ASSA ABLOY Annual Report 2001

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FY2001 Annual Report · ASSA ABLOY

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Annual Report 2001

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ASSA ABLOY AB (publ.)
Postal Address: P.O. Box 70340, SE-107 23 Stockholm • Visiting Address: Klarabergsviadukten 90

Phone: +46 (0)8 506 485 00 • Fax: +46 (0)8 506 485 85
Registered No.: SE.556059-3575 • Registered Office: Stockholm, Sweden • www.assaabloy.com

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Contents

The year 2001 in brief

The President and CEO, Carl-Henric Svanberg

Group development

The ASSA ABLOY share

ASSA ABLOY and the lock industry

Strategy and financial objectives

Management philosophy

Environmental management philosophy

The trend towards higher security

ASSA ABLOY brand platform

ASSA ABLOY technology platforms

Integration Project – Volvo Ocean Race

Scandinavia

Finland

Central Europe

South Europe

United Kingdom

North America

South Pacific

New Markets

Hotel locks

Identification

Report of the Board of Directors

Consolidated income statement
and cash flow statement

Consolidated balance sheet

Parent Company income statement
and cash flow statement

Parent Company balance sheet

Accounting and valuation principles

Financial risk management

Notes

Audit report

ASSA ABLOY’s Board of Directors

ASSA ABLOY’s Group Management

Addresses

A S S A A B L O Y / 2 0 0 1 • 1

31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 2

The Annual General Meeting of
ASSA ABLOY AB will be held at
‘Cirkus’, Djurgårdsslätten, Djurgården,
Stockholm at 3 p.m. on Monday 29
April 2002.

Notice of attendance at the Annual
General Meeting

Shareholders wishing to attend the
Meeting must:
- be recorded in the register of share-
holders kept by Värdepapperscentralen
VPC AB (Swedish Central Securities
Depository and Clearing Organization),
no later than 19 April 2002 and:
- give notice of attendance to
ASSA ABLOY AB, P.O. Box 70340,
SE-107 23 Stockholm,
tel. +46 8 506 485 00,
fax. +46 8 506 485 85 or on
www.assaabloy.com by 4 p.m.
on 23 April 2002. Notification must
include the shareholder’s name and
personal identity number as well as
information regarding the number of
shares held.

Any shareholder whose shares are
nominee-registered must also, in order to
be entitled to take part in the Meeting,
request a temporary entry in the register
of shareholders kept by VPC. Share-
holders must notify the nominee about
this well before 19 April 2002, when this
entry must have been effected.

2 • A S S A A B L O Y / 2 0 0 1

Financial information from ASSA ABLOY
will be published as follows:

Interim Reports:
1 January - 31 March: 29 April 2002
1 January - 30 June: 9 August 2002
1 January - 30 September: 6 November 2002

Year-end Report for 2002:
6 February 2003

Annual Report for 2002:
March 2003

Annual Reports and other Reports may
be ordered from:
ASSA ABLOY AB
P.O. Box 70340
SE-107 23 Stockholm
Sweden
Tel. +46 8 506 485 00
Fax. +46 8 506 485 85
www.assaabloy.com

31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 3

ASSA ABLOY:
growth profile
Stable organic growth
Trend towards higher
security

(cid:2) Aftermarket sales more
than half the volume
Electromechanical
products – cross sales
– new markets

Increasing margins

Improvements in each unit
– benchmarking
– transfer of know-how

Cash flow even stronger
(cid:2) Work flow and balance
sheet rationalization
(cid:2) Goodwill amortization

Consolidation opportunities
– focus on earnings per
share (EPS)

Fragmented industry –
harmonization and R&D
requirements lead to
consolidation

(cid:2) Strong cash flow funds

acquisitions

The year 2001 in brief:

Successful global integration
and continued expansion

Sales increased by 56 percent to SEK 22,510 M (14,394).

Refinancing of the Group

(cid:2) Organic growth for comparable units was 3 percent.

Income before tax increased by 17 percent to
SEK 1,642 M* (1,402).
Earnings per share (EPS) increased by 9 percent to
SEK 2.98* (2.73).
Earnings per share before goodwill amortization
increased by 39 percent to SEK 5.39* (3.88).

(cid:2) Operating cash flow amounted to SEK 2,338 M (1,756).

Successful integration of 30 new companies with 12,000
employees.
Integration Project – Volvo Ocean Race

The Group’s participation in the Volvo Ocean Race has proved
to be an extremely important and successful tool in the work of
integrating 30 new companies and their 12,000 employees.
There is a perfect geographical match between the Race and
the Group, and the project is a highly effective vehicle for uniting
employees, partners and customers.

*excluding provision for the Merrimac dispute, USD 12.5 M plus interest (SEK 166 M).

ASSA ABLOY has restructured its financing during the
year. Bank financing has been replaced by capital-market-
based long-term bonds and short-term fundings. One of
the activities was to issue a 5-year EUR 600 M bond loan,
which was oversubscribed several times.
Incentive program for the employees

An incentive program for the Group’s employees was
introduced. The program, which is based on convertible
bonds, has a total value of EUR 100 M. The program was
heavily oversubscribed and over 4,500 employees are
taking part.

Acquisitions during 2001

Nine companies were acquired during 2001. The
acquisitions represent significant additions to the
Group and add geographical and product strengths.
The companies acquired during 2001 have sales, pro
forma, of SEK 4.5 billion, of which SEK 2.0 billion has
been consolidated. Total acquisition price amounts to
SEK 4.0 billion. Goodwill amounts to SEK 2.0 billion,
of which SEK 1.4 billion will be tax-deductible.

A S S A A B L O Y / 2 0 0 1 • 3

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31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 4

The President and CEO, Carl-Henric Svanberg:

“We are turning 100 companies into one
global team with a common mission and
a common mindset”

2001 has been our most interesting and challenging year so far. Sales increased
by 56 percent, and our participation in the Volvo Ocean Race has proved to be
an extremely important and successful tool in the work of integrating 30 new
companies and their 12,000 employees. As we follow our boat around the world
we are making sure in local management meetings that our common way of
working is understood, accepted and quickly implemented. This also gives us a
chance to inform our business partners about our ideas for the future, and we
can make people around the world understand that behind each famous local
brand there is a strong global leader.

A successful year in
a slowing world economy

Our goal is to build a true world-leading
company in the area of locking solutions
through a three-step strategy:

• Establish a global platform through
acquiring and developing companies
locally established positions,
with
strong brands and significant installed
product bases as well as a good recur-
ring cash flow.
• Develop our Group strength through
synergies, joint development projects
and expansion of our areas of expertise.
• Accelerate our organic growth
through our worldwide sales network
by offering products that meet rising
demands for security, including new
and more advanced technologies.

This year we have taken a significant
step towards our goal, and are now well
established in all parts of the world.
Sales increased 56 percent to sek
22,510 m, and on a pro forma basis
exceed sek 25 billion. Organic growth
was 3 percent, two points down from
last year mainly due to the slower world
economy and the dramatic drop in
demand in the hotel segment.

4 • A S S A A B L O Y / 2 0 0 1

Income before tax and non-recurring
items grew by 17 percent to sek 1,642 m.
Our work
improve efficiency
continues. This is not reflected in our
reported margin development because
of the large new acquired volumes with
lower margins.

Earnings per share excluding non-
recurring items increased by 9 percent,
diluted by last year’s share issues. Cash
flow after capital expenditure amounted
to sek 2,338 m, an indication of the
quality of the earnings.

The year’s major task of integrating
the Yale group is running according to
our acquisition plan. The clean-out of un-
profitable low-end products has started.
The profit improvement potential is
well in line with our expectations. The
professionalism and enthusiasm among
employees is encouraging.

Our North American operations
have shown steady organic growth des-
pite the slowing economy and the
September terrorist attacks. Margins
continue to increase and the many
acquisitions have added new products
and markets. This constitutes a solid plat-
form for continued strong development.
The European companies have also
experienced a slower economy. Their

organic growth was mainly driven by
continued market and product devel-
opment. Lips in the Netherlands is
quickly improving its profitability,
while the turnaround of Yale in the uk
requires more time-consuming product
and market development.

Australia ended the year strongly as
a result of successful market develop-
ment and cross-selling projects. Our
New Markets in eastern Europe, South
America, Israel, Asia and Africa form
an interesting growth area. The hotel
segment faced a dramatic downturn
after the September events. On the
other hand we saw a clearly increased
demand for identification products for
access control as a result of a general
increased focus on security.

Continued acquisitions –
increased opportunities
for organic growth
We are continuing to grow our installed
base through acquisitions of traditional
lock companies. Obvious examples
include Yale (with established positions
in many markets throughout the
world), Phillips in Mexico, Interlock in
New Zealand and Viro in South
Africa.

31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 5

A S S A A B L O Y / 2 0 0 1 • 5

31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 6

The President and CEO, Carl-Henric Svanberg:

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We are also expanding our product
portfolio and areas of technical expert-
ise. Through the acquisitions of hid
and Indala we have created a base for
leadership in the area of identification
products for access control systems.
This is a fast-growing business and will
play a vital part in the development of
more intelligent locks.

Every acquisition also adds organic
growth opportunities. All our com-
panies work on growth projects to
expand their product line or enter new
sales channels with existing products.
The assa abloy product information
database (pid), which contains all
Group products, significantly simpli-
fies such internal cross-selling.

Local business and local
excellence with the strength
of a global leader
The lock business is local. A strong
local presence with local products and
close customer relations is an obvious
advantage. We therefore operate in a
multi-domestic structure and spread
best practice through intense and
inspiring benchmarking, well-established
working models and case studies of
sister companies. The potential for
margin improvements throughout the
Group is significant.

The local companies also benefit
from Group resources such as more
advanced technologies, manufacturing
of more global products, joint efforts in
emerging markets, funding and so on.
In this way we are able to offer genuine
value to the individual customer in a
world where economy of scale is a must.

6 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 7

The President and CEO, Carl-Henric Svanberg:

Developing Group strength

For the third time since the Group was
founded we have launched an incentive
program for our employees. The pro-
gram was heavily oversubscribed and
more than 4500 people signed up for a
total of eur 100 m. In addition we have
refinanced our Group during the fall to
support our growth strategy: previous
bank financing has been replaced by
capital-market-based bonds and short-
term fundings.

We are increasing our efforts in the
area of new technologies. There is sig-
nificant potential for various forms of
intelligent locks, as a result of a grow-
ing need for security combined with
convenience and safety.

The cliq masterkeying cylinder
was launched in the fall. This intelli-
gent electromechanical cylinder is the
first of its kind, powered from the key
and therefore easy to install and use. It
combines the strength of conventional
cylinders with full electronic key and
access control. cliq was developed in
an international project where the best
r&d engineers from our Group compa-
nies collaborated with outside experts.

Our leadership role
in increasing security
Our goal is to become ‘The world’s
leading lock group’. Today this is a
reality in terms of size, although the
lock business is still very fragmented.
However we will not be satisfied until
our customers and partners feel that
we are providing the best and most
innovative locking solutions for in-
creased security in every way, including
the best service and support.

We are living in a world with a
growing need for security. All security

work starts with understanding risks
and the likely consequences of an inci-
dent. The us attacks in September
sadly displayed to us all the importance
of giving security matters the right
attention. Even in these devastating cir-
cumstances, the majority of the people
involved managed to escape in time
due to rigorous security planning and
regular safety drills.

It is our role to develop awareness
and knowledge about risks and ways
of improving security. Our locking
solutions are used in daily lives in
homes, schools, hospitals, shops and
offices. The crucial issue is always the
same: to provide security that also
allows safe and efficient escape in
emergency situations and that is con-
venient enough to ensure proper usage.
The results of a recent survey in
France highlight the importance of
information and education in security-
related work. We asked 1000 people
representing the market about their
attitudes to security. 26 percent had
experienced an intrusion. Trauma and
the loss of personal items were far
bigger issues than the loss of valuables
covered by insurance. 71 percent stated
that they had improved their locks and
physical security after the intrusion.

Unlock Your Life –
Our Brand Mission
We have agreed on a brand strategy
for the Group. All business is carried
out under our strong local brands.
assa abloy is the endorsement brand
guaranteeing world-leading technolo-
gies, operational best practice, human
resource development and financial
strength. At the core of our brand
strategy lies our belief that by providing

freedom

efficient locking solutions we make the
world safer and more secure, creating
lives.
more
‘Unlock Your Life’ describes this and
will be used as the theme for our
increased market communication over
the coming years.

in people’s

We expect continued good
development
Our major acquisitions made in recent
years have considerably strengthened
the Group. We have successfully
completed the first and most critical
part of the integration process, and the
task of realizing synergies is now being
intensified.

Our Group will be able to take
advantage of our world-leading Research
and Development and our global
distribution strength to meet people’s
increasing needs for security. There are
opportunities for higher margins in
both old and newly acquired companies.
In addition, the restructuring of the
lock industry is continuing and creates
opportunities for further acquisitions.
All in all we therefore look forward
to continued good sales and profit
development.

Stockholm, February 2002

Carl-Henric Svanberg
President & ceo

A S S A A B L O Y / 2 0 0 1 • 7

31998_ASSA_Fram_E_DS 02-03-14 13.12 Sida 8

Group development:

Income statement

Sales by organizational unit 3)

2001
EUR M1)

2,436

2001
SEK M

2000
SEK M

1999
SEK M

22,510

14,394

10,277

-1,500

-13,863

-8,568

-6,282

936

-594

8,647

-5,488

5,827

3,995

-3,719

-2,612

3,159

-860

-166

2,133

-664

1,476

-507

-20

949

2,107

-387

1,720

-331

1,402

-453

-34

915

1,383

-189

1,194

-230

981

-348

-14

619

Sales

Cost of goods sold

Gross income

Selling and administrative expenses
Operating income before
goodwill amortization

Goodwill amortization

Non-recurring items

Operating income

Financial items

342

-93

-18

231

-72

Share in earnings of associated companies

Income before tax

Tax

Minority interests

Net income

160

-55

-2

103

Operating Cash Flow

Operating income before
goodwill amortization

Depreciation and amortization
(excluding goodwill)

Net capital expenditure

Change in working capital

Paid and recieved interest

Adjustment for non-cash items

Operating cash flow

2001
EUR M1)

2001
SEK M

2000
SEK M

1999
SEK M

342

3,159

2,107

1,382

-90

-8

-88

253

861

-830

-77

-817

598

-497

-94

-357

-2

478

-390

-27

-227

2,338

1,756

1,218

Capital employed and financing

Capital employed
- of which goodwill

Net debt

Minority interests

Shareholders' equity

2001
EUR M2)

2,993
1,758

1,669

2001
SEK M

27,861
16,371

15,534

481

2000
SEK M

19,779
12,078

8,560

560

1999
SEK M

8,534
3,246

2,998

267

1,272

11,846

10,659

5,269

The ASSA ABLOY product portfolio

Mechanical locks,
lock systems and
accessories, 62%

Security doors
and fittings, 15%

Industrial locks, 4%

Electromechanical locks
and electronic locks, 19%

Scandinavia

Finland

Central Europe5)

South Europe6)

United Kingdom

North America

South Pacific

New Markets7)

Hotel locks

Identification

Elimination of internal sales

2001
EUR M1)

213

126

155

314

167

1,048

191

114

113

-96

2001
SEK M

1,971

1,165

1,432

2,905

1,545

9,682

841

1,764

1,056

1,043

-894

2000
SEK M

1,889

1,060

1,027

2,232

665

1999
SEK M

1,777

898

575

1,682

270

5,409

3,721

772

981

1,052

590

354

965

-693

-555

Total

2,436

22,510

14,394

10 277

Sales by country 4)

USA

France

United Kingdom

Germany

Sweden

Australia

Finland

Canada

Norway

Mexico

Denmark

Italy

Spain

Asia (excl. China, Hong Kong and Japan)

The Netherlands

Africa

China

Middle East

Belgium

Czech Republic

South America

Japan

Central America (excl. Mexico)

Switzerland

New Zealand

Poland

Baltic Countries

Russia

Romania

Portugal

Other Countries

Total

2001
EUR M1)

1,075

206

167

104

33
33

15
15

2001
SEK M

9,935

1,904

1,545

963

855

775

662

661

538

445

424

344

341

305
304

292

286

282

248

200

185

145

141
137

2000
SEK M

5,418

1,647

1999
SEK M

3,835

1,419

763

780

839

724

606

373

500

152

365

214

178

198
167

110

125

201

171

165

46
57

340

528

741

563

540

267

476

329

100

113
89

147

159

4
36

250

198

147

2,436

22,510

14,394

10,277

8 • A S S A A B L O Y / 2 0 0 1

1) 1 EUR = 9.24 SEK 2) 1 EUR = 9.31 SEK 3) Including exports from each market.
4) Sales to customers in each country 5) Germany, the Netherlands, Switzerland and Austria.
6) France, Belgium, Spain and Italy. 7) Asia, eastern Europe, South America, southern Africa and Israel.

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 9

Key data

2001
22,510
3
17.9

14.0
10.2*
1,642*
7.3*
2,338
1.42*
830
1,721
34,669
11,846
15,534
27,861
11,490
35.6
3.5*
1.31
8.9*

Sales, SEK M
Organic growth, %
Gross margin (EBITDA), %
Operating margin before
goodwill amortization (EBITA), %
Operating margin (EBIT), %
Income before tax, SEK M
Profit margin (EBT), %
Operating cash flow, SEK M
Operating cash flow / Income before tax
Net capital expenditure, SEK M
Depreciation and amortization SEK M
Total assets, SEK M
Shareholders' equity, SEK M
Net debt, SEK M
Capital employed, SEK M
Capital employed excluding goodwill, SEK M
Equity ratio, %
Interest coverage ratio, times
Net debt / equity ratio, times
Return on shareholders' equity, %
Return on capital employed
before goodwill amortization, %
Return on capital employed, %
Operational return on capital employed, %
Earnings per share after tax and full conversion, SEK
Earnings per share after tax and full
conversion excluding goodwill, SEK
Interest on convertible debenture
loan net after tax, SEK M
Cash earnings per share after tax
and full conversion, SEK
Shareholders' equity per share after
35.80
full conversion, SEK
Number of shares, thousands
353,751
Number of shares after full conversion, thousands 361,730
24,211
Average number of employees

32.9*
9.7*
13.3*
2.98*

8.07*

5.39*

9.0

2000 **

1999 **

14,394
5
18.8

14.6
12.0
1,402
9.7
1,756
1.25
497
985
26,029
10,659
8,560
19,779
7,701
43.1
5.5
0.80
13.3

34.2
13.7
16.7
2.73

3.88

8.5

5.81

10,277
5
18.1

13.5
11.6
981
9.5
1,218
1.24
391
667
11,241
5,269
2,998
8,534
5,288
49.2
5.3
0.57
16.2

1998
8,582
6
18.5

12.8
11.2
748
8.7
1,028
1.37
316
623
9,219
2,715
4,237
6,984
4,460
29.8
4.4
1.56
19.0

1997
6,968
8
16.8

11.6
10.1
537
7.7
796
1.48
260
461
7,692
2,317
3,442
5,783
3,948
30.4
4.1
1.49
17.2

***

28.7
15.6
17.9
2.00

2.61

8.7

26.4
15.2
17.4
1.76

***

25.2
15.3
17.6
1.23

***

2.21

1.59

11.7

3.2

4.10

***

3.75

***

2.72

***

30.58
352,453
356,712
16,881

***

16.95
314,409
324,200
12,654

9.93
284,304
295,448
10,545

***

8.64
282,928
295,448
8,088

***

* Key data for 2001 are exclusive non-recurring items.
** Key data for 1999 and 2000 have been adjusted for changes in accounting principles
*** Comparative figures are adjusted for dilution related to new rights issue, with the adjustment factor 0,987.

Definitions
(cid:2) Organic growth: Change in sales for comparable
units in local currency and adjusted for acquisitions.
(cid:2) Gross margin: Operating income before depreciation and
amortization as a percentage of sales.
(cid:2) Operating margin before goodwill amortization: Operating
income before goodwill amortization as a percentage of sales.
(cid:2) Operating margin: Operating income as a percentage of sales.
(cid:2) Profit margin: Income before tax as a percentage of sales.
(cid:2) Operating cash flow: Based on the consolidated cash flow
statement.
(cid:2) Net capital expenditure: Purchase of tangible fixed assets
reduced by sale of tangible fixed assets.
(cid:2) Depreciation and amortization: Depreciation / amortization of
tangible and intangible fixed assets.
(cid:2) Net debt: Interest-bearing liabilities less interest-bearing assets.
(cid:2) Capital employed: Total assets reduced by interest-bearing
assets and non-interest-bearing liabilities including deferred tax
liability.
(cid:2) Capital employed excl. goodwill: Total assets reduced by
interest-bearing assets, non-interest-bearing liabilities including
deferred tax liability, and goodwill.
(cid:2) Asset/equity ratio: Shareholders’ equity including minority
interests as a percentage of total assets.
(cid:2) Interest coverage ratio: Income before tax plus interest net in
relation to interest net.
(cid:2) Return on shareholders’ equity: Net income plus interest
expense after tax regarding convertible debenture loan in relation
to average shareholders’ equity after full conversion.

(cid:2) Return on capital employed before goodwill amortization:
Income before tax plus interest net and goodwill amortization in
relation to average capital employed excluding goodwill.
(cid:2) Return on capital employed: Income before tax
plus interest net in relation to average capital employed.
(cid:2) Operational return on capital employed:
Income before tax plus interest net and goodwill amortization in
relation to average capital employed.
(cid:2) Earnings per share after tax and full conversion: Net income
plus interest expenses after tax regarding convertible debenture
loan in relation to weighted average number of shares after full
conversion.
(cid:2) Earnings per share after tax and full conversion excluding
goodwill: Net income excluding goodwill amortization plus
interest expenses after tax regarding convertible debenture
loan in relation to weighted average number of shares after full
conversion.
(cid:2) Cash earnings per share after tax and full
conversion: Net income plus interest expenses after tax
regarding convertible debenture loan, plus depreciation, amortiza-
tion and minority interests, minus share in earnings of associated
companies and adjusted for change in deferred tax in relation
to weighted average number of shares after full conversion.
(cid:2) Shareholders’ equity per share after full conversion:
Shareholders’ equity plus convertible debenture loan in relation
to number of shares after full conversion.

SEK M

24,000

20,000

16,000

12,000

8,000

4,000

SEK M

30,000

24,000

18,000

12,000

6,000

1995

1996

1997 1998

1999

2000

2001

Sales

Income before tax*

SEK M

1,800

1,500

1,200

900

600

300

1995

1996

1997

1998

1999

2000

2001

Capital employed

Return on capital employed*

Return on capital employed before goodwill amortization*

SEK M

2,500

2,000

1,500

1,000

500

SEK

1995

1996

1997

1998

1999

2000

2001

Income before tax*

Operating cash flow

1995

1996

1997 1998

1999

2000
2000

2001

Earnings per share*

Earnings per share
excl. goodwill*

A S S A A B L O Y / 2 0 0 1 • 9

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 10

The ASSA ABLOY share:

assa abloy ab has been listed on
the
since
Stockholm Exchange
8 November 1994. In October 1995,
the share was moved to the a list. The
price of the assa abloy share fell by
18.2 percent in 2001. During the same
period, Stockholm Exchange All-Share
(sax) fell by 16.9 percent. The closing
price at year-end was sek 151.0, corres-
ponding to a market capitalization of
sek 53,416 m. Including all shares due
for conversion, the market capitalization
is calculated to be sek 54,621 m. The
number of shareholders at year-end was
approximately 20,700. Investors outside
Sweden, including Wärtsilä Corporation,
account for 56 percent of the capital.

During the year a total of 294 million
shares were traded, which is an aver-
age of approximately 1,176,078 shares
per trading day and represents about
83 percent of the issued shares.

Share capital
assa abloy’s share capital at year-end
amounted to sek 353,751,412, distri-
buted among 19,175,323 Series a shares
and 334,576,089 Series b shares. All
shares have a par value of sek 1.00 and
provide the holders with equal rights
to the Company's assets and earnings.
Each Series a share carries 10 votes
and each Series b share one vote.

Convertible debentures
for personnel

The assa abloy group has issued
convertible debentures to employees in
the Group. About 400 employees par-
ticipated in the first issue in 1995. The
debenture amounted to sek 75,004,375
and ran from 29 June 1995 to 30 June
2000. Conversion to Series b shares
took place in the period from 1 July
1998 to 15 June 2000.

The second debenture was issued
in 1997. a total of 1,400 employees
participated in this issue. This deben-
ture amounts to sek 250,000,000
and runs from 8 December 1997 to
2 December 2002. Conversion to Series b

ASSA ABLOY AB’s share trend

Share price, SEK

B share

General index, AFGX

Shares traded 1000s/month (incl. off-floor trading)

200

175

150

125

100

94 95

(Source: SIX Findata)

10 • A S S A A B L O Y / 2 0 0 1

60 000

40 000

20 000

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 11

shares may be exercised from 1 December
2000 to 15 November 2002. On full
conversion at a conversion price of
sek 58.70, an additional 4,258,944
shares would be created. In 2001,
applications for conversion of debt
instruments with a par value of sek
76.2 m were submitted.

In 2001 a new program, incentive
2001, was launched, based on four
series of convertible bonds each total-
ing eur 25 m. The only difference bet-
ween the series of bonds is the conver-
sion price. The program was offered
to employees in 16 countries, and over
4,500 employees decided to participate.
On full conversion, at a conversion
price for Bond 1 of eur 15.8, Bond 2
of eur 19, Bond 3 of eur 22.1 and
Bond 4 of eur 25.3, an additional
5,017,432 shares would be created.
The convertible bonds can only be
converted from October 2006.

Dividend and dividend policy
The Board of Directors and President
propose that sek 1.00 per share be
paid as a dividend to shareholders for
the 2001 financial year, corresponding
to a direct return of 0.7 percent on the
Series b share price of sek 151.0 on 31
December 2001. The aim is that, in
the long term, the dividend should
correspond to approximately one-
third of assa abloy's average earnings
after standard tax, but always taking
into account assa abloy's long-term
financial requirements.

Data per share 1)
SEK/Share
Earnings after 28% standard tax
Earnings after full tax method
Dividend
Dividend, % 3)
Direct yield, % 4)
Share price at end of period
Highest share price
Lowest share price
Shareholders’ equity
Number of shares (1,000s) 5)

2001
3.28 6)
2.98 6)
1.00 2)
30.5
0.7
151.00
186.00
94.50
35.80

2000
2.91
2.73
0.90
30.9
0.5
184.50
206.70
110.50

30.58 7)

361,730 356,712

1999
2.27
2.00 7)
0.74
32.6
0.6
119.50
140.00
73.21
16.95 7)
324,200

1998
1.79
1.76
0.60
33.5
0.8
75.65
92.73
48.07
9.93
295,448

1997
1.36
1.23
0.43
31.6
0.8
51.24
52.95
28.69
8.64
295,448

1996
0.95
0.93
0.30
31.6
1.0
29.28
28.97
12.38
5.40

1995
0.60
0.56
0.22
36.7
1.6
13.24
15.16
5.23
4.37
265,396 221,684

1) Adjusted for new issues. 2) Proposed dividend. 3) Dividend as percentage of earnings per share after 28% standard tax.

4) Dividend as percentage of the share price at the end of the period. 5) After full conversion. 6) Excluding non-recurring items

7) Key data has been adjusted due to change in accounting principle.

Share capital
ASSA ABLOY's share capital at 31 December 2001 amounted to SEK 353,751,412 distributed among
19,175,323 Series A shares and 334,576,089 Series B shares. All shares have a par value of SEK 1:00
and provide the holders with equal rights to the Company's assets and earnings. Each Series A share
carries ten votes and each Series B share one vote.

Share capital

B shares

C shares
20 000

1 428 550
1 714 260

A shares

Transaction

Year
1989
1994 100:1 split
1994 Bonus issue
1994 Non-cash issue
1 746 005
2 095 206
1996 New share issue
1996 Conversion of C shares into A shares 3 809 466
4 190 412
1997 New share issue
4 190 412
1998 Converted debentures
4 190 412
1999 Converted debentures before split
1999 Bonus issue
1999 4:1 split
1999 New share issue
1999 Converted debentures

16 761 648
18 437 812

after split and new issues

2000 Converted debentures
2000 New share issue
2000 Issue in kind with disapplication

of the shareholders'
preferential rights

2001 Converted debentures

Number of shares after
full conversion

* SEK 1 per share – balanced number of shares

18 437 812
18 437 812
19 175 323

19 175 323
19 175 323

*SEK
2 000 000
2 000 000

53 592 110
64 310 532
64 310 532
70 732 118
71 075 983
71 369 974

2 000 000

50 417 555
60 501 066
60 501 066
66 541 706
66 885 571
67 179 562

268 718 248
295 564 487

285 479 896
314 002 299

295 970 830
301 598 383
313 512 880

314 408 642
320 036 195
332 688 203

333 277 912
334 576 089

352 453 235
353 751 412

19 175 323

342 554 288

361 729 611

Ownership structure (listed by voting rights)

Data is based on the share register at 31 December 2001

A shares
10 546 425
7 118 818
1 510 080

Owner
Wärtsilä Corporation
SäkI
Melker Schörling + family and companies
Investment AB Latour
Deutsche Bank
Janus Capital Corp.
Alecta
SEB unit trusts
Robur unit trusts
Nordea unit trusts
Other shareholders with more than 50,000 shares
Shareholders with 501-50,000 shares
Shareholders with up to 500 shares
Total number

19 175 323

B shares
27 270 350
811 400
9 484 630
23 713 735
19 637 744
17 767 572
11 555 481
9 907 253
9 468 470
5 354 660
176 599 192
20 688 540
2 317 062
334 576 089

Capital % Voting rights %
25.2
13.7
4.7
4.5
3.7
3.4
2.2
1.9
1.8
1.0
33.6
3.9
0.4
100.0

10.7
2.2
3.1
6.7
5.6
5.0
3.3
2.8
2.7
1.5
49.9
5.8
0.7
100.0

Source: SIS Ägarservice AB and VPC AB

A S S A A B L O Y / 2 0 0 1 • 1 1

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 12

ASSA ABLOY and the lock industry:

A stable traditional market
now in transformation

With ongoing sales of about sek 25
billion, assa abloy is the largest lock
company in the world – yet its share of
a still very fragmented world market is
just over 10 percent.

The assa abloy group originated
in the Nordic region in 1994, with the
spin-off of Assa ab from the Swedish
security company Securitas and the
acquisition shortly thereafter of the
Finnish lock company Abloy. Since
then the Group has expanded by a
combination of organic growth and
further acquisitions, most notably of
the Yale group of companies in August
2000.

Today assa abloy holds market-
leading positions in the Nordic region,
the uk, Germany, France, Belgium,
Spain, Australia and New Zealand as
well as many fast-developing new mar-
kets including the Czech Republic,
Slovakia and Romania. Strong posi-
tions are also held in Switzerland and
Poland. In the North American market,
the Group is the second-largest player
in the usa and has leading positions in
Canada and Mexico. Following the
successful integration of the Yale com-
panies, South Africa, the Far East and

THE MARKET GROWS
– customer satisfaction

TRUE

ATTRACTIVE TO
DISTRIBUTORS
– partnerships

EDUCATE
THE MARKET

LEADERSHIP

IDENTIFY TRUE
CUSTOMER NEEDS
– invest in R&D

12 • A S S A A B L O Y / 2 0 0 1

parts of South America have also be-
come strong positions.

In the specialized field of hotel
locks, assa abloy is the world leader
through its subsidiaries VingCard-
Elsafe and Timelox.

Identification technology is another
area where the Group holds world
leading positions through hid and
Indala.

Product segments where the Group is
active are:
• Construction locks
• Industrial locks
• Door and window hardware and

accessories

• Electromechanical locks
• Hotel locks
• Security doors (us market mainly)
• Automobile locks (Czech Republic

and uk only)
• Identification

MARKET
The global lock market remains frag-
mented. In western Europe and North
America, a number of the companies
are family-owned, with strong and
well-established relationships with
their local distribution networks and
leading positions in their own home
markets. In other parts of the world
established lock standards and strong
brands are less common.

The long lifetime of mechanical
lock products and the diversity of local
standards combine to prevent globali-
zation of these products. The after-
market share of more than 50 percent
has a further strong preserving effect
on existing technology. It also has an
important stabilizing impact on sales,
making the lock industry relatively
independent of the cyclical fluctuations
of the construction industry.

GROWTH FACTORS

The trend towards
higher security

The lock business has seen a steady
increase in demand over a long period
of time. Through continuous develop-
ment of new lock products that meet
people’s needs to protect property and
information, the market is establishing
a basis for stable long-term organic
growth 2-3 percent higher than the
general rate of economic growth. The
assa abloy way of working supports
this trend.

In our high-tech society, which is
becoming ever more vulnerable to
breakdowns, the need to safeguard
public and commercial information is
also increasingly critical.

Electromechanical products
Electromechanical products are grow-
ing in importance. Sales have shown
a double-digit growth rate over a
number of years, much higher than for
traditional mechanical products. This
growth has been seen in access control,
in door audio and video systems, in
convenience solutions for hospitals,
department stores and public buildings
and in controllable panic exits that
combine security and safety.

While most electromechanical solu-
tions have universal application, success
in this area still requires adaptation to
local standards and lock dimensions
and integration with other mechanical
locking systems. Development costs for
the core electronic technologies are sig-
nificant, which benefits worldwide
players like assa abloy which can share
the costs among its many markets.

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 13

Taking the lead in security
and safety

New markets
In regions such as Asia, the Baltic
countries, the Middle East and Latin
America, an increasing proportion of
the population now enjoys a higher
standard of living, and hence their need
for security has also increased. These
groups are already demanding lock
products that are more advanced than
those manufactured locally, and this
has helped assa abloy to take the lead
in many of these newer markets.

COMPETITIVE SITUATION
Competition in the lock industry is
mostly local. The bigger players with
well-known brands and established
local presence and distribution arrange-
ments generally retain strong positions.
The smaller local players still play an
important role, but many are now
uncertain about their long-term ability
to compete with the international play-
ers like assa abloy, kaba-Unican and
Ingersoll Rand, who have the advantage
of being able to use their new technolo-
gies in many different markets with
local adaptations in the hotel lock sec-
tor, on the other hand, standards and
products are now global.

As the leading lock group in France,
assa abloy is actively engaged in the
ongoing public debate on security in
the home and safety in public places. In
the fall of 2000, assa abloy France
formed a company-wide association
known as l’Observatoire de la Sécurité.
Its main purpose is to gather and dis-
seminate information about security and
safety conditions and needs in France
with an aim to improving overall stan-
dards.

Alain Varenne, Strategic Develop-
ment Director at assa abloy in France
and Chairman of a Group task force
responsible for developing new Stan-
dards, explains some of the association’s
latest initiatives:

“Two surveys conducted for us in
the spring and the fall of 2001 by the
country’s leading polling organization,
sofres, showed clearly that the French
public are greatly interested both in
security questions at home and in safety
in public places (safe escape in emer-
gency and panic situations). The first
study showed that one out of every
four Frenchmen has directly or indi-
rectly been victim of a break-in in their
home. The figure increases to four in

ten in large urban areas such as Paris.
This has led to a growing sense of in-
security among the population and a
keen interest in improved security solu-
tions.

“The second survey showed that
people now have a greater awareness
of safety conditions all around them
when they shop, eat out, take public
transport, or attend sporting events
and the like. To address these concerns
our association is working on a num-
ber of fronts. We spread information
and share expertise through seminars,
press releases and printed material issu-
ed to security professionals, the media
and the general public. We are also
developing a website www.obs-delase-
curite.org where individuals and com-
panies can seek further information
about a specific security solution.”

Alain Varenne concludes: “Forming
this association has taught us a great
deal about conditions and concerns on
our own market. And as the leading
company in our field we feel it demon-
strates that assa abloy has a long-term
commitment to higher security and
safety.”

Alain Varenne, President, and Lionel Ligneau, General Secretary, of l’Observatoire de la Sécurité, the
new association formed by ASSA ABLOY’s French companies to promote awareness of security needs
and locking solutions.

A S S A A B L O Y / 2 0 0 1 • 1 3

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 14

Strategy and financial objectives:

Combining established local positions
with the strengths of a global player

assa abloy’s goal is to build a true
world-leading company in the area of
locking solutions through a three-step
strategy:
• Establish a global platform through
acquiring and developing companies
with locally established positions,
strong brands and significant installed
product bases as well as a good
recurring cash flow.

• Develop Group strength through
synergies, joint development projects
and expansion of our areas of expertise.
• Accelerate our organic growth through
our worldwide sales network by
offering products that meet rising
demands for security, including new
and more advanced technologies.

Focus on the lock segment
As the world’s leading lock company,
assa abloy is dedicated to the develop-
ment of locking solutions that will con-
tribute to new standards of security
throughout the world. These range
from conventional mechanical locks,
door hardware and security doors
through high-security masterkey systems
to state-of-the-art electromechanical
locks, cards and readers for access
control.

FOCUS ON THE MARKET
(cid:127) Growth projects
(cid:127) Cross-selling
(cid:127) Distribution channels

FOCUS ON EFFICIENCY
(cid:127) Benchmarking
(cid:127) Workflows / lead times
(cid:127) Delivery performance

CREATING A BASE
(cid:127) Organization
(cid:127) Basic routines
(cid:127) Core products

O FIT

G P R

R E A SIN

STEP-BY-STEP

14 • A S S A A B L O Y / 2 0 0 1

Because the lock business is assa
abloy’s only business, all companies
within the Group can benefit from a
rich transfer of know-how and from
extensive benchmarking activities
designed to spread best practices and
promote excellence.

Promoting the trend
to higher security
There is a growing need for security in
the world. All security work starts
with understanding risks and the con-
sequences of any incident. By providing
efficient locking solutions, assa abloy
aims to help make the world safer and
more secure, creating more freedom in
people’s lives. The development of new
products starts at this point. It is
carried out in close cooperation with
insurance companies, police,
fire
officials, end-user organizations and
other important decision-making bodies.
Group companies engage actively
in information and training initiatives
that target retailers, architects and
security officers as well as end-users,
giving them facts about the latest
products and security solutions. This
creates an important pulling effect for
the distributors involved as well as
overall market growth.

MANAGEMENT MODEL

Multi-domestic
There are many differences between
locks in different countries, and assa
abloy’s success as a global leader in
the lock industry is based on the close
relationship individual Group companies
enjoy with their customers at regional
and local level. Their understanding of
local needs, business arrangements and
distribution requirements, and their
responsiveness to these, remain para-

mount to success in the lock industry.
For this reason, the Group continues to
run a decentralized organization giving
full business responsibility to Country
Managers.

Major Country Managers are mem-
bers of Group Management, which
meets regularly. Group Vice Presidents
have regional responsibility for a num-
ber of countries and ensure that Group
methods are applied consistently.

Group companies serving the hotel
lock market, and the new identification
division, are organized separately from
the Group’s national lock companies in
order to respond more effectively to the
opportunities of these specialized inter-
national markets.

Developing Group strengths
In order to accommodate the Group’s
rapid expansion, the integration of
newly acquired companies is an activity
given the highest priority. Over the last
18 months, 30 new companies and
12,000 new employees have been
added to the Group. The Volvo Ocean
Race is playing a significant role in the
integration work. There is a perfect
geographical match between the Race
and the Group, and the project is an
important vehicle for uniting employees,
partners and customers.

The expanding Group is benefiting
from many synergies, which are further
strengthening the local companies’
positions. assa abloy’s global size and
unmatched knowledge base offer many
opportunities for benchmarking, cross-
learning and cross-selling, which great-
ly contribute to earnings improvement.
Joint development of new and more
advanced technologies, and joint pro-
duction of common products to ensure
economies of scale, are playing an
increasing role, and together with

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 15

cross-selling are reducing Time To
Market for new products. Purchasing is
also coordinated throughout the Group
and is achieving substantial cost savings
on raw materials and components.
Other synergies remain to be explored.

Wider ownership participation
assa abloy wants its employees to
participate in the company to the greatest
possible extent. A new eur 100 m
incentive program was launched in the
fall and more than 4,500 employees
chose to participate.

Management and employees have
an ownership intrest in shares and con-
vertibles corresponding to eur 250 m.

Group information
The Group’s rapid expansion calls for
a regular flow of information to keep
everyone in the picture. The Group in-
house magazine, assa abloy news, is
published at least four times a year in
twelve languages. It contains articles
on new products, initiatives and acqui-
sitions, communicates Group strategy
and development plans, and is current-
ly featuring the progress of the Volvo
Ocean Race and the individual Group
companies in the markets it is visiting.
The Group website and intranet are
other efficient information tools.

EXPANSION STRATEGY

Organic growth
Organic growth remains crucial to the
Group’s long-term success, and is
achieved by intensive development
efforts in both mature and new markets.
In markets where assa abloy is
well established, organic growth is
driven by gdp growth, increased sales
of products to meet rising security
needs, filling gaps in product port-

folios, expansion
into new sales
channels, and the introduction of new
technologies. The filling of gaps is a
targeted growth area. The products are
often available in other parts of the
Group to speed up this work.

In new markets where there are no
strong local players, new Group compa-
nies are established. assa abloy’s wide
product range, ownership of strong,
internationally respected brands and use
of new, more efficient forms of distribu-
tion all lead to steady organic growth.

Acquisitions
Acquisitions of leading companies are a
fast and highly effective way to enter
mature markets. They bring the Group
strong brands, an installed product
base with its recurring business, and
well established distribution channels.
Acquisitions are also a way to
expand the Group’s area of technical
expertise. The acquisition of hid in the
usa, the world’s leading manufacturer
of contactless cards and readers for
access control, illustrates this approach.

FINANCIAL OBJECTIVES
The strategy described above is designed
to continue the achievement of a satis-
factory earnings trend, with a focus on
earnings per share.

assa abloy’s financial goal is to
achieve a return of more than 20 per-
cent on capital employed. This goal was
set when the Group was formed in
1994. The goal is increasing automati-
cally because of the goodwill added
through the acquisitions made. The
return in 2001 was 9.7 percent. It is
expected that most of the improvement
required will be achieved through higher
margins, although there are obvious
opportunities for reducing the capital
employed.

A S S A A B L O Y / 2 0 0 1 • 1 5

Scholarship

In connection with the Volvo Ocean
Race a new scholarship has been
established to promote assa abloy’s
cross-learning and best practice philo-
sophy. Through a nomination process
amongst the employees, candidates
from all markets get the chance to visit
a Group company in another country
to learn and promote best practice.
Four such scholarships have been
awarded so far.

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 16

Management philosophy:

People make the difference

At assa abloy we believe that people
make the difference. This is why our
management approach is based on
trust, positive thinking and respect for
local conditions and cultures. Good
management is about creating an
atmosphere that encourages employees
to make the most of their individual
skills for the benefit of the whole
company. To achieve the best possible
working environment for everyone,
our management philosophy is based
on four cornerstones: Realism, Vision,
Courage and Ethics.

Realism means that everyone must
excel at their job. Managers must fully
understand the business, the market,
the products, the competition and all
business procedures. Management
must have a broad perspective, yet still
remember that answers are often found
in the details.

Our Vision is to be the true world
leader in locking solutions. Not only in
terms of company size, but in offering
our customers the best and most inno-
vative products and business concepts.

Courage is about spearheading
change. This means not just living with
change, but also initiating change

OUR CORNERSTONES

VISION
(cid:127) The true leading lock company
(cid:127) Leading in size and thought

REALISM
(cid:127) Know your
numbers
(cid:127) Seek the truth
(cid:127) Don’t be afraid
of details
(cid:127) Profit drives
growth

ETHICS
(cid:127) Believe in
the individual
(cid:127) Lead by
example
(cid:127) Confidence in
competence

PEOPLE MAKE THE DIFFERENCE

COURAGE
(cid:127) Lead change

16 • A S S A A B L O Y / 2 0 0 1

through creative innovation that is
based on solid know-how and experi-
ence.

Ethics are central to trust, creativity
and commitment and to success in the
international security marketplace.
High ethical standards attract the
finest people and motivate them to be
the best they can be.

Management training program
Our continued success and growth
depend on the skills and commitment
of every employee and every manager.
For this reason, skill enhancement, job
rotation and training programs are
conducted continuously at all levels
within the Group. Our sharp focus on
the lock market and active bench-
marking establish a good framework
for a valuable exchange of ideas and
experiences among assa abloy
employees from all over the world. As
part of this activity, the Group
conducts an annual ‘assa abloy mana-
gement program’ in which some 25
employees chosen from throughout the
Group have the opportunity to hone
their leadership skills. The program is
led by Group Management and is
based on real-life case studies from
assa abloy. To date more than 150
managers have participated in this pro-
gram.

200 Meeting
Every second year assa abloy arranges
a ‘200 Meeting’. The last meeting held
in September 2000 gathered the
Group’s most senior executives together
to exchange experience and ideas and
review and agree the Group’s vision,
objectives and strategies as well as set
the priorities for the coming two years.

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 17

Fast track to better integration

assa abloy’s participation in the Volvo
Ocean Race has provided a golden
opportunity to communicate the Group’s
management philosophy, objectives
and values to local company manage-
ment, employees and customers through-
out the world. At each stopover along
the route, Group Management has
been organizing 1-2 day seminars inter-
acting with local managers and key
staff to discuss sales and marketing
objectives, branding strategies and
three-year regional priorities.

Anna Bernsten, Vice President,
Corporate Communications, explains
some of the benefits of this Group-wide
interaction: “The Race has given us a
unique platform for communicating an

integrated message to our company
managers – some of them very new to
the Group following recent acquisi-
tions – about who we are and where
we are going. At the same time it has
given us in Group Management the
opportunity to increase our knowledge
and understanding of local conditions
and trends in the market.

“The stopover meetings also give
local management a wider international
perspective on performances and
trends in the lock industry as a whole.
These new insights can lead to more
effective local operation and strategies
as well as new sales initiatives.”

Anna Bernsten says the spirit of
teamwork among the crew onboard

the boat and all the many individuals
who support their efforts ashore has
relevance for the way assa abloy com-
panies work in their day-to-day activi-
ties. “There are many parallels between
work onboard the boat and our regular
operations. Onboard, the entire crew is
passionate, focused and dedicated in
making the boat go faster. Thanks to
their unique combination of skills it is
possible to achieve world-class perform-
ance when everyone works together
toward a common goal. The same atti-
tude is important for our employees
and assa abloy in our striving for true
leadership in the lock industry.”

The Asian ‘100 Meeting’ was preceded by regional management training and proved a good platform for cross-learning.

A S S A A B L O Y / 2 0 0 1 • 1 7

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 18

Environmental management philosophy:

To create environmentally
sound solutions

assa abloy strives for true leadership
of the lock industry. This means being
the biggest company not only in size
and profit but also in its thinking, i.e.
in the development of products, con-
cepts and marketing
ideas. The
Group’s focus on security and safety in
society, and its firm belief in people and
ethics, make environmental issues a
natural part of its daily work. Through
an environmental policy and global
implementation of the environmental
strategy, the aim of assa abloy is to
enhance performance by means of
loyal customers, strengthened brand
values and lower internal costs.

Benefits in innovation, costs,
marketing and reputation
Environmental issues can stimulate
new thinking and new ideas in every
aspect of the business. It may be in
the design of the product, in the
production or distribution processes or
in solving environmental problems for
the customers.

Because of ever stricter regulation,
costs related to activities having an
environmental impact will rise faster
than other costs, and proactive measures
to eliminate the problems will produce
commensurately greater savings.

Environmentally friendly initiatives
will also create or strengthen loyalty
for the assa abloy brands. Customers
with their own strong, sustainable
environmental strategies will favor the
assa abloy companies as suppliers.

As in many areas, scale is import-
ant if processes are to be run efficiently.
Through its size assa abloy can sup-
port the necessary investments, and
the volumes are large enough to pay
back these costs relatively quickly.

Reduce, reuse, recycle
The assa abloy companies are con-
tinously striving to reduce the material
content in their products. The con-
sumption of energy, water and process
resources is also in focus all the time.
Waste during production is minimized

through selection of methods that give
better yields.

Production scrap material is reused
whenever possible. Other materials and
process resources can often be cleaned
or treated for reuse. Machinery, tools
and containers that are no longer
needed in one Group factory may serve
well in another.

Materials not suitable for reuse are
sent for recycling if possible. These
include metals like brass, steel and alu-
minum and also packaging materials.

ISO 14001
assa abloy’s Group Management
decided several years ago to introduce
the iso 14001 Environmental Manage-
ment Standard in the Group companies.
Many companies have already achieved
iso 14001 certification and there are
numerous examples of successful
improvements in all areas. However, the
Group’s rapid growth through acquisi-
tions means there are many new Group
members still to embark on the process.

The majority of the ASSA ABLOY companies hold ISO 9001 or ISO 9002
quality certification.

Nine companies hold ISO 14001
environmental certification:

Eight companies are in
the process of achieving ISO 14001:

Ruko A/S
Abloy OY
IKON AG
FIX AB
Assa AB
Assa Industri AB
AB FAS Låsfabrik
TESA
Yale Security Products UK

FAB a.s.
C E Marshall
Medeco Security Locks, Inc.
TrioVing a.s.
Solid AB
Sargent Manufacturing
Vachette S.A.
Yale Italy

18 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 19

The road to
ISO 14001

Yale Security Products uk is the ninth
assa abloy Group company to achieve
certification under the iso 14001
Environmental Management Standard.
In summer 2000, as part of a con-
tinuing program to develop its business
systems, the company looked into the
actions required to achieve certification.
After initial site surveys, the company
committed itself in November 2000 to a
program scheduled to achieve certifica-
tion during 2001.

By the time that new, more detailed
company environmental policies had
in
been prepared and published
February 2001, improvement action
plans and the writing of a full
Environmental System Manual were
already well underway.

Throughout 2000, environmental
awareness training for all employees
was undertaken and teams were put in
place with the responsibility of contain-
ing spillages. Right across the business
people became involved in the initia-
tives, whether on housekeeping, chemical
storage, or recycling and waste reduc-
tion programs.

The environmental project fitted
well with the ongoing operational
improvement program called Opera-
tional Leadership which began in April
2001. In September the three-phase
assessment process by bsi, the uk
Standards body, began. This concluded
on 5 October 2001 with the recommen-
dation for registration.

Other Group companies in the uk
are planning to seek iso 14001 certifi-
cation during 2002.

A S S A A B L O Y / 2 0 0 1 • 1 9

95 percent of the water used in the surface finishing process at Guli Security Products in China is now recycled.

World-class wastewater
treatment

Since the introduction of a state-of-the-
art wastewater treatment process as
part of its new surface finishing plant
in 1998, Guli Security Products has led
the Chinese lock industry in environ-
mental protection standards. 95 per-
cent of the water used in the surface
finishing process is now recycled with-
in the facility as clean, high-quality
water, matching international and
Chinese standards. Concentrated solids
together with
remaining 5
the
percent water are treated chemically.
The precipitate is separated and dried
to brick form. The Chinese Environ-
mental Protection Bureau collects these
bricks for disposal. The liquid is fur-
ther treated to meet national standards
and discharged through the assigned
drainage system that eventually goes to
the sea.

Previously, surface finishing opera-
tions were outsourced. The supplier

used rudimentary equipment and pro-
cesses that limited Guli’s efforts to
upgrade product quality and environ-
mental protection. In 1998, taking a
long-term growth perspective, Guli
invested sek 80 m in a new world-class
surface finishing plant at Xiaolan
which consists of computer-controlled
plating and cleaning lines, flexible
polishing lines, an automatic lacquer-
ing line and the wastewater treatment
facilities. In 2001, the plant treated
over 200,000 tons of liquid or the equi-
valent of a million bathtubs of water.

The entire process of wastewater
control is now fully computerized in its
adjustment of pH values, replenish-
ment of chemicals, water recycling, and
solids extraction and compression.
Guli’s wastewater process has been
commended by the City of Xiaolan as
one of the Key National Engineering
Projects in Environmental Protection.

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 20

The trend towards higher security:

The importance of security is
increasing in an insecure world

All round the world urbanization is
continuing, and as more people accu-
mulate more valuables, they are finding
they have more and more to protect.
The tragedies
in New York and
Washington in September sadly dis-
played to all of us the importance of
giving security matters the right atten-
tion. Even in these devastating circum-
stances, the majority of the people
involved managed to escape in time
due to rigorous security planning and
regular safety drills.

Soft values are the
most precious
In monetary terms many of our pos-
sessions can be replaced. Insurance
policies cover these losses. What are
hard to replace are the ‘soft values’.
For individuals, these are the memories
associated with stolen objects, our feel-
ing of integrity, and our family’s sense
of security in their own home. For
companies too the most sensitive valu-
ables have become the intangibles:
your brand, your reliability, your
customer base and customer informa-
tion, the systems that control your pro-
duction flow. All these are hard to set a
value on. And the only sure way to
protect them is to stop the intruder at
the door – outside.

Security, safety, convenience
and design
The primary need is security. In the
hierarchy of human needs put forward
by the psychologist Abraham Maslow,
a sense of security comes next after the
most basic physiological needs for air,
water and food.

Safety is not in principle opposed to
security, but it very often presents con-
tradictory requirements. You need to
keep unwanted visitors away, but it

20 • A S S A A B L O Y / 2 0 0 1

must be easy for everyone inside to get
out in an emergency. With traditional
mechanical means this inherent conflict
is not always easy to resolve.

Another conflict is between security
and convenience. Good security may
be too much trouble. A door with a
good lock held open by a wedge leads
you back to square one – and no secu-
rity at all.

A fourth element to consider is
design. A good security solution – and
even more a good solution combining
security and safety – may look very ugly!
Design is becoming an increasingly
important issue for security and safety
devices.

Electromechanical products
Electromechanical solutions are often
the answer to these contradictions.
They can integrate good security and
good safety by means of alarm connec-
tions and time-controlled exits. Access
control, door automatics, door closers
and door monitoring devices can help
to keep doors closed and locked when
they should be, but easy to open when
an emergency arises. At the same time
the electric components make the prod-
ucts easy to use, and their small size
helps to achieve good-looking designs.
The market for electromechanical
lock products is growing faster than
the lock market as a whole. It has
shown double-digit growth for some
years and is estimated today at usd 1.5
to 2 billion. assa abloy is represented in
all sectors of the worldwide electrome-
chanical market and its current market
share is estimated at around 20 percent.
No other Group offers such a wide
selection of products. assa abloy’s
range includes releasing and locking
products such as electric strikes, mag-
nets and motorized and solenoid locks.

It produces identification and access
control products based, for example,
on electronic cylinders (cliq technol-
ogy) or radio-frequency identification
(proximity). assa abloy companies are
also active in new technologies like
smart cards and biometric identifica-
tion devices. Modern hotel locks also
form part of the electromechanical
market segment.

The professional market for
electromechanical products
The biggest single application area is
access control. Another fast-growing
area is door communication systems
using surveillance cameras (cctv) or a
voice link and giving remote personal
control of opening. The latest solutions
are more affordable than before and
are used increasingly in apartment
buildings around the world, in smaller
companies and even in private homes.
assa abloy’s vision for the profes-
sional market for electromechanical
products is:
To provide locally adapted products
offering security, safety and convenience
in all major markets. These include
communicating,
intelligent compo-
nents for access control systems – for
which you just add system structure
and software – as well as intelligent
masterkeying employing the CLIQ
technology.

The residential lock market –
a sleeping giant?
Modern electromechanical hotel locks
were born with VingCard about two
decades ago. Today they are the
industry standard. Although they are
ten times as expensive as traditional
locks and must be upgraded two or
three times as often, they meet a true
customer need for the hotel guest.

31998_ASSA_Fram_E_DS 02-03-14 13.13 Sida 21

Launching a new
era in locking

The launch of the new cliq technology
was awaited with much anticipation by
the entire assa abloy group. It was
after all the first truly international
development project that Group com-
panies had ever been engaged in.
Moreover, cliq represented a revo-
lutionary advance for the industry as a
whole. Sweden and Norway were
chosen as the markets for the first
launch in the spring of 2001. cliq will
subsequently be rolled out in other
European countries and the rest of the
world over a period of several years.

Months before the market launch,
principal customers in the two countries
were provided with a variety of infor-
mation materials. Some 150 managers
from 50 leading Swedish locksmiths
and wholesalers attended a seminar in
Iceland where they received detailed
technical, product and marketing infor-
mation on cliq through seminars and
workshops.

Kim Rolandsen, a project manager for
cliq at Assa ab, says: “The response
and enthusiasm for this new technology
among our customers have far exceeded
our expectations. We anticipate that
cliq will amount to 10-15 percent of
our total sales in Sweden alone within
the next 1-3 years.” Kim says the deve-
lopment and subsequent manufactu-
ring of cliq have proved a formidable
task and a valuable learning experience
for everyone involved.

“An advanced technology like cliq
requires many components to be inte-
grated. Coordinating and timing the
supply of electronics and software
from sometimes distant outside suppli-
ers with our own production of the
mechanical parts has proved challeng-
ing. It has given us invaluable insights
into how to manage a global coopera-
tion on this scale really effectively,”
concludes Kim Rolandsen.

Likewise,
remotely
the modern
controlled motorized car lock has been
around for less than two decades. Now
it is almost a commodity found in most
new cars. Again, it costs ten times as
much, but it meets a true customer
need for convenient security.

Residential electromechanical locks
have just been born. The first sample
products are on the market. But home-
owners have not yet discovered them
and their benefits are not yet well
understood. At present a residential
lock is changed every 30 years on aver-
age, and the replacement product is
normally much the same. But the
coming of ‘smart’ homes, and new
lifestyles where people spend less time
at home and are away more irregularly
for work, travel or holidays, are
beginning to trigger a demand for more
sophisticated security products.

At present, like alarms, locks are
not a top priority on most consumers’
buying list. This is the challenge – and
the opportunity. assa abloy’s vision
for the residential market is:
Through providing locking concepts
that are affordable, secure, safe and
convenient, to create a market for
intelligent lock products at the consu-
mer level.

ASSA ABLOY’S CLIQ technology, launched during the year in a number of products in different markets,
is the Group’s first technology platform resulting from multi-company development.

A S S A A B L O Y / 2 0 0 1 • 2 1

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 22

ASSA ABLOY Brand Platform:

Developing our brand assets

assa abloy’s many acquisitions in
recent years have filled a number of
geographical gaps in the Group’s hold-
ings. As a result, the assa abloy group
holds a unique portfolio of strong
brands that represent a priceless asset.
Together with the assa abloy group
brand, these brands strengthen market-
ing efforts and help to maximize sales.
As part of the integration of the Group,
a branding strategy has been developed
and is now being implemented.

Group-wide brand strategy
The foundation for this strategy is the
many local companies with their indi-
vidual brands. In many cases, these
companies have been active for hun-
dreds of years and have built up a sub-
stantial installed base with recurrent
revenue. Many of the brands also have
very high recognition locally.

The assa abloy brand serves as an
endorsement to the local brands. It
supports them by conveying the
Group’s global strengths, i.e. world-
leading
professional
management, economy of scale and
financial resources.

technology,

OUR BRAND STRATEGY

Each brand has
unique values

Group company brands

The ASSA ABLOY endorsement
adds global strength

22 • A S S A A B L O Y / 2 0 0 1

THE ASSA ABLOY
THE ASSA ABLOY
BRAND BOOK
BRAND BOOK
BUILDING OUR BRANDS
BUILDING OUR BRANDS

The Corporate Tagline for the assa
abloy brand is ‘The World’s Leading
Lock Group’. In the Group’s efforts to
increase knowledge of its global lead-
ership in locking solutions, the Volvo
Ocean Race has proved to be an in-
valuable vehicle, both among custo-
mers and distribution partners and
among the staff of all the Group’s
companies.

The Brand Platform
Simultaneously, the Group has devel-
oped a Brand Platform for the assa
abloy brand. This is a short, formal
document which clarifies the Group’s
strategic purpose and articulates what
the brand represents. The document
concludes that ‘By providing the best
locking solutions available, the assa
abloy group makes the world safer
and more secure, creating more free-
dom in people’s lives’. This is crystal-

lized in the concept ‘Unlock Your Life’
which will form the basis for all future
market communication.

Step-by-step implementation
The brand strategies are being imple-
mented in a cascading process starting
from the center. In the past few months,
local Brand Champions have been
appointed at Group companies around
the world who will carry the process
forward among their colleagues. The
ambition is that every Group employee
should understand that a brand con-
tains a promise made to the customer,
and that it is everyone’s duty to live up
to that promise.

The first to be reviewed was the
Yale brand, for which a Brand Platform
has been developed during the year.
Over time, the process will involve all
of the Group’s brands.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 23

CORPORATE IDENTITY
AND ENDORSEMENT STRATEGY

C
O
R
P
O
R
A
T
E

D
E
N
T
T
Y
A
N
D
E
N
D
O
R
S
E
M
E
N

BRAND
MANAGEMENT
MANUAL

An ASSA ABLOY Group brand

Unlocking the full potential
of the Yale brand

All brands within the assa abloy
group are important. But by any stan-
dards the Yale brand, which the Group
acquired through the acquisition of
Yale Intruder Security in August 2000,
is a particularly important brand for
the entire lock industry.

Yale is without doubt the best-
known name in the worldwide lock
industry and is one of the oldest inter-
national brands in any field. Its history
stretches back to 1840, when Linus
Yale Sr started the business. In 1847,
he opened the Yale lock shop in
Newport, New York selling hand-
made bank locks. His son, Linus Yale
Jr, later made several crucial technical
advances on which modern locks are
still based, setting up his own opera-
tion in 1855, then teaming up with
Philadelphia engineer Henry R Towne
and establishing the original Yale &
Towne company in 1868.

Today, Yale continues to enjoy an
excellent image, and is known virtual-
ly everywhere in the world where lock-
ing solutions are needed. The acquired
Yale companies have given assa abloy
market leadership in several countries
and strengthened its presence in many
others.

To maximize the great potential that
the Yale brand represents and manage
its strengths effectively, assa abloy
created a Yale Brand Management
Manual during 2001. The work of pre-
paring this formal document extended
over many months and involved people
representing all the various interests of
Group companies around the world.

Roy Webster, the Yale Brand
Manager, explains: “The Manual guides
Group companies in all activities
related to the Yale brand. These
range from brand ownership, market
positioning and product range and
quality to the vital question of graphi-
cal and typographical consistency – the
rules for using the Yale logotype and its
new tagline ‘The world’s favorite lock’
on letterheads, literature, exhibition
stands and so on.

“Our vision for Yale is to capture
all of its past heritage and re-energize it
for the future. The Yale brand should
offer peace of mind to consumers
around the world by providing the
most reliable, accessible residential
locking solutions available anywhere.”

The Yale Brand Champions bring local knowledge and experience from around the world to the task of
strengthening the global role of the Yale brand.

A S S A A B L O Y / 2 0 0 1 • 2 3

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 24

ASSA ABLOY technology platforms:

Building and sharing across the Group

assa abloy’s cliq technology, launched
during the year in a number of prod-
ucts in different markets, represents the
Group’s first common technology plat-
form resulting from multi-company
development. The cliq technology is
based on highly miniaturized electronics
that can be placed inside the core of
a lock cylinder to make it a really
competitive product. cliq has all the
intelligence to make the cylinder itself
intelligent. It permits high-security
authentication using a powerful algo-
rithm; it can accept or deny key entry
depending on time of day; it can
register all accepted and denied entries;
and it can terminate the acceptance of,
for example, a lost key. The whole
functionality is supported by the power
of a battery in the key: no power is
needed in the cylinder. All these func-
tions can be combined fully with the
various mechanical coding systems
used in the Group’s lock cylinders.

cliq is both the first platform
designed jointly from the outset and
the first electromechanical platform to
be used by many different Group com-
panies. Previously, important mechani-
cal platforms designed by one company
have subsequently spread throughout
the Group. For example, the Twin
lock-cylinder technology developed by
Assa in Sweden is now used by many
companies around the world.

Listening and leading
It is often said that the customer doesn’t
know he needs a product until he sees it.
But if you can’t ask the customer
what he needs, how can you then make
the products of tomorrow? What the
customer certainly does know about
are the problems he is experiencing
with today’s products. One important
responsibility of a progressive and

24 • A S S A A B L O Y / 2 0 0 1

groups extending across country and
company borders, across disciplines
and involving many external contacts.
The aim is to understand the present
market and its problems and thereby to
conceive the next generation of products.

A platform for access control
Installing access control can improve
security while retaining convenience.

Such applications are increasing in
popularity, but are limited by their cost
and complication. Even though the
components used have become cheaper,
the labor effort, planning, installation,
cabling, customer training and mainten-
ance still add up to a significant sum. A
typical cost is usd 2-3,000 per door
installed, sometimes even more.

With its wide market presence in
products for the door environment,
assa abloy has identified an opportu-
nity to create a hardware platform for
access control based on components
that fit together easily. By offering a
minimum of planning and design work
and simple installation, it should be
possible to bring down the cost per
door and thereby to expand the market
for access control.

Patents
The patent portfolio of assa abloy and
its many subsidiaries continues to
grow. Patents for the protection of key
blanks remain one important field,
serving the purpose of increasing
security for customers. The r&d work
of the Group companies also creates
many significant technical innovations
every year, and more and more of the
patents applied for are in the electro-
mechanical field, a sign of the growing
importance of this area.

customer-oriented Group is to keep its
ears open and listen to everything the
customer has to say – whether it be
complaints, compliments or new ideas.
All Group companies focus on
doing this, and the Group must then
collate all the feedback in its joint
efforts to create future products and
platforms that will meet the needs
identified. To lead the lock business
forward, assa abloy is increasing its
activities in market studies and market
research with the aim of understanding
today’s problems and defining the
products of tomorrow.

R&D and generation planning
What’s next? What will doors look like
in ten years’ time? Where is access con-
trol heading? What will the residential
lock look like in five or ten years?
Based on best knowledge and the
inputs received, tentative plans are
made on a market by market basis.
Plans are discussed and compared.
What are the common elements? What
are the common needs? Could some
product platforms be shared? Could
efficiency be increased by working
together
fields? These
some
questions come up time and time again.
In some cases it is obvious that a
need is purely local. But in many others
the need is general, even if local imple-
mentations are required to meet local
conditions and local standards.
To deal with such issues, assa abloy
has several councils and working

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 25

ASSA ABLOY operations:

Achieving
faster deliveries

assa abloy’s long-term target is to be
so efficient that most products can be
manufactured to order within the deli-
very lead-time specified by the custo-
mer. The Group’s operational model
focuses on time, and the first aim is to
locate and identify the current causes
of delays, which may include quality
faults, long machine set-up times or
unreliable suppliers. As each problem
is solved, the cause of the next time-
critical delay becomes apparent. Lead-
times and throughput times can be
progressively brought down.

To assist this process, the Group
has developed stock-control software
based on coverage time rather than
quantity. Stefan Tisell, who designed
the program, says: “Some of our com-
panies may have up to 10,000 types of
products and components and many
different suppliers. To maintain an
overview of the whole complex situa-
tion, they update order volumes and
stock levels for each item every day,
and the program then calculates what
manufacturing or purchase orders are
needed to keep inventories in balance.”
The program also provides a com-
prehensive set of inventory analyses,
including division by supplier and
identifying slow-moving items and un-
realistic minimum order requirements.
One of the first Group companies to
adopt the Replenishment Model soft-
ware was Lips in the Netherlands. The
company changed to a profit-center
structure at the same time. The results
included a dramatic improvement in
order fill rate – delivering the right items
in the right quantities and on time.

Lips Operations Director Ben
Schuring comments: “We analyzed all
steps of each process and started
measuring order fill rate, order backlog
time each day.
and

throughput

Material availability is critical to on-
time delivery, and the Replenishment
Model software lets us see what we need
to make or buy to fulfill individual
orders.”

“Only the most urgent (next-day)
orders will be supplied from stock,”
says Stefan Tisell. “This will keep our

customers happy while significantly
reducing capital tied up in inventories
and storage space.”

The software has a simple graphical
user interface and can be directly linked
to assa abloy’s existing information
database. More than 20 Group compa-
nies are using it and others plan to do so.

Stefan Tisell demonstrates the Replenishment Model software to Ben Schuring of Lips in the Netherlands.
The company was one of the first in the Group to adopt the program and has achieved a dramatic impro-
vement in its order fill rate.

A S S A A B L O Y / 2 0 0 1 • 2 5

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 26

Integration Project – Volvo Ocean Race:

Making the boat go faster –
inspiration and unification

employees of the companies we had
acquired. We needed a fast and effective
way to communicate our common
Group goals, visions, values and
strategies. Not only to distributors,
customers and investors and our own
upper and middle management, but
throughout our entire organization, to
our workers in the office, on the shop
floor and in the sales force. We found
the answer in the Volvo Ocean Race.”

Framework for integration
“This grueling round-the-world race,
which lasts nine months and is con-
tested over 32,000 nautical miles,
matches our Group’s geographical
presence and markets perfectly. It pro-
vides an ideal framework for our inte-
gration work both internally, through
motivational competitions at company
level, and externally with our custom-
ers. At each of the nine ports from
Southampton to Kiel we are holding
management meetings with our local
companies, and getting together with
customers to discuss the local lock
market, their needs and how we can
best support their objectives. We do all
this in a spirit of goodwill and fun
against the backdrop of this very
demanding sailing competition which
itself highlights the importance of
excellence through teamwork.

“In our bid to win the Volvo Ocean
Race we constantly ask ourselves:
‘How can we make the boat go
faster?’. And we’ve adopted the same
slogan to motivate our own workforce
in their day-to-day activities. Whether
at sea or on land the answer is the
same. Hard dedicated work that strives
for perfection in everything we do. This
calls for seeking out new innovative
technologies that will exceed our
customers’ expectations and provide

easy-to-use, reliable security solutions
for people and property. It also means
reducing lead times, cutting costs and
reducing excess inventory.”

Awareness and pride
“In the run-up to the start of the Race
at Southampton on 23 September 2001,
all our Group companies around
the world organized seminars, local
competitions and other activities to
inform employees and customers about
assa abloy’s participation in the Race.
These various activities served as an
ideal opportunity to build awareness
about the assa abloy group and to
communicate its core values and ways
of working together as a unified team.
“As the Race drew ever nearer,
expectations rose. People felt a sense of
belonging. A team spirit. Traveling to
many of our companies around the
world I could see for myself how
employees and managers felt increased
interest and pride about the upcoming
event. They had a far better apprecia-
tion and understanding of what it
meant to be a part of a leading global
company. This was half the battle.

“Even part way through the Race
we can note a remarkable upswing in
Group awareness and pride. No mat-
ter which boat crosses the finish line
first in Kiel, Germany on 9 June
2002,” Anna Bernsten says, “I think
we can confidently say that we have
already won the most important race
of all. We can see how new and old
companies within our Group now feel
they are truly part of the assa abloy
family. By working together we have
succeeded in making our boat go
faster.”

Since the assa abloy group was cre-
ated in 1994 it has rapidly grown into
the acknowledged world leader in
locking solutions, with more than 100
companies operating in 40 countries
throughout the world. This remark-
able expansion has been achieved
through a combination of organic
growth from within and the ambitious
acquisition of leading lock companies
on key markets around the world.

By far the biggest acquisition in the
Group’s short history was the purchase
of Yale Intruder Security in August
2000. This increased the size of the
Group by 50 percent overnight. To
make the most of the resulting power-
house of leading lock companies and
their global and local brands, immediate
steps were needed to begin integrating
the geographically diverse network of
companies into a unified global organi-
zation.

Anna Bernsten, Vice President,
Corporate Communications, who is
responsible for the integration project,
explains this formidable challenge:
“We faced an enormous task. assa
abloy was the world’s leading lock
group, but global awareness of our
company and what we stood for was
very low even among many of the

26 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 27

z
e
n
i
t
r
a
M
y
r
r
e
h
T
©

At the ASSA ABLOY race village at each stopover, customers, distributors, employees and the general public intermingle, enjoying the event while absorbing
something of the spirit and pride of ‘The World’s Leading Lock Group’.

Making the most of the stopover

Months before the 60-foot ‘assa abloy’
racing yacht left Southampton on her
nine-leg round-the-world race over
32,000 nautical miles, thousands of
assa abloy employees in all parts of
the world were engaged in a parallel
race of their own. One country where
this effort was both rewarding and
successful was South Africa.

Kelly Landro, a Volvo Ocean Race
‘champion’ at the Yale-Union factory
near Johannesburg, helped coordinate
a range of activities designed to get
people involved and excited, and to
promote excellence at work. “We
launched an internal, performance-
based competition where employees
were assigned points – which we called
‘nautical miles’ – for attendance,
operations, performance, efficiency,

planning or purchasing, depending on
which department they worked for.”

These ‘miles’ were then exchanged
for in-house lottery coupons and a
chance to win prizes.

John Middleton, President of assa
abloy south africa, says that in addi-
tion to increasing a sense of pride and
identification with their local brands,
and with assa abloy as a Group, the
team spirit stimulated by the project
also served as an enabler for all
employees to feel equally important at
all levels in the company.

Other competitions associated with
the stopover were directed at customers
and consumers. Customers competed
on monthly sales growth figures, while
every consumer who purchased a Yale
Do-It-Yourself package had the chance

to win a weekend in Cape Town.

In addition, local management
meetings were held in connection with
the stopover. And colleagues, custo-
mers and consumers alike were
treated to a number of exciting out-
ings including a charter boat cruise to
meet up with ‘assa abloy’ when she
sailed into Cape Town harbor.

A S S A A B L O Y / 2 0 0 1 • 2 7

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 28

Scandinavia:

Steady growth helped by the
launch of new technology

Market and market trends

The Scandinavian operations continued
to show stable growth during 2001,
with Sweden stronger than Norway
and Denmark. In 2002 the Norwegian
market in particular is expected to
show an upswing.

is
The region’s steady growth
founded on a comprehensive portfolio
of
locally manufactured products,
complemented by increased sales of
products from other Group companies.
During the year the Scandinavian
companies collaborated in launching an
range of Do-It-Yourself
updated
products, with local profiling in each
country.

However, the year’s most signifi-
cant event was the development and
launch of the new cliq lock technology,
which offers customers
the best
features of mechanical locking with
added flexibility and greater security
latest advanced
derived from the
electronics. The technology is equally
applicable to new and existing installa-
tions without adding to installation
costs.

During the year the Grorud door-
hardware plant in Norway was closed
and the business transferred to other
Scandinavian companies and to assa
abloy’s new Romanian company
Urbis International.

Awareness about assa abloy
throughout Scandinavia has been
increased by a number of activities
connected with the Volvo Ocean Race
and the forthcoming stopover
in
Gothenburg.

SWEDEN
assa abloy’s Swedish operations com-
prise Assa, Assa Industri, fix, fas
Låsfabrik, Solid and the locksmith’s
wholesaler aki låsgrossisten.

28 • A S S A A B L O Y / 2 0 0 1

Assa Industri and fix manufacture and
market products for oem customers,
mainly in Scandinavia. Assa Industri
manufactures hinges, lock cases and
industrial cylinder locks, while fix pro-
duces multipoint locks and door and
window hardware. fas Låsfabrik
manufactures and markets mortise
deadlocks and other locks for private
homes and for safes.

Assa and Solid serve the commercial
construction and consumer markets.
Solid develops and markets access con-
trol systems, while Assa manufactures
and markets security systems based on
a comprehensive range of mechanical
and electromechanical lock products.
The Assa Security Master (asm) specifi-
cation software has been upgraded with
new functions designed to encourage
sales of complete door hardware
packages.

Individual locksmiths form the
main distribution channel for products
by Assa and Solid. As electromechanical
products continue to grow in importance,
which naturally affects distribution,
relationships with locksmiths were
developed and strengthened during 2001.
The year saw a continued slow
increase in building activity, focused
primarily on the major cities and espe-
cially on southern Sweden.

The launch during 2001 of the new
generation of lock cylinders using cliq
technology represents a breakthrough
for products that combine mechanical
and electronic features to maximum
advantage, and will have the greatest
possible significance for the cylinder
market.

The new Do-It-Yourself display
panel for customers has achieved great
success in both traditional building
supply stores and specialized lock
outlets.

NORWAY
assa abloy’s organization in Norway
consists of TrioVing and Låsgruppen.
TrioVing is Norway’s leading lock
manufacturer, selling to the construc-
tion industry, oem and retrofit mar-
kets. During 2001 TrioVing tendered
successfully for a number of major
start-up projects. These included the
new super-luxury residential ship ‘The
World’ and the leading telephone
company Telenor’s new headquarters
at Fornebu. The development of
Fornebu, formerly Oslo’s main airport,
involves several phases of expansion.

The launch of the new cliq lock
technology has been received very posi-
tively in Norway and has created a
strong marketing base for all the
Group’s high-security products.

The expanded Do-It-Yourself range
was also well received and produced
significant sales growth during the
fourth quarter of 2001.

Låsgruppen is a group of five lock-
smith retailers which, together with
other leading locksmiths, make up the
TrioVing Security Centers group. These
centers have a leading role in developing

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 29

Scandinavia:
Consolidated sales by companies
in the Scandinavian countries in 2001
amounted to SEK 1,971 M (1,889),
representing organic growth of 2 percent.

GROUP VICE PRESIDENT ASSA ABLOY:
HANS JOHANSSON

SWEDEN
Assa AB
Manufactures and markets mechanical
and electromechanical lock products.
President: Stellan Svensson
Assa Industri AB
Manufactures and markets lock cases, hinges
and cabinet locks for industrial customers.
President: Hans Johansson
AB FAS Låsfabrik
Market leader in mortise deadlocks.
President: Ulf Petersson
FIX AB
Manufactures and markets espagnolettes and fixtures.
President: Jerry Pull
Solid AB
Markets electromechanical lock products
under the ABLOY and SOLID brand names.
President: John Hedesand
AKI Låsgrossisten AB
One of Sweden's leading locksmith's wholesalers.
President: Harry Grabinsky

Another company in the Swedish organization is
Assa Portuguesa LDA.

NORWAY
Låsgruppen a.s.
Markets and sells locks and fittings.
President: Bjørn Haugsvaer
TrioVing a.s.
Total supplier of locks and security products
for the Norwegian market.
President: Tor-Arne Jensen

DENMARK
Ruko A/S
Total supplier of locks and security products
for the Danish market.
President: Carl Trock
FIX A/S
Sells ASSA ABLOY products to the Danish
door and window industry.
President: Keld Madsen
M. Sloth & Co. A/S
One of Denmark’s leading locksmith’s wholesalers.
President: Poul Sloth

Trends

SEK M

Sales

Average no.
of employees

2001

2000

1999

1998

1997

1,971 1,889

1,777 1,701 1,660

1,765 1,726

1,651

1,657 1,702

Sales by product group

Security doors
and fittings, 21%

Industrial
locks, 4%

Electromechanical
locks and electronic
locks, 16%

Mechanical locks,
lock systems and
accessories, 59%

The constant arrivals and departures among several hundred small IT businesses renting office/workshop
units at Ronneby in Sweden present a security nightmare for the landlord Kjell Svensson at Soft Center
Fastighets AB. To avoid changing the locks every time, 25 ASSA Twin Combi cylinders have been
upgraded, for evaluation, with ASSA ABLOY’s new CLIQ technology, which allows them to be repro-
grammed using software.

all sales of Group products to the
Danish door and window industry.

In 2001 the Danish market was
marked by changing conditions and
structures and increased competition.
During the year Ruko has worked to
intensify and to take advantage of the
resources within the Sloth organization.
The integration process required major
effort, but is now ready to produce the
expected benefits in 2002.

The new cliq lock technology was
launched in Denmark during 2001
and, helped by the installed base of
lock products meeting the highest secu-
rity classification, is creating substan-
tial added value for customers.

fix has reported some notable suc-
cesses during the year, including a new
slot-guided hinge which has created a
new quality standard for the market.

the market for high-security products
and in encouraging skilled installation
and outstanding service. In 2001
in winning
Låsgruppen succeeded
some
contracts with
customers covering the whole country.

important

DENMARK
assa abloy’s organization in Denmark
consists of the lock manufacturer
Ruko and its subsidiaries Ruko Service
and fix. M. Sloth & Co was fully inte-
grated into the Ruko organization
during 2001.

Ruko is the leading total supplier
to the lock and security market in
Denmark. Mechanical lock systems
based on the Combi high-security
cylinder form the company’s core busi-
ness and meet the Danish Standard’s
highest security classification. Ruko
also leads the trend toward higher
security in Denmark with products
such as electromechanical locks and
electronic access control systems, which
are steadily growing in importance.

Ruko Service is responsible for
after-sales services, while fix handles

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 30

Finland:

Export growth compensates
for a flat domestic market

Operations of assa abloy in Finland
consist of Abloy and Björkboda Lås.
Abloy manufactures and markets
mechanical and electromechanical
locks, door automatics, door closers,
fire-door closing systems, handles
and fittings. Björkboda Lås produces
lock cases for interior doors, cylinder
lock cases and high-security lever locks.

Market and market trends
Abloy’s exports continued to grow in
2001. Sales developed rapidly
in
eastern Europe, especially in Russia,
the Baltic countries and the Czech
Republic. Exports to western Europe
showed strong increases, especially
in the uk and France, although
Scandinavia stagnated. The North and
South American market areas grew,
and in Asia sales increased strongly,
especially in the northern part of the
continent. The rapidly expanded inter-
national network of assa abloy group
companies with
their marketing
resources offers good opportunities
for further developing sales of abloy
products.

Exports of abloy lock cases made
by Björkboda Lås to the Baltic coun-
tries, Russia and Ukraine developed
well due to local representatives’ good
hold on the market. The uk market is
also promising thanks to the abloy
trademark, which is already well
known there. But efforts to develop
sales of lock cases to other eastern
European countries including Poland,
the Czech Republic and Hungary have
met with little success so far.

On the home market sales re-
mained at the same level as in 2000
despite the declining construction mar-
ket. This decline is expected to continue
in 2002. Abloy managed to maintain
its sales levels thanks to an increase in

30 • A S S A A B L O Y / 2 0 0 1

door-closer sales – achieved through
improved delivery performance and
service – and to improved sales of
electromechanical
lock cases and
industrial locking.

In the fall of 2001 Abloy noted a
global trend towards a split in the
lock market. In general the new-
construction market weakened in the
turmoil following the terrorist attacks
in New York in September, but the
high-security market and the retrofit
market grew. The features of abloy
products mean that the company’s
export strategy is focused mainly on
the high-security and retrofit markets.
Continuing strong development of
the international market for abloy
products is therefore expected.

The trend towards
higher security
International and domestic customers
alike are becoming more and more
demanding of high security. To offer
solutions for this growing high-security
market, Abloy launched several new
products during the year. In the spring,
a new abloy high-security padlock
range was launched to both domestic
and international markets. In the
second half of the year a new-generation
patented high-security disk cylinder,
abloy protec, was launched on selected
markets; and a new-generation electric
lock range with handle control was
introduced in the fall. In addition, new
exit products created cooperatively by
Abloy and jpm in France were launched
in Finland during the year.

The abloy project-hardware prod-
uct range was strengthened with two
unique new families of architectural
hardware designs, abloy interia and
abloy forma.

In the fall of 2001 Abloy started a

campaign to replace out-of-date locking
in residential buildings and business
premises in Finland with more secure
new solutions. The campaign will cont-
inue in 2002 and aims to replace falling
sales volumes from the new-construction
market with similar volumes from the
retrofit market.

One of the most important events
of 2001 was the establishment of a new
business unit, Door Automatics, in
October. The new unit will focus
wholly on the Door Automatics busi-
ness – previously part of the Electro-
mechanical Locking business unit –
and will allow efficient development of
the international market for automated
door environments.

Existing cooperation with the
authorized abloy dealer network of
locksmiths was intensified by comple-
menting the company’s own product
range with magnetic locks and electric
strikes from other Group companies.
The internal education program in
customer relations management for the
Abloy sales personnel begun in year
2000 was
in 2001.
completed
Continuous product development,
training and close communication with
customers have enabled Abloy to
attract the industry’s most professional
distribution partners to consult and
serve end-users during sales, installa-
tion and after-sales service.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 31

Finland:
Sales by companies in the Finnish
organization in 2001 amounted to
SEK 1,165 M (1,060), representing
organic growth of 2 percent.

GROUP VICE PRESIDENT ASSA ABLOY:
MATTI VIRTAALA

Manager: Kari Mononen
Manager: Juha Pikkarainen

Manager: Markku Kuivalainen
Manager: Jaakko Meriläinen
Manager: Jari Toivanen
Manager: Kari Mononen

Abloy Oy
Manufactures and markets lock cylinders, mechanical
and electromechanical locks, door closers, door auto-
matics and architectural hardware.
President: Matti Virtaala
Abloy Oy’s business units
Construction Locks
Industrial Locks
Electromechanical Locks Manager: Matti Ahola
Architectural Hardware Manager: Kyösti Sormunen
Door Closers
Door Automatics
Exports
Domestic Market
Abloy Oy Eesti Filiaal
Markets and sells ABLOY products
in the Baltic countries.
Manager: Ahti Ovaskainen
Abloy Oy Representative Office Russia
Markets and sells ABLOY products in Russia.
Manager: Lauri Honka
Abloy Oy Representative Office Ukraine
Markets and sells ABLOY products in Ukraine.
Manager: Volodymyr Livinsky
Björkboda Lås Oy Ab
Manufactures and markets lock cases.
President: Henry Engblom

Trends

SEK M

Sales

Average no.
of employees

2001

2000

1999

1998

1997

1,165 1,060

898

811

744

1,150 1,123

1,020

970

905

Sales by product group

Security doors
and fittings, 15%

Industrial locks, 9%

Electromechanical
locks and electronic
locks, 16%

Mechanical locks,
lock systems and
accessories, 60%

Saku Suurhall in Tallinn, Estonia, the largest concert hall and indoor sports venue in the Baltic countries,
will host the Eurovision Song Contest in 2002. The hall is comprehensively equipped with ABLOY door
closers, architectural hardware and high-security door locks.

technology products such as electro-
mechanical locks, door automatics,
door closers, padlocks and lock cases
to Group companies.

The Architectural Hardware busi-
ness unit continued its cooperation
with the Scandinavian Group compa-
nies on door handles and espagnolette
handles. The new abloy range of pull
handles offers good potential for
broader cooperation in the future.

During 2001, Björkboda Lås was
actively involved in integration pro-
jects in Scandinavia. In Sweden, fas’s
manufacture of lock cases for interior
doors will be gradually replaced by the
corresponding abloy range. On the
other hand, sales of abloy mechanical
lock cases in Sweden have almost
ceased and been replaced by the corre-
sponding assa range.

Collaborative marketing opera-
tions to sell abloy products in new
market areas were started with other
Group companies. In South America,
for example, an abloy operation for
Brazil has been established with the
local Group company La Fonte.

During the year Abloy was chosen as a
solution supplier for various applica-
tions to provide safety and to secure
properties, infrastructure and valu-
ables against theft, vandalism and
sabotage on the commercial, industrial,
institutional and private markets.

Björkboda Lås found a develop-
ment area in the distribution of lock
cases to both commercial and residen-
tial customer segments in a number of
countries. Sales of the abloy range of
high-security lock cases meeting the
din Standard started promisingly in
several market areas.

Integration regionally
and worldwide
The business-unit-based organization
of Abloy facilitates close cooperation
with other Group companies to
develop and manufacture purpose-
built products that exactly meet the
needs of customers in different markets.
Abloy participates in the Group’s pro-
duct councils to find and develop new
product concepts and solutions, and
uses the benchmarking process to
constantly develop its functions.

Numerous pre-studies for cross-
selling opportunities between Abloy,
Björkboda Lås and other assa abloy
group companies were made during
the year. Various cooperation projects
are already underway to supply unique

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 32

Central Europe:

Excellent prospects for new
regional organization

assa abloy central europe was created
during 2001 to oversee the Group’s
operations in Germany, the Nether-
lands, Switzerland and Austria. The
new regional organization has a sound
operational and financial base for future
improvements.
growth and profit
Continuous margin improvements and
capital rationalization are supporting
cash flow, profit development and
balance sheet reduction. This work
will continue, giving good prospects
for 2002.

The organization’s manufacturing
units comprise effeff, ikon, Wilhelm
Dörrenhaus and bab-ikon in Germany,
Lips in the Netherlands and keso in
Switzerland. In addition, there are
seven sales units operating in Central
Europe.

The integration of the effeff group
in Germany and the divestment of its
non-core alarms business are now
completed. The acquisitions of Lips in
2000 and the keso group in 2001, and
their subsequent integration, have
created good market positions in the
Netherlands and Switzerland. Coordi-
nation of sales forces and production
operations has started to improve sales
and margins, and growing collabora-
tion with other Group companies will
support future expansion in the area.
The Volvo Ocean Race will be used
for future integration of units and
make sure that our employees under-
stand our way of working. The race is
also an ideal vehicle to get in closer
contact to our customers and to pro-
mote our local strong brands.

The Central European market
slowed down in 2001. New-construc-
tion volume was lower, while the after-
sales business and sales of high-security
products remained static. The regional
in
organization’s strong positions

32 • A S S A A B L O Y / 2 0 0 1

electromechanical products and high-
security cylinders will ensure stable
development. Changes in the distribution
structure, involving closer cooperation
with appointed System Partners,
give opportunities to increase market
shares.
The implementation of the Euro will
harmonize and open the European
market, assisted by the changing distri-
bution structure and continuing cross-
border business integration. Com-
panies like assa abloy, operating in
the whole area, can gain new opportu-
nities in this process. The markets of
eastern Europe are also coming closer
and closer to Germany and to the influ-
ence of central Europe in general.

The very fragmented structure of the
Central European market, in which a lot
of small and medium family-owned lock
companies still operate, also generates
possibilities of future market restructur-
ing and harmonization.

GERMANY
Europe’s biggest and most developed
market for security products has been
affected by the overall slowdown in
economic growth. New construction is
down by 5 percent overall and building
in the eastern part of
activities
Germany have decreased dramatically.
However the commercial and renova-
tion segments remain at previous
levels. The outlook for the coming year
indicates no major changes apart from
some increase in the renovation area
and after-sales market.

New regulations affecting equity
ratio have tightened credit ratings and
caused difficulties for many trading
and installation firms. The result is a
tendency towards mergers in trade and
wholesaler chains. At the same time
wholesalers and wholesale associations

have announced mergers involving
continuing expansion beyond German
borders.

The awareness of a need for higher
security in both the commercial and
the residential areas is increasing.
Issues such as access control, electro-
mechanical locking to achieve greater
security and added flexibility and,
especially, safe emergency exit systems
are high on the priority list of public
authorities and institutions such as air-
ports, hospitals and schools.

leading position

With its strong operations in the
areas of electromechanical locking,
emergency exit systems and high-security
masterkey and access control systems,
assa abloy in Germany is now taking
influencing
a
the market towards better locking
solutions. The companies effeff, ikon,
bab-ikon and Dörrenhaus offer pack-
ages that combine security, safety and
convenience features, and through
their professional sales forces and
strong partnership concepts with lead-
ing retail and installation firms they are
in a position to communicate the value
of these packages to professional end-
users, decision makers and residential
customers. In addition, new distribu-
tion channels such as Do-it-Yourself
retail stores will help to generate a
higher demand for high-quality security
products.

With their focus on r&d, the
German assa abloy group companies

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 33

Inside the Charlemagne Building in Brussels, headquarters of the European Commission, 2,200 BAB lock
cylinders are installed.

will continue to raise standards in the
areas of electromechanical and mech-
anical locking. New multipoint locks
and electronic cylinders will be intro-
duced in 2002 and other products are
continuously being developed
in
response to end-user needs.

THE NETHERLANDS
Construction activities in the Nether-
lands remained stable for the commer-
cial and renovation markets but the
residential market slowed down.

With its strong positions in the diy
and service markets assa abloy has
been able to increase market shares. By
influencing architects, distributors and
end-users the company has created
a good base for improving sales to
the commercial segment with
its
electromechanical and mechanical
high-security products.

The integration of Lips is proceed-
ing according to plan. Business Units
have been established, and significant
improvements in delivery times and
service have brought new customers.
Sales development and better margins
are starting to improve ebita (opera-
ting margin before goodwill amortiza-
tion). The cross-selling of products
from other assa abloy companies will
be used to win market share in exit
devices, multipoint locks and cylin-
ders. Positive development of sales and
profit is expected.

SWITZERLAND

The Swiss market is slow but very
stable. Established high-security stand-
ards form a base for future market
development towards electromechani-
cal and even higher-security products
and solutions.

The acquisition of keso was a very
important step for assa abloy in
Switzerland. keso’s outstanding port-
folio of high-security products and
cylinders is a perfect complement to the
existing assa abloy product range
and in particular expands its flat-key
technology and systems.

The addition of keso gives assa
abloy a good position in electro-
mechanical locking, and a strong
second position in the high-security
cylinder market behind kaba.

Integration of keso has started
very well and is progressing faster than
planned. The Group’s tools of bench-
marking, cross-learning and continu-
ous development work are expected to
produce substantial improvements.
Cross-selling projects with other assa
abloy group companies are expected
to bring significant sales development
for keso, and better growth is forecast
for next year. The local market is not
expected to decrease, and stable devel-
opment will continue.

Central Europe:
Sales by companies in the Central
Europe organization in 2001
amounted to SEK 1,432 M (1,027).
Organic growth for comparable
units was 3 percent.

GROUP VICE PRESIDENT ASSA ABLOY:
EERO LESKINEN

GERMANY
IKON AG Präzisionstechnik
Mainly manufactures and sells high-security cylinders
and advanced masterkey systems.
CEO: Eero Leskinen
Presidents: Bernd-D. Wempen and Gerhardt Ernst
BAB-IKON GmbH Schliesstechnik
Manufactures and sells small lock systems
and standard lock products.
President: Eero Leskinen
effeff Fritz Fuss GmbH & Co. KGaA
Manufactures and sells electronic and
electromechanical security systems.
Presidents: Martin Brandt, Bernhard Zimmermann
and Manfred Kötzle
effeff China
President: Martin Brandt
Rofu AG
Swiss manufacturer of electric strikes and door
magnets with sales in Switzerland and Germany.
President: Ugo Zanolari
effeff France S.A.
President: Jean-Claude Paris

Wilhelm Dörrenhaus GmbH
Manufactures and sells standard and special lock
cases, mainly for wooden doors.
President: Holger Ritz
ASSA-Ruko Sicherheitssysteme GmbH
Markets and sells the ASSA and Ruko lock
ranges on the German market.
President: Svend Mølgaard Petersen

THE NETHERLANDS
Lips Netherland B.V.
Manufactures an extensive range of electromechanical
and mechanical products, backed by after-sales
service and maintenance.
President: Jaap Wind
Ambouw B.V.
Markets and sells mechanical and
electromechanical locks and building hardware
on the Netherlands market, mainly supplied by
IKON and other ASSA ABLOY companies.
President: Gert Lubbersen

SWITZERLAND
IKON Switzerland S.A.
Markets and sells IKON, BAB-IKON and ABLOY
products on the Swiss market.
President: Ugo Zanolari
KESO AG
Manufactures and sells high-security mechanical
and electromechanical cylinders and lock systems.
Presidents: Ernst Keller and Eugen Vigini

KESO Deutschland GmbH
President: Andreas Lipowski
KESO France S.A.
President: Christophe Jenny
KESO Austria GmbH
President: Wilhelm Langanger

Trends
SEK M

2001

2000

1999

1998

1997

Sales

1,432 1,027

575

543

489

Average no.
of employees

1,398 1,170

751

747

673

Sales by product group

Mechanical locks,
lock systems and
accessories, 56%

Security doors
and fittings, 2%
Industrial locks, 3%

A S S A A B L O Y / 2 0 0 1 • 3 3
A S S A A B L O Y / 2 0 0 1 • 3 3

Electromechanical
locks and electronic
locks, 39%

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 34

South Europe:

Improved growth driven by
security and safety demands

A new regional organization, assa abloy
south europe, was created in 2001 to
oversee the Group’s operations in
France (Vachette, jpm, Laperche/icb,
Stremler, Fichet Serrurerie Bâtiment,
Yale Security France and Bezault),
Belgium (Litto and Dupéray), Spain
(azbe and tesa) and Italy (Nuova
f.e.b., mab, Yale Corni and Yale
Security Group).

Market and market trends
In France, the positive trend of late
2000 continued at first, but volumes
slowed towards year-end due to in-
ventory reductions among distributors
and some caution before the Euro in-
troduction. Growth is security-driven,
helped significantly by new high-end
products such as masterkey cylinders
and multipoint locks. Security has
become an important political issue in
France, which explains the wide inter-
est in l’Observatoire de la Sécurité –
the association created by assa abloy
france to inform the media and public
about security and safety measures.

The specialized high-security com-
panies achieved really strong growth
this year. As in other markets, orders for
electromechanical products fell back in
the second half, but are forecast to
regain previous growth levels since the
projects are delayed rather than lost.

The larger general lock companies
picked up in the fall, especially jpm
where major improvements in the pro-
duction flow organization and new
product launches are starting to bear
fruit. But, as predicted, the entry-level
products
from
cheap imports sold by price-oriented
distributors.

faced competition

The Belgian units recorded another
good year of healthy, strong growth.
The very active building market stabi-

34 • A S S A A B L O Y / 2 0 0 1

lized in the second half-year and vol-
umes remained good. Sales of Fichet’s
high-security doors (integrated into
the Belgian organization in 1999) rose
substantially in response to growing
security demands and revitalized
market efforts. Hotel lock sales were
brisk early in the year but then slowed,
as did sales of industrial locks to
the telecom sector. Continuing high-
security demand and a strong presence
in replacement/renovation projects will
assure continued positive development
in Belgium.

Spain is the region’s strongest
growth market, achieving record
volumes for the high-security abloy
cylinders and other security products,
despite some slowing in the telecom
sector. Further attention given to
Fichet, acquired by assa abloy in mid
2000, paid off in extensions to the
Point Fort dealer network and in
higher sales per outlet. Hotel lock sales
held up well. Towards the end of the
year the tesa acquisition was com-
pleted and the work of integrating the
company into the Group started.

In Italy too there is increasing
awareness of – and interest in – better
locking solutions.

The lack of clear market leadership
has produced a depressed, price-focused
market. assa abloy’s units kept up
well and are targeting margin improve-
ments rather than volumes. A good last
quarter lifted sales above last year’s.
The newly acquired door-closer manu-
facturer mab is integrating very positi-
vely in both the region and the Group.
Growth for the region is moderate,
but still well above that of recent years.
There is increasing penetration of
electromechanical products made by
Yale Corni and Nuova f.e.b. in Italy and
by icb, jpm and Laperche in France.

l’Observatoire de

the French population

The trend towards
higher security
Safety and convenience have become
important additional drivers of secur-
ity-driven growth. Studies conducted
by
la Sécurité
(just before the terrorist attacks on
September 11) show that 43 percent
of
think
supermarkets, schools and cinemas
have insufficient safety measures. The
figures rise to 49 percent for football
stadiums, 50 percent
for office
buildings, 60 percent for the subway
and 64 percent for nightclubs and
discos. 65 percent also believe that the
security measures in public buildings
are not renewed sufficiently often.
These results attracted wide attention
in the French media, winning recognition
for assa abloy. The better-informed
public demand for safer public buildings
will benefit the entire industry.

targeting

New products

the
demands for higher security and safer
public buildings have multiplied. jpm
introduced an innovative panic exit
device. Vachette
launched a new
family of multipoint locks with good
export potential and two new high-
security cylinder lines. Laperche’s safety-
featured lock won the innovation
award for locks at Paris’s batimat
2001 fair in November. Fichet’s new
range of high-security doors attracted
wide interest – and new volumes – and
investments in production are being
stepped up to meet demand from
France, Belgium and Spain.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 35

South Europe:
Sales by companies in the South
Europe organization in 2001 amounted
to SEK 2,905 M (2,232). Organic growth
for comparable units was 4 percent.

GROUP VICE PRESIDENT ASSA ABLOY: BO DANKIS

FRANCE

Bezault S.A.
Manufactures door and window fittings.
Managing Director: Michel Brassié

Fichet Serrurerie Bâtiment
Manufactures high-security cylinders, high-security locks
and security doors.
Managing Director: Robert Fidanza

JPM S.A.
Manufactures locks, cylinders, panic bars and escape fittings.
Managing Director: Eric Baudru

Laperche S.A./ICB
Manufactures multipoint locks, cylinders and electromechanical locks.
Managing Director: Robert Fidanza

Stremler S.A.
Manufactures locks and fittings for glass and aluminum-frame doors.
Managing Director: Robert Fidanza

Vachette S.A.
Manufactures locks, multipoint locks, high-security cylinders, panic
bars and escape fittings.
Managing Director: Frédéric Chanel

Yale Security France
Sells locks, multipoint locks, cylinders and electromechanical locks.
Managing Director: Pascal Bureau

BELGIUM

Dupéray S.A.
Specifies locking solutions aimed at large building projects with prod-
ucts mainly from IKON, effeff, Abloy and other Group companies.
Managing Director: Dominique Osstyn

Litto n.v.
Manufactures and sells locks and cylinders with an emphasis
on high security.
Managing Director: Fernand Clapdorp

SPAIN

ASSA ABLOY IBÉRICA, S.L.
Parent company for ASSA ABLOY’s operations in Spain.
Vice President: Jorge García Martínez
Vice President: Jose Agustin Telleria

AZBE B. ZUBIA, S.A.
Manufactures and markets a complete portfolio, through four
Business Units.
Managing Director: Jorge García Martínez

TESA Talleres de Escoriaza S.A.
Manufactures a comprehensive range of products including locks,
multipoint locks, cylinders and knobsets for buildings.
Managing Director: Jose Agustin Telleria

ITALY

Yale Security Group – Italy
Sells cylinders, mechanical and electric rim/mortise locks, cabinet
locks, safes and padlocks, in Italy and internationally.
Managing Director: Roberto Renzi

Nuova F.E.B. S.r.l.
Specializes in the production of locks, electric strikes, panic exit
devices and electrical supplies.
Managing Director: Gilberto Allievi

MAB MASELLIS Industriale S.p.A.
Manufactures door closers, floor springs and panic exit devices.
Managing Director: Gilberto Allievi

Yale Corni Sistemi di Sicurezza S.p.A.
Panic devices, aluminum/fire locks and electromechanical/electronic
closing systems.
Managing Director: Roberto Renzi

Trends

SEK M

Sales

Average no.
of employees

2001

2000

1999

1998

1997

2,905 2,232

1,682

1,559

901

3,099 2,744

2,189

2,013 1,204

Sales by product group

Security doors
and fittings, 17%

Industrial locks, 1%

Electromechanical
locks and electronic
locks, 7%

Mechanical locks,
lock systems and
accessories, 75%

The Opéra Garnier in Paris, with its ceiling paintings by Chagall and crystal chandelier weighing over
six tons, remains the masterpiece of the French architect Charles Garnier (1825-1898). Since 1989 the
opera house has been protected by a high-security masterkey system from JPM using over 400 KESO
cylinders as well as rim locks matching the style of the building. This system is continually updated with
the latest technologies.

In Italy, Nuova f.e.b. launched a new line
of panic exit devices and also a new
design concept for panic exit devices,
designed in Milan.

The cliq technology was acclaimed
at its French launch at the Eiffel Tower
in October. The industry is eagerly
awaiting the first deliveries in early
2002.

The South Europe group is very
active in the various European com-
mittees for standards and certification.
Possibly the most significant advances
are in panic exit devices, where assa
abloy is the regional market leader. All
units will apply for the new ce certifi-
cations and markings as they become
available
in early 2002, before
becoming mandatory later.

Integration regionally and
within the Group
The integration of the newly acquired
companies is proceeding well. New
management structures developed in
the creation of a South Europe region
cater for ongoing communication and
information flow.

Cross-border trade between the
companies is becoming important as
relations improve. Litto in Belgium has
distributed Vachette products for two
years now, while jpm panic exit devices
go to the Belgian market via Dupéray.

azbe in Spain is introducing door
closers and panic exit devices from
France. Yale in Italy is sourcing high-
security cylinders from Vachette and
complementary products from Nuova
f.e.b. Yale products also go to several
French companies. Even more ties are
in the making.

The French group has actively cul-
tivated common projects since 1997
and is now a well functioning team.
During 2001 a successful Management
Training Program was started where
twelve young potential managers were
trained in business and assa abloy
values and strategies. The program
will be extended to the entire South
Europe region from early 2002. It is an
excellent tool both for internal groom-
ing of new generations of managers
and for company integration.

The South Europe region will host
one of the Volvo Ocean Race stopovers
at La Rochelle, France in May 2002.
Preparations are well underway,
handled by a project team from all the
countries.

Other projects conducted region-
ally are Supply Management and
Purchase Coordination, an it Forum, a
Brand Management Council and seve-
ral business development projects.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 36

United Kingdom:

Group synergies, integration and
strong brands stabilize sales

assa abloy uk, which was formed
after the acquisition of Yale Intruder
Security in late 2000, has pursued a
policy of integration while taking
advantage of the strength of the indivi-
dual Group companies operating in the
its own
uk. Each company has
strengths in products and marketing,
and the aim is to develop these unique
aspects while facilitating cross-learning
and synergies that achieve cost savings
and spread best practice.

assa abloy uk is the country’s
largest supplier of door and window
security products and has a dominant
position in the high-security lock mar-
ket. But it currently enjoys a relatively
small market share of the general door
and window hardware market. This
leaves exciting opportunities to capita-
lize on its strong brands, market pres-
ence and access to Group products and
to introduce new products in many
ancillary areas such as door closers,
door handles and window hardware.

Separately, assa abloy uk is the
major uk-based automotive lock sup-
plier.

Chubb Locks Custodial Services
dominates the jail-sector lock business
in the uk, and together with Union-
brand products contributes to exports
amounting to sek 210 m.

Extensive strategic market research
has been undertaken to plan the uk
group’s development using its strong
national brands and companies,
supplemented by the vast range of
products available from the global
assa abloy group. This evaluation has
identified opportunities for all the uk
companies to develop without undue
levels of intra-Group competition. The
twin aims are to give existing custo-
mers greater choice by enlarging the
product range, and to expand the

36 • A S S A A B L O Y / 2 0 0 1

customer base. During 2001 each
company progressed in line with this
strategy:

• Abloy Security and assa continued to
grow in the high-security commercial
segments with the support of the
Nordic factories and the introduction
of new keying and electromechanical
products. Abloy focuses on distribut-
ing through locksmiths and security
centers while assa supports the speci-
fication of solutions for institutional
buildings via architects and builders.
• Grorud, supplying fittings to door
and window manufacturers, grew
strongly after the acquisition of a
principal supplier and significant
new contracts in the British oem
market.

• Chubb Lock Custodial Services
commissioned the construction of a
purpose-built site to accommodate
all the manufacturing and admini-
strative/sales functions of the compa-
ny. This confirmed its commitment
to supplying a total service to custo-
dial establishments, and continues
the development of sophisticated
systems that meet the stringent
demands for economy and security in
private and state-run jails and other
secure establishments.

• C E Marshall invested in added
magnesium diecasting capacity to
support the growing market for
lightweight steering-column locks,
and maintained
its profitability
despite a difficult year in the auto-
motive field. By year end it was
collaborating with assa abloy’s
other car-lock manufacturer fab of
the Czech Republic to pursue new
opportunities.

• Yale Security Products focused on
continued operational efficiency

improvements and the development
of new product plans to support
the repositioning of its Yale, Union
and Chubb brands. With
this
repositioning Yale will focus on
residential products and the security
of private accommodation, Union
will develop a wide range of products
from within the Group to support
commercial specifiers and ironmongers,
and Chubb will provide high-security,
technically advanced products for
both markets.

Market and market trends
While the overall market was difficult
and remains
largely price-driven,
significant opportunities for high-
specification products have supported
the focused strategies of assa, Abloy
and Grorud and their continued
growth. This reflects the underlying
increase in awareness of security, driven
by rising criminality and increased
accumulation of personal possessions
and other valuable assets such as
information.

The repositioning of the Yale,
Union and Chubb brands, and the
introduction of innovative and higher-
value-added products, will offer the
market attractive alternatives to the
plethora of imported copycat products.
Despite the difficult overall market,
assa abloy uk was able to maintain or
increase sales in most segments while
improving margins during the year.
Particular emphasis was placed on
restructuring and repositioning Yale in
this regard and has resulted in a strong
initial order intake in 2002.

The trend towards
higher security
Security requirements continue to grow,
and the companies work together with

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 37

United Kingdom:
Sales by companies in the UK
organization in 2001 amounted
to SEK 1,545 M (665). Organic
growth for comparable units
was 8 percent.

GROUP VICE PRESIDENT ASSA ABLOY:
GEOFF NORCOTT

Abloy Security Ltd.
Primarily markets ABLOY electromechanical locks,
padlocks and industrial locks.
Managing Director: Robin Rice
ASSA Ltd.
Markets a complete range of ASSA, Ruko
and SOLID lock products.
Managing Director: Paul Green
Grorud Industries Ltd.
Manufactures and markets door and window fittings.
Managing Director: Bjørn Mønster
C E Marshall (Wolverhampton) Ltd
Manufactures and supplies high-security locks
and door handles as original equipment items
to the automotive industry.
Managing Director: Raymond Dovey
Yale Security Products UK Ltd
Manufactures and markets a complete range
of door locks, padlocks and architectural hardware
under the Yale, Chubb and Union brands.
Managing Director: Michael Rayner
Chubb Locks Custodial Services Limited
Provides custodial locking products and systems to
correctional facilities worldwide.
Managing Director: Steve Wood

Trends
SEK M

2001

2000

1999

1998

1997

Sales

1,545

665

270

266

236

Average no.
of employees

1,795

704

128

132

147

Sales by product group

Security doors
and fittings, 3%

Industrial locks, 20%

Electromechanical
locks and electronic
locks, 6%

Mechanical locks,
lock systems and
accessories, 71%

The National Security Roadshow is a mobile exhibition center created by Yale Security Products UK.
It attends customer open days, exhibitions and conferences, publicizing both the Volvo Ocean Race
participation and the latest high-security products.

government organizations, insurance
companies and Standardization bodies
to increase consumers’ awareness of
standards and the products and solu-
tions available.

Focus on the end-user has been
assisted by the Yale Security Road-
show, a purpose-built mobile exhibi-
tion which tours the country, visiting
trade shows and supporting customers
and local-community activities. The
display aims to inform customers of
general issues related to security and
enjoys the support of allied organiza-
tions such as ‘Secure by Design’ (a
police initiative), insurance companies
and Neighborhood Watch.

The improvement of security via
door and window manufacturers has
been supported by the introduction of
new multipoint locking products from
both Yale and Grorud. This focus on
fitting by the manufacturer will protect
future sales.

Customer research for new prod-
ucts focuses on end-users’ desire for
products that are both functional and
appealing, and has revealed significant
opportunities to raise public awareness
of security products. Packaging, advert-
ising and point-of-sale displays are
therefore directed towards customer
education to increase understanding of
the products’ technical superiority.

Integration regionally
and worldwide
The integration of the uk group has
progressed well, exploiting opportuni-
ties to share production facilities, skills
and services. The companies’ combined
knowledge has been incorporated in a
product/market matrix, from which
strategies to best utilize each company’s
strengths in products and marketing
have been defined.

In the drive to reposition the Yale,
Chubb and Union brands, resources
have been seconded from Australia,
Sweden and Finland.

In critical product areas, strategies
utilizing products, designs and market-
ing programs from other Group com-
panies have been developed. There will
be significant new product launches in
2002 based on cross-buying, local
manufacture and joint sourcing strat-
egies. A typical initiative will be the
extension of the successful padlock
range from Lockwood in Australia to
Yale uk.

Supported by the Volvo Ocean
Race initiative, a real momentum has
been developed in the former Yale
Intruder Security companies which will
manifest itself in a more proactive and
confident uk group over the next few
years.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 38

North America:

New structures sustain development
of a group doubled in size

The operations of assa abloy north
america have undergone strong and rapid
expansion which has resulted in a doub-
ling in size over the last 15 months.
Following the addition of the Yale Secu-
rity Group in late 2000, Phillips and
tesa in Mexico were acquired during
2001, while in the usa the Door Group
joint venture with spx Corporation has
brought four new companies into the
North American organization: Ceco,
Dominion, Fleming and Trussbilt.

Today the North American group
consists of more than 30 operating
units and employs over 10,000 people.
Organic growth has been stable at a
level well above the general growth of
the economy and the market. ebita
(operating margin before goodwill
amortization) has also developed
positively, both as a result of improved
performance by companies in the ‘old’
group and through efforts focused on
integrating the new companies into the
group. During 2001 these companies
have already been able to report gains
in efficiency and reduced overhead
costs which have had a positive impact
on the group’s earnings.

assa abloy’s participation in the
Volvo Ocean Race has spread Group
culture and enhanced team spirit
among the American companies. It has
also played an important role in inte-
grating new units. And all this, long
before the boats even have arrived to
North American waters.

At a time of strong growth it is crit-
ical to create the right environment to
support efficient integration of the new
units as well as to ensure that available
synergies are exploited to the maximum
possible extent. The overall objective is
to create profitable and sustainable
organic growth for the group. By mid
year a new structure had been laun-

38 • A S S A A B L O Y / 2 0 0 1

ched with the three main objectives of
continued and strengthened focus on
operational excellence, increased focus
on product development to ensure
satisfactory levels of innovation and
speed to market, and finally a broade-
ning of market coverage through addi-
tional coordination and focus.

In the new structure, companies
and units with a common base in terms
of products and operations have been
brought together, and two additional
groups with similar market focus and
geographical coverage have been
formed. The new structure consists of
five product-based groups:

• Architectural Hardware Group –
Corbin Russwin, McKinney, Norton,
Rixson, Sargent, Yale Commercial
Locks and Hardware

• Door Group – Ceco, Curries,
Fleming, Graham,

Dominion,
Trussbilt

• High Security and Aftermarket
Group – Abloy, Arrow, ASSA, Medeco,
Mul-T-Lock, NEL

• Electromechanical Group – Folger
Adam Electric Door Control, HES
(Hanchett Entry Systems), Securitron
• Residential Group – Emtek, Yale

Residential

The two main sales and marketing
organizations – essex and ysg (Yale
Security Group) – will be kept separate
to support the new strategy of offering
more than one alternative in each mar-
ket. Additional coordination and
brand positioning are other important
elements in this strategy.

The operations in Canada and
Mexico will also be run as separate but
coordinated units.

Even though the successful integra-
tion of the North American group and

exploitation of synergies will depend on
development within each of the indivi-
dual groupings above, there are also
substantial opportunities for cross-group
collaboration, such as closer market
coordination between Ceco and ysg,
and cooperation in the detention mar-
ket between Trussbilt and Folger Adam.

USA
The market situation in the usa has
softened during the year. A slowdown
in new construction was detected quite
early in the year. This was compensated
to some extent by continued stable
development in sectors of prime impor-
tance for the us group – institutional
construction in general and the educa-
tional sector in particular. The negative
impact that the events of September 11
have had on the economy as a whole
has further slowed down overall con-
struction activity. Added emphasis on
is
security and security upgrades
expected to have a positive impact on
parts of the assa abloy business over
the next few years. But it is too early to
say whether this positive impact will
completely balance the negative impact
from the softer economy.

The us group has developed positi-
vely during the year and shows overall
organic growth of 4 percent with gains in
particular for Emtek, hes and Yale
Residential. The group’s general market
position has been strengthened during
the year.

Integration of the new units has
progressed well and is ahead of plan.
For the Yale Security Group the addi-
tional focus on operational efficiency,
price stability and reducing overhead
costs has paid off in lower inventory,
increased margins and improved overall
profitability. Even though sales have
been somewhat soft, the gains in

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 39

North America:
Sales by companies in the North
American organization in 2001
amounted to SEK 9,682 M (5,409).
Organic growth for comparable units
was 4 percent.

GROUP VICE PRESIDENT ASSA ABLOY:
CLAS THELIN

USA

ESSEX Industries, Inc.
Joint sales operation for Curries, Graham, HES, McKinney,
Sargent and Securitron, with focus on the institutional
construction market.
Vice President, Sales and Marketing: Joseph J Hynds, Jr

Yale Security Group (YSG)
Sales, marketing, service, and support for Ceco Door Products,
Corbin Russwin Architectural Hardware, Folger Adam Electric
Door Controls, Norton Door Controls, Rixson Specialty Door
Controls and Yale Commercial Locks and Hardware.
Vice President, Sales and Marketing: Larry Bonhaus

Folger Adam Security Inc.
Supplier of locks and hardware to the highest-security markets,
such as detention and correctional facilities.
President: Donald C Stading

ARCHITECTURAL HARDWARE GROUP
President: Thanasis Molokotos

Corbin Russwin Architectural Hardware
Manufactures a full range of architectural door hardware and
locks, including mechanical and electromechanical mortise and
cylindrical locks, panic exit devices, door closers and cylinders.
General Manager: Dan Daino

McKinney Products Company
Manufactures a broad, complete line of hinges.
General Manager. John Cordes

Norton Door Controls
Manufactures a comprehensive range of mechanical and
electromechanical surface door closers, door holders and
ADA automatic door operators.
General Manager: Doug Millikan

Rixson Specialty Door Controls
Manufactures concealed closers, pivots, and mechanical/
electromechanical door holders, particularly suitable for special
applications involving heavier doors, stringent esthetic
requirements or other unique openings.
General Manager: Eric Tannhauser

Sargent Manufacturing Company
Manufactures a complete line of locks and door hardware with a
wide range of cylindrical locks, mortise locks, exit devices, door
closers, electromechanical products and cylinder systems.
Director of Operations: Rich Hafersat

Yale Commercial Locks and Hardware
Manufactures a wide range of commercial door hardware and
locks, including mechanical and electromechanical mortise and
cylindrical locks, panic exit devices, door closers and cylinders.
General Manager: Dick Krajewski

DOOR GROUP (USA AND CANADA)
President: Ben Fellows

Ceco Door Products
Manufactures a broad range of steel doors and frames for
commercial, industrial and institutional construction markets.
President: Carl Hellman

Curries Company
Manufactures a full range of hollow metal doors and frames with
primary focus on the institutional and commercial market.
President: Jerry N Currie

Dominion Building Products
Manufactures a full range of steel frames and doors, aluminum
windows and preassembled door units for industrial
pre-engineered buildings.
President: Tom Granitz

Fleming Door Products, Ltd
Canada’s largest manufacturer of steel doors and frames for the
non-residential building market.
President: Bill Strong

Graham Manufacturing Corporation
Manufactures architectural flush wood doors.
President: Jerry N Currie

Trussbilt
Manufactures high-quality security hollow metal products primarily
for the detention market, with a market leading position in this
segment.
President: Steve Wolgamot

HIGH SECURITY AND AFTERMARKET GROUP

Abloy Security Inc.
Active in the market for industrial locks.
President: Jeffrey Carpenter (acting)

Arrow Lock Manufacturing Company
Mechanical locks and lock cylinders, with an emphasis on the
aftermarket and the north-eastern USA.
President: Charles E. Armstrong

The new addition to the Minneapolis Convention Center combines the solid traditional security of a
SARGENT mechanical key system with a SECURITRON digital entry system and exit delay system.
Exit delay systems secure exterior doors electronically while permitting authorized entry, but delay
unauthorized egress from within, so reducing loss from theft.

profitability have far outweighed any
negative impact on the sales side. The
creation of the Architectural Hardware
Group has further speeded up the
integration process and ensured
improved utilization of resources and
further cross-learning between the
member companies.

Folger Adam Security

is well
underway to regain its leadership role
in detention security. Additional focus
on the core business, right sizing of the
operation and a strong emphasis on
efficiency should bring the company
back to double-digit profitability in the
next 12 to 18 months. To support this
process, the
loss-making William
Bayley window division will be
discontinued.

The assa abloy Door Group,
formed in April 2001 as a joint venture
with spx Corporation, also shows
good progress towards integration.
In the joint venture assa abloy has
80 percent ownership, management
responsibility and the right to buy
the remaining shares after two years,
so in practical terms the operation
already acts as part of the us group.
The rationale for the agreement was
that the minority partner was a
leading producer of security and safety
steel doors that were often sold in
conjunction with Yale door hardware

and were complementary to the doors
made by the assa abloy companies
Curries and Graham.

Curries and Ceco, the two largest
units in the Door Group and also the
ones with most similar market presen-
ce, complement each other well:
Curries with its main focus on frames
and custom doors and Ceco with an
excellent operation producing standard
doors. It is expected that it will be
possible to exploit further synergies
during the next one to two years
through a focused and differentiated
investment program.

Trussbilt, the Door Group’s sup-
plier of doors and hollow-metal frames
to the detention industry, has success-
fully built up a very strong backlog of
orders over the last year. A substantial
portion of this business is coming from
new products and services, which is
promising for the future since it has
expanded the company’s potential
market. Some of these new products
can also be used outside the detention
industry in applications where increased
security is of importance.

The strongest growth in the us
group has been on the residential side.
Emtek has achieved growth exceeding
50 percent for the second year running
and continues to develop positively in
its chosen niche of the market – decor-

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 40

The US architectural profession's highest prize – the 2001 AIA Honor Award for Interior Architecture – has gone to architects Hardy Holzman Pfeifer Associates
for their dazzling restoration of New York's famous Radio City Music Hall, originally built in 1932. The glittering new hall uses Yale Security Group hardware
throughout, including Rixson floor closers with special layouts, Corbin Russwin ML2000 locksets and Norton 7500 closers.

ative locks and hardware for homes of
distinction. Yale Residential also
shows strong growth in both retail
sales and sales to builders. During the
year the two residential companies
have successfully launched a significant
number of new products to support
this growth.

The formation of a product group
focusing specifically on High Security
and the Aftermarket (where most deci-
sions for security upgrades are made)
provides increased opportunities to
influence the trend towards higher
security. The member companies take
joint initiatives to broaden this market
by increasing demand for high-security
products. Within the framework of the
National Crime Prevention Council
(ncpc), the assa abloy group is one of
the main sponsors of the National
Safety and Security Council (nssc),
committed to increasing awareness of
safety and security measures that can
prevent crime.

In order to take advantage of the
strength that the different companies
have built up over the years, there is a
need for further brand positioning and
coordination of sales and marketing
efforts. The characteristics of local markets
vary, based on traditions, distributor
support and previous geographic cove-

40 • A S S A A B L O Y / 2 0 0 1

rage. The important work of develo-
ping strategies adapted to the different
local markets is well underway. It
involves the sales forces of all the
major us companies and is coordinated
at national level. The us group’s ove-
rall strategy is always to offer the mar-
ket more than one alternative.

Coordination and cooperation be-
tween companies of the High Security
Group and the Architectural Hardware
Group have also increased during the
year. This is essential to drive the trend
towards high security on the new-
construction side and to increase
awareness among end-users, specifiers,
architects, contractors and other
important opinion-formers in this
segment of the market.

Many product introductions by the
Architectural Hardware Group have
been focused on such higher-security
applications. Sargent has launched a
new bored-in lock, of so-called T Zone
construction, which offers outstanding
performance and strength. Yale’s new
delayed egress device and Corbin
Russwin’s mortise lock for classrooms
are other notable launches. Sargent has
also launched a new family of stand-
alone battery-operated access control
devices incorporating proximity tech-
nology by hid.

Another initiative aimed at driving
the trend towards higher security was
the Building Security program success-
fully launched in 2001. assa abloy
joined forces with other companies
including Diebold, one of the country’s
leading security systems integrators, to
offer end-users a complete package of
safety and security products and services.

CANADA
The Canadian market has stabilized
after a relatively soft year in 2000.
All companies in the Canadian group
show stable growth.

The integration process has also
proceeded smoothly in Canada with
the major focus on further market
coordination and sharing of best
practice in the areas of following-up
prospects and projects and managing
the early stages of the sales process.

In addition to the traditionally
strong Sargent, Yale-Corbin, Medeco
and Abloy presence on the Canadian
market, significant inroads have been
made for McKinney, Securitron, hes
and Mul-T-Lock. This success has been
based on focused efforts to utilize exis-
ting channels to the market and build
on the strength of the established units.
Canada is traditionally a strong
high-security market. The main potential

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 41

ASSA Inc.
Occupies a leading position in the high-security segment of the
market.
National Sales Manager: Thomas Demont

Medeco Security Locks Inc.
Market leader in high-security locks and lock systems for doors
and industrial applications.
President: Robert Cook

NEL Corporation
Primarily focuses on marketing and sales of exterior security rim
locks under the SEGAL brand.
Director: Joseph Kingma

ELECTROMECHANICAL GROUP

Folger Adam Electric Door Controls
Manufactures an extensive range of electric strikes, electro-
magnetic locks, power supplies and access control accessories.
General Manager: Eric Tannhauser

Hanchett Entry Systems, Inc
Provides a variety of electromechanical locking products with
emphasis on electric strikes.
President: Michael Webb

Securitron Magnalock Corp.
Market leader in magnetic locks and other electromechanical lock
products.
President: Robert Cook

RESIDENTIAL GROUP

Emtek Products Inc.
Decorative locks and hardware for the residential market.
President: Thomas Millar

Yale Residential Security Products, Inc.
Provides residential locksets for both new construction and retail
aftermarket applications.
President: Craig Dorsher

CANADA

ASSA ABLOY of Canada Ltd.
Markets and sells Sargent, McKinney, Arrow, Securitron and HES
products in Canada. Responsible for overall market coordination
in Canada including also Abloy and Medeco.
President: Greg M Erwin

Abloy Canada Inc.
Markets and sells ABLOY products in Canada.
President: Stephen Timmons

Medeco of Canada
Markets and sells Medeco products in Canada.
Director: Alan Heaney

Yale-Corbin Canada Limited
Canadian distribution company for Yale Security Group.
President: Bill McLean

MEXICO
Country Manager: Jorge Arnau

Grupo Industrial Phillips S.A de C.V.
Leader in the Mexican market for locks and padlocks, manu-
facturer of a complete line of rim and mortise locks, hinges,
padlocks and door hardware under the brands PHILLIPS
and PARKER.
President: Juan Manuel Mozas

Tesa, S.A. de C.V.
Residential locksets manufactured and assembled for new
construction, retail aftermarket applications and export under
the brands TESA and THOR.
President: Lars-Inge Aronsson

Yale Security Mexico
Market leader in Mexico in cylindrical and tubular locks under the
brands YALE and SEGUREX. Responsible for distribution of
TOVER locks.
President: Roberto Lebrija Pariente

Trends

SEK M

Sales

Average no.
of employees

2001

2000

1999

1998

1997

9,682 5,409

3,721

2,916 2,402

7,133 4,259

3,305

2,715 2,406

Sales by product group

Security doors
and fittings, 23%

Industrial locks, 2%

Electromechanical
locks and electronic
locks, 9%

Mechanical locks,
lock systems and
accessories, 66%

for further growth in this segment is
by increasing the base during the
new-construction phase. This is there-
fore the main emphasis of assa abloy’s
efforts to drive the trend towards higher
security. Leads are now shared between
the companies, and a more cooperative
approach is used to sell high-security
solutions
the new-construction
market. Implementation has so far been
successful and well received by the
market. With the broad range of
products available it has been possible
to offer different high-security solutions
based on individual customer needs.

MEXICO
Even though growth in the Mexican
market in 2001 was considerably lower
than for the last 4-5 years, the situation
is very promising since this has been the
most stable first year of office for many
years for any newly elected Mexican
President. The underlying need for
construction is also very strong in this
fast-expanding market. However, the
Mexican economy’s strong dependence
on the usa means that it is likely to be
negatively influenced by the slowdown
there.

The Mexican group consists of Yale
Security Mexico (the new name for
Scovill), tesa and Phillips – three

companies with different focus and
strengths. Phillips is the market leader
in traditional Mexican locking prod-
ucts and padlocks, while Yale and tesa
are more focused on American-style
bored-in locks. Both Yale and tesa
have stable market positions in Mexico
but also play a significant role in cost-
efficient sourcing of products for the us
market.

tesa has been a main supplier of
products to Yale Residential in the usa
for some years, and Yale Security
Mexico is playing an ever bigger role as
a cost-efficient source of products sold
by Arrow in the usa.

Integration in Mexico has only just
started, since the closing of the Phillips
transaction took place in September
and tesa joined the group in November.
A Country Manager was recruited
from the industry in September and the
new management team has already
identified a number of areas to address.
They include cross-sourcing of products
and components, better utilization
of the total production resources,
development of best practice on the
manufacturing side and coordination
of purchasing and export activities.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 42

South Pacific:

Integration benefits the region and the Group

to coordinate

assa abloy south pacific was formed
during 2001
the
operations of this region. At the start
of the year operations consisted of
Abloy Security Limited in Australia
(100 percent owned), Lockwood
Security Products of Australia and
Lockwood Arrow of New Zealand
(both 50 percent) and Trimec
Technology in Australia (100 percent).
In April 2001 Lockwood Security
Products (including Lockwood Arrow
nz) became a wholly owned subsidiary
of assa abloy ab when the former
50/50 joint-venture partner Email
Limited sold its interests under a prior
arrangement. However, these opera-
tions have been managed as wholly
owned assa abloy companies since
1999 and much of their success is due
to the resulting synergies.

In October 2001 assa abloy ac-
quired
Interlock Group of New
Zealand, strengthening the Group’s
position in New Zealand and bringing
with it valuable knowledge of the oem
window market and
innovative
products and production techniques.
Half of Interlock’s sales are exported,
primarily to the usa and Japan.

Market and market trends
During the first half of 2001 the
Australian market continued to suffer
the effects of the 10 percent Goods and
Services Tax imposed on 1 July 2000.
This particularly affected the residen-
tial market. However, by the end of the
third quarter a recovery was well
underway.

Lockwood’s aggressive product
introduction strategy, focusing particu-
larly on higher-specification commer-
cial products, resulted in organic growth
of 4 percent for the year despite a soft
residential market.

42 • A S S A A B L O Y / 2 0 0 1

With the residential market recovering
and the launching of new products
unabated, 2001 has set a firm base for
the promotion of a wider range of pro-
ducts – both locally manufactured and
Group-sourced – in coming years.

The New Zealand market recov-
ered towards the end of 2001 and will
provide many opportunities in future
years, helped by a new door-closer
range from Lockwood Arrow and
synergies resulting from the Interlock
acquisition.

The export market, particularly to
Asia, has been difficult, but added
resources and restructuring of the assa
abloy asia Sales Offices have produced
an initial improvement in results.

The trend towards
higher security
While security demands are increasing
in the area, there are also opportunities
for products that improve sealing and
energy conservation, particularly in the
window market.

With Lockwood’s technical re-
sources, significant input can be made
to the development of standards and,
in conjunction with major door
and window manufacturers, of more
sophisticated products to enhance safety
and security in residential and commer-
cial applications. Interlock’s innovative
range will also enhance convenience,
esthetics and cost-effectiveness.

This drive to high-value products
gives window and door manufacturers
and builders the opportunity to dis-
tinguish themselves from the cost-driven
end of the market and promote added
product features and customer benefits.
Lockwood and Abloy retain a
majority share of the commercial market
segment and supply the most highly
developed keying systems available,

based on Scandinavian designs.
Abloy’s disk-based technology focuses
on the industrial market but also offers
commercial building customers an
alternative to Lockwood’s more tradi-
tional pinned cylinder systems.

The companies use the develop-
ment of standards to promote the
trend to higher security directly to the
public via diy stores and locksmiths.
For example, Lockwood’s new pad-
lock range is supported by a new
Australian Standard drafted by the
company and based on the European
Standard. In addition, the Lockwood
Twin Security Council, comprising
company representatives and a net-
work of leading locksmiths, promotes
the assa abloy philosophy of the
‘positive spiral’.

Modified versions of existing
Residential and Commercial Training
Packages are now used to train police
personnel in most Australian states,
and cooperation with Neighborhood
Watch schemes continually improves
community awareness.

Integration regionally
and worldwide
A significant contribution to the present
position of Lockwood in the Austra-
lian market is attributable to the
transfer of products and knowledge
from the Group.

The Twin Keying product line
(supported by Assa, Sweden) and the
panic exit device range (supported by
jpm, France) are two good examples.
In both these cases Lockwood was able
to launch sophisticated products to the
market cost-effectively and rapidly and
thereby accelerate the promotion of
the trend to higher security.

More recently, Lockwood has been
able to support other Group companies

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 43

South Pacific:
Sales by companies in the South
Pacific organization in 2001 amounted
to SEK 841 M (772). Organic growth for
comparable units was 3 percent.

GROUP VICE PRESIDENT ASSA ABLOY:
GEOFF NORCOTT

AUSTRALIA
Lockwood Security Products Pty Limited
Manufactures and markets lock products such
as door and window hardware, mortise locks,
rim locks and door closers for the Australian
residential and commercial markets.
President: Geoff Norcott
General Manager Commercial Products: Joe Perera
General Manager Residential Products: Edgar Chin
Abloy Security Pty Ltd.
Markets and sells the full range of ABLOY products.
Managing Director: Joe Lahoud
Trimec Technology Pty Ltd.
Manufactures electric strikes and related products
for Australian and international markets.
Managing Director: Roy Bowyer

NEW ZEALAND
Interlock Group Limited
Manufactures and distributes door and window
security hardware in the New Zealand market and
exports to OEMs in USA, Japan, UK and Canada.
Managing Director: Anthony Gledhill
Lockwood Arrow Ltd.
Manufactures door closers and markets Lockwood
products on the New Zealand market.
Manager: Bruce Pollard

Trends
SEK M

2001

2000

1999

1998

1997

Sales

841

772

590

Average no.
of employees

1,098 1,004

1,111

–

Sales by product group

Security doors
and fittings, 18%

Industrial locks, 5%

Electromechanical
locks and electronic
locks, 7%

Mechanical locks,
lock systems and
accessories, 70%

A system for grading the security performance of padlocks, developed by Lockwood Security Products
in Australia to guide customers to the correct padlock selection for their application, has since been
adopted as the official Australian Padlock Standard.

Group companies’ ranges and for the
exchange of production techniques and
coordination of purchasing in the
region.

Despite the distances involved,
assa abloy south pacific is active in
many of the Group’s central councils
such as Product Councils and Sourcing
Councils. It derives considerable bene-
fit from them, and provides equally
valuable input.

Sound foundations have been laid
and growth is accelerating for this part
of assa abloy. Its performance and
impact on the Group are expected
to show
increasing benefits over
the next few years. The success of the
assa abloy racing team (winning
both the Sydney to Hobart Race and
Leg 3 of the Volvo Ocean Race –
Sydney to Auckland) underpinned
an extremely successful integration
program particularly within the wider
assa abloy south pacific community,
including not only employees but
customers and business partners.

such as Yale uk with Australian devel-
opments such as its new padlock range
(providing both the product and the
marketing approach). This has also
enabled our major suppliers to benefit
from increased volumes generated by
coordinated Group purchasing.

Joint marketing programs have
been developed with Union (uk) to add
Trimec and Lockwood to the range
sold by Union in the Middle East. The
Australian companies will supply
Union-branded products to expand the
offering to architectural customers
there.

Opportunities have been taken to
source products from within the
Group. For example, Guli (China)
now manufactures window-stays for
Lockwood
that were previously
bought from Asian companies outside
the Group.

The future product range for the
region will utilize the expertise of
Trimec in electromechanical applica-
tions to add value and flexibility to
mechanical ranges that are already
outstanding.

The acquisition of Interlock creates
opportunities for a new range of win-
dow products to be added to other

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 44

New Markets:

Continued strong growth reinforced by
integration and international projects

ASIA
In the past two years the Group’s inter-
ests in Asia have been greatly expan-
ded by the Yale and Lockwood acqui-
sitions. During 2001 the operations in
each country were integrated under the
holding company formed last year,
assa abloy asia.

Market and market trends
The Asian economies remained weak
due to the global economic slowdown
following the terrorist attacks in the
usa. Regional instability in Indonesia
and the Philippines further prompted
many governments to downgrade fore-
casts for economic growth. However,
China’s entry into the World Trade
Organization in early 2002 and hosting
of the 2008 Olympic Games will offset
some of the negative economic impact.
Yale and Guli remained the major
retail brands in Asia. diy has developed
significantly, rapidly complementing
the traditional hardware distribution
channels. Product lead-time and service
level to the diy sector provide an
important competitive edge.

The Group also focused on project
specification. Major projects achieved
in China include the Beijing head-
quarters of the Bank of China and the
Industrial and Commercial Bank of
China, Plaza 66 in Shanghai, and the
Beijing International School.

The trend towards
higher security
assa abloy asia continues to lead the
trend toward higher security. In China,
the government adopted the Group’s
testing procedures for door closers and
mortise locks as industry standards.
In Malaysia, the Institute of Fire
Engineers appointed assa abloy to the
Technical Committee for drafting new

44 • A S S A A B L O Y / 2 0 0 1

the

throughout

fire-door hardware standards. 2002
will focus on establishing Security
region
Centers
to educate the market and to enhance
service level. Guli’s technical service
centers in China will continue to provide
and 24-hour
support
technical
emergency lock-out service.

company

Integration regionally
and worldwide
Under the unifying influence of the
Volvo Ocean Race, business integra-
tion progressed well. The Chinese
became
manufacturing
wholly-owned in February and the
name was changed to Guli Security
Products, focusing on the local brand.
The assa abloy businesses in China –
Yale, Guli and effeff – were integrated
into assa abloy china. In Hong Kong,
Singapore, Malaysia and Thailand
similarly, assa abloy, Lockwood and
Yale businesses were consolidated,
achieving significant business synergies
through
cross-learning, overhead
savings and sharing of project informa-
tion and technical knowledge. To
support continuing expansion, assa
abloy philippines and a presence in
India will be established in 2002.

EASTERN EUROPE
In 2001 most of the Group’s markets
in eastern Europe developed well.

In the Baltic countries Abloy is
represented by the subsidiary Abloy Oy
Eesti Filiaal in Estonia and representa-
tive offices in Latvia and Lithuania.
Assa’s Estonian subsidiary assabalt
markets the products of the Group’s
Swedish companies in all three Baltic
countries.

Good organic growth continued in
Latvia and Lithuania, and assa abloy
has further developed the distribution

network. A notable project is the Saku
Suurhall sport and concert hall in
Tallinn, Estonia, where the Eurovision
Song Contest will be held in 2002.

the Czech Republic and
Slovakia, assa abloy’s organization
consists of fab, the Czech Republic’s
largest lock company, and fab Slovakia.
The sales company fab Projekt was
integrated into fab in 2001.

The local distributor of Abloy and
VingCard products was acquired in
2001 and the business was renamed
Abloy Czech and Abloy Slovakia. Both
companies have developed very well.
Abloy Czech has been integrated into
the Czech organization and now also
distributes electromechanical products
from effeff in Germany and Securitron
in the usa. fab has broadened its port-
folio and continues to add products
from other Group companies, mostly
marketed under its own brand.

2001 saw moderate growth as the
economy picked up after recession.
Construction locking and sales of
electromechanical products have
developed particularly well, but
revenues from car locks remained
weak. Demand for higher-security
products continued to grow, and the on-
going development of the diy business
increased direct sales during the year.

In Hungary, the sales company
assa abloy hungary is developing well
in a very fragmented market. There are
encouraging signs of growing demand
in the high-security segment.

In Poland the Group’s sales are
handled by assa abloy poland, which
has a strong position in the high end
of the lock market. After some strong
years the Polish economy has weakened
significantly and new-construction
activity has leveled out. Nonetheless
sales were maintained at the level of

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 45

New Markets:
Consolidated sales in New Markets
in 2001 amounted to SEK 1,764 M (981).
Organic growth for comparable units
was 18 percent.

GROUP VICE PRESIDENT ASSA ABLOY: ÅKE SUND

ASIA
ASSA ABLOY Asia Pacific Limited
Acts as holding company for the Asia region,
marketing and selling Group products primarily
for commercial, institutional, residential and industrial
applications across Asia.
President and CEO: C.K. Jeang
Guli Security Products Limited
The largest lock factory in China, manufacturing and
supplying primarily residential locks and door closers for
China and international markets. Sales are conducted
from its headquarters in Zhongshan, Guangdong,
supported by four strategic business units and branch
offices in Beijing, Shanghai, Chongqing and Wuhan.
Managing Director: C.K. Jeang
ASSA ABLOY Hong Kong Limited
Responsible for all sales and marketing activities
in North Asia (excluding China) covering Hong Kong,
Taiwan, the Philippines, Japan, Korea, Vietnam,
Myanmar, Cambodia and Laos.
General Manager: Keith Chan
ASSA ABLOY Singapore Pte Limited
Responsible for all sales and marketing activities in
South Asia (excluding Malaysia and Thailand) covering
Singapore, India, Pakistan, Bangladesh and Indonesia.
Managing Director: Jim Heng Lee
ASSA ABLOY Malaysia Sdn Bhd
Responsible for sales and marketing
activities in Malaysia.
Managing Director: Michael Pan
ASSA ABLOY (Thailand) Limited
Responsible for sales and marketing
activities in Thailand.
Managing Director: Tab Teh

THE BALTIC COUNTRIES
ASSABalt AS
Markets and sells ASSA products
in the Baltic countries.
President: Tarmo Talvet
Abloy Oy Eesti Filiaal
Markets and sells ABLOY products
in the Baltic countries.
Manager: Ahti Ovaskainen

CZECH REPUBLIC
FAB a.s.
Manufactures and markets construction locks,
industrial locks, padlocks, cable locks and car locks.
President: Vladimir Bayer
Abloy Czech s.r.o.
Markets and sells Abloy, VingCard, effeff
and Securitron products in Czech Republic.
President: Tomas Richter

SLOVAKIA
FAB Slovakia s.r.o.
Manufactures lock cases; markets and sells other
FAB products.
President: Jaroslav Holzer
Abloy Slovakia s.r.o.
Markets and sells Abloy, VingCard, effeff
and Securitron products in Slovakia.
President: Tomas Richter

HUNGARY
ASSA ABLOY Hungary kft.
Markets and sells ASSA ABLOY products in Hungary.
Managing Director: Géza Póka

Ricardo Orlando, at one of La Fonte’s Metalferco franchise stores in Brazil, demonstrates the result
of a joint project with Mul-T-Lock in Israel.

2000, and awareness of high-security
products is continuing to increase.
The Polish Telecom headquarters is a
notable project due to be completed
early in 2002.

In Romania the Group is repre-
sented by assa abloy romania, which
markets high-security products from
Group companies including Assa and
VingCard, and by the manufacturer
Urbis Security, which holds a leading
position on the Romanian lock market.
During 2001, a new company,
Urbis International, was formed to
manufacture door hardware for Group
companies. The relocation of produc-
tion machinery
in
Norway, begun last year, was com-
pleted and production technology was
upgraded by major investment in a
new surface treatment plant.

from Grorud

Despite a difficult market and a
continuing weak economy, assa abloy
romania achieved good organic
growth, especially in the high-security
and hotel sectors, while Urbis main-
tained domestic sales at 2000 levels.

SOUTH AMERICA
assa abloy’s
in South
America consist of the lock manufac-
turer La Fonte in Brazil.

interests

Market and market trends
In a highly fragmented and strongly
competitive Brazilian market shared
by more than fifteen companies, sales
volumes were comparable to last year’s.
Organic growth fell back, but La Fonte
remains the market-leading brand and
the leader in technology in Brazil, and
its awareness of market needs means
that prospects for future sales growth
are highly positive. Increased construc-
tion in 2001 was not enough to offset
the enormous housing shortage, which
is likely to provide excellent future
sales opportunities.

Brazilian customers remain prima-
rily concerned with new designs and
styles, but there are signs of increased
interest in quality and customer service
and in higher-security products and
solutions.

Sales of Yale-branded products to
other South American countries have
increased, based on a closer relation-
ship with the local distributors. In these
areas the prospects for strong organic
growth are also positive.

The trend towards
higher security
A general sense of insecurity in Brazil is
driving the locks market and the lock
towards higher security.
industry

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 46

New Markets:

However demand currently centers on
alarm systems and guard services, and
locks are not yet perceived as the main
component in improving security.

La Fonte’s strategy is to educate the
market by promoting high-tech products
to dealers, contractors, consultants and
opinion makers as well as end-users.
The company’s access to the whole
range of assa abloy group products
will give it a significant technical
advantage over local competitors and
avoid the need to engage in price wars
over ‘commodity’ products.

Integration regionally
and worldwide
The company currently supplies lever
handles to sister companies in the usa.
In the other direction, La Fonte has
introduced a new high-security cylin-
der on the Brazilian market as a result
of a partnership with Mul-T-Lock in
Israel, and a partnership has been
established to market abloy products
from Finland.

in-
Employee satisfaction has
creased enormously since the company
was acquired by the assa abloy
group. The major efforts made to inte-
grate the company and to transmit
Group culture have paid off in impro-
ving employees’ confidence about the
company. The Volvo Ocean Race has
been a great unifying factor, with spe-
cial events beginning in July 2001 and
running right through to the Race
stopover in Rio de Janeiro in February
and March 2002.

SOUTHERN AFRICA
A year after the acquisition of Yale-
Union in August 2000, the assa abloy
group acquired another leading South
African lock company, Viro Locks (sa),
which complements the product range.
A new holding company, assa abloy
south africa, was formed to integrate
the companies, which together hold a
clear leading position on the South
African lock market.

Market and market trends
The South African market is highly
competitive due to the low per capita

46 • A S S A A B L O Y / 2 0 0 1

gdp, which tends to push demand
towards low-cost products. The mar-
ket was therefore developed during
2001 by beginning to resurrect an
insurance grading system for locks and
lock solutions.

Much work was done with the
Public Works Department to get
Group products specified for Govern-
ment buildings. Presentations to custo-
mers explaining the need to promote
high-security locking products were
accompanied by the launch of high-
security Group products from effeff in
Germany and Mul-T-Lock in Israel.
Other products have been sourced
from Securitron and hid in the usa.

Sales of diy products continue to
increase. The Yale brand is currently
being relaunched on the retail market
with decision-making guides to help
consumers purchase the right product
for the application.

The trend towards
higher security
South African consumers have been
persuaded that for better home security
they must install burglar bars, alarm
systems, security sensors and panic
devices. assa abloy has now embarked
on a campaign to convince them that a
chain is only as strong as its weakest
link, and that good locks and locking
solutions should be re-evaluated for
home security. The Association of
Insurers & Insurance Assessors has been
canvassed to give this campaign legiti-
macy. A training academy will also be
established to educate both staff and
distributors about the benefits of high-
security products and provide them
with arguments to sell better locking
solutions.

A padlock grading system based on
European (cen) security Standards will
be introduced and is expected to be
endorsed by the South African Bureau
of Standards.

Integration regionally
and worldwide
Rationalization of the Yale-Union and
Viro product ranges was started during
the year. Cross-learning visits to best-

practice assa abloy factories genera-
ted valuable ideas to implement locally.
Thus ideas drawn from the Lockwood
padlock case in Australia are being
used to relaunch the Viro padlock
under the Yale brand.

The Volvo Ocean Race stopover in
Cape Town was a valuable tool in the
integration of Yale-Union and Viro
into the Group (read more about it on
page 27).

ISRAEL
assa abloy’s subsidiary in Israel, Mul-
T-Lock, operates
in 70 countries
worldwide and is represented by four
subsidiaries – in the usa, Canada, the
uk and France – and some 100 distrib-
utors.

Market and market trends
Israel’s continuing severe recession
called for special marketing efforts at
home from Mul-T-Lock, its leading
lock manufacturer. The company
expanded its product range with
complementary products purchased
from Group companies.

The most significant international
activity was in Japan, where Mul-T-
Lock seized a major marketing oppor-
tunity and launched some twenty
specially designed types of cylinder.
400,000 cylinders were sold to Japan
in 2001, but growing local competition
and a slowdown in demand are now
affecting sales.

Most other export markets, and
especially the developing countries,
have seen continuing sales expansion.
In Latin America, special high-security
locking solutions for telecommunica-
tions companies deepened penetration
of the institutional market. In eastern
Europe the main advance was to door
manufacturers. In western Europe,
market shares continued to increase,
but slightly more slowly than in
2000. Among the four marketing and
distribution subsidiaries, the penetration
of new products and a substantial
increase in customers gave the French
company an outstanding growth
rate of 30 percent. The uk company
continued promoting the market for

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 47

POLAND
ASSA ABLOY Poland Sp. z o.o.
Markets and sells ASSA ABLOY products in Poland.
President: Jakub Gawecki

ROMANIA
ASSA ABLOY Romania s.r.l.
Markets and sells ASSA ABLOY products in Romania.
President: Gabriel Nicolaescu
Urbis Security s.r.l.
Manufactures and markets locks and fittings.
President: Gabriel Nicolaescu
Urbis International s.r.l.
Manufactures window and door hardware and
sells to other Group companies.
President: Attila Sylvester

SOUTH AMERICA
La Fonte Sistemas de Seguranca Ltda
Manufactures a wide range of security products
including locksets, exit devices and hinges for
commercial, industrial and residential applications.
President: Francisco Bastos

SOUTHERN AFRICA
ASSA ABLOY South Africa
Offers the most comprehensive range of
architectural, DIY and OEM ranges of physical
security hardware.
Managing Director: John Middleton
Chubb Locks Union Zimbabwe
Markets a complete range of security products.
Managing Director: Rory Vahey

ISRAEL
Mul-T-Lock
Produces high-security cylinders and locks
for institutional, commercial, industrial and
residential applications.
President and CEO: Tzachi Wiesenfeld

UK: Mul-T-Lock (UK) Ltd.
Managing Director: Dion McAllister
France: Mul-T-Lock France SA
Chairman: Yvan Haddad
USA: Mul-T-Lock USA Inc.
President and CEO: Zvi Yaniv
Canada: Mul-T-Lock Canada Inc.
President: J. Scott Ferguson

Trends
SEK M

2001

2000

1999

1998

1997

Sales

1,764

981

354

186

Average no.
of employees

5,777 3,296

1,774

1,936

385

Sales by product group

Security doors
and fittings, 5%

Industrial locks, 10%

Electromechanical
locks and electronic
locks, 2%

Mechanical locks,
lock systems and
accessories, 83%

With 32 floors above ground and five below, the Polish Telecom headquarters in Warsaw is the tallest
building designed by a Polish architect. The 1500 steel, aluminum or wooden doors are linked into a
three-level masterkey locking system based on ABLOY DISKLOCK PRO technology and combining
ABLOY mechanical and electromechanical cylinders and FUNXION door hardware.

Integration regionally
and worldwide
During 2001, Mul-T-Lock finalized its
operational plans as a Group member.
Business activities with sister com-
panies were strengthened and joint
ventures have been established with
Guli in China, La Fonte in Brazil, and
Yale-Union in South Africa.

Despite difficult security, political
and economic circumstances,
the
morale of Mul-T-Lock staff remained
high. Even though the route of the
Volvo Ocean Race lies far from Israel,
the event has attracted a lot of interest
and stimulated a strong sense of
belonging to the Group.

Mul-T-Lock’s top-of-the-range E-series
padlocks. The us company continued
to expand into areas outside New York,
while sales in Canada grew by 20
percent.

The trend towards
higher security
Mul-T-Lock continues to focus invest-
ment on r&d. A new Electromechanics
Department was established during the
year to develop products using the
cliq technology. The company further
expanded its cylinder and lock product
range to provide solutions for custom-
ers worldwide. One outstanding new
product was the Hercular deadbolt,
which offers an especially high level of
security suited to market needs in the
usa and Canada.

Another new product, the sbe
sliding-bolt padlock series, comple-
ments the extra-high-security E-series
padlocks. Mul-T-Lock also continues
to develop tailor-made solutions and
provide
sophisticated masterkey
systems for the professional market.

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 48

Hotel locks:

Increased high-security interest
in a slow hospitality market

assa abloy’s international marketing
of specialized security systems to the
hospitality industry is conducted through
VingCard-Elsafe Group, with head-
quarters in Norway, and Timelox, based
in Sweden.

Market and market trends
After several years of steady growth,
2001 saw a stagnating world hospital-
ity market.

The events of September 11 then
brought an increased focus on security
but a sharp decline in travel, new hotel
building, and aftermarket sales. The us
market was most affected, whereas
Europe and Asia experienced only
minor setbacks. The marine cruise
industry continued strong. In the longer
term, the world market is expected to
recover and continue growing.

VingCard-Elsafe Group
In these conditions VingCard, as the
global hospitality leader with represen-
tation in 137 countries, suffered a

slowdown in growth, especially in the
latter part of the year, and the safe pro-
ducer Elsafe was even harder hit. Both
companies immediately responded by
trimming operations and cutting costs
to safeguard profitability.

Security awareness among both
hotel guests and operators continued
to increase, and the lower end of the
market has gradually opened up.
VingCard-Elsafe widened its product
range accordingly, and many future
solutions will be aimed at expansion
into the volume market.

2001 saw a clear recognition of
excellence in the Group’s product port-
folio. The da vinci lock series was
given the Norwegian Design Council’s
Award for Design Excellence, and
innovative Sentinel and
Elsafe’s
Infinity safes received two awards for
best new product at the International
Hotel, Motel and Restaurant Show in
New York. The safes feature a modular
concept including cutting-edge bio-
metric recognition technology.

During the year an organizational
change has been carried through to
separate the production from the mar-
keting organization to combine sources
with other production units within the
Group.

Timelox
Despite the general slowdown Timelox’s
hotel division has strengthened its
position, increasing sales of its world-
leading Dual Card intelligent technology
(magnetic cards for guests and smart
card for staff) in many new and
existing markets to compensate for
downturns elsewhere.

For guests, a new One Card version
now offers not only room access
(including remote check-in, bypassing
the front desk) but use for transactions
in the hotel’s restaurant, shops and
casino. An advanced system uses infrared
communication to interface, on line, to
energy management systems. Staff
cards are re-encoded automatically each
day so that maids, for example, have
access only to rooms due for cleaning.
After a successful introduction in
Sweden, Timelox wire-free access con-
trol systems, based on the same smart
card technology as the hotel systems,
are now marketed internationally.
Functions can include recorded entry
through exterior and interior doors,
time-limited cards, and canceling of
user cards. A camera option allows
remote supervision of outlying access
points. Customers include hospitals,
government offices and military sites in
markets such as South America and the
Far East, as well as assa abloy group
companies worldwide.

On the cruise liner Celebrity Cruises Millennium, VingCard has installed 1,650 electronic guestroom locks
using Vision software.

48 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Fram_E_DS 02-03-14 13.14 Sida 49

Identification:

Continuing growth for
contactless technologies

hid Corporation, a us company, was
acquired by assa abloy in January
2001. hid is a market leader in
contactless cards and readers for access
control, based on 125 khz Radio
Frequency Identification (rfid) techno-
logy. The majority of all new access
control systems sold in the world today
are based on contactless technology.
Because of its specialized technology
and distribution hid is separately
organized as a transnational unit.
During the year the Indala business was
acquired from Motorola, with a similar
product range as hid.

Market and market trends
From 1997 through 1999, the access
control industry grew at an annual rate
of about 10 percent, driven in part by
preparation for y2k. Growth has since
decelerated, but despite the continuing
weak economy, hid expects the access
control market to grow 8 to 10 percent
next year due to heightened security
concerns fueled by the terrorist attacks
on September 11. hid also foresees
stronger international growth based
on regionalization of distribution,
customer service and technical support
in major markets.

Use of technologies that protect id
cards from duplication and forgery (e.g.
holograms and more secure printing
methods)
increase.
is expected to
Another trend is the merging of corporate
Information Technology and Physical
Security departments, which is chang-
ing the way decisions are made and
security products are selected.

As knowledge becomes more valu-
able and labor more costly, corpora-
tions are demanding consolidation of
networks. it and Physical Security
departments are beginning to share
activities and databases on centralized
systems. By working together, the

departments can save money, obtain
more corporate resources and migrate
to new technology sooner.

hid also anticipates heightened
interest in the storage of biometric tem-
plates on id cards, which may drive the
use of 13.56 mhz technology. 13.56
mhz is a radio frequency identification
(rfid) technology already extensively
used internationally in contactless
smart cards for mass transportation
and cashless vending. The technology
is now being introduced into the access
control market to meet the growing
interest in smart cards and multi-
application cards.

Integration regionally
and worldwide
assa abloy group companies are
becoming progressively more aware of
hid’s products and technologies. For
example, hid’s EntryProx reader is
being introduced to various assa
abloy door-hardware distribution
channels.

In its new Low Profile range, the us
Group company Sargent has leveraged
hid’s installed card base by manufac-
turing a battery-powered, self-contained
electronic lock that incorporates hid’s
embedded proximity (eProx) techno-
logy, either used alone or combined with
a keypad for added security. Applications
include computer rooms, storage areas,
classrooms and tenant spaces.

hid is now collaborating with assa
abloy internationally in the develop-
ment of an advanced electronic lock
system. hid is also taking leading roles
in the Group’s Electromechanical
Board and Access Control Symposium.
Viewed by assa abloy as a techno-
logy leader, hid is dedicated to devel-
oping and supporting new technologies
that promote growth into innovative
product areas for the whole Group.

Hotel locks:
Sales by ASSA ABLOY’s hotel locks
operations in 2001 amounted to
SEK 1,056 M (1,052). Organic growth
for comparable units was -7 percent.

VingCard a.s
World-leading solution provider of card locks
and safes to the hospitality industry.
President and CEO of VingCard-Elsafe:
Dag Schjerven
Elsafe International a.s
World leader in safes for hotel rooms.
President: Alvin Berg
VingCard subsidiaries
Brazil
Canada
France
Germany
Hong Kong
Scandinavia
Singapore
Thailand
UK
USA
VingCard Produksjon a.s
President: Dan Enquist
Timelox AB
Manufactures and markets card-operated electro-
mechanical locks for the hospitality market as well as
access controls for hospitals, administrative and
business areas.Timelox has distribution and support
channels worldwide.
President: Jan Wabréus

President: Erik Petersen
President: Larry Cechet
President: Christian Henon
President: Heiner Kesting
President: Tommy Leung
President: Mats Ryden
President: Stephen Lim
President: Phonlavit Manchakra
President: Howard Witt
President: Mats Gustafsson

Timelox subsidiaries:
USA
Spain Vice President: Victor Gomez-Guijo

Vice President: Matt Mrowczynski

Trends
SEK M

2001

2000

1999

1998

1997

Sales

1,056 1,052

965

952

794

Average no.
of employees

634

710

669

605

623

Sales by product group

Hotel safes, 8%

Hotel locks, 92%

Identification:
Total sales by Identification in 2001
amounted to SEK 1,043 M.

HID Corporation
World-leading producer of cards, readers and identi-
fication technology for the access control industry.
President and CEO: Joseph J. Grillo
Indala
World leader in production of RFID cards and readers.
President: Steven J. Wagner
HID locations
US/California
US/Colorado
US/Connecticut General Manager: Frank D’Eugenio
Europe
Asia Pacific

Managing Director: Spencer Hall
Managing Director: Lester Doig

President: Joseph J. Grillo
Vice President: Peter Lowe

Trends
SEK M

2001

2000

1999

1998

1997

Sales

1,043

Average no.
of employees

311

–

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 50

Report of the Board of Directors

The Annual Report of assa abloy ab
(publ.)
[Corporate Organization
number 556059-3575] contains the
Group’s accounts for the ﬁnancial year
1 January – 31 December 2001.

Ownership
assa abloy’s principal shareholders
are Wärtsilä Corporation (10.7 per-
cent of the capital and 25.2 percent of
the votes), Investment ab Latour/SäkI
(8.9 percent of the capital and 18.2
percent of the votes) and Melker
Schörling (3.1 percent of the capital
and 4.7 percent of the votes). They are
represented on the Board of Directors
by, respectively, Georg Ehrnrooth and
Göran Ehrnrooth; Gustaf Douglas;
and Melker Schörling.

Management
The Board determines the Group’s
overall strategy and the acquisition of
companies and real estate. In other
respects, the Board is responsible for
the organization and administration of
the Group in accordance with the
Swedish Companies Act. Working pro-
cedures in compliance with the Act
were established in 1998 and reviewed
annually.

The Board consists of seven mem-
bers, two employee representatives and
two deputy employee representatives.
The Board meets on not less than four
occasions a year, of which one is a
meeting combined with a visit and an
in-depth review of a country in which
the company has operations. During
2001, ten Board meetings were held.

assa abloy’s auditor participates
in the Board’s annual year-end meet-
ing and, as a result, no special audit
committee is appointed. A committee,
where the main owners are represented
by Georg Ehrnrooth, Melker Schörling
and Gustaf Douglas nominates the
Board of Directors and auditors to be
elected at the Annual General Meeting.
Group Management consists of 17
people. Geographical responsibilities
are allocated within Group Manage-
ment to ensure rapid and short
decision-making paths. The Group
endeavors to achieve a non-hierarchical
and simple organizational structure.

50 • A S S A A B L O Y / 2 0 0 1

In the annual budget process, the
Board and Group Management estab-
lish business frameworks based on
improvements on previous years,
which also lay the basis for a high
degree of decentralization of the
Group’s operations. The common
financial and accounting policy
establishes the ﬁnancial control and
monitoring framework.

Important events
Benchmarking. Continuous bench-
marking between the various units has
continued to produce results in the
form of higher productivity and
further margin improvements in many
companies. However, consolidated
margins deteriorated, due mainly to
dilution by newly acquired companies.

Integration of acquired companies.
assa abloy is participating in the
Volvo Ocean Race to support and
speed up the process of integrating
more than 100 companies that have
been acquired across the world over
the past few years, and at the same
time to develop and further strengthen
the corporate identity of assa abloy in
an international context. One ambition
is to further spread assa abloy’s vision
and corporate values and create a
common platform and an increased
sense of togetherness for all employees.
Focus on increasing growth by
cross-selling of products on markets
is represented
where the Group
has continued during
the year.
Coordination among the various units
within the Group progressed.

Launch of intelligent lock technology.
The Group’s new cliq technology is a
concept that integrates electronics and
mechanics to create a more secure lock.
To open the lock, the key must not
only ﬁt mechanically, but its identity,
stored on a microchip, must also be
approved by the lock. Since every key
is unique, individual access rights can
be entered for each key holder.
Similarly, access rights can be with-
drawn for keys that have gone missing.
Electromechanical products are enjoying
the strongest growth and highest

invoicing per product in today’s lock
market. This is also the product sector
where most innovations are being made.

Acquisitions. The acquisitions made
during the year represent signiﬁcant
additions to the Group and add geo-
graphical and product strengths. The
companies acquired during 2001 have
a turnover, pro forma, of sek 4.5 bil-
lion, of which sek 2.0 billion has been
consolidated. Total acquisition price
amounts to sek 4.0 billion. Goodwill
amounts to sek 2.0 billion, of which
sek 1.4 billion will be tax-deductible.

Acquisitions made in 2000
that are consolidated in 2001
Acquisition of HID. A traditional lock
system is a mechanical access control
system consisting of identiﬁcation – the
key – and the blocking mechanism –
the lock. In an electronic access
control system the identiﬁcation is
done through cards and readers and
the blocking mechanism is the electro-
mechanical lock.

The electronic identiﬁcation has so
far been a missing link in assa abloy’s
product portfolio of mechanical and
electromechanical locks. It has become
increasingly interesting and important
to take a leading position in this fast-
growing segment too.

The progress being made in mobile
communication technology and minia-
turized electronics is creating opportu-
nities for the development of more
intelligent locks, including remotely
controlled locks. Radio-Frequency
Identiﬁcation (rﬁd) technology lies at
the core of any such development.
hid has a world-leading position in
contactless cards and readers for
access control, based on rﬁd.

The acquisition price was usd 250 m.
The goodwill arising from the acquisi-
tion has been calculated at usd 215 m.
hid is consolidated from 1 January
2001. The acquisition was cash-ﬂow
positive from the start. It is expected
to contribute to eps from 2002.

Acquisitions made in 2001
Acquisition of Grupo Industrial
Phillips S.A. de C.V. Phillips is a

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 51

SEK M

25,000

20,000

15,000

10,000

5,000

1997

1998

1999

2000

2001

SEK M

2,500

2,000

1,500

1,000

500

1997

1998

1999

2000

2001

SEK M

30,000

24,000

18,000

12,000

6,000

1997

1998

1999

2000

2001

Sales

Income before tax*

Operating cash flow

Capital employed

Return on capital employed, % *

*Key ratio for 2001 are exklusive non-recurring items.

Return on capital employed before goodwill amorization *

Mexican company producing a full
range of lock products primarily for
the Mexican lock market. The company
also exports to other Latin American
countries. Its main product is the rim
lock – the most common type of lock
used in Mexico. The product port-
folios of Phillips and Scovill (to be
renamed Yale Security Mexico) are
highly complementary with almost no
overlap.

Phillips is located in Mexico City
and has an extensive distribution net-
work. The company was founded in
1959 and has about 2,500 employees.
Phillips has shown good growth and
high proﬁtability over a number of
years. Since Scovill is also located in
Mexico City there are synergies and
growth opportunities that will beneﬁt
both companies.

assa abloy ﬁrst established itself
in Mexico in 1998 through the
acquisition of Scovill. Mexico has a
population of around 100 million. The
country is politically stable and is
experiencing strong economic growth.
The demands for new construction
and security are considerable and
Phillips is well-positioned to capitalize
on these opportunities.

Phillips had sales of approximately
sek 650 m in 2001 with a high ebit-
margin. The goodwill amounts to
approximately sek 200 m.

Phillips

is consolidated

from
1 October 2001. The acquisition is
expected to contribute to eps from 2002.

Acquisition of minority share in Yale-
Guli. Discussions with the Chinese
government, assa abloy's joint ven-
ture partner in Yale-Guli, led to the
acquisition of their 40 percent minority
stake in February 2001. The price of

the shares was usd 23 m. The full
ownership improves management’s
focus on business-related issues. Clear
goals and responsibilities can be set
and efficient benchmarking carried
out.

Acquisition of RIS (Abloy Czech), dis-
tributor of abloy and VingCard lock
products in the Czech Republic and
Slovakia. The acquisition strengthens
assa abloy's position in both coun-
tries, especially in the area of electro-
mechanics. This complements the
market-leading
already
achieved by fab and adds annual sales
of czk 58 m (sek 14 m).

position

Joint venture in North America with
UDP. United Door Products (udp) is
one of the leading manufacturers
of steel doors and frames for non-
residential applications in the usa and
Canada. It has annual sales of usd
180 m and 1500 employees, and the
main operations are Ceco, Dominion
Building Products and Fleming with
seven manufacturing facilities in the
usa, Canada and Mexico. In addition,
udp has a leading position in the
detention segment through its Trussbilt
unit, located in South Dakota, usa.

In North America, the same distri-
bution channels are used for locks,
security-related and safety-related
hardware, and doors sold for non-
residential applications. Distributors
can provide contractors and end-users
with a comprehensive product pack-
age that meets all safety and security
codes and fulﬁlls all needs for door
openings. The assa abloy group has
supplied locks, key systems, safety and
security hardware as well as security
steel doors and frames and wooden

doors in North America since 1996
when assa abloy made a major com-
mitment to the us market. The joint
venture with udp will allow assa
abloy to better serve customers
throughout North America with
complementary products and through
more efﬁciently utilizing the companies’
combined resources.

Over the years, Ceco’s door prod-
ucts and the door hardware products
of the Yale Security Group have
frequently been sold through the same
distributors. Distributors have often
combined the products of the two
companies to beneﬁt their customers.
assa abloy acquired the Yale Security
Group in 2000. The joint venture with
udp will allow assa abloy to offer,
through distributors, the whole range
of attractive Ceco doors and Yale door
hardware products.

In addition there are considerable
manufacturing and purchasing syner-
gies that can be achieved by the joint
venture. For example, udp has
achieved manufacturing excellence
and cost efﬁciency in its door produc-
tion units, while assa abloy’s Curries
business is particularly strong in the
production of door frames. Sales of
security doors have shown a high
degree of stability over many years,
with only limited dependence on the
general economy.

spx Corporation, which owned
udp, received usd 96 m in cash and a
20 percent share in the newly formed
debt-free joint venture. assa abloy
has 80 percent ownership in the joint
venture and has the right to buy the
remaining share after two years
according to an agreed earnings-based
formula. spx has a corresponding put
option after two years.

A S S A A B L O Y / 2 0 0 1 • 5 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 52

The joint venture is consolidated
from 1 June 2001. The formation of
the joint venture created only a minor
goodwill element and will be eps-
accretive from the start.

Increase of ownership in KESO AG of
Switzerland. keso is a leading Swiss
manufacturer of mechanical and elec-
tronic high-security cylinders for
doors and industrial applications. The
company has sales of chf 50 m and
has built a reputation as one of the
world’s leading producers of high-
quality locks and cylinders. 50 percent
of the company’s sales are currently
exported to a number of countries.
The company has a particularly strong
position in Germany.

Ernst Keller, the former sole owner
and President of keso, founded the
company in 1963. He is the inventor
of the company’s cylinder technology,
the ﬂat key concept. This technically
advanced cylinder offers unchallenged
masterkeying possibilities. Ernst Keller
will remain President until 2003
to support
integration with
assa abloy.

the

keso’s headquarters and main
production facility are in Richterswil,
close to Zürich. The company has sales
subsidiaries in Germany, France and
Austria. The number of employees
is 320.

assa abloy has increased its owner-
ship in keso ag from 35 to 65 percent
and keso is consolidated
from
1 June 2001. This increased ownership
will be eps-accretive from 2002.

Acquisition of the remaining shares in
Lockwood, Australia. In connection
with assa abloy’s acquisition of 50
percent of the shares in Lockwood, an
option was granted by Email, the seller,
to acquire the remaining shares in the
company after a three-year period.
This option gave assa abloy the right,
in the event of a change of ownership
of email, to execute its right to acquire
the remaining shares earlier. As a
result of the change of ownership at
Email, assa abloy has acquired the
remaining 50 percent of Lockwood
shares. The price of these outstanding
in
shares

equaled

equity

the

52 • A S S A A B L O Y / 2 0 0 1

Lockwood, so that no additional
goodwill has been created.

Lockwood has developed very
positively since the ﬁrst tranche of
shares was taken over at the beginning
of 1999. A successful job of creating
incremental cross-sales has been carried
out. New products such as cylinders,
padlocks and panic bars have been
developed in collaboration with differ-
ent companies in the Group, accepted
as local standards and subsequently
successfully launched. Other steps to
increase operational efﬁciency within
the company are ahead of plan and
will further enhance Lockwood’s
proﬁtability in the future.

Acquisition of MAB, Italian market
leader in door closers. Through the
acquisitions of the Yale Intruder
Security Group and effeff, assa abloy
has established a good position in
Italy. The acquisition of mab strength-
ens this position considerably and
increases opportunities to develop the
market, including the introduction of
products for higher levels of security.

assa abloy has the ambition of
establishing a leading position and
offering a complete range of products
in all major markets. Door closers form
an important part of a lock package,
providing secure operation of a door.

The Maselli family founded mab
in 1948. The company, with 136
employees, is located in Bologna close
to two other assa abloy manufactur-
ing units – Nuova f.e.b. and Yale
Corni. Over the years mab has built a
leading position in Italy in the door
closer segment and has successfully
developed export business in Europe
and the Middle East.

There are two main types of door
closers, overhead-mounted and ﬂoor
springs. The company’s position is
particularly strong in ﬂoor springs. A
ﬂoor spring is a concealed door closer
installed in the ﬂoor and is widely used
with glass doors, a growing product
segment. More than 60 percent of
sales are to the replacement sector, for
renewing worn-out ﬂoor springs with
a product having identical dimensions.
There are also cross-selling synergies
to be developed. Besides the replace-

ment throughout the Group of similar
products currently sourced externally,
there is interest from assa abloy
companies worldwide in adding mab
products to their portfolios.

mab’s annual sales amount to
eur 18 m. The acquisition created
goodwill of eur 9 m.

The company is operating with
high proﬁtability, and the acquisition
is expected to add to assa abloy’s eps
from 2002. mab is consolidated from
1 July 2001.

Acquisition of Viro Locks of South
Africa. Viro Locks Pty Ltd is one of the
leading lock companies on the South
African market. The company’s main
product lines are padlocks, cylinders,
mortise locks and cam locks. Viro
was family-owned and has sales of
sek 130 m. Performance had been
steadily weakening and during the last
couple of years the company had been
showing
losses. However, after a
restructuring program the company’s
income and cash ﬂow have been turned
positive.

In August 2000, assa abloy
acquired 100 percent of the shares in
Yale-Union Security South Africa as
part of the global Yale Intruder Security
Group acquisition. The two South
African businesses complement each
other well and the acquisition of Viro
consolidates assa abloy’s position in
the region. This is a region with grow-
ing security needs, and the companies
are expected to show good growth in
South Africa as well as through exports
to other parts of Africa.

The purchase price of sek 48 m
is in line with net assets. There are
signiﬁcant rationalization opportunities
and synergies with existing operations,
and the acquisition is expected to
be eps-enhancing from 2002. Viro is
consolidated from 1 July 2001.

Acquisition of
Interlock, New
Zealand. Interlock is the leading manu-
facturer and distributor of window
and door security hardware in New
Zealand. Interlock has a proven track
innovative
record of developing
products and has developed successful
exports to Japan, the uk and the usa.

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 53

SEK M

12,000

10,000

8,000

6,000

4,000

2,000

1997

1998

1999

2000

2001

SEK M

20,000

16,000

12,000

8,000

4,000

1997

1998

1999

2000

2001

Shareholders' equity

Equity ratio

Net debt

Net debt / equity ratio

Number of employees

SEK M

2.5

25,000

2.0

20,000

1.5

15,000

1.0

10,000

0.5

5,000

0.0

1,0

0,8

0,6

0,4

0,2

0,0

1997

1998

1999

2000

2001

Average numbers
of employees

Sales per average
no. of employees

Interlock’s strength lies in its innovative
product and production technologies
and, as such, it will contribute signiﬁ-
cantly to assa abloy’s philosophies of
cross-learning, benchmarking and cross-
selling. Interlock will add a competitive
range of window security products to
its sister companies in the region.

Interlock has sales of nzd 60 m.
The operation has shown steadily
improving proﬁts over several years
and shows high profitability. The
company is based in Wellington with
production units in Auckland and
Wellington. The total number of
employees is 420.

Interlock is consolidated from
1 November 2001. The acquisition is
eps-positive from the start.

Acquisition of access control business
of Indala, USA.
Indala is a highly
regarded player in the access control
industry, with headquarters in San Jose,
California. The company was founded
in 1985 and acquired by Motorola in
1993. The product offering is similar to
hid’s, consisting of rﬁd-based cards
and readers for the access control
industry and other applications. The
installed base of Indala products is sub-
stantial, with 60 million cards and
1 million readers installed. The rﬁd
access control business is expected to
achieve sales of usd 25 m this year with
low proﬁtability. The acquisition of
Motorola’s worldwide assets in Indala
creates good scope for synergies in all
areas. The goodwill created by the
acquisition is minimal.

The Indala business is consolidated
from 1 November 2001. The acquisition
will be eps-positive from the start.

Acquisition of TESA, Spain. The acqui-
sition of tesa, originally part of the
Yale acquisition at the beginning of
2000, was deferred pending regulatory
approval in the usa. After closedown
of tesa’s subcontract manufacturing for
the seller’s hotel locks business, ap-
proval was received in November 2001.
tesa’s headquarters and main
factory are in Irún in northern Spain.
The company exports 55 percent of its
sales, mainly to Latin America, eastern
Europe, France and Italy. Subsidiaries
in Mexico and France are part of the
acquisition. The company is a leading
producer of cylinders, tubular lock
cases and advanced electromechanical
products. The product portfolio also
includes a full range of security doors.
tesa has shown stable growth and
strong proﬁtability. The demerger of
the subcontract hotel locks business
will initially result in a drop in sales
volume and lower earnings. Correc-
tive actions are being taken. Synergies
with other Group companies, especially
in the South Europe region, are
substantial and will help to bring
the company back to its former
performance level.

The acquisition price was gbp 85 m.
The acquisition created goodwill of
approximately sek 800 m which
will be tax-deductible. tesa is consoli-
dated from 1 December 2001. Due to
the hotel-lock demerger process
the acquisition will be eps-dilutive
initially but positive from 2003.

Financing of acquisitions
Reﬁnancing during 2001. The main
ﬁnancing source at the beginning of
2001 was the syndicated loan facility
of eur 1,200 m that was signed in
connection with the acquisition of

Yale Intruder Security during 2000.
is a Multi-Currency
The facility
Revolving Credit (mcrf) split into
two tranches: one 364-day tranche
of eur 420 m and a ﬁve-year tranche
of eur 780 m. To diversify and
prolong the Group’s ﬁnancing sources
refinancing has been
a major
accomplished during
year.
A Swedish Commercial paper-program
was launched during the spring for a
maximum of sek 3,000 m. A Nordic
mtn program was also launched
in that process for a maximum of
sek 2,000 m. During the fall an emtn
program was launched for a maxi-
mum of eur 1, 500 m, out of which
five-year bonds amounting to eur 600 m
were sold in December.

the

The mcrf syndicated loan facility
will be renegotiated during 2002 due
to the ﬁnancing sources that have been
launched during 2001.

Incentive Program 2001. A new
Incentive Program for Group employ-
ees was launched in November 2001.
The total Program amounts to eur
100 m. As part of this Program assa
abloy has issued four convertible
bonds of eur 25 m each to a company
specially established for the purpose.
The average share price assessed over
five days prior to 20 November 2001
was sek 148, which with a sek/eur rate
of 9.364 gives a conversion price of
eur 15.8 for the ﬁrst bond. The second,
third and fourth convertible bonds
will have conversion prices of eur 19
(20 percent premium), eur 22.1
(40 percent premium) and eur 25.3
(60 percent premium) respectively.

The Program was 200 percent over-
subscribed and over 4,500 employees in
16 countries have decided to participate.

A S S A A B L O Y / 2 0 0 1 • 5 3

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 54

The Program will run to October
2006 in line with the maturity of the
convertible bonds.

The dilution will amount to 1.39
percent of the share capital and 0.94
percent of the number of votes, on a
fully diluted basis.

Ratings. Standard & Poor’s has
assigned a ‘single-a-minus’ long-term
and an ‘a-2’ short-term corporate
credit rating to assa abloy. The
ratings reflect the Group's strong
positions in entrenched lock markets,
a geographically diverse earnings base
and strong cash ﬂows, but also a
moderate ﬁnancial proﬁle.

Comments on the
income statement
Group sales totaled sek 22,510.0 m
(14,394.1). This is an increase of 56
percent compared with 2000. In local
currencies the increase amounted to
47 percent, comprising organic growth
of 3 percent (5) for comparable units,
while acquired units accounted for
44 percent of the increase in volume.

Earnings before

interest, tax,
depreciation and amortization (ebitda)
amounted to sek 4,019.9 m (2,705.4).
This was an increase of 49 percent
compared with 2000. The increase is
primarily due to improvements in
operational units and to acquisitions.
The gross margin, deﬁned as ebitda
in relation to sales, was 17.9 percent
(18.8).

Operating income before goodwill
sek
amortization amounted
3,159.2 m (2,107.2), an increase of 50
percent. The operating margin before
goodwill amortization was 14.0 per-
cent (14.6).

Goodwill amortization amounted
to sek 860.4 m (387.0). The increase
is attributable to acquisitions during
2001 and 2000.

Consolidated income before tax
excluding
items
non-recurring
amounted to sek 1,641.6 m (1,402.0).
This represents an increase of 17.1
percent compared with the preceding
year.
income
statements of subsidiaries, foreign
exchange effects had a positive impact
of sek 42 m (21) on income before
tax. Proﬁt margin, deﬁned as income

translating

the

54 • A S S A A B L O Y / 2 0 0 1

before tax in relation to sales, was 7.3
percent (9.7).

The Group’s tax charge totaled sek
507.4 m (453.1), corresponding to an
effective tax rate of 34.4 percent (32.3)
in relation to income before tax.

The Parent Company’s income
before tax amounted to sek 430.6 m
(130.1).

Comments on the
cash flow analysis
The consolidated operating cash ﬂow
amounted to sek 2,338.4 m (1,755.6),
equivalent to 142 percent (125) of
income before tax. Cash ﬂow from
operating activities before interest and
tax totaled sek 4,062.8 m (2,703.8),
an increase of 50 percent over the
previous year.

Capital expenditure on tangible
ﬁxed assets, less sales of tangible ﬁxed
assets, amounted to sek 829.9 m
(496.9), which corresponded to 96
percent
(83) of depreciation of
tangible ﬁxed assets applicable to the
ﬁnancial year.

Total purchase price for invest-
ments in subsidiaries amounted to sek
6,979.6 m (10,780.6).

Acquired net debt totaled sek 82.2 m
(1,142.8). The acquisitions carried out
in 2001 were ﬁnanced by borrowings
and internally generated cash ﬂow.

The dividend to shareholders for
the 2000 ﬁnancial year was sek 317.8 m
(237.5), which represents sek 0.90 per
share.

The Parent Company’s cash ﬂow

amounted to sek –357.9 m (338.4).

Comments on the
balance sheet
Accounts receivable amounted to
sek 4,338.5 m (3,276.3), corresponding
to 19.3 percent (22.8) of sales. The
increase was chieﬂy due to acquired
accounts receivable.

Inventories amounted

to sek
3,812.0 m (2,808.4), which corres-
ponds to 16.9 percent (19.5) of sales.
This increase likewise is attributable
primarily to acquired inventories.

Intangible ﬁxed assets amounted
to sek 16,557.8 m (12,259.0). The
increase includes acquired goodwill of
sek 4,263.6 m.
Tangible fixed assets amounted to

sek 6,941.5 m (4,811.0). Direct net
investments in tangible ﬁxed assets
totaled sek 829.9 m (496.9).

Capital employed in the Group –
deﬁned as total assets less interest-
bearing assets and non-interest-bearing
short-term and long-term liabilities,
including deferred tax liabilities –
amounted to sek 27,861 m (19,779).
The increase is mainly due to the
acquisitions of hid, udp, Phillips and
tesa. The return on capital employed
was 9.7 percent (13.7).

The Parent Company has invested
further in shares in subsidaries, includ-
ing Phillips in Mexico. Shares in assa
abloy financial services ab have been
contributed to assa abloy treasury
s.a. in a non-cash issue in exchange for
new shares in assa abloy treasury s.a.

Financing
Cash and cash equivalents amounted
to sek 1,418.4 m (1,479.5). Cash and
cash equivalents are invested in banks
with high credit ratings. Net debt
15,534.2 m
sek
amounted
(8,559.9), of which sek 1,093.0 m
(969.0) consisted of pension liabilities.
Net debt increased due to the acquisi-
tions but the effect was reduced by the
strong operating cash ﬂow.

long-term

The Group’s

loan
ﬁnancing consists mainly of the Multi-
Currency Revolving Credit (mcrf)
agreement for a maximum of eur
1,200 m, un emtn program for a max-
imum of eur 1,500 m and a Nordic
mtn program for a maximum of sek
2,000 m. In addition there is a Swedish
Commercial paper-program for a
maximum of sek 3,000 m that was
launched during the spring. At year
end, utilized ﬁnancing sources were
emtn: sek 5,819 m, mcrf: sek 2,697
m, Commercial paper: sek 2,444 m
and the Nordic mtn: sek 1,862 m.

The interest-coverage ratio, deﬁned
as income before taxes increased by
net interest divided by net interest, was
3.5 (5.5).

for

Periods

fixed-interest-rate
borrowings are generally short, averag-
ing less than one year. This is partly
because Group revenues largely follow
the trends in each country, and partly
due to the strong cash ﬂow.
equity
Shareholders’

totaled

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 55

sek 11,845.6 m (10,659.0). The equi-
ty ratio was 35.6 percent (43.1). The
net debt / equity ratio, deﬁned as net
debt divided by shareholders’ equity,
was 1.31 (0.80).

Personnel
The average number of employees was
24,211 (16,881). The increase was
mainly due to the acquisitions. The
Group’s total wage, salary and other
remuneration payments, including
holiday pay but excluding social wel-
fare costs, amounted to sek 5,740.9 m
(3,539.6).

The average number of employees

in the Parent Company was 34 (31).

Environmental impact
Four of the assa abloy group’s sub-
sidiaries in Sweden carry out permit-
ted business activities in accordance
with environmental regulations. The
Group’s permitted and registered
activities affect the external environ-
ment chieﬂy through the subsidiaries
Assa ab, Assa Industri ab, ab fas
Låsfabrik and ﬁx ab. The companies
operate machine shops and foundries
and associated surface-coating plants
which have an impact on the external
environment through the discharge of
water and air.

The subsidiaries Assa ab, Assa
Industri ab, ab fas Låsfabrik and ﬁx
ab are actively addressing environ-
mental questions, and are certiﬁed in
accordance with iso 14001.

Outstanding legal disputes
assa abloy was
informed on
17 November 1999 of the verdict of a
jury at a court in Dallas, Texas, which
that VingCard could be
means
required to pay damages of around
usd 12.5 m plus interest to a Texas
r&d company, Merrimac, concerning
a terminated sub-supply contract.

The Texas Court of Appeal has
conﬁrmed the obligation for VingCard
to pay damages. VingCard has ﬁled an
appeal against the above judgement to
the Texas Supreme Court; however, the
potential cost of sek 166.0 m has been
provided for as a non-recurring item in
the ﬁnancial statements for 2001.

In connection with the acquisition of
Mul-T-Lock in Israel, assa abloy
agreed that Mul-T-Lock should sell
some non-core activities to the former
principal owner of Mul-T-Lock for
usd 45 m. This former owner has now
initiated legal proceedings claiming
that Mul-T-Lock should be forced
to retain this non-core business.
assa abloy and its advisers cannot see
any legal basis for such a claim, which
is consequently rejected.

Accounting principles
The new Standard rr9 ‘Income Taxes’
issued by the Swedish Financial
Accounting Standards Council has
been adopted from 1 January 2001,
which represents a change in account-

ing principles. All other accounting
principles remain unchanged.

Outlook for 2002
The large acquisitions made over the
last year have considerably strength-
ened the Group. The ﬁrst and critical
part of the integration has successfully
been concluded and the work of realiz-
ing synergies can now accelerate.

position,

The development potential for
assa abloy is substantial. The Group’s
strong
security-driven
growth and potential for continued
rationalization as well as the ongoing
consolidation of the lock industry
create opportunities for continued
good growth and proﬁt development.

Proposed disposition of earnings

As shown in the consolidated balance sheet, the Group’s unrestricted
equity amounts to sek 2,200.6 m (1,728.4). No transfer to the Group’s
restricted equity is required. The following unappropriated earnings are
available for disposition by the shareholders at the Annual General Meeting:

Net income for the year: sek 448.9 m
Unappropriated earnings brought forward: sek 3,407.8 m
Total: sek 3,856.7 m

The Board of Directors and the President propose that a dividend of sek 1.00
per share, a maximum total of sek 356.7 m, be distributed to shareholders and
that the remainder be carried forward to the new ﬁnancial year.

Stockholm, 7 February 2002

Georg Ehrnrooth
Chairman

Melker Schörling
Vice Chairman

Gustaf Douglas

Per-Olof Eriksson

Göran Ehrnrooth

Sven-Christer Nilsson

Carl-Henric Svanberg
President

Mats Persson
Employee representative

Gösta Johnsson
Employee representative

My audit report was issued on 9 February 2002

Anders Lundin
Authorized Public Accountant
PricewaterhouseCoopers AB

A S S A A B L O Y / 2 0 0 1 • 5 5

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 56

Consolidated income statement and cash flow statement

Consolidated income statement

Consolidated cash ﬂow statement

Sales (Note 1)

Cost of goods sold

Gross income

2001
EUR M1)

2001
SEK M

2000
SEK M

1999
SEK M

OPERATING ACTIVITIES

2001
EUR M1)

2001
SEK M

2000
SEK M

1999
SEK M

2,436.1 22,510.0 14,394.1 10,277.2

Operating income

230.8

2,132.8

1,720.2

1,193.4

-1,500.3 -13,863.1

-8,567.6 -6,282.5

Depreciation and amortization (Note 4) 186.3

1,721.1

985.2

667.3

935.8

8,646.9

5,826.5

3,994.7

Adjustment for non-recurring items

18.0

166.0

Selling expenses

-402.2

-3,716.1

-2,496.1 -1,664.5

Administrative expenses (Note 5)

-153.7

-1,420.1

-39.7

15.9

-14.2

-367.0

146.7

-131.2

-946.1

-233.3

105.4

-744.2

-151.7

98.5

-149.2

-150.4

Research and development costs

Other operating income

Other operating expenses

Operating income before
goodwill amortization (Note 2)

Adjustments for
non-cash items (Note 25)

4.7

43.0

-1.6

1.9

Cash ﬂow before interest and tax

439.7

4,062.8

2,703.8

1,862.6

Paid and received interest (Note 25)

Income tax paid

Cash ﬂow before changes in
working capital

-88.5

-58.1

-817.4

-537.1

-356.9

-453.2

-226.8

-197.8

293.1

2,708.3

1,893.7

1,438.0

341.9

3,159.2

2,107.2

1,382.4

Change in working capital (Note 25)

-8.3

-77.1

-94.3

-27.1

Goodwill amortization (Note 4)

Non-recurring items (Note 7)

-93.1

-18.0

-860.4

-166.0

-387.0

-189.0

Cash ﬂow from
operating activities

284.8

2,631.2

1,799.4

1,410.9

Operating income

230.8

2,132.8

1,720.2

1,193.4

INVESTING ACTIVITIES

Financial items (Note 8)

-71.9

-664.4

-330.6

-230.1

Acquisition/disposal of tangible
ﬁxed assets (Note 25)

-89.8

-829.9

-496.9

Investment in subsidiaries (Note 25)

-680.4

-6,286.9

-4,672.4

-390.2

-621.5

Share in earnings
of associated companies

0.8

7.2

12.4

Income before tax

159.7

1,475.6

1,402.0

Investment in associated companies
(Note 25)

Other investments (Note 25)

17.3

980.6

0.5

4.6

-3,9

-19.9

-398.4

Income tax (Note 9)

Other taxes

Minority interests

Net income

-50.4

-4.5

-2.1

102.7

-465.5

-443.8

-346.6

-41.9

-9.3

-1.3

-19.6

948.6

-33.8

915.1

-14.1

618.6

Earnings per share after tax and

before conversion, SEK*

Earnings per share after tax and

full conversion, SEK

2.99**

2.76

2.16***

2.98**

2.73

2.00***

Cash ﬂow from
investing activities

FINANCING ACTIVITIES

New share issues

Dividends paid

Net cash effect of
changes in borrowings

Cash ﬂow from
ﬁnancing activities

-769.7

-7,112.2

-5,189.2 -1,414.0

1,509.9

1,985.2

-34.4

-317.8

-237.5

-178.2

495.3

4,577.2

3,336.3 -1,713.6

460.9

4,259.4

4,608.7

93.4

Earnings per share after tax and full conversion

CASH FLOW (Note 25)

-24.0

-221.6

1,218.9

90.3

excluding goodwill, SEK

5.39**

3.88

2.61***

* The total number of shares, in thousands, used in the calculation is 353236 for 2001,

331813 for 2000 and 285880 for 1999.

** Excluding non-recurring items

*** Adjusted for changes in accounting principles

1) EUR/SEK rate 9.24

2) EUR/SEK rate 9.31

CHANGE IN NET DEBT

Net debt at 1 January2)

Cash ﬂow impact on net debt

Adjustment for acquired cash and
cash equivalents

Net debt in acquired companies

919.4

519.3

5.5

8.9

8,559.9

2,997.7

4,237.3

4,798.7

2,116.3 -1,803.9

50.7

82.2

2,328.8

1,142.8

514.9

49.4

Translation differences and other

215.4

2,042.7

-25.7

Net debt at 31 December2)

1,668.5 15,534.2

8,559.9

2,997.7

OPERATING CASH FLOW

Cash ﬂow from operating activities

284.8

2,631.2

1,799.4

1,410.9

Acquisition/disposal of tangible
ﬁxed assets (Note 25)

Adjustment for income tax paid

-89.8

58.1

-829.9

-496.9

-390.2

537.1

453.2

197.8

Operating cash ﬂow

253.1

2,338.4

1,755.6

1,218.5

56 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 57

Consolidated balance sheet

Assets

Equity and liabilities

Fixed assets

Intangible ﬁxed assets
Goodwill (Note 10)

31 Dec.
2001
EUR M2)

31 Dec.
2001
SEK M

31 Dec.
2000
SEK M

31 Dec.
1999
SEK M

1,758.4 16,371.0 12,077.9

3,245.8

Intangible rights (Note 11)

20.1

186.8

181.1

142.3

Shareholders’ equity (Note 15)

Restricted equity

Share capital

Restricted reserves

31 Dec.
2001
EUR M2)

31 Dec.
2001
SEK M

31 Dec.
2000
SEK M

31 Dec.
1999
SEK M

38.0

353.8

352.5

314.4

998.0

9,291.2

8,578.1

3,151.0

Total intangible
ﬁxed assets

Tangible ﬁxed assets (Note 12)

Buildings

Land and land improvements

Construction in progress

Machinery

Equipment

1,778.5 16,557.8 12,259.0

3,388.1

Total restricted equity

1,036.0

9,645.0

8,930.6

3,465.4

239.3

2,228.2

1,618.3

1,077.7

75.1

38.7

698.8

360.6

525.9

237.2

356.0

136.5

312.6

2,909.7

1,914.3

1,088.3

79.9

744.2

515.3

296.9

Unrestricted equity

Unrestricted reserves

Net income

Total unrestricted equity

133.7

102.7

236.4

1,252.0

813.3

1,184.7

948.6

915.1

618.6

2,200.6

1,728.4

1,803.3

Total equity

1,272.4 11,845.6 10,659.0

5,268.7

Total tangible ﬁxed assets

745.6

6,941.5

4,811.0

2,955.4

Minority interests

51.7

481.7

559.8

266.8

Financial ﬁxed assets (Note 13)

Shares in associated companies

Other shares and participations

Long-term receivables

Deferred tax receivables

Total ﬁnancial ﬁxed assets

2.4

5.1

12.7

40.7

60.9

22.8

47.5

118.2

378.3

566.8

59.8

7.3

44.2

351.7

463.0

169.0

330.2

29.0

278.3

806.5

Provisions

Provision for PRI pensions

6.7

62.6

Provision for other pensions

110.7

1,030.4

Deferred tax liabilities

Total provisions

38.5

358.3

155.9

1,451.3

1,250.3

58.9

910.1

281.3

55.8

550.8

333.7

940.3

Total ﬁxed assets

2,585.0 24,066.1 17,533.0

7,150.0

Long-term liabilities (Note 17)

Current assets

Inventories and work in
progress (Note 14)

Accounts receivable

Prepaid expenses and accrued income

Other receivables

Short term investments

Cash and bank balances

409.5

466.0

27.6

54.0

85.9

95.8

3,812.0

2,808.4

1,564.7

4,338.5

3,276.3

1,796.2

256.9

502.8

800.0

892.7

191.4

467.7

1,020.0

732.1

98.2

184.8

252.1

195.1

Total current assets

1,138.8 10,602.9

8,495.9

4,091.1

TOTAL ASSETS

3,723.8 34,669.0 26,028.9 11,241.1

ASSETS PLEDGED (Note 21)

Real estate mortgages

Chattel mortgages

5.2

0.0

48.3

0.3

2.0

1.8

24.0

2.1

Long-term loans

1,182.2 11,006.1

7,712.2

2,298.9

Convertible debenture loans (Note 19)

118.7

1,104.9

250.0

298.6

Other long-term non-interest-
bearing liabilities

1.8

16.3

3.0

2.8

Total long-term liabilities

1,302.7 12,127.3

7,965.2

2,600.3

Current liabilities

Short-term loans

Income tax liability

Accounts payable

Accrued expenses and
prepaid income (Note 20)

Other current liabilities

437.5

4,074.5

1,398.4

41.9

390.2

214.7

169.1

1,574.1

1,407.3

199.9

1,861.3

1,779.0

92.7

863.0

795.2

77.9

183.5

646.7

886.9

370.0

Total current liabilities

941.1

8,763.1

5,594.6

2,165.0

TOTAL EQUITY AND LIABILITIES

3,723.8 34,669.0 26,028.9 11,241.1

CONTINGENT LIABILITIES
(Note 22)

Guarantees

Other

37.3

0.2

347.7

462.9

2.2

165.8

112.7

2) EUR/SEK rate 9.31

A S S A A B L O Y / 2 0 0 1 • 5 7

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 58

Parent Company income statement and cash flow statement

Parent Company income statement

Parent Company cash ﬂow statement

2001
EUR M1)

2001
SEK M

2000
SEK M

-162.7

-168.7

Net income

667.1

504.4

108.0

-60.7

Depreciation (Note 4)
Income from the disposal of shares
in subsidiaries (Note 6)

Liquidation loss (Note 6)

Reversal of appropriations

Cash ﬂow before changes
in working capital

2001
EUR M1)

48.6

0.4

-20.7

34.9

-2.0

2001
SEK M

448.9

4.1

-192.1

322.6

-18.3

2000
SEK M

138.4

3.9

-8.4

61.2

565.2

133.9

348.8

-422.6

430.6

18.3

0.0

448.9

363.9

-173.1

130.1

8.4

-0.1

138.4

Current receivables increase/decrease (-/+)
Current operating liabilities
increase/decrease (+/-)

Changes in working capital

-26.6

-245.6

113.9

40.1

13.5

370.7

125.1

91.2

205.1

Cash ﬂow from operating activities

74.7

690.3

339.0

INVESTING ACTIVITIES

Investments in equipment

-0.5

-4.5

-5.8

Investments in subsidiaries

-399.4

-3,690.4

-8,758.6

Sales of shares in subsidiaries

298.7

2,759.9

Changes in other ﬁnancial ﬁxed assets

0.2

1.4

Cash ﬂow from investing activities

-101.0

-933.6

-8,764.4

FINANCING ACTIVITIES

New share issues

Dividends paid

Net cash effect from changes in borrowings

Cash ﬂow from ﬁnancing activities

-34.4

22.0

-12.4

1,518.2

-317.8

203.2

-114.6

-237,5

7,483.1

8,763.8

CASH FLOW

-38.7

-357.9

338.4

CASH AND CASH EQUIVALENTS

Cash and cash equivalents at 1 January 2)

Cash ﬂow

Cash and cash equivalents
at 31 December 2)

44.8

-38.7

416.9

-357.9

78.5

338.4

6.0

59.0

416.9

Administrative expenses (Notes 3, 5)

Other operating income

Operating income (Note 2)

Income from ﬁnancial investments:
Income from shares and participation
in subsidiaries (Note 6)

Financial items (Note 8)

Income before tax

Appropriations

Income tax

Net income

-17.6

72.2

54.6

37.7

-45.7

46.6

2.0

0.0

48.6

1) EUR/SEK rate 9.24

2) EUR/SEK rate 9.31

58 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 59

Parent Company balance sheet

Assets

Equity and liabilities

31 Dec.
2001
EUR M2)

31 Dec.
2001
SEK M

31 Dec.
2000
SEK M

31 Dec.
2001
EUR M2)

31 Dec.
2001
SEK M

31 Dec.
2000
SEK M

Shareholders' equity (Note 15)

Fixed assets

Tangible ﬁxed assets (Note 12)

Equipment

Total tangible ﬁxed assets

Financial ﬁxed assets (Note 13)

1.4

13.0

13.4

Restricted equity

Share capital

Share premium reserve

Statutory reserve

Shares in subsidiaries

2,215.4

20,625.4

19,825.5

Total restricted equity

Receivables due from subsidiaries

296.7

2,762.7

Other long-term receivables

Other ﬁnancial assets

0.3

4,4

3.1

40,8

368.7

42.2

Unrestricted equity

Retained earnings

Total ﬁnancial ﬁxed assets

2,516,8

23,432.0

20,236.4

Net income

Total ﬁxed assets

2,518.2

23,445.0

20,249.8

Total unrestricted equity

38.0

739.5

69.3

846.8

365.6

48.6

414.2

353.8

352.5

6,884.5

6,809.6

645.4

7,883.7

7,807.5

3,407.8

3,587.2

448.9

138.4

3,856.7

3,725.6

Total shareholders’ equity

1,261.0

11,740.4

11,533.1

Current assets

Receivables due from subsidiaries

871.5

8 113.8

12,254.0

Untaxed reserves (Note 16)

18.4

Other receivables

Prepaid expenses and accrued income

Other short-term investments

Cash and bank balances

Total current assets

6.1

17.5

17.2

5.5

57.1

162.7

160.6

51.1

48.5

187.3

490.6

79.2

Long-term liabilities

Long-term loans

Long-term loans due to subsidiaries

917.8

8,545.3

13,059.6

Convertible debenture loan (Note 19)

Corporate credit line (Note 18)

667.9

296.7

118.7

22.9

6,218.2

2,762.7

1,104.9

212.9

6,805.0

0.3

250.0

983.7

TOTAL ASSETS

3,436.0

31,990.3

33,309.4

Total long-term liabilities

1106.2

10,298.7

8,039.0

ASSETS PLEDGED

None

Current liabilities

Short-term loans

Accounts payable

Liabilities to subsidiaries
Accrued expenses and prepaid
income (Note 20)
Other current liabilities

43.7

2.0

406.4

18.3

171.8

25.5

1,007.6

9,381.9

13,364.8

13.2
2.3

122.8
21.8

155.4
1.4

Total current liabilities

1,068.8

9,951.2

13,718.9

TOTAL EQUITY AND LIABILITIES

3,436.0

31,990.3

33,309.4

CONTINGENT LIABILITIES (Note 22)

Guarantees

560.4

5,217.2

290.6

2) EUR/SEK rate 9.31

A S S A A B L O Y / 2 0 0 1 • 5 9

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 60

Accounting and valuation principles

The Group’s accounting and valuation
principles comply with Sweden’s
the
Annual Accounts Act and
standards of the Swedish Financial
Accounting Standards Council, in
accordance with the listing contract of
the Stockholm Stock Exchange.

The new Standard rr9 ‘Income
Taxes’ issued by the Swedish Financial
Accounting Standards Council has
been adopted from 1 January 2001,
which represents a change in account-
ing principles. All other accounting
principles
unchanged
remain
compared with the preceding year.

Consolidated accounts
The consolidated ﬁnancial statements
include the Parent Company and com-
panies in which the Parent Company
held more than 50 percent of the votes
at year-end, as well as companies in
which the Parent Company exercises
control by some other means.

The consolidated income state-
ment includes companies acquired
during the year, with values as from
the date of acquisition. The consoli-
dated ﬁnancial statements are pre-
pared in accordance with the purchase
method, which means that the acquisi-
tion value of shares in subsidiaries is
eliminated against their shareholders’
equity at the time of acquisition. In
this context, shareholders’ equity in
subsidiaries is determined on the basis
of the fair value of assets, liabilities
and provisions at the date of acquisi-
tion. If required in accordance with
the purchase method, an allocation is
made to a restructuring provision. In
the case of untaxed reserves
in
acquired subsidiaries, the estimated
tax liability is reported as a provision
in accordance with the tax rate in each
country. If the acquisition value of
shares in a subsidiary exceeds the
acquired shareholders’ equity as com-
puted above, the difference is reported
as goodwill, which
is amortized
according to plan. If the acquisition
value of shares in subsidiaries is less
than the acquired shareholders’ equity,

60 • A S S A A B L O Y / 2 0 0 1

a provision for negative goodwill
is made, which
in
accordance with a deﬁned plan.

is dissolved

Minority interests
Minority interests in the year’s income
statement and shareholders’ equity are
based on
subsidiaries’ accounts
prepared in accordance with the
Group’s accounting principles.

than

Associated companies
Associated companies are deﬁned as
companies which are not subsidiaries
but companies in which the Parent
Company has shareholdings which,
directly or indirectly, represent at least
20 percent of all participations.
Participations in associated companies
are reported in accordance with the
equity method. The consolidated
income statement includes shares in
the income before tax of associated
companies. In cases in which the
acquisition value of shares in associated
the
companies was higher
shareholders’ equity in the acquired
company at the acquisition date, the
difference is amortized on the same
basis as consolidated goodwill,
following an analysis of the character
of the surplus value, and is charged
against share in earnings of associated
companies. Participation
the
income tax of subsidiaries is included
in the Group’s tax expense. In the con-
solidated balance sheet, shareholdings
in associated companies are reported
at the acquisition value, adjusted
for dividends and participation in
income after the date of acquisition.
In determining the equity share,
untaxed reserves are attributed to
shareholders’ equity after deduction
for estimated tax.

Translation of
foreign subsidiaries
The Group applies the so-called
current method for translating the
accounts of all foreign subsidiaries
that are considered to operate with a

high degree of independence. The
current method has been applied so
that all balance sheet items except net
income are translated at the closing-
day rate. Net income is translated at
the average rate and the difference
arising thereby is taken directly to
unrestricted reserves. Subsidiaries’
income statements are translated at
the average rate for the ﬁnancial year.
Subsidiaries operating in high-
inflation countries, e.g. Romania,
are translated using the so-called
monetary method.

The Group hedges to a certain
extent its investment in foreign net
assets. Hedging
implemented
through loans and forward exchange
contracts. These are valued at the
exchange rate prevailing at year-end.
Exchange rate differences on hedging
operations, as well as differences that
arise when foreign net assets are trans-
lated, are carried directly to share-
holders’ equity in the balance sheet.

Interest differentials on forward
contracts are annualized and reported
in the income statement.

Exchange rates
The rates for currencies used in the
Group were as follows (average for
the year and rate at year-end):

Austria
Australia
Belgium
Bermuda
Brazil
Canada
Switzerland
China
Czech Republic
Germany
Denmark
Estonia
Spain
Euroland
Finland
France
Great Britain
Hong Kong
Hungary
Indonesia
Ireland

Average Year-end
rate
0.68
5.38
0.23
10.63
4.56
6.62
6.28
1.27
0.29
4.76
1.25
0.60
0.056
9.31
1.57
1.42
15.26
1.35
0.038
0.0010
11.82

rate
0.67
5.33
0.23
10.45
4.49
6.68
6.13
1.25
0.27
4.73
1.24
0.59
0.056
9.24
1.55
1.41
14.92
1.33
0.036
0.0010
11.73

ATS
AUD
BEF
BMD
BRL
CAD
CHF
CNY
CZK
DEM
DKK
EEK
ESP
EUR
FIM
FRF
GBP
HKD
HUF
IDR
IEP

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 61

Israel
India
Iran
Italy
Japan
Mauritius
Mexico
Malaysia
Nigeria
Netherlands
Norway
New Zealand
Poland
Portugal
Romania
Russia
Singapore
Slovakia
Thailand
USA
South Africa
Zimbabwe

Average Year-end
rate
2.39
0.22
0.0060
0.0048
0.080
0.35
1.15
2.77
0.088
4.23
1.17
4.38
2.65
0.046
0.00033
0.34
5.69
0.22
0.24
10.53
0.87
0.19

rate
2.46
0.22
0.0059
0.0048
0.085
0.36
1.11
2.72
0.091
4,19
1.15
4.33
2.53
0.046
0.00036
0.35
5.77
0.21
0.23
10.34
1.21
0.19

ILS
INR
IRR
ITL
JPY
MUR
MXN
MYR
NGN
NLG
NOK
NZD
PLN
PTE
ROL
RUR
SGD
SKK
THB
USD
ZAR
ZWD

Revenue recognition

Revenue recognition of sales of goods
is reported at the time of delivery to the
customer. All sales are reported less
vat, discounts, returns and freight.

Intra-Group sales

Pricing of deliveries between Group
companies is in accordance with busi-
ness principles and at market prices.
Internal proﬁts arising from intra-
Group sales have been eliminated.

Leasing

Only operational leasing occurs in the
Group. Reporting is in accordance
with Standard rr6 of the Swedish
Financial Accounting Standards
Council.

ciation period of ﬁve years has been
applied for intangible rights. Group
goodwill is amortized over 10-20
years, depending on the type of
company concerned. Goodwill in
well-established companies with inde-
pendent and well-known trademarks
is amortized over 10 years. Goodwill
in companies that, in addition, consti-
tute a strategic acquisition in terms of
products or markets is amortized over
20 years. The depreciation period for
ofﬁce buildings is 50 years, and 25
years for industrial buildings. A
depreciation period of 7-10 years is
applied to machinery and other
technical facilities. Equipment and
tools are depreciated over 3-6 years.

Taxation
All taxes that are expected to apply to
the income reported are accounted for
in the income statement. These taxes
have been estimated in accordance
with the tax regulations in each coun-
try and are reported as current year
tax. Costs and revenue that affect
both
the ﬁnancial statements and income
taxation but in different ﬁnancial
years are reported as deferred tax.

Deferred income taxes are account-
ed for under the balance sheet liability
method. Accordingly deferred tax is
accounted for on all temporary differ-
ences between the carrying amount of
an asset or liability and its tax base.
Deferred tax assets and liabilities are
measured at the tax rates that are
expected to apply to the period when
the asset is realized or the liability is
settled.

Research and development

Cash flow statement

Research and development costs are
expensed as they are incurred.

Depreciation
according to plan

Depreciation according to plan is
based on the historical cost of assets,
with due consideration of the estimat-
ed economic life of the asset. A depre-

The cash ﬂow statement has been
prepared according to the indirect
method. The reported cash ﬂow
includes only transactions involving
cash payments.

As well as cash and bank balances,
cash and cash equivalents are taken to
include short-term investments that

are exposed to only small risks of
change in value and have a maturity
date less than three months from the
date of acquisition.

Intangible and
tangible assets
Intangible and tangible assets are
reported at acquisition value after
deduction for accumulated deprecia-
tion according to plan.

Inventories
Inventories are valued at the lower
of cost and net realizable value in
accordance with the ﬁfo method.
Provisions have been made for
obsolescence. Deductions are made
for internal proﬁts arising from
deliveries between Group companies.
Work in progress and ﬁnished goods
include both direct costs incurred and
an allocation of indirect manufactur-
ing costs.

Receivables
Receivables have been valued in the
amounts expected to be received.

Receivables, liabilities
and provisions in foreign
currency
Receivables, liabilities and provisions
in foreign currency in individual com-
panies’ accounts have been translated
at the year-end rate. The forward rate
has been used when exchange rates
have been hedged by means of
forward contracts.

Provisions
Provisions have been made for all
obligations attributable to the ﬁscal
year or prior ﬁscal years which, on
the closing date, were likely to be
incurred, but which were uncertain as
to amount or date of payment. In
making provisions for pensions,
companies follow their country’s
local rules.

A S S A A B L O Y / 2 0 0 1 • 6 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 62

Financial risk management

assa abloy is exposed to a variety of
financial risks through its international
business operations.

Organization and activities
assa abloy’s ﬁnancial policy, which is
reviewed annually by the Board of
Directors, constitutes a framework of
guidelines and regulations for the
management of ﬁnancial risks and
ﬁnancial activities in general.

assa abloy’s ﬁnancial activities
are coordinated centrally within the
subsidiary assa abloy treasury s.a. in
Switzerland, which functions as the
Group’s internal bank. External ﬁnan-
cial transactions are conducted by the
internal bank, which also handles
transactions involving foreign curren-
cies and interest rates. The internal
bank achieves several economies of
scale, for example concerning pricing
of various interest rates.

Financing and liquidity risks
Financing and liquidity risks are
deﬁned as the risks of being unable to
meet payment obligations as a result
of inadequate liquidity or difﬁculties
in obtaining credit from external
sources. The internal bank is responsible
for external borrowing and external
investments. assa abloy strives to
have access, on every occasion, to
both short-term and long-term loan
facilities appropriate to its anticipated
needs for the year ahead, apart from
larger acquisitions.

Counterparty risks
Financial risk management exposes
assa abloy to certain counterparty
risks. This exposure arises,
for
instance, from the placement of
surplus cash and through the use of
derivative instruments. Group ﬁnancial
policy prescribes detailed rules for
handling counterparty risks.

62 • A S S A A B L O Y / 2 0 0 1

Interest-rate risk

Cash management

Interest-rate ﬂuctuations have a direct
impact on assa abloy’s net interests,
but there is also an indirect effect on
the Group’s operating income as a
result of the impact of interest rates on
the economy as a whole. The internal
bank is responsible for identifying and
managing the Group’s interest-rate
exposure. Interest duration in the
Group is generally short, with an aver-
age duration of less than a year. At
year-end, the average interest duration
was around 5 months.

Cash management in subsidiaries
focuses on minimizing operating
capital employed. The internal bank
manages a Group-wide netting system
to minimize the number of payment
transactions and related costs. In
countries with several operating
companies, surpluses and deﬁcits are
matched in the local subsidiaries at
country
level through cash pool
solutions. The internal bank manages
the investment or ﬁnancing of these
cash pools.

Financial derivative
instruments
Financial derivative instruments such
as currency and interest-rate forwards
are used to the extent necessary. The
object of using derivative instruments
is solely to reduce exposure to
financial risks. Financial derivative
instruments are not used with
speculative intent.

Currency risk
Currency risks affect assa abloy
mainly through translation of capital
employed and net debt, through
in foreign
translation of
subsidiaries, and through flow of
goods between countries (‘transaction
exposure’).

income

Translation exposure. The effect aris-
ing on translation of capital employed
is limited by the fact that ﬁnancing is
largely in local currency. The currency
exposure and gearing per currency in
the Group should generally reﬂect the
overall exposure and gearing for the
whole Group. This limits the effect
from movements in individual curren-
cies on the gearing for the Group.

Exposure of Group earnings. A gener-
al strengthening of the Swedish krona
by one percent has a negative impact
of about sek 240 m on Group sales
and sek 6 m on Group earnings.

Transaction exposure. Currency risks
in the form of transaction exposure, or
the relative values of exports and
imports of goods, are limited in the
Group. The exposure that does exist
relates in particular to VingCard’s
exports from Norway, chieﬂy to the
usa, and to Abloy’s exports from
Finland to the usa. assa abloy’s policy
is to keep transaction exposure within
a speciﬁed framework.

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 63

Notes:

Note 1. Sales by organizational unit1)

Scandinavia

Finland

Central Europe 2)

South Europe 3)

United Kingdom

North America

South Paciﬁc

New Markets 4)

Hotel locks

Identiﬁcation

Elimination for internal sales

2001
SEK M

1,971

1,165

1,432

2,905

1,545

9,682

841

1,764

1,056

1,043

-894

2000
SEK M

1,889

1,060

1,027

2,232

665

5,409

772

981

1,052

-693

1999
SEK M

1,777

898

575

1,682

270

3,721

590

354

965

-555

Total

22,510

14,394

10,277

1) Including exports from each market 2) Germany, the Netherlands, Switzerland and Austria
3) France, Belgium, Spain & Italy 4) Asia, eastern Europe, South America, Southern Africa & Israel

Audit

Note 2. Salaries and wages, other remu-
nerations and social costs
Salaries and wages, other remuneration (of which bonus)

Group

Sweden
Finland
Norway
Denmark
Germany
United Kingdom
Belgium
France
The Netherlands
Czech Republic
Canada
Australia
New Zealand
USA
China
Romania
Israel
Italy
Africa
Mexico
Spain
South America
Other

2001
SEK M
262.9 (2.7)
( - )
266.5
236.7 (0.8)
112.1 (0.7)
371.3
( - )
481.9 (0.7)
37.4 (0.5)
525.9 (2.5)
72.8 (0.3)
37.4 (0.1)
80.7 (0.5)
204.7 (0.4)
( - )
20.7
2,426.8 (14.1)
77.0 (1.1)
( - )
11.7
74.8
( - )
86.6 (0.1)
45.6 (0.0)
109.8 (0.2)
57.4 (0.2)
33.6 (0.2)
106.6 (0.5)

2000
SEK M
233.5 (2.2)
249.8 (0.8)
225.2 (0.4)
89.3 (0.3)
319.4 (0.4)
192.6 (1.7)
30.7 (0.2)
460.5 (2.0)
30.8 (0.3)
29.9 (0.1)
32.6 (0.5)
190.0 (0.1)
7.3
( - )
1,197.1 (8.8)
40.6 (0.1)
( - )
8.7
44.5
( - )
35.5 (0.2)
9.4
( - )
25.8 (0.3)

-
-

1999
SEK M
(1.5)
205.2
(0.5)
206.5
235.2 (0.6)
90.4 (0.2)
212.2
( - )
50.3 (0.1)
27.9 (0.1)
406.9 (1.0)
7.7
( - )
29.7 (0.5)
( - )
20.7
( - )
209.1

998.9 (4.0)
7.5 (0.3)
( - )
8.1
-
-
-
-
-
-

Senior executives' remuneration
The Chairman of the Board received in the course of the year a remuneration
of SEK 500,000 (180,000). This is decided by the Board within limits set by
the AGM. Total remuneration was set by the AGM at SEK 1.875.000
(810,000). The president was paid a salary and other remuneration of SEK
5,582,372 (4,734,000) during the year. In addition he has received a bonus of
SEK 1,400,000 (1,200,000).

The Chairman of the Board has no pension beneﬁts or severance pay agree-
ment. The basic security provided by the pension scheme for the President
and others in Group Management is provided on joining the ITP plan or
equivalent. In addition to this, the President and other senior executives have
the right to receive a pension at the earliest from when they reach the age of
60 years. The pension is based on the retiree's salary on retiring and is 70
percent of this salary between the ages of 60 and 65 and 50 percent after
the age of 65 and for the remainder of life. The President has a severance
pay agreement of 100 percent of his salary for 24 months. The compensation
is only payable where the President is dismissed by the company. Others in
Group Management have severance pay agreements of 100 percent salary
for up to 12 months.

Note 3. Fees paid to audit ﬁrms

Group
2001
SEK M

2000
SEK M

1999
SEK M

Parent Company
2001
2000
SEK M
SEK M

PricewaterhouseCoopers 20.1

Others
Other assignments

PricewaterhouseCoopers

Others

Total

5.0

4.8

4.0

33.9

13.7

2.6

10.6

3.7

30.6

10.6

1.1

7.5

2.9

22.1

2.3

2.6

4.9

1.2

2.2

3.4

Note 4. Depreciation and amortization

Group
2001
SEK M

860.4

31.8

491.4

216.6

119.8

Goodwill

Intangible rights

Machinery

Equipment

Buildings

Land and land improvements

1.1

2000
SEK M

387.0

28.5

359.1

146.4

64.2

1999
SEK M

189.0

23.0

275.5

108.0

71.8

Parent Company
2001
2000
SEK M
SEK M

4.1

3.9

Total

1,721.1

985.2

667.3

4.1

3.9

Note 5. Operational leasing agreements

Group Parent Company

86.4 (2.1)

68.0 (0.3)

Nominal value of agreed future leasing fees:

Leasing fee paid during the year:

Total

5,740.9 (25.6)

3,539.6 (20.5) 2,784.3 (9.1)

Parent Company
Sweden

38.0 (5.5)

29.7 (1.2)

21.7 (0.8)

Social costs (of which pensions)
Group

2001
SEK M

2000
SEK M

1999
SEK M

Due in 2002

Due in 2003

Due in 2004

Due in 2005

Due in 2006

Due in 2007 or later

1,720.7(325.9)

1,077.8 (209.9)

792.2 (155.4)

Total

Parent company
Sweden

19.1 (6.4)

12.2 (2.4)

11.8 (3.7)

A S S A A B L O Y / 2 0 0 1 • 6 3

2001
SEK M

139.3

145.3

100.6

73.7

54.2

43.5

83.2

500.5

2001
SEK M

5.9

5.7

6.0

34.5

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 64

Note 6. Income from partici-
pations in Group companies

Note 8. Financial items

Parent Company

Dividends

Group contribution

Liquidation loss
Income from disposal of
shares in subsidiaries

Total

2001
SEK M

191.2

288.1

-322.6

192.1

348.8

2000
SEK M

363.9

Note 7. Non-recurring items

Group

2001
SEK M

2000
SEK M

1999
SEK M

Estimated damages,

Merrimac

Total

166.0

Interest income, long-term investments

Dividends

Exchange rate differences, long-term investments 0.3

Interest income, other

76.4

Group

2001
SEK M

2.4

0.1

2000
SEK M

2.9

-6.3

27.0

1999
SEK M

1.4

-3.3

12.7

Exchange rate differences, receivables

2,706.4

1,145.2

130.7

Interest income from Group companies

Exchange rate differences from Group
companies, receivables

Interest expenses

-735.1

-345.1

Exchange rate differences, liabilities

-2,675.6

-1,153.2

Interest expenses from Group companies

Exchange rate differences from Group
companies, liabilities

Other ﬁnancial income

Other ﬁnancial costs

Total

Note 9. Tax

1.1

-40.4

-664.4

323.7

-324.8

-330.6

-242.6

-129.0

-230.1

Parent Company

2001
SEK M

2000
SEK M

49.1

13.8

617.8

388.3

871.3

-395.5

-512.4

-637.8

331.1

-235.6

-164.8

-281.5

-303.6

-99.4

2.3

-113.8

-422.6

-125.0

-173.1

Tax paid

Tax attributable to prior years

Deferred tax

Total

Group

2001
SEK M

2000
SEK M

1999
SEK M

-401.3

-426.4

-355.9

19.4

-83.6

15.7

-33.1

1.2

8.1

-465.5

-443.8

-346.6

Parent Company

2001
SEK M

2000
SEK M

0.0

-0.1

Explanation for the difference between nominal Swedish tax rates
and effective tax rates according to the income statement:

Percent

Swedish income tax rate

The effect of overseas tax rates

Non-deductible goodwill amortization

Other non-income-related taxes

Other

Group

2001

28.0

-10.7

18.2

2.9

-4.0

Tax rate according to the income statement 34.4

Deferred tax liabilities and deferred tax receivables are distributed according to the table below:

Deferred tax liabilities

Fixed assets

Inventory

Short-term receivables and liabilities

Deferred tax receivables

Fixed assets

Inventory

Short-term receivables and liabilities

Depreciation and amortization

Tax-deductible losses

314.2

36.2

7.9

358.3

4.4

6.0

164.7

142.4

60.8

378.3

64 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 65

2001
SEK M

13,252.8

4,263.6

10.9

985.9

2000
SEK M

3,943.9

8,948.0

360.9

1999
SEK M

3,045.8

838.2

14.9

45.0

Note 11. Intangible rights
Group

2001
SEK M

Acquisition cost 1 January

Purchases/acquisitions

Sales/disposals

Reclassiﬁcations

Translation differences

360.8

29.2

-4.5

-8.2

31.4

18,513.2

13,252.8

3,943.9

Accumulated acquisition cost 31 December

408.7

2000
SEK M

294.2

57.5

-10.6

19.7

360.8

1999
SEK M

277.6

21.6

-5.0

294.2

Note 10. Goodwill
Group

Acquisition cost 1 January

Purchases/acquisitions

Reclassiﬁcations

Translation differences

Accumulated acquisition
cost 31 December

Amortization 1 January

Amortization for the year

Translation differences

Accumulated amortization 31 December -2,142.2

-1,174.9

-860.4

-106.9

-698.1

-387.0

-89.8

-521.5

-189.0

12.4

-698.1

Net book value 31 December

16,371.0

12,077.9

3,245.8

Amortization 1 January

-179.7

-151.9

-133.9

Sales/disposals

Reclassiﬁcations

Amortization for the year

Translation differences

Accumulated amortization
31 December

3.1

4.1

-31.8

-17.6

9.5

-28.5

-8.8

-23.0

5.0

-221.9

-179.7

-151.9

Net book value 31 December

186.8

181.1

142.3

A S S A A B L O Y / 2 0 0 1 • 6 5

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 66

Note 12. Tangible ﬁxed assets

– buildings

Group

– land

2001
SEK M

2000
SEK M

1999
SEK M

Group

Acquisition cost 1 January

2,269.8

1,629.3

1,529.3

Acquisition cost 1 January

Purchases/acquisitions

Sales/disposals

Reclassiﬁcations

Translation differences

Accumulated
acquisition cost 31 December

633.8

-15.5

-19.2

172.4

582.8

-17.3

75.0

150.1

-1.2

31.8

-80.7

3,041.3

2,269.8

1,629.3

Purchases/acquisitions

Sales/disposals

Reclassiﬁcations

Translation differences

Accumulated
acquisition cost 31 December

Depreciation 1 January

-651.5

-551.6

-509.2

Depreciation 1 January

Sales/disposals

Reclassiﬁcations

Depreciation for the year

Translation differences

1.7

7.5

-119.8

-51.0

7.9

-64.2

-43.6

0.9

-71.8

28.5

Sales/disposals

Depreciation for the year

Translation differences

Accumulated depreciation 31 December

-813.1

-651.5

-551.6

2001
SEK M

532.9

147.6

-3.4

-1.4

31.6

2000
SEK M

357.9

163.3

1999
SEK M

329.6

48.1

1.1

11.7

-20.9

707.3

532.9

357.9

-7.0

-1.1

-0.4

-8.5

-1.9

-4.7

-0.3

-0.1

-7.0

-1.8

-0.2

0.1

-1.9

Net book value 31 December

2,228.2

1,618.3

1,077.7

The taxable value of the Group's Swedish buildings was SEK 53.0 M.

The taxable value of the Group's Swedish land was SEK 11.9 M.

Net book value 31 December

698.8

525.9

356.0

– machinery

Group

Acquisition cost 1 January

Purchases/acquisitions

Sales/disposals

Reclassiﬁcations

Translation differences

Accumulated acquisition
cost 31 December

2000
SEK M

3,316.3

1,065.0

-68.3

1999
SEK M

3,116.1

367.1

-36.7

– equipment

Group

2001
SEK M

Acquisition cost 1 January 1,109.6

Purchases/acquisitions

416.8

2000
SEK M

883.5

393.3

Sales/disposals

Reclassiﬁcations

-114.8

-209.1

5.8

1999
SEK M

802.2

139.8

-40.8

4.2

208,0

-130,2

Translation differences

109.6

41.9

-21.9

Parent Company

2001
SEK M

2000
SEK M

24.0

5.8

-4.1

19.6

6.4

-2.0

2001
SEK M

4,521.0

1,373.8

-338.3

27.8

382,9

5,967.2

4,521.0

3,316.3

Accumulated acquisition
cost 31 December

1,527.0 1,109.6

883.5

25.7

24.0

Depreciation 1 January

-2,606.7

-2,228.0

-2,065.6

Depreciation 1 January

-594.3

-586.6

-531.4

-10.6

Sales/disposals

Reclassiﬁcations

Depreciation for the year

Translation differences

280.9

-4.5

-491.4

-235.8

59.6

-359.1

-79.2

22.4

-275.5

90.7

Sales/disposals

Reclassiﬁcations

97.3

-3.7

163.9

36.1

-1.8

Depreciation for the year

-216.6

-146.4

-108.0

Translation differences

-65.5

-25.2

18.5

2.0

-4.1

-8.0

1.3

-3.9

Accumulated depreciation 31 December -3,057.5

-2,606.7

-2,228.0

Net book value 31 December

2,909.7

1,914.3

1,088.3

Accumulated depreciation
31 December

Net book value
31 December

-782.8

-594.3

-586.6

-12.7

-10.6

744.2

515.3

296.9

13.0

13.4

66 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 67

Note 13. Financial ﬁxed assets
Share holdings in subsidiaries

Org. number, reg. Ofﬁce

Number of shares

Share capital %

ASSA ABLOY Sverige AB

Timelox AB

ASSA ABLOY OY

ASSA ABLOY Norge a.s.

ASSA ABLOY Danmark A/S

ASSA ABLOY Deutschland GmbH

ASSA ABLOY France SAS

ASSA ABLOY Ltd, (UK)

C.E. Marshall (Wolverhampton) Ltd

Yale Security Products SpA

Mul-T-Lock Ltd

ASSA ABLOY Holdings (SA) Ltd

Trathﬁx Properties Proprietary Ltd

ASSA ABLOY Inc

Abloy Holdings Ltd

556061-8455 Eskilstuna

556214-7735 Landskrona

699.757 Joensuu

979207476 Moss

CVR 10050316 Herlev

HR B 66227 Berlin

412140907 R.C.S. Nanterre

2096505 Croydon

1233859 Willenhall

79370 Aprilia, Latina

520036583 Yavne

05736293/07 Robertsham

05/30556/06 Robertsham

39347-83 Salem, Oregon

1148165260 St Laurent, Can

ASSA ABLOY Australia Paciﬁc Pty Ltd

ACN 095354582 Oakleigh, Victoria

Lockwood Security Products Pty Ltd

ACN 086451907 Oakleigh, Victoria

ASSA ABLOY Lockwood Asia Pte Ltd

199804395K Singapore

Industrial Cerrajera Scovill, SA de C.V.

ICS961204HR7 Mexico D.F.

Grupo Industrial Phillips, S.A de C.V.

Lips Technology BV

ASSA ABLOY Innovation AB

Eskilstuna Nyckel AB

ASSA ABLOY Treasury S.A.

GIP980312169 Mexico

33274584 Amsterdam

556192-3201 Eskilstuna

556180-7156 Eskilstuna

1198-192123 Geneva

ASSA ABLOY Reinsurance S.A.

CH-660-1690000-9 Geneva

Whaig Ltd

ASSA ABLOY Asia Paciﬁc Ltd

Total

EC21330 Bermuda

53451 Hong Kong

Share holdings in associated companies

15,000

800,000

150,000

500

2,000,000

1,330,000

526,000

2,001

15,393,225

200,000

120

100

8,190,000

1,070

100,000

84,558,936

27,036,635

400

2,500

1,000

72,300,000

300,000

100,100

400,000

100

Org. number, reg. Ofﬁce

Number of shares

Share capital %

934372816 Bergen

00008028 Bogota

HR M71690 Mechelen

8727 Pavia

305

182682

145

Låsgruppen Wilhelm Nielsen AS

Cerraduras de Colombia Cerracol S.A

MAB Glass Europe NV

Renato Fattorini SRL

Others

Total

Note 14. Inventory

Group

Materials & inventory items
Work in progress
Finished goods
Paid in advance
Total

31 Dec. 2001
SEK M
1,027.2
1,209.2
1,554.8
20.8
3,812.0

31 Dec. 2000
SEK M
650.2
1,125.9
1,012.3
20.0
2,808.4

31 Dec. 1999
SEK M
419.3
574.0
559.9
11.5
1,564.7

Book value
SEK M

14.0

40.0

631.1

154.8

131.4

700.8

472.7

959.9

79.4

645.6

1,012.4

182.5

5.5

2,194.2

12.6

43.8

226.7

28.4

224.6

861.0

0.2

1.0

0.4

11,353.5

17.3

566.7

64.9

20,625.4

Book value
SEK M

13.1

2.8

2.6

1.2

3.1

22.8

A S S A A B L O Y / 2 0 0 1 • 6 7

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 68

Note 15. Shareholders equity

Group
31 Dec. 2001, SEK M

Opening balance 1 January 2001

Converted shares

Dividend

Transfers between restricted and
unrestricted reserves

Exchange difference for the year

Net income

Share
capital

352.5

1.3

Restricted
reserves

8,578.1

56.9*

656.2

Closing balance 31 December 2001

353.8

9,291.2

Unrestricted
reserves

1,728.4

-317.8

-656.2

497.6

948.6

2,200.6

Total

10,659.0

58.2

-317.8

497.6

948.6

11,845.6

* The amount raised through conversion has been reduced by SEK 18.0 M which represents the associated transaction costs.

Parent Company
31 Dec. 2001, SEK M

Opening balance 1 January 2001

Converted shares

Dividend

Net Income

Share capital

Premium reserve

Restricted reserves Unrestricted reserves

352.5

1.3

6,809.6

74.9

645.4

3,725.6

-317.8

448.9

3,856.7

Total

11,533.1

76.2

-317.8

448.9

11,740.4

Closing balance 31 December 2001

353.8

6,884.5

645.4

Total number of shares

at 31 December 2001

Series A shares

Series B shares

Total

Voting rights

Number of shares

191,753,230

334,576,089

526,329,319

19,175,323

334,576,089

353,751,412

Note 16. Untaxed reserves

Parent Company

SEK M

Difference between book depreciation
and planned depreciation

Proﬁt equalization reserve 1995

Proﬁt equalization reserve 1996

Total

31 Dec. 2001

31 Dec. 2000

3.2

11.4

3.8

18.4

Note 17. Long-term liabilities falling due for payment
later than ﬁve years after the ﬁnancial year
Group

SEK M

31 Dec. 2001

31 Dec. 2000

31 Dec. 1999

Liabilities to credit institutions

Other liabilities

Total

59.2

0.9

60.1

18.8

0.9

19.7

7.2

0.9

8.1

68 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 69

Note 18. Corporate credit line

Check credits for the Group were SEK 621.2 M (636.3) of which SEK 215.3 M (149.4) were used.

Note 19. Convertible debenture loans

SEK M

31 Dec. 2001

31 Dec. 2000

31 Dec. 1999

1,104.9

250.0

298.6

The convertible debenture loan 97/02 has a variable interest rate equivalent to the 12 month STIBOR less 0.25 percent.
The loan terms are from 8 December 1997 to 2 December 2002.

Convertible debenture loan 97/02 can be converted to Series B shares between 1 December 2000 and 15 November 2002 inclusive.
Full conversion of the convertible debenture loan, at a conversion rate of SEK 58.70, would give 4,258,944 shares.

INCENTIVE 2001 has a variable interest rate equivalent to 0,9* Euribor + 54 basis points. Conversion of the Convertible Bonds in INCENTIVE 2001 can
happen from October 2006. Full conversion, at a conversion rate of EUR 15.80 for Bond 1, EUR 19.00 for Bond 2, EUR 22.10 for Bond 3 and EUR
25.30 for Bond 4 would create 5,017,432 shares.The total Program amounts to EUR 100 M.

Note 20. Accrued expenses and prepaid income

Group

Parent Company

SEK M

31 Dec. 2001

31 Dec. 2000

31 Dec. 1999

31 Dec. 2001

31 Dec. 2000

Accrued expenses, personnel

Interest expenses

Other

Total

581.3

83.3

1,196.7

1,861.3

493.6

167.0

1,118.4

1,779.0

417.3

46.5

423.1

886.9

18.1

49.0

55.7

122.8

12.1

136.4

6.9

155.4

Note 21. Assets pledged
Group

SEK M

31 Dec. 2001

31 Dec. 2000

31 Dec. 1999

Relating to long-term liabilities
to credit institutions:

Real estate mortgages

Chattel mortgages

Total

48.3

0.3

48.6

2.0

1.8

3.8

24.0

2.1

26.1

Note 22. Contingent liabilities

SEK M

Guarantees

Guarantees on behalf of subsidiaries

Other

Total

Group

Parent Company

31 Dec. 2001

31 Dec. 2000

31 Dec. 1999

31 Dec. 2001

31 Dec. 2000

89.8

257.9

2.2

349.9

88.6

374.3

462.9

90.6

75.2

112.7

278.5

64.0

5,153.2

5,217.2

3.1

287.5

290.6

A S S A A B L O Y / 2 0 0 1 • 6 9

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 70

Note 23. Average number of employees per country, by gender

Group

Women

2001

2000

1999

457

439

263

132

443

908

912

430

420

1,955

1,469

364

238

245

739

127

10,017

Sweden

Finland

Norway

Denmark

Germany

United Kingdom

Belgium

France

The Netherlands

Czech Republic

Canada

Australia

New Zealand

USA

China

Romania

Israel

Italy

Africa

Mexico

Spain

South America

Other

Total

Parent Company

409

435

298

132

424

404

893

442

392

370

390

289

129

351

755

413

460

1,331

1,036

557

404

121

459

108

6,795

103

4,942

Men

2001

630

695

536

158

632

975

2000

1999

570

673

602

159

604

452

520

615

586

149

368

1,409

1,415

1,255

179

345

175

575

4,078

1,203

360

270

260

422

604

145

219

182

354

567

355

603

2,784

2,364

416

362

185

103

107

143

163

399

155

7,712

14,194

10,086

Total

2001

1,087

1,134

799

290

1,075

1,883

130

2,321

254

775

226

995

103

6,033

2,672

724

350

498

667

1,343

228

315

309

2000

979

1,108

900

291

1,028

856

133

1999

890

1,005

875

278

719

149

117

2,308

2,010

118

796

959

4,115

973

766

263

189

164

264

165

271

768

1,063

3,400

858

258

24,211

16,881

12,654

Sweden

Note 24. Cash and cash equivalents

SEK M
Cash and bank balances
Short-term investments
Cash and cash equivalents

Group

2001
892.7
525.7
1,418.4

2000
732.1
747.4
1,479.5

1999
195.1
1.1
196.2

Parent Company

2001
51.1
7.9
59.0

2000
79.2
337.7
416.9

Short-term investments in the Consolidated balance sheet at the end of the ﬁnancial year were
SEK 800.0 M (1,020.0), of which SEK 274.3 M (272.4) were non-realizable receivables with a term to
maturity of more then three months and investments in securities. These items are not classiﬁed as
cash or cash equivalents and are not included in the above table.

Short-term investments in the Parent Company were SEK 160.6 M (490.6).

70 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 71

Note 25. Cash ﬂow
Group

Adjustment for non-cash items
Sale of ﬁxed assets
Change in provisions for pensions
Adjustment for non-cash items

Paid and received interest

Paid interest
Received interest
Paid and received interest

Change in working capital

Inventory increase/decrease (-/+)
Accounts receivable increase/decrease (-/+)
Other receivables increase/decrease (-/+)
Trade and other payables increase/decrease (+/-)
Change in working capital

Purchase of tangible ﬁxed assets

Purchase of tangible ﬁxed assets
Sale of tangible ﬁxed assets
Purchase of tangible ﬁxed assets

Investments in subsidiaries

Acquired capital employed
- whereof goodwill
Acquired minority share holdings
Less acquired net debt
Less minority interests acquired
Total purchase price
Less acquired cash
Less purchase price not yet paid
Less paid with own shares
Less reclassiﬁcation from shares in associated companies
Less reclassiﬁcation from other shares
Less purchase price received for sold companies
Less/Additional unpaid parts of purchase price from previous years

Investments in subsidiaries

Investments in associated companies

Investments in associated companies
Investments in associated companies

Other investments

Investments in other shares and participations
Investment and sale of other ﬁnancial assets
Other investments

Cash and cash equivalents

Cash and cash equivalents at 1 January
Cash ﬂow
Effect of exchange rate differences

Cash and cash equivalents at 31 December (Note 24)

2001
SEK M
-
43.0
43.0

SEK M
2001
-883.2
65.8
-817.4

SEK M
2001
170.2
310.4
-30.9
-526.8
-77.1

SEK M
2001
-986.1
156.2
-829.9

SEK M
2001
6,874.7
4,263.6
446.5
-82.2
-259.4
6,979.6
-50.7
-163.0
-
-53.5
-
-
-425.5

6,286.9

SEK M
2001
-
-

SEK M
2001
-
4.6
4.6

SEK M
2001
1,479.5
-221.6
160.5

1,418.4

2000
SEK M
-2.0
0.4
-1.6

SEK M
2000
-387.3
30.4
-356.9

SEK M
2000
-41.0
14.1
-56.3
-11.1
-94.3

SEK M
2000
-604.3
107.4
-496.9

SEK M
2000
12,172.6
8,414.1
-
-1,142.7
-249.3
10,780.6
-2 328.9
-107.8
-2,865.9
-114.0
-330.4
-396.0
34.8

4,672.4

SEK M
2000
-
-

SEK M
2000
-
-19.9
-19.9

SEK M
2000
196.2
1,218.9
64.4

1,479.5

1999
SEK M
-0.9
2.8
1.9

SEK M
1999
-230.0
3.3
-226.8

SEK M
1999
-3.7
-111.3
-17.1
105.0
-27.1

SEK M
1999
-432.2
42.0
-390.2

SEK M
1999
1,440.4
838.2
-
-514.9
-208.6
716.8
-60.5
-34.8
-
-
-
-
-

621.5

SEK M
1999
-3.9
-3.9

SEK M
1999
-338.8
-59.6
-398.4

SEK M
1999
121.4
90.3
-15.5

196.2

A S S A A B L O Y / 2 0 0 1 • 7 1

31998_ASSA_Siffror_E_DS 02-03-14 13.25 Sida 72

Audit report:

To the General Meeting of the shareholders
of assa abloy ab (publ.)
Corporate identity number 556059-3575

I have audited the annual accounts, the consolidated accounts,
the accounting records and the administration of the Board of
Directors and the President of assa abloy ab (publ.) for the
ﬁnancial year 2001. These accounts and the administration of
the Company are the responsibility of the Board of Directors
and the President. My responsibility is to express an opinion
on the annual accounts, the consolidated accounts and the
administration based on my audit.

I conducted my audit in accordance with generally accepted
auditing standards in Sweden. Those standards require that I
plan and perform the audit to obtain reasonable assurance
that the annual accounts and the consolidated accounts are
free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclo-
sures in the accounts. An audit also includes assessing the
accounting principles used and their application by the Board
of Directors and the President, as well as evaluating the over-
all presentation of information in the annual accounts and the
consolidated accounts. As a basis for my opinion concerning
discharge from liability, I examined signiﬁcant decisions,
actions taken and circumstances of the Company in order to
be able to determine the liability, if any, to the Company of
any Board member or the President. I also examined whether
any Board member or the President has, in any other way,
acted in contravention of the Companies Act, the Annual
Accounts Act or the Articles of Association. I believe that my
audit provides a reasonable basis for my opinion set out
below.

The annual accounts and the consolidated accounts have
been prepared in accordance with the Annual Accounts Act
and, thereby, give a true and fair view of the Company’s and
the Group’s ﬁnancial position and results of operations in
accordance with generally accepted accounting principles in
Sweden.

I recommend to the General Meeting of shareholders that
the income statements and balance sheets of the Parent
Company and the Group be adopted, that the proﬁt for the
Parent Company be dealt with in accordance with the
proposal in the administration report and that the members of
the Board of Directors and the President be discharged from
liability for the ﬁnancial year.

Stockholm 9 February 2002

Anders Lundin
Authorized Public Accountant
PricewaterhouseCoopers AB

72 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 73

ASSA ABLOY’s Board of Directors

Georg Ehrnrooth
Chairman
Born 1940.
Master of Science (Engineering).
Board Chairman: Varma-Sampo Mutual Pension Insurance
Co and Vice Chairman of Rautaruukki Oyj.
Board Member: Wärtsilä Oyj Abp, Nokia Oyj Abp, Sampo
Oyj Abp, Sandvik AB and Oyj Karl Fazer Abp.
Member of the ASSA ABLOY Board since 1994.
Holdings through company: 251,680 Series B shares.

Gustaf Douglas
Born 1938.
MBA, Harvard Business School.
Principal owner of Latour and SäkI.
Board Chairman: Latour AB, Fagerhult, Boxholms Skogar AB,
Stockholm Chamber of Commerce, SäkI AB and IFS AB.
Vice Chairman: Attendo Senior Care and Securitas AB.
Board Member: The Svenska Dagbladet Foundation.
Member of the ASSA ABLOY Board since 1994.
Holdings through Investment AB Latour: 20,400,000 Series
B shares. Through SäkI AB: 7,118,818 Series A shares and
986,000 Series B shares.

Göran J. Ehrnrooth
Born 1934.
Master of Science, Economics.
Board Chairman: Fiskars Oyj Abp.
Board Member: Wärtsilä Oyj Abp.
Member of the ASSA ABLOY Board since 1999.
Holdings: nil.

Carl-Henric Svanberg
President & CEO
Born 1952.
Master of Science, Bachelor of Economics.
President & CEO of the ASSA ABLOY Group since
the Group was formed.
Board Member: Hexagon AB.
Member of the ASSA ABLOY Board since 1994.
Holdings: 3,906,471 Series B shares and convertibles
corresponding to 442,725 Series B shares.

Gösta Johnsson
Born 1942.
Union trustee at Assa AB, employee representative,
Federation of Salaried Employees in Industry and Ser-
vices. Chairman of EWC within ASSA ABLOY since 1996.
Member of the ASSA ABLOY Board since 1997.
Holdings: convertibles corresponding to 6,432 Series B
shares.

Deputy members

Lisbeth Staaf
Born 1955.
Union trustee at FIX AB.
Board Member: Medichus AB.
Member of the ASSA ABLOY Board since 1999.
Holdings: nil.

Melker Schörling
Vice Chairman
Born 1947.
Master of Business Administration.
Board Chairman: Securitas AB, Hexagon AB,
Karlshamns AB and Attendo Senior Care.
Board Member: Cardo AB, Hennes & Mauritz AB,
Skandia AB.
Member of the ASSA ABLOY Board since 1994.
Holdings privately and through company: 1,510,080
Series A shares and 10,499,930 Series B shares.

Per-Olof Eriksson
Born 1938.
Master of Engineering, Doctor of Technology, Hon. Bachelor.
Board Chairman: Svenska Kraftnät, Thermia AB, Odlander,
Fredriksson & Co and Sapa AB.
Board Member: Sandvik AB, AB Custos,
Svenska Handelsbanken, SSAB Svenskt Stål AB, Preem
Petroleum AB, Skanska AB, and AB Volvo.
Member of the Royal Swedish Academy of Engineering Sciences.
Member of the ASSA ABLOY Board since 1995.
Holdings directly and through company: 4,567 Series B shares
and convertibles corresponding to 6,520 Series B shares.

Sven-Christer Nilsson
Born 1944.
Bachelor of Science.
Partner in Startupfactory, a venture capital company.
Board Chairman: Utfors AB.
Board Member: Traction AB, Parthus Technologies plc
(Ireland), Northstream AB and Establish AB.
Member of the ASSA ABLOY Board since 2001.
Holdings: nil.

Mats Persson
Born 1955.
Union trustee at Assa AB, employee representative,
Swedish Metal Workers Union.
Member of the ASSA ABLOY Board since 1994.
Holdings: nil.

Per-Edvin Nyström
Born 1955.
Union trustee at Assa Industri AB, employee representative, Swedish
Metal Workers Union. Member of the ASSA ABLOY Board since
1994. Holdings: 1,207 Series B shares and convertibles
corresponding to 6,426 Series B shares.

Auditor: Anders Lundin
Born 1956.
Authorized Public Accountant, PricewaterhouseCoopers AB.
Auditor for the Assa Group since 1988 and for ASSA ABLOY since 1994.

A S S A A B L O Y / 2 0 0 1 • 7 3

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 74

From left: Eero Leskinen, Hans Johansson, Anna Bernsten, Åke Sund, Matti Virtaala, Bo Dankis, Carl-Henric Svanberg, Clas Thelin, Göran Jansson, Geoff Norcott and Ulf Södergren.

Other members of Group Management

Dag Schjerven
Born 1954.
Master of Business Administration
President of VingCard a.s. and head
of the VingCard Group. Employed
since October 1999.
Holdings: convertibles corresponding
to 112,500 Series B shares.

C.K. Jeang
Born 1955.
Master of Business Administration
and Science in Engineering.
President and CEO for ASSA ABLOY
Asia Limited.
Employed since August 2000.
Holdings: convertibles corresponding
to 32,500 Series B shares.

Thanasis Molokotos
Born 1958.
Master of Science.
President and CEO of ASSA ABLOY
North America Architectural
Hardware Group. Employed since 1996.
Holdings: 30,000 Series B shares and
convertibles corresponding to
95,000 Series B shares.

74 • A S S A A B L O Y / 2 0 0 1

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 75

ASSA ABLOY’s Group Management
Executive Management and Group Vice Presidents

Matti Virtaala
Born 1951.
Bachelor of Science (Engineering).
President of Abloy Oy and Responsible for Finland.
Group Vice President of ASSA ABLOY.
Employed since the Group was formed.
Board Member: Tulikivi Oyj and GWS
Systems Oy.
Holdings: 438,058 Series B shares and convertibles
corresponding to 66,513 Series B shares.

Clas Thelin
Born 1954.
Master of Science.
Responsible for ASSA ABLOY North America Inc.
Group Vice President of ASSA ABLOY.
Employed since the Group was formed.
Holdings: 218,971 Series B shares and convertibles
corresponding to 66,513 Series B shares.

Ulf Södergren
Born 1953.
Master of Science, Bachelor of Economics.
Group Vice President of ASSA ABLOY, Operations.
Employed since May 2000.
Holdings: Convertibles corresponding to 140,000
Series B shares.

Geoff Norcott
Born 1947.
Hon. Bachelor of Engineering (Industrial), 1st Class.
Responsible for ASSA ABLOY UK and ASSA ABLOY
South Paciﬁc.
Group Vice president of ASSA ABLOY
Employed since August 2000.
Holdings: Convertibles corresponding to 142,069 Series B
shares.

Anna Bernsten
Born 1961.
Master of Science.
Vice President of ASSA ABLOY, Corporate
Communications.
Employed since October 2000.
Holdings: 665 Series B shares and convertibles
corresponding to 15,000 Series B Shares.

Carl-Henric Svanberg
Born 1952.
Master of Science, Bachelor of Economics.
President & CEO of the ASSA ABLOY Group since the
Group was formed.
Board Member: Hexagon AB.
Member of the ASSA ABLOY Board since 1994.
Holdings: 3,906,471 Series B shares and convertibles
corresponding to 442,725 Series B shares.

Bo Dankis
Born 1954.
Master of Science.
Responsible for ASSA ABLOY South Europe.
Group Vice President of ASSA ABLOY.
Employed since 1997.
Holdings: 86,000 Series B shares and convertibles
corresponding to 11,888 Series B shares.

Göran Jansson
Born 1958.
Graduate Diploma in Business Administration.
Chief Financial Ofﬁcer.
Employed since 1997.
Holdings: 331,600 Series B shares and convertibles
corresponding to 66,513 Series B shares.

Hans Johansson
Born 1955.
Master of Science.
Responsible for ASSA ABLOY Scandinavia.
Group Vice President of ASSA ABLOY.
Employed since the Group was formed.
Holdings: 640,000 Series B shares and convertibles
corresponding to 66,513 Series B shares.

Eero Leskinen
Born 1956.
Master of Science.
Responsible for ASSA ABLOY Central Europe.
Group Vice President of ASSA ABLOY.
Employed since the Group was formed.
Holdings through company: 729,745 Series B shares and
convertibles corresponding to 66,513 Series B shares.

Åke Sund
Born 1957.
Graduate Diploma in Marketing.
Group Vice President of ASSA ABLOY, Market
Development and Emerging Markets.
Employed since the Group was formed.
Holdings: 234,231 Series B shares and convertibles
corresponding to 66,513 Series B shares.

Tzachi Wiesenfeld
Born 1958.
Master of Business Administration
BSc (Bachelor of Science) in
Industrial Engineering.
President and CEO of Mul-T-Lock
in Israel.
Employed since 1999.
Holdings: nil

Joseph J. Grillo
Born 1957.
Bachelor of Finance and Economics.
President and CEO of ASSA ABLOY
Identiﬁcation Technology Group.
Employed since 2001.
Holdings: convertibles corresponding
to 32,500 Series B Shares.

A S S A A B L O Y / 2 0 0 1 • 7 5

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 76

Addresses:

HEAD OFFICE:
ASSA ABLOY AB
P.O. Box 70340 (Klarabergsviadukten 90)
107 23 Stockholm, Sweden
Tel: +46 8 506 485 00
Fax: +46 8 506 485 85

Asia
ASSA ABLOY ASIA PACIFIC LTD
1314 Park-In Commercial Centre
56 Dundas Street, Mongkok
Kowloon, Hong Kong
Tel: +852 2260 7220
Fax: +852 2834 7943

ASSA ABLOY Hong Kong
1314 Park-In Commercial Centre
56 Dundas Street, Mongkok
Kowloon, Hong Kong
Tel: +852 2260 7220
Fax: +852 2834 7943

ASSA ABLOY Malaysia Sdn Bhd
No. 1 & 3, Ground & Second Floor Jalan 2/27F
Kuala Lumpur Satellite Centre (KLSC)
Section 5, Wangsa Maju
53300 Kuala Lumpur
Tel +60-3-4142 8622
Fax +60-3-4142 9622

ASSA ABLOY Singapore PTE LTD.
Blk 211 Henderson Road
#12-04 Henderson Ind. Park
Singapore 159552
Tel: +65 274 48 68
Fax: +65 274 53 57

ASSA ABLOY Thailand Ltd
4 Soi Pattanakarn 41, Pattanakarn Rd.
Kwang Suanluang
0250 City Khet Suanluang
Bangkok
Tel +662-722 737 /ext. 1-4
Fax +662-722-737 /ext. 5-6

Australia
ABLOY SECURITY PTY LTD
Unit 5, 372 Eastern Valley Way
Chatswood, NSW 2068
Tel: +61 2 9882 6066
Fax: +61 2 9882 6050

LOCKWOOD SECURITY PRODUCTS PTY LTD
P.O. Box 42
Oakleigh
Victoria 3166
Tel: +61 3 8574 3888
Fax: +61 3 8574 3400

TRIMEC TECHNOLOGY PTY LTD
5/23 Resolution Drive
Caringbah, NSW 2229
Tel: +61 2 9524 0911
Fax: +61 2 9525 7390

Belgium
DUPÉRAY S.A
Rue van Ysendijck 48-50
1030 Brussels
Tel: +32 2 247 79 11
Fax: +32 2 216 17 49

76 • A S S A A B L O Y / 2 0 0 1

LITTO N.V.
Canadalaan 73
8620 Nieuwpoort
Tel: +32 58 23 41 01
Fax: +32 58 23 89 64

Brazil
LA FONTE SISTEMAS DE
SEGURANCA LTDA
Rua Augusto Ferreira de Moraes,
618 – Socorro
CEP 04763-001
São Paulo
Tel: +55 11 5693 4700
Fax: +55 11 5521 9803

Canada
ASSA ABLOY OF CANADA
3475 14th Avenue
Markham, Ontario L3R 0H4
Tel: +1 905 940 2040
Fax: +1 905 940 3242

ABLOY CANADA Inc.
9630 Trans Canada Hwy.
Montreal, QC H4S 1V9
Tel: +1 514 335 9500
Fax: +1 514 335 0430

FLEMING DOOR PRODUCTS LTD
20 Barr Road
Ajax, Ontario L1S 3X9
Tel: +1 905 683 3667
Fax: +1 905 427 1668

MEDECO CANADA
545 Parkside Drive
Waterloo, Ontario N2L 5E7
Tel: +1 519 888 7000
Fax: +1 519 888 6134

YALE-CORBIN CANADA LIMITED
6940 Edwards Blvd.
Mississauga, Ontario L5T 2W2
Tel: +1 905 564 5854
Fax: +1 905 564 8182

China
ASSA ABLOY ASIA PACIFIC LTD
Room 1314 Park-In Commercial Centre
56 Dundas Street, Mongkok
Kowloon, Hong Kong
Tel: +852 2260 7220
Fax: +852 2834 7943

GULI SECURITY PRODUCTS LIMITED
33-35 Chrysanthemum Road East
Xiaolan, Zhongshan
Guangdong 528415
Tel: +86 760 210 2326
Fax: +86 760 210 0316

Czech Republic
FAB A.S
Strojnická 633,
516 21 Rychnov nad Kneznov
Tel: +420 445 511 111
Fax: +420 445 534 641

ABLOY CZECH S.R.O
Kounicka 70
100 00 Praha 10
Tel: +420 2 74 822 585
Fax: +420 2 74 822 540

Denmark
FIX A/S
Baunehøjvej 9
8600 Silkeborg
Tel: +45 86 81 61 22
Fax: +45 86 81 00 26

RUKO A/S
Postboks 505
2730 Herlev
Tel: +45 44 54 44 54
Fax: +45 44 54 44 44

RUKO SERVICE A/S
Postbox 505
Marielundvej 20
2730 Herlev
Tel: +45 44 54 44 54
Fax: +45 44 54 44 44

M. SLOTH & CO. A/S
Marielundsvej 20
2730 Herlev
Tel: +45 36 41 28 88
Fax: +45 44 54 44 44

Estonia
ABLOY OY EESTI FILIAAL
Pärnu mnt. 139 F
113 17 Tallinn
Tel: +372 6 50 45 90
Fax: +372 6 50 45 91

ASSABALT LTD
Valdeku 132,
112 16 Tallinn
Tel: +372 6 559 101
Fax: +372 6 559 100

Finland
ABLOY OY
P.O. Box 108
80101 Joensuu
Tel: +358 13 2501
Fax: +358 13 250 2209

BJÖRKBODA LÅS OY AB
25860 Björkboda
Tel: +358 2 424 402
Fax: +358 2 424 249

France
ASSA ABLOY SOUTH EUROPE
BP 524
10081 Troyes, Cedex
Tel: +33 3 25 42 30 71
Fax: +33 3 25 43 40 04

BEZAULT S.A
25, rue Michel-Couet
49160 Longué Jumelles
Tel: +33 2 41 53 21 00
Fax: +33 2 41 38 81 45

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 77

FICHET SERRURERIE BATIMENT
B.P. 1080
76260 Eu
Tel: +33 3 22 61 27 00
Fax: +33 3 22 61 27 27

JPM S.A.
40 Route de Paris
Avermes
03021 Moulins Cedex
Tel: +33 4 70 48 40 00
Fax: +33 4 70 48 40 96

LAPERCHE S.A
B.P 5
80531 Friville Cedex
Tel: +33 3 22 60 31 00
Fax: +33 3 22 30 17 18

STREMLER S.A.
Route Nationale
80860 Nouvion-en-Ponthieu
Tel: +33 3 22 23 76 00
Fax: +33 3 22 23 76 09

VACHETTE S.A
BP 524
10081 Troyes Cedex
Tel: +33 3 25 42 30 30
Fax: +33 3 25 42 40 04

Germany
ASSA-RUKO SICHERHEITSSYSTEME GMBH
Vogelsanger Strasse 187
50825 Köln
Tel: +49 221 54 30 76
Fax: +49 221 54 18 95

BAB-IKON GMBH SCHLIESSTECHNIK
Postfach 600419
14404 Potsdam
Tel: +49 331 288 80
Fax: +49 331 288 8106

IKON AG PRÄZISIONSTECHNIK
P.O.Box 370220, 14132 Berlin
Tel: +49 30 810 60
Fax: +49 30 810 626 00

EFFEFF FRITZ FUSS GMBH & CO.
Postfach 100490
72425 Albstadt-Ebingen
Tel: +49 7431 123 0
Fax: +49 7431 123 240

KESO DEUTSCHLAND GMBH
Maurerstrasse 6
21244 Buchholz i.d.N.
Tel: +49 4181 9240
Fax: +49 4181 924 100

WILHELM DÖRRENHAUS GMBH
Postfach 100180
42501 Krone bei Velbert
Tel: +49 2056 98 270
Fax: +49 2056 98 2798

Hungary
ASSA ABLOY HUNGARY KFT.
1125 Budapest
Kútvölgyi út. 23
Tel: +36 1 214 1622
Fax: +36 1 214 1623

Israel
MUL-T-LOCK ISRAEL LTD.
P.O. Box 637
Yavne 81104
Tel: +972 8 9424 333

Italy
MAB MASELLIS INDUSTRIALE S.P.A.
Via Del Tuscolano 6
401 28 BOLOGNA
Tel: +39 051 321 567
Fax: +39 051 325 108

NUOVA F.E.B. S.R.L.
Via Seragnoli, 7
401 38 BOLOGNA
Tel: +39 051 60300 11
Fax: +39 051 60137 81

YALE CORNI SISTEMI DI SICUREZZA S.P.A.
Viale delle Nazioni 66
411 00 Modena
Tel: +39 059 413 111
Fax: +39 06 928 945 80

YALE SECURITY GROUP ITALY
Via dei Rutuli 74/76
040 11 Aprilia (LT)
Tel: +39 06 928 941
Fax: +39 06 928 945 80

Mexico
GRUPO INDUSTRIAL PHILLIPS S.A. DE C.V.
16 de Septiembre 105
553 70 Naucalpan
Tel: +52 21 22 0512
Fax: +52 5 576 5402

TESA S.A. DE C.V.
Avenida 8 de Julio
No. 2722 Zona Industrial (Z.I.)
Gualadajara, Jalisco C.P. 44940
Tel: +52 33 3668 0110

YALE SECURITY MEXICO
Viaducto Rio de La Piedad, 525-A
Colonia Granjas
Mexico 8400 D.F. Mexico
Tel: +52 55 58 030800
Fax: +52 55 58 030872

Netherlands
AMBOUW B.V
Postbox 199
3870 CD Hoevelaken
Tel: +31 33 25 35 014
Fax: +31 33 25 35 064

LIPS NEDERLAND B.V.
P.O. Box 59
3300 AB Dordrecht
Tel: +31 78 639 4041
Fax: +31 78 639 4605

New Zealand
INTERLOCK GROUP LIMITED
P.O. Box 15
6, Portsmouth Road
103, Miramar, Wellington
Tel: +64 4 388 8355
Fax: +64 4 388 8353

LOCKWOOD ARROW N.Z
9B Mahunga Drive,
Mangere Bridge, Auckland,
Tel: +64 9 634 5590
Fax: +64 9 634 5589

Norway
ELSAFE INTERNATIONAL A.S.
7120 Leksvik
Tel: +47 74 85 35 00
Fax: +47 74 85 80 30

LÅSGRUPPEN A.S
PB 454 Brakerøya
3002 Drammen
Tel: +47 32 80 98 00
Fax: +47 32 80 98 52

TRIOVING A.S
Postboks 510 Høyden
1522 Moss
Tel: +47 69 24 52 00
Fax: +47 69 24 52 50

VINGCARD A.S (HEADQUARTERS)
P.O. Box 511
1411 Kolbotn
Tel: +47 66 81 40 00
Fax: +47 66 81 40 50

VINGCARD PRODUKSJON
P.O. Box 511
1522 Moss
Tel: +47 69 24 50 00
Fax: +47 69 24 50 50

Poland
ASSA ABLOY POLAND SP. ZO.O.
ul Warszawska 76
05-092 Lomianki
Tel: +48 22 751 40 25
Fax: +48 22 751 53 56

Portugal
ASSA PORTUGUESA, LDA
Avenida da Quinta Grande, 89D
Alfragide (Norte)
2720-483 Amadora
Tel: +351 21 471 96 23
Fax: +351 21 471 96 25

Romania
S.C. ASSA ABLOY ROMANIA S.R.L.
Str, Mircea Cel Batran, Nr 30-34
2200 Brasov
Tel: +40 68 420 131
Fax: +40 68 420 131

S.C. URBIS SECURITY S.R.L.
Preciziei Street, No. 5, B-Dul, Sector 6
77562 Bucharest
Tel: +40 1 434 0945
Fax: +40 1 221 1578

A S S A A B L O Y / 2 0 0 1 • 7 7

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 78

Russia
ABLOY OY REPR. OFFICE
Visiting address: Prospekt Vernadskogo 78 E
117454 Moscow
Tel: +7 095 937 5090
Fax: +7 095 937 5091
Mail address: ABLOY OY MOSCOW
P.O. Box 335
535 01 Lappeenranta, Finland

Slovak Republic
FAB SLOVAKIA S.R.O. - Projects Division
Skolská 14
811 07 Bratislava
Tel: +421 2 434 139 93
Fax: +421 2 434 139 93

ABLOY SLOVAKIA S.R.O.
Caratovski 26 A
841 02 Bratislava
Tel: +421 2 434 139 93
Fax: +421 2 434 139 93

South Africa
ASSA ABLOY (SA) (PTY) LTD
P.O. Box 82682
Southdale 2135
Tel: +27 11 681 4800
Fax: +27 11 760 1471

Spain
ASSA ABLOY IBERICA, S.L.
Basabe 3
20550 Aretxabaleta (Gipuzkoa)
Tel: +34 943 71 25 84
Fax: +34 943 79 62 96

AZBE B. ZUBIA S.A.
Basabe 3, P.O. Box 13
20550 Aretxabaleta (Gipuzkoa)
Tel: +34 943 71 29 29
Fax: +34 943 79 86 43

TESA Tallares de Escoriaza S.A.
Bario de Ventas no. 35
IRUN 20305
Tel: +34 943 66 91 00
Fax: +34 943 63 32 21

Sweden
ASSA AB
P.O. Box 371
631 05 Eskilstuna
Tel: +46 16 17 70 00
Fax: +46 16 17 70 49

ASSA INDUSTRI AB
P.O. Box 371
631 05 Eskilstuna
Tel: +46 16 17 70 00
Fax: +46 16 17 70 18

AB FAS LÅSFABRIK
P.O. Box 60
631 02 Eskilstuna
Tel: +46 16 17 02 33
Fax: +46 16 17 02 17

78 • A S S A A B L O Y / 2 0 0 1

AKI LÅSGROSSISTEN AB
P.O. Box 42115
126 12 Stockholm
Tel: +46 8 449 24 00
Fax: +46 8 18 74 30

FIX AB
Bruksgatan 17
414 51 Gothenburg
Tel: +46 31 704 40 00
Fax: +46 31 14 23 55

SOLID AB
Sjöviksbacken 24 pl. 8
117 43 Stockholm
Tel: +46 8 685 10 00
Fax: +46 8 685 10 20

TIMELOX AB
Lodjursgatan 2
261 44 Landskrona
Tel: +46 418 513 00
Fax: +46 418 286 96

Switzerland
IKON SA
B.P. 275
En Budron A6
1052 Le Mont-sur-Lausanne
Tel: +41 21 654 26 66
Fax: +41 21 654 26 60

KESO AG
Untere Schwandenstrasse 22
8805 Richterswil
Tel: +41 1 787 34 34
Fax: +41 1 787 35 35

ROFU AG
Rautistrasse 71
88043 Zürich
Tel: +41 1 404 10 60
Fax: +41 1 404 10 67

Ukraine
ABLOY OY REPR. OFFICE
Marka Vovchka Street 18-A
04073 Kiev
Tel: +380 44 418 97 73
Fax: +380 44 430 32 18

United Kingdom
ABLOY SECURITY LTD.
2-3 Hatters Lane
Croxley Business Park
Watford, Hertfordshire WD1 8YY
Tel: +44 1923 255066
Fax: +44 1923 230281

ASSA LTD.
75 Sumner Road,
Croydon, Surrey CRO 3LN
Tel: +44 2086 885191
Fax: +44 2086 880285

C E MARSHALL (WOLVERHAMPTON) LTD.
Church Street, Willenhall
West Midlands WV13 1QW
Tel: +44 1902 364500
Fax: +44 1902 634 908

CHUBB LOCKS CUSTODIAL SERVICES LTD.
P.O. Box 61
Wednesﬁeld Road, Wolverhampton
West Midlands WV10 0EW
Tel: +44 1902 455111
Fax: +44 1902 450185

GRORUD INDUSTRIES LTD.
Castleside Industrial Estate,
Consett, Co. Durham DH8 8HG
Tel: +44 1207 581485
Fax: +44 1207 580036

YALE SECURITY PRODUCTS UK LTD.
Wood Street, Willenhall
West Midlands WV13 1LA
Tel: +44 1902 366911
Fax: +44 1902 368535

United States
ASSA ABLOY NORTH AMERICA Inc.
P.O Box 9827
New Haven, CT 06536-0827
Tel: +1 203 624 52 25
Fax: +1 203 785 81 08

ABLOY SECURITY INC.
6005 Commerce Drive, Suite 330
Irving, TX 75063
Tel: +1 972 753 1127
Fax: +1 972 753 0792

ARROW LOCK MANUFACTURING CO INC.
10300 Foster Avenue
Brooklyn, NY 11236
Tel: +1 718 257 4700
Fax: +1 718 257 32 99

ASSA INC.
P.O Box 9453
New Haven, CT 06534-0453
Tel: +1 203 603 5959
Fax: +1 203 603 5953

CORBIN RUSSWIN, INC - CLARKSDALE
600 Hwy. 322
Clarksdale, MS 38614
Tel: +1 662 624 8391
Fax: +1 662 627 9786

CECO DOOR PRODUCTS
9159 Telecom Drive
Milan, TN 38358
Tel: +1 731 686 8345
Fax: +1 731 686 4211

CURRIES CO.
P.O Box 1648
Mason City, IA 50402-1648
Tel: +1 641 423 1334
Fax: +1 641 423 9104

DOMINION BUILDING PRODUCTS
Corporate Headquarters
6949 Fairbanks North Houston
Houston, TX 77040
Tel: +1 713 466 6790
Fax: +1 832 467 0290

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 79

EMTEK PRODUCTS INC.
15250 E. Stafford Street
City of Industry, CA 91744
Tel: +1 626 961 0413
Fax: +1 626 336 2812

ESSEX INDUSTRIES, INC.
P.O. Box 9804
New Haven, CT 06536-0804
Tel: +1 203 624 5225
Fax: +1 203 499 68 40

FOLGER ADAM SECURITY INC.
16300 West 103rd Street
Lemont, IL 60439
Tel: +1 630 739 3900
Fax: +1 630 739 6400

GRAHAM MANUFACTURING CORP.
P.O. Box 1647
Mason City, IA 50402-1647
Tel: +1 641 423 2444
Fax: +1 641 423 1660

HES, INC.
2040 West Quail
Phoenix, AZ 85027
Tel: +1 623 582 4626
Fax: +1 623 582 4641

HID CORPORATION
9292 Jeronimo Road
Irvine, CA 92618
Tel: +1 949 598 1600
Fax: +1 949 598 1680

INDALA
3041 Orchard Parkway
San Jose, CA 95134-2017
Tel: +1 408 383 4000
Fax: +1 408 434 0365

MCKINNEY PRODUCTS CO
820 Davis Street
Scranton, PA 18505-5999
Tel: +1 570 346 7551
Fax: +1 570 342 4845

MEDECO HIGH SECURITY LOCKS
3625 Allegheny Drv.
P.O. Box 3075
Salem, VA 24153
Tel: +1 540 380 5000
Fax: +1 540 380 5010

NEL CORPORATION INC.
83 East Ave, Suite 107,
Norwalk, CT 06851
Tel: +1 203 866 9283
Fax: +1 203 838 4837

NORTON DOOR CONTROLS
3000 Highway 74 East
Monroe, NC 28112
Tel: +1 704 233 4011
Fax: +1 704 233 5053

RIXSON
9100 W. Belmont Avenue
Franklin Park, IL 60131
Tel: +1 847 671 5670
Fax: +1 847 671 0574

SARGENT MANUFACTURING CO.
P.O. Box 9725
New Haven, CT 06536-0915
Tel: +1 203 562 2151
Fax: +1 203 776 5992

SECURITRON MAGNALOCK CORPORATION
550 Vista Boulevard
Sparks, NV 89434
Tel: +1 775 355 5625
Fax: +1 775 355 5633

TRUSSBILT
2112 Old Highway 8 NW
New Brighton, MN 55112
Tel: +1 651 633 6100
Fax: +1 651 628 9482

VINGCARD, INC.
9333 Forest Lane
Dallas, TX 75243
Tel: +1 972 907 2273
Fax: +1 972 907 2771

YALE RESIDENTIAL SECURITY
PRODUCTS, INC.
2725 B Northwoods Parkway
Norcross, GA 30071
Tel: +1 678 728 7400
Fax: +1 770 448 1102

YALE SECURITY GROUP
1902 Airport Road
Monroe, NC 28110
Tel: +1 704 283 2101
Fax: +1 704 283 9446

Zimbabwe
CHUBB UNION ZIMBABWE (PVT) LTD.
P.O. Box 2555
Harare
Tel: +26 34 759 196
Fax: +26 34 759 194

ASSA ABLOY’s ANALYSTS

ANDERS TRAPP

ANDERS IDBORG

ANDERS JEGERS

Enskilda Securities

+46 8 5222 97 57

anders.trapp@enskilda.se

Carnegie

+46 8 676 86 88

andidb@carnegie.se

ABG Sundal Collier

+44 20 7905 5631

anders.jegers@abgsc.com

ANDERS FAGERLUND

UBS Warburg

+46 8 453 73 30

anders.fagerlund@ubsw.com

CLAES RASMUSON

HSBC Investment Bank

+46 8 454 5510

claes.rasmuson@hsbcib.com

CHRISTIAN DIEBITSCH

BNP Paribas

+44 20 7595 3467

christian.diebitsch@bnpparibas.com

JAN DWORSKI

CAI Cheuvreux

+46 8 723 5175

jdworsky@caicheuvreux.com

JOHAN SIVANDER

Nordea Securities

+46 8 407 9249

johan.sivander@nordeasecurities.com

LARS NORRBY

Alfred Berg

+46 8 7235965

lars.norrby@alfredberg.se

MATTIAS KARLKJELL

Deutsche Bank

+46 8 463 55 00

mattias.karlkjell@db.com

MATHIAS WALLERSTRÖM Danske Capital

+46 8 56881905

mathias.wallerstrom@danskecapital.com

MATTHEW LLOYD

Credit Lyonnais Securities

+44 20 7214 5558

matthew.lloyd@creditlyonnais.co.uk

OLOF JONASSON

Handelsbanken Investment Banking

+46 8 701 12 51

oljo03@handelsbanken.se

PATRIK MARSHALL

Credit Suisse First Boston

+44 20 7888 0289

patrik.marshall@scsb.com

PETER EKLÖF

ÖRJAN RÖDEN

Nordiska

Danske Securities

+46 8 791 4784

peter.eklof@nordiska.com

+46 8 5688 1500

orjan.roden@danskesecurities.com

A S S A A B L O Y / 2 0 0 1 • 7 9

31998_ASSA_Siffror_E_DS 02-03-14 13.26 Sida 80

Photo: Ulf Huett Nilsson and Lennart Ström

Illustrations: Ehrenstråhle & Co. English editing: Marcom International.

Production: Ehrenstråhle & Co AB. Print: ATT Graﬁska, Stockholm 2002.

31998_ASSA_Omslag_E_DS 02-03-14 13.25 Sida 2

Annual Report 2001

31998_ASSA_Omslag_E_DS 02-03-14 13.25 Sida 1

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ASSA ABLOY AB (publ.)
Postal Address: P.O. Box 70340, SE-107 23 Stockholm • Visiting Address: Klarabergsviadukten 90

Phone: +46 (0)8 506 485 00 • Fax: +46 (0)8 506 485 85
Registered No.: SE.556059-3575 • Registered Office: Stockholm, Sweden • www.assaabloy.com