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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
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ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience
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ASSA ABLOY in brief 2011
§ Own operations in more than 60 countries
§ Authorized distribution covering the world
§ About 41,000 employees
§ Sales of about SEK 42 billion
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Operating income* (EBIT)Quarter, SEK M 12 months, SEK M
*Excluding restructuring costs 2006, 2008, 2009 and 2011.
Run rate 6,624 MSEK (6,046), +10%
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ASSA ABLOY timeline1994 – 2011
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We have built a world leader
§ A clear and well adopted strategy
§ Trend towards higher security
§ Acquisitions successfully integrated
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Our vision
§ To be the world-leader, most successful and innovative provider of door opening solutions
§ To lead in innovation and offer well-designed, convenient, safe and secure solutions that create added value to our customers
§ To be an attractive company to work for
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Market presence
Productleadership
Cost-efficiency
Growth and profitability
ASSA ABLOY Strategy
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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.
Marketpresence
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Solidmarket position
§ The leading brands
§ A strong sales channel position
§ Local standards adds to stability
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Our business is total door opening solutions seamlessly connected to the building
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Our solutions meet customer needs
Large customersInstitutional and commercial customers such as airports, hospitals, schools, shopping malls universities and industry
Small and midsize customerCharacterized by each customer’s need for professional advice and installation
Residential and ConsumersThe majority of consumer sales are replacements or upgrades of existing security products
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Our brand strategyASSA ABLOY as master brand United sales force and progressive implementation on products
Product brands capitalizing on installed base
Four Global brands where market position is unique
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The Group’s product leadership is achieved through the continuous development of products offering enhanced customer value and lower product costs.
Productleadership
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Product leadership through innovation
§ We are convinced that innovation is the most important driver for growth
§ We have more than doubled investments in R&D the last five years and have over 1 200 engineers
§ We assure long term competitive advantage by continuously improving our products in terms of benefits, costs and quality
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Increased share of fast growing products– electromechanics
200014 sek bn
201142 sek bn
42%
36%
22%
Mechanical locks &
accessories
66%
Electronics/electromech
20%
Security doors
14%Mechanical
locks & accessories
38%Electronics/electromech
42%
Security doors
20%
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Efforts to increase cost-efficiency continue in all areas, including common product platforms with fewer components and common product development.
Cost efficiency
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Efficient manufacturing footprint
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Radically reduce our break-even cost through professional sourcing
§ Limited number of suppliers
§ Strategic partners
§ Supplier agreements
§ Category management
§ Value Engineering
§ Zero-defect suppliers
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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.
Growth and profitability
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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
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ASSA ABLOY divisions 2011
Mech & el mechlocks, cylinders &
security doors
Electronic access& identity
Entrance automation
Americas21%
EMEA30%
Asia Pacific15%
Global Technologies(HID & Hospitality)
ASSA ABLOY Entrance Systems
ProductOffering Organization
% of Group Sales
66%
14%
20%
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EMEA division 2011
§ Europe, Middle East and Africa
§ In 2011, EMEA achieved organic growth of 0 percent, sales of SEK 13,030 M
§ The division has 10,100 employees
§ Some of the leading brands are ABLOY, ASSA, TESA, Yale and Vachette
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Sales Operating income (EBIT)
30 31
Share of Group
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Americas division 2011
§ North and South America
§ In 2011, Americas achieved organic growth of 2 percent, sales of SEK 8,906 M
§ The division has 6,700 employees
§ Some of the leading brands are Corbin Russwin, Curries, Emtek, Medeco, Phillips, SARGENT, Ceco, Yale and La Fonte 3026
Sales Operating income (EBIT)
21 26
Share of Group
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Asia Pacific division 2011
§ Asia, Australia and New Zealand
§ In 2011, Asia Pacific achieved organic growth of 9 percent, sales of SEK 6,631 M
§ The division has 15,800 employees
§ Some of the leading brands in Asia are, Baodean, Guli, King, iRevo Pan Pan, Shenfei, Tianming, Wangli and Yale. In Australia and New Zealand Lockwood and Interlock
Sales Operating income (EBIT)
15 13
Share of Group
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§ Operates worldwide with focus on access control, secure issuance of cards, RFID identification technology and hotel security
§ In 2011, Global Technologies achieved organic growth of 11 percent, sales of SEK 5,756 M
§ The division has 2,800 employees
§ Leading brands are HID, Fargo, Elsafe and VingCard
Global Technologies division 2011
Sales Operating income (EBIT)
14 13
Share of Group
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Entrance Systems division 2011
§ Supplies complete solutions for automatic doors and after-sales services
§ In 2011, Entrance Systems achieved organic growth of 5 percent, sales of SEK 8,278 M
§ The division has 5,600 employees
§ Leading brands are Besam, Crawford, DITEC, EntreMatic, Flexiforce and Normstahl
Sales Operating income (EBIT)
20 17
Share of Group
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ASSA ABLOYFinancial overview
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Financial overview 2011
§ Sales increased to SEK 41,786 M (13%)
§ Operating income (EBIT) SEK 6,624 M (10%)
§ Earnings per share SEK 12.30 (13%)
§ Operating cash flow SEK 6,080 M (-3%)
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Earnings per share
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
10,00
11,00
12,00
13,00
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Sales splitGroup overview
End users Recurring business Product mix
Commercial and institutional
75%
Residential
25%New
construction
33%
After market
67%
Mechanical products
38% Electronic products
22%
Securitydoors
20%
Entranceautomation
20%
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Sustainabledevelopment
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The sustainable development program in brief
2007Sustainability program
2008Sustainability strategy for product development including checklists
Employee survey
Marketing and sales training
Training in supplier control
Updated Code of Conduct
2009Sales companies and offices are included in reported figures
Increased monitoring of energy consumption and CO2
Launch of joint recruitment and selection guide
2010Increased audit of suppliers in low-cost countries
Targets for 2015 are defined for all monitored areas
Employee survey
2004/2005Code of Conduct
Whistle-blowing
Internal audits
Training and best practice
Investment criteria > SEK 1 M
Due diligence directive
2006Tools for supplier control
Employee survey
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Sustainability highlights 2010
§ Targets defined for all major areas up to 2015 including water consumption, energy efficiency, green house gas emissions, chemical handling and health & safety
§ Sustainability audits in low cost countries increased to 376 compared to 188 in 2009
§ The number of entities reporting on sustainability has increased from 181 to 204
§ 18,000 employees took part in the third global employee survey
§ Independent social compliance audits performed at ASSA ABLOY’s Guli-factory, China, and at the factory in Johor, Malaysia
§ Tool to visualize the sustainability development on Group, division and company level
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People makeit all happen§ Our basic convictions and beliefs§ We have discipline and a focused approach§ We reward result and performance§ We give access to information§ We learn from our mistakes§ We never hide§ We practice business ethics§ We promote diversity§ We grow people through a clear task and
the authority to act§ We continuously recruit competent and
well educated people§ We give priority to internal recruitment§ We are each in charge of our own
professional career
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Customer cases
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South CarolinaGovernor’s School
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Eden Park in Auckland, New Zealand is ready for 2011 Rugby World Cup
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One of Beijing’s most exclusive addresses chose ASSA ABLOY for security and design
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Students gain access with HID in Reykjavik
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Landmarked hotel in Beirut increases productivity and security with VingCard
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The Hermitage in Saint Petersburg, Russia secured by Abloy
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Crawford helps Lidl to be the most energy-efficient in the retail cool chain
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Megadoor helps Cleveland Hopkins International Airport control the climate during the cold winter months
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Besam helps Vietland hospital in the Netherlands to provide comfort and security
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iRevo is Korea’s largest supplier of digital door locks with distribution in Korea, China, the US and Europe
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Berlin TV-tower secured by the intelligent locking solution CLIQ
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www.assaabloy.com
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