ASSA ABLOY Q4 2014 investors presentation 5 February 2015

1

Q4 Report 2014 Johan Molin

President & CEO

Financial highlights Q4 2014

Strong ending of the year – Strong growth in Americas, Global Tech and ESD – Growth in EMEA – Decline in APAC due to strict credit policy and weak market

in China – Strong cash flow

Sales 15,847 MSEK +20% 3% organic, 8% acquired growth, 9% currency

EBIT 2,681 MSEK +22% Currency effect 209 MSEK

EPS 5.10 SEK +25% Underlying tax rate 26%

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Financial highlights Jan-Dec 2014

A very solid year with strong continued progress – US market turning strong – Europe divided – Emerging markets slowing, especially China in Q4 – Big success from innovative products – Good contribution from acquisitions

Sales 56,843 MSEK +17% 3% organic, 9% acquired growth, 5% currency

EBIT 9,257 MSEK +17% Currency effect 349 MSEK

EPS 17.38 SEK +17% Underlying tax rate 26%

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Strong progress of Government ID – New orders; Ireland, Saudi Arabia, Angola – First National ID card in EU based on E-passport

Strong demand in the US for home automation – Home automation drives Digital Door Lock sales

Starwood mobile keys show good progress – 150 first hotels under installation

Sustainability in good progress – New products create sustainable total door solutions – Good progress of KPIs in manufacturing

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Market highlights

5

Group sales in local currencies Jan-Dec 2014

2 +21

36 +26 16 +3

4 +7

1 +17

Share of Group sales 2014 YTD, % Year-to-date vs previous year, %

41 +6

Emerging markets 25% of sales

-15-10-5051015202530

29 00032 00035 00038 00041 00044 00047 00050 00053 00056 00059 000

2007 2008 2009 2010 2011 2012 2013 2014Organic Growth Acquired Growth Sales in Fixed Currencies

Sales growth, currency adjusted

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2014 Q4 +11% Organic +3% Acquired +8%

Sales MSEK Growth, %

Operating income (EBIT*), MSEK

4 5005 0005 5006 0006 5007 0007 5008 0008 5009 0009 500

9001 1001 3001 5001 7001 9002 1002 3002 5002 700

2007 2008 2009 2010 2011 2012 2013 2014Quarter Rolling 12-months

Quarter 12-months

Run rate 9,257 MSEK (7,923) +17%

7

12,0

13,0

14,0

15,0

16,0

17,0

2007 2008 2009 2010 2011 2012 2013 2014Quarter Rolling 12-months

2014 Dilution Q4 -0.2% 2014 -0.3%

Operating margin (EBIT), %

Run rate 2014 16.3% (16.3)

Long term target range (average)

8

EBIT Margin

Manufacturing footprint

9

Status manufacturing footprint programs 2006-2013: – 64 factories closed to date, 16 to go – 77 factories converted to assembly, 12 to go – 36 offices closed, 11 to go

Personal reduction QTD 459p and total 9,414p

570p in further planned reductions

941 MSEK of the provision remains for all programs

Margin highlights Q4 2014

EBIT margin 16.9% (16.6) +0.3%

+ Volume increase 2%, price 1%

+ Margin increase +0.3% + Organic growth + Manufacturing footprint + Currency +0.2% - Acquisitions -0.2%

10

Acquisitions 2014

Fully active pipeline

20 acquisitions done in 2014

Annualized sales 2,600 MSEK

Added sales 5.4%

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Digi Electronic Lock, China

12

Turnover of 300 MSEK with 620 employees

The leading digital door lock manufacturer in China

Complete product range for the mid to low segments

Complements our current product range

Accretive to EPS

ODIS, Chile

13

Turnover of 120 MSEK with 240 employees

Leading supplier of locks and padlocks in Chile

Adds complementary market segments

Enables total door opening solutions

Accretive to EPS

Silvana and Metalika, Brazil

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Combined turnover of 250 MSEK with 410 employees

Market leading companies for locks and fire doors in Brazil

Complements existing business in Brazil

Accretive to EPS

Division - EMEA

Strong growth in Germany, Iberia, Eastern Europe and Africa

Good growth in Scandinavia

Flat in the UK, Italy and Israel

Negative in Benelux, France and Finland

Continued investment in sales and R&D

Operating margin (EBIT) + Organic 2% + Slight leverage due to savings - Dilution & Currency -0.4%

SALES share of

Group total %

25

15

13141516171819

2009 2010 2011 2012 2013 2014

EBIT %

Division - Americas

Strong growth in AHW, Doors, El-mech, Residential and South America

Good growth in High Security, Canada and Mexico

Investment in R&D and spec salesmen

Strong quoting activity

Operating margin (EBIT)

+ Organic 8%

+ Strong leverage from efficiency

- Currency & Dilution -0.2%

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SALES share of

Group total %

20

18

19

20

21

22

23

2009 2010 2011 2012 2013 2014

EBIT %

Division - Asia Pacific

Strong growth in Australia, New Zealand, SEA and North Asia

Strong decline in China due to strict credit policy and weak market

Strong contribution from efficiency works in China

Strategic addition of Digi Electronic Lock

Operating margin (EBIT) - Organic -7% + Efficiency in China + Positive sales mix + Positive dilution +0.3%

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SALES share of

Group total %

579

11131517

2009 2010 2011 2012 2013 2014

EBIT %

Division - Global Technologies

HID – Strong growth in Gov-ID, Biometrics and IDT (inlays) – Good growth in IAM (Identity and access management) – Flat sales in Project sales – Austin move almost completed

Hospitality – Strong growth – Maintained strong profit

Operating margin (EBIT) + Organic 5% + Positive sales mix + Currency +1.0%

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21

SALES share of

Group total %

1415161718192021

2009 2010 2011 2012 2013 2014

EBIT %

Division - Entrance Systems Strong growth in Door Automatics, High Speed

Doors, Flexiforce, Amarr and 4Front

Decline in Industrial and Residential EU and Ditec

Price pressure in EU

Good progress in newly acquired companies

Operating margin (EBIT) + Organic 4% + Efficiency improvement - Price pressure in EU and Mix - Dilution -0.6%

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23

SALES share of

Group total %

1112131415161718

2009 2010 2011 2012 2013 2014

EBIT %

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Q4 Report 2014 Carolina Dybeck Happe

CFO

Financial highlights Q4 2014

MSEK 2013 2014 Change 2013 2014 Change

Sales 13,242 15,847 +20% 48,481 56,843 +17% Whereof Organic growth +3% +3% Acquired growth +8% +9% FX-differences +1,129 +9% +2,138 +5% Operating income (EBIT) 2,202 2,681 +22% 7,923 9,257 +17% EBIT-margin (%) ) 16.6 16.9 16.3 16.3 Operating cash flow 2,541 3,469 +37% 6,803 8,238 +21% EPS (SEK) 4.08 5.10 +25% 14.84 17.38 +17%

4th Quarter Twelve months

26

Bridge Analysis – Oct-Dec 2014

MSEK 2013

Oct-Dec

Organic Currency Acq/Div 2014

Oct-Dec

3% 9% 8% 20%

Revenues 13,242 363 1,129 1,113 15,847

EBIT 2,202 113 209 157 2,681

% 16.6% 31.2% 18.6% 14.1% 16.9%

Dilution / Accretion 0.3% 0.2% -0.2%

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P&L Components as % of sales Jan – Dec 2014

Direct material 35.0% 35.4% 36.5%

Conversion costs 25.5% 25.4% 24.9%

Gross Margin 39.5% 39.2% 38.6%

S, G & A 23.2% 22.6% 22.3%

EBIT 16.3% 16.6% 16.3%

2014 YTD excluding acquisitions

2013 YTD

2014 YTD

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Operating cash flow, MSEK

3 500

4 500

5 500

6 500

7 500

8 500

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2007 2008 2009 2010 2011 2012 2013 2014

Quarter Cash Rolling 12-months EBT Rolling 12 months

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Quarter 12 months

Gearing % and net debt MSEK

0

20

40

60

80

100

120

0

5 000

10 000

15 000

20 000

25 000

30 000

2007 2008 2009 2010 2011 2012 2013 2014

Net debt Gearing

Debt/Equity 62 (68)

Net debt/EBITDA 2.1 (2.2)

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Net Debt Gearing

*) 2007-2011 Not restated for changed pension accounting principles.

Earnings per share, SEK

8,009,0010,0011,0012,0013,0014,0015,0016,0017,0018,00

0,000,501,001,502,002,503,003,504,004,505,005,50

2007 2008 2009 2010 2011 2012 2013 2014Quarter Rolling 12-months

Quarter SEK 12-months

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Excluding restructuring costs of 1,000 MSEK in Q4 and full year 2013. 2007-2011 Not restated for changed pension accounting principles.

2014 EPS +17% Dividend proposal 2015: 6.50 SEK (5.70)

Stock split proposal 3:1

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Q4 Report 2014 Johan Molin

President & CEO

Conclusions Q4 2014

Strong growth by 20% with 3% organic – Strong in US – Europe divided – Emerging markets slowing, especially China

New products very successful, 32% of sales Strong EBIT improvement of 22% Very strong cash flow +37%

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Q&A