ASSA ABLOY

Quarterly Report • Apr 28, 2011

28 April 2011 No. 17/11

A good start to the year

• Sales totaled SEK 8,699 M (8,345), representing an increase of 4%, made up of 6% organic growth, 7% acquired growth and exchange-rate effects of –9%.
• Strong growth in Asia and in North and South America.
• Subdued but stable development in Europe, with good growth in Germany, Sweden, Finland and Eastern Europe. Other markets in Europe were weaker.
• Operating income (EBIT) amounted to SEK 1,377 M (1,295), representing an increase of 6%. The operating margin increased to 15.8% (15.5).
• Operating cash flow was normal for the season and amounted to SEK 448 M (870).
• Acquisitions of Cardo, Swesafe and FlexiForce. Agreement signed for the divestment of Cardo Flow Solutions.
• Reduced tax charge to 22% (24).
• Net income amounted to SEK 943 M (880).
• Earnings per share rose by 7% to SEK 2.53 (2.36).

		Full year	First quarter
	2009	2010	Change 2010			2011 Change
Sales, SEK M	34,963	36,823	+5%	8,345	8,699	+4%
of which,
Organic growth			+3%			+6%
Acquisitions			+8%			+7%
Exchange-rate effects		-1,626	-6%		-666	-9%
Operating income (EBIT),
SEK M	5,413*	6,046	+12%	1,295	1,377	+6%
Operating margin (EBIT), %	15.5*	16.4		15.5	15.8
Income before tax, SEK M	4,779*	5,366	+12%	1,158	1,215	+5%
Net income, SEK M	2,659**	4,080	-	880	943	+7%
Operating cash flow, SEK M	6,843	6,285	-8%	870	448	-49%
Earnings per share (EPS),
SEK	9.22*	10.89	+18%	2.36	2.53	+7%

SALES AND INCOME

* Excluding restructuring costs in 2009 amounting to SEK 1,039 M.

** In 2009, net income excluding restructuring costs was SEK 3,474 M.

COMMENTS BY THE PRESIDENT AND CEO

"The year started promising for ASSA ABLOY, with 13% growth in local currencies made up of 6% organic growth, 7% acquired growth" says Johan Molin, President and CEO. Asia, North America and South America showed strong growth, while the trend in Europe was more restrained but nonetheless stable. I am pleased to see that the R&D invest ments in electromechanical lock solutions and access control are developing well and where HID in particular showed more than 20% organic growth in the quarter.

"Earnings rose by 6% despite the negative exchange-rate effect and the relatively low contribution to the earnings from newly acquired companies. The profit margin rose supported by volume growth and that the successful efficiency and restructuring measures continued to give good contribution.

"The integration of Cardo Entrance Solutions proceeded at a fast rate and I look forward to the realization of good marketing and cost synergies between them and ASSA ABLOY.

"It is also very pleasing that an agreement has been signed with Sulzer Ltd concerning the sale of Cardo Flow Solutions. Through this, Cardo Flow Solutions gets a long-term owner that will give them an industrial home and thus create conditions for a continued good development.

"In the areas of logical access and secure identities, we have acquired both ActivIdentity and most recently LaserCard, which together with our existing businesses in HID and Fargo has greatly strengthened the Group's market position. I would like to take the opportunity once again to wish these companies and their highly skilled employees a warm welcome to the Group.

"Looking forward to the remainder of the year, we see that the underlying economic trend is positive in the majority of our ma rkets, but that budget restraints are continuing to affect those market segments that are dependent on public financing."

FIRST QUARTER

The Group's sales totaled SEK 8,699 M (8,345), an increase of 4% compared with 2010. Organic growth for comparable units was 6% (–3). Acquired units contributed 7% (5). Exchange-rate effects had a negative impact of SEK 666 M on sales, that is –9% (–8).

Operating income before depreciation, EBITDA, excluding restructuring costs, amounted to SEK 1,630 M (1,536). The corresponding EBITDA margin was 18.7% (18.4). The Group's operating income, EBIT, amounted to SEK 1,377 M (1,295), an increase of 6%. The operating margin was 15.8% (15.5).

Net financial items amounted to SEK -162 M (-137). The Group's income before tax,

amounted to SEK 1,215 M (1,158), an improvement of 5% compared with the previous year. Exchange-rate effects had a negative impact of SEK 104 M on the Group's income before tax. The profit margin was 14.0% (13.9). The Group's tax rate declined to 22% (24) and the tax charge totaled SEK 268 M (278). Earnings per share amounted to SEK 2.53 (2.36), an increase of 7%.

RESTRUCTURING MEASURES

Payments related to all restructuring programs amounted to SEK 48 M in the quarter.

The restructuring programs continued according to plan and have led to a reduction in personnel of 96 people during the quarter and 5,483 people since the projects began. A further 933 people will leave in the next two years.

At the end of the quarter, provisions of SEK 872 M were set aside in the balance sheet for carrying out the remaining parts of the programs.

COMMENTS BY DIVISION

EMEA

Sales for the quarter in EMEA division totaled SEK 3,099 M (3,296), with organic growth of 0% (2). Germany, Sweden, Finland and Eastern Europe showed continued good growth. The division was however affected negatively by cuts in public budgets in a number of countries. The turmoil in North Africa also affected exports from the business units in Spain and Italy. Acquired growth amounted to 3%. Operating income amounted to SEK 518 M (525), which represents an operating margin (EBIT) of 16.7% (15.9). Return on capital employed amounted to 21.0% (19.6). Operating cash flow before interest paid totaled SEK 276 M (429).

AMERICAS

Sales for the quarter in Americas division totaled SEK 2,189 M (2,205), with organic growth of 7% (–11). The sales trend during the quarter was good and all business units showed growth, with especially good performance from Canada, South America and Electromechanics. The Door Group, High Security and Residential business units recorded a stable positive trend. Acquired growth amounted to 2%. Operating income totaled SEK 440 M (418) and the operating margin was 20.1% (19.0). Return on capital employed amounted to 22.1% (19.0). Operating cash flow before interest paid totaled SEK 231 M (320).

ASIA PACIFIC

Sales for the quarter in Asia Pacific division totaled SEK 1,192 M (1,014), with organic growth of 10% (11). Growth was strong throughout Asia, and especially in China and for digital door locks. Australia and New Zealand recorded a negative sales trend affected by the natural disasters in the region. Acquired growth amounted to 10%. Operating income totaled SEK 146 M (104), representing an operating margin (EBIT) of 12.3% (10.2). The quarter's return on capital employed amounted to 14.5% (12.3). Operating cash flow before interest paid totaled SEK -138 M (-1).

GLOBAL TECHNOLOGIES

Sales for the quarter in Global Technologies division totaled SEK 1,306 M (1,085), with organic growth amounting to 19% (–6). HID showed good growth in both access control and identification technology. Hospitality recorded very strong growth driven by the recovery on the renovation market and rising sales of RFID locks and energy-efficiency products. Acquired growth amounted to 14%. The division's operating income amounted to SEK 187 M (184), giving an operating margin (EBIT) of 14.3% (16.9). Acquired units had a negative effect on operating income because of normal seasonal variation, and together with exchange-rate effects this brought down the operating margin by 3.2 percentage points. Return on capital employed amounted to 12.6% (13.1). Operating cash flow before interest paid totaled SEK -51 M (119).

ENTRANCE SYSTEMS

Sales for the quarter in Entrance Systems division totaled SEK 1,097 M (954), with organic growth amounting to 4% (–3). There was a return to growth this quarter after two years of weak performance. The positive trend on the service side continued, and automatic doors also showed growth due to continuing strong demand in the retailing segment. Ditec showed a positive trend in income and the integration of Cardo Entrance Solutions proceeded successfully. Acquired growth amounted to 22%. Operating income totaled SEK 158 M (134), giving an operating margin of 14.4% (14.0). Return on capital employed amounted to 8.5% (12.7). Operating cash flow before interest paid totaled SEK 140 M (169).

ACQUISITIONS

During the quarter LaserCard in the USA and Cardo in Sweden, as well as two minor acquisitions, were consolidated. The parts of Cardo that are to be divested – that is, Cardo Flow Solutions and Lorentzen & Wettre – have been classified as 'disposal groups held for sale' in accordance with IFRS 5, 'Non-current Assets Held for Sale and Discontinued Operations'. The disposal groups have been valued at fair value with a deduction for costs to sell.

The combined acquisition price for the four consolidated acquisitions amounted to SEK 5,063 M, and preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amount to SEK 4,075 M. The acquisition price is adjusted for acquired net debt and estimated earn-outs. Estimated earn-outs amount to SEK 9 M. The acquisition analysis for Cardo Entrance Solutions is presented on Page 15.

The acquisition of a share of ownership representing 37.9% of the outstanding shares in the Swiss entry automation company Agta Record was also carried out. The share of ownership is classified under 'Shares in associates' and reported on a current basis in accordance with the equity method.

On 25 March it was announced that the acquisition of Swesafe had been approved by the competition authorities and that the acquisition would be completed in April 2011. Swesafe is the largest locksmith in Sweden. Its annual sales total SEK 430 M, split equally between mechanical and electromechanical products. Swesafe has 24 branches and more than 300 employees.

On 6 April it was announced that ASSA ABLOY had acquired the Dutch company FlexiForce, a world-leading company in components for sectional doors for industrial use and garage doors for houses. FlexiForce has 300 employees and headquarters in the Netherlands, with subsidiaries in Europe, China and the USA. Its sales in 2011 are expected to total SEK 600 M, with a good operating margin.

On 7 April it was announced that ASSA ABLOY had signed a contract with the Swiss company Sulzer Ltd for the sale of Cardo Flow Solutions. The sale price is SEK 5,900 M on a debt-free basis. This sale does not include Lorentzen & Wettre.

SUSTAINABLE DEVELOPMENT

ASSA ABLOY's Sustainability Report for 2010 is being issued to coincide with the Interim Report for the first quarter and the Annual General Meeting.

Important subjects covered in the Report include the program to assess the Group's suppliers and their sustainability work; water and energy consumption; the reduction of chlorinated organic solvents and environmentally hazardous effluents; independent social audits; and the Group's ongoing activities to spread its message and its goals among its own employees.

PARENT COMPANY

'Other operating income' for the Parent company ASSA ABLOY AB totaled SEK 147 M (350) for the first quarter. Income before tax amounted to SEK 21 M (171). Investments in tangible and intangible assets totaled SEK 1 M (1). Liquidity is good and the equity ratio was 38.7% (51.4). The equity ratio has fallen because of borrowing for the acquisition of Cardo.

ACCOUNTING PRINCIPLES

ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. Significant accounting and valuation principles are detailed on pages 86-91 of the 2010 Annual Report. From 2011 ASSA ABLOY is implementing the International Financial Reporting Standard IFRS 5, 'Non-current Assets Held for Sale and Discontinued Operations'. Non-current assets are classified as assets held for sale when their carrying amount will be largely recovered in a sales transaction and a sale is viewed as being highly probable. They are reported at the lower of carrying amount and fair value less costs to sell if their carrying amount can be largely recovered in a sales transaction and not through continuing use and it is highly probable that a sale will occur.

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

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

As an international Group with a wide geographic spread, ASSA ABLOY is exposed to a number of business and financial 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 Gro up. For a more detailed description of risks and risk management, see the 2010 Annual Report. No significant risks other than the risks described there are judged to have occurred.

OUTLOOK*

Long-term outlook

Long term, ASSA ABLOY expects an increase in security-driven demand. Focus on end-user value and innovation as well as leverage on ASSA ABLOY's strong position will accelerate growth and increase profitability.

Organic sales growth is expected to continue at a good rate. The operating margin (EBIT) and operating cash flow are expected to develop well.

* Outlook published on 7 February 2011:

Long-term outlook

Long term, ASSA ABLOY expects an increase in security-driven demand. Focus on end-user value and innovation as well as leverage on ASSA ABLOY's strong position will accelerate growth and increase profitability.

Organic sales growth is expected to continue at a good rate. The operating margin (EBIT) and operating cash flow are expected to develop well.

Stockholm, 28 April 2011

Johan Molin President and CEO

This Interim Report has not been reviewed by the company's Auditor.

FINANCIAL INFORMATION

The Quarterly Report for the second quarter will be published on 27 July 2011.

FURTHER INFORMATION CAN BE OBTAINED FROM:

Johan Molin, President and CEO, Tel: +46 8 506 485 42 Tomas Eliasson, Chief Financial Officer, Tel: +46 8 506 485 72

ASSA ABLOY is holding an analysts' meeting at 13.00 today at Operaterrassen in Stockholm. The analysts' meeting can also be followed on the Internet at www.assaabloy.com. It is possible to submit questions by telephone on: +46 8 5052 0270, +44 208 817 9301 or +1 718 354 1226

This information is that which ASSA ABLOY is required to disclose under the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act.

The information is released for publication at 12.00 on 28 April.

FINANCIAL INFORMATION - GROUP

INCOME STATEMENT		Jan-Dec Jan-Mar Jan-Mar
	2010 SEK M	2010 SEK M	2011 SEK M
Sales	36,823	8,345	8,699
Cost of goods sold	-21,987	-4,984	-5,139
Gross Income	14,836	3,361	3,560
Selling and administrative expenses	-8,793	-2,066	-2,189
Share in earnings of associated companies	3	0	6
Operating income	6,046	1,295	1,377
Financial items	-680	-137	-162
Income before tax Tax	5,366 -1,286	1,158 -278	1,215 -268
Net income of disposal group classified as held for sale	-	-	-4
Net income	4,080	880	943
Allocation of net income:
Shareholders in ASSA ABLOY AB	4,050	876	941
Non-controlling interest	30	4	2
EARNINGS PER SHARE		Jan-Dec Jan-Mar Jan-Mar
	2010	2010	2011
Total operations	SEK	SEK	SEK
Earnings per share after tax and
before dilution 1)	11.07	2.39	2.57
Earnings per share after tax and
dilution 2)
	10.89	2.36	2.53
Continuing operations
Earnings per share after tax and
before dilution 1)	11.07	2.39	2.58
Earnings per share after tax and
dilution 2)	10.89	2.36	2.54
Discontinued operations Earnings per share after tax and
before dilution 1)	-	-	-0.01
Earnings per share after tax and
dilution 2)	-	-	-0.01
COMPREHENSIVE INCOME		Jan-Dec Jan-Mar Jan-Mar
	2010	2010	2011
Profit for the period	SEK M 4,080	SEK M 880	SEK M 943
Other comprehensive income
Exchange differences on translating foreign operations	-1,249	-160	-1,045
Total comprehensive income for the period	2,831	720	-102
Total comprehensive attributable to:
-Parent company shareholders	2,805	714	-93
-Non-controlling interest	26	6	-9
CASH FLOW STATEMENT		Jan-Dec Jan-Mar Jan-Mar
	2010	2010	2011
	SEK M	SEK M	SEK M
Cash flow from operating activities	5,729	547	321
Cash flow from investing activities	-4,027	-818	-11,768
Cash flow from financing activities	-2,597	-261	11,727
Cash flow	-895	-532	280
Cash and cash equivalents at beginning of period	2,235	2,235	1,302
Cash flow Effect of exchange rate differences	-895	-532	280
Cash and cash equivalents at end of period	-38 1,302	7 1,710	-65 1,517

BALANCE SHEET	31 Dec	31 Mar	31 Mar
	2010	2010	2011
	SEK M	SEK M	SEK M
Intangible assets	25,193	24,443	28,279
Tangible fixed assets	5,422	5,835	5,561
Financial fixed assets	1,595	926	2,121
Total non-current assets	32,210	31,204	35,961
Inventories	4,825	4,678	5,444
Trade receivables	5,596	5,598	6,296
Other non-interest-bearing current assets	1,308	1,677	1,402
Interest-bearing current assets	1,450	1,915	1,678
Assets of disposal group classified as held for sale	-	-	7,171
Total current assets	13,179	13,868	21,991
Total assets	45,389	45,072	57,952
Equity before non-controlling interest	20,652	19,887	20,783
Non-controlling interest	169	167	198
Total equity	20,821	20,054	20,980
Interest-bearing non-current liabilities	9,212	11,674	8,658
Non-interest-bearing non-current liabilities	4,236	4,012	4,276
Total non-current liabilities	13,448	15,686	12,934
Interest-bearing current liabilities	2,864	1,773	14,668
Non-interest-bearing current liabilities	8,256	7,558	8,498
Liabilities of disposal group classified as held for sale	-	-	872
Total current liabilities	11,120	9,331	24,038
Total equity and liabilities	45,389	45,072	57,952

CHANGE IN EQUITY	Jan-Dec	Jan-Mar	Jan-Mar
	2010	2010	2011
	SEK M	SEK M	SEK M
Opening balance	19,334	19,334	20,821
Total comprehensive income for the year	2,831	720	-102
Dividend	-1,317	-	-
Stock purchase plans	6	-	2
Share issue	34	-	221 1)
Purchase of treasury shares	-48	-	-
Non-controlling interest, net	-19	0	38
Closing balance	20,821	20,054	20,980

1) Conversion of convertible debenture relating to Incentive 2006.

KEY DATA	Jan-Dec	Jan-Mar	Jan-Mar
	2010	2010	2011
Return on capital employed excluding items affecting comparability, %	18.5	15.9	15.5
Return on capital employed including items affecting comparability, %	18.5	15.9	15.5
Return on shareholders' equity, %	19.1	16.8	17.3
Equity ratio, %	45.9	44.5	36.2
Interest coverage ratio, times	10.1	9.5	10.0
Interest on convertible debentures net after tax, SEK M	9.9	2.5	2.3
Number of shares, thousands	366,177	365,918	367,732
Weighted average number of shares, thousands	365,744	365,918	366,923
Number of shares after dilution, thousands	372,736	372,931	373,038
Weighted average number of shares after dilution, thousands	372,810	372,931	373,038
Average number of employees	37,279	35,935	38,898

FINANCIAL INFORMATION - PARENT COMPANY

INCOME STATEMENT	Jan-Dec 2010	Jan-Mar 2010	Jan-Mar 2011
	SEK M	SEK M	SEK M
Operating income	778	168	-57
Income before tax	1,679	171	21
Net income	1,492	171	23
BALANCE SHEET	31 Dec	31 Mar	31 Mar
	2010	2010	2011
	SEK M	SEK M	SEK M
Non-current assets	20,614	21,797	31,820
Current assets	3,560	4,145	2,537
Total assets	24,174	25,942	34,357
Equity	12,781	13,322	13,295
Provisions	0	1,890	0
Non-current liabilities	3,601	5,516	3,282
Current liabilities	7,792	5,214	17,780
Total equity and liabilities	24,174	25,942	34,357

QUARTERLY INFORMATION - GROUP

THE GROUP IN SUMMARY

All amounts in SEK M if not otherwise noted.

	Q1	Q2	Q3	Q4	Full Year	Q1	12 month
	2010	2010	2010	2010	2010	2011	rolling
Sales	8,345	9,356	9,474	9,648	36,823	8,699	37,177
Organic growth 4)	-3%	2%	6%	6%	3%	6%
Gross income	3,361	3,761	3,846	3,869	14,836	3,560	15,036
Gross income / Sales	40.3%	40.2%	40.6%	40.1%	40.3%	40.9%	40.4%
Operating income before
depreciation (EBITDA)	1,536	1,780	1,875	1,851	7,041	1,630	7,136
Operating margin (EBITDA)	18.4%	19.0%	19.8%	19.2%	19.1%	18.7%	19.2%
Depreciation	-241	-265	-245	-244	-995	-253	-1,007
Operating income (EBIT)	1,295	1,515	1,630	1,606	6,046	1,377	6,128
Operating margin (EBIT)	15.5%	16.2%	17.2%	16.6%	16.4%	15.8%	16.5%
Financial items	-137	-152	-190	-201	-680	-162	-705
Income before tax	1,158	1,363	1,440	1,405	5,366	1,215	5,423
Profit margin (EBT)	13.9%	14.6%	15.2%	14.6%	14.6%	14.0%	14.6%
Tax	-278	-333	-341	-334	-1,286	-268	-1,276
Net income of disposal group classified as held for sale	-	-	-	-	-	-4	-4
Net income	880	1,031	1,099	1,071	4,080	943	4,144
Allocation of net income:
Shareholders in ASSA ABLOY AB	876	1,019	1,090	1,064	4,050	941	4,114
Non-controlling interest	4	11	9	7	30	2	29
OPERATING CASH FLOW
	Q1 2010	Q2 2010	Q3 2010	Q4 2010	Full Year 2010	Q1 2011	12 month rolling
Operating income (EBIT)	1,295	1,515	1,630	1,606	6,046	1,377	6,128

1,295	1,515	1,630	1,606	6,046	1,377	6,128
241	265	245	244	995	253	1,007
-50	-270	-153	-235	-708	-161	-819
-475	79	167	591	362	-963	-126
-77	-170	-29	-179	-455	-74	-452
-64	21	30	58	45	16	125
870	1,440	1,890	2,085	6,285	448	5,863
0.75	1.06	1.31	1.48	1.17	0.37	1.08

CHANGE IN NET DEBT
	Q1	Q2	Q3	Q4	Full Year	Q1
	2010	2010	2010	2010	2010	2011
Net debt at beginning of the period	11,048	11,469	12,608	10,864	11,048	10,564
Operating cash flow	-870	-1,440	-1,890	-2,085	-6,285	-448
Restructuring payment	112	182	71	101	465	48
Tax paid	261	241	94	203	799	235
Acquisitions/Disposals	768	373	720	1,458	3,319	11,606
Dividend	-	1,317	-	-	1,317	-
Purchase of treasury shares	-	48	-	-	48	-
Translation differences and other	150	418	-739	23	-147	-419
Net debt at end of period	11,469	12,608	10,864	10,564	10,564	21,586
Net debt / Equity	0.57	0.62	0.55	0.51	0.51	1.03
NET DEBT
	Q1	Q2	Q3	Q4		Q1
	2010	2010	2010	2010		2011
Non current interest-bearing receivables	-64	-60	-56	-62		-64
Current interest-bearing investments including derivatives	-699	-205	-252	-170		-378
Cash and bank balances	-1,216	-1,271	-1,225	-1,280		-1,298
Pension provisions	1,114	1,150	1,056	1,078		1,179
Other non current interest-bearing liabilities	10,561	10,265	9,481	8,134		7,479
Current interest-bearing liabilities including derivatives	1,773	2,729	1,860	2,864		14,668
Total	11,469	12,608	10,864	10,564		21,586
CAPITAL EMPLOYED AND FINANCING
	Q1	Q2	Q3	Q4		Q1
	2010	2010	2010	2010		2011
Capital employed	31,523	33,051	30,495	31,385		36,267
- of which, goodwill	22,480	23,659	22,085	22,279		25,343
- of which, other intangibles and fixed assets	7,797	8,160	7,450	8,336		8,496
- of which, shares in associates	38	37	37	37		1,111
Assets and liabilities of disposal group classified as held for sale	-	-	-	-		6,299
Net debt	11,469	12,608	10,864	10,564		21,586
Non-controlling interest	167	174	157	169		198
Shareholders' equity, excluding non-controlling interest	19,887	20,269	19,474	20,652		20,783
DATA PER SHARE	Q1	Q2	Q3	Q4	Full Year	Q1	12 month
	2010	2010	2010	2010	2010	2011	rolling
	SEK	SEK	SEK	SEK	SEK	SEK	SEK
Earnings per share after tax and
before dilution 1)	2.39	2.79	2.98	2.91	11.07	2.57	11.25
Earnings per share after tax and
dilution 2)	2.36	2.74	2.93	2.86	10.89	2.53	11.06
Earnings per share after tax and dilution
after dilution 2)	56.94	57.89	55.65	58.65	58.64	58.34

RESULTS BY DIVISION

SEK M		6) EMEA		Americas 7)		Asia Pacific 8)		Global Technologies 9)		Entrance Systems		Other			Total
Jan - Mar and 31 Mar respectively	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011
Sales, external	3,204	3,034	2,196	2,180	933	1,106	1,071	1,292	942	1,087			8,345 3)	8,699 3)
Sales, intragroup	93	65	9	9	81	85	14	14	13	10	-210	-183
Sales	3,296	3,099	2,205	2,189	1,014	1,192	1,085	1,306	954	1,097	-210	-183	8,345	8,699
Organic growth 4)	2%	0%	-11%	7%	11%	10%	-6%	19%	-3%	4%			-3%	6%
Operating income (EBIT) Operating margin (EBIT)	525 15.9%	518 16.7%	418 19.0%	440 20.1%	104 10.2%	146 12.3%	184 16.9%	187 14.3%	134 14.0%	158 14.4%	-70	-72	1,295 15.5%	1,377 15.8%
Capital employed	9,581	8,698	8,866	7,792	4,005	4,023	5,474	5,839	4,105	10,200	-509	-284	31,523	36,267
- of which, goodwill	5,369	5,358	6,058	5,613	3,769	3,034	4,013	4,124	3,272	7,214	-	-	22,480	25,343
- of which, other intangibles and fixed assets	2,895	2,573	1,795	1,437	1,368	2,174	1,122	1,353	491	836	126	124	7,797	8,496
- of which, shares in associates	38	33	-	-	-	-	-	-	-	1,078			38	1,111
Return on capital employed	19.6%	21.0%	19.0%	22.1%	12.3%	14.5%	13.1%	12.6%	12.7%	8.5%			15.9%	15.5%
Operating income (EBIT)	525	518	418	440	104	146	184	187	134	158	-70	-72	1,295	1,377
Depreciation	110	101	55	47	24	35	36	52	12	13	3	4	241	253
Net capital expenditure	-40	-63	-23	-32	-25	-39	-25	-24	-24	-12	87	9	-50	-161
Movement in working capital	-167	-281	-131	-225	-104	-281	-75	-267	46	-20	-44	111	-475	-963
Cash flow 5)	429	276	320	231	-1	-138	119	-51	169	140			1,011	506
Adjustment for non-cash items											-64	16	-64	16
Paid and received interest											-77	-74	-77	-74
Operating cash flow 5)													870	448
Average number of employees	9,601	9,546	6,481	6,896	14,657	16,210	2,333	2,840	2,754	3,292	109	114	35,935	38,898

SEK M		6) EMEA	Americas 7)		Asia Pacific 8)		Global Technologies 9)		Entrance Systems		Other		Total
Jan - Dec and 31 Dec respectively	2009	2010	2009	2010	2009	2010	2009	2010	2009	2010	2009	2010	2009	2010
Sales, external	13,275	12,660	9,831	9,491	3,507	5,698	4,664	4,951	3,685	4,024			34,963 3)	36,823 3)
Sales, intragroup	327	376	49	45	282	384	102	64	47	48	-807	-916
Sales		13,601 13,036	9,880	9,536	3,789	6,081	4,766	5,015	3,733	4,072	-807	-916	34,963	36,823
Organic growth 4)	-12%	2%	-19%	-2%	-1%	14%	-12%	10%	-3%	-2%			-12%	3%
Operating income (EBIT)	2,056	2,174	1,925	1,886	459	843	766	862	587	627	-380	-346	5,413	6,046
Operating margin (EBIT)	15.1%	16.7%	19.5%	19.8%	12.1%	13.9%	16.1%	17.2%	15.7%	15.4%			15.5%	16.4%
10) Items affecting comparability	-789	-	-	-	-2	-	-167	-	-81	-	-	-	-1,039	-
Operating income (EBIT) including
items affecting comparability	1,267	2,174	1,925	1,886	457	843	599	862	506	627	-380	-346	4,374	6,046
Capital employed	9,814	8,759	8,687	8,163	2,768	4,080	5,464	5,772	4,116	4,365	-467	245	30,382	31,385
- of which, goodwill	5,540	5,471	6,003	6,039	1,536	3,202	4,030	4,265	3,223	3,303			20,333	22,279
- of which, other intangibles and fixed assets - of which, shares in associates	3,097 39	2,632 37	1,757 -	1,566 -	933 -	2,306 -	1,138 -	1,267 -	485 -	431 -	130	136	7,541 39	8,336 37
Return on capital employed
excluding items affecting comparability	16.9%	21.6%	20.5%	21.3%	16.1%	25.1%	12.9%	14.7%	15.2%	14.6%			16.2%	18.5%
Operating income (EBIT)	1,267	2,174	1,925	1,886	457	843	599	862	506	627	-380	-346	4,374	6,046
Restructuring costs	789	-	-	-	2	-	167	-	81	-	-	-	1,039	-
Depreciation	473	417	236	222	99	142	156	145	38	57	11	14	1,014	995
Net capital expenditure	-281	-317	-134	-114	-80	-198	-127	-109	-33	-47	-9	76	-664	-708
Movement in working capital	602	334	649	19	132	130	211	-30	88	-58	-222	-33	1,460	362
Cash flow 5)	2,850	2,607	2,677	2,013	610	917	1,005	868	680	580			7,222	6,695
Adjustment for non-cash items											127	45	127	45
Paid and received interest											-507	-455	-507	-455
Operating cash flow 5)													6,843	6,285
Average number of employees	10,138	9,471	6,897	6,969	7,560	15,510	2,416	2,487	2,253	2,738	112	104	29,375	37,279

Notes
Number of shares, thousands.	Jan-Dec Jan- Mar 2010	2010	Jan- Mar 2011
1) Calculation used for earnings per share after tax and before dilution		365,744 365,918	366,923
2) Calculation used for earnings per share after tax and dilution		372,810 372,931	373,038
	Jan-Dec Jan- Mar		Jan- Mar
9) Sales by Continent.	2010	2010	2011
Europe	15,789	3,950	3,968
North America	11,907	2,686	2,792
Central and South America	854	183	198
Africa	622	162	148
Asia	5,533	888	1,120
Pacific	2,118	475	473

4) Organic growth concern comparable units after adjustment for acqusitions and currency effects. 5) Excluding restructuring items.

6) Europe, Middle East and Africa.

7) North, Central and South America.

8) Asia, Australia and New Zealand. 9) ASSA ABLOY Hospitality and HID Global.

10)Items affecting comparability consist of restructuring costs.

ACQUISITION OF CARDO

At 31 March 2011 ASSA ABLOY had acquired 26,508,087 shares representing 98.2% of Cardo. The total purchase price was SEK 11,133 M for 98.2% of the shares. Additional payment of about SEK 85 M for shares obtained in the extended acceptance period was made on 5 April 2011.

The company was consolidated in ASSA ABLOY with effect from 18 March 2011. Valuation of intangible assets for separate recognition from goodwill will take place during 2011. The remaining goodwill value will be attributable mainly to synergies and other intangible assets not qualified for separate recognition.

Preliminary acquisition analysis for Cardo Entrance Solutions – i.e. excluding disposal groups held for sale – indicates that goodwill amounts to SEK 3,919 M. Remuneration of employees after termination of employment and inventories have been adjusted to fair value.

The table below shows a preliminary acquisition analysis for Cardo at 18 March 2011, excluding disposal groups held for sale in accordance with IFRS 5, 'Non-current Assets Held for Sale and Discontinued Operations'. The figures are preliminary and subject to change.

Preliminary acquisition analysis for Cardo
Entrance Solutions	SEK M
Purchase price paid	11,133
Less: Disposal groups held for sale	-6,290
Total purchase price	4,843
Identifiable acquired assets and liabilities
Intangible assets	57
Tangible fixed assets	345
Financial fixed assets	228
Inventories	485
Accounts receivables	939
Cash and cash equivalents	209
Interest-bearing liabilities	-161
Other liabilities	-1,140
Acquired net assets at fair value	962
Non-controlling interest (1.8%)	-38
Goodwill	3 919
Net sales from times of acquisition	172
EBIT from times of acquisition	21
Net income from times of acquisition	16

Acquisition-related expenses for Cardo amount to SEK 33 M and have been reported as 'Other operating expenses' in 2010.