ASSA ABLOY

Quarterly Report • Apr 27, 2022

Quarterly Report Q1 2022 27 April 2022

Experience a safer and more open world

A strong start to the year

First quarter

• Net sales increased by 22% to SEK 26,591 M (21,805), with organic growth of 14% (4) and acquired net growth of 0% (4)
• Very strong organic sales growth in Americas, Entrance Systems and Global Technologies and strong growth in EMEIA, while organic sales declined in Asia Pacific
• Three acquisitions with combined annual sales of about SEK 250 M were signed in the quarter
• Operating income (EBIT) was SEK 4,001 M (3,187), corresponding to an operating margin of 15.0% (14.6)
• Net income amounted to SEK 2,859 M (2,253)
• Earnings per share increased to SEK 2.57 (2.03)
• Operating cash flow amounted to SEK 912 M (2,636).

Organic growth

Operating income

Earnings per share +27%

	Full year		First quarter
	2020	2021	Δ	2021	2022	Δ
Sales, SEK M	87,649	95,007	8%	21,805	26,591	22%
Of which:
Organic growth	–7,150	8,900	11%	827	3,287	14%
Acquisitions and divestments	3,328	1,975	2%	866	–52	0%
Exchange-rate effects	–2,558	–3,517	–5%	–2,060	1,551	8%
Operating income (EBIT)1 , SEK M	11,916	14,181	19%	3,187	4,001	26%
Operating margin (EBITA)1 , %	14.3%	15.6%		15.3%	15.6%
Operating margin (EBIT)1 , %	13.6%	14.9%		14.6%	15.0%
Income before tax1 , SEK M	11,133	13,538	22%	3,045	3,811	25%
Net income1 , SEK M	8,375	10,901	30%	2,253	2,859	27%
Operating cash flow, SEK M	14,560	13,265	–9%	2,636	912	–65%
Earnings per share1 , SEK	7.54	9.81	30%	2.03	2.57	27%

Sales and income

¹ Excluding costs before income tax for restructuring programs in the fourth quarter 2020, totaling SEK –1,366 M. The corresponding costs after tax was SEK –1,112 M. Excluding non-cash operating income in third quarter 2020 from revaluation at fair value of 39% ownership in agta record, totaling SEK 1,909 M for the year. The operating income had no tax impact.

Comments by the President and CEO

A strong start to the year

We had a good start to 2022, with very strong organic sales growth and margin improvement. This was driven by robust demand and price adjustments. During the quarter we have addressed multiple operational challenges – these include higher material costs; supply-chain issues including semiconductor shortages; very high sick leave due to Omicron; and record high energy costs - but thanks to excellent operational execution we can report a solid improvement of the operating margin.

Our organic sales grew by 14%, accompanied by 8% positive currency effects and net-zero sales growth from acquisitions and divestments. Americas and Entrance Systems delivered exceptionally strong organic sales growth of 22% and 20% respectively. This was driven by positive underlying market conditions in the US, strong demand in the non-residential segments, and price realization. Global Technologies also grew very strongly by 11%, driven by a partial recovery of the travel related businesses and increased mobility. EMEIA reported strong organic growth of 7% with strong growth in the emerging markets, the Nordics and the DACH region. Organic sales in Asia Pacific declined by 2% as demand in China continued to be weak.

Operating income increased by 26% to SEK 4,001 M and the operating margin improved by 40 bps to 15.0%. As we continue to build-up inventory to safeguard deliveries and due also to the impact of material inflation on inventory, our cash flow was lower than last year, totaling SEK 912 M. We expect the cash conversion rate to gradually improve going forward.

Long-term growth drivers remain solid

While macro-economic and geopolitical uncertainties have increased, our business benefits from many long-term growth drivers. The basic need for safety and security is a fundamental driver. This is further supported by the increasing demand for flexible and convenient access solutions enabled by new technologies, urbanization and increased focus on sustainability. Specifically, the transition to electromechanical and mobile access solutions provides many opportunities. In the last few years, we have launched numerous partnerships with leading technology companies. One example is our collaboration with Apple, which was extended with the launch of employee badge in Apple Wallet at Silverstein Properties' high-profile 7 World Trade Center property in New York City during the first quarter. These partnerships will further accelerate our mobile credential business.

During the quarter, we signed three acquisitions and the activity level remains high.

It was with great sadness that we witnessed Russia's invasion of Ukraine and the humanitarian crisis that has followed. Our thoughts are with all the people who are affected by this conflict. Although our direct exposure to Russia and Ukraine is limited, it has indirect business effects. Nevertheless, with many positive long-term growth drivers and after a strong start to the year, we are confident that the Group is in a good position to continue its positive journey.

Stockholm, 27 April 2022

Nico Delvaux President and CEO

SEK M

Sales, 12 months

Operating cash flow, 12 months

First quarter

The Group's sales increased by 22% to SEK 26,591 M (21,805). Organic growth amounted to 14% (4). Growth from acquisitions and divestments was 0% (4), of which 1% (5) were acquisitions and –1% (–1) were divestments. Exchangerates affected sales by 8% (–10).

The Group's operating income (EBIT) amounted to SEK 4,001 M (3,187), an increase of 26%. The corresponding operating margin was 15.0% (14.6). Exchange-rates had an impact of SEK 212 M (–261) on EBIT. Operating income before amortizations from acquisitions (EBITA) amounted to SEK 4,153 M (3,341). The corresponding EBITA margin was 15.6% (15.3).

Net financial items amounted to SEK –190 M (–142). The Group's income before tax was SEK 3,811 M (3,045), an increase of 25% compared with last year. Exchange-rates had an impact of SEK 203 M (–247) on income before tax. The profit margin was 14.3% (14.0).

The estimated effective income tax rate on an annual basis was 25% (26). Earnings per share amounted to SEK 2.57 (2.03), an increase of 27% compared with last year. Operating cash flow totaled SEK 912 M (2,636), which corresponds to a cash conversion of 0.24 (0.87).

Organization

Helle Bay has been appointed Executive Vice President and Chief Human Resources Officer for the ASSA ABLOY Group, succeeding Maria Romberg Ewerth who has left the Group. The appointment is effective from June 1, 2022. Helle has previous experience from various senior HR positions in Scania Group and Vestas Wind Systems, and she holds a Bachelor's degree in organization from Aarhus School of Business and Social Sciences and a Human Resources diploma from Aarhus Business College in Denmark.

Restructuring measures

Payments related to all restructuring programs amounted to SEK 68 M (138) during the quarter. The restructuring programs proceeded according to plan. At the end of the quarter provisions of SEK 600 M remained in the balance sheet for carrying out the programs.

Quarterly comments by division

Opening Solutions EMEIA

Sales for the quarter in EMEIA totaled SEK 5,309 M (5,058), with organic growth of 7% (5). Sales growth was very strong in Eastern Europe, Middle East, Africa, India and Finland, strong in DACH, Scandinavia and South Europe, good in France and stable in the UK. Sales declined in Benelux. Net sales growth from acquisitions and divestments was –5%. Operating income totaled SEK 776 M (755), which represents an operating margin (EBIT) of 14.6% (14.9). Return on capital employed, on an annualized basis, amounted to 16.2% (12.9). Operating cash flow before non-cash items and interest paid totaled SEK 23 M (587).

Opening Solutions Americas

Sales for the quarter in Americas totaled SEK 6,241 M (4,604), with organic growth of 22% (0). Sales growth was strong in Canada and very strong in all other product areas and regions. Sales growth from acquisitions was 1%. Operating income totaled SEK 1,265 M (955), which represents an operating margin (EBIT) of 20.3% (20.7). Return on capital employed, on an annualized basis, amounted to 30.5% (25.3). Operating cash flow before non-cash items and interest paid totaled SEK 552 M (727).

Opening Solutions Asia Pacific

Sales for the quarter in Asia Pacific totaled SEK 1,879 M (1,773), with organic growth of –2% (23). Sales growth was very strong in Pacific, good in South East Asia and stable in South Korea, but sales declined significantly in China. Sales growth from acquisitions and internal segment transfers was 1%. Operating income totaled SEK 67 M (78), which represents an operating margin (EBIT) of 3.5% (4.4). Return on capital employed, on an annualized basis, amounted to 5.6% (7.2). Operating cash flow before non-cash items and interest paid totaled SEK –226 M (–94).

Global Technologies

Sales for the quarter in Global Technologies totaled SEK 4,051 M (3,301), with organic growth of 11% (–9). Sales growth was very strong in Citizen ID, Identification Technology and Secure Issuance, strong in Extended Access and stable in Identity & Access Solutions, but sales declined in Physical Access Control. Sales growth in Global Solutions was very strong. Sales growth from acquisitions and internal segment transfers was 2%. Operating income totaled SEK 516 M (472), which represents an operating margin (EBIT) of 12.7% (14.3). Return on capital employed, on an annualized basis, amounted to 10.4% (8.6). Operating cash flow before non-cash items and interest paid totaled SEK 353 M (630).

Entrance Systems

Sales for the quarter in Entrance Systems totaled SEK 9,653 M (7,499), with organic growth of 20% (11). Sales growth was very strong in Residential, Perimeter Security and Industrial and good in Pedestrian. Sales growth from acquisitions was 1%. Operating income totaled SEK 1,555 M (1,096), which represents an operating margin (EBIT) of 16.1% (14.6). Return on capital employed, on an annualized basis, amounted to 16.8% (14.3). Operating cash flow before non-cash items and interest paid totaled SEK 621 M (1,058).

Acquisitions and divestments

One acquisition was consolidated during the quarter. The combined acquisition price for the businesses acquired during the year, including adjustments from prior-year acquisitions, amounted to SEK 18 M. The corresponding acquisition price on a cash and debt free basis totaled SEK 37 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life were reduced by SEK 48 M. Estimated deferred considerations for acquisitions made during the year amounted to SEK 3 M.

On March 21 it was announced that ASSA ABLOY has entered into an agreement to acquire JOTEC, a leading regional industrial door distributor and service company in Germany. The business has some 100 employees, with its head office in Erkelenz, Germany. Sales for 2021 amounted to about SEK 200 M.

The acquisition is subject to regulatory approval and customary closing conditions and is expected to close during the second quarter of 2022.

On January 17 it was announced that ASSA ABLOY has entered into an agreement to acquire Vigil Health Solutions, a leader in innovative call systems and resident-monitoring solutions for senior living. The business is listed on the TSX Venture Exchange and has some 30 employees, with its head office in Victoria, Canada. Sales for 2021 amounted to about SEK 40 M. The acquisition was completed on April 1, 2022.

Sustainable development

ASSA ABLOY's Sustainability Report for 2021 was published on 7 March 2022. During 2021 we increased our focus on sustainability and we have made good progress in our sustainability program and targets, which run up to 2025.

In 2021, against our 2019 baseline, we reduced our water intensity by 24%, our waste intensity by 2% and our organic solvent intensity by 48%. Carbon emissions achieved a reduction of 17%. Our injury rate fell by 20% against our 2019 baseline, due to the continued development and roll-out of our ASSA ABLOY Health & Safety program.

During 2021 we carried out 861 sustainability audits of direct material suppliers. The Group had 276 Environmental Product Declarations verified and published by the end of 2021.

ASSA ABLOY continues to work towards setting our science-based targets, which we look forward to announcing during the year.

Parent company

Other operating income for the Parent company ASSA ABLOY AB totaled SEK 615 M (554) for the first quarter of 2022. Operating income for the same period amounted to SEK –651 M (–366). Investments in tangible and intangible assets totaled SEK 2 M (0). Liquidity is good and the equity ratio is 43.9% (43.0).

Accounting principles

ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the previous Annual Report have been applied. No new or amended standards with material impact on the Group´s financial reports have been applied for the first time in 2022.

This Report was prepared in accordance with IAS 34 'Interim Financial Reporting' and the Annual Accounts Act. The Report for the Parent company was prepared in accordance with the Annual Accounts Act and RFR 2 'Reporting by a Legal Entity'.

ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules that the company uses – so-called 'alternative performance measures'. For definitions of financial performance measures, refer to Page 17 of this Report. Information about how these measures have been calculated is available on the company's website www.assaabloy.com.

To check how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2021 appear on the company's website.

Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source and rounding differences may therefore arise.

Transactions with related parties

No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties.

Risks and uncertainty factors

ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY's operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group's financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest rate risk, credit risk, and risks associated with the Group's pension obligations.

Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general. The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group.

The Covid-19 pandemic has had a substantial business impact on ASSA ABLOY. The continued impact of the pandemic on the business is difficult to predict due to the uncertainty of market conditions, but the health and safety of our employees remains our first priority.

For a more detailed description of particular risks and risk management, please see the 2021 Annual Report.

M&A and FX guidance

The guidance below relating to two key figures is provided to facilitate financial modeling but should not be viewed as forecasting market outlooks or ASSA ABLOY's business performance.

Acquisitions and divestments

It is estimated that completed acquisitions and divestments, on a rolling 12 month basis at 31 March 2022, will have an effect of 0% on sales in the second quarter of 2022 versus the same period last year, while the effect on the operating margin is estimated to be slightly dilutive in the second quarter of 2022.

Exchange-rate effects

On the basis of the currency rates on 31 March 2022, it is estimated that the weighted currency effects on sales in the second quarter of 2022 versus the same period last year will be 9%, while the effect on the operating margin is estimated to be neutral in the second quarter of 2022.

Review

The Company's Auditors have not carried out any review of this Report for the first quarter of 2022.

Stockholm, 27 April 2022

Nico Delvaux President and CEO

Financial information

The Quarterly Report for the second quarter of 2022 will be published on 19 July 2022.

The Quarterly Report for the third quarter of 2022 will be published on 26 October 2022.

Further information can be obtained from:

Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82

Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72

ASSA ABLOY is holding a telephone and web conference at 09.30 on 27 April 2022 which can be followed online at www.assaabloy.com.

It is possible to submit questions by telephone on: 08–505 583 59, +44 333 300 9265 or +1 631 913 1422

This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on 27 April 2022.

ASSA ABLOY AB (publ) Box 703 40 107 23 Stockholm Visiting address Klarabergsviadukten 90, Stockholm, Sweden Tel +46 (0)8 506 485 00 Fax +46 (0)8 506 485 85 www.assaabloy.com Corporate identity number: 556059-3575 No.09/2022

Financial information - Group

CONDENSED INCOME STATEMENT	Year

CONDENSED INCOME STATEMENT	Year	Q1
SEK M	2021	2021	2022
Sales	95,007	21,805	26,591
Cost of goods sold	-57,231	-13,084	-16,115
Gross income	37,777	8,722	10,476
Selling, administrative and R&D costs	-23,614	-5,537	-6,480
Share of earnings in associates	19	,3	,6
Operating income	14,181	3,187	4,001
Finance net	-643	-142	-190
Income before tax	13,538	3,045	3,811
Tax on income	-2,638	-792	-953
Net income for the period	10,901	2,253	2,859
Net income for the period attributable to:
Parent company's shareholders	10,900	2,253	2,858
Non-controlling interests	1	0	0
Earnings per share
Before and after dilution, SEK	9.81	2.03	2.57
Before and after dilution and excluding items affecting comparability, SEK	9.81	2.03	2.57
CONDENSED STATEMENT OF COMPREHENSIVE INCOME	Year	Q1
SEK M	2021	2021	2022
Net income for the period	10,901	2,253	2,859
Other comprehensive income: Items that will not be reclassified to profit or loss
Actuarial gain/loss on post-employment benefit obligations, net after tax	705	458	-10
Total	705	458	-10
Items that may be reclassified subsequently to profit or loss
Share of other comprehensive income of associates	-6	-10	-26
Cashflow hedges and net investment hedges, net after tax	-17	-13	7
Exchange rate differences	3,468	2,133	1,205
Total	3,444	2,109	1,186
Total comprehensive income for the period	15,050	4,821	4,035
Total comprehensive income for the period attributable to:
Parent company's shareholders	15,049	4,820	4,035
Non-controlling interests	1	1	0

Financial information - Group

CONDENSED BALANCE SHEET	31 Dec		31 Mar
SEK M		2021	2021	2022
ASSETS
Non-current assets
Intangible assets		76,336	75,268	77,478
Property, plant and equipment		8,753	8,329	8,934
Right-of-use assets		3,436	3,619	3,450
Investments in associates		652	638	637
Other financial assets		267	218	273
Deferred tax assets		1,264	1,159	1,162
Total non-current assets		90,707	89,232	91,933
Current assets
Inventories		13,933	10,995	15,914
Trade receivables		15,844	14,716	17,186
Other current receivables and investments		5,165	4,880	6,144
Cash and cash equivalents		4,325	3,610	4,113
Total current assets		39,267	34,201	43,357
TOTAL ASSETS		129,975		123,433 135,290
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent company's shareholders		69,582	63,649	73,568
Non-controlling interests		9	10	9
Total equity		69,592	63,658	73,577
Non-current liabilities
Long-term loans		20,195	22,499	19,723
Non-current lease liabilities		2,433	2,544	2,365
Deferred tax liabilities		2,581	2,936	2,616
Other non-current liabilities and provisions		3,899	4,342	3,860
Total non-current liabilities		29,108	32,321	28,563
Current liabilities
Short-term loans		5,042	3,703	5,651
Current lease liabilities		1,082	1,134	1,170
Trade payables		9,527	7,565	9,688
Other current liabilities and provisions		15,625	15,051	16,641
Total current liabilities		31,276	27,453	33,149
TOTAL EQUITY AND LIABILITIES		129,975		123,433 135,290
CHANGES IN EQUITY		Equity attributable to:
	Parent	Non

	company's	controlling	Total
SEK M	shareholders	interests	equity
Opening balance 1 January 2021	58,870	9	58,879
Net income for the period	2,253	0	2,253
Other comprehensive income	2,567	0	2,567
Total comprehensive income	4,820	1	4,821
Stock purchase plans	-42	-	-42
Total transactions with shareholders	-42	-	-42
Closing balance 31 March 2021	63,649	10	63,658

Opening balance 1 January 2022	69,582	9	69,592
Net income for the period	2,858	0	2,859
Other comprehensive income	1,177	-1	1,176
Total comprehensive income	4,035	0	4,035
Stock purchase plans	-49	-	-49
Total transactions with shareholders	-49	-	-49
Closing balance 31 March 2022	73,568	9	73,577

Financial information - Group

2021 2021 2022 SEK M OPERATING ACTIVITIES 14,181 3,187 4,001 Operating income 3,841 929 939 Depreciation and amortization 178 Other non-cash items -57 13 -563 -138 -68 Restructuring payments Cash flow before interest and tax 17,638 3,920 4,886 Interest paid and received -569 -122 -133 -3,117 -532 -597 Tax paid on income Cash flow before changes in working capital 13,952 3,266 4,155 Changes in working capital -1,496 -701 -3,261 12,456 2,565 894 Cash flow from operating activities INVESTING ACTIVITIES Net investments in intangible assets and property, plant and equipment -1,629 -289 -336 -2,121 -296 -47 Investments in subsidiaries Divestments of subsidiaries 699 34 2 -43 0 0 Other investments and disposals Cash flow from investing activities -3,094 -551 -380 FINANCING ACTIVITIES -4,333 Dividends - -
-1,242 -311 -312 Amortization of lease liabilities
-2,238 -862 -422 Net cash effect of changes in borrowings
-7,813 -1,173 -734 Cash flow from financing activities
1,549 841 -220 CASH FLOW FOR THE PERIOD
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of period 2,756 2,756 4,325
1,549 841 -220 Cash flow for the period 20 13 7
Effect of exchange rate differences 4,325 3,610 4,113 Cash and cash equivalents at end of period

Quarterly information - Group

THE GROUP IN SUMMARY SEK M	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Year 2021	Last 12 months
Sales	22,173	19,953	22,225	23,298	21,805	23,648	23,930	25,623	26,591	95,007	99,793
Organic growth	-3%	-18%	-5%	-5%	4%	23%	7%	10%	14%	11%	-
Gross income1	8,973	7,648	9,026	9,278	8,722	9,438	9,535	10,082	10,476	37,777	39,531
Gross margin 1	40.5%	38.3%	40.6%	39.8%	40.0%	39.9%	39.8%	39.3%	39.4%	39.8%	39.6%
EBITDA1	3,676 16.6%	3,024 15.2%	4,505 20.3%	4,487 19.3%	4,115 18.9%	4,552 19.3%	4,373 18.3%	4,982 19.4%	4,941 18.6%	18,023 19.0%	18,848 18.9%
EBITDA margin 1 Depreciation, excl attrib. to business combinations	-792	-787	-771	-853	-774	-812	-833	-821	-788	-3,241	-3,255
EBITA1	2,884	2,237	3,734	3,634	3,341	3,740	3,539	4,161	4,153	14,782	15,593
EBITA margin 1	13.0%	11.2%	16.8%	15.6%	15.3%	15.8%	14.8%	16.2%	15.6%	15.6%	15.6%
Amortization attrib. to business combinations	-133	-141	-142	-159	-154	-151	-147	-148	-151	-601	-597
Operating income (EBIT)1	2,751	2,097	3,593	3,475	3,187	3,589	3,392	4,013	4,001	14,181	14,996
Operating margin (EBIT) 1	12.4%	10.5%	16.2%	14.9%	14.6%	15.2%	14.2%	15.7%	15.0%	14.9%	15.0%
Items affecting comparability	-	-	1,910	-1 367	-	-	-	-	-	-	-
Operating income (EBIT) Operating margin (EBIT)	2,751 12.4%	2,097 10.5%	5,502 24.8%	2,108 9.0%	3,187 14.6%	3,589 15.2%	3,392 14.2%	4,013 15.7%	4,001 15.0%	14,181 14.9%	14,996 15.0%
Net financial items	-232	-205	-176	-169	-142	-148	-159	-194	-190	-643	-691
Income before tax	2,519	1,892	5,326	1,938	3,045	3,441	3,233	3,819	3,811	13,538	14,304
Profit margin	11.4%	9.5%	24.0%	8.3%	14.0%	14.6%	13.5%	14.9%	14.3%	14.2%	14.3%
Tax on income	-655	-492	-888	-469	-792	-229	-841	-776	-953	-2,638	-2,799
Net income for the period	1,864	1,400	4,438	1,470	2,253	3,212	2,392	3,043	2,859	10,901	11,506
Net income attributable to:
Parent company's shareholders	1,864	1,399	4,437	1,471	2,253	3,212	2,393	3,042	2,858	10,900	11,505
Non-controlling interests	1	1	1	-1	0	0	0	1	0	1	1
OPERATING CASH FLOW	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Year	Last 12
SEK M	2020	2020	2020	2020	2021	2021	2021	2021	2022	2021	months
Operating income (EBIT)	2,751	2,097	5,502	2,108	3,187	3,589	3,392	4,013	4,001	14,181	14,996
Reversal items affecting comparability	-	-	-1,910	1 367	-	-	-	-	-	-	-
Depreciation and amortization	925	927	912	1,012	929	963	980	969	939	3,841	3,852
Net capital expenditure	-491	-442	-301	-439	-289	-388	-407	-545	-336	-1,629	-1,675
Change in working capital Interest paid and received	-1,485 -172	1,460 -244	820 -90	1,811 -189	-701 -122	-9 -175	-157 -110	-629 -162	-3,261 -133	-1,496 -569	-4,056 -581
Repayment of lease liabilities	-326	-322	-308	-319	-311	-315	-313	-303	-312	-1,242	-1,243
Non-cash items	4	-58	-219	178	-57	-39	233	41	13	178	248
Operating cash flow	1,206	3,418	4,407	5,529	2,636	3,627	3,619	3,384	912	13,265	11,541
Cash conversion	0.48	1.81	1.29	1.67	0.87	1.05	1.12	0.89	0.24	0.98	0.81
CHANGE IN NET DEBT	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Year	Last 12
SEK M	2020	2020	2020	2020	2021	2021	2021	2021	2022	2021	months
Net debt at beginning of period	33,050 -1,206	36,371 -3,418	34,112 -4,407	35,059 -5,529	29,755 -2,636	29,160 -3,627	28,509 -3,619	25,732 -3,384	27,071 -912	29,755 -13,265	29,160 -11,541
Operating cash flow Restructuring payments	83	173	155	337	138	129	130	166	68	563	492
Tax paid on income	878	474	1,104	648	532	820	805	960	597	3,117	3,182
Acquisitions and divestments	1,584	86	4,331	-497	385	472	-632	975	67	1,201	882
Dividend	-	2,222	-	2,055	-	2,167	1	2,166	-	4,333	4,333
Actuarial gain/loss on post-employment benefit oblig.	139	407	94	-321	-619	-44	-37	-216	11	-917	-286
Change to lease liabilities	-1	-110	98	-93	-29	-97	7	33	-76	-86	-132
Exchange rate differences, etc.	1,845	-2,093	-428	-1,904	1,633	-471	568	639	791	2,370	1,527
Net debt at end of period Net debt/Equity	36,371 0.58	34,112 0.58	35,059 0.56	29,755 0.51	29,160 0.46	28,509 0.45	25,732 0.38	27,071 0.39	27,617 0.38	27,071	27,617
NET DEBT	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK M	2020	2020	2020	2020	2021	2021	2021	2021	2022
Interest-bearing assets	-108	-76	-47	-205	-189	-176	-177	-177	-177
Cash and cash equivalents	-1,676	-3,726	-4,906	-2,756	-3,610	-3,544	-5,995	-4,325	-4,113
Derivative financial instruments, net	-469 3,642	-441 3,887	-350 4,164	-255 3,514	83 2,995	1 2,922	62 2,949	86 2,736	283 2,715
Pension provisions Lease liabilities	3,924	3,614	3,818	3,562	3,678	3,530	3,401	3,515	3,534
Interest-bearing liabilities	31,059	30,853	32,379	25,895	26,202	25,776	25,492	25,237	25,374
Total	36,371	34,112	35,059	29,755	29,160	28,509	25,732	27,071	27,617
CAPITAL EMPLOYED AND FINANCING SEK M	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Goodwill	61,573	58,243	64,013	58,344	60,822	60,198	60,604	62,502	63,600
Other intangible assets	13,217	12,502	12,716	14,108	14,446	14,004	13,920	13,834	13,877
Property, plant and equipment	8,972	8,562	8,897	8,026	8,329	8,186	8,325	8,753	8,934
Right-of-use assets Other capital employed	3,909 12,486	3,592 10,726	3,779 8,190	3,513 5,867	3,619 6,721	3,466 7,588	3,330 7,623	3,436 8,796	3,450 11,932
Restructuring reserve	-729	-522	-363	-1,224	-1,119	-971	-848	-658	-600
Capital employed	99,428	93,103	97,232	88,634	92,818	92,471	92,954	96,663	101,193
Net debt	36,371	34,112	35,059	29,755	29,160	28,509	25,732	27,071	27,617
Non-controlling interests	13	12	12	9	10	9	8	9	9
Equity attributable to Parent company´s shareholders	63,044	58,980	62,161	58,870	63,649	63,953	67,214	69,582	73,568
OTHER KEY RATIOS ETC	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Earnings per share, SEK	1,68	1,26	3,99	1,32	2,03	2,89	2,15	2,74	2,57
Earnings per share, excl IAC, SEK	1,68	1,26	2,28	2,33	2,03	2,89	2,15	2,74	2,57
Shareholders' equity per share, SEK	56,76 15,2%	53,10 13,4%	55,96 13,1%	53,00 12,5%	57,30 13,1%	57,57 14,9%	60,51 14,6%	62,64 15,2%	66,23 15,7%
Return on capital employed Return on equity	16,3%	15,0%	17,0%	15,5%	15,1%	18,5%	14,4%	17,0%	16,8%
Net debt/EBITDA	2,0	2,1	2,2	1,9	1,8	1,6	1,5	1,5	1,5
Average number of employees	48,801	46,979	47,553	48,471	49,685	50,727	50,946	50,934	50,984
Average adjusted capital employed	94,636	95,340	95,452	95,002	94,230	93,076	93,287	93,199	95,766
Average number of shares, thousands Items affecting comparability, net of tax	-	-	1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,910	-1,112	-	-	-	-	-

1) Excluding items affecting comparability (IAC)

Reporting by division

Q1 and 31 Mar								Global		Entrance
		EMEIA		Americas	Asia Pacific			Technologies	Systems		Other		Total
SEK M	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022
Sales, external	4,956	5,175	4,559	6,209	1,544	1,561	3,275	4,018	7,471	9,628	-	-	21,805	26,591
Sales, internal	101	134	46	31	229	318	26	33	28	25	-430	-542	-	-
Sales	5,058	5,309	4,604	6,241	1,773	1,879	3,301	4,051	7,499	9,653	-430	-542	21,805	26,591
Organic growth	5%	7%	0%	22%	23%	-2%	-9%	11%	11%	20%	-	-	4%	14%
Acquisitions and divestments	1%	-5%	1%	1%	-4%	1%	3%	2%	12%	1%	-	-	4%	0%
Exchange-rate effects	-6%	3%	-14%	13%	-7%	7%	-10%	10%	-12%	8%	-	-	-10%	8%
Operating income (EBIT)	755	776	955	1,265	78	67	472	516	1,096	1,555	-169	-177	3,187	4,001
Operating margin (EBIT)		14.9% 14.6%		20.7% 20.3%	4.4%	3.5%		14.3% 12.7%		14.6% 16.1%	-	-	14.6%	15.0%
OPERATING CASH FLOW
SEK M
Operating income (EBIT)	755	776	955	1,265	78	67	472	516	1,096	1,555	-169	-177	3,187	4,001
Depreciation and amortization	231	206	112	127	78	79	227	239	271	278	10	10	929	939
Net capital expenditure	-82	-86	-67	-83	-40	-25	-37	-46	-62	-92	-1	-4	-289	-336
Amortization of lease liabilities	-81	-62	-34	-41	-24	-26	-36	-36	-134	-142	-2	-5	-311	-312
Change in working capital	-236	-811	-239	-716	-187	-321	4	-321	-112	-977	69	-116	-701	-3,261
Operating cash flow by division	587	23	727	552	-94	-226	630	353	1,058	621	-93	-291	2,814	1,032
Non-cash items											-57	13	-57	13
Interest paid and received											-122	-133	-122	-133
Operating cash flow													2,636	912
CAPITAL EMPLOYED
SEK M
Goodwill	10,986	11,026		11,053 12,126	3,958	4,153		15,631 16,446	19,194	19,850	-	-	60,822	63,600
Other intangible assets	1,367	1,077	1,236	1,263	983	1,027	4,207	3,785	6,612	6,684	41	42	14,446	13,877
Property, plant and equipment	2,195	2,421	1,632	1,818	1,436	1,497	1,106	1,208	1,905	1,943	53	47	8,329	8,934
Right-of-use assets	1,008	916	393	473	268	246	513	489	1,411	1,282	26	44	3,619	3,450
Other capital employed	2,458	2,660	-519	912	2,120	2,412	855	1,025	2,473	4,419	-667	504	6,721	11,932
Adjusted capital employed		18,015 18,099		13,795 16,593	8,765	9,335		22,313 22,953		31,595 34,176	-547	637		93,937 101,793
Restructuring reserve	-419	-252	-23	-1	-178	-100	-137	-109	-212	-106	-150	-32	-1,119	-600
Capital employed		17,596 17,847		13,773 16,591	8,586	9,236		22,176 22,845		31,383 34,071	-697	604		92,818 101,193
Return on capital employed		12.9% 16.2%		25.3% 30.5%	7.2%	5.6%		8.6% 10.4%		14.3% 16.8%	-	-	13.1%	15.7%
Average adjusted capital employed	18,712	18,119		14,258 14,774	8,713	8,710		22,460 22,142		30,407 32,341	-	-	94,230	95,766
Average number of employees	12,037	11,755	8,797	9,392	8,321	7,676	6,284	6,861	13,981	14,916	266	384	49,685	50,984

Reporting by division

Jan-Dec and 31 Dec								Global		Entrance
	EMEIA			Americas	Asia Pacific			Technologies		Systems	Other		Total
SEK M	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021
Sales, external		18 563 20 040		18 907 20 356	7 916	7 549		14 054 14 495		28 210 32 568	-	-	87 649	95 007
Sales, internal	418	483	107	151	926	1 170	105	109	113	123		-1 668 -2 036	-	-
Sales			18 982 20 522 19 013 20 507				8 841 8 719 14 158 14 604 28 323 32 690				-1 668 -2 036			87 649 95 007
Organic growth	-8%	13%	-7%	14%	-16%	2%	-15%	5%	-2%	14%	-	-	-8%	11%
Acquisitions and divestments	-1%	-2%	-9%	1%	1%	-2%	10%	3%	15%	7%	-	-	4%	2%
Exchange-rate effects	-1%	-3%	-2%	-7%	-2%	-1%	-3%	-5%	-2%	-6%	-	-	-3%	-5%
Share of earnings in associates	-	-	-	-	9	18	9	1	239	-1	0	-	257	19
EBIT, excl items affecting comparability		2 263 2 916		3 698 4 200	396	499		2 023 2 253		4 083 4 988	-547	-675		11 916 14 181
EBIT margin, excl items affecting comparability		11,9% 14,2%		19,4% 20,5%	4,5%	5,7%		14,3% 15,4%		14,4% 15,3%	-	-	13,6%	14,9%
Restructuring costs	-448	-	-51	-	-303	-	-195	-	-220	-	-150	-	-1 366	-
Revaluation of associate shareholding	-	-	-	-	-	-	-	-	1 909	-	-	-	1 909	-
Operating income (EBIT)		1 815 2 916		3 647 4 200	93	499		1 828 2 253		5 772 4 988	-697	-675		12 458 14 181
Operating margin (EBIT)		9,6% 14,2%		19,2% 20,5%	1,1%	5,7%		12,9% 15,4%		20,4% 15,3%	-	-	14,2%	14,9%
Operating income (EBIT)	1 815	2 916	3 647	4 200	93	499	1 828	2 253	5 772	4 988	-697	-675	12 458	14 181
Revaluation of associate shareholding	448	-	51	-	303	-	195	-	-1 689	-	150	-	-542	-
Depreciation and amortization	925	969	471	493	355	306	917	923	1 078	1 114	30	37	3 776	3 841
Net capital expenditure	-407	-475	-267	-351	-192	-182	-430	-250	-330	-361	-47	-10	-1 674	-1 629
Amortization of lease liabilities	-318	-306	-132	-148	-108	-92	-144	-144	-559	-537	-14	-15	-1 275	-1 242
Change in working capital	476	-14	1 067	-471	311	-247	144	397		702 -1 233	-94	73	2 606	-1 496
Operating cash flow by division		2 939 3 089		4 837 3 722	762	285		2 509 3 179		4 974 3 971	-673	-591		15 349 13 656
Non-cash items											-95	178	-95	178
Interest paid and received											-694	-569	-694	-569
Operating cash flow														14 560 13 265
Capital employed		16 849 17 063		13 201 15 908	8 191	8 653		21 044 22 326		30 231 32 787	-883	-74	88 634	96 663
- of which goodwill		10 475 10 949		10 444 11 700	3 884	4 028		14 881 16 164		18 660 19 662	-	-	58 344	62 502
- of which other intangible assets and PPE	3 485	3 516	2 713	2 977	2 375	2 483	5 100	5 059	8 362	8 461	99	90	22 134	22 587
- of which right-of-use assets	998	937	387	430	264	243	457	512	1 390	1 270	17	44	3 513	3 436
- of which investments in associates	1	1	-	-	589	602	28	32	20	17	-	-	637	652
Return on capital employed		11,9% 16,2%		24,4% 30,0%	4,4%	5,9%		8,9% 10,4%		13,9% 15,8%	-	-	12,5%	15,2%
Average adjusted capital employed		19 050 17 991		15 186 13 986	8 910	8 498		22 757 21 751		29 352 31 525	-	-	95 002	93 199
Average number of employees		10 281 11 848	8 787	9 298	9 892	8 259	6 374	6 556		12 883 14 604	254	369	48 471	50 934

Financial information - Notes

NOTE 1 DISAGGREGATION OF REVENUE

Sales by continent Q1							Global		Entrance
	EMEIA		Americas			Asia Pacific		Technologies		Systems		Other		Total
SEK M	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022
Europe	4,456	4,579	28	24	144	147	949	1,204	3,510	3,970	-214	-219	8,872	9,705
North America	91	114	4,098	5,630	199	303	1,615	1,822	3,496	5,167	-129	-225	9,370	12,812
Central- and South America	15	24	442	553	11	11	75	147	17	20	-10	-7	549	748
Africa	196	215	3	8	2	2	65	123	17	11	-9	-8	274	351
Asia	275	343	31	23	868	760	429	550	238	252	-41	-48	1,800	1,879
Oceania	25	32	2	3	550	656	168	206	221	233	-27	-35	940	1,096
Total	5,058	5,309	4,604	6,241	1,773	1,879	3,301	4,051	7,499	9,653	-430	-542		21,805 26,591

Sales by product group Q1							Global		Entrance
	EMEIA			Americas		Asia Pacific		Technologies		Systems		Other		Total
SEK M	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022
Mechanical locks, lock systems and fittings	2,443	2,634	1,974	2,483	916	1,014	79	73	2	2	-162	-193	5,252	6,014
Electromechanical and electronic locks	1,665	1,646	1,136	1,644	384	445	3,211	3,975	271	267	-210	-285	6,457	7,692
Security doors and hardware	820	906	1,487	2,099	456	375	12	3	690	938	-25	-35	3,439	4,287
Entrance automation	129	123	7	15	17	44	-	-	6,536	8,446	-32	-30	6,657	8,599
Total	5,058	5,309	4,604	6,241	1,773	1,879	3,301	4,051	7,499	9,653	-430	-542		21,805 26,591

NOTE 2 BUSINESS COMBINATIONS

Consolidated acquisitions 2022

			Number of	Approx.	Month of
Acquisition	Division	Country	employees	sales in 2021	consolidation
Keytechnik	Global Technologies	Belgium	<50	<50 SEK M	2022-03

Q1	Year	Q1
SEK M 2021	2021	2021	2022
Purchase prices
Cash paid for acquisitions during the year 0	1,743	149	8
Holdbacks and deferred considerations for acquisitions during the year 0	150	53	3
Adjustment of purchase prices for acquisitions in prior years 0	-6	-6	8
Total 0	1,887	196	18
Acquired assets and liabilities at fair value
Intangible assets 0	151	133	100
Property, plant and equipment and right-of-use assets 0	118	8	23
Other non-current assets 0	3	1	0
Inventories 0	233	28	11
Current receivables and investments 0	332	52	-37
Cash and cash equivalents 0	180	80	2
Non-current liabilities 0	-43	-115	-18
Current liabilities 0	-363	-62	-13
Total 0	611	126	66
Goodwill 0	1,276	70	-48
Change in cash and cash equivalents due to acquisitions
Cash paid for acquisitions during the year 0	1,743	149	8
Cash and cash equivalents in acquired subsidiaries 0	-180	-80	-2
Paid considerations for acquisitions in prior years 0	557	227	40
Total 0	2,121	296	47

Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.

Financial information - Notes

NOTE 3 FAIR VALUE AND CARRYING AMOUNT ON FINANCIAL ASSETS AND LIABILITIES

31 March 2022			Financial instruments at fair value
	Carrying	Fair
SEK M	amount	value	Level 1	Level 2 Level 3
Financial assets
Financial assets at amortized cost	21,525	21,525
Financial assets at fair value through profit and loss	53	53
Derivatives - hedge accounting	37	37		37
Derivatives - held for trading	209	209		209
Financial liabilities
Financial liabilities at amortized cost	35,062	34,768
Financial liabilities at fair value through profit and loss	347	347		347
Lease liabilities	3,534	3,534
Derivatives - hedge accounting	74	74		74
Derivatives - held for trading	455	455		455
31 December 2020			Financial instruments at fair value
	Carrying	Fair
SEK M	amount	value	Level 1	Level 2 Level 3
Financial assets
Loans and other receivables	20,393	20,393
Financial assets at fair value through profit and loss	52	52
Available-for-sale financial assets	85	85		85
Derivative instruments - hedge accounting	177	177		177
Financial liabilities
Financial liabilities at amortized cost	34,763	34,960
Financial liabilities at fair value through profit and loss	403	403		403
Lease liabilities	3,515	3,515
Derivatives - hedge accounting	3	3		3
Derivatives - held for trading	344	344		344

Financial liabilities at fair value through profit and loss pertains to deferred considerations, Deferred considerations are initially measured on the day of acquisition based i.e. additional payments for acquired companies. The size of a deferred consideration is on management's best estimate regarding future outcomes and belong to usually linked to the earnings and sales performance in an acquired company during a level 3 in the hierarchy. specific period of time.

Financial information - Parent company

CONDENSED INCOME STATEMENT		Q1
SEK M	2021	2021	2022
Operating income	1,053	-366	-651
Income before appropriations and tax	6,721	-291	-394
Net income for the period	6,631	-220	-248

CONDENSED BALANCE SHEET	31 Dec	31 Mar
SEK M	2021	2021	2022
Non-current assets	46,435	38,774	46,020
Current assets	18,231	21,560	18,232
Total assets	64,666	60,334	64,253
Equity	28,481	25,925	28,184
Untaxed reserves	1,606	1,125	1,606
Non-current liabilities	14,577	15,516	14,145
Current liabilities	20,002	17,768	20,318
Total equity and liabilities	64,666	60,334	64,253

Definitions of financial performance measures

Change in sales for comparable units after adjustments for Average capital employed excluding restructuring reserves acquisitions, divestments and exchange rate effects. for the last twelve months.

Operating margin (EBITDA) Net debt

Operating income before depreciation and amortization as a Interest-bearing liabilities less interest-bearing assets. percentage of sales. See the table on net debt for detailed information.

Operating margin (EBITA) Net debt/EBITDA

Operating income before amortization of intangible assets Net debt at the end of the period in relation to EBITDA for recognized in business combinations, as a percentage of sales. the last twelve months.

Operating margin (EBIT) Net debt/Equity ratio Operating income as a percentage of sales. Net debt in relation to equity.

Profit margin (EBT) Equity ratio

Restructuring costs and significant non-recurring operating expenses Equity excluding non-controlling interests in relation to such as revaluation of previously owned shares in associates and number of outstanding shares after any potential dilution. goodwill impairment.

Cash Flow from operating activities excluding restructuring Comparability, for the last twelwe months as a percentage of payments and tax paid on income minus net capital expenditure average adjusted capital employed. and repayment of lease liabilities.

items affecting comparability. attributable to parent company's shareholders for the

Net capital expenditure

Investments in, less disposals of, intangible assets and Earnings per share before and after dilution

Depreciation, amortization and impairment of intangible assets, are expected to result in significant dilution in the future. property, plant and equipment and right-of-use assets.

Total assets less interest-bearing assets and non-interest- Net income attributable to parent company's shareholders

Organic growth Average adjusted capital employed

Income before tax as a percentage of sales. Shareholders' equity as a percentage of total assets.

Items affecting comparability Shareholders' equity per share

Return on capital employed

Operating cash flow Operating Income (EBIT), excluding Items Affecting

Return on equity

Cash conversion Net income attributable to parent company's shareholders Operating cash flow in relation to income before tax excluding for the last twelve months as a percentage of average equity same period.

property, plant and equipment. Net income attributable to parent company's shareholders divided by weighted average number of outstanding shares. Depreciation and amortization None of the Group's outstanding long-term incentive programs

Earnings per share before and after dilution and excluding Capital employed items affecting comparability

bearing liabilities including deferred tax liability. excluding items affecting comparability, net of tax, divided by weighted average number of outstanding shares. None of the Group's outstanding long-term incentive programs are expected to result in significant dilution in the future.