ASSA ABLOY

Quarterly Report • Apr 29, 2020

• Net sales increased by 3% to SEK 22,173 M (21,505), with organic growth of –3% (5) and acquired net growth of 3% (3)
• Growth in Americas, stable sales levels in Global Technologies and Entrance Systems, but lower sales in Asia Pacific and EMEA
• Two acquisitions signed with expected combined annual sales of SEK 200 M
• Conditional clearance has been received from the EU Commission to acquire the 54% shareholding in agta record. Closing of the Acquisition is expected in the second half of 2020
• Operating income (EBIT) decreased by 15% and amounted to SEK 2,751 M (3,246), corresponding to an operating margin of 12.4% (15.1)
• Net income amounted to SEK 1,864 M (2,218)
• Earnings per share amounted to SEK 1.68 (2.00)
• Operating cash flow increased by 3% to SEK 1,206 M (1,171)
• The Board of Directors proposes a revised first dividend for 2019 of SEK 2.00 (3.50) per share.

	Full year		First quarter
	2018	2019	Δ	2019	2020	Δ
Sales, SEK M	84,048	94,029	12%	21,505	22,173	3%
Of which:
Organic growth	3,901	2,652	3%	1,006	–759	–3%
Acquisitions and divestments	1,793	3,063	3%	689	648	3%
Exchange-rate effects	2,217	4,265	6%	1,260	780	3%
Operating income (EBIT)1 2 , SEK M	12,909	14,920	16%	3,246	2,751	–15%
Operating margin (EBITA)1 2 , %	15.8%	16.4%		15.6%	13.0%
Operating margin (EBIT)1 2 , %	15.4%	15.9%		15.1%	12.4%
Income before tax1 2 , SEK M	12,110	13,883	15%	2,997	2,519	–16%
Net income1 2 , SEK M	8,984	10,243	14%	2,218	1,864	–16%
Operating cash flow, SEK M	11,357	14,442	27%	1,171	1,206	3%
Earnings per share1 2 , SEK	8.09	9.22	14%	2.00	1.68	–16%

¹ Excluding costs for a new manufacturing footprint program launched in 2018, totaling SEK –1,530 M before tax, corresponding to SEK –1,208 M after tax.

² Excluding impairment of goodwill and other intangible assets in Q2 2018, totaling SEK –5,595 M before tax, corresponding to SEK –5,268 M after tax.

Results impacted by Covid-19

The outbreak of Covid-19 led to a challenging beginning of 2020, which impacted most industries globally, including us. In the first quarter our organic sales growth was negative (–3%), but due to positive currency effects (3%) and net acquired growth (3%), total sales increased by 3%. Organic growth was positive in Americas (1%), stable in Global Technologies (0%) and Entrance Systems (0%), but decreased in EMEA (–4%) and in Asia Pacific (–34%) due to effects from Covid-19.

Operating income decreased by 15% to SEK 2,751 M and the operating margin was 12.4%. The operating leverage was significantly impacted by lower volumes, particularly in China and Europe, and by higher logistical and other operating costs. The result was further affected by earlier investments made to accelerate growth. Without Covid-19, operating income would have been in line with last year.

Operating cash flow was solid at SEK 1,206 M and cash conversion in the quarter was 48% (39). Our financial position is robust with an EBITDA/net debt of 2.0, down from 2.2 last year. We have access to multiple sources of financing, but as a precautionary measure, we more than tripled our liquidity level during March.

This is a different crisis

The Covid-19 crisis started in February with a significant effect on our operations and demand in China, which then spread to the rest of Asia and in March rapidly affected demand in the rest of the world. Compared to previous downturns, this crisis is different because of the strict regulations and lockdowns imposed by governments in many markets, which caused the business activity to drop to close to zero almost overnight. This affected both new construction and the aftermarket, where social distancing made it harder for locksmiths and service technicians to visit customers.

We are addressing the extraordinary situation

Our first priority has been the wellbeing of our employees and we have therefore introduced stringent health and safety measures in our operations.

We have also initiated a number of cost-saving measures such as reduced working hours, temporary and permanent layoffs, travel bans, reducing external services and delaying projects. These measures will not impact our excellent customer support and our ability to ramp our operations up or down, but they will lower our running costs in an important way. To ensure that we are positioned to accelerate growth after this crisis, we have decided to continue investments in product innovation and specialized sales.

Outlook

Assuming that the demand in our core markets will continue to be significantly affected by Covid-19, as experienced in many markets since February, we expect our sales and our operating margin in the coming months to be significantly lower than in the first quarter. However, when demand recovers and with our strong newproduct pipeline, we are confident that we will have the ability to further strengthen our position as the global leader in access solutions.

In conclusion, I would like to thank you for your trust in ASSA ABLOY in these difficult and challenging times.

Stockholm, 29 April 2020

Nico Delvaux President and CEO

Sales by quarter and last 12 months

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 1,000 2,000 3,000 4,000 5,000 6,000 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 SEK M Operating cash flow by quarter and last 12 months Operating cash flow, quarter Operating cash flow, 12 months

The Group's sales increased by 3% to SEK 22,173 M (21,505). Organic growth amounted to –3% (5). Growth from acquisitions and divestments was 3% (3), of which 3% (4) were acquisitions and 0% (–1) were divestments. Exchange-rates affected sales by 3% (8).

The Group's operating income (EBIT) amounted to SEK 2,751 M (3,246), a decrease of 15%. The corresponding operating margin was 12.4% (15.1). Exchange-rates had an impact of SEK 76 M (183) on EBIT. Operating income before amortizations from acquisitions (EBITA) amounted to SEK 2,884 M (3,352). The corresponding EBITA margin was 13.0% (15.6).

Net financial items amounted to SEK –232 M (–248). The Group's income before tax was SEK 2,519 M (2,997), a decrease of 16% compared with last year. Exchange-rates had an impact of SEK 69 M (169) on income before tax. The profit margin was 11.4% (13.9).

The estimated effective tax rate on an annual basis was 26% (26). Earnings per share amounted to SEK 1.68 (2.00), a decrease of 16% compared with last year. Operating cash flow totaled SEK 1,206 M (1,171), an increase of 3% compared with last year.

Payments related to all restructuring programs amounted to SEK 83 M (161) in the quarter. The restructuring programs proceeded according to plan and led to a reduction in personnel of 350 people during the quarter and 17,079 people since the projects began in 2006. At the end of the quarter provisions of SEK 729 M remained in the balance sheet for carrying out the programs.

We are currently preparing for the next Manufacturing Footprint Program, (No.8) which is expected to be launched at year-end.

Sales for the quarter in EMEA totaled SEK 5,044 M (5,208), with organic growth of –4% (3). Growth was good in Scandinavia, and remained stable in Germany and Middle East/Africa. Sales declined in Finland, UK and Benelux and were down significantly in South Europe, France and East Europe. Acquired growth net was –1%. Operating income totaled SEK 607 M (841), which represents an operating margin (EBIT) of 12.0% (16.2). Return on capital employed amounted to 12.5% (17.9). Operating cash flow before interest paid totaled SEK 132 M (289).

Sales for the quarter in Americas totaled SEK 5,271 M (5,312), with organic growth of 1% (10). Sales growth was very strong for Architectural Hardware and strong for Electromechanical Solutions, the US Residential Group, Canada and Latin America. Sales growth was good for Security Doors but negative for Access & High Security and for US Smart Residential. Acquired growth net was –7%. Operating income totaled SEK 1,048 M (1,040), which represents an operating margin (EBIT) of 19.9% (19.6).

Return on capital employed amounted to 23.0% (21.5). Operating cash flow before interest paid totaled SEK 580 M (260).

Sales for the quarter in Asia Pacific totaled SEK 1,588 M (2,221), with organic growth of –34% (6). Sales development was negative in Pacific and significantly down in South Asia, China, India and South Korea. Acquired growth net was 4%. Operating income totaled SEK –152 M (115), which represents an operating margin (EBIT) of –9.6% (5.2). Return on capital employed amounted to –6.5% (5.5). Operating cash flow before interest paid totaled SEK –293 M (–122).

Sales for the quarter in Global Technologies totaled SEK 3,933 M (3,348), with organic growth of 0% (9). Sales growth was strong for Physical Access Control and good for Secure Issuance. Growth was stable for Global Solutions, negative for Extended Access, Identity & Access Solutions and Identification Technology and significantly down for Citizen ID. Acquired growth net was 13%. Operating income totaled SEK 563 M (598), which represents an operating margin (EBIT) of 14.3% (17.9). Return on capital employed amounted to 9.6% (12.2). Operating cash flow before interest paid totaled SEK 362 M (345).

Sales for the quarter in Entrance Systems totaled SEK 6,727 M (5,922), with organic growth of 0% (3). Sales growth was very strong for Perimeter Security and stable for Pedestrian and Residential. Sales development was negative for Industrial. Acquired growth net was 9%. Operating income totaled SEK 821 M (779), which represents an operating margin (EBIT) of 12.2% (13.2). Return on capital employed amounted to 12.6% (14.1). Operating cash flow before interest paid totaled SEK 855 M (895).

A total of three acquisitions were consolidated during the quarter. The combined acquisition price for the businesses acquired during the year, including adjustments from prior year acquisitions, amounted to SEK 1,550 M. The acquisition price on a cash and debt free basis totaled SEK 1,632 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amounted to SEK 1,439 M. Estimated deferred considerations amounted to SEK 280 M.

As stated in an earlier press release, on February 28 ASSA ABLOY received phase 1 conditional clearance by the EU Commission to acquire the 54% shareholding in agta record from the shareholders of agta finance. Closing of the Acquisition is expected in the second half of 2020 after all remaining closing conditions and the EU Commission requirements have been fulfilled.

After the acquisition, ASSA ABLOY will own approximately 93% of the share capital and voting rights of agta record and will shortly thereafter launch a public tender offer for the remaining outstanding shares of agta record, listed on Euronext Paris, at a price of EUR 70 per agta record share, subject to the fairness opinion of the independent appraiser to be appointed by agta record and to the AMF´s clearance decision.

On February 28, the acquisition of AM Group was completed.

On February 10 it was announced that ASSA ABLOY has acquired Biosite, a leading provider of biometric access-control solutions to the UK construction industry. The business has about 140 employees with its head office located in Solihull, UK. Sales for 2019 amounted to around SEK 175 M.

ASSA ABLOY's Sustainability Report for 2019 was published on 16 March 2020 and the report shows continued improvement across the majority of key indicators. The focus on Health & Safety has led to a 16% reduction in the injury rate during the year. The Group's energy intensity fell by 10% due to energy efficiency initiatives, while the water intensity fell by 8%. The Group's greenhouse gas emissions related to industrial processes fell by 55%, as a result of production technology improvements. The consumption of organic solvents fell by 6%.

The Group carried out 1,175 sustainability audits of direct material suppliers in low-cost countries during 2019. ASSA ABLOY had 325 Environmental Product Declarations verified and published by the end of 2019.

Other operating income for the Parent company ASSA ABLOY AB totaled SEK 790 M (373) for the first quarter of 2020. Operating income for the same period amounted to SEK –181 M (–467). Investments in tangible and intangible assets totaled SEK 6 M (6). Liquidity is good and the equity ratio is 41.2% (40.6).

The Board of Directors had earlier communicated its proposal of a dividend of SEK 3.85 per share for the financial year 2019. In light of the uncertainty in the market caused by the Covid-19 pandemic the Board has, as a precautionary measure, decided to revise its dividend proposal.

The Board proposes that a first dividend of SEK 2.00 per share should be voted on at the Annual General Meeting on April 29, 2020. It is the clear ambition of the Board to propose a second dividend of SEK 1.85 per share later in 2020 when the consequences of the Covid-19 pandemic can be better assessed and assuming that the financial position of the Group allows this. In this event the Board of Directors will convene an Extraordinary General Meeting.

ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the latest Annual Report have been applied. 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 and to the company's latest Annual Report. 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 2019 appear on the company's website www.assaabloy.com.

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.

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

As an international Group with a wide geographic spread, ASSA ABLOY is exposed to a number of business, financial and tax-related risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity, the giving of credit, raw materials and financial instruments. Risk management in ASSA ABLOY aims to identify, control and reduce risks. This work begins with an assessment of the probability of risks occurring and their potential effect on the Group. For a more detailed description of particular risks and risk management, see the 2019 Annual Report.

The Company's Auditors have not carried out any review of this Report for the first quarter of 2020.

The below guidance relating to two key figures is provided to facilitate financial modelling but shall not be viewed as market outlooks or business performance forecasts

Acquisitions and divestments

It is estimated that completed acquisitions and divestments, on a rolling 12 month basis as per 31 March 2020, will have an effect of 2% on sales in the second quarter of 2020 versus the same period last year, while the effect on the operating margin is estimated to be dilutive in the second quarter of 2020.

Exchange-rate effects

On the basis of the currency rates on 31 March 2020, it is estimated that the weighted currency effects on sales in the second quarter of 2020 versus the same period last year will be 3%, while the effect on the operating margin is estimated to be slightly negative in the second quarter of 2020.

Stockholm, 29 April 2020

Nico Delvaux President and CEO

The Quarterly Report for the second quarter of 2020 will be published on 17 July 2020.

The Quarterly Report for the third quarter of 2020 will be published on 21 October 2020.

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 29 April 2020

which can be followed on the Internet at www.assaabloy.com.

It is possible to submit questions by telephone on: +46 8–566 427 06, +44 333 300 9269 or +1 646 722 4957

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 CET on 29 April 2020.

CONDENSED INCOME STATEMENT	Year	Q1
SEK M	2019	2019	2020
Sales	94,029	21,505	22,173
Cost of goods sold	-56,499	-12,909	-13,200
Gross income	37,530	8,596	8,973
Selling, administrative and R&D costs	-23,069	-5,388	-6,266
Share of earnings in associates	147	38	44
Operating income	14,608	3,246	2,751
Finance net	-1,037	-248	-232
Income before tax	13,571	2,997	2,519
Tax on income	-3,574	-779	-655
Net income for the period	9,997	2,218	1,864
Net income for the period attributable to:
Parent company's shareholders	9,993	2,219	1,864
Non-controlling interests	4	-1	1
Earnings per share
Before and after dilution, SEK	9.00	2.00	1.68
Before and after dilution and excluding items affecting comparability, SEK	9.22	2.00	1.68
CONDENSED STATEMENT OF COMPREHENSIVE INCOME	Year	Q1
SEK M	2019	2019	2020
Net income for the period	9,997	2,218	1,864
Other comprehensive income: Items that will not be reclassified to profit or loss
Actuarial gain/loss on post-employment benefit obligations, net after tax	-281	-121	-102
Total	-281	-121	-102
Items that may be reclassified subsequently to profit or loss
Share of other comprehensive income of associates	86	32	119
Cashflow hedges and net investment hedges, net after tax	-10 1,556	-20 1,361	-25 2,056
Exchange rate differences Total	1,632	1,373	2,150
Total comprehensive income for the period	11,348	3,471	3,912
Total comprehensive income for the period attributable to:
Parent company's shareholders	11,343	3,470	3,910
Non-controlling interests	5	0	2

CONDENSED BALANCE SHEET	31 Dec	31 Mar
SEK M	2019	2019	2020
ASSETS
Non-current assets
Intangible assets	70,355	67,312	74,791
Property, plant and equipment	8,498	8,330	8,972
Right-of-use assets	3,731	3,805	3,909
Investments in associates	2,595	2,510	2,772
Other financial assets	104	91	112
Deferred tax assets	1,205	1,402	1,277
Total non-current assets	86,487	83,450	91,832
Current assets
Inventories	11,276	12,304	12,170
Trade receivables	15,701	15,103	16,055
Other current receivables and investments	4,144	3,930	5,554
Cash and cash equivalents	442	414	1,676
Total current assets	31,563	31,751	35,455
TOTAL ASSETS	118,050		115,201 127,287
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent company's shareholders	59,143	55,117	63,044
Non-controlling interests	11	10	13
Total equity	59,154	55,127	63,057
Non-current liabilities
Long-term loans	21,100	20,349	24,813
Non-current lease liabilities	2,588	2,831	2,749
Deferred tax liabilities	2,368	1,861	2,557
Other non-current liabilities and provisions	5,071	5,041	5,182
Total non-current liabilities	31,127	30,081	35,301
Current liabilities
Short-term loans	5,460	8,409	6,245
Current lease liabilities	1,151	945	1,176
Trade payables	7,908	7,375	7,451
Other current liabilities and provisions	13,250	13,264	14,056
Total current liabilities	27,769	29,993	28,929
TOTAL EQUITY AND LIABILITIES	118,050		115,201 127,287

CHANGES IN EQUITY	Equity attributable to:
	Parent	Non
	company's	controlling	Total
SEK M	shareholders	interests	equity
Opening balance 1 January 2019 according to adopted Annual Report	51,890	10	51,900
Change in accounting policies	-234	-	-234
New opening balance 1 January 2019	51,656	10	51,666
Net income for the period	2,219	-1	2,218
Other comprehensive income	1,251	1	1,252
Total comprehensive income	3,470	0	3,471
Stock purchase plans	-9	-	-9
Total transactions with shareholders	-9	-	-9
Closing balance 31 March 2019	55,117	10	55,127

Opening balance 1 January 2020	59,143	11	59,154
Net income for the period	1,864	1	1,864
Other comprehensive income	2,047	1	2,048
Total comprehensive income	3,910	2	3,912
Stock purchase plans	-10	-	-10
Total transactions with shareholders	-10	-	-10
Closing balance 31 March 2020	63,044	13	63,057

CONDENSED STATEMENT OF CASH FLOWS	Year	Q1
SEK M	2019	2019	2020
OPERATING ACTIVITIES
Operating income	14,608	3,246	2,751
Depreciation and amortization	3,387	788	925
Reversal of restructuring costs	312	-	-
Restructuring payments	-726	-161	-83
Other non-cash items	-324	-53	4
Cash flow before interest and tax	17,257	3,819	3,598
Interest paid and received	-869	-179	-172
Tax paid on income	-3,872	-703	-878
Cash flow before changes in working capital	12,516	2,937	2,547
Changes in working capital	148	-2,048	-1,485
Cash flow from operating activities	12,665	889	1,062
INVESTING ACTIVITIES
Net investments in intangible assets and property, plant and equipment	-1,662	-321	-491
Investments in subsidiaries	-3,903	-1,227	-1,471
Divestments of subsidiaries	84	14	-
Investments in and disposals of associates	16	0	-
Other investments and disposals	0	0	0
Cash flow from investing activities	-5,464	-1,533	-1,961
FINANCING ACTIVITIES
Dividends	-3,888	-	-
Acquisition of non-controlling interests	-19	-	-
Amortization of lease liabilities	-1,159	-262	-326
Net cash effect of changes in borrowings	-2,235	777	2,455
Cash flow from financing activities	-7,301	516	2,129
CASH FLOW FOR THE PERIOD	-100	-129	1,230
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of period	538	538	442
Cash flow for the period	-100	-129	1,230
Effect of exchange rate differences	4	5	5
Cash and cash equivalents at end of period	442	414	1,676
KEY RATIOS	Year	Q1

	2019	2019	2020
Return on capital employed, %	16.6	14.9	11.4
Return on capital employed excluding items affecting comparability, %	17.0	14.9	11.4
Return on shareholders' equity, %	18.0	16.6	12.2
Equity ratio, %	50.1	47.9	49.5
Interest coverage ratio, times	14.9	13.9	12.4
Total number of shares, thousands		1,112,576 1,112,576 1,112,576
Number of shares outstanding, thousands		1,110,776 1,110,776 1,110,776
Weighted average number of outstanding shares before and after dilution, thousands		1,110,776 1,110,776 1,110,776
Average number of employees	48,992	48,941	48,801

CONDENSED INCOME STATEMENT		Q1
SEK M	2019	2019	2020
Operating income	1,523	-467	-181
Income before appropriations and tax	4,962	137	83
Net income for the period	5,134	272	198

CONDENSED BALANCE SHEET		31 Mar
SEK M	2019	2019	2020
Non-current assets	39,443	40,099	39,912
Current assets	19,722	18,731	20,980
Total assets	59,165	58,830	60,892
Equity	24,883	23,873	25,071
Untaxed reserves	911	678	911
Non-current liabilities	16,877	14,531	17,460
Current liabilities	16,494	19,748	17,449
Total equity and liabilities	59,165	58,830	60,892

THE GROUP IN SUMMARY	Q1	Q2	Q3	Q4	Year		Q1 Last 12
SEK M	2019	2019	2019	2019	2019		2020 months
Sales Organic growth	21,505 5%	23,544 3%	24,034 4%	24,946 1%	94,029 3%	22,173 -3%	94,697
Gross income excluding items
affecting comparability	8,596	9,500	9,625		9,979 37,700		8,973 38,078
Gross margin excluding items affecting comparability Operating income before depr. & amort. (EBITDA)	40.0%	40.4%	40.0%	40.0%	40.1%	40.5%	40.2%
excluding items affecting comparability	4,034	4,568	4,736		4,969 18,307		3,676 17,949
Operating margin (EBITDA)	18.8%	19.4%	19.7%	19.9%	19.5%	16.6%	19.0%
Depreciation and amortization excl. amortization
attributable to business combinations Operating income before amortization (EBITA)	-682	-716	-726	-781	-2,905	-792	-3,015
excluding items affecting comparability	3,352	3,852	4,010		4,188 15,402		2,884 14,934
Operating margin (EBITA)	15.6%	16.4%	16.7%	16.8%	16.4%	13.0%	15.8%
Amortization attributable to business combinations	-106	-120	-115	-141	-482	-133	-509
Operating income (EBIT) excluding items affecting comparability	3,246	3,733	3,894		4,047 14,920		2,751 14,426
Operating margin (EBIT)	15.1%	15.9%	16.2%	16.2%	15.9%	12.4%	15.2%
Items affecting comparability1)	-	-	-	-312	-312	-	-312
Operating income (EBIT)	3,246	3,733	3,894		3,735 14,608		2,751 14,114
Operating margin (EBIT) Net financial items	15.1% -248	15.9% -271	16.2% -250	15.0% -268	15.5% -1,037	12.4% -232	14.9% -1,021
Income before tax (EBT)	2,997	3,462	3,645		3,467 13,571		2,519 13,093
Profit margin (EBT)	13.9%	14.7%	15.2%	13.9%	14.4%	11.4%	13.8%
Tax on income	-779	-900	-948	-947	-3,574	-655	-3,449
Net income for the period	2,218	2,562	2,697	2,520	9,997	1,864	9,643
Net income attributable to:
Parent company's shareholders	2,219	2,561	2,696	2,517	9,993	1,864	9,638
Non-controlling interests	-1	0	1	3	4	1	6
OPERATING CASH FLOW	Q1	Q2	Q3	Q4	Year		Q1 Last 12
SEK M	2019	2019	2019	2019	2019		2020 months
Operating income (EBIT) Restructuring costs	3,246 -	3,733 -	3,894 -	3,735 312	14,608 312	2,751 -	14,114 312
Depreciation and amortization	788	835	842	922	3,387	925	3,523
Net capital expenditure	-321	-406	-410	-525	-1,662	-491	-1,832
Change in working capital	-2,048	242	591	1,364	148	-1,485	712
Interest paid and received Repayment of lease liabilities	-179 -262	-277 -281	-179 -300	-233 -316	-869 -1,159	-172 -326	-862 -1,223
Non-cash items	-53	-210	-37	-24	-324	4	-267
Operating cash flow	1,171	3,636	4,401		5,235 14,442		1,206 14,478
Operating Cash flow/Income before tax excluding		1.05	1.21	1.39	1.04		1.08
items affecting comparability	0.39					0.48
CHANGE IN NET DEBT	Q1	Q2	Q3	Q4	Year	Q1
SEK M	2019	2019	2019	2019	2019	2020
Net debt at beginning of period	29,246	35,100	37,620	36,843	29,246	33,050
Impact from transition to IFRS 16	3,711	-	-	-	3,711	-
Operating cash flow Restructuring payments	-1,171 161	-3,636 123	-4,401 181	261	-5,235 -14,442 726	-1,206 83
Tax paid on income	703	942	577	1,651	3,872	878
Acquisitions and divestments	1,357	964	1,425	1,018	4,764	1,584
Dividend	-	3,888	-	-	3,888	-
Actuarial gain/loss on post-employment benefit obligations Change to lease liabilities	179 -127	210 -111	289 -51	-316 47	362 -242	139 -1
Exchange rate differences, etc.	1,039	140	1,203	-1,218	1,165	1,845
Net debt at end of period		35,100 37,620 36,843 33,050 33,050				36,371
Net debt/Equity	0.64	0.70	0.64	0.56	0.56	0.58
NET DEBT	Q1	Q2	Q3	Q4		Q1
SEK M Interest-bearing assets	2019 -168	2019 -144	2019 -113	2019 -100		2020 -108
Cash and cash equivalents	-414	-355	-459	-442		-1,676
Derivative financial instruments, net	43	-127	8	-53		-469
Pension provisions	3,105	3,324	3,717	3,346		3,642
Lease liabilities Interest-bearing liabilities	3,776 28,758	3,694 31,228	3,746 29,944	3,739 26,560		3,924 31,059
Total		35,100 37,620 36,843 33,050				36,371
CAPITAL EMPLOYED AND FINANCING	Q1	Q2	Q3	Q4		Q1
SEK M	2019	2019	2019	2019		2020
Capital employed - of which goodwill	90,227 55,731	91,334 56,179	94,796 59,134	92,204 57,662		99,428 61,573
- of which other intangible assets and
property, plant and equipment	19,911	20,386	21,296	21,191		22,189
- of which right-of-use assets	3,805	3,705	3,746	3,731		3,909
- of which investments in associates Net debt	2,510 35,100	2,534 37,620	2,643 36,843	2,595 33,050		2,772 36,371
Non-controlling interests	10	6	8	11		13
Equity attributable to the Parent company´s shareholders	55,117	53,708	57,946	59,143		63,044
DATA PER SHARE	Q1	Q2	Q3	Q4	Year	Q1
SEK	2019	2019	2019	2019	2019	2020
Earnings per share before and after dilution Earnings per share before and after dilution and	2.00	2.31	2.43	2.27	9.00	1.68
excluding items affecting comparability Shareholders' equity per share after dilution	2.00 49.62	2.31 48.35	2.43 52.17	2.49 53.25	9.22 53.25	1.68 56.76

1) Items affecting comparability consist of restructuring costs.

Q1 and 31 Mar

								Global		Entrance
	EMEA		Americas			Asia Pacific		Technologies		Systems	Other		Total
SEK M	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020		2019 2020
Sales, external	5,123	4,928	5,294	5,249	1,873	1,394	3,324	3,903	5,891	6,699	-	-		21,505 22,173
Sales, internal	85	116	18	22	347	194	25	30	31	28	-507	-390	-	-
Sales		5,208 5,044		5,312 5,271		2,221 1,588		3,348 3,933		5,922 6,727	-507	-390		21,505 22,173
Organic growth	3%	-4%	10%	1%	6%	-34%	9%	0%	3%	0%	-	-	5%	-3%
Acquisitions and divestments	3%	-1%	1%	-7%	2%	4%	15%	13%	1%	9%	-	-	3%	3%
Exchange-rate effects	3%	2%	11%	5%	5%	2%	11%	4%	7%	5%	-	-	8%	3%
Share of earnings in associates	-	-		- -	5	5		- -	33	39		- -	38	44
Operating income (EBIT)	841	607		1,040 1,048	115	-152	598	563	779	821	-128	-136	3,246	2,751
Operating margin (EBIT)		16.2% 12.0%		19.6% 19.9%		5.2% -9.6%		17.9% 14.3%		13.2% 12.2%	-	-		15.1% 12.4%
Capital employed		19,009 19,696		19,971 16,455	8,789	9,510		20,396 24,185		22,376 29,325	-314	257		90,227 99,428
- of which goodwill		11,046 11,551		13,778 12,424	4,332	4,272		14,173 16,597		12,403 16,730	-	-		55,731 61,573
- of which other intangible assets and
property, plant and equipment	4,037	4,198	3,917	3,394	2,511	2,589	4,910	5,961	4,389	5,980	147	66		19,911 22,189
- of which right-of-use assets	1,103	999	486	451	310	248	371	537	1,505	1,658	28	16	3,805	3,909
- of which investments in associates	9	1	-	-	609	657	19	24	1,872	2,090	-	-	2,510	2,772
Return on capital employed
excluding items affecting comparability		17.9% 12.5%		21.5% 23.0%		5.5% -6.5%	12.2%	9.6%		14.1% 12.6%	-	-		14.9% 11.4%
Operating income (EBIT)	841	607	1,040	1,048	115	-152	598	563	779	821	-128	-136	3,246	2,751
Depreciation and amortization	192	229	133	125	92	92	176	225	186	248	9	7	788	925
Net capital expenditure	-119	-115	-73	-119	-43	-42	-67	-125	-16	-88	-2	-2	-321	-491
Amortization of lease liabilities	-70	-83	-32	-33	-24	-28	-30	-37	-108	-141	2	-3	-262	-326
Change in working capital	-556	-506	-808	-440	-263	-162	-332	-263	54	14	-145	-127	-2,048	-1,485
Operating cash flow by division	289	132	260	580	-122	-293	345	362	895	855	-263	-262	1,403	1,374
Non-cash items											-53	4	-53	4
Interest paid and received											-179	-172	-179	-172
Operating cash flow													1,171	1,206
Average number of employees		11,621 11,144	9,053	8,908		11,152 10,002	5,201	6,406		11,603 11,990	311	350		48,941 48,801

Q1-Q4 and 31 Dec

						Global		Entrance
	EMEA		Americas		Asia Pacific			Technologies	Systems		Other		Total
SEK M	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019
Sales, external		19,908 20,707		19,737 23,082	8,875	9,477		11,864 15,321		23,665 25,442	0	-	84,048	94,029
Sales, internal	293	438	79	90	1,074	1,213	87	102	97	110		-1,631 -1,953	-	-
Sales			20,201 21,144 19,817 23,172						9,949 10,689 11,951 15,423 23,762 25,553			-1,630 -1,953	84,048	94,029
Organic growth	2%	2%	9%	7%	4%	-1%	8%	5%	4%	2%	-	-	5%	3%
Acquisitions and disposals	5%	0%	1%	2%	1%	5%	4%	16%	1%	1%	-	-	2%	3%
Exchange-rate effects	5%	3%	0%	8%	3%	3%	3%	8%	4%	5%	-	-	3%	6%
Share of earnings in associates	-	-		- -	17	17		3 5	147	124		- -	167	147
Operating income (EBIT) excl.
items affecting comparability		3,256 3,396		3,941 4,673	492	879		2,387 2,890		3,358 3,652	-525	-570	12,909	14,920
Operating margin (EBIT) excl.
items affecting comparability1)		16.1% 16.1%		19.9% 20.2%	4.9%	8.2%		20.0% 18.7%		14.1% 14.3%		- -	15.4%	15.9%
Restructuring costs	-438	-185	-225	-	-130	-6	-218	-4	-108	-116	-100	-	-1,218	-312
Impairment of goodwill etc	-	-	-	-	-5,595	-	-	-	-	-	-	-	-5,595	-
Operating income (EBIT)		2,818 3,211		3,716 4,673	-5,233	873		2,170 2,885		3,250 3,535	-625	-570	6,096	14,608
Operating margin (EBIT)		13.9% 15.2%		18.8% 20.2%	-52.6%	8.2%		18.2% 18.7%		13.7% 13.8%	-	-	7.3%	15.5%
Capital employed		16,883 18,659		18,506 19,678	7,455	9,053		18,511 22,329		20,742 23,024	-951	-539	81,146	92,204
- of which goodwill		10,709 11,121		13,327 14,105	3,892	4,168		13,245 15,459		12,240 12,809	-	-	53,413	57,662
- of which other intangible assets and
property, plant and equipment	3,971	4,092	3,813	4,423	2,340	2,469	4,866	5,632	4,378	4,451	151	124	19,518	21,191
- of which right-of-use assets	70	990	-	499	5	260	-	463	44	1,499	-	19	119	3,731
- of which investments in associates	9	1	-	-	587	637	19	23	1,819	1,935	-	-	2,434	2,595
Return on capital employed
excluding items affecting comparability		20.1% 18.4%		22.5% 23.6%		4.8% 10.3%		14.0% 14.0%		16.9% 16.2%	-	-	16.2%	17.0%
Operating income (EBIT)	2,818	3,211	3,716	4,673	-5,233	873	2,170	2,885	3,250	3,535	-625	-570	6,096	14,608
Restructuring costs	438	185	225	-	130	6	218	4	108	116	100	-	1,218	312
Impairment of intangible assets	-	-	-	-	5,595	-	-	-	-	-	-	-	5,595	-
Depreciation and amortization	464	813	367	569	292	381	522	793	294	794	24	36	1,963	3,387
Net capital expenditure	-500	-454	-327	-348	-6	-220	-281	-366	-170	-276	-36	3	-1,319	-1,662
Amortization of lease liabilities	-	-295	-	-149	-	-100	-	-129	-	-477	-	-9	-	-1,159
Change in working capital	-401	53	-78	517	33	-319	-165	-5	-709	-38	244	-61	-1,076	148
Operating cash flow by division		2,819 3,515		3,903 5,263	811	622		2,463 3,183		2,772 3,655	-293	-602	12,477	15,635
Non-cash items											-458	-324	-458	-324
Interest paid and received											-662	-869	-662	-869
Operating cash flow													11,357	14,442
Average number of employees		11,717 11,373	8,768	9,360		11,492 11,016	4,624	5,594		11,463 11,313	288	336	48,353	48,992

1) Items affecting comparability consist of impairment of goodwill and other intangible assets in 2018.

NOTE 1 DISAGGREGATION OF REVENUE

Sales by continent Q1			Opening Solutions				Global		Entrance
		EMEA	Americas		Asia Pacific		Technologies		Systems		Other		Total
SEK M	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020
Europe	4,571	4,478	10	11	150	102	908	1,055	2,893	2,851	-196	-161	8,337	8,336
North America	141	119	4,883	4,860	294	183	1,685	1,944	2,605	3,463	-240	-140	9,369	10,430
Central- and South America	19	18	377	373	10	14	87	118	17	15	-7	-13	503	525
Africa	192	168	6	3	1	4	94	112	12	15	-2	-6	304	297
Asia	249	231	35	22	1,290	732	497	528	289	224	-34	-40	2,326	1,697
Oceania	35	30	1	2	476	553	77	176	105	158	-28	-31	666	888
Total		5,208 5,044		5,312 5,271		2,221 1,588		3,348 3,933	5,922	6,727	-507	-390		21,505 22,173

Sales by product group Q1			Opening Solutions				Global		Entrance
	EMEA		Americas		Asia Pacific		Technologies		Systems		Other		Total
SEK M	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020
Mechanical locks, lock systems and fittings	2,585	2,437	2,020	2,208	1,121	893	2	85	2	2	-177	-164	5,553	5,461
Electromechanical and electronic locks	1,678	1,661	1,280	1,302	573	262	3,330	3,782	209	205	-275	-174	6,796	7,038
Security doors and hardware	861	821	1,997	1,753	522	421	16	67	-	576	-21	-21	3,375	3,617
Entrance automation	84	126	15	8	4	12	-	-	5,711	5,944	-33	-32	5,781	6,058
Total		5,208 5,044		5,312 5,271		2,221 1,588		3,348 3,933	5,922	6,727	-507	-390		21,505 22,173

NOTE 2 BUSINESS COMBINATIONS

	Year	Q1
SEK M	2020	2019	2020
Purchase prices
Cash paid for acquisitions during the year	3,564	908	1,280
Holdbacks and deferred considerations for acquisitions during the year	255	9	274
Adjustment of purchase prices for acquisitions in prior years	-7	-	-4
Total	3,813	917	1,550
Acquired assets and liabilities at fair value
Intangible assets	1,296	0	87
Property, plant and equipment and right-of-use assets	417	105	125
Other non-current assets	95	1	1
Inventories	208	76	78
Current receivables and investments	681	141	103
Cash and cash equivalents	120	-14	32
Non-current liabilities	-503	-149	-112
Current liabilities	-1,186	-116	-201
Total	1,128	46	112
Goodwill	2,685	872	1,439
Change in cash and cash equivalents due to acquisitions
Cash paid for acquisitions during the year	3,564	908	1,280
Cash and cash equivalents in acquired subsidiaries	-120	14	-32
Paid considerations for acquisitions in prior years	459	304	223
Total	3,903	1,227	1,471

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

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

31 March 2020		Financial instruments at fair value
	Carrying	Fair
SEK M	amount	value	Level 1	Level 2 Level 3
Financial assets
Financial assets at amortized cost	17,895	17,895
Financial assets at fair value through profit and loss	6	6
Derivatives - hedge accounting	250	250	250
Derivatives - held for trading	566	566	566
Financial liabilities
Financial liabilities at amortized cost	38,510	39,105
Financial liabilities at fair value through profit and loss	1,464	1,464		1,464
Lease liabilities	3,924	3,924
Derivatives - hedge accounting	0	0		0
Derivatives - held for trading	347	347	347
			Financial instruments
31 December 2019			at fair value
	Carrying	Fair
SEK M	amount	value	Level 1	Level 2 Level 3
Financial assets
Loans and other receivables	16,296	16,296
Financial assets at fair value through profit and loss	6	6
Available-for-sale financial assets	94	94		94
Derivative instruments - hedge accounting	108	108	108
Financial liabilities
Financial liabilities at amortized cost	34,468	34,722
Financial liabilities at fair value through profit and loss	1,366	1,366		1,366
Lease liabilities	3,739	3,739
Derivatives - hedge accounting	6	6		6
Derivatives - held for trading	143	143	143

Organic growth Net debt

Change in sales for comparable units after adjustments for Interest-bearing liabilities less interest-bearing assets. acquisitions and exchange rate effects. See the table on net debt for detailed information.

Operating margin (EBITDA) Capital employed

Operating income before depreciation and amortization as a Total assets less interest-bearing assets and non-interestpercentage of sales. bearing liabilities including deferred tax liability.

Operating margin (EBITA) Equity ratio

Operating income before amortization of intangible assets Shareholders' equity as a percentage of total assets. recognized in business combinations, as a percentage of sales.

Operating income as a percentage of sales.

Operating cash flow

Cash Flow from operating activities excluding restructuring Return on capital employed payments and tax paid on income minus net capital expenditure Income before tax plus net interest as a percentage of and repayment of lease liabilities. average capital employed excluding restructuring reserves.

Depreciation and amortization

Depreciation and amortization of intangible assets, property, plant and equipment and right-of-use assets.

Interest coverage ratio

Operating margin (EBIT) Income before tax plus net interest divided by net interest.

Return on shareholders' equity

Profit margin (EBT) Net income attributable to parent company's shareholders Income before tax as a percentage of sales. as a percentage of average parent company's shareholders equity.

Net capital expenditure Earnings per share after tax and dilution

Investments in, less disposals of, intangible assets and Net income excluding non-controlling interests divided by property, plant and equipment. weighted average number of outstanding shares after any potential dilution.