBIT) for the quarter increased by 13% to SEK 3,038 M
(2,681). The operating margin was 16.6% (16.9).
  · Net income amounted to SEK 2,120 M (1,889).
  · Earnings per share rose by 12% and amounted to SEK 1.91 (1.70).
  · Operating cash flow increased by 33% to SEK 4,625 M (3,469).

Full year

  · Net sales increased by 20% to SEK 68,099 M (56,843). Organic growth was 4%
(3).
  · 16 acquisitions with total annual sales of about SEK 2,500 M have been
consolidated.
  · Operating income (EBIT) increased by 20% to SEK 11,079 M (9,257). The
operating margin was 16.3% (16.3).
  · Net income amounted to SEK 7,693 M (6,436).
  · Earnings per share rose by 20% to SEK 6.93 (5.79).
  · Operating cash flow increased by 21% to SEK 9,952 M (8,238).
  · The Board of Directors proposes a dividend of SEK 2.65 per share (2.17).

SALES AND INCOME

+--------------------------------+--------+------+------+------+------+------+
|                                |    Fourth quarter    |     Full year      |
+--------------------------------+--------+------+------+------+------+------+
|                                |  2014  | 2015 |Change| 2014 | 2015 |Change|
+--------------------------------+--------+------+------+------+------+------+
|Sales, SEK M                    |15,847  |18,301|  +15%|56,843|68,099|  +20%|
+--------------------------------+--------+------+------+------+------+------+
|of which,                       |        |      |      |      |      |      |
+--------------------------------+--------+------+------+------+------+------+
|Organic growth                  |        |      |   +5%|      |      |   +4%|
+--------------------------------+--------+------+------+------+------+------+
|Acquisitions                    |        |      |   +4%|      |      |   +3%|
+--------------------------------+--------+------+------+------+------+------+
|Exchange-rate effects           |  +1,129|  +983|   +6%|+2,138|+6,544|  +13%|
+--------------------------------+--------+------+------+------+------+------+
|Operating income (EBIT), SEK M  |   2,681| 3,038|  +13%| 9,257|11,079|  +20%|
+--------------------------------+--------+------+------+------+------+------+
|Operating margin (EBIT), %      |    16.9|  16.6|      |  16.3|  16.3|      |
+--------------------------------+--------+------+------+------+------+------+
|Income before tax, SEK M        |   2,552| 2,851|  +12%| 8,698|10,382|  +19%|
+--------------------------------+--------+------+------+------+------+------+
|Net income, SEK M               |   1,889| 2,120|  +12%| 6,436| 7,693|  +20%|
+--------------------------------+--------+------+------+------+------+------+
|Operating cash flow, SEK M      |   3,469| 4,625|  +33%| 8,238| 9,952|  +21%|
+--------------------------------+--------+------+------+------+------+------+
|Earnings per share (EPS), SEK 1)|    1.70|  1.91|  +12%|  5.79|  6.93|  +20%|
+--------------------------------+--------+------+------+------+------+------+

1) Earnings per share has been recalculated for all historical periods
reflecting the stock split (3:1) in 2015.

COMMENTS BY THE PRESIDENT AND CEO

“The final quarter of the year continued strongly for ASSA ABLOY, with a rise in
sales of 15% for the quarter and totaling 20% for the year,” says Johan Molin,
President and CEO. “Operating income also grew very satisfactorily by a full 13%
for the quarter and a total of 20% for the full year.

“Organic growth was strong, at a full 5% for the quarter. The strong sales trend
in the USA, Europe and the Pacific region continued unchanged. The sales trend
in the developing countries remained good except in China, where sales continued
to fall. However, a weaker demand picture can be perceived in many developing
markets, linked to a shortage of financing for major projects. This principally
affected Global Technologies.

“The strong development of electromechanical products continued during the year
as our customers are converting from mechanical locks to an ever-increasing
extent. It is clear that ASSA ABLOY has established a leadership in this area
for both commercial and residential applications. Particularly striking during
the year was the strong demand for digital door-locks for so-called home
automation in the USA, and for the Cliq system based on the new cloud
technology.

“During the quarter CEDES was acquired – an interesting technology company that
adds intelligence to connected doors, mainly in Entrance Systems. Another
technology acquisition was made in HID through the purchase of IAI, which is a
leader in advanced printers mainly for the Government sector and banks. Three
acquisitions were also made in Brazil, where ASSA ABLOY has built a market
-leading position over a short period.

“Operating income increased by a full 13% during the quarter. The organic growth
of 5% resulted in a good underlying growth in the operating margin, to which
continued efficiency improvements contributed strongly. Operating margin
remained on virtually the same level as in the fourth quarter of 2014 despite
higher negative impacts from exchange-rate effects and dilution from
acquisitions as a consequence of the many acquisitions made at the end of the
year.

“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 in the Emerging Markets remains
unchanged, since they are expected to achieve very good economic growth long
term. 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 Operaterassen 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.

ASSA ABLOY discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 08.00 CET on 8 February.