ASSA ABLOY

Quarterly Report • Feb 13, 2009

13 February 2009 No: 02/09

Record year for ASSA ABLOY despite weak market development

Fourth quarter

• Sales increased by 9% to SEK 9,468 M (8,721), with –4% organic growth, 4% acquired growth and exchange-rate effects of 9%.
• Operating income (EBIT) increased by 2% to SEK 1,469 M* (1,440), representing a margin of 15.5%* (16.5).
• Net income amounted to SEK 92 M** (859).
• Earnings per share increased by 7% and amounted to SEK 2.45* (2.30).
• There were considerable savings from restructuring and efficiency measures during the quarter that will continue to give positive effects.
• Operating cash flow rose by 10% to a record level of SEK 1,916 M (1,740).

Full year

• Sales increased by 4% to SEK 34,918 M (33,550), with 0% organic growth, 4% acquired growth and exchange-rate effects of 0%.
• Operating income (EBIT) increased by 1% to SEK 5,526 M* (5,458), representing a margin of 15.8%* (16.3).
• Net income amounted to SEK 2,438 M** (3,368).
• Earnings per share increased by 2% and amounted to SEK 9.21* (9.02).
• Operating cash flow was unchanged, amounting to SEK 4,769 M (4,808).
• Major investments in product development were made during the year and will contribute positively to sales.
• The full cost of the new restructuring program, totaling SEK 1,180 M, was expensed during the third and fourth quarters. All projects are now underway, while the program initiated in 2006 will be completed in 2009.
• The board of directors proposes a dividend of SEK 3.60 per share (3.60).

^* Excluding restructuring and non-recurring costs in 2008 amounting to SEK 1,010 M for the quarter and SEK 1,257 M for the year.

^** Excluding restructuring and non-recurring costs, net income for the quarter is SEK 918 M and for the year SEK 3,451 M.

SALES AND INCOME

		Fourth quarter	Full year
	2007	2008 Change	2007	2008	Change
Sales, SEK M	8,721	+9% 9,468	33,550	34,918	+4%
of which,
Organic growth		–4%			+0%
Acquisitions		+4%			+4%
Exchange-rate effects		+810 +9%		+16	+0%
Operating income
(EBIT), SEK M	1,440	1,469*+2%	5,458	5,526*	+1%
Operating margin
(EBIT), %	16.5	15.5*	16.3	15.8*
Income before tax,
SEK M	1,168	1,286* +10%	4,609	4,756*	+3%
Net income, SEK M	859	92** -	3,368	2,438**	-
Operating cash flow,
SEK M	1,740	+10% 1,916	4,808	4,769	–1%
Earnings per share
(EPS), SEK	2.30	+7% 2.45*	9.02	9.21*	+2%

* Excluding restructuring and non-recurring costs in 2008 amounting to SEK 1,010 M for the quarter and SEK 1,257 M for the year.

** Excluding restructuring and non-recurring costs, net income for the quarter is SEK 918 M and for the year SEK 3,451 M.

COMMENTS BY THE PRESIDENT AND CEO

"It is pleasing to report that ASSA ABLOY recorded its highest-ever sales and income in 2008, at the same time as investments in product development and market presence continued at a high level. Ongoing restructuring programs and other measures achieved valuable savings which counteracted the year's steadily weakening market. Acquisition activity maintained a continued high tempo, with 18 acquisitions completed.

However, everything indicates that 2009 will be a challenging year, since the financial crisis has had a strongly negative effect on investments in construction. Positive is that investments in product development are producing a good boost to sales, but are not expected to be sufficient to avoid a negative organic growth in 2009. Our focus will therefore be placed largely on cost control, profit margins and cash flow, while through our global and unique market presence we are active and ready to respond rapidly to opportunities on the market," says Johan Molin, President and CEO.

FOURTH QUARTER

The Group's sales totaled SEK 9,468 M (8,721), representing growth of 9% compared with 2007. In local currencies the increase amounted to 0% (11), of which organic growth for comparable units was –4% (6) while acquired units accounted for 4% (5) of the increase. Exchange-rate effects had a positive impact of SEK 810 M (i.e. 9%) on sales.

Operating income before depreciation, EBITDA, excluding restructuring and non-recurring costs, amounted to SEK 1,703 M (1,670), a rise of 2% compared with 2007. The EBITDA margin was 18.0% (19.1). The Group's operating income, EBIT, excluding restructuring and non-recurring costs, amounted to SEK 1,469 M (1,440), a rise of 2%, after positive currency effects of SEK 155 M. The operating margin was 15.5% (16.5).

Net financial items amounted to SEK 184 M (271), which corresponds to an average interest rate of just over 5%. The Group's income before tax amounted to SEK 276 M (1,168). Adjusted for non-recurring and restructuring costs, income before tax was SEK 1,286 M, representing a rise of 3%. After translation of subsidiaries' income statements, exchange-rate effects had a positive impact of SEK 115 M on the Group's income before tax. The profit margin was 2.9% (13.4) and adjusted for restructuring and non-recurring costs, 13.6%. The Group's tax charge totaled SEK 184 M (309). The effective tax rate for the quarter was affected by the fact that deferred tax has not been considered on some restructuring items. The underlying tax rate was 27%. Earnings per share amounted to SEK 0.29 (2.30). Adjusted for restructuring and non-recurring costs, earnings per share were SEK 2.45.

FULL YEAR

Sales for 2008 totaled SEK 34,918 M (33,550), which represents an increase of 4% compared with 2007. Organic growth was 0% (7). Acquired units contributed 4% (5). Exchange-rate effects affected sales positively by SEK 16 M.

Operating income before depreciation, EBITDA, amounted to SEK 6,447 M (6,366), excluding restructuring and non-recurring costs. The corresponding margin was 18.5% (19.0). The Group's operating income, EBIT, amounted to SEK 5,526 M (5,458), excluding restructuring and non-recurring costs, an increase of 1%. The corresponding operating margin (EBIT) was 15.8% (16.3).

Earnings per share increased by 2% to SEK 9.21 (9.02), excluding restructuring and nonrecurring costs. Operating cash flow amounted to SEK 4,769 M (4,808).

RESTRUCTURING MEASURES

Payments related to the two restructuring programs amounted to SEK 152 M during the quarter, making the total for the full year SEK 485 M. The restructuring program initiated in 2006 has been a great success and will be completed in 2009. The annual rate of savings is close to the target level of SEK 600 M, which will be achieved during 2009. More than 2,000 employees have left the Group as a result of the changes in the production structure.

The restructuring program initiated during the second half of 2008 was fully underway by year-end. The program comprises some 40 projects, is expected to cost SEK 1,180 M and affects 1,800 employees. The payback time is 2-3 years. The entire cost has been expensed in the third and fourth quarters.

COMMENTS BY DIVISION

EMEA

Sales in EMEA division during the quarter totaled SEK 3,629 M (3,519), with organic growth of –9%. The weakening on all West European markets continued. Only Germany showed an increase in sales; otherwise growth was negative. The weakening also continued on the growth markets in Africa and Eastern Europe. Acquired growth amounted to 6%. Operating income excluding restructuring and non-recurring costs amounted to SEK 562 M (602), which represents an operating margin (EBIT) of 15.5% (17.1). Return on capital employed excluding restructuring and non-recurring costs amounted to 17.5% (22.4). The return was diluted by lower income and a number of acquisitions during the year. Operating cash flow before interest paid totaled SEK 938 M (829).

AMERICAS

Growth in Americas division weakened during the quarter but remained strong in the commercial segment, where the positive trend for the Security Doors business unit continued. The sales trend in the residential segment was negative. Total sales amounted to SEK 2,889 M (2,383), with 1% organic growth. Acquired growth amounted to 3%. The operating margin improved and amounted to 19.9% (19.3), excluding restructuring costs. Return on capital employed excluding restructuring costs amounted to 23.1% (21.6). Operating cash flow before interest paid totaled SEK 707 M (717).

ASIA PACIFIC

Organic growth in Asia Pacific division turned negative in the fourth quarter. All business units in Australia and New Zealand, which represent half the division, showed negative growth. Weakening was also evident on the Chinese market. On the other Asian markets apart from China growth was weakly positive. The division's sales totaled SEK 881 M

(895), with –8% organic growth. Acquired growth amounted to 6%. Operating income excluding restructuring costs totaled SEK 92 M (115), which represents an operating margin (EBIT) of 10.4% (12.8). The quarter's return on capital employed excluding restructuring costs amounted to 13.8% (19.6). Operating cash flow before interest paid totaled SEK 194 M (90).

GLOBAL TECHNOLOGIES

Global Technologies division reported negative organic growth for the quarter. The weakened market situation affected all business units. At ITG the program to phase out unprofitable segments continued while some customer projects were postponed. Total sales in the fourth quarter were SEK 1,315 M (1,328), with organic growth of –8%. Acquired growth amounted to –3%. The division's operating income excluding restructuring costs amounted to SEK 203 M (219), giving an operating margin (EBIT) of 15.4% (16.5). Return on capital employed excluding restructuring costs amounted to 13.8% (16.9). Operating cash flow before interest paid totaled SEK 275 M (293).

ENTRANCE SYSTEMS

Entrance Systems division reported sales of SEK 952 M (823) in the fourth quarter, representing organic growth of 3%, the same figure as for the corresponding quarter last year. Acquired growth amounted to 6%. Demand from the retailing sector weakened but was counteracted by some expansion of demand from the hospital and healthcare sector and a positive trend on the service side. Operating income excluding restructuring costs amounted to SEK 150 M (130), giving an operating margin (EBIT) of 15.8% (15.7). Return on capital employed excluding restructuring costs amounted to 18.1% (16.3). Operating cash flow before interest paid totaled SEK 104 M (177).

ACQUISITIONS

The major acquisition completed and consolidated during the fourth quarter was that of Copiax in Sweden. Information abut Copiax has been published on several occasions, most recently in the Interim Report for the third quarter of 2008. Adding smaller acquisitions, a total of 20 companies have been consolidated during the year of which two concerned the final acquisition of the minority shares in iRevo, which is already being consolidated in the Group since 2007 (see below). The combined acquisition price for the 20 companies amounts to SEK 2,013 M, and preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amount to about SEK 1,460 M. The acquisition price is adjusted for acquired net debt and estimated earn-outs.

During the fall Asia Pacific division made a public offer for the outstanding 49% of shares in the South Korean company iRevo. More than 90% of the total number of outstanding shares are now owned by ASSA ABLOY and the Korean stock exchange has approved the company's request for delisting. The first 51% of iRevo was acquired by ASSA ABLOY 2007 and the company has been consolidated in the Group since 1 October 2007.

The previously announced acquisition of the Chinese company Shenfei has now been approved by the authorities.

The competition authority in Germany has rejected the company's application concerning the acquisition of the German company SimonsVoss. ASSA ABLOY has lodged a formal appeal and is currently considering the next step in the process.

SUSTAINABLE DEVELOPMENT

ASSA ABLOY's units all over the world are working purposefully to reduce the emission of greenhouse gases. This applies to units on both mature and new markets and to both existing and newly acquired companies. ASSA ABLOY's largest production unit in North America, Sargent Manufacturing, has made an investment in a combined-heat-and-power plant. By using the plant both to generate power and for heating, efficiency has been raised from 40% to 90%, which has significantly reduced energy consumption and the emission of greenhouse gases. Furthermore the investment has a financial payback time of only two years.

The 2008 Sustainability Report, reporting on the Group's 20-point program and giving other information about sustainable development, will be published at the time of the Annual General Meeting in April 2009.

OTHER EVENTS

The operating costs for 2008 for EMEA division include a non-recurring item of SEK 77 M relating to the provision of supplementary lock protection in the Swedish operation.

PARENT COMPANY

'Other operating income' for the Parent company ASSA ABLOY AB totaled SEK 1,775 M (1,641) for the full year. Income before tax amounted to SEK 1,590 M (2,351). Investments in tangible and intangible assets totaled SEK 0 M (496). Liquidity is good and the equity ratio was 39.8% (47.1).

DIVIDEND AND ANNUAL GENERAL MEETING

The Board of Directors proposes a dividend of SEK 3.60 (3.60) per share for the 2008 financial year. The Annual General Meeting will be held on 23 April 2009.

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 67- 71 of the 2007 Annual Report. New or revised IFRS effective after 31 December 2007 have had no material effect on the consolidated income statements or balance sheets. The Group's Interim Reports are prepared in accordance with IAS 34. The Parent company applies RFR 2.1.

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 Group. For a more detailed description of risks and risk management refer to the 2007 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 for the year

2009 will be a challenging year since the financial crisis has had a strongly negative effect on investments in construction, and negative organic growth for the year is therefore expected for ASSA ABLOY.

* The long-term outlook is unchanged while the outlook for 2009 is new. No outlook for 2009 has previously been published.

Stockholm, 13 February 2009

Johan Molin President and CEO

The Year-End Report has not been reviewed by the Company's Auditor.

Financial information

The Interim Report for the first quarter will be published on 22 April 2009. The Annual General Meeting will be held at Moderna Museet (the Museum of Modern Art) in Stockholm on 23 April.

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 10.00 today at Klarabergsviadukten 90 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 08.30 on 13 February.

Press Release

FINANCIAL INFORMATION - GROUP

INCOME STATEMENT	Jan-Dec 2007 SEKM	Jan-Dec 2008 SEK M	Oct-Dec 2007 SEKN	Oct-Dec 2008 SEKN
Sales	33,550	34,918	8,721	9,468
Cost of goods sold	$-19,751$	$-21,532$	$-5,134$	$-6,354$
Gross Income	13,799	13,386	3,587	3,114
Selling and administrative expenses	$-8.351$	$-9,129$	$-2.149$	$-2,656$
Share in earnings of associated companies	9	$12 \overline{ }$	2	3
Operating income	5,458	4,269	1,440	460
Financial items	-849	$-770$	$-271$	$-184$
Income before tax	4,609	3,499	1,168	276
Tax	$-1,240$	$-1,061$	-309	$-184$
Net income	3,368	2,438	859	92
Allocation of net income:
Shareholders in ASSA ABLOY AB	3,358	2,413	854	84
Minority interests	10	25	5	9

EARNINGS PER SHARE	Jan-Dec 2007 SEK	Jan-Dec 2008 SEK	Oct-Dec 2007 SEK	Oct-Dec 2008 SEK
Earnings per share after tax and
before dilution $1$	9.18	6.60	2.34	0.23
Earnings per share after tax and
before dilution $2$ )	9.02	6.55	2.30	0.29
Earnings per share after tax and
dilution, excl items affecting comparability $2$	9.02	9.21	2.30	2.45

Jan-Dec		Oct-Dec	Oct-Dec
2007	2008	2007	2008
SEK M	SEK M	SEKN	SEKN
3.871	4.369	1.343	1.813
$-2.127$	$-2.648$	-646	$-796$
$-1.568$	$-1.311$	$-390$	-747
176	410	307	270
		Jan-Dec

Tel: +46 (0)8 506 485 00 Fax: +46 (0)8 506 485 85 www.assaabloy.com

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience.

Press Release

BALANCE SHEET	31 Dec 2007 SEK M	31 Dec 2008 SEKN
Intangible fixed assets	18,708	22,662
Tangible fixed assets	5,345	5,952
Financial fixed assets	1,089	1,112
Inventories	4,399	5,383
Trade receivables	5,537	6,372
Other non-interest-bearing current assets	1,221	1,213
Interest-bearing current assets	1,433	2,266
Total assets	37,732	44,960
Equity	15,668	18,838
Interest-bearing non-current liabilities	9,205	8,948
Non-interest-bearing non-current liabilities	863	1,660
Interest-bearing current liabilities	5,285	7,588
Non-interest-bearing current liabilities	6,711	7,926
Total equity and liabilities	37,732	44.960

CHANGE IN EQUITY	Jan-Dec	Jan-Dec
	2007	2008
	SEK M	SEK M
Opening balance 1 January	13.645	15,668
Dividend	$-1.189$	$-1,317$
Minority interest, net	135	$-82$
Exchange difference for the period	$-291$	2.131
Net Income	3.368	2,438
Closing balance at end of period	15.668	18,838

KEY DATA	Jan-Dec 2007	Jan-Dec 2008
Return on capital employed excl items affecting comparability, %	18.4	17.2
Return on capital employed incl items affecting comparability, %	18.4	13.3
Return on shareholders' equity, %	21.0	12.8
Equity ratio, %	41.5	41.9
Interest coverage ratio, times	7.4	5.7
Interest on convertible debentures net after tax, SEK M	55.0	81.0
Number of shares, thousands	365,918	365,918
Number of shares after dilution, thousands	380,713	380,713
Weighted average number of shares after dilution, thousands	378,533	380,713
Average number of employees	32,267	32,723

Tel: +46 (0)8 506 485 00 Fax: +46 (0)8 506 485 85 www.assaabloy.com

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience.

Press Release

FINANCIAL INFORMATION - PARENT COMPANY

INCOME STATEMENT	Jan-Dec	Jan-Dec
	2007	2008
	SEK M	SEK M
Operating income	760	992
Income before tax	2,351	1,589
Net income	2,154	1,154
BALANCE SHEET	31 Dec	31 Dec
	2007	2008
	SEK M	SEK M
Non-current assets	16,439	19,274
Current assets	14,881	15,329
Total assets	31,320	34,603
Equity	14,753	13,776
Provisions	91	58
Non-current liabilities	6,454	5,145
Current liabilities	10,022	15,624

Total equity and liabilities

Tel: +46 (0)8 506 485 00 Fax: +46 (0)8 506 485 85 www.assaabloy.com

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience.

31,320

34.603

QUARTERLY INFORMATION - GROUP

THE GROUP IN SUMMARY

(All amounts in SEK M if not noted otherwise)

	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
	2007	2007	2007	2007	2007	2008	2008	2008	2008	2008
Sales	8,227	8,329	8,274	8,721	33,550	8,203	8,526	8,722	9,468	34,918
Organic growth 3)	8%	7%	7%	6%	7%	0%	5%	1%	-4%	0%
Gross income
excl items affecting comparability	3,383	3,425	3,405	3,587	13,799	3,383	3,547	3,590	3,898	14,418
Gross income / Sales	41.1%	41.1%	41.2%	41.1%	41.1%	41.2%	41.6%	41.2%	41.2%	41.3%
Operating income before
depreciation (EBITDA)
excl items affecting comparability	1,518	1,554	1,625	1,670	6,366	1,476	1,599	1,669	1,703	6,447
Gross margin (EBITDA)	18.5%	18.7%	19.6%	19.1%	19.0%	18.0%	18.8%	19.1%	18.0%	18.5%
Depreciation	-229	-229	-221	-230	-909	-232	-222	-234	-233	-921
Operating income (EBIT)
excl items affecting comparability	1,289	1,325	1,404	1,440	5,458	1,244	1,378	1,435	1,469	5,526
Operating margin (EBIT)	15.7%	15.9%	17.0%	16.5%	16.3%	15.2%	16.2%	16.5%	15.5%	15.8%
Items affecting comparability 10)		-	-	-	-	-	-	-247	-1,010	-1,257
	-
Operating income (EBIT)	1,289	1,325	1,404	1,440	5,458	1,244	1,378	1,188	460	4,269
Financial items	-188	-197	-193	-271	-849	-189	-190	-207	-184	-770
Income before tax	1,101	1,128	1,211	1,168	4,609	1,055	1,188	980	276	3,499
Profit margin (EBT)	13.4%	13.5%	14.6%	13.4%	13.7%	12.9%	13.9%	11.2%	2.9%	10.0%
Tax	-298	-306	-327	-309	-1,240	-283	-323	-271	-184	-1,061
Net income	803	822	884	859	3,368	772	865	709	92	2,438
Allocation of net income:
Share holders in ASSA ABLOY AB	803	820	882	854	3,358	772	857	700	84	2,413
Minority interests	1	2	2	5	10	0	8	8	9	25
OPERATING CASH FLOW
	Q1	Q2	Q3	Q4	Full Year	Q1	Q 2	Q3	Q4	Full Year
	2007	2007	2007	2007	2007	2008	2008	2008	2008	2008
Operating income (EBIT)	1,289	1,325	1,404	1,440	5,458	1,244	1,378	1,188	460	4,269
Restructuring costs	-	-	-	-	-	-	-	247	933	1,180
Depreciation	229	229	221	230	909	232	222	234	233	921
Net capital expenditure Change in working capital	-101 -469	-218 -159	-220 53	-212 550	-751 -25	-164 -581	-173 -113	-199 -111	-293 801	-829 -5
Paid and received interest	-124	-216	-149	-245	-734	-162	-206	-134	-217	-718
Adjustment for non-cash items	-19	-4	-3	-23	-49	14	-26	-36	-1	-49
Operating cash flow 4)	805	957	1,306	1,740	4,808	583	1,081	1,189	1,916	4,769

Operating cash flow / Income before tax 4) 0.73 0.85 1.08 1.49 1.04 0.55 0.91 0.97 1.49 1.02

Press Release

CHANGE IN NET DEBT
	Q1	Q2	Q3	Q4	Full Year	Q1	Q 2	Q3		Q4 Full Year
	2007	2007	2007	2007	2007	2008	2008	2008	2008	2008
Net debt at beginning of the period	13,560	13,799	14,534	13,456	13,560	12,953	12,414	13,549	14,010	12,953
Operating cash flow	$-805$	$-957$	$-1.306$	$-1,740$	$-4,808$	$-583$	$-1.081$	$-1.189$	$-1,916$	$-4,769$
Restructuring payment	44	81	90	209	424	111	97	126	152	485
Tax paid	173	433	258	400	1,264	127	251	81	283	742
Acquisitions	509	92	341	434	1,376	126	473	717	503	1,819
Dividend	÷,	1,189			1,189	ä,	1,317			1,317
Translation differences	318	$-103$	$-461$	194	$-52$	$-320$	78	726	981	1,466
Net debt at end of period	13,799	14,534	13,456	12,953	12,953	12,414	13,549	14,010	14,013	14,013
Net debt / Equity, times	0.94	1.02	0.91	0.83	0.83	0.79	0.87	0.80	0.74	0.74
NET DEBT
	Q1	Q 2	Q3	Q4		Q1	Q 2	Q3	Q4
	2007	2007	2007	2007		2008	2008	2008	2008
Long-term interest-bearing receivables	$-139$	$-161$	$-197$	$-105$		$-102$	$-83$	$-89$	$-256$
Short-term interest-bearing investments	$-79$	$-119$	$-261$	$-220$		$-332$	$-191$	$-133$	$-688$
Cash and bank balances	$-998$	$-1,549$	$-979$	$-1,212$		$-953$	$-1,221$	$-1,534$	$-1,579$
Pension provisions	1,337	1,239	1,213	1,156		1,151	1,150	1,131	1,182
Other long-term interest-bearing liabilities	7,392	8,218	8,002	8,050		7,707	7,683	7,539	7,766
Short-term interest-bearing liabilities	6,285	6,906	5,678	5,284		4,943	6,212	7,096	7,589
Total	13,799	14,534	13,456	12,953		12,414	13,549	14,010	14,013
CAPITAL EMPLOYED AND FINANCING
	Q1	Q 2	Q3	Q4		Q1	Q 2	Q3	Q4
	2007	2007	2007	2007		2008	2008	2008	2008
Capital employed	28,535	28,822	28,198	28,621		28,116	29,045	31,538	32,850
- of which goodwill	17,375	17,237	17,077	17,270		16,508	17,068	18,851	20,669
Net debt	13,799	14,534	13,456	12,953		12,414	13,549	14,010	14,013
Minority interest	59	56	56	201		181	188	211	163
Shareholders' equity (excl minority interest)	14,677	14,232	14,686	15,467		15,521	15,308	17,317	18,674
DATA PER SHARE	Q1	Q2	Q3	Q 4	Full Year	Q1	Q 2	Q3		Q4 Full Year
	2007	2007	2007	2007	2007	2008	2008	2008	2008	2008
	SEK	SEK	SEK	SEK	SEK	SEK	SEK	SEK	SEK	SEK
Earnings per share after tax and
before dilution 1)	2.19	2.24	2.41	2.34	9.18	2.11	2.34	1.91	0.23	6.60
Earnings per share after tax and
dilution $2$	2.16	2.20	2.36	2.30	9.02	2.08	2.30	1.89	0.29	6.55
Earnings per share after tax and dilution
excl items affecting comparatbility 2)	2.16	2.20	2.36	2.30	9.02	2.08	2.30	2.38	2.45	9.21
Shareholders' equity per share
after dilution 2)	42.46	43.68	44.68	46.76	46.76	46.64	46.13	51.61	55.91	55.91

ASSA ABLOY AB (publ) Box 70340 SE-107 23 Stockholm, Sweden Visiting address: Klarabergsviadukten 90

Tel: +46 (0)8 506 485 00 Fax: +46 (0)8 506 485 85 www.assaabloy.com

ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience.

RESULTS BY DIVISION

SEK M	5) EMEA	Americas 6)	Asia Pacific 7)		Global Technologies 8)	Systems		Other	Total
Oct - Dec and 31 Dec respectively	2007 2008	2007	2008 2007	2008	2007 2008	2007	2008 2007	2008	2007 2008
Sales, external	3,414 3,544	2,368	2,879 830	809	1,298 1,295	812	940		8,721 9,468
Sales, intragroup	106 85	15	10 65	72	30 20	11	11 -226
Sales	3,519 3,629	2,383	895 2,889	881	1,328 1,315	823	-226 952	-198	8,721 9,468
Organic growth 3)	4% -9%	5%	1% 15%	-8%	10% -8%	3%	3%		6% -4%
Operating income (EBIT) Operating margin (EBIT)	602 562 17.1% 15.5%	460 19.3% 19.9%	574 115 12.8%	92 10.4% 16.5%	203 219 15.4%	130 15.7%	-86 150 15.8%	-111	1,440 1,469 16.5% 15.5%
10) I tem s affecting com parability	-789 -	-	-6 -	-32	-86 -	-	-97	- -	-1,010 -
Operating income (EBIT) incl
items affecting comparability	602 -226	460	568 115	60	116 219	130	-86 53	-111	1,440 460
Capital em ployed	10,055 12,306	8,595	9,639 2,520	2,768	5,181 6,112	3,149	3,425 -879	-1,400	28,621 32,850
- of which goodwill	4,926 5,766	4,928	6,236 1,211	1,628	3,640 4,275	2,566	2,763		17,270 20,669
Return on capital employed
excl items affecting comparability	22.4% 17.5%	21.6% 23.1%	19.6%	13.8% 16.9%	13.8%	16.3%	18.1%		18.5% 17.8%
Operating incom e (EBIT)	-226 602	460	115 568	60	219 116	130	53 -86	-111	1,440
Restructuring costs Depreciation	712 - 109 123	- 49	6 - 54 20	32 22	86 - 38 27	- 9	97 9 3	- - -2	- 230
Net capital expenditure	-141 -121	-14	-75 -12	-27	-27 -40	-9	-8 -6	-21	-212 -293
Movement in working capital	259 450	222	153 -33	107	63 85	47	-47 -8	51	550
Cash flow 4)	829 938	717	707 90	194	293 275	177	104		2,008 2,134
Adjustment for non-cash items							-23	-1	-23
Paid and received interest							-245	-217	-245 -217
Operating cash flow 4)

					Global Technologies 8)		Entrance
SEK M	5) EMEA	Americas 6)		Asia Pacific 7)			Systems	Other	Total
Oct - Dec and 31 Dec respectively	2007 2008	2007	2008	2007 2008	2007	2008 2007	2008	2007	2008 2007	2008
Sales, external Sales, intragroup	3,414 3,544 106	2,368 85 15	2,879 10	830 809 65 72	1,298 30	1,295 20	812 940 11 11	-226	8,721	9,468
Sales	3,519 3,629	2,383	2,889	895 881	1,328	1,315	823 952	-226	8,721 -198	9,468
Organic growth 3)	-9% 4%	5%	1%	-8% 15%	10%	-8%	3% 3%		6%	-4%
Operating income (EBIT)	602	460 562	574	92 115	219	203	130 150	-86	-111 1,440	1,469
Operating margin (EBIT)	17.1% 15.5%	19.3%	19.9% 12.8%	10.4%	16.5%	15.4% 15.7%	15.8%		16.5%	15.5%
10)
I tem s affecting com parability	-	-789 -	-6	-32 -	-	-86	-97 -	-	-	-1,010 -
Operating income (EBIT) incl
items affecting comparability	-226 602	460	568	60 115	219	116	130 53	-86	-111 1,440	460
Capital em ployed	10,055 12,306	8,595	9,639 2,520	2,768	5,181	6,112 3,149	3,425	-879	-1,400 28,621	32,850
- of which goodwill	5,766 4,926	4,928	6,236 1,211	1,628	3,640	4,275 2,566	2,763		17,270	20,669
Return on capital employed
excl items affecting comparability	22.4% 17.5%	21.6%	23.1% 19.6%	13.8%	16.9%	13.8% 16.3%	18.1%		18.5%	17.8%
Operating incom e (EBIT) Restructuring costs	602 -	-226 460 712 -	568 6	115 60 - 32	219 -	116 86	130 53 97 -	-86 -	-111 1,440 -	460 - 933
Depreciation	109	123 49	54	20 22	38	27	9 9	3	-2 230	233
Net capital expenditure	-141	-121 -14	-75	-12 -27	-27	-40	-9 -8	-6	-21 -212	-293
Movement in working capital Cash flow 4)	259 829	450 222 717 938	153 707	-33 107 90 194	63 293	85 275	47 -47 177 104	-8	51 550 2,008	801 2,134
Adjustment for non-cash items								-23	-1 -23	-1
Paid and received interest								-245	-217 -245	-217
Operating cash flow 4)									1,740	1,916
	5)	Americas 6)		Asia Pacific 7)	Global Technologies 8)		Entrance	Other
SEK M	EMEA						Systems			Total
Jan - Dec and 31 Dec respectively	2007 2008	2007	2008	2007 2008	2007	2008 2007	2008	2007	2008 2007	2008
Sales, external	13,073 13,578	10,166 410	10,426 2,558	3,031 290	4,805	4,748 2,949	3,135	-836	33,550 -915	9) 9) 34,918
Sales, intragroup Sales	405 13,477 13,988	54 10,220	41 2,780 10,467	222 3,321	117 4,922	136 4,884 2,987	39 38 3,173	-836	33,550 -915	34,918
Organic growth 3)	7% -2%	5%	4%	10% 0%	11%	0%	6% 3%		7%	0%
Operating income (EBIT) Operating margin (EBIT)	2,295 2,289 17.0% 16.4%	1,995 19.5%	2,101 20.1% 11.6%	322 357 10.8%	754 15.3%	729 14.9% 14.4%	432 453 14.3%	-340	5,458 -404 16.3%	5,526 15.8%
10) I tem s affecting com parability	-	-863 -	-77	-65 -	-	-149	-103 -	-	-	- -1,257
Operating income (EBIT) incl
items affecting comparability	2,295 1,426	1,995	2,024	322 293	754	580	432 350	-340	5,458 -404	4,269
Capital em ployed	10,055 12,306	8,595	9,639 2,520	2,768	5,181	6,112 3,149	3,425	-879	-1,400 28,621	32,850
- of which goodwill	4,926 5,766	4,928	6,236 1,211	1,628	3,640	4,275 2,566	2,763		17,270	20,669
Return on capital employed
excl items affecting comparability	21.9% 19.9%	22.7%	24.5% 13.8%	13.2%	14.7%	12.7% 13.7%	13.8%		18.4%	17.2%
Operating incom e (EBIT) Restructuring costs	2,295 1,426 -	1,995 786 -	2,024 77	293 322 65 -	754 -	580 149	432 350 103 -	-340 -	-404 5,458 -	4,269 - 1,180
Depreciation	433	455 218	205	69 80	138	136	38 37	12	909 8	921
Net capital expenditure Movement in working capital	-351 -111	-328 -141 82 140	-214	-56 -98 -40 120	-164 -29	-129 -64	-14 -31 -60 41	-22 -27	-29 -751 -88 -25	-829 -5
Cash flow 4)	2,267 2,421	2,211	5 2,097	294 460	699	672	497 399		5,591	5,536
Adjustment for non-cash items								-49	-49 -49	-49
Paid and received interest								-734	-718 -734	-718
Operating cash flow 4)									4,808	4,769
Average number of employees	12,493 11,903	9,428	8,573 5,445	7,065	2,650	2,811 2,137	2,260	113	111 32,267	32,723
1)
Number of shares, thousands, used for 2) Number of shares, thousands, used for	the calculation am ount calculation: Oct-Dec:	to 365,918 for 380,713 (380,713);	all periods. Jan-Dec:380,713	(378,533).
3) Organic growth concern com parable units	after adjustm ent	for acqusitions and	currency effects.
4) Excluding restructuring item s.
5) Europe, Middle East and Africa.
6) North, Central and South America. 7) Asia, Australia and New Zealand.
8) ASSA ABLOY Hospitality and HID Global.
9) Sales Jan-Dec 2008 (2007) by Geography:	Europe 16,219	(15,924), North Am	erica 12,787	(12,503), Central and	South Am erica	632 (583), Africa	560 (506),	Asia 2,890 (2,127),	Pacific 1,829	(1,908).
10) I tem s affecting com parability consist of	restructuring costs	and non-recurring	charges. The	non-recurring charges	relate to EMEA	and am ount to	SEK 77 M, both	for Q4 and the	full year.