1

Q1 Report 2010Johan Molin

President & CEO

2

Financial Highlights Q1 2010

Improved market condition and margin expansion– All parts of the world improving– Aftermarket back in the USA, new construction weak – EMEA turned to growth and APAC strongly growing – Large efficiency gains supported strong EBIT

Sales 8,345 MSEK -6%-3% organic, +5% acquired growth, -8% currency

EBIT 1,295 MSEK -2% *Currency effect -98 MSEK

EPS 2.36 SEK +7%Reduced interest and tax rate

* Excluding restructuring charges in 2009 of MSEK 109

3

Sales Highlights Q1

Orders are growing

Resumed investment in sales force

Large number of new products reinforces competitiveness– Global platforms, broadening of market reach

Strong growth of electronic locking systems– Signature online, Aperio, Smartair, Cliq+, Cliq remote, Logical access

New revolutionary printer range launched– Neo platform

Good activity of acquisitions

4

5

Group Sales in Local Currencies Jan-Mar 2010

2 +8

32 -1147 +5

11 +40

6 +3

2 +4

Share of Group sales 2010 YTD, %Year-to-date vs previous year, %

6

21 00022 00023 00024 00025 00026 00027 00028 00029 00030 00031 00032 00033 00034 00035 00036 00037 00038 00039 000

2004 2005 2006 2007 2008 2009

Sa

les,

MS

EK

-15-14-13-12-11-10-9-8-7-6-5-4-3-2-10123456789101112131415

Gro

wth

%

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales Growth Q1 2010 - Currency Adjusted

2010 Q1 +2%Organic -3%Acquired +5%

7

Operating Income (EBIT) MSEK

500

600

700

800

900

1 000

1 100

1 200

1 300

1 400

1 500

2005

2006

2007

2008

2009

2010

3 100

3 300

3 500

3 700

3 900

4 100

4 300

4 500

4 700

4 900

5 100

5 300

5 500

5 700

Quarter Rolling 12-monthsQuarter 12-months

Continued strong EBIT Run rate 5,380 MSEK

(5,572), -3%

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Operating Margin (EBIT)

11,0

12,0

13,0

14,0

15,0

16,0

17,0

2005

2006

2007

2008

2009

2010

EB

IT %

Quarter Rolling 12-months Long Term Target

Run rate 2010 15.6% (15.8)

9

Manufacturing Footprint

Conversion to assembly or closures in high cost countries– 37 factories closed to date, 14 to go

– 27 factories converted to assembly, 27 to go

– 8 offices closed, 17 to go

Consolidation of core production to China and Eastern Europe

Personnel reduction 4,829p, +30% to plan

1,570p more to go

1,406 MSEK remains at the end of the first quarter for all three programs

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Margin Highlights Q1 2010

EBIT margin 15.5% (15.0)

- Volume drop of 4%, Price +1%

- Acquisition dilution of -0.5%

- Negative mix effect due to growth in emerging markets -0.2%

+ Manufacturing footprint gives good contribution

4,829 people since project start

= S, G & A cost slightly declining, 24.8%

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Acquisitions 2010

Fully active on acquisitions– Growing pipeline with

target 5% growth

4 acquisitions completed in 2010– Pan Pan, China

– Aptus, Sweden

– Peiser, Germany

– Schaub, USA

– Annualized 1,810 MSEK, +5.2%

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Division - EMEA

Growth is back!!!

Positive development in most parts– But low level of growth

Eastern Europe, Italy and Spain negative

Raw material and weak Euro compensated by pricing

EBIT strongly improved on the back of savings

Operating margin (EBIT) + Volume 2%+ Good response to new products+ Restructuring savings- Material costs increasing

SALESshare of

Group total %

38

EBIT %

13

14

15

16

17

18

2005

2006

2007

2008

2009

2010

13

Division - Americas

Continued decline in the commercial and residential market

Very good pickup of aftermarket, especially elmech

South America and Mexico growing

Door Group declined >20%

Pricing and sourcing compensates material cost increase

Strong EBIT margin through savings

Operating margin (EBIT) - Volume -11%+ Strong efficiency improvement- Raw materials increasing

SALESshare of

Group total %

26

EBIT %

17

18

19

20

21

2005

2006

2007

2008

2009

2010

14

Division - Asia Pacific

Good growth in all units except Korea

Strongly improved profit

Capacity expansion in China

Dilution from Pan Pan by 1%

Raw materials a short term threat

Operating margin (EBIT)+ Volume +11%

+ Currency effects

+ Restructuring savings

- Raw material

SALESshare of

Group total %

11

EBIT %

6789

10111213141516

2005

2006

2007

2008

2009

2010

15

Division - Global Technologies

Orders intake for HID strongly up, >20%– Logical access in rapid growth

– Access control and secure issuance, many projects were released

– Identification Solutions very strong order situation

Hospitality, strong decline in the quarter– Success with online locks gives good outlook

Savings supports profit

Operating margin (EBIT)- Volume -6%

+ All business units profitable

SALESshare of

Group total %

13

EBIT %

12

13

14

15

16

17

18

2005

2006

2007

2008

2009

2010

16

Division - Entrance Systems

Weak commercial business, especially in the US

Ditec grew after 15 month of decline

Service in good development

Swedish manufacturing closing

Ditec dilutes result by 2.8 %-unit

Operating margin (EBIT) - Volume -3%

+ Manufacturing footprint

+ US setup

- Dilution Ditec

SALESshare of

Group total %

11

EBIT %

12

13

14

15

16

17

18

2005

2006

2007

2008

2009

2010

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Q1 Report 2010Tomas Eliasson

CFO

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Financial Highlights Q1 2010

MSEK 2009 2010 Change 2008 2009 Change

Sales 8,859 8,345 -6% 34,829 34,963 +0%Whereof Organic growth -3% -12%Acquired growth +5% +3%FX-differences -645 -8% +3,491 +9%

Operating income (EBIT)* 1,328 1,295 -2% 5,526 5,413 -2%EBIT-margin (%)* 15.0 15.5 15.9 15.5

Operating cash flow 838 870 +4% 4,769 6,843 +43%

EPS (SEK)* 2.20 2.36 +7% 9.21 9.22 0%

*Excluding restructuring and one off charges of 0 MSEK (109) in Q1 and 1,039 MSEK (1,257) for the full year

1st Quarter Twelve months

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25 000

26 000

27 000

28 000

29 000

30 000

31 000

32 000

33 000

34 000

35 000

2008 2009 2010

Em

plo

ye

es

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Gro

wth

%

Organic Growth Employees

Organic Growth and EmployeesExcluding acquisitions 2008-2010

APAC increaseUS decreaseEMEA flat

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P&L – Components as % of SalesQ1 Year-on-Year

Direct material 31.5% 32.3%

Conversion costs 28.4% 27.4%

Gross Margin 40.1% 40.3%

S, G & A 25.1% 24.8%

EBIT 15.0% 15.5%

2009 2010

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5.0% 15.1% -17.7%

19 -98 45

387 -645 -256

5% -8% -3%

Acq/Div CurrencyOrganicGrowth

15.5%15.0%%

1,2951,328EBIT

8,3458,859Revenues

Bridge Analysis – Jan-Mar 2010

-6%ASSA ABLOY Group

2010Jan-Mar

2009Jan-MarMSEK

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Taxes

Tax rate from 27% to 24%– Lower tax rates in some important countries

– Less income in high tax countries

Favorable mix effect

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Operating Cash Flow, MSEK

0

500

1 000

1 500

2 00020

05

2006

2007

2008

2009

2010

Qua

rter

3 000

3 500

4 000

4 500

5 000

5 500

6 000

6 500

7 000

7 500

12-m

onth

s

Quarter Rolling 12-months

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Gearing % and Net Debt MSEK

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

2005

2006

2007

2008

2009

2010

Net

Deb

t

0

20

40

60

80

100

120

Gea

ring

Net debt Gearing

Debt/Equity 57 (71)

Debt/Equity 57 (71)

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Q1 Report 2010Johan Molin

President & CEO

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Conclusion Q1 2010

Improved market conditions and margin expansion

Resumed investment in front end and maintained high R&D

Strong cash flow

Good activity of acquisitions

Back to growth after 6 quarters, +2%!

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Outlook

Long Term

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 2010

Flat organic growth is expected

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Q&A