Annual Report
2024
Experience a safer
and more open world
B
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
download
a printable
pdf here
Securing sustainable,
profitable growth
Our vision is to be the global leader in providing innovative access solutions
that help people feel safe and secure so that they can experience a more open
world. By investing in product innovation, efficient production processes and
a world-leading market presence, we have created substantial value for our
stakeholders during the last 30 years. We are committed to continuing our
long-term value creation for all our stakeholders and securing a sustainable,
profitable future.
Profitability
Injury rate
Carbon footprint
Growth
Innovation
Annual growth through a
combination of organic and acquired
growth over a business cycle
10%
Sales from products launched
in the last three years
25%
Number of injuries per million hours
worked reduction to 2025 vs 2019
Absolute Scope 1 & 2 carbon
emission reduction to 2025 vs 2019
–33%
–25%
Operating margin over
a business cycle
16–17%
Our
goals
1
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
download
a printable
pdf here
Contents
Report of the Board of Directors
Report of the Board of Directors .......................................... 45
Significant risks and risk management ............................... 47
Corporate governance .......................................................... 50
Board of Directors ..................................................................... 54
Executive Team ........................................................................... 56
Internal control – financial reporting .................................. 59
Sustainability statement ....................................................... 60
General disclosures ................................................................... 65
Environmental information .................................................... 81
Social information ..................................................................... 94
Governance information ...................................................... 103
Financial statements
Financial reports .................................................................. 111
Notes ...................................................................................... 123
Five years in summary ......................................................... 147
Comments on five years in summary ................................ 148
Definitions of key ratios ...................................................... 149
Board of Directors and CEO assurance .............................. 150
Auditor’s report .................................................................... 151
Auditor’s limited assurance report of
the voluntary sustainability statement............................. 156
Shareholder information .................................................... 158
The ASSA ABLOY share .......................................................... 158
Information for shareholders ............................................. 161
Financial calendar and contact details ............................ 161
Introduction
The year in brief .....................................................................................2
Statement from our CEO .................................................................. 4
Highlights in 2024 ............................................................................... 6
Who we are
The global leader in access solutions .....................................8
ASSA ABLOY in your daily life ................................................11
Value creating business model..............................................13
People........................................................................................14
Sustainability............................................................................15
30 years of innovation and growth ......................................16
ASSA ABLOY as an investment
Good industry to be in ........................................................... 20
A leading market position..................................................... 22
A well-proven strategy ...........................................................24
Financial targets ......................................................................29
Divisions overview
Overview highlights ............................................................... 33
Opening Solutions EMEIA ..................................................... 34
Opening Solutions Americas ................................................ 36
Opening Solutions Asia Pacific ............................................. 38
Global Technologies............................................................... 40
Entrance Systems ................................................................... 42
CEO statement
page 4
Our strategy
page 24-28
How we create value
page 13
2
ASSA ABLOY | ANNUAL REPORT 2024
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a printable
pdf here
Introduction
• The year in brief
Statement from our CEO
Highlights in 2024
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
The year in brief | Introduction
Margin in line with the financial target
• Sales increased by 7% to SEK 150,162 M (140,716) driven by
strong acquired growth of 8% while organic sales declined 1%.
• Operating income increased strongly by 10% to SEK 24,296 M
(22,185) with an operating margin of 16.2% (15.8).
• Earnings per share grew by 4% to SEK 14.09 (13.54).
Acquisitions during the year
• 26 acquisitions were completed and contributed to net
acquired sales growth of 8% for the year.
• HHI, acquired in 2023, developed in accordance with our
implementation plan and contributed to 5% acquired growth.
Product innovation
• We launched more than 550 new products and solutions.
• More than 250 new patents were registered.
• About 23% of sales was generated by products launched over
the last three years.
Sustainability
• The implementation of our 2025 sustainability program
proceeded and delivered in line with or ahead of plan.
• Scope 1 & 2 carbon emissions decreased by 20% versus last year
where 2% is due to focused energy efficiency improvements and
18% is linked with implementing the most recent emission factors.
Since 2019 Scope 1 & 2 emissions have been reduced by 36%.
• Scope 3 emissions decreased by 3% and have been reduced by
10% since 2019.
• The injury rate was unchanged versus last year and is down 17%
since 2019.
Key figures
2023
2024
Change
Sales, SEK M
140,716
150,162
+7%
of which: Organic growth, %
+3
-1
of which: Acquired growth, net total, %
+8
+8
of which: Exchange rate effects, %
+5
0
Operating income (EBIT), SEK M1
22,185
24,296
+10%
Operating margin, %1
15.8
16.2
+40bps
Income before tax (EBT), SEK M1
19,654
20,914
+6%
Operating cash flow, SEK M
25,232
23,052
-9%
Return on capital employed, % 1
15.6
14.4
–120bps
Dividend, SEK/share
5.40
5.902
+9%2
1 Excluding items affecting comparability.
2 As proposed by the Board of Directors.
The year in brief
SALES AND OPERATING INCOME (EBIT)1
EARNINGS PER SHARE1,2
1 Earnings per share has been restated due to the 3:1 share split in 2015.
2 Excluding items affecting comparability.
SEK
0
3
6
9
12
15
24
23
22
21
20
19
18
17
16
15
1 Excluding items
affecting comparability.
0
30,000
60,000
90,000
120,000
150,000
24
23
22
21
20
19
18
17
16
15
0
5,000
10,000
15,000
20,000
25,000
Sales, SEK M
EBIT, SEK M
Sales
Operating
income (EBIT)
Sales grew by 7% and
the EBIT-margin increased
by 40bps to 16.2% due
to strong operational
execution.
3
ASSA ABLOY | ANNUAL REPORT 2024
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Injury rate
The injury rate was unchanged in 2024 compared to last year
and has decreased by 17% since 2019. The Group continued
to introduce systematic actions throughout the organization
and especially in new acquisitions with initiatives and
awareness campaigns to reduce the injury rate.
Carbon footprint
Our absolute Scope 1 & 2 carbon emissions decreased by 20%
versus last year where 2% is due to focused energy efficiency
improvements and 18% is linked with implementing the most
recent emission factors. These emissions have decreased by 36%
compared to the 2019 base year. Scope 3 emissions decreased
by 3% during the year and are down 10% since 2019.
Innovation
The new product ratio, which represents sales from products
launched during the last three years was about 23%, up
100bps versus last year. The ratio increased in all divisions.
Global Technologies has the highest ratio, which is driven
by its technology focused product portfolio. In 2024, we
launched over 20% more products than the prior year.
Injury rate
Absolute carbon footprint
Innovation
TARGET 2025 VS. 2019 (BASE YEAR)
–33%
–25%
25%
Goals and outcomes
We have set ambitious financial and sustainability goals. The finan
cial targets are set to balance growth with a return rate that can
generate substantial and sustainable value.
The sustainability targets set for 2025 are a step on the way to
achieving the net zero emission target no later than 2050.
Growth
Sales grew by 7% in 2024, fueled by strong acquired growth of
8% from the HHI, Integrated Warehouse Solutions and Evolis
acquisitions. Organic sales declined slightly by -1% with good
growth in Americas, stable growth in EMEIA, and organic
sales decline in Entrance Systems, Global Technologies, and
Asia Pacific.
Margin
The adjusted operating margin reached 16.2% (15.8), in line
with our financial target driven by strong operating leverage
due to lower direct material costs and efficiency measures.
The margin was diluted by 20bps due to acquisitions during
the year and the 2023 HHI acquisition.
Annual growth through a
combination of organic and
acquired growth
Operating margin1
1 Excluding items affecting comparability.
1 Number of injuries per million hours worked.
OVER A BUSINESS CYCLE
10%
16–17%
SEK M
0
40,000
80,000
120,000
160,000
24
23
22
21
20
19
18
17
16
15
%
10
12
14
16
18
20
24
23
22
21
20
19
18
17
16
15
Injury rate1
0
1
2
3
4
24
23
22
21
20
’000 tons
0
100
200
300
24
23
22
21
20
SEK M
0
5
10
15
20
25
24
23
22
21
20
The year in brief | Introduction
Introduction
• The year in brief
Statement from our CEO
Highlights in 2024
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Margin within the target range
We can look back at a successful year in which ASSA ABLOY reached several milestones.
In a challenging market we delivered record earnings with the operating margin in line with
our financial target. We achieved our Scope 1 & 2 carbon emission reduction target one year
ahead of plan. During the year, we also celebrated the 30th anniversary of ASSA ABLOY and its
remarkable journey. ASSA ABLOY is the global leader in the industry and with continued focus
and investments in innovation, we have a favorable position from which we will continue to
lead our industry going forward.
In 2024, total sales grew by 7%, driven by strong
net acquired growth of 8% and a small organic sales
decline of 1%. More than 550 product launches and
2% price realization supported our organic sales in a
challenging market environment with weak residential
demand and low activity in the logistics vertical. The
small organic sales decline was more than compen
sated by a record year for acquisitions. In total 26
businesses were acquired. In the last five years, we
have acquired 96 businesses, which have contributed
in a significant way to our financial result. Through the
acquisitions, we have also obtained technology that is
widening our product offering.
The operating income grew by 10% to a record
SEK 24,296 M with a margin of 16.2%. We are back
within our target margin range despite challenging
market conditions and the dilution from the recent
integration of acquisitions like HHI, SKIDATA,
Integrated Warehouse Solutions and Level Lock.
Operating cash flow was strong at SEK 23,052 M
(25,232) with a conversion rate of 110%. ASSA ABLOY
is a strong cash generating business and over the last
five years the accumulated operating cash flow has
been SEK 91,917 M with a conversion rate of 111%.
Divisional performance
Our divisions delivered strong earnings in challenging
market conditions. Organic sales growth was highest
in the Americas division with 2%, driven by a robust
demand in the North America Non-Residential seg
ment and stable development in the North America
Residential segment. The operating margin reached
18.5%, despite dilution from the acquisition of HHI.
HHI’s margin improved throughout the year thanks
to the realization of synergies. In EMEIA the organic
sales growth was stable. The residential segment
was weak, but thanks to strong performance in the
non-residential segments and emerging markets,
the division reported stable growth combined with
a 60bps improvement of the operating margin to
14.2%. Organic sales growth in Entrance Systems was
slightly down by 1%. The Pedestrian and Perimeter
Security segments grew strongly, while a slowdown
in the demand for loading docks and weak residential
demand for garage doors in the US impacted the
growth negatively. Our service business continues to
grow strongly and contributed to the division deliv
ering a strong margin of 17.2% despite dilution from
acquisitions of 50bps. Global Technologies organic
sales declined by 2% due to very strong comparable
sales figures from a catch-up of a backlog in the
Physical Access Control business area in 2023. The
operating margin reached 17.5%. Finally, the construc
tion market in China continued to be very weak and
was the main reason for the negative organic sales
development in Asia Pacific of 6%. Thanks to strong
cost control, the margin improved by 40bps to 6.8%
during the year.
MSEK
24,296
operating income
MSEK
150,162
total sales
MSEK
23,052
operating cash flow
4
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
The year in brief
• Statement from our CEO
Highlights in 2024
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Statement from our CEO | Introduction
A well-proven strategy finetuned
As the access market evolves, we reviewed and fine
tuned our strategy during the year. The main pieces of
the strategy remain unchanged, such as our mission
and vision, our financial targets and the strategic
objectives that guide us in our daily operation, but we
have clarified our growth focus via our nine Priorities
discussed in more detail on pages 26–28 in this report.
While the need for safety and security is the funda
mental driver for our business, our strongest growth
driver is the transition to electromechanical products
and solutions. In 2024, electromechanical products
and solutions grew currency adjusted by 8% in our
regional divisions, with a compounded annual growth
rate of 9% in the last ten years. Going forward, we ex
pect this to continue to be our single fastest growing
product area and we continue to make important
investments in product innovation to accelerate this
growth. Our innovation efforts around sustainability
enable us to grow faster in a market where focus on
sustainability is increasing.
Successful implementation of our
sustainability program
An important achievement during the year was
the reduction of our absolute Scope 1 & 2 carbon
emissions that now are 36% below the level in 2019.
However, Scope 3 emissions represent a bigger
challenge and account for 96% of our total carbon
emissions. In recent years we have methodically
identified these emissions and in 2024 initiated
concrete actions to reduce future emissions. As these
mainly are incurred by our suppliers, we are working
together with them to achieve the targets.
Finally, our efforts to ensure that ASSA ABLOY is a safe
working environment is bearing fruit and our injury
rate is down 17% since our 2019 base year. We are now
working on launching our next sustainability program
as our program for 2020–2025 will soon end.
30 years and more to come
ASSA ABLOY celebrated its 30th anniversary in 2024.
We have grown from a regional Nordic lock com
pany to the global leader in access solutions. Over
the 30 years, our compounded annual growth rate
has been 13% and we have paid almost SEK 58bn in
dividends and our share price has increased by more
than 17,800%. This has been achieved thanks to our
dedicated employees around the world. Thank you
to all of you who have contributed to this remarkable
journey!
Our decentralized organizational setup permits us
to make decisions close to the customer with deep
local knowledge. As our business dynamics are very
ASSA ABLOY has made
significant achievements over
the last 30 years, but we have
many more opportunities
ahead of us.
local, this gives us the agility to react fast to specific
market conditions and has proven to be a strong
competitive advantage. Our global footprint also
permits us to realize important scale advantages. This
is translated in higher innovation output and strong
operational efficiencies.
ASSA ABLOY has made significant achievements
over the last 30 years, but we have many more
opportunities ahead of us. By staying humble, curious
and eager, our strategy will continue to deliver great
value in the future.
Thank you for your trust in ASSA ABLOY over the
years.
Stockholm, 12 March 2025
Nico Delvaux
President and CEO
Nico Delvaux at our Traka factory in Olney,
the UK, during a visit in 2024.
5
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
The year in brief
• Statement from our CEO
Highlights in 2024
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Statement from our CEO | Introduction
6
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
The year in brief
Statement from our CEO
• Highlights in 2024
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Highlights in 2024 | Introduction
Highlights in 2024
Product leadership is one of the most important
drivers for organic growth. In 2024, about 23% of
our sales was generated by products launched in
the past three years. We have been focusing on
electromechanical products and solutions, a fast
developing and dynamic product category. In 2024,
our sales of electromechanical products and solu
tions grew currency adjusted by 8% in the regional
divisions. More than 550 products were launched
during the year. For example, Level Lock, that offers
an 'invisible' smart lock without the need for a bulky
hardware, announced the new Level Lock+ with
Matter. This model introduces support for Apple
Home Key, Bluetooth compatibility, and Matter
support in a single product, making it compatible
with HomeKit, Google Assistant, Amazon Alexa, and
Samsung SmartThings.
In a partnership with Boston Dynamics, we un
veiled a new access control solution with the Spot®
robot. With embedded digital access credentials
that now can communicate via Bluetooth with
Signo readers from HID, Spot can freely pass through
compatible automated doors to patrol the exterior
of facilities or to transit interior secured openings.
More product innovations and product launches are
described throughout this annual report.
We also registered more than 250 new patents.
Product innovation
Manufacturing Footprint Program
Integration of HHI
We realized SEK 684 M in savings from our existing Manufacturing Footprint
Programs (MFP). Actions during the year included the closure of twelve
factories and six warehouses and administration offices. Since the initial
program in 2006, we have realized MSEK 7,823 in savings.
HHI was purchased in 2023 and is our largest-ever
acquisition. The integration of HHI has continued
according to plan. For example, the number of
product launches of electromechanical locks in
creased about 50% during the year as a result of our
investments in product innovation, including the
next generation of Halo Select, which is a connected
smart lock that offers a range of advanced features
designed to enhance security and convenience for
homeowners. In addition, Kwikset and Baldwin were
integrated into our specification software and all
specifiers were trained on the products. We also
have begun integration of HHI’s patented Smart
• In 2024, we reached our Scope 1 & 2 emissions
target to reduce emissions by 25% to 2025 one
year ahead.
• For the first time, in this report, we are disclosing
sustainability information according to the
Corporate Sustainability Reporting Directive
(CSRD). Please see our sustainability statement
on pages 60–109.
• Our net zero target by no later than 2050 was
ratified by the Science Based Targets initiative.
• We implemented the Sustainable Portfolio
Planning Tool which helps us identify and reduce
the large carbon emissions contributors in our
product portfolios.
Strong financial
outcome
16.2%
EBIT-margin
30%
electro
mechanical sales
25%
mechanical
sales
Sustainability
Key Security functionality with our fenestration
team, serving some of the largest window and door
customers. In Canada, we leveraged ASSA ABLOY’s
sales team on HHI’s Weiser brand and started cross-
selling. Similar initiatives have been initiated in the
Pacific and South America.
Operationally, amongst others, we started to use
mutual steel suppliers in Asia to gain economies
of scale and are making commercial hinges for the
North America non-residential segment at our
factory in Asia. We have also consolidated some
office buildings with the rest of the Group to reduce
costs and increase internal collaboration.
Epero culla sit re modi
od eumquia voluptis
Equipped with our
readers the Spot®
robot opens an
automated door
at the 2024 Global
Security Exchange
(GSX) in Orlando.
The ASSA ABLOY team in Canada
celebrating our 30th anniversary.
Together we celebrated ASSA ABLOY's 30th
anniversary throughout the year locally and
through a webcast that connected the Group.
30 year anniversary
7
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
Who we are
The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
7
ASSA ABLOY | ANNUAL REPORT 2024
Who we are
ASSA ABLOY was founded in 1994 and is the
global leader in access solutions. We are
63,000 employees in more than 70 countries
around the world with a uniquely decentralized
business model. We have leading positions in
areas such as efficient door openings, trusted
identities and entrance automation. Our
innovative access solutions help people feel
safe and secure so that they can experience a
more open world.
Strong brands
We use a multi-brand strategy to make the most of
our global and local presence. The brands play an
important role in our strategy and in building trust,
loyalty and differentiation in the markets where we
operate.
ASSA ABLOY is our company and employer brand
and our main business brand. We also have strong
global and regional brands such as Yale and Kwikset,
covering the residential market, and HID for identifi
cation and access management solutions.
The strength of our more than 200 global, regional
and local brands helps us make ASSA ABLOY the
global leader in access solutions.
Company and employer brand
Some of our soft-endorsed brands
Some of our strong-endorsed brands
The global leader in access solutions
ASSA ABLOY is the global leader in access solutions. Every day, we help billions
of people experience a more open world with innovative solutions that enable
safe, secure and convenient access to physical and digital places.
Access solutions for every need
ASSA ABLOY offers the largest range of access
solutions in the world. Our portfolio includes a
complete range of solutions in areas such as me
chanical and electromechanical locking, access
control, identification technology, entrance auto
mation, security doors, hotel security and mobile
access. Our offerings are delivered separately or
combined to form a complete, full-service access
solution. Through continuous and sustainable
innovation, we make sure that our products and
solutions meet our customers’ needs.
Regional divisions
Global divisions
Opening
Solutions
EMEIA
Global
Technologies
Opening
Solutions
Americas
Entrance
Systems
Opening
Solutions
Asia Pacific
A decentralized organization
We are a global company with a uniquely decentralized and customer-
focused business model. It enables us to adapt and be agile in our
response to market changes and quickly meet customer needs and
implement solutions tailored to different markets and segments. Our
business units know local standards inside-out and optimize resources
and products according to the local conditions and demand.
The regional divisions manufacture and sell mechanical and electro
mechanical locks, and security doors, adapted to the local market’s
standards and security requirements which often differ from country to
country. The global divisions manufacture and sell access solutions, iden
tification products and entrance automation that are more standardized
across continents or have a global reach. Read more on pages 32–43.
Services
Solutions
Entrance automation
Openings
Identities
Master key systems
Access control
Authentications
Location services
Data and analytics
8
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
Who we are
• The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
The global leader in access solution | Who we are
ASSA ABLOY | ANNUAL REPORT 2024
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9
We are truly global and uniquely local
ASSA ABLOY has operations in more than 70 countries and sales in over
180 countries. Our operations extend across more than 1,000 sites, including
195 R&D sites and more than 200 production facilities1. Other sites include
distribution centers and offices. In many countries, our operations are built on
one of the close to 400 acquisitions we have made of leading access businesses
over the past 30 years.
63,000
Employees
195
R&D centers
>70
Countries
31%
Europe
sales
7%
Asia
sales
1%
Africa
sales
4%
Oceania
sales
54%
North America
sales
3%
South America
sales
1 Production and configuration facilities larger than 1,000 m2.
Introduction
Who we are
• The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
The global leader in access solutions | Who we are
10
ASSA ABLOY | ANNUAL REPORT 2024
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The global leader in access solutions | Who we are
Our sustainability journey
Next sustainability program
Our next sustainability program
with targets to 2030 will be
launched in 2025.
Science Based Targets
ASSA ABLOY has set
science-based targets,
limiting global temperature
rise to 1.5°C, by halving
emissions by 2030.
Net zero
ASSA ABLOY has
committed to reaching
net zero no later
than 2050.
2025
2030
2050
0
25,000
50,000
75,000
100,000
125,000
150,000
24
23
22
21
20
19
18
17
16
15
SEK M
k tons
Sales
CO2emissions
0
100,000
200,000
300,000
400,000
500,000
600,000
Sales (MSEK) vs CO2 emissions (k metric tons) between 2015–2024
1st sustainability program
First sustainability program and annual
sustainability report launched in 2007. The
program focused on integration of procedure
for quality and environmental management
and introduced structures that allowed every
day operations to continuously improve their
sustainability performance.
2nd sustainability program
Second sustainability program launched
for 2010–2015 with measurable targets
for water consumption, energy efficiency,
greenhouse gas emissions, chemical
handling and health & safety.
3rd sustainability program
Third sustainability program for
the 2015–2020 period with more
ambitious targets. The program
was extended to include audits of
suppliers with focus on low cost
countries.
Sustainability Compass
The Sustainability Compass
was introduced in our product
development processes.
Science Based Targets
We committed to set science-
based targets.
4th sustainability program
Fourth sustainability program
with targets to 2025. The
program focuses on the most
material areas, ensuring we have
the biggest impact where it is
needed most.
2007
2010
2015
2016
2020
Sustainability is integrated in everything we do and is a driver throughout our value chain. By growing our
sustainable product offering and reducing our environmental footprint while ensuring a safe and healthy work
place, we contribute to creating a better world at the same time as we drive sales and optimize our operations.
Introduction
Who we are
• The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
11
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
Who we are
The global leader in access solutions
• ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
ASSA ABLOY in your daily life | Who we are
Enterprise
1
At the perimeter of buildings our bollards, high-
security fences and other safety devices protect
pedestrians from motor vehicles. These models can be
permanently installed, portable, or retractable, and can
be seamlessly integrated into security and alarm systems.
2
We provide automatic sliding and revolving doors
that are particularly suitable for entrances and indoor
areas with high pedestrian traffic, allowing people to enter
buildings conveniently without having to manually open
doors.
3
We have a complete range of services for the
maintenance and upgrading of automatic entrances
and loading docks to enable a more seamless customer
experience.
4
On the inside or outside of the building electrome
chanical locks and other hardware such as security-
rated doors, frames and delivery lockers, work together
with physical access control systems (including readers and
controllers) to manage access and the delivery of packages.
We also have systems and solutions for secure issuance and
management of identities with specific security
requirements, such as employee ID cards.
5
We offer mobile keys and physical access control
systems, including readers and controllers, to
efficiently manage access in buildings.
Multi-family housing
6
We provide complete solutions for multi-family
housing, ranging from mechanical locks to
sophisticated, customized access control systems and
garage doors. Our digital door locks can easily be opened
using a code or a mobile app. The app enables convenient
remote control to unlock doors for authorized people.
Hotel/retail
7
We provide complete access solutions for retail and
hotel establishments. For the hospitality industry, our
offerings include mobile access solutions, access
management systems, staff safety, in-room safes, and
energy control.
8
With our mobile access solutions, hotel guests can
book a room directly from their smartphones. Secure
Seos technology sends a digital key to the guest’s mobile
phone, enabling the guest to bypass the front desk and go
directly to the room to unlock the door.
9
Our revolving doors create spacious entrances and
are ideal for areas where climate control is a priority.
Advanced sensor technology ensures smooth functionality,
safe traffic flows, and superior separation of indoor and
outdoor climates. Side doors are added for increased
accessibility and faster evacuation.
10
We offer safe and simple-to-connect garage doors
and gates that integrate seamlessly with the
building’s access control system.
In addition, ASSA ABLOY offers access solutions using a
range of different mechanical and digital technologies
for senior care, construction, stadiums and events, data
centers, critical infrastructure, high security authorities
and other customers.
ASSA ABLOY in your daily life
Around the globe, billions of people come across our products in their
daily lives. We provide access solutions from the perimeter to the core of
buildings. Our products and solutions can be found in the home, at work or
school, and when you shop or travel. Some products are readily visible like
keys, locks, and doors, while other products are embedded in solutions such
as identity solutions and mobile access solutions.
2
5
Outside
6
Inside
Door closers
Delivery
lockers
Hinges
Air louvers
Key pads, push but
tons, key switches,
touch bars
Electric strikes
Panic bars
Kick plates
Door
operators
Floor closers
Wireless locks
Cabinet
locks
Glass door
hardware
Power supplies
Mechanical &
electro-mechanical
locks & keys
Steel doors & frames
1
2
4
8
7
10
9
3
6
Enterprise
Hotel/retail
Multi-family building
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Case | Who we are
Next DC S3 Data centre, Sydney
Q What was the challenge for this project?
A – The main challenge for the locks and door hard
ware at each access point on this project was to with
stand the construction period and then transition
into servicing the life of the project. For Electronic
Access, one of the key challenges for stage two was
maintaining operations for everyone working in
the opened stage one section of the building while
construction and some significant equipment lifts
were completed for stage two. Some of the highest
security locks within the project are unique to
ASSA ABLOY – no-one else has an equivalent lock in
Australia with that level of security.
Q Why do you choose to work with ASSA ABLOY?
A – When we specify products like the ones ASSA
ABLOY supplied on this project, firstly and most
importantly we need to know that the products will
work. We choose ASSA ABLOY products due to their
security, durability and reliability.
The second aspect that makes working with ASSA
ABLOY a top choice for us is the knowledge and
advice from ASSA ABLOY. Our contact at ASSA ABLOY
has over 25 years in the industry and is our go to
expert in advising us on which product will meet each
specific need of any of our projects.
Q Would you recommend working with ASSA ABLOY?
A – Yes, absolutely. We know that whenever security
is at the forefront for a project, ASSA ABLOY is the
leader with unique products that no other suppliers
can match. One of these products is a high security
electric lock used in many top-security projects, like
military facilities and data centres.
Q How did ASSA ABLOY contribute to solving the
challenge?
A – During construction, electronic access could be
adjusted as needed, remotely, to cater to the 350
different workers on site daily during construction
and still retain the highest levels of security, reliability
and flexibility which was critical to the division of
zones between operations and construction. Post
construction, we had solid, reliable security for the
long-term needs of the facility. In the end, with ASSA
ABLOY's products on the doors, we know that they
have the best available option on the project.
CASE FACTS
Project: Next DC S3
Data centre, Sydney,
Australia.
ASSA ABLOY products
and solutions:
Lockwood electric and
mechanical mortice
locks, electric strikes,
brass door furniture, and
door closers.
In Australia, as in most countries given current and predicted technological advances,
data centres are a mega upwards trend in construction. NEXTDC is Australia's largest
data centre owner/operator and ASSA ABLOY products were specified and installed in
both stages of their recently completed S3 Data Centre.
ASSA ABLOY
in your daily life
GERARD PAGE, DIRECTOR OF ARCHITECTURE, GREENBOX
In the end, with ASSA ABLOY's products
on the doors, we know that they have the
best available option on the project.
Introduction
Who we are
The global leader in access solutions
• ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
13
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Value-creating business model | Who we are
Introduction
Who we are
The global leader in access solutions
ASSA ABLOY in your daily life
• Value-creating business model
People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Our resources
Our business model and how we operate
Together we are guided by our core values and beliefs
Empowerment
We have trust in
people
Integrity
We stand up for
what’s right
Innovation
We have the
courage to change
We operate globally with a decentralized
business model that allows us to quickly and ef
ficiently deliver local access solutions according
to customer specifications and local standards.
We have a unique local footprint of more than
1,000 sites and manufacture and sell access
products and solutions through a multi-channel
distribution network.
With more than 4,100 product developers we
lead the industry with the most innovative ac
cess solutions. Acquiring relevant businesses is
a key growth driver that also contributes to our
innovation resources and our market presence.
We use a multi-brand strategy to leverage our
global and local strengths to address different
markets and customer segments. Our strategy
(page 24) is executed locally and guides us in
our vision to be the global leader in providing
innovative access solutions.
Sustainability
Sustainability is part of everything we do throughout ASSA ABLOY’s value chain.
63,000
employees in more
than 70 countries
around the world.
We are truly global,
uniquely local
4,100
employed in
R&D working with
our sustainable
innovations
>200
strong brands and
diversified product
portfolio
How we
create value
Electromechanical
products
Security doors and
hardware
Entrance
automation
Mechanical
locks
Our aim is to deliver safety, security and
convenience. We offer a complete range of
unique and innovative access solutions.
Our offering
30%
15%
30%
25%
Value creation to
stakeholders in 2024
Shareholders and
investors
• Dividends and capital
appreciation
Employees
• Professional
development
• Safe and stable
workplace
• Inclusive workplace
with equal
opportunities
Customers
• Increased security
and competitiveness
for our customers
• Sustainable products
with Environmental
Product Declarations
(EPDs)
A
more
open
world
~10,500
patents
200
efficient production
and assembly facilities
~50,000
suppliers for direct
material and indirect
services. We have
strategic and cost-
efficient suppliers
SEK 107 bn
in shareholder equity
Suppliers
and partners
• Technological
development
• Stable partner
Society
• Increased safety
and security
• Reduced environ
mental impact
• Paid taxes and
employment
Priorities
Strategic objectives
Growth through
customer relevance
Product leadership
through innovation
Cost-efficiency in
everything we do
Evolution through
people
Growth accelerators
• Actively upgrade
installed base
• Increase service penetration
• Generate more recurring
revenue
• Grow in emerging markets
• Pricing excellence
• Continue with successful
acquisitions
Growth enablers
• Consolidate footprint
and focus on value
added
• Optimize logistics
• Reduce product cost
10 %
growth / business cycle
16 –17 %
EBIT / business cycle
Financial targets
14
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Introduction
Who we are
The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
• People
Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
People | Who we are
People make it happen
As a decentralized organization with 63,000 employees in more than
70 countries, we embrace autonomy while leveraging our collective
size to collaborate and realize synergies. This allows us to be agile and
utilize scale. We are committed to our people, knowing that when
they develop and grow, we will too.
At ASSA ABLOY, we pride ourselves on our people,
who are our most important asset. Our collective
competency is the driving force behind our innovative
solutions and consistent growth. We operate across
various regions in a decentralized organization with
a mix of local products and central platforms. We
encourage collaboration to optimize and successfully
leverage our skills, share best practices, and innovate
across divisional borders to be able to offer our cus
tomers the best access solutions in the world. Success
ful collaboration builds on a strong common culture.
This is why we have developed “Together we”. In this
program, we define our common culture, rooted in
the values of empowerment, innovation, and integrity.
This serves as the compass that aligns our diverse and
global workforce, ensuring we progress in unison.
It is crucial that our people feel safe in the work
place. One of the cornerstones of our commitment
to a safe and productive workplace is our Health
and Safety program. This initiative is designed to
ensure that all our workplaces adhere to the highest
safety standards, protecting our most valuable asset
– our people. Through rigorous training, preventive
improvement processes and focus on behavior and
culture, we strive to create the safest possible working
conditions.
Moreover, we foster a culture where our people
feel empowered and have the opportunity to develop
within ASSA ABLOY. We have extraordinary people,
and that is why we are so focused on internal mobility
and identifying personal potential development
opportunities. We believe retaining and developing
existing competence is crucial for our future growth
and success.
Richardo Thompson is a Finisher and Stewart Thompson is a Primary Press Operator and both
have worked at our Sargent factory in New Haven, Connecticut since 1988.
The way we integrate acquisitions is an example of
our focus on autonomy and empowerment. Welcom
ing and integrating new colleagues into ASSA ABLOY
is key to a successful acquisition. Many company
founders continue their journey in ASSA ABLOY which
is something we take great pride in. Throughout
the integration process, we encourage our new col
leagues to continue working with their products and
customers in their successful way. We strive to em
power them through investments and economies of
scale, as well as providing a greater network and new
career paths. This also allows individuals to advance
and diversify their professional journeys.
Together, these efforts enhance the performance
and scope of our company and ensure that our
employees are empowered, motivated, and engaged
in their roles. This strategy drives our performance: to
build a customer focused, resilient, innovative, and
responsible organization poised for long-term success.
Average number of employees by region
Europe, 22,105
North America, 21,002
South America, 3,507
Africa, 856
Asia, 13,561
Pacific, 1,795
+27%
internal
applications per open
position vs 2022
29%
females in
management positions
29
nationalities in
leading positions
15
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Sustainability | Who we are
Introduction
Who we are
The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
• Sustainability
30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Sustainability in everything we do
ASSA ABLOY is at the forefront of driving our industry towards a more sustainable
future. By prioritizing sustainability, we not only reduce costs and mitigate risks, but
also foster product development that delivers innovative and sustainable products
and solutions, making us more relevant to our customers. Sustainability is key to our
long-term profitability and success.
We are in our fourth sustainability program and are
making strong progress towards our targets for water
consumption, energy efficiency, CO2 emissions,
chemical handling, health and safety, and audits of
suppliers between 2020-2025. As we work to com
plete the present program that will end in 2025, we
are concurrently developing our fifth sustainability
program to 2030 where we again will raise our
ambition level. These programs complement our
existing long-term climate commitment to
science-based targets.
Scope 1 & 2 emissions reduction pathway
For emissions that are within our own operation, we
utilize a four-pronged strategy that is consistently
implemented across all divisions, business units, and
factories (see page 85). This method establishes and
illustrates the essential levers needed to reach our
50% reduction target for Scope 1 & 2 greenhouse gas
emissions by 2030, compared to the 2019 base year.
By applying this uniform strategy throughout ASSA
ABLOY, and monitoring progress on a quarterly basis,
we ensure that we stay on track to meet our
climate goals.
ASSA ABLOY's science based target committment
Scope 3 emissions reduction pathway
Our Scope 3 greenhouse gas emissions account for
about 96% of our total footprint. More than 70% of our
Scope 3 footprint is upstream in our supply chain,
coming from purchased goods and materials. Through
out the year we have continued to realize results from
our our action plans that support our ambition to
reduce our Scope 3 emissions by 28% in absolute terms
compared to the 2019 base year.
–20%
Scope 1 & 2
emissions reduction
–10%
Water intensity
reduction
–10%
Energy intensity
reduction
0%
Injury rate
reduction
267
Environmental Product
Declarations (EPDs)
+45%
Green specification sales
growth i EMEIA
701
Supplier sustainability
audits
–50%
by 2030
–28%
by 2030
Scope 1 & 2
Scope 3
READ MORE ON PAGES 85-89
Change in 2024 vs 2023
2024
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30 years of innovation and growth | Who we are
The merger between ASSA and Abloy in 1994 brought together
people with extensive knowledge of the lock market. Our first ten
years were characterized by rapid growth and consolidation. We
acquired strong and leading businesses and brands in many markets.
We built “The World’s Leading Lock Group”.
In our second phase, we continued to grow organically and
through acquisitions. This phase was characterized by combining
our products and solutions, offering customers total door opening
solutions that were seamlessly connected to their buildings.
We became "The global leader in door opening solutions".
August Stenman founded the company that would
become known as ASSA in the late 19th century.
Stenman was a pioneer in the use of automation, as
well as an advocate for the employment of women
and better working conditions for employees.
Emil Henriksson, a young Finnish man with a keen
interest in precision engineering, invented the
revolutionary disc tumbler lock. The company he
founded was named Abloy.
1994 ASSA and Abloy
merged. The ASSA
ABLOY Series B share
was listed on the
Stockholm Stock Ex
change on November
8, 1994 at SEK 1.82.
1996 American
Essex was acquired,
bringing Sargent
and other brands
with it.
1997 the French lock
group Vachette was
acquired, bringing
in Vachette, JPM,
Laperche and Bezault
in France as well as
Litto in Belgium.
2000 Yale was acquired. ASSA ABLOY
doubled in size and became the world’s
leading lock company almost overnight.
2002 the acquisition
of Besam added
automatic doors, a
new category, to our
product portfolio.
1999 expansion
into Australia with
the acquisition of
Lockwood
2000 CLIQ-technology, a security
locking system with programmable
keys and cylinders, was introduced.
2000 Acquisition of HID world leader
in identification technology for access
control.
2007 acquisition of
iRevo, a major player
in digital door locks in
South Korea.
2007 we launched
our first sustainability
program.
2010 for the
first time ever,
hotel guests
received their
door keys and
entered their
rooms via their
phones.
2011 acquisition of Crawford strengthens
our offering in industrial doors, docking
solutions and garage doors. We now
provide complete solutions for entrance
automation.
2012 Seos, the world’s first
commercial ecosystem for
digital keys, was launched.
2013 acquisition of
Ameristar, leading
US manufacturer
of perimeter
security consisting
of high-security
fencing and gates.
1994
2004
2014
1881
August Stenman
founded ASSA
1921
Emil Henriksson
founded Abloy
Phase 1 1994-2004
Phase 2 2005-2018
The global leader in door opening solutions
2008 Aperio, a
new technology to
complement existing
electronic access
control systems was
launched.
30 years of
innovation
and growth
Clear and consistently implemented
strategies have been the corner
stones in ASSA ABLOY’s journey
from a regional lock company
founded in 1994 to the global
leader in access solutions.
Introduction
Who we are
The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
• 30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
SEE MORE ON THE BACK COVER
ASSA ABLOY
30 years!
Stenman and Henriksson gave our company
its name. They are two of the many
entrepreneurs who have contributed to the
success of ASSA ABLOY.
17
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30 years of innovation and growth | Who we are
Our successful journey continues!
2024
2023 acquisition of HHI, a North
American leader in residential security
and builders’ hardware.
2023 acquisition of Evolis, a leading
French manufacturer of ID card printers
and consumables.
2018 ASSA ABLOY was named
to Forbes’ list of the top 100
innovators for the fourth time.
2018 we acquired Phoniro, ex
panding into a new vertical with
digital key management and
alarm solutions for elderly care.
2018 acquisition of US package
locker leader, Luxer One.
2020 acquisition of agta record, a
leading manufacturer of automatic
pedestrian entrance systems.
2020 acquisition of Olimpia, a
a leading glass hardware and
accessories brand in Latin America
and the Caribbean.
2020 we committed to science-
based targets and launched our
fourth sustainability program.
2022 acquisition of Arran Isle,
a leading manufacturer and
distributor of door and window
hardware in the UK and Ireland.
2017 acquisition of
Mercury Security which
considerably enhanced
our position within physi
cal access control through
adding controllers to
HID's product portfolio.
2018
Every day, we help billions of people experience a more open world
with innovative solutions that enable safe, secure and convenient access
to physical and digital places. Building on our legacy and using our combined
strengths and expertise, we will continue to develop pioneering solutions
to advance the access, security and safety around the world.
Today, we are "The global leader in access solutions".
Phase 3 2018-
2009 – 2017
Expansion into emerging markets
through acquisitions of major
players in several geographies:
Panpan, China’s largest high
security steel door manufacturer
in 2009; Mercor in Poland 2013;
ODIS in Chile, 2014; Papaiz and
Udinese in Brazil 2015; SMI in
India and LOB in Poland 2017.
2019 we acquired LUX-IDent,
a leading provider of radio
frequency identification (RFID).
2019 The “Together we” campaign
launched, featuring Together We
Grow for Group strategy and
“Together we are” for Group identity.
2019 Apple wallet began allowing HID-
enabled Student IDs, then hotel keys in
2021 and employee badges in 2022.
The global leader in access solutions
Strong value creation
3.6 bn
sales, SEK
150 bn
sales, SEK
4.3%
EBIT-margin
4,700
Emplolyees
16.2%
EBIT-margin
63,000
Employees
1994
2024
2024 acquisition of
SKIDATA, an international
leading provider of access
management solutions.
Introduction
Who we are
The global leader in access solutions
ASSA ABLOY in your daily life
Value-creating business model
People
Sustainability
• 30 years of innovation and growth
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
ASSA ABLOY 30 years!
See more on the back cover.
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ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
download
a printable
pdf here
18
ASSA ABLOY | ANNUAL REPORT 2024
ASSA ABLOY
as an investment
Founded in 1994, ASSA ABLOY is the global
leader in access solutions. We create significant
customer and shareholder value by continuously
optimizing our production and developing new,
innovative products that meet our customers’
needs and demands.
SEK M
SEK M
0
25,000
50,000
75,000
100,000
125,000
150,000
24
23
22
21
20
0
5,000
10,000
15,000
20,000
25,000
30,000
Sales
Operating income1
Sales and operating income
1 Excluding items
affecting comparability.
SEK
0
2
4
6
8
10
12
14
241
23
22
21
20
Dividend per share
Earnings per share
after dilution2
Dividend and earnings per share
1 Dividend proposed by
the Board of Directors.
2 Excluding items
affecting comparability.
+164%
sales growth
in 10 years
+143%
EPS growth
in 10 years
SEK
41 bn
dividend
last 10 years
19
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
download
a printable
pdf here
ASSA ABLOY as an investment
19
ASSA ABLOY | ANNUAL REPORT 2024
The ever-evolving global access solutions
industry, which we estimate to be worth
more than USD 100 billion, is subject to
strong underlying trends that support
long-term demand for our products and
solutions. The demand for safe and secure
access solutions is constantly increasing
driven by rising security threats, public safety
concerns, an increased regulatory environ
ment, demographic changes and increased
focus on sustainability. The ongoing shift to
electromechanical and digital access solu
tions brings many opportunities to develop
new, more convenient access solutions, while
supporting recurring revenue.
We are part of
a good industry with strong
fundamental growth drivers
How we create customer
and shareholder value
1
READ MORE ON PAGES 20–21
We have a leading position in our industry
with the largest installed base of products
and solutions and solid commitment to
customer excellence, which comes with
many competitive advantages. We have
the greatest innovation resources in the
industry, the deepest know-how of locks and
access solutions, strong relationships with
our customers and channel partners, and
well-known brands. This helps us lead the
transition to electromechanical products
and solutions. The aftermarket accounts for
about 2/3 of our sales, giving us resilience
over a business cycle.
Our leading position
in this industry makes
the difference
2
READ MORE ON PAGES 22–23
ASSA ABLOY has a well-proven strategy that
gives clear direction and guidance to our
employees. It enables us to take advantage of
the various opportunities generated by being
a leader in a good industry. The strategy
has helped us deliver consistent profitable
growth. Our currency adjusted revenue
growth has been close to 9% annually during
the last 15 years, and our adjusted EBIT margin
has, over the same period, been stable at
about 16%. Within our strategy, we have nine
priorities that will help us continue to deliver
profitable growth in line with our financial
targets.
A well-proven strategy that
has delivered consistent
profitable growth
3
READ MORE ON PAGES 24–28
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Good industry to be in | ASSA ABLOY as an investment
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
• Good industry to be in
A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
Trends driving our industry
Market overview
We estimate the global access solution industry
to be worth more than USD 100 billion annually.
It has a history of stable growth, characterized
by a large and stable aftermarket, and driven by
the development of more secure and innovative
access solutions that focus on convenience and
improving the sustainability performance of
buildings.
Humans have always had the need to protect
themselves. As welfare and societal systems have
evolved, access solutions have also undergone
continuous evolution and adapted to the unique
requirements of each local market. As a result,
a diverse range of local standards has emerged,
contributing to a fragmented market, especially
evident in emerging markets. ASSA ABLOY is the
world’s largest provider of access solutions, but
due to market fragmentation, our global market
share is still low, meaning that we have significant
potential to grow.
Growing trends
There are many favorable trends driving an
increased demand for access solutions, with the
fundamental need for safety and security as the
main underlying driver. Digitalization enables us
to provide more convenient solutions and shift
towards service-based offerings. At the same
time, the demand for more sustainable and
resilient products is fueled by the strong growth
in green buildings and more sustainable urban
environments around the world.
The security industry is subject to
strong underlying trends that support
long-term demand for our products.
The need for safety and security is a
fundamental driver for this and further
opportunities arise from customers’
need for convenient and efficient
access solutions and an increasing
emphasis on energy efficiency in
buildings. These are projected to be
key drivers for our industry towards
continuous and profitable growth in
the foreseeable future.
Demand for safety
and security
The demand for safe and secure access solutions is
constantly increasing mainly driven by four key issues.
Rising security threats – there is an increased need
for enhanced security measures to protect buildings
and their occupants.
Public safety concerns – public emergency events,
natural disasters, and other emergencies have escalated
the importance of implementing effective physical
security measures in public buildings.
An increased regulatory environment – compliance
with regulations regarding access control systems, sur
veillance, and emergency response protocols, is driving
the demand for robust physical security solutions.
A changing work environment – the shift towards
remote work, flexible office arrangements and
coworking spaces has increased the need for security
solutions adapted for different occupancy and access
requirements.
ASSA ABLOY’s response:
ASSA ABLOY provides state-of-the-art products and
services related to openings and entrance auto
mation as well as trusted identities with the safety
and security of our customers in mind. Our offering
enables people to experience a safer and more open
world.
Movement of people and
demographic changes
As people move and demographics change, the
demand for buildings and access solutions increases.
For example, it is estimated that 75% of the buildings
required for use in 2050 have not yet been built.
Urbanization is taking place all around the world and
the United Nations predicts that the urban population
will grow by 2.5 billion people by 2050. The most
apparent shifts are occurring in the emerging markets,
where an increased need for housing, workplaces and
commercial buildings is driving demand for access
solutions. At the same time, we also see a deurbaniza
tion trend in some developed markets. This generates
a need for new housing and commercial buildings in
more rural areas. Other demographic trends generat
ing demand for our products and solutions include an
aging population, migration, millennials entering the
housing market, and the transition to smarter cities.
ASSA ABLOY’s response:
Increased movement is a key driver for growth in
access solutions. With our local organizations and
strong regional knowledge, we can be agile and pro
actively invest in markets and access solutions where
we see the movement of people and demographic
changes taking place. Growth in our senior care
segment is driven by an aging population, while
the digitalization of homes and demand for our
electromechanical solutions is boosted by millennials
entering the housing market.
Strong and long-term
underlying growth
trends support the
industry. At ASSA
ABLOY we develop
access solutions that
make life easier for
our customers.
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a printable
pdf here
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Good industry to be in | ASSA ABLOY as an investment
ASSA ABLOY | ANNUAL REPORT 2024
Digitalization and new
technologies
The rapid development of digital solutions is continu
ing in all areas of society and increasing the impor
tance of new technologies in access solutions. We see
the shift towards more electromechanical products
continuing and bringing with it many business
opportunities to develop new, more convenient and
secure access solutions, while supporting recurring
revenue. We also see the emergence of new business
models such as the shared economy, everything as a
service (XaaS), and ecosystems, which provide further
opportunities for our products.
ASSA ABLOY’s response:
With our sizeable R&D organization, we are at the
forefront of developing new solutions to meet the
ever-changing needs for secure and safe access solu
tions. Our electromechanical products and solutions
in the regional divisions has had a compounded
annual growth rate of about 9% in the last ten years.
To be able to benefit from new business models, we
are investing in strategic products and solutions as
well as entering partnerships specifically targeting
these new business models.
Sustainability
As concerns for the environment grow, customers
are increasingly looking for sustainable products
and solutions. This increases the demand for green
buildings and access systems. About 50% of all new
commercial buildings are now expected to be cer
tified according to green building standards. There
is increased demand for transparency regarding the
impact of products and production on people and the
environment. There is also increasing regulation for
more energy-efficient buildings and access solutions.
ASSA ABLOY’s response:
We continuously innovate and develop new products
to help our customers reduce their environmental
impact. One example of how we meet customer
demand is by offering Environmental Product
Declarations (EPDs). EPDs make our products more
attractive as they help our customers achieve higher
ratings in their green building certifications. Our
efforts within sustainability are paying off, particularly
in Europe where the demand for green specifications
has increased by more than 200% since 2020.
Local regulations
The regulations for access solutions vary between
markets. This diversity, combined with constantly
changing regulations, standards, and requirements
generates great complexity in our industry.
ASSA ABLOY’s response:
We are one of the few global players in the industry
capable of supplying access solutions that comply
with the constantly changing regulations in local
markets. We have a strong local presence with local
operations and product development in both mature
and emerging markets. Having a decentralized
organization with operations in more than
70 countries enables us to quickly deliver and
respond to local customer needs. This fosters good
customer relations and increases market demand
for our products and services.
Introduction
Who we are
ASSA ABLOY as an investment
• Good industry to be in
A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
Working with brands that are part
of ASSA ABLOY means a strong
partnership. For us, it is important
to know that this company is in it
for the long haul.
Quote from 2024 customer interviews
22
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A leading market position | ASSA ABLOY as an investment
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
• A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
A leading market position
Market leadership with strong
customer relationships
ASSA ABLOY has a strong global leadership and a
unique local market presence in over 70 countries.
We have the deepest knowledge of locks and access
solutions in the world, and the largest installed base,
which is continuously maintained and upgraded with
new solutions. We segment our customers and end
users into specific vertical markets to better under
stand their unique needs and provide customized
and targeted products and solutions. Institutional
and commercial customers represent about 2/3 of
total sales, while the residential market constitutes
about 1/3 of sales. Smart home security solutions,
such as digital locks, drive growth in the residential
sector. Our large installed base is important in our
efforts to transition to electromechanical products
and solutions.
The aftermarket represents 2/3 of our sales and
ensures greater stability in demand over a business
cycle. Renovations, replacements, upgrades, and ser
vices continue to generate revenue irrespective of the
economic environment. This reduces ASSA ABLOY’s
exposure to the cyclical demand that impact many
other companies and industries.
We have a long-standing history of strong rela
tionships with our channel partners, working with
the best to an extensive global and local network of
distributors and other sales partners. Our network en
ables us to reach customers quickly and distribute our
products and solutions with exceptional efficiency.
Building on our legacy of innovation, successful acquisitions, the largest
installed base, solid commitment to customer excellence, and unique
local expertise, ASSA ABLOY is truly the global leader in access solutions.
Together, these strengths create a strong competitive advantage, driving
our long-term profitable growth.
Sales channels
To be the brand of choice and have loyal cus
tomers we must offer world-class customer ex
periences. Our goal is to improve the customer
experience across all touchpoints with our
brands, and we are dedicating resources and
directing investments to better understand our
customers’ journeys with us and to identify op
portunities for improvement. For example, we
have assessed our customer e-business journey
in the hospitality segment, identifying ways to
improve the ordering experience. We have also
continued to invest in better understanding
the B2C customer journey, and projects are
generating both new business and product
opportunities for the Yale brand.
We continuously engage in partner feedback
dialogues. These conversations help us focus
on what matters most to customers and allow
us to remain one of the most attractive part
ners in our industry.
ASSA ABLOY
OEM
Integrators,
installers,
locksmiths and
retailers
Distributors/
wholesalers
End-customer
Create demand through management
of sales channels and channel partners
Create demand-pull through
specifications, brand loyalty
and recurring revenue
Truly global and uniquely local brands
We design products, services, and solutions for
creating access and help people feel safe and secure.
Growing strong, trusted brands is essential to retain
and attract new customers.
Our company and employer brand is ASSA ABLOY,
which is also our leading commercial brand. We also
have over 200 other strong brands across our core
businesses and markets, for example Yale, Kwikset and
Panpan covering the residential market, HID in identity
and access solutions and Vingcard in the hospitality
segment.
Using our well-known local product brands under
pinned by our global, industry-leading ASSA ABLOY
brand enables us to stay close to our customers and
their unique needs and deliver the long-term reliability
and peace of mind ASSA ABLOY is renowned for.
Our brands carry a distinctive value in the market,
and we have a robust process in place to protect the
intellectual property and integrity of our brands. We
collaborate with local and regional authorities to mon
itor the use of our trademarks on a global scale. These
unique assets help us to deliver our vision of being the
global leader in providing innovative access solutions
that help people feel safe and secure so that they can
experience a more open world.
Investing in sustainable innovation
to secure long-term growth
The access solutions industry is transforming through
digitalization, sustainability, changes in regulatory
requirements and shifting customer needs. These
transformations generate opportunities to create
new and greater customer value and thus secure
resilient growth. To be successful in this endeavor,
we invest in innovation.
In 2024, we invested around 4% of our revenue in
R&D. This represents an increase of SEK 2.2bn com
pared to 2020. During the same period, the number
of R&D employees increased by more than 1,300.
We leverage technology to ensure that our offer
ings maximize customer relevance now and in the
future. Core technologies include energy-efficient
23
ASSA ABLOY | ANNUAL REPORT 2024
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A leading market position | ASSA ABLOY as an investment
solutions, sustainable materials, wireless connectivity,
artificial intelligence and biometrics.
We have well-established processes for defining
what products we should develop and how they
should be developed. Product development is
conducted in close cooperation with end users and
customers to ensure the most relevant products are
made. An agile approach to innovation enables us to
respond quickly to change, innovate more effectively
and maximize value delivery and outcome.
We enable the organization to successfully deliver
breakthrough solutions by promoting exploration
of new opportunities and embrace a “fail fast – learn
fast” approach for higher potential return. We contin
ue to drive growth programs that systematically iden
tify and accelerate business opportunities outside of
daily processes through a fast-track approach. In late
2024, one of these acceleration programs launched
an AI-based solution for energy savings called “eco
LOGIC”, a subscription-based service for automatic
doors that combines door data, weather data and
pedestrian traffic data to optimize door behavior
and minimize unnecessary open time. AI algorithms
can save up to 14,000 kWh per year for a medium
sized street-facing shop and also helps reduce wear
and tear on the door by 2–7%. Another advantage is
an enhanced end user experience, with a more com
fortable indoor climate and fewer instances of doors
closing unexpectedly in front of customers.
Buildings account for a significant share of the
world’s CO2 emissions and climate change has
created a need for circularity and sustainable cities.
Therefore, sustainable solutions are a cornerstone
of our innovation efforts. Our solutions should be
sustainable by design, so that energy efficiency and
circularity is integrated into every aspect of our
product portfolios. This will guide our industry, cus
tomers, partners and end users to a more sustainable
future. We minimize the environmental impact and
embodied carbon footprint of new products, while
maximizing sustainability attributes, such as energy
efficiency. Our Sustainability Compass directs us
towards taking a lifecycle approach and raises the
profile of sustainability-related design criteria during
the development of new products.
Given our global reach, the local nature of our
industry, and our broad portfolio, we have an inno
vation organization that includes 195 R&D sites to
ensure that we maximize customer value in each
market where we are present. At the same time, we
leverage the Group’s size and broad expertise and are
organized to facilitate cross-divisional collaboration
as well as ensure that we capture synergies between
different local entities and divisions.
While we expect more long-term competitive
advantages from some of our investments, there are
also visible short-term effects. During the last three
years, we launched more than 1,400 new products,
corresponding to a new product ratio of 23% and we
registered 750 new patents.
An example of one product launch in 2024 is the
Yale Durus smart lock where both the lock housing
and battery pack are pre-assembled and hidden
inside the door leaf. Completely invisible from both
inside and outside, it still maintains all the features
of any of our smart door locks like WiFi connectivity,
auto-unlock and mobile access. Durus can be opened
with a mechanical key and since it comes with a wide
variety of door handles it is the perfect choice for
those who appreciate a solution that fits the aesthet
ics of the home.
Product leadership is and will continue to be critical
in our efforts to secure profitable, long-term growth.
Yale Durus, launched in 2024, with both
the lock case and battery pre-installed and
concealed inside the door leaf.
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
• A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
Pa
ck
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g
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En
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gy
in
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ASSA ABLOY’s
Sustainability Compass
Our Sustainability Compass is integrated
into our product development process.
The goal is to make our product portfo
lio more competitive and sustainable.
Vision
Empowerment
We have trust in
people
Innovation
We have the
courage to change
Integrity
We stand up for
what’s right
To be the global leader in providing innovative access
solutions that help people feel safe and secure so that
they can experience a more open world
Building sustainable
shareholder value
Providing added value to
our customers, partners
and end-users
Being a world leading
organization where
people succeed
Conducting business in
an ethical, compliant
and sustainable way
Sustainability
Financial targets
Priorities
Core values and beliefs
Mission
Strategic objectives
Growth through
customer relevance
Product leadership
through innovation
Cost-efficiency in
everything we do
Evolution through
people
Growth accelerators
• Actively upgrade installed base
• Increase service penetration
• Generate more recurring revenue
• Grow in emerging markets
• Pricing excellence
• Continue with successful acquisitions
Growth enablers
• Consolidate footprint
and focus on value added
• Optimize logistics
• Reduce product cost
10 %
growth / business cycle
16 –17 %
EBIT / business cycle
24
ASSA ABLOY | ANNUAL REPORT 2024
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A well-proven strategy | ASSA ABLOY as an investment
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
• A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
A well-proven strategy
that is delivering consistent
profitable growth
ASSA ABLOY has a strong position in an attractive
industry and a well-proven strategy. The ASSA
ABLOY strategy house is our common strategic
framework. It contains all the building blocks of our
strategy, providing a great foundation from which
we can accelerate our profitable growth to further
deliver shareholder value.
25
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ASSA ABLOY | ANNUAL REPORT 2024
A well-proven strategy | ASSA ABLOY as an investment
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
• A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
Vision and mission
Our vision provides us with direction and describes
what we want to achieve as an organization – to be
the global leader in providing innovative access solu
tions that help people feel safe and secure so they can
experience a more open world.
Our mission describes our role as a company, our
reason for being, and how we aim to serve our key
stakeholders.
Financial targets
Our financial targets are what we are aiming to
achieve financially over the business cycle. Our sales
growth target of 10% per year is based on 5% organic
growth and 5% growth through acquisitions. Our
target for the operating margin is 16-17%. On page 29
we show what ASSA ABLOY might look like in 2028 if
we achieve the targets.
Priorities
Our priorities are the key value-adding activities for
us as a Group. They are divided into growth acceler
ators and growth enablers. The priorities are further
described on pages 26–28.
Strategic objectives
Our four strategic objectives guide us in running the
company. “Growth through customer relevance” is
about understanding the ever-shifting needs of our
customers so that we can provide them with the
most appropriate solutions. “Product leadership
through innovation” is a key driver of differentiation
and organic growth. “Cost-efficiency in everything we
do” is our continuous focus on how we can improve
our cost efficiency to fuel investments for innovation
and future growth. “Evolution through people” is our
mission to be a world-leading organization where
people succeed.
Sustainability
Sustainability is integrated in everything we do.
We view sustainability as a journey of continuous
improvement, built on a foundation of transparency
and integrity. As the industry leader, we take
responsibility to mitigate climate change and
ensure the health and safety of our employees.
Our commitment to science-based targets
demonstrates our willingness to further improve our
competitiveness with sustainable products, solutions,
operations, and lead the industry. Supporting cus
tomers in fulfilling their sustainability agenda is essen
tial to accelerate growth through customer relevance.
Core values and beliefs
Our core values are empowerment, innovation, and
integrity. They communicate what we stand for as
an organization and are the foundation for how we
treat each other and work with our stakeholders. Our
values foster a sense of security and trust, as well as a
feeling of community and collaboration. They guide
our daily decisions and inspire us to act, enabling
opportunities for all employees to develop and grow.
Our values and beliefs are reflected in the “Together
We” program.
A well-proven strategy | ASSA ABLOY as an investment
26
ASSA ABLOY | ANNUAL REPORT 2024
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A well-proven strategy | ASSA ABLOY as an investment
Priorities
We have nine priorities that accelerate and enable our profitable growth.
Growth accelerators
To accelerate our profitable growth, we focus on six
growth accelerators across the organization. These
accelerators form the foundation for our growth,
efficiency, and sustainability.
Actively upgrade our installed base
The ongoing shift from mechanical to electro
mechanical and digital solutions is well underway
and gaining momentum in various end markets and
segments. This, combined with our large installed
base, presents an opportunity to deliver more con
venient solutions and further accelerate profitable
growth. With prevailing penetration rates still low, the
shift to electromechanical solutions continues to be
a long-term driver of profitable growth. We actively
support this shift by investing in development of our
electromechanical products and solutions to offer
customers more flexible and efficient solutions than
their current products.
The transition to electromechanical solutions is
mainly driven by a demand for safety and security
as well as efficiency and convenience. Our electro
mechanical solutions offer a high level of security
thanks to advanced authentication methods, unique
encryption technologies, the enablement of remote
monitoring and control, as well as the provision of
audit trails and access logs. All our recent solutions
are end-to-end tested for physical and digital threats
to provide our customers with the highest level of
security. They also offer opportunities for efficiency
gains and a higher level of convenience and flexibility
for our customers.
In response to growing demand for energy-efficient
technologies, we are also expanding innovations
in advanced technologies like energy harvesting
and management, reducing or eliminating battery
dependency to enhance customer experience and
sustainability.
Customer upgrades are also driven by our specifi
cation and technical advisory teams which actively
engage with end customers to address their needs.
For instance, Vasamuseet in Stockholm, Scandinavia's
most visited museum, replaced its mechanical
master-key system with a digital solution using
programmable keys and wireless cylinders from ASSA
ABLOY to solve problems with lost and misplaced
keys. Similarly, Hippodrome Côte d’Azur in France
resolved issues with unrestricted key duplication and
lock replacements through our SMARTair system,
delivering a flexible and cost-effective solution.
In 2024, our electromechanical currency adjusted
sales growth was 8% in the regional divisions.
Increase service penetration
We focus on growing our service business, primarily
within our Entrance Systems division. Our culture of
proactive engagement across the product and build
ing lifecycle leads to increased service penetration
and customer satisfaction.
Our teams collaborate with customers from plan
ning and installation to operation and renovation,
delivering durable, reliable systems that meet evolving
requirements and support sustainability goals. From
high-quality installations and preventive mainte
nance to responsive on-site and remote support, we
minimize downtime and disruption while extending
product lifecycles through upgrades and moderniza
tion. This further reduces our carbon footprint.
With our global reach and local expertise, we effec
tively service most doors and brands. The scale of our
operations allows for the development of innovative
solutions utilizing cloud-enabled tools, AI, and GenAI,
empowering teams to deliver efficient service.
Our commitment to digitalization and sustainability
is reflected in key innovations such as spare part
refurbishing, door upgrade packages, and data-driven
solutions for remote monitoring, assistance, and
predictive maintenance.
Our connected solution, ASSA ABLOY Insight,
exemplifies how we enhance door intelligence and
efficiency through features like remote control,
real-time monitoring, service planning, and critical in
sights designed to save time and money. For example,
it streamlines distribution by assigning trucks to the
correct docking doors in a distribution facility, trans
forming our role from door maintenance providers
into strategic partners.
Our @your service program guides technicians
through recruitment and career development, in
accordance with our vision and strategy. By expanding
our service capacity through recruiting new techni
cians, acquiring service and distribution providers, and
enhancing our overall service efficiency, we ensure
sustainable, long-term growth.
Vostio enhances hotel guests
experiences
Vostio is a cloud-based guest access management
solution for hotels. It enhances the guest experience
with features like keyless entry via mobile wallets, while
keeping costs predictable and data secure for the hotels.
We are transitioning Vostio from traditional revenue
streams to a subscription-based approach. This shift not
only modernizes our service offering but also presents
a growth opportunity as we can upgrade our global
installed base from on-premises systems to a cloud-
based model.
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
• A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
Service sales
SEK M
0
5,000
10,000
15,000
20,000
24
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21
20
Electromechanical sales
SEK M
0
10,000
20,000
30,000
40,000
50,000
24
23
22
21
20
compounded annual
growth rate since 2020
compounded annual
growth rate since 2020
14%
16%
27
ASSA ABLOY | ANNUAL REPORT 2024
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A well-proven strategy | ASSA ABLOY as an investment
Generate more recurring revenue
The shift toward digital products and services and our
extensive installed base present significant opportuni
ties to unlock recurring revenue streams. By expand
ing our offering with innovative new products and
solutions that integrate seamlessly with our existing
systems, we can encourage customers to upgrade their
current installation. The integration of SaaS further
enhances this potential. We design complete solutions
that fit seamlessly into a subscription-based model.
This involves a concerted effort to enhance our training
programs, sales, pricing, and marketing initiatives, but
we also invest in the necessary infrastructure, tools
and processes to support and sustain growth within
this area. Through connected platforms and cloud-
based solutions, we can provide ongoing value to our
customers and end-users.
To grow recurring revenue from service agree
ments, we develop customer segment-specific prod
ucts and solutions. We are leveraging value-based
pricing and adding services that utilize IoT and
connected technologies to improve conversion rates.
Guaranteeing uptime and extending the lifespan of
our products adds significant value for our customers.
This not only boosts sales and profitability but also
increases customer loyalty and sustainability.
Emerging markets
Emerging markets offer significant growth potential.
Representing about 13% of ASSA ABLOY sales, emerg
ing markets has had an average annual growth rate of
10% per annum in the past ten years excluding China.
Our strategy consists of finding suitable acquisi
tions as a base to enter a market while also launching
products and solutions specifically tailored to their
local needs and requirements.
We continue to invest in people to build local
footprints and knowledge. For example, this includes
setting up local assembly points and manufacturing
facilities to better serve local needs, specifying prod
ucts from multiple divisions to offer our customers
full solutions, and setting up local installation and
service teams.
Currency adjusted sales generated in emerging
markets grew by 10% in 2024 excluding China.
Pricing excellence
Our pricing strategy reflects our position as a leading
company in many markets, emphasizing our com
mitment to innovation and customer satisfaction.
Our approach is decentralized and close to each local
market, designed to ensure competitive advantage
while meeting the diverse needs of our customer
base. We continuously monitor and adjust our pricing
strategy to align with strategic objectives and deliver
value to customers and shareholders.
By understanding what our customers value most,
we set prices that align with these benefits, enhancing
customer satisfaction and profitability. Thus, we use a
value-based pricing strategy, ensuring that our prices
reflect the unique benefits and high quality of our
products and solutions.
Continue with successful acquisitions
We have acquired almost 400 companies globally
since ASSA ABLOY was established in 1994. In many
cases, the businesses are leading access providers in
their respective markets with a well-established cus
tomer base, channels to market and brands. We aim
to realize synergies while growing the businesses and
increasing their profitability. The strategic rationale
for each acquisition falls into one of four areas with
well-defined investment criteria:
• Grow the core – to expand geographically or access
an installed base in an existing market
• Extend the core – by finding suitable adjacent
businesses or increasing our offering to maximize
customer relevance
• Access new technologies – to complement our
offering and open doors to new end-market
verticals and segments
• Grow our service and distribution offering – to
obtain direct channel and aftermarket presence
Our well-structured acquisition strategy ensures
a seamless process from target identification to
integration and follow-up. Key elements include our
decentralized operating model, where each division
has its own M&A team to enable many parallel pro
cesses and to leverage their strong local knowledge.
We also have standardized procedures for agile and
efficient decision-making. Clear criteria for business
characteristics and financial conditions, paired with
Subscription-based sales
24
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22
21
20
Acquired growth
%
0
2
4
6
8
10
24
23
22
21
20
Daniel Ukazu
is a Production
Technician and
building a locker at
our Traka factory in
Olney, UK.
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
• A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
solid integration plans, enable us to realize strong
synergies. Recognizing the importance of people,
we prioritize cultural and competence alignment to
ensure successful integration. Our acquired businesses
have generated significant value following integration.
In 2024, we completed 26 acquisitions, adding
sales of approximately SEK 8 bn. With our target
pipeline of more than 900 potential acquisitions
globally, and a solid financial position with a strong
balance sheet and cash flow, we are well positioned to
continue our successful acquisition journey.
compounded annual
growth rate since 2020
acquired sales
since 2020
27%
SEK
29 bn
28
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Growth enablers
To accelerate our profitable growth through the
growth accelerators, we focus on three growth
enablers across the organization. These enablers
form the foundation for our growth, efficiency, and
sustainability.
Consolidate footprint
Since 2006, we have optimized our manufacturing
footprint by consolidating and improving our produc
tion structure and overall manufacturing efficiency.
We have launched a series of Manufacturing Footprint
Programs (MFP), which have contributed with total
accumulated savings of SEK 7.8 bn. Our restructur
ing programs in 2024 contributed with efficiency
improvements of SEK 684 M and a net employee
reduction of 885.
We normally produce key components, such as
cylinders, rim locks, door closers, and electro
mechanical products, in our own production plants,
while sourcing other components from trusted
external partners. Our strategy focuses on assembly
operations to sophisticated plants close to customers,
primarily in mature markets to better adapt products
to local requirements. Where suitable, we are also
investing in automation and robotics to help improve
manufacturing efficiency.
Our future MFP programs will further improve our
operating efficiency and strengthen our competitive
ness. We will further streamline our production plat
form, warehouses and office footprint. By optimizing
resources and facilities, we increase the efficiency in
our operations, reduce redundancies, and improve
coordination across ASSA ABLOY.
Optimize logistics
Optimizing our logistics network is also important for
cost efficiency, improving delivery times, strength
ening supply chain resilience and ultimately the cus
tomer experience. Our global logistics strategies are
designed to foster collaboration across regions while
accommodating the specific needs of each division.
In 2024, we advanced our ocean transportation
strategy through the implementation of a 2+ partner
model. This approach ensures supply chain reliability
A well-proven strategy | ASSA ABLOY as an investment
SEK M
0
200
400
600
800
1,000
24
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21
20
Annual MFP savings
Annual MFP savings
2020–2024.
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
• A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
and cost control by leveraging an agile and resilient
framework. At the core of the strategy is a partnership
structure comprising one direct and two indirect
partners, providing flexibility, risk mitigation through
dual sourcing, and robust coverage. The strategy
delivers end-to-end visibility and control, acceler
ating inventory flow and optimizing consolidation
for the best cost per kilogram. In 2024, this strategy
delivered more than SEK 100 M in savings. By encour
aging internal collaboration, we maximize spending
efficiency and streamline our logistics footprint.
Reduce product cost
Professional sourcing is a crucial aspect in reducing
the cost and environmental impact of our products.
Through our global sourcing activities we ensure
improved quality, competitiveness, better delivery
times, and lower costs. We are constantly reviewing
our supply base and streamlining our component
assortment to leverage volumes. Through practices
such as multi-tendering, should-cost analysis, bench
marking, and Group-wide contracts, we evaluate
competitiveness as well as optimize processes. For
example, we have established a global team that
developed a Group-wide electronics semiconduc
tor strategy to utilize the strength of our scale, and
collaborate efficiently with R&D to ensure supply
chain continuity. Sourced goods make up a significant
share of our cost base, and sourcing is an important
element to achieve cost efficiency.
Value analysis and value engineering (VA/VE)
methodology optimizes costs for our products
and components. Value engineering is applied to
products not yet launched to examine where costs
can be reduced or value can be added, without
compromising quality or functionality. After the
product is launched, we continuously conduct value
Cost-efficiency is an enabler for
profitable growth.
analysis for continued optimization. Through product
reengineering, material standardization and opti
mization, and scrap optimization, we systematically
reduce costs and improve resource utilization while
increasing customer value.
29
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Financial targets | ASSA ABLOY as an investment
ASSA ABLOY in 2028
Over a business cycle, we target sales growth of 10%
per year, equally split between organic growth and
growth through acquisitions, with an EBIT margin of
16–17%.
Over the last 15 years, sales have grown with a
compounded annual growth rate of approximately
9%. This is despite external challenges including the
pandemic, supply chain issues, geopolitical unrest
and war in Europe. During the same period, we have
had an average adjusted EBIT margin close to 16%.
Being a market leader with a well-proven strategy,
in an industry with strong fundamental growth driv
ers, puts us in a strong position to reach our financial
targets. As we execute on our strategy and ambitions,
we will expand our electromechanical product
portfolio, we will have a bigger presence in emerging
markets, and a larger service business. Further
more, this entails that we will have a larger share of
recurring revenue driven by an increased demand for
mobile access solutions and other software solutions
supporting access control. We will also grow through
acquisitions that will contribute to the success of
ASSA ABLOY.
Finally, if we deliver on our strategy and in line with
our financial targets, ASSA ABLOY’s sales should reach
about SEK 220 bn in 2028 with an operating profit
of about SEK 35 bn.
We have set ambitious financial
targets, aimed at balancing growth
with a profitability level which can
create substantial value.
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
A well-proven strategy
• Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
• Actively upgrade installed base
• Increase service penetration
• Generate more recurring revenue
• Grow in emerging markets
• Pricing excellence
• Continue with successful acquisitions
...if we deliver according to our financial targets
5%
5%
16–17%
• Consolidate foot
print and focus on
value added
• Optimize logistics
• Reduce product
cost
Organic growth
Growth accelerators
Growth enablers
Sales of SEK ~220 bn
2028
EBIT of SEK ~35 bn
M&A growth
EBIT-margin
30
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
download
a printable
pdf here
Case | ASSA ABLOY as an investment
Erste Group elevates
banking experience
Q What is the project/challenge.
A – Each country had its own version of George,
and due to local compliance, language nuances, and
customer service expectations, managing multiple
authentication vendors across these markets made it
difficult to ensure a unified and streamlined authenti
cation process.
– We needed a solution that could meet compli
ance standards and provide a seamless digital banking
experience for millions of users.
Q What is the solution/product?
A – HID Approve, powered by HID’s cloud-based
Authentication Platform, was seamlessly integrated
into George, making the banking app consistent
across markets. Combined, the solutions enabled
fast, secure user authentication and transaction
verification through a scalable cloud model. The
platform’s flexibility met diverse Strong Customer
Authentication (SCA) needs, supporting methods
like one-time password (OTP) and biometrics. During
the phased migration, HID’s Professional Services
collaborated with Erste to ensure a smooth transition.
– We selected HID’s solution for its scalability,
compliance with the Payment Services Directive
Two and Open Banking with dynamic linking – a true
mobile-first approach. The ability to log in and move
money must work every time, so we needed to per
form the rollout in small groups to avoid a roll-back
situation.
Q Why did Erste Group choose ASSA ABLOY and how
did we solve the challenges?
A – The collaboration with HID to deliver a well-
designed solution throughout the journey was
crucial. HID was with us every step of the way and not
only offered great technical solutions but also highly
valuable services that enabled the digital onboarding
journey in George to be reliable and user friendly for
all our customers.
CASE FACTS
Project: Erste Group,
Central and Eastern
Europe
ASSA ABLOY products
and solutions:
HID Approve
Erste Group is one of the largest major banking groups in Central and Eastern Europe,
aiming to provide a seamless and secure digital banking experience while maintaining
local compliance requirements across multiple markets and maintaining a consistent
user experience for their banking platform, George.
ASSA ABLOY
in your daily life
HID was with us every step of the
way and not only offered great
technical solutions but also highly
valuable services
31
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Good industry to be in
A leading market position
A well-proven strategy
Financial targets
Divisions overview
Report of the Board of Directors
Financial statements
download
a printable
pdf here
Case | ASSA ABLOY as an investment
Tailored solutions to meet
sustainability goals in BREEAM
certified logistics center
Q Tell us about the project!
A – The goal was to construct a 20,000 sqm
BREEAM-certified logistics center with minimal
embodied carbon and operational carbon footprint
while still meeting traditional warehouse require
ments like free clearance height, floor load-bearing
capacity, number of dockings, column grid, etc.
We also put a strong emphasis on the building's
architecture, biodiversity, and the well-being of the
people who will be using it.
Q What were your specific needs?
A – Our primary challenge was finding products that
were not only certified and approved according to
relevant standards but had also undergone rigor
ous full-scale testing. Many suppliers offering new
sustainable alternatives are start-ups whose products
have not yet been extensively tested. Therefore, it
is challenging to ensure that these materials can be
used effectively and reliably. That is why we turned
to ASSA ABLOY – they could provide the products we
needed.
Q Which solutions did you choose?
A – For this project, ASSA ABLOY provided 17
complete loading docks, including dock levelers,
weather protection, and overhead sectional doors.
Together with ASSA ABLOY, we also developed
wooden-based load houses with inflatable shelters
to meet our specific needs.
Q In what ways has ASSA ABLOY contributed to your
sustainability goals?
A – ASSA ABLOY constructed optimized loading
docks that significantly reduced the amount of steel
used, which directly lowered the product's carbon
footprint. By focusing on reducing embodied carbon,
their solutions aligned perfectly with our goals and
ambitions. With their help, we balanced operational
efficiency and environmental responsibility in this
project.
CASE FACTS
Project: Bålsta,
Stockholm, Sweden
ASSA ABLOY products
and solutions:
Dock levelers, inflatable
shelters, overhead
sectional doors, and
the development of
wooden-based load
houses with inflatable
shelters.
ASSA ABLOY Entrance Systems delivered custom industrial door and docking
solutions to support Logicenter's ambitious sustainability targets in the
construction of a BREEAM-certified logistics center in Bålsta, Stockholm, Sweden.
ASSA ABLOY
in your daily life
EVA STERNER, HEAD OF DEVELOPMENT LOGICENTERS, NREP
ASSA ABLOY constructed optimized
loading docks that significantly
reduced the amount of steel used,
which directly lowered the
product's carbon footprint.
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ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
download
a printable
pdf here
32
ASSA ABLOY | ANNUAL REPORT 2024
Divisions
overview
ASSA ABLOY has a decentralized organization
with empowered local businesses that quickly
can take action in response to developments in
the local market. Our businesses are organized
in three regional and two global divisions.
The global divisions manufacture and sell
access solutions, identification products and
entrance automation in the global market.
Global Technologies accounts for about 16%
of the Group sales and Entrance Systems for
about 33%.
33
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Overview highlights | Divisions overview
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
• Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Opening Solutions
EMEIA
• Sales: SEK 25,098 M (24,831)
with 0% organic growth.
• Operating income (EBIT):
SEK 3,552 M (3,388).1
• Operating margin: 14.2% (13.6).1
n Mechanical locks, lock systems
and fittings, 47%
n Electromechanical and
electronic, 34%
n Security doors and
hardware, 19%
16%
14%
1 Excluding items affecting comparability.
The regional divisions manufacture and sell
mechanical and electromechanical locks, digital
door locks and smart home access solutions,
high-security doors, fire doors and hardware
adapted to the local market’s standard and
security requirements. The regional divisions
account for about 50% of Group sales, with
Americas being the largest division followed
by EMEIA, and Asia Pacific.
Share
of sales
Financials in brief 2024
Share of
operating income
Sales by
product group
Regional divisions
Share
of sales
Financials in brief 2024
Share of
operating income
Sales by
product group
Global divisions
n Mechanical locks, lock systems
and fittings, 49%
n Electromechanical and
electronic, 24%
n Security doors and
hardware, 26%
29%
33%
Opening Solutions
Americas
• Sales: SEK 44,340 M (38,009)
with +2% organic growth.
• Operating income (EBIT):
SEK 8,207 M (7,186).1
• Operating margin: 18.5%
(18.9).1
Opening Solutions
Asia Pacific
• Sales: SEK 9,120 M (10,284)
with –6% organic growth.
• Operating income (EBIT):
SEK 619 M (662).1
• Operating margin: 6.8% (6.4).1
n Mechanical locks, lock systems
and fittings, 57%
n Electromechanical and
electronic, 18%
n Security doors and hardware,
25%
5%
2%
Global
Technologies
• Sales: SEK 24,179 M (23,099)
with -2% organic growth.
• Operating income (EBIT):
SEK 4,224 M (3,996).1
• Operating margin: 17.5%
(17.3).1
n Access solutions, 79%
n Hotel locks, 17%
n Service, 4%
16%
17%
Entrance
Systems
• Sales: SEK 49,451 M (46,665)
with -1% organic growth.
• Operating income (EBIT):
SEK 8,493 M (7,807).1
• Operating margin: 17.2%
(16.7).1
n Products, 71%
n Service, 29%
33%
34%
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ASSA ABLOY | ANNUAL REPORT 2024
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pdf here
Opening Solutions EMEIA | Divisions overview
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
• Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Opening Solutions EMEIA
The shift to electromechanical and digital
solutions is gaining momentum
Financial development
EMEIA ended 2024 with stable organic development after gradually
recovering from a weak start of the year due to low activity in the res
idential construction segment. Central Europe delivered good sales
growth driven by strong growth in Eastern Europe and the Middle
East/ India/Africa and the Nordics had stable growth. South Europe
was stable while sales declined in the UK and Ireland due to weak
residential demand. Acquired growth for the year was 1%. Through
pricing efforts, Manufacturing Footprint Program (MFP) initiatives,
and a strong cost focus, EMEIA managed to improve the operating
income by 5% and the corresponding margin was 14.2% (13.6%). The
cash flow was SEK 3,872 M with a conversion rate of 109%. We have
continued to invest in R&D as it is a long-term enabler for future
growth, and it will support our competitive advantage. New products
introduced over the past three years accounted for 23% of sales.
Acquisitions
Two acquisitions were completed during 2024. We acquired Amecor,
a South African manufacturer of security communication equipment,
and Roger, a Polish manufacturer of on-premise electronic access
control systems and related hardware.
• Divisional headquarters located in Woking, UK.
• EMEIA is organized into five market regions:
the Nordics (Scandinavia and Finland); Central
Europe (Germany, Austria, Switzerland,
Benelux and East Europe); UK/Ireland; South
Europe (France, Iberia, Italy and Greece); and
MEIAI (Middle East, Africa, India and Israel).
• Products include mechanical and electro
mechanical locks, hardware and security doors,
adapted to the standards and requirements
of local markets.
• The commercial and residential products are
sold under the ASSA ABLOY brand and brands
endorsed by ASSA ABLOY, such as Yale, ABLOY,
Vachette and TESA.
• EMEIA has leading market positions in Europe,
the Middle East, India, and Africa.
• EMEIA has about 12,200 employees.
Overview EMEIA
Proportion of commercial/institutional vs residential
Through pricing efforts, MFP initiatives, and a strong cost
focus, we managed to improve the operating margin by
60bps to 14.2%
Yale Smart Keypad 2 upgrades Yale smart
products with fingerprint and code entry.
n Commercial/Institutional,
60%
n Residential, 40%
Sales, SEK M
Operating income1, SEK M
10,000
15,000
20,000
25,000
24
23
22
21
20
Sales
1,000
2,000
3,000
4,000
Operating income1
1 Excluding items affecting comparability.
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ASSA ABLOY | ANNUAL REPORT 2024
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Opening Solutions EMEIA | Divisions overview
Comments by Divisional Head
What was your main focus in 2024?
– Our focus was to continue navigating the tough economic
conditions, particularly in the residential space due to high inflation
and interest rates which had a clear impact on both new builds and
renovations. Digitalization of the market has continued, with a shift
from mechanical to digital solutions in both the commercial and
residential space. Our focus on providing a complete access manage
ment ecosystem is fueling growth as it brings all elements of the door
environment together and allows us to deliver the best solutions for
our customers. Providing Environmental Product Declarations (EPDs)
increases our probability of securing a tender, as demand for green
certifications grows due to the industry’s decarbonization efforts.
What are your key priorities to accelerate
EMEIA’s profitable growth?
– The first priority is the mechanical core, with focus on products
such as cylinder platforms, lock cases, and seals. The second is about
capturing the digitalization of the residential sector through, for exam
ple, focusing on our Yale Smart Security Ecosystem. We are constantly
focusing on growing our offering in the commercial space, including
digital and electromechanical solutions, to win important projects
with our complete access portfolio. Staying close to our customers
remains a priority. We achieve this through our business areas, which
are dedicated to developing strong customer relationships and
satisfaction, supported by clear, coordinated product strategies.
Where are you in the transition from mechanical to electro
mechanical and how are you increasing the speed of adoption?
– While our product portfolio is more interconnected than ever, and
we are helping our customers to digitalize and future-proof their
buildings with a wide range of access solutions, we are still in the
early phase of the transition from mechanical to electromechanical
products and solutions. Our solution-focused approach connects
our portfolio and simplifies our customers’ choices, and this is seen
through high adoption rates in the Nordics and in Central Europe.
A couple of years ago, EMEIA acquired Arran Isle, which is your
biggest acquisition in more than 20 years. How has this integration
worked?
– As a market leader in the architectural, decorative, functional door
and window hardware categories, Arran Isle’s product range is exciting
and complementary to our offering. They have a truly excellent go-
to-market approach and great reputation for high levels of customer
service, which our OEM channel demands. Our integration activities
have gone according to plan, and it is great to see colleagues from
both Arran Isle and the ASSA ABLOY UK/Ireland business working
together to deliver both growth and efficiency benefits.
Neil Vann
Executive Vice
President
and Head of
EMEIA division
The ongoing shift from mechanical to electro
mechanical and digital solutions is underway and
gaining momentum in various end markets and
segments across the EMEIA region. This, combined
with our large installed base presents an opportunity
to offer more convenient solutions and further accel
erate our profitable growth. Recognizing the demand
for energy-efficient solutions, we have focused on
advanced technologies like energy harvesting and
management to eliminate or extend battery use.
With the transition to electromechanical, recurring
Strategic priorities
Highlights
revenue continues to be a key strategic action. We
have increased our offering with a variety of subscrip
tion models across EMEIA. We offer annual service
contracts and maintenance agreements that provide
peace of mind to our customers.
We continued our growth in emerging markets.
In the Middle East, we have collaborated cross-
divisionally at our new state-of-the-art regional head
quarters to provide customers with a holistic ASSA
ABLOY product offering, resulting in many project
wins particularly in the multi-residential space.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
• Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Sustainability
• Published 13 new
EPDs, reaffirming our
commitment to
transparency and
sustainability, and
helping our customers
contribute towards
green building
certifications such as
BREEAM and LEED
• Accelerated solar
installations in
multiple countries
resulting in 82% of the
electricity used in
2024 coming from
renewable sources
• Completed a strategic
energy overhaul at
two of our main
production sites in
France, contributing to
a total energy saving
of 370 metric tons of
CO2 and approximately
2,100 MWh
Costs
• Materials price
inflation continued
to provide a chal
lenging environment,
and we countered
much of this through
strong procurement
actions to leverage
our supply base and
price management,
and accelerated value
engineering
• Development of a
linked network of
distribution centers
across Europe to
drive efficiency and
improved service
throughout our supply
chain
Market activities
• Participation at many
high-profile exhibi
tions across EMEIA
such as BAU 2024 in
Germany
• Achievement of over
1 million Yale Doorman
smart door locks sold
in the Nordics since its
introduction in 2011
• Continued to shift our
product mix towards
the opportunities
that digital and cloud
based solutions
provide
Innovation
We continued to shift
our product mix towards
the opportunities that
digital and cloud-based
solutions provide. We
launched 43 new prod
ucts, for example:
• Yale Linus L2 Smart
Lock, Smart Keypad
2 with fingerprint
access and a variety
of new smart
residential products
compatible with the
Yale Smart Ecosystem
• A new electro
magnetic door that
secures classified
data and military,
government and
diplomatic facilities
• Extension of the
Aperio product
family, with the
Aperio cabinet lock
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ASSA ABLOY | ANNUAL REPORT 2024
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Opening Solutions Americas | Divisions overview
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
• Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Opening Solutions Americas
The integration of HHI is well underway
Financial development
Americas reported good sales growth of 2%, primarily driven
by strong sales growth in Latin America, good growth in the
North America Non-Residential segment and stable in the North
America Residential segment. The non-residential market has held
up well during the year, whereas the residential market stabilized
and partly grew following a downturn in the activity level in the prior
year. Excluding items affecting comparability, the operating income
increased 14% with a margin of 18.5%. Cash flow was SEK 7,581 M
and the conversion rate 92%. New products introduced over the
past three years accounted for 25% of sales.
Acquisitions
Five acquisitions were completed during the year. We acquired
Wesko Locks, a Canadian manufacturer and supplier of electronic
and specialty locks; Cole Kepro, a US recognized leader in gaming
cabinets, kiosks, mailbox and personal storage equipment; Level
Lock, a US technology solutions business; Premier Steel Doors and
Frames, a US manufacturer of hollow metal doors and frames, metal
building door systems, and aluminum windows; and Norshield
Security Products, a US manufacturer of high-security openings
and enclosures.
• Divisional headquarters in New Haven,
Connecticut, US.
• Americas is organized into three business
segments: North America Non-Residential,
North America Residential and Latin America.
• Products include mechanical and electro
mechanical locks, hardware, secure lockers,
access control devices, security doors and
plumbing.
• The Americas has a strong brand portfolio
consisting of strong-endorsed and soft-
endorsed brands. In North America, we have
strong residential brands such as Kwikset,
Baldwin, and Weiser, and manage strong
commercial brands like Sargent, Curries, and
NortonRixson. We use strong local brands in
South America, like Papaiz, Odis, Philips,
as well as Yale.
• Americas has leading positions in the US,
Canada, Mexico and South America.
• Americas has about 17,900 employees.
n Commercial/
Institutional, 55%
n Residential, 45%
Overview Americas
Proportion of commercial/institutional vs residential
We continue to see significant growth in our businesses
focused on electromechanical products and solutions
across residential and commercial markets.
Kwikset UNITE™ delivers a simple
yet comprehensive solution for
managing multifamily properties.
Sales, SEK M
Operating income1, SEK M
15,000
25,000
35,000
45,000
24
23
22
21
20
Sales
3,000
5,000
7,000
9,000
Operating income1
1 Excluding items affecting comparability.
37
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Opening Solutions Americas | Divisions overview
Comments by Divisional Head
What was your main focus in 2024?
– The integration of HHI into the North America Residential segment
remains a significant focus for the Americas division, and it continues
to be a positive experience. We also emphasized the commercializa
tion of new products across the division, ensuring we get innovations
into the hands of our customers as quickly as possible. In connection
to that, we are focused on expanding our footprint to be closer to the
customer.
What are your key priorities to accelerate profitable growth?
– Focusing on operational efficiency has always been the cornerstone
of our success in the Americas division. We remain committed to opti
mizing this as much as possible through robust logistics, strong supply
chain management, and maintaining good delivery lead times for our
customers. On top of this, we have three main priorities for acceler
ating growth: on the residential side, we need to continue investing
in our operational and supply chain network and launch innovative
products for the US and Canadian markets. In Latin America, our
top priority is to grow in the commercial and access control market.
Speed to customers is critical in this market, so we continue to focus
on our local footprint. Finally, in the commercial segment, we remain
committed to growing the electromechanical business and fully sup
porting our customers with the transition from mechanical to digital.
Where are you in the transition from mechanical to electro
mechanical and how are you increasing the speed of adoption?
– The journey from traditional mechanical to electromechanical
products is progressing well. We continue to see significant growth in
our businesses focused on electromechanical products and solutions
across residential and commercial markets. To support an easier
transition to electromechanical, we are focused on expanding our
product portfolio to encompass different price points and feature sets
or capabilities. Also, leveraging our Level Lock acquisition will enable
us to bring new technologies with a premium design faster to market
across several brands and vertical markets.
What synergies have you realized with the 2023 HHI acquisition,
and what are the key priorities for the coming years?
– The acquisition of HHI was the largest in ASSA ABLOY history, and the
integration of this business is going very well. The residential team’s
values mirror those of ASSA ABLOY perfectly, which has been extremely
beneficial to the integration process. Their involvement in many of
our divisional programs has been seamless. We see several growth
opportunities in multi-family housing, specifications, and technology
sharing across segments. On the cost side, we are realizing significant
savings in raw materials, office consolidation, insource of categories,
and transportation.
Lucas Boselli
Executive Vice
President and
Head of Americas
division
We continued strengthening our core business,
expanding into new markets, and developing our
technology portfolio with a strong acquisition pipe
line. During the year, we completed five acquisitions
that reflect our strategic ambitions to grow the core
in mature markets while creating a stronger presence
in adjacent markets.
To further differentiate our product offering, we
are getting closer to our customers in both resi
dential and commercial markets. We opened a new
Door Service Center in Orlando that services the
Strategic priorities
Highlights
southwestern region of the US, and a new FlashShip
location was opened in the San Francisco Bay Area to
provide quick-ship services to our growing customer
network on the west coast.
We enhanced our digital offerings with solutions
like Centrios, a mobile-first platform for small
businesses with a dedicated app offering different
subscriptions based on end-user needs. Similarly, we
launched Kwikset UNITE™, a smart, mobile-enabled
platform that offers seamless access control to multi-
family properties in North America.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
• Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Sustainability
We continue to
implement multiple
sustainability initiatives
across the division,
including carbon
footprint reduction,
water intensity
improvements, and
safety measures,
for example:
• Implementation of
water recirculation
systems at various
sites significantly
reduced consumption
• Improvements made
through air compres
sors, electroplating,
and heaters to reduce
emissions
• Multisite safety
initiatives launched to
proactively prevent
incident occurrences
Costs
• We have realised
several synergies
relating to the HHI
acquisition
• Continued focus
on cost efficiency
from targeted lean
initiatives, kaizen
events, value analysis,
and value engineering
events
• Dual sourcing and
supplier negotiations
generated good
savings
• Several businesses
focused on logistics
and supply chain opti
mization initiatives
• Cost savings activities
related to robotics
deployment, auto
mation, smart factory
initiatives, and quality
improvement
Market activities
• Control iD expanded
its biometrics and
facial recognition
offering throughout
the Latin America
region
• At GSX 2024 in
Orlando, a new access
control solution was
showcased that allows
Spot security patrol
robots from Boston
Dynamics to unlock
and open access-
controlled automated
doors autonomously
• The geographical
expansion in Latin
America continued
with the opening of
two new warehouses
to improve service
levels in the region
Innovation
During the year, we
collaborated with the
University of Connecticut
to reduce the carbon
footprint in door con
struction and researched
sustainable materials
for new products. We
also launched 265 new
products, including:
• Control iD UHF
Reader for gates and
iDFace biometric
reader
• Corbin Russwin
and Sargent's new
electric bored lock
solutions use EcoFlex
technology
• Norton Rixon low en
ergy 4500 and 5200
series operators
• New Grammercy,
Briarcrest and
Nashville design
levers from Baldwin
38
ASSA ABLOY | ANNUAL REPORT 2024
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Opening Solutions Asia Pacific | Divisions overview
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
• Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Opening Solutions APAC
Improved margin despite very weak
demand in China
Financial development
APAC posted an organic sales decline of 6% in 2024, due to a
continued very weak Chinese construction market as well as
continued soft residential demand in South Korea and Australia/
New Zealand. South-East Asia held up well but faced high comparable
sales figures from the previous year that led to negative sales growth
in the second half of 2024.
Despite sales declining, APAC managed to improve the operating
margin by 40bps to 6.8% and the operating income reached
SEK 619 M (662). Cash flow was SEK 997 M (1,213) with a conversion
rate of 161%. New products introduced over the past three years
accounted for 27% of sales.
Acquisitions
No acquisitions were completed during the year.
• The division is organized into two business
units: Greater China & Southeast Asia and
Pacific & North-East Asia. The largest market
by sales is China, followed by Australia and
South Korea.
• The local organization in China is divided by
market segment and the other regions in Asia
and Pacific are organized according to market
segments or region/country structures.
• Products include mechanical and electro
mechanical locks, hardware, and security doors
adapted to the standards and requirements of
local markets.
• ASSA ABLOY is the main brand for products in
commercial markets. The residential products
are sold under various strong local and global
brands such as Yale, PanPan, Gateman and
Lockwood.
• Asia Pacific has a leading position in Australia
and New Zealand, as well as in some Asian
countries.
• Asia Pacific has about 6,800 employees.
n Commercial/
Institutional, 50%
n Residential, 50%
Overview APAC
Proportion of commercial/institutional vs residential
One key priority is to grow the core, building on
sustainability and a constantly changing regulatory
environment.
The new Yale Unity Smart Lock
launched in Australia this year.
Sales, SEK M
Operating income1, SEK M
0
4,000
8,000
12,000
24
23
22
21
20
Sales
0
500
1,000
1,500
Operating income1
1 Excluding items affecting comparability.
39
ASSA ABLOY | ANNUAL REPORT 2024
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Opening Solutions Asia Pacific | Divisions overview
Comments by business unit heads
What was your main focus in 2024?
– While macroeconomic conditions have affected residential sectors in
our markets, there has been growth in commercial with good government
investment in health and education, along with strong growth in data
centers. Our number one priority continues to be on volume growth. We
still see many expansion opportunities in our core business with a specific
focus on the specification business and the window business in the US.
Our specification business has grown in all markets with especially strong
demand in New Zealand and South Korea. We have also concentrated
on driving growth in Commercial Solutions China and prioritizing our
cross-regional cooperation and export capabilities within our production
company, which has resulted in a notable growth in sales points.
What are your key priorities to accelerate APAC’s profitable growth?
– One key priority is to grow the core, building on sustainability and a con
stantly changing regulatory environment and the accelerating adoption
of electromechanical products in the commercial and smart residential
segments. Another priority is growing replacements in the residential
segment. By expanding the points-of-sale network, we come closer to
our local customers. Leveraging new sales channels and delivering good
customer service are also key to our growth in the replacement market.
Where is APAC in the transition from mechanical to electromechanical
and how are you increasing the speed of adoption?
– The transition to electromechanical solutions is still at an initial phase.
To accelerate this adoption, we are prioritizing the modernization of our
commercial solutions by integrating access control systems into tradi
tional mechanical locks and push bars, unlocking substantial potential
for growth. In the residential market, we are raising awareness of the Yale
brand to promote the shift from mechanical to digital locks. The market
is moving to connected locks at a higher adoption rate, increasing the
importance of our Yale Home App.
Which areas are in focus to stimulate a turnaround in China?
– We are focused on maintaining profitability despite market shrinkage
by increasing sales points, and on improving individual store performance.
We are controlling costs through value analysis and value engineering
projects, lean manufacturing, and refining our organizational structure to
enhance efficiency. We focus on further strengthening our position in the
commercial segment.
It’s been about two years since you acquired Caldwell and D&D
Technologies; how has the integration of these two companies been?
– We completed a successful integration of Caldwell, which is now trading as
a single entity. The consolidated entity offers one of the most comprehensive
window product ranges in the US market for both projecting and sliding
windows. The business is well positioned to continue the growth journey
after experiencing strong volume growth in 2024. The D&D Technologies
integration has also been completed with continued growth during the year.
2025 looks bright with exciting new products soon to be launched.
Simon Ellis
Executive Vice
President
and Head of
business unit
Pacific & North
East Asia
Martin Poxton
Executive Vice
President and
Head of business
unit Greater
China & South
East Asia
The transition to electromechanical and digital
solutions is a key factor for growth, and we have
expanded our product offering and support platforms
to harness the accelerated transition. For example,
we launched a dedicated customer portal for our
distributors of Aperio, driving ease of adoption and
preference of use.
We also focus on growth in the core business
through specification, with many of our core
mechanical, electromechanical and smart residential
products and solutions being selected for major
Strategic priorities
Highlights
projects like the Olympic Park Foreon Project, the
largest residential apartment complex ever built in
South Korea.
During the year, we targeted data centers in
emerging markets and public transportation in China,
among other segments. Additionally, we have entered
into the new energy automobile sector in China to
capitalize on industry trends.
We also established a door closer factory in Vietnam,
strengthening our manufacturing capabilities and
enhancing our strategic footprint in the region.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
• Opening Solutions Asia Pacific
Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Sustainability
• Enhanced Environ
mental Product
Declaration program
with a key focus
on commercial
applications
• Optimized energy mix
and reduced carbon
footprint through
installation of solar
panels at two plants
in China
• Conducted an
extensive project
in South Korea to
ensure many of our
commonly specified
products meet ANSI
and other international
sustainability
standards
Costs
• Delivered value
analysis and value
engineering (VA/VE)
savings via product
design and redesign,
material substitu
tion and utilization
improvements, pack
aging optimization
and carbon emission
reduction initiatives
• Continued our foot
print consolidation
process with office
consolidation projects
executed cross-
divisionally
• Realized efficiency
gains through material
efficiency strategies,
including material cost
reduction in China
by means of strategic
category sourcing
Market activities
• Restructured the
sales and marketing
organization as part
of the Fenestration
business integration
to maximize the sales
opportunities availa
ble in the consolidated
product ranges
• Enhanced brand
visibility and Yale sales
through interactive
kiosks, live demos
in high-traffic malls,
engaging retail staff,
influencer-driven
social media cam
paigns, and exclusive
in-mall promotions for
the Yale Home app
• Implemented strong
pricing controls,
including onboarding
a new pricing tool in
the Pacific region
Innovation
During the year, we
continued investing in
digital and electrome
chanical solutions to
drive the transition to
electromechancial.
We launched 126 new
products, for example:
• The TwinX special
keying system,
which re-established
key control on our
heritage Lockwood
Twin keying system
via application of the
Group FP2 patent
• New smart gate lock
with dual fingerprint
sensor module
• The smart-enabled
Aeron awning window
actuator in Australia,
that simplifies instal
lation and gives access
to window control
via a mobile app or a
panel on the wall
40
ASSA ABLOY | ANNUAL REPORT 2024
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Global Technologies | Divisions overview
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
• Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Global Technologies
Busy year for acquisitions
Financial development
Global Technologies had a weak first half of the year, driven by high
comparable sales figures due to a backlog catchup in Physical Access
Control. While Global Technologies had good growth in the second half
of the year, the organic sales declined by 2% for the full year. Despite
lower sales, the operating margin increased to 17.5% (17.3%), due to a
positive mix in the second half of the year and improvement in Global
Solutions. Cash flow was strong with a conversion rate of 109% due to
improved earnings and improvements in working capital. As a result of
our continued investments in R&D, new products introduced over the
past three years accounted for 31% of sales.
Acquisitions
Nine acquisitions were completed in 2024. We acquired Cemoel, a
Spanish system integrator specializing in security solutions for critical
infrastructure; Kadex, a Dutch designer and manufacturer of electronics;
Axxess Industries, an innovator of electronics and smart technologies for
hotel and residential environments; Messerschmitt Systems, a German
developer and manufacturer of access control hardware and software
solutions for hospitality; US-based Nomadix and UK-based Global Reach,
providers of Wi-Fi access and engagement platform solutions for the
hospitality and commercial industry; Vizzia Technologies, a provider of
hardware-agnostic, full-service real-time location systems platforms for
healthcare applications; Sewio, a provider of Ultra-Wideband real-time
location systems platforms for asset management, intralogistics, and
overall equipment effectiveness; IXLA, an Italian manufacturer of
advanced laser and color personalization systems for cards and pass
ports; and 9Solutions, a Finnish provider of integrated AI-powered real
time locating healthcare solutions.
• The division comprises HID (about 65%) and
Global Solutions (about 35%).
• HID is organized into six business areas, with
the largest being Physical Access Control
Solutions. HID has leading market positions in
trusted identity solutions providing secure and
convenient access to physical and digital places
and connecting things that can be accurately
identified, verified and tracked digitally.
• Global Solutions comprises seven business
areas globally, with the largest being Hospitality.
Global Solutions has a leading market position
in the Hospitality, Marine, Senior Care,
Construction, Key and Asset Management,
Critical Infrastructure, and Self-Storage
segments.
• Global Technologies has about 8,700
employees and a presence on all continents.
n Commercial/
Institutional, 100%
n Residential, 0%
Overview Global Technologies
Proportion of commercial/institutional vs residential
We have worked diligently to enable and drive the
adoption of mobile credentials, especially within
access control.
VingCard has introduced Google
Wallet compatibility for mobile
hotel room keys.
Sales, SEK M
Operating income1, SEK M
10,000
15,000
20,000
25,000
24
23
22
21
20
Sales
2,000
3,000
4,000
5,000
Operating income1
1 Excluding items affecting comparability.
41
ASSA ABLOY | ANNUAL REPORT 2024
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Global Technologies | Divisions overview
Comments by business unit heads
What was your main focus in 2024?
– The year brought macroeconomic headwinds with market uncer
tainty, but long-term underlying industry drivers remain robust. Our
focus for 2024 was on key growth initiatives from both a commercial
and product perspective. On the commercial side, we have worked
diligently to enable and drive the adoption of mobile credentials,
especially within access control. Parallel to this, building up our sales
capability remains a priority. For example, we have strengthened sever
al sales teams with a dedicated, market-specific focus. We have also
launched a high-quality facial recognition offering including a camera,
module, and software that we are now scaling for additional use cases.
Operationally, cost efficiency initiatives have been deployed during the
year. Focusing on cost improvements and automation has enhanced
scalability in capabilities, allowing us to expand geographically and
integrate acquisitions seamlessly. This strategic approach ensures
efficient operations and supports sustainable growth.
What are your key priorities to accelerate Global Technologies’
profitable growth?
– One key priority is to continue to increase the share of recurring
revenue and subscription-based business models. By introducing new
and innovative solutions tailored to meet the evolving needs of our
customers, we can enhance our market position, increase customer
satisfaction, and increase our addressable market. We also aim to grow
across a few key market areas, including access control, extended
access readers, RFID components, biometrics, real-time location ser
vices, and public key infrastructure. Additionally, to complement our
organic growth, we continue to remain focused on M&A to acquire
capabilities, expand the portfolio, and extend our reach.
Which areas do you focus your product development efforts on?
– Our efforts are concentrated on several key areas to enhance user
experience and security. We focus on mobile access, particularly inte
grating our hotel keycards with mobile wallets, to provide seamless
and secure access. Across businesses, we are leveraging a common
credential services backbone for our mobile credential ecosystem
across access control and non-access control use cases. Additionally,
we have focused on developing and scaling our embedded platform
for next generation readers and IoT devices.
Björn Lidefelt
Executive Vice
President and
Head of Global
Technologies
business unit HID
Global
Global Technologies continues to invest in acquisitions
that strategically strengthen our product portfolio,
technologies and expertise, and we completed nine
acquisitions during the year.
We expanded our product offering by launching
close to 80 new competitive products and solutions
during the year. For example, the integration of our
VingCard hotel key cards into Google Wallet show
cases how mobile access is revolutionizing a seamless
guest experience. We have also developed solutions
with recurring revenue through services and subscrip
tions. HID’s recurring revenue continues to grow at a
double-digit pace. Over the past four years, Identity
Strategic priorities
Highlights
and Access Management Solutions, the key software-
oriented business for HID, has undergone a transforma
tion to subscription-based sales. Our focus on mobile
access has also moved towards subscription-based sales
with mobile credentials and value-added services.
Another priority of the growth strategy is to expand
geographically, including in emerging markets. We are
investing in emerging market sales and product initia
tives across, for example, access control, extended access
and personalization. To gain efficiency in operations and
serve our customers as locally as possible, we are moving
our production footprint closer to customers.
Stephanie Ordan
Executive Vice
President and
Head of Global
Technologies
business unit
Global Solutions
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
• Global Technologies
Entrance Systems
Report of the Board of Directors
Financial statements
Sustainability
• At HID’s largest factory
in Malaysia, solar
panels were installed
during the year,
generating 12% on-site
renewable energy
• ASSA ABLOY’s KEYper
created sturdy steel
racking for wall boards
and cabinet door
shipments, reducing
packaging, pallet use
and freight space
needed
• HID initiated carbon
factor studies across
strategic product lines
to identify improve
ment opportunities
and assess Scope 3
emissions
• Launched paper-based
physical access card
for visitor manage
ment, enhancing
eco-friendly practices
Costs
• Expanded product
cost savings across
HID’s portfolio, with
key initiatives includ
ing synergy realization
with newly acquired
Evolis and increased
use of value analysis
and value engineering
• Continued leverage of
common technology
assets to improve R&D
productivity by short
ening time to market,
boosting performance,
and reducing costs
• Reviewed supplier
contracts, rental
agreements, energy,
freight and other
third-party costs
Market activities
• Accelerated the sales
footprint of HID’s facial
biometrics offering
through a vertical
sales focus
• Expanded marketing
focus, including
vertical-specific capa
bilities and industry
partner ecosystem
development
• Attended multiple
trade shows
such as ISC West,
Seatrader and
HITEC to strengthen
customer relationships
Innovation
During the year, we
continued to invest
in mobile credential
applications. We also
further developed our
access control portfolio,
including expansion of
the reader range.
We launched 78 new
products, for example:
• The first-ever hotel
mobile access card in
Google Wallet, provid
ing a flexible mobile
key solution that is
app free
• Mobile credentials
in Apple Wallet and
Google Wallet for
access control and
extended access use,
such as for elevators,
turnstiles, and electric
vehicle charging
• The next-generation
Mercury MP controller
42
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
• Entrance Systems
Report of the Board of Directors
Financial statements
Entrance Systems | Divisions overview
Entrance Systems
Record-high margin
Financial development
Entrance Systems reported an organic sales decline of 1%, but with
strong growth in the Pedestrian and Perimeter Security business
segments, that was offset by sales decline in the Industrial and
Residential business segments. The Industrial business segment
was negatively impacted by weaker demand for loading docks and
the continued weak US residential market impacted sales for the
Residential business segment. The operating margin continued to
improve to 17.2% (16.7%), primarily driven by solid service growth
and very strong operational leverage. Cash flow was strong with a
conversion rate of 118%. The share of new products introduced over
the past three years was 17% of sales.
Acquisitions
Ten acquisitions were completed in 2024. We acquired Integrated
Warehouse Solutions, a US manufacturer of loading dock equipment;
Industrial Door Company, a large independent full-service dock and
door dealer-distributor; Spaltabdichtung, a German producer of patent
protected seals primarily for overhead sectional doors, docking levers,
and pedestrian doors; G-MAC, Elite Entrances, and Modern Entrance
Systems, three independent automatic door dealer-distributors in the
US; SKIDATA, an international leading provider of access management
solutions based in Austria; Beyron Door, a Swedish manufacturer of
industrial doors; Lawrence Doors, a US manufacturer of coiling steel
doors, grilles, and counter shutters; and Door-Team, a Finnish full-
service company within doors, gates, fences, and service.
We also sold PACA, an elevator maintenance business in France.
• Entrance Systems manufactures and sells
entrance automation products, services, and
perimeter security.
• Divisional headquarters in Switzerland.
• Entrance Systems is a global organization with
four business segments: Pedestrian, Industrial,
Residential and Perimeter Security. Industrial is
the largest business segment.
• The route to market is both direct and indirect,
with ASSA ABLOY as the main brand in the
direct channel and a number of additional
brands in the indirect channel.
• Entrance Systems has about 17,000 employees.
n Commercial/
Institutional, 80%
n Residential, 20%
Overview Entrance Systems
Proportion of commercial/institutional vs residential
Service continues to be one of Entrance Systems'
fastest growing areas.
ecoLOGIC, an AI-powered smart
system that optimizes door behavior
to save energy and reduce costs.
Sales, SEK M
Operating income1, SEK M
20,000
30,000
40,000
50,000
24
23
22
21
20
Sales
3,000
5,000
7,000
9,000
Operating income1
1 Excluding items affecting comparability.
43
ASSA ABLOY | ANNUAL REPORT 2024
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Entrance Systems | Divisions overview
Comments by Divisional Head
What was your main focus in 2024?
– We focused on service growth by enhancing our offerings to ensure
exceptional delivery at every touchpoint. Through our @yourservice
program, we have continued to improve staff retention and improve
technical skills, ensuring an excellent service experience for our
customers. We also concentrated on maximizing our market presence
through a multi-channel, multi-brand approach. This strategy empha
sizes the growth of our indirect channel and sales efforts in emerging
markets like India and Brazil, while expanding our geographical
presence in North America. Additionally, we focused on expanding in
key sectors such as security entrance control, healthcare, and airports,
which offer significant growth opportunities and align with our vision
for future growth.
What are your key priorities to accelerate
Entrance Systems’ profitable growth?
– We are expanding our market presence and upgrading our service
offerings. We are introducing solution platforms connected to our
offerings and intelligent technology to meet market needs. Addi
tionally, we are developing sustainable products and solutions that
minimize environmental impact and promote energy efficiency for
our customers. Operationally, we are improving our manufacturing
footprint and executing cost-saving initiatives by scaling operations
and relocating products to match order trends. Strategic acquisitions,
such as SKIDATA with parking, sports and entertainment solutions,
Integrated Warehouse Solutions, and several distribution businesses,
will also strengthen our market position and broaden our capabilities.
Connected doors are a focus area for you within R&D.
What opportunities do they offer?
– Connected doors are equipped with intelligent technology that
allows real-time monitoring and data collection, improving security
and operational efficiency for our customers’ businesses. The adoption
of connected doors is progressing well, with increasing customer
interest across various sectors. Connected doors provide valuable
insights into usage patterns and maintenance needs, enabling us to
offer proactive service solutions and reduce downtime. They open
new revenue streams through service contracts and upgrades, ensur
ing continuous engagement with our customers. Understanding the
behavior and performance of their doors is crucial for our customers.
It helps them optimize their operations to run smoothly, plan mainte
nance more effectively, and make sure their doors last. This approach
aligns with our strategy to drive service growth and ensure
exceptional value in every customer interaction.
Massimo Grassi
Executive Vice
President and
Head of Entrance
Systems division
Increasing our service penetration continues to be a
key strategic priority. During the year, we enhanced
our digital services to enable remote operation,
monitoring, and control of doors, and improved our
upgrade packages to modernize doors with the latest
technology. We continued to acquire pedestrian door
distributors in North America to strengthen our
service offering. Service continues to be one of
Entrance Systems’ fastest-growing areas.
We have also invested further in our e-business
and digital transformation. In 2024, we introduced
customer-centric platforms such as ecoLOGIC, which
integrates sustainability and utilizes intelligent sensor
Strategic priorities
Highlights
technology to meet market needs. The ecoLOGIC
solution is one technological advancement that enables
us to generate subscription-based recurring revenue
and build long-lasting relationships with our customers.
During the year, we strengthened our market
position and expanded capabilities through strategic
acquisitions, including SKIDATA. This acquisition allows
us to offer a full range of visitor management solutions
and provide opportunities for synergy realization. It
aligns with our strategy of growing our business in
mature markets by integrating complementary
products and solutions to our core and growing
into adjacencies.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Overview highlights
Opening Solutions EMEIA
Opening Solutions Americas
Opening Solutions Asia Pacific
Global Technologies
• Entrance Systems
Report of the Board of Directors
Financial statements
Sustainability
• Continued implement
ing the “Together we are
safe” health and safety
training and engage
ment program for all
employees
• Increased collaboration
with suppliers to
identify and support
activities to reduce
emissions
• Introduced a new
energy-efficient
garage door operator
to meet future power
consumption require
ments
• Advanced the develop
ment of a fully
sustainable high-
performance door
Costs
• Expanded our man
ufacturing footprint
program (MFP) to
enhance operational
efficiency, including
moving airtight door
production from
Germany to the
Netherlands and
merging two manufac
turing sites in France
• Implemented short-
term cost-saving
measures across
regions in response to
reduced volumes
• Achieved cost savings
on both indexed and
non-indexed products
through strategic pro
curement initiatives
Market activities
• Enhanced collabora
tion on specification
processes with other
divisions
• Acceleration of our
growth in emerging
markets through, for
example, the locali
zation of pedestrian
products adjusted to
meet the demand in
these markets
• Grew our prod
uct portfolio and
geographical reach
through strategic
acquisitions such as
Integrated Warehouse
Solutions, SKIDATA,
and North American
distributors
Innovation
During the year, we
revamped the range of
revolving doors with
updated designs and
technological features.
We launched 40 new
products, for example:
• The new ASSA ABLOY
SG Expression speed
gate which also won
several awards, includ
ing the Red Dot Award
for Product Design
• Ditec Air, and
Normstahl and
Crawford Spark garage
door openers, which
seamlessly integrate
with the Yale eco
system
• Digital tools to
enhance customer
experience, including
the IDD Part app, Ditec
Gate Connect, and the
Amarr Quality app
download
a printable
pdf here
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
• Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
44
ASSA ABLOY | ANNUAL REPORT 2024
Report of the
Board of Directors
45
ASSA ABLOY | ANNUAL REPORT 2024
download
a printable
pdf here
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
• Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Report of the Board of Directors
Report of the Board of Directors
Significant events
Sales and income
Organic sales were stable in North America and
Europe, affected by weaker demand for the residential
market in general. Organic growth was strong for
Latin America and Africa, while it was negative for Asia
and Oceania.
Sales increased by 7 percent for the full year 2024
and amounted to SEK 150,162 M (140,716). Organic
growth was –1 percent (3) and net acquired and
divested growth was 8 percent (8). The exchange rate
effect on sales was 0 percent (5).
Operating income (EBIT) increased by 11 percent
to SEK 24,275 M (21,785), equivalent to an operating
margin of 16.2 percent (15.5). The increase in income
was mainly attributable to strong growth in fixed
currency, good leverage from sales price in relation to
material costs, and continuous efficiency enhance
ments and savings.
Net financial items were SEK –3,382 M (-2,531),
largely owing to higher interest expenses during the
year. Income before tax was SEK 20,893 M (19,254),
an increase of 9 percent. The effective tax rate
amounted to 25.2 (29.4) percent. The effective tax
rate for the comparative period was strongly affected
by items affecting comparability.
Earnings per share after full dilution increased by 15
percent to SEK 14.08 (12.27). Earnings per share after
full dilution, excluding items affecting comparability,
increased 4 percent to SEK 14.09 (13.54).
Operating cash flow for the year remained very
strong and amounted to SEK 23,052 M (25,232),
corresponding to cash conversion of 1.10 (1.28).
Items affecting comparability
Items affecting comparability for 2024 and 2023 are
presented below:
2024: Divestment effects. Emtek and the Smart Resi
dential business in the US and Canada were divested
in 2023. Adjusted purchase price and exit costs in
2024, related to the divestment, amounted to a cost
of SEK 21 M. The corresponding cost after income tax
amounted to SEK 15 M.
2023: Divestment effects. Emtek and the Smart Resi
dential business in the US and Canada were divested
in 2023. The operating income from the divestment,
including exit costs, amounted to SEK 3,588 M. The
corresponding income after income tax amounted to
SEK 2,066 M.
2023: Impairment of intangible assets. Impairment of
goodwill and other intangible assets in 2023 amount
ed to SEK 2,271 M, mainly attributable to Citizen ID in
the Global Technologies division. The corresponding
cost after tax was SEK 2,129 M.
2023: Restructuring costs. A new restructuring
program was launched in the first quarter of 2023.
Operating expenses amounted to SEK 1,250 M. The
corresponding cost after tax was SEK 997 M.
2023: Inventory revaluations. Inventory acquired
for HHI was revalued at fair value as a result of the
acquisition analysis. The non-recurring inventory
revaluation amounted to SEK 466 M before tax and
was expensed in 2023. The corresponding cost after
tax amounted to SEK 350 M.
Restructuring
The latest restructuring program was launched in
2023. Plants and offices are expected to be closed
over a two-year period in the program. The operat
ing expenses of the program are expected to be SEK
1,250 M and were fully expensed 2023. The expected
payback period including investments is around two
years.
All ongoing restructuring programs progressed
well in 2024 with very good savings effects. Around
900 employees left the Group during the year in con
junction with changes in the production and office
organization. 12 plant closures and a number of office
closures were implemented during the year, along
with a number of other activities, including conver
sion from production to final assembly in production
units.
In recent years, the Group has increasingly concen
trated production to its own plants in Asia, Central
Europe and Eastern Europe.
Payments for all restructuring programs totaled
SEK 748 M (613) for the year. At year-end 2024, the
remaining provisions for restructuring measures
amounted to SEK 39 M (767).
Organization
No material operations were transferred between
divisions during the year. Any transfers of operations
are recognized from the time of the transfer as inter
nal acquisitions/divestments between the divisions
without any retroactive financial translation.
Acquisitions
In January 2024, Integrated Warehouse Solutions,
a US manufacturer of loading dock equipment, was
acquired. The company is headquartered in Burleson,
US. Sales in 2023 totaled about SEK 1,850 M.
In April 2024, Nomadix and Global Reach, leading
providers of Wi-Fi access and engagement platform
solutions for the hospitality and commercial real
estate industry, were acquired in the US and UK. The
companies offer a comprehensive tech platform of
hardware, software and analytics tools to securely
connect and engage with customers and devices
via Wi-Fi networks. The respective headquarters are
located in Los Angeles, US, and London, UK. Sales in
2023 totaled about SEK 300 M.
In April 2024, Messerschmitt Systems, a well-estab
lished German developer and manufacturer of access
control hardware and software solutions for the hos
pitality market including products for access control
and in-room control, was acquired. The company is
headquartered in Schwaig, Germany. Sales in 2023
totaled about SEK 130 M.
In May 2024, Amecor, a South African manufacturer
of security communication equipment in the South
African security market, was acquired. The company is
headquartered in Johannesburg, South Africa. Sales in
2023 totaled about SEK 150 M.
In June 2024, Wesko Locks, a Canadian manufactur
er and supplier of electronic and specialty locks, was
acquired. The company is headquartered in Toronto,
Canada. Sales in 2023 totaled about SEK 170 M.
In September 2024, Skidata, an international lead
ing provider of access management solutions, was
acquired. The company is headquartered in Salzburg,
Austria. Sales in 2023 totaled about SEK 3,500 M.
In September 2024, Level Lock, a US technology
solutions business, was acquired. The company is
headquartered in Redwood City, US. Sales in 2023
totaled about SEK 170 M.
In November 2024, Lawrence Doors, a US man
ufacturer of coiling steel doors, grilles and counter
shutters, was acquired. The company is headquar
tered in Baldwin Park, US. Sales in 2023 totaled about
SEK 320 M.
In November 2024, IXLA, an Italian manufacturer
of advanced laser and color personalization systems
for cards and passports, was acquired. The company
The Annual Report of ASSA ABLOY AB (publ.), corporate identity number
556059-3575, contains the consolidated financial statements for the fiscal
year 1 January through 31 December 2024, including the nature and focus
of the business. ASSA ABLOY is the global leader in access solutions, dedicated
to satisfying end-user needs for security, safety and convenience.
46
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
• Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Report of the Board of Directors
is headquartered in Romano Canavese, Italy. Sales in
2023 totaled about SEK 150 M.
In December 2024, Premier Steel Doors and
Frames, a US manufacturer of hollow metal doors and
frames, metal building door systems, and aluminium
windows, was acquired. The company is headquar
tered in Monroe, US. Sales in 2023 totaled about SEK
420 M.
In December 2024, 9Solutions, a Finnish provider
of highly integrated AI-powered real time locating
healthcare solutions for critical communication
and collaboration, with a focus on senior care, was
acquired. The company is headquartered in Oulu,
Finland. Sales in 2023 totaled about SEK 110 M.
In December 2024, Roger, a Polish manufacturer
of on-premise electronic access control systems
and related hardware, was acquired. The company is
headquartered in Gosciszewo, Poland. Sales in 2023
totaled about SEK 110 M.
In December 2024, Norshield Security Products,
a US manufacturer of high-security openings and
enclosures, was acquired. The company is headquar
tered in Montgomery, US. Sales in 2023 totaled about
SEK 170 M.
The total purchase price of the 26 companies
acquired during the year, including adjustments for
acquisitions from previous years, was SEK 12,957 M.
The preliminary acquisition analyses indicate that
goodwill and other intangible assets with an indefi
nite useful life amounted to SEK 9,820 M. Estimated
deferred considerations for acquisitions for the year
totaled SEK 678 M.
Additional acquisitions of non-controlling interests
totaled SEK 33 M (38).
Divestments
In October 2024, ASSA ABLOY signed an agreement
to sell the Citizen ID business to TOPPAN. Citizen ID
manufactures, designs, and implements physical and
mobile identity solutions for government to citizen
programs around the globe. Citizen ID employs
around 450 people with manufacturing facilities in
Ireland, Malta and the US. Sales in 2024 totaled about
SEK 1,400 M.
The divestment requires the fulfillment of custom
ary conditions, regulatory approvals, and employee
consultations. The transaction will have a slightly
positive effect on ASSA ABLOY’s operating margin
going forward.
In February 2024, ASSA ABLOY divested its elevator
maintenance business in France, PACA ascenseur, to
KONE. Sales in 2023 totaled about SEK 300 M. The
capital gain before tax totaled SEK 45 M.
Research and development
ASSA ABLOY’s expenditure on research and develop
ment during the year totaled SEK 6,101 M (5,712),
equivalent to 4.1 percent (4.1) of sales.
The pace of innovation remained high during
the year thanks to the continued commitment to
invest in research and development. The number of
research and development posts increased during the
year as a result of both recruitment and acquisitions.
The number of posts was around 4,100 (3,500) at
year-end.
Sustainable development
A number of ASSA ABLOY units outside Sweden carry
on licensable activities and hold equivalent licenses
under local legislation. ASSA ABLOY’s units worldwide
are working systematically and purposefully to reduce
their environmental impact.
ASSA ABLOY has chosen to prepare the sustain
ability statement as an integrated part of the annual
report from 2024.
For more detailed information on the year’s sustain
ability activities, see the sustainability statement in
the Report of the Board of Directors.
Internal control and financial reporting
ASSA ABLOY’s internal audit and internal control func
tions have dedicated internal auditors employed in
all divisions. The internal audit function continued its
work to enhance financial reporting, internal control
in relation to the financial reporting and compliance
in the company in general. The number of audits
remained high during the year.
Transactions with related parties
There were no transactions between ASSA ABLOY and
related parties that materially affected the company’s
financial position and earnings, other than ordinary
transactions in operating activities such as the pay
ment of dividends to shareholders.
Significant events after the financial year-end
ASSA ABLOY divested most of its Citizen ID business
to TOPPAN at the end of January 2025. Divestment of
the remainder of Citizen ID’s business to TOPPAN is
subject to the fulfillment of customary conditions and
regulatory approvals.
Proposed distribution of earnings
The following earnings are at the disposal of the
Annual General Meeting:
Share premium reserve:
SEK 787,314,216
Retained earnings carried
forward:
SEK 8,744,090,215
Net income for the year:
SEK 7,548,053,618
Total:
SEK 17,079,458,049
The Board of Directors proposes that these earnings
be appropriated as follows:
A dividend to the sharehold
ers of SEK 5.90 per share
SEK 6,553,580,371
Be carried forward to the
new financial year
SEK 10,525,877,679
Total:
SEK 17,079,458,0491
The Board of Directors’ proposal for a dividend of
SEK 5.90 (5.40) per share corresponds to an increase
of 9 percent. The dividend is proposed to be paid in
two equal installments, the first with the record date
25 April 2025 and the second with the record date
11 November 2025. If the proposal is adopted by
the Annual General Meeting, the first installment is
estimated to be paid on 30 April 2025 and the second
installment on 14 November 2025.
Outlook
Long-term outlook
The war in Ukraine and the conflict in the Middle East
may have a negative business impact on ASSA ABLOY
in both short and long term, but the direct business
impact is deemed to be limited.
ASSA ABLOY anticipates an increase in demand
for security solutions in the long term. A focus on
customer value and innovations as well as leverage
on the Group’s strong position will accelerate growth
and increase profitability. Organic sales growth is
expected to continue at a good rate. The operating
margin (EBIT) and operating cash flow are expected
to develop well.
1 The dividend and retained earnings to be carried forward to the new financial year are calculated on the number of outstanding shares at 4 February 2025.
No dividend is payable on ASSA ABLOY AB’s holding of treasury shares, the exact number of which is determined on each record date for payment of dividend.
ASSA ABLOY AB’s holding of treasury shares amounted to 1,800,000 Series B shares at 4 February 2025.
47
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Significant risks and risk management | Report of the Board of Directors
Significant risks and risk management
Risk management
Uncertainty about future developments and the
course of events is a natural risk for any business.
Risk-taking in itself provides opportunities for contin
ued economic growth, but the risks may also have a
negative impact on business operations and company
goals. It is therefore essential to have a systematic
and efficient risk assessment process and an effective
risk management program in general. The purpose
of risk management at ASSA ABLOY is not to avoid
risks, but to take a controlled approach to identifying,
managing and minimizing the effects of these risks.
This work is based on an assessment of the probability
of the risks and their potential impact on the Group.
ASSA ABLOY is an international Group with a
wide geographical spread, involving exposure to
various forms of strategic, operational and financial
risks. Strategic risks refer to changes in the business
environment with potentially significant effects on
ASSA ABLOY’s operations and business objectives.
Operational risks comprise risks directly attributable
to business operations, entailing a potential impact
on the Group’s financial position and performance. Fi
nancial risks mainly comprise financing risk, currency
risk, interest rate risk, credit risk, and risks associated
with the Group’s pension obligations.
Organization
ASSA ABLOY’s Board of Directors has overall respon
sibility for risk management within the Group and
determines the Group’s strategic focus based on
recommendations from the Executive Team. In view
of the decentralized structure of ASSA ABLOY, and
to keep risk analysis and risk management as close
as possible to the actual risks, a large proportion of
operational risk management takes place at division
and business unit levels.
Responsibility
ASSA ABLOY’s Board of Directors has overall respon
sibility for the Group’s strategic direction in close
consultation with the Executive Team. Divisions
and business units have overall responsibility for
management of operational risks, in accordance with
ASSA ABLOY’s decentralized approach to organiza
tion, responsibility and authority. In the case of finan
cial risks, allocation of responsibilities and control
of the Group’s financing activities are regulated in a
financial policy adopted by the Board of Directors.
A centralized Treasury function then has the main
responsibility for financial risks within the framework
established in the financial policy, with the exception
of credit risks relating to operational business activi
ties, which are managed locally at company level and
monitored at division level.
Review process
Strategic risks, such as competitors, brand positioning
and so on, are regularly reviewed at ASSA ABLOY AB’s
Board meetings. The Group’s operational risk man
agement is continuously monitored by the Executive
Team through divisional reporting and divisional
Board meetings. Financial operations are centralized
in a Treasury function, which manages most financial
transactions as well as financial risks with a Group-
wide focus. ASSA ABLOY’s Treasury monitors the
Group’s short- and long-term financing, financial cash
management, currency risk and other financial risk
management.
Strategic risks
The risks of this nature encountered by ASSA ABLOY
include various forms of business environment risks
with an impact on the security market in general,
mainly changes in customer behavior, competitors,
brand positioning, reputational risks, geopolitical
risks and country-specific risks. In recent years, it has
also become clear that worldwide health risks posed
by pandemics can significantly impact societies and
global demand around the world.
Geopolitical risks
ASSA ABLOY manufactures and supplies access solu
tions, secure identities and other goods and services
in a large number of countries around the world.
Various geopolitical risks, such as military conflicts
and wars, terrorist threats, trade conflicts etc. can af
fect the global economy and demand for the Group’s
goods and services.
Country-specific risks
ASSA ABLOY has global market penetration, with
sales and production in a large number of countries.
The focus is on North America and Western Europe.
The Group has some exposure to emerging markets,
which may entail a higher risk profile for country-spe
cific risks in the form of inadequate compliance, pol
icy decisions, overall changes in regulations and more.
Customer behavior
Changes in customer behavior in general and the
actions of competitors affect demand for different
products and their profitability. Customers and sup
pliers, including the Group’s relationships with them,
are subject to continuous local review.
Competitors
As regards competitors, risk analyses are carried out
both centrally and locally.
Brand positioning
The Group owns a number of the strongest brands
in the industry, including several global brands that
complement the ASSA ABLOY master brand. Local
product brands are gradually being linked increasing
ly to the master brand.
Reputational risk
Activities to maintain and further strengthen ASSA
ABLOY’s good reputation are constantly ongoing.
These include ensuring compliance with ASSA
ABLOY’s Code of Conduct for employees and the
Code of Conduct for business partners. These codes
express the Group’s values with regard to matters
such as business ethics, human rights and working
conditions, as well as the environment, health and
safety.
Operational risks
Operational risks comprise risks directly attributable
to business operations, with a potential impact on
the Group’s financial position and performance. They
include legal and environmental risks, tax risks, ac
quisition of new businesses, restructuring measures,
price fluctuations and availability of raw materials,
and credit losses. This category also includes risks
relating to compliance with laws and regulations,
information technology (IT), internal control and
financial reporting. See page 49 for a more detailed
description of the management of these risks.
Financial risks
The Group’s financial risks mainly comprise financing
risk, currency risk, interest rate risk, credit risk, and
risks associated with the Group’s pension obligations.
A large number of financial instruments are used
to manage these risks. Accounting principles, risk
management and risk exposure are described in more
detail in Notes 1 and 36, as well as Note 25, Post-em
ployment employee benefits.
Financing risk
Financing risk refers to the risk that financing the
Group’s capital requirements and refinancing
outstanding loans become more difficult or more
expensive. It can be reduced by maintaining an even
maturity profile for borrowing and a solid credit
rating. The risk is further reduced by substantial unuti
lized confirmed credit facilities.
Currency risk
Since ASSA ABLOY sells its products in countries
worldwide and has companies in a large number
of countries, the Group is exposed to the effects of
exchange rate fluctuations. These fluctuations affect
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
• Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
48
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Significant risks and risk management | Report of the Board of Directors
Group earnings when the income statements of
foreign subsidiaries are translated to Swedish kronor
(translation exposure), and when products are
exported and sold in countries outside the country
of production (transaction exposure). Translation
exposure is primarily related to earnings in USD and
EUR. This type of exposure is not hedged. Currency
risk in the form of transaction exposure, i.e. the value
of exports and imports, respectively, of goods, is
expected to increase over time due to rationaliza
tion of production and sourcing. In accordance with
financial policy, the Group only hedged a very limited
part of current currency flows in 2024. As a result,
currency fluctuations had a direct impact on business
operations.
Exchange rate fluctuations also affect the Group’s
debt-equity ratio and equity. The difference between
the assets and liabilities of foreign subsidiaries in the
respective foreign currency is affected by exchange
rate fluctuations and causes a translation difference,
which affects the Group’s comprehensive income. A
general weakening of the Swedish krona leads to an
increase in net debt, but at the same time increases
the Group’s equity. At year-end, the largest foreign
net assets were denominated in USD and EUR.
Interest rate risk
With respect to interest rate risks, interest rate chang
es have a direct impact on ASSA ABLOY’s net interest
expense. The net interest expense is also impacted by
the size of the Group’s net debt and its currency com
position. Net debt was SEK 70,253 M (64,109) at year-
end 2024. Operating cash flow remained very strong,
positively affecting net debt, but the level of debt was
also affected by continued high acquisition activity
and currency effects. Debt was mainly denominated
in USD, EUR and SEK. Group Treasury analyzes the
Group’s interest rate exposure and calculates the
impact on income of interest rate changes on a rolling
12-month basis. In addition to raising variable-rate
and fixed-rate loans, various interest rate swaps are
used to adjust interest rate sensitivity.
Credit risk
Credit risk arises in ordinary business activities and
as a result of financial transactions. Trade receivables
are spread across a large number of customers, which
reduces credit risk. Credit risks relating to operational
business activities are managed locally at company
level and monitored at division level.
Financial risk management exposes ASSA ABLOY to
certain counterparty risks. Such exposure may arise,
for example, as a result of the placement of surplus
cash, borrowings and derivative financial instruments.
Counterparty limits are set for each financial counter
party and are continuously monitored.
Pension obligations
At year-end 2024, ASSA ABLOY had obligations for
pensions and other post-employment benefits of
SEK 9,800 M (9,177). The Group manages pension
ASSA ABLOY’s risks
Strategic risks
Changes in the business environment
with potentially significant effects on
operations and business objectives.
• Geopolitical risks
• Country-specific risks
• Customer behavior
• Competitors
• Brand positioning
• Reputational risk
• Pandemics and other global health risks
Operational risks
Risks directly attributable to business oper
ations with a potential impact on financial
position and performance.
• Legal risks and environmental risks
• Tax risks
• Acquisition and divestment of companies
• Restructuring measures
• Price fluctuations and availability of raw
materials
• Credit losses
• Insurance risks
• Risks relating to internal control
• Risks relating to IT
Financial risks
Financial risks with a potential impact on
financial position and performance.
• Financing risk
• Currency risk
• Interest rate risk
• Credit risk
• Risks associated with pension obligations
assets valued at SEK 8,322 M (7,742). Provisions in
the balance sheet for defined benefit and defined
contribution plans and post-employment medical
benefits totaled SEK 1,478 M (1,435). Changes in the
value of assets and liabilities from year to year are
due partly to the development of equity and interest
rate markets and partly to the actuarial assumptions
made. Significant remeasurement of obligations and
plan assets is recognized on a current basis in the
balance sheet and in other comprehensive income.
The assumptions made include discount rates and
anticipated inflation and pension increases.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
• Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
49
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Significant risks and risk management | Report of the Board of Directors
ASSA ABLOY’s operational risks and risk management
Operational risks
Risk management
Comments
Legal risks
The Group continuously monitors anticipated and implemented changes in legislation in the countries
in which it operates. Ongoing and potential disputes are regularly reported to the Group’s central legal
function.
Policies and guidelines on compliance with applicable competition, anti-corruption, export control/sanc
tion and data protection legislation have been implemented.
At year-end 2024, there are considered to be no ongoing legal disputes with a material impact on the
Group’s earnings.
Environmental risks
Ongoing and potential environmental risks are regularly monitored in the operations. External expertise is
brought in for environmental assessments when necessary.
Prioritized environmental activities and other information on sustainable development are reported in
the sustainability statement in the Report of the Board of Directors.
Tax risks
Ongoing and potential tax cases are regularly reported to the Group’s central tax function.
At year-end 2024, there are considered to be no ongoing tax cases with a significant impact on the
Group’s earnings.
Acquisition and divestment of companies
Acquisitions and divestments are carried out by a number of people with considerable experience in the
field and with the support of, for example, legal and financial consultants. Acquisitions are carried out
according to a uniform and predefined Group-wide process. This consists of four documented phases:
strategy, evaluation, implementation and integration.
During the year, acquisition activity remained high at ASSA ABLOY, with 26 (24) acquisitions of businesses.
Two divestments were also agreed. The Group’s acquisitions and divestments in 2024 are reported in
greater detail in the Report of the Board of Directors and, where acquisitions are concerned, in Note 34,
Business combinations.
Restructuring measures
The restructuring programs mainly entail some production units being
closed or changing their focus to mainly performing final assembly,
combined with office closures.
The restructuring programs are carried on as a series of projects with stipulated activities and schedules.
The various projects in the respective restructuring program are systematically monitored on a regular
basis.
The latest restructuring program was launched in 2023. A number of plants and offices are expected to be
closed over a two-year period. The level of activity in all ongoing programs continued to be high during
the year. The scope, costs and savings of the programs are presented in more detail in the Report of the
Board of Directors.
Price fluctuations and availability of raw materials
Raw materials are purchased and handled primarily at division and business unit level. Regional commit
tees coordinate these activities with the help of senior coordinators for selected material components.
The market prices of raw material components, for example steel, that are important to the Group varied
during the year. For further information about procurement of materials, see Note 7, Expenses by nature
and function.
Credit losses
Trade receivables are spread across a large number of customers in many markets. However, customer
concentration increased somewhat within the Group as a result of the acquisition of HHI in 2023.
Commercial credit risks are managed locally at company level and monitored at division level.
Receivables from each customer are relatively small in relation to total trade receivables. The risk of
significant credit losses for the Group is deemed to be limited.
Insurance risks
A Group-wide insurance program is in place, mainly relating to property, business interruption and
liability risks. This program covers all business units. The Group’s exposure to the risk areas listed above is
regulated by means of its own captive insurance company.
The Group’s insurance cover is considered to be generally adequate, providing a reasonable balance
between assessed risk exposure and insurance costs.
Risks relating to internal control
The organization is considered to be relatively transparent, with a clear allocation of responsibilities.
A well-established controller organization at both division and Group level monitors financial reporting
quality.
To establish a structured process for implementing and maintaining reliable financial reporting and inter
nal controls over critical business processes and to minimize risks, ASSA ABLOY previously implemented
an internal control framework. An annual self-assessment is carried out at selected companies to ensure
compliance. The internal audit function plays an important role in reviewing companies’ processes and
managing risks. It conducts risk-based audits to ensure compliance with the internal control framework.
ASSA ABLOY’s internal audit and internal control functions have dedicated internal auditors employed in
all divisions. The number of audits remained high during the year. Internal control and other related issues
are reported in more detail in the Report of the Board of Directors, section on Corporate governance.
Further information on risk management relating to financial reporting can be found in the Report of the
Board of Directors, section on Corporate governance. See also the section Key estimates and assessments
for accounting purposes in Note 1.
Risks relating to information technology (IT)
Preventive measures are in place to protect business-critical information from unauthorized individuals
and organizations.
IT security is a high priority area at ASSA ABLOY through constant efforts to maintain and strengthen the
level of security for the Group’s business information.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
• Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
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Corporate governance | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
• Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Corporate governance
ASSA ABLOY AB is a Swedish public limited liabil
ity company with registered office in Stockholm,
Sweden, whose Series B share is listed on Nasdaq
Stockholm.
ASSA ABLOY’s corporate governance is based on
the Swedish Companies Act, the Annual Accounts
Act, the Nasdaq Nordic Main Market Rulebook for
Issuers of Shares, the EU Market Abuse Regulation,
and the Swedish Corporate Governance Code (the
Code), as well as other applicable external laws, rules
and regulations, and internal rules and regulations.
This Corporate Governance Report has been
prepared as part of ASSA ABLOY’s application of the
Code. ASSA ABLOY had no deviations from the Code
in 2024.
The report is examined by ASSA ABLOY’s auditor.
ASSA ABLOY’s objective is that its operations should
generate good long-term returns for its shareholders
and other stakeholders. An effective scheme of corpo
rate governance for ASSA ABLOY can be summarized
in a number of interacting components, which are
described to the right.
1
Shareholders
At year-end 2024, ASSA ABLOY had 59,699
shareholders. The principal shareholders are Invest
ment AB Latour (9.5 percent of the share capital and
29.4 percent of the votes) and Melker Schörling AB
(3.1 percent of the share capital and 10.9 percent of
the votes). Foreign shareholders accounted for 64.1
percent of the share capital and 43.7 percent of the
votes. The ten largest shareholders accounted for
35.1 percent of the share capital and 55.7 percent of
the votes. For further information on shareholders,
see page 159.
ASSA ABLOY’s Articles of Association contain a
pre-emption clause for owners of Series A shares re
garding shares of Series A. A shareholders’ agreement
exists between the Douglas and Schörling families
and their related companies that includes an agree
ment on right of first refusal if any party disposes of
Corporate governance structure
1
Shareholders
2
General Meeting
4
Board of Directors
3
Nomination Committee
5
Remuneration Committee
9
Auditor
6
Audit Committee
7
CEO
7
Executive Team
8
Divisions
Important external rules and regulations
• Swedish Companies Act
• Annual Accounts Act
• Nasdaq Nordic Main Market Rulebook for Issuers
of Shares
• EU Market Abuse Regulation
• Swedish Corporate Governance Code
(www.bolagsstyrning.se)
Important internal rules and regulations
• Articles of Association
• Board of Directors’ rules of procedure
• Financial policy
• Accounting manual
• Communication policy
• Insider policy
• Internal control framework
• Code of Conduct and anti-corruption policy
51
ASSA ABLOY | ANNUAL REPORT 2024
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a printable
pdf here
Corporate governance | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
• Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Series A shares. The Board of Directors of ASSA ABLOY
is not aware of any other shareholders’ agreements
or other agreements between shareholders in
ASSA ABLOY.
Share capital and voting rights
At year-end 2024, ASSA ABLOY’s share capital
amounted to SEK 370,858,778, distributed among a
total of 1,112,576,334 shares, comprising 57,525,969
Series A shares and 1,055,050,365 Series B shares. All
shares have a par value of around SEK 0.33 and give
shareholders equal rights to the company’s assets
and earnings. The total number of votes amounted to
1,630,310,055. Each Series A share carries ten votes
and each Series B share one vote.
Repurchase of own shares
Since 2010, the Board of Directors has requested and
received a mandate from the Annual General Meeting
to repurchase and transfer ASSA ABLOY Series B
shares. The aim has been, among other things, to
secure the company’s undertakings in connection
with its long-term incentive programs (LTI). The 2024
Annual General Meeting authorized the Board of
Directors to acquire, during the period until the next
Annual General Meeting, a maximum number
of Series B shares so that after each repurchase
ASSA ABLOY holds a maximum 10 percent of the total
number of shares in the company.
ASSA ABLOY holds a total of 1,800,000 Series B
shares after repurchase. The cost of these shares
amounts to SEK 103 M. The shares account for around
0.2 percent of the share capital and each share has a
par value of around SEK 0.33. No shares were repur
chased in 2024.
Share and dividend policy
ASSA ABLOY’s Series B share is listed on
Nasdaq Stockholm, Large Cap list. At year-end 2024,
ASSA ABLOY’s market capitalization amounted to
SEK 363,590 M, calculated on both Series A and Series
B shares. The Board of Directors’ objective is that, in
the long term, the dividend should be equivalent to
33–50 percent of income after standard tax, but tak
ing into account ASSA ABLOY’s long-term financing
requirements.
2
General Meeting
Shareholders’ rights to decide on the affairs of
ASSA ABLOY are exercised at the General Meeting.
Shareholders who are registered in the share register
on the record date and have duly notified their intent
to attend are entitled to take part in the General
Meeting, either in person or by proxy. Resolutions at
the General Meeting are normally passed by simple
majority. For certain matters, however, the Swedish
Companies Act prescribes that a proposal should be
supported by a higher majority. Individual sharehold
ers who wish to submit a matter for consideration
at the General Meeting can send such request to
ASSA ABLOY’s Board of Directors at a special address
published on the company’s website well before the
Meeting.
The Annual General Meeting should be held within
six months of the end of the company’s financial year.
Matters considered at the Annual General Meeting
include: dividend, adoption of the income statement
and balance sheet; discharge of the members of the
Board of Directors and the CEO from liability; election
of members of the Board of Directors, Chairman of
the Board of Directors and auditor; and fees for the
Board of Directors and auditor. An Extraordinary
General Meeting may be held if the Board of Directors
considers this necessary or if ASSA ABLOY’s auditor or
shareholders holding at least 10 percent of the shares
so request.
2024 Annual General Meeting
At the Annual General Meeting on 24 April 2024,
shareholders representing 60.1 percent of the share
capital and 72.8 percent of the votes participated.
The Annual General Meeting’s resolutions included
the following.
• Dividend of SEK 5.40 per share, paid in two equal
installments.
• Johan Hjertonsson, Carl Douglas, Erik Ekudden,
Sofia Schörling Högberg, Lena Olving, Victoria Van
Camp, Joakim Weidemanis and Susanne Pahlén
Åklundh were re-elected as members of the Board
of Directors.
• Johan Hjertonsson was re-elected as Chairman
of the Board of Directors, and Carl Douglas was
re-elected as Vice Chairman.
• The audit firm Ernst & Young AB was re-elected as
the company’s auditor.
• Remuneration of the Board of Directors.
• Approval of the Board of Directors’ report on
remuneration as per Chapter 8, Section 53 a, of the
Swedish Companies Act (remuneration report).
• Authorization to the Board of Directors regarding
repurchase and transfers of own Series B shares.
• A long-term incentive program for senior execu
tives and other key employees in the Group (LTI
2024).
For more information about the Annual General
Meeting, including the minutes, see ASSA ABLOY’s
website assaabloy.com.
2025 Annual General Meeting
ASSA ABLOY’s next Annual General Meeting will be
held on 23 April 2025 in Stockholm, Sweden. More
information will be available in the notice of the An
nual General Meeting and on ASSA ABLOY’s website
assaabloy.com.
3
Nomination Committee
The 2023 Annual General Meeting adopted the
current instructions for the Nomination Committee,
comprising a procedure for appointing the Nomi
nation Committee, which apply until further notice.
According to the instructions, the Nomination
Committee shall be composed of representatives of
the five largest shareholders in terms of voting rights
registered in the shareholders’ register maintained by
Euroclear Sweden AB as of 31 August the year before
the Annual General Meeting. Where a shareholder
declines to participate in the Nomination Commit
tee, a representative from the largest shareholder in
turn shall be appointed. If a member resigns from the
Nomination Committee before the work is complet
ed and the Nomination Committee finds it suitable, a
substitute shall be appointed. Such a substitute shall
be appointed from the same shareholder or, if that
shareholder no longer is among the largest share
holders in terms of voting rights, from the largest
shareholder next in turn.
The Nomination Committee prior to the 2025
Annual General Meeting comprises Johan Menckel
(Investment AB Latour), Mikael Ekdahl (Melker
Schörling AB), Marianne Nilsson (Swedbank Robur
Fonder), Yvonne Sörberg (Handelsbanken Fonder) and
Carina Silberg (Alecta). Johan Menckel is the Chair
man of the Nomination Committee. The Chairman of
the company’s Board of Directors, Johan Hjertonsson,
is co-opted to the Nomination Committee.
The Nomination Committee has the task of prepar
ing, on behalf of the shareholders, proposals regard
ing the election of Chairman of the General Meeting,
members of the Board of Directors, Chairman of
the Board, Vice Chairman of the Board; auditor; fees
for the board members including division between
the Chairman, Vice Chairman and the other board
members, as well as fees for committee work; fees
to the company’s auditor, and any changes of the
instructions for the Nomination Committee. The
Audit Committee assists the Nomination Commit
tee in work associated with the proposal regarding
appointment of the external auditor.
Prior to the 2025 Annual General Meeting, the
Nomination Committee makes an assessment of
whether the current Board of Directors is appropri
ately composed and fulfills the requirements imposed
on the Board of Directors by the company’s present
situation and future direction. The annual evaluation
of the Board of Directors and its work is part of the
basis for this assessment. Moreover, the Nomination
Committee applies ASSA ABLOY’s diversity policy for
the Board of Directors, which is based on Rule 4.1 of
the Code, when preparing its proposal for election
of members of the Board of Directors. The search for
suitable board members is carried on throughout the
year and proposals for new board members are based
in each individual case on a profile of requirements
established by the Nomination Committee.
Shareholders wishing to submit proposals to the
Nomination Committee can do so by e-mailing:
nominationcommittee@assaabloy.com.
The Nomination Committee’s proposals for the
2025 Annual General Meeting are published, at the
latest, in conjunction with the formal notice of the
Annual General Meeting, which is expected to be
issued around 19 March 2025.
52
ASSA ABLOY | ANNUAL REPORT 2024
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a printable
pdf here
Corporate governance | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
• Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
4
Board of Directors
In accordance with the Swedish Companies
Act, the Board of Directors is responsible for the
organization and administration of the Group and for
ensuring satisfactory control of bookkeeping, asset
management and other financial circumstances. The
Board of Directors decides on the Group’s overall
objectives and strategies, Group policies, acquisitions
and divestments as well as investments of major im
portance. Acquisitions and divestments with a value
(on a debt-free basis) exceeding SEK 200 M are decid
ed by the Board of Directors. The threshold amount
presumes that the matter relates to acquisitions or
divestments in accordance with the strategy agreed
by the Board of Directors. The Board of Directors
approves documents such as the Annual Report and
Interim Reports, proposes a dividend to the Annual
General Meeting, and makes decisions concerning
the Group’s financial structure.
The Board of Directors’ other ongoing duties
include:
• appointing, evaluating and if necessary, dismissing
the CEO,
• approving the CEO’s significant assignments out
side the company,
• identifying how sustainability issues impact risks to,
and business opportunities for, the company,
• establishing appropriate guidelines to govern
the company’s conduct in society with the aim of
ensuring long-term value-creating capability,
• ensuring that appropriate systems are in place for
following up and controlling the company’s opera
tions and the risks for the company associated with
its operations,
• ensuring that there is satisfactory control of the
company’s compliance with laws and other regula
tions relevant to the company’s operations, and its
compliance with internal guidelines, and
• ensuring that external information provided by
the company is transparent, accurate, relevant and
reliable.
Each year, the Board of Directors reviews and adopts
the Board of Directors’ rules of procedure, which is
the document that governs the work of the Board
and the distribution of duties between the Board of
Directors and the CEO. The rules of procedure include
instructions for the CEO, instructions relating to
financial reporting, sustainability reporting and in
ternal control, and instructions to the Remuneration
Committee and the Audit Committee.
Included in the rules of procedure is a description
of the role of Chairman of the Board. In addition
to organizing and leading the work of the Board of
Directors, the Chairman’s duties include maintaining
contact with the CEO to continuously monitor the
Group’s operations and development, consulting
with the CEO on strategic issues, representing the
company in matters concerning the ownership struc
ture, ensuring that the Board receives satisfactory
information and data on which to base decisions and
ensuring that Board decisions are implemented. In
addition, the Chairman should ensure that the work
of the Board of Directors is evaluated annually.
The Board of Directors has at least four ordinary
meetings and one statutory meeting per year. An
ordinary Board meeting is always held in connection
with the company’s publication of its Year-end Report
and Interim Reports. At least once a year the Board
of Directors visits one of the Group’s operations,
combined with a Board meeting. In addition, extraor
dinary Board meetings are held when necessary. All
meetings follow an approved agenda. Prior to each
meeting, a draft agenda, including documentation, is
provided to all members of the Board of Directors.
The Board of Directors has a Remuneration
Committee and an Audit Committee. The purpose of
these Committees is to deepen and streamline the
work of the Board of Directors and to prepare matters
in these areas. The members of the Committees are
appointed annually by the Board of Directors at the
statutory Board meeting.
Board of Directors’ composition
The Board of Directors, including the Chairman and
Vice Chairman of the Board, is elected annually at
the Annual General Meeting for the period until the
end of the next Annual General Meeting and shall,
according to the Articles of Association, comprise
a minimum of six and a maximum of ten members
elected by the Meeting. The Board of Directors also
has two members who are appointed by employee
organizations in accordance with Swedish law. The
employee organizations also appoint two deputies.
The Board of Directors consisted of eight elected
members and two employee representatives in 2024.
No board members are included in the Executive
Team. For a presentation of the Board of Directors, see
pages 54–55.
The diversity policy that ASSA ABLOY applies with
respect to the company’s Board of Directors is based
on Rule 4.1 of the Code. The objective is that the com
position of the Board of Directors, taking into account
the company’s operations, stage of development and
other circumstances, shall be appropriate, charac
terized by versatility and breadth regarding qualifi
cations, experience and background of the elected
members, and strive to achieve gender equality. In
2024 the Nomination Committee has taken the diver
sity policy into account when preparing its proposal
for election of members of the Board of Directors pri
or to the Annual General Meeting. After the election
at the 2024 Annual General Meeting, the composition
of the members of the Board of Directors elected by
the Annual General Meeting is such that 50 percent
are women and 50 percent are men, which is in line
with the Swedish Corporate Governance Board’s
aspiration for each gender to represent a share of at
least 40 percent of the Board of Directors. In addition,
there were in-depth reviews of operations in the Asia
Pacific division’s business unit Opening Solutions
Pacific and North East Asia, the Americas division
and the Global Technologies division’s business unit
Global Solutions during the year, with the partial aim
of expanding the expertise of the Board of Directors
in ASSA ABLOY.
Board of Directors’ work in 2024
The Board of Directors held nine meetings during the
year (of which two were by correspondence). At the
ordinary Board meetings the CEO reported on the
Group’s performance and financial position, including
the outlook for the coming quarters.
Key issues addressed by the Board during the year
include the Group’s strategy and sustainability issues,
including new regulations on sustainability reporting.
The Board also discussed a number of acquisitions,
including Nomadix and Global Reach, Wesko Locks,
Skidata, Level Lock, Lawrence Doors, IXLA, Premier
Steel Doors and Frames, 9Solutions and Norshield
Security Products. The Board also discussed the
divestment of the Citizen ID business to TOPPAN.
During the year, the Board also met with divisions op
erating in Europe in the context of a Board meeting in
France, which also included a visit to one of the Global
Technologies division’s HID business unit’s operations
in France. The Board of Directors’ work is summarized
in the timeline on page 53.
An evaluation of the Board of Directors’ work is
conducted annually in the form of a web-based
survey, which each board member responds to
individually. A summary of the results is presented
to the Board of Directors. Board members who wish
can access the complete results of the evaluation.
The Chairman of the Board of Directors presents the
complete results of the evaluation to the Nomination
Committee.
5
Remuneration Committee
In 2024 the Remuneration Committee
comprised Johan Hjertonsson (Chairman) and Erik
Ekudden.
The Remuneration Committee has the task of
drawing up guidelines for remuneration to senior
executives, which the Board of Directors proposes to
the Annual General Meeting for resolution. The Board
of Directors shall prepare a proposal for new guide
lines at least every fourth year. For information about
ASSA ABLOY’s current guidelines for remuneration
to senior executives that were adopted at the 2022
Annual General Meeting, see Note 35.
The Remuneration Committee also prepares, mon
itors and evaluates matters regarding salaries, bonus,
pension, severance pay and incentive programs for
the CEO and other senior executives. The Committee
has no decision-making powers.
The Committee held one meeting in 2024. Its work
included preparing a proposal for the remuneration
report, preparing a proposal for the remuneration of
the Executive Team, evaluating existing incentive pro
grams, and preparing a proposal for a new long-term
incentive program. Remuneration Committee meet
ings are minuted; a copy of the minutes is enclosed
with the materials provided to the Board and a verbal
report is given at Board meetings.
53
ASSA ABLOY | ANNUAL REPORT 2024
download
a printable
pdf here
Corporate governance | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
• Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Ordinary Board meeting
and visit to operations
Visit to France
Acquisitions
Ordinary Board meeting
Interim Report Q3
Report from Audit Committee
Strategy, including
sustainability issues
Presentation Global Solutions
Acquisitions
Audit Committee
meeting
Ordinary Board
meeting
Interim Report Q2
Report from Audit
Committee
Acquisitions
Extraordinary Board
meeting
Acquisitions
Ordinary Board
meeting
Presentation Americas
Acquisitions
Audit Committee
meeting
6
Audit Committee
The Audit Committee comprised Susanne
Pahlén Åklundh (Chairman), Victoria Van Camp and
Lena Olving in 2024.
The duties of the Audit Committee include con
tinuous monitoring and quality assurance of ASSA
ABLOY’s financial reporting and sustainability report
ing. Regular communication is maintained with the
company’s external auditor, including on the focus
and scope of the audit and review of the sustainability
statement. The Audit Committee must inform the
Board of the results of the audit and the review of
the sustainability statement. The Audit Committee is
also responsible for evaluating the audit assignment
and obtaining the results of the Swedish Inspectorate
of Auditors’ quality control of the auditor, as well as
informing the Board of Directors of the results of the
evaluation. The Audit Committee also has the task of
supporting the Nomination Committee in providing
a proposal for the appointment of external auditor.
Furthermore, the Audit Committee must review and
monitor the impartiality and independence of the
auditor, paying particular attention to whether the
auditor provides the company with services other
than auditing services and reviews of sustainability
reports. The Audit Committee establishes guidelines
for procurement of services other than audit services
from ASSA ABLOY’s auditors, and, if applicable, it
approves such services according to these guidelines,
and establishes guidelines for the appointment of
new local audit firms. Otherwise, the Committee has
no decision-making powers.
The Committee held four meetings in 2024. The
company’s external auditor and representatives from
senior management also participated at these meet
ings. Key matters discussed by the Audit Committee
during the year included internal control and internal
audit, accounting rules, new regulations for sustain
ability reporting, financial statement and valuation
matters, tax matters, insurance and risk management
matters, financial matters, information security, and
legal risks. Audit Committee meetings are minuted;
a copy of the minutes is enclosed with the materials
provided to the Board and a verbal report is given at
Board meetings.
Remuneration of the Board of Directors
The General Meeting passes a resolution on the re
muneration to be paid to board members. The 2024
Annual General Meeting passed a resolution on Board
fees totaling SEK 9,945,000 (excluding remuneration
for committee work) to be allocated between the
members as follows: SEK 3,160,000 to the Chairman,
SEK 1,175,000 to the Vice Chairman, and SEK 935,000
to each of the other members elected by the Annual
General Meeting. As remuneration for committee
work, the Chairman of the Audit Committee is to
receive SEK 440,000, the Chairman of the Remunera
tion Committee SEK 180,000, members of the Audit
Committee (except the Chairman) SEK 300,000 each,
and the member of the Remuneration Committee
(except the Chairman) SEK 90,000.
The Chairman and other board members have no
pension benefits or severance pay agreements. The
employee representatives do not receive Board fees.
For further information on the remuneration of board
members in 2024, see Note 35.
Attendance at Board and Committee meetings in 2024
Board members
Board of
Directors
Audit
Committee
Remuneration
Committee
Johan Hjertonsson
9
1
Carl Douglas
8
Erik Ekudden
8
1
Sofia Schörling Högberg
8
Lena Olving
9
4
Victoria Van Camp
9
4
Joakim Weidemanis
9
Susanne Pahlén Åklundh
9
4
Rune Hjälm
9
Bjarne Johansson
9
Total number of meetings
9
4
1
Ordinary Board meeting
Year-end results
Dividend proposal
Annual Report
Sustainability Report
Report from Audit Committee
Report from Remuneration
Committee
Proposals to Annual General
Meeting
Evaluation of Executive Team
Evaluation Board of Directors
Acquisitions
Ordinary Board meeting
Interim Report Q1
Report from Audit Committee
HR strategy
Sustainability issues
Presentation Pacific and North
East Asia
Acquisitions
Remuneration
Committee meeting
Audit Committee
meeting
Extraordinary
Board meeting
(by correspondence)
Notice of Annual
General Meeting
Audit Committee meeting
Statutory Board meeting (by correspondence)
Appointment committee members
Adoption Board of Directors’ rules of procedure
and Group policies
Signatory powers
January
February
March
April
May
June
July
August
September
October
November
December
Summary of Board of Directors’ work and Committee meetings in 2024
At the ordinary Board meetings the CEO also reported on the Group’s performance and financial position, including the outlook for the coming quarters.
54
ASSA ABLOY | ANNUAL REPORT 2024
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pdf here
Board of Directors | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
• Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Board of Directors
1
Johan Hjertonsson
Chairman of the Board since 2023.
Board member since 2021.
Born 1968.
Master of Science in Business and Economics.
President and CEO of Investment AB Latour since 2019.
Previously President and CEO of AB Fagerhult and Lammhults
Design Group AB and various management positions within
the Electrolux Group.
Other appointments: Chairman of Alimak Group AB and
Tomra Systems ASA. Board member of Investment AB Latour
and Sweco AB.
Shareholdings (including through companies and related
natural parties): 10,000 Series B shares.
2
Carl Douglas
Vice Chairman of the Board since 2012.
Board member since 2004.
Born 1965.
BA (Bachelor of Arts) and D. Litt (h.c.) (Doctor of Letters).
Self-employed.
Other appointments: Board member of Investment AB Latour.
Shareholdings (including through companies and related
natural parties): 41,595,729 Series A shares and 63,864,435
Series B shares through Investment AB Latour.
3
Erik Ekudden
Board member since 2022.
Born 1968.
Master of Science in Electrical Engineering.
Senior Vice President, Chief Technology Officer and Head of
Group Function Technology at Telefonaktiebolaget LM Ericsson
since 2018. Previously a number of management positions
within the Ericsson Group since 1993.
Other appointments: Fellow and vice Chair of the Presidium
of the Royal Swedish Academy of Engineering Sciences (IVA) as
well as member of the Broadband Commission for Sustainable
Development.
Shareholdings (including through companies and related
natural parties): –
Elected by the 2024 Annual General Meeting
4
Sofia Schörling Högberg
Board member since 2017.
Born 1978.
BSc (Bachelor of Science) in Business Administration.
Other appointments: Vice Chairman of Melker Schörling AB.
Board member of Securitas AB and Hexagon AB.
Shareholdings and holdings in other financial instruments
(including through companies and related parties):
15,930,240 Series A shares and 18,106,557 Series B shares
through Melker Schörling AB as well as 310,600 Series B shares
through Edeby-Ripsa Skogsförvaltning AB. ASSA ABLOY AB
bonds of SEK 200 M through Melker Schörling AB.
5
Lena Olving
Board member since 2018.
Born 1956.
Master of Science in Mechanical Engineering.
President and CEO of Mycronic AB 2013–2019. COO and
Deputy CEO of Saab AB 2008–2013. Various positions within
Volvo Car Corporation 1980–1991 and 1995–2008 of which
seven years in the Executive Management Team. CEO of Samhall
Högland AB 1991–1994.
Other appointments: Chairman of Nodica Group AB. Board
member of Investment AB Latour, NXP Semiconductor N.V.,
Stena Metall AB and Vestas A/S. Fellow of the Royal Swedish
Academy of Engineering Sciences (IVA).
Shareholdings (including through companies and related
natural parties): 600 Series B shares.
6
Victoria Van Camp
Board member since 2023.
Born 1966.
Master of Science in Mechanical Engineering and Doctor of
Technology in machine elements.
Runs her own consulting firm Axa Consulting since 2002 with
focus on advising within technology development in order to
accelerate green transition. Previously a number of manage
ment positions within AB SKF 1996–2022.
Other appointments: Board member of Billerud AB, Alleima
AB, SR Energy AB, LumenRadio AB and the Chalmers foundation.
Adjunct professor in machine elements at Luleå University of
Technology. Fellow of the Royal Swedish Academy of
Engineering Sciences (IVA).
Shareholdings (including through companies and related
natural parties): 6,800 Series B shares.
1
2
4
3
5
6
8
7
7
Joakim Weidemanis
Board member since 2020.
Born 1969.
Master of Science in Business and Economics.
Executive Vice President and Corporate Officer of Danaher
Corporation 2017–2024. Previously various management
positions within Danaher 2011–2017. Head of Product
Inspection and Corporate Officer of Mettler Toledo 2005–2011.
Previously various operating and corporate development roles
within ABB 1995–2005.
Other appointments: –
Shareholdings (including through companies and related
natural parties): –
8
Susanne Pahlén Åklundh
Board member since 2021.
Born 1960.
Master of Science in Engineering.
President of the Energy Division of Alfa Laval AB 2017–August
2021. Previously various positions in the Alfa Laval Group
Management since 2009.
Other appointments: Chairman of Alfdex AB. Board member
of Alleima AB and Sweco AB.
Shareholdings (including through companies and related
natural parties): 2,500 Series B shares.
Appointments and shareholdings at 31 December 2024 unless
stated otherwise.
55
ASSA ABLOY | ANNUAL REPORT 2024
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Board of Directors | Report of the Board of Directors
Appointed by employee organizations
9
Rune Hjälm
Board member since 2017.
Born 1964.
Employee representative, IF
Metall.
Chairman of European Works
Council (EWC) in the ASSA
ABLOY Group.
Shareholdings (including
through companies and
related natural parties): –
10 Bjarne Johansson
Board member since 2023.
Born 1966.
Employee representative, IF
Metall.
Shareholdings (including
through companies and
related natural parties): –
9
10
Independence of the Board of Directors
Name
Position
Independent of the company and its
management
Independent of the company’s major
shareholders
Johan Hjertonsson
Chairman
Yes
No
Carl Douglas
Vice Chairman
Yes
No
Erik Ekudden
Board member
Yes
Yes
Sofia Schörling Högberg
Board member
Yes
No
Lena Olving
Board member
Yes
No
Victoria Van Camp
Board member
Yes
Yes
Joakim Weidemanis
Board member
Yes
Yes
Susanne Pahlén Åklundh
Board member
Yes
Yes
The Board of Directors’ composition and shareholdings
Name
Position
Elected
Born
Remuneration
Committee
Audit Committee
Series A shares1
Series B shares1
Johan Hjertonsson
Chairman
2021
1968
Chairman
–
–
10,000
Carl Douglas
Vice Chairman
2004
1965
–
–
41,595,729
63,864,435
Erik Ekudden
Board member
2022
1968
Member
–
–
–
Sofia Schörling Högberg
Board member
2017
1978
–
–
15,930,240
18,417,157
Lena Olving
Board member
2018
1956
–
Member
–
600
Victoria Van Camp
Board member
2023
1966
–
Member
–
6,800
Joakim Weidemanis
Board member
2020
1969
–
–
–
–
Susanne Pahlén Åklundh
Board member
2021
1960
–
Chairman
–
2,500
Rune Hjälm
Board member, employee representative
2017
1964
–
–
–
–
Bjarne Johansson
Board member, employee representative
2023
1966
–
–
–
–
Fredrik Bergvall
Deputy, employee representative
2024
1988
–
–
–
10
Annika Åkerblom
Deputy, employee representative
2023
1981
–
–
–
–
1 Through companies and related natural parties.
ASSA ABLOY’s Board of Directors fulfills the requirements
for independence in accordance with the Swedish Corporate
Governance Code.
Appointments and shareholdings at 31 December 2024 unless stated otherwise.
11 Fredrik Bergvall
Deputy board member since
2024.
Born 1988.
Employee representative,
Unionen.
Shareholdings (including
through companies and
related natural parties):
10 Series B shares.
12 Annika Åkerblom
Deputy board member since
2023.
Born 1981.
Employee representative,
Sveriges Ingenjörer.
Shareholdings (including
through companies and
related natural parties): –
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
• Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
11
12
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Executive Team | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
• Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Executive Team
1
3
2
5
6
1
Nico Delvaux
President and CEO since 2018, Head of the Global Technologies
division since 2018 and of the Asia Pacific division since 2021.
Born 1966.
Master of Engineering in Electromechanics and executive MBA.
Previous positions: President and CEO of Metso Corporation
August 2017–February 2018. Previously various positions in the
Atlas Copco Group, including Business Area President
Compressor Technique 2014–2017, Business Area President
Construction Technique 2011–2014, and various positions in
sales, marketing, service, acquisition integration and general
management in markets including Benelux, Italy, China, Canada,
and the United States 1991–2011.
Shareholdings (including through companies and related
natural parties): 392,686 Series B shares and 44,787 call
options.
2
Erik Pieder
Executive Vice President and Chief Financial Officer (CFO)
since 2019.
Born 1968.
MBA and Master of Laws.
Previous positions: Various positions in the Atlas Copco Group
1996–2019, including Vice President Business Control
Compressor Technique.
Shareholdings: 20,239 Series B shares.
3
Lucas Boselli
Executive Vice President and Head of Americas division since
2018.
Born 1976.
Bachelor of Science in Industrial Engineering.
Previous positions: Various positions in the ASSA ABLOY Group,
including President of ASSA ABLOY Central and South America
2014–2018 and President of Yale Latin America 2012–2014.
Previously various positions in Ingersoll Rand 2000–2010.
Shareholdings: 111,858 Series B shares.
4
Allan Cooper
Executive Vice President and Chief Human Resources Officer
(CHRO) since 2024.
Born 1968.
Master’s in Human Resources Development. Fellow of the
Chartered Institute of Personnel & Development.
Previous positions: Various positions within the ASSA ABLOY
Group including SVP and Head of HR EMEIA 2017–2024 and HR
Director UK, Africa & Middle East 2007–2017. Previously HR
Director Hozellock 2003–2007, HR Manager JCB 2000–2003
and HR Manager Amada 1990–2000.
Shareholdings: 6,129 Series B shares.
5
Simon Ellis
Executive Vice President and Head of Asia Pacific business unit
ASSA ABLOY Opening Solutions Pacific and North East Asia since
2021.
Born 1974.
MBA.
Previous positions: Various positions in the ASSA ABLOY Group,
including President of Opening Solutions Pacific Region and
Japan 2016–2020 and President of Opening Solutions New
Zealand 2013–2016, General Manager Security Merchants
Australia 2010–2013. Previously various positions in the ASSA
ABLOY Group 1997–2010.
Shareholdings: 8,156 Series B shares.
6
Massimo Grassi
Executive Vice President and Head of Entrance Systems division
since 2021.
Born 1961.
Master of Engineering.
Previous positions: Divisional Managing Director, IMI Precision
Engineering 2015–2020. Various positions within the Stanley
Black & Decker Group, including President Stanley Security
Europe 2012–2015, Global President Industrial Automotive
Repair 2010–2012 and President in Europe 2007–2010.
Previously various positions in Pentair Inc., BWT AG and Pirelli.
Shareholdings: 15,228 Series B shares.
Appointments and shareholdings at 31 December 2024 unless stated otherwise.
4
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Executive Team | Report of the Board of Directors
7
9
8
10
7
Björn Lidefelt
Executive Vice President and Head of Global Technologies
business unit HID since 2020.
Born 1981.
Master of Science in Industrial Engineering and Management.
Previous positions: Various positions in the ASSA ABLOY Group,
including Chief Commercial Officer 2017–2020, and General
Manager ASSA ABLOY China (security products) 2013–2016.
Shareholdings: 44,339 Series B shares.
8
Stephanie Ordan
Executive Vice President and Head of Global Technologies
business unit Global Solutions since 2021.
Born 1976.
Master of Business Administration and Engineering Diploma.
Previous positions: Vice President Digital and Access Solutions
ASSA ABLOY EMEIA 2018–2021, Head of Energy Storage
Business and Head of Marketing and Communication Eaton
2014–2018. Strategic Marketing/New Products Development
Director General Electric 2013–2014. Previously, Application
Engineer, Field Sales Engineer, Head of Strategy and Product
Management STMicroelectronics 1999–2013.
Shareholdings: 8,825 Series B shares.
9
Martin Poxton
Executive Vice President and Head of Asia Pacific business unit
ASSA ABLOY Opening Solutions Greater China and South East
Asia since 2021.
Born 1972.
HND in Mechanical and Manufacturing Engineering.
Previous positions: Vice President Operations ASSA ABLOY
Opening Solutions Asia Pacific 2017–2020, Operations Director
Adient China 2013–2017, Business Unit General Manager and
Launch Director Johnson Controls China 2008–2012. Various
positions in Faurecia China 2004–2008. Previously various
positions in Keiper, Johnson Controls and Flowform B’ham UK
1992–2004.
Shareholdings: 6,759 Series B shares.
10 Neil Vann
Executive Vice President and Head of EMEIA division since 2018.
Born 1971.
Degree in Manufacturing Engineering.
Previous positions: Various positions in the ASSA ABLOY Group,
including Market Region Manager ASSA ABLOY UK 2014–2018,
Market Region Manager Italy and Greece 2012–2014 and Vice
President Operations EMEA 2011–2012. Previously various
positions within ASSA ABLOY, Yale and Chubb 1987–2001.
Shareholdings: 41,233 Series B shares.
Executive Team, cont.
Appointments and shareholdings at 31 December 2024 unless stated otherwise.
Changes in the Executive Team
Allan Cooper took up the position of Executive Vice
President and Chief Human Resources Officer on 1 No
vember 2024, having been in the position on an interim
basis since 1 September 2024. He succeeded Helle Bay,
who left ASSA ABLOY on 31 August 2024.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
• Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
58
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Corporate governance | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
• Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
7
Organization
CEO and Executive Team
The Executive Team consists of the CEO, the Heads of
the Group’s divisions, the Heads of the business units
HID, Global Solutions, Opening Solutions Greater
China and South East Asia and Opening Solutions
Pacific and North East Asia, the Chief Financial Officer
and the Chief Human Resources Officer. For a
presentation of the CEO and the other members of the
Executive Team, see pages 56–57.
8
Divisions – decentralized organization
ASSA ABLOY’s operations are decentralized.
Operations are organizationally divided into five
divisions: EMEIA, Americas, Asia Pacific, Global
Technologies and Entrance Systems. The fundamental
principle is that the divisions should be responsible, as
far as possible, for business operations, while various
functions at ASSA ABLOY’s Group Center are
responsible for coordination, monitoring, policies and
guidelines at an overall level. Decentralization is a
deliberate strategic choice based on the industry’s
local nature and a conviction of the benefits of a
divisional control model. The Group’s structure results
in a geographical and strategic spread of responsibility
ensuring short decision-making paths.
ASSA ABLOY’s operating structure is designed to
create maximum transparency, to facilitate financial
and operational monitoring, and to promote the flow
of information and communication across the Group.
The five divisions are divided into business units.
These consist in turn of a large number of sales and
production units, depending on the structure of the
business unit concerned. Apart from monitoring by
unit, monitoring of products and markets is also
carried out.
Policies and guidelines
Significant policies and guidelines in the Group
include financial control, communication issues,
insider issues, information security and data
protection, sustainability issues, business ethics,
competition law and trade compliance. ASSA ABLOY’s
financial policy and accounting manual provide the
framework for financial control and monitoring.
ASSA ABLOY’s communication policy aims to ensure
that information is provided at the right time and in
compliance with applicable rules and regulations.
ASSA ABLOY has adopted an insider policy to
complement applicable insider legislation. This policy
applies to individuals in managerial positions at
ASSA ABLOY AB (including subsidiaries) as well as
certain other categories of employees. Information
security policies and guidelines are in place to protect
business-critical information from unauthorized
individuals and organizations.
ASSA ABLOY has adopted a Code of Conduct for
employees and a separate ASSA ABLOY Code of
Conduct for business partners. The Codes, which are
based on a set of internationally accepted conven
tions, define the values and guidelines that should
apply both within the Group and for ASSA ABLOY’s
business partners with regard to matters such as
business ethics, human rights and working condi
tions, as well as the environment, health and safety.
Moreover, ASSA ABLOY has adopted policies and
guidelines on compliance with competition,
anti-corruption, export control/sanctions and data
protection legislation applicable to the Group. Each
division has dedicated staff who monitor compliance
with these policies.
9
Auditor
At the 2024 Annual General Meeting, Ernst &
Young AB (EY) was re-elected as the external auditor
until the end of the 2025 Annual General Meeting.
Authorized public accountant Hamish Mabon is the
auditor in charge. Hamish Mabon was born in 1965
and performs other significant audit assignments for
SEB and Northvolt AB. He has been a member of FAR,
the institute for the accountancy profession in Sweden,
since 1992 and is a FAR Certified Financial Institution
Auditor. He holds no shares in ASSA ABLOY AB.
EY submits the audit report for ASSA ABLOY AB, the
Group and a large majority of the subsidiaries
worldwide. The audit of ASSA ABLOY AB also includes
the administration by the Board of Directors and the
CEO. The auditor in charge attends the Audit Commit
tee meetings as well as the February Board meeting,
at which he reports his observations and recommen
dations concerning the Group audit for the year.
The external audit is conducted in accordance with
International Standards in Auditing (ISA), and
generally accepted auditing standards in Sweden.
The audit of the financial statements for legal entities
outside Sweden is conducted in accordance with
statutory requirements and other applicable rules in
each country. For information about the fees paid to
auditors and other assignments carried out in the
Group in the past three financial years, see Note 3 and
the Annual Report for 2023, Note 3.
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Internal control – financial reporting | Report of the Board of Directors
ASSA ABLOY’s internal control process for financial re
porting is designed to provide reasonable assurance
of reliable financial reporting, which is in compliance
with generally accepted accounting principles, appli
cable laws and regulations, and other requirements
for listed companies.
Control environment
The Board of Directors holds ultimate responsibil
ity for effective internal control and has therefore
established fundamental documents of significance
for financial reporting. These documents include the
Board of Directors’ rules of procedure and instruc
tions to the CEO, the Code of Conduct, financial
policy, an annual financial evaluation plan etc. Regular
meetings are held with the Audit Committee. The
Group has an internal audit function whose primary
objective is to ensure reliable financial reporting and
good internal control.
Financial reporting is governed by the ASSA ABLOY
Accounting and Reporting Manual. It contains
detailed instructions on accounting policies and
procedures for financial reporting that must be
applied by all units. The entire Group uses a financial
reporting system with pre-defined report templates.
ASSA ABLOY has an internal control framework
containing business-critical parts defining a minimum
of mandatory control activities that help reduce the
level of risk. The framework must be applied by all
companies in the Group, and compliance with con
trols is reviewed annually by means of self-assessment
at selected companies.
Risk assessment
Risk assessment is built in to the processes in ques
tion and a variety of methods are used to assess and
limit risk, as well as to ensure that risks are man
aged in compliance with established policies and
guidelines. Risk assessment includes identifying and
evaluating the risk of material errors in accounting
and financial reporting at Group, division and local
levels. The specific material risks that ASSA ABLOY
has identified associated with financial reporting are
errors in business-critical processes such as sales,
purchases, financial statements, inventories, facilities
management, taxes, legal issues, occupational injuries
and the risk of fraud, loss or embezzlement of assets.
Control activities
The Group’s controller and accounting organization
at both central and division levels plays a significant
role in ensuring reliable financial information. It is re
sponsible for complete, accurate and timely financial
reporting. An internal audit function has been estab
lished and carries out audits in accordance with the
plan annually adopted by the Audit Committee. The
results of the audits are communicated to the Audit
Committee and the external auditors. Each division
has employed full-time internal auditors who audit
the companies and monitor internal control.
Information and communication
Reporting and accounting manuals as well as other
financial reporting guidelines are available to all
employees concerned on the Group’s intranet. A
regular review and analysis of financial outcomes is
carried out at both business unit and division levels
and as part of the established operating Board struc
ture. The Group also has established procedures for
external communication of financial information, in
accordance with the rules and regulations for listed
companies.
Review process
The Board of Directors and the Audit Committee
evaluate and review the Annual Report and Interim
Reports prior to publication. The Audit Committee
monitors the financial reporting and other related
issues, and regularly discusses these issues with the
external auditors. All business units report their
financial results monthly in accordance with the
Group’s accounting principles. This reporting serves
as the basis for Interim Reports and a monthly legal
and operating review. Operating reviews conform to
a structure in which sales, earnings, cash flow, capital
employed and other important key figures and trends
for the Group are compiled, and form the basis for
analysis and actions by management and control
lers at different levels. Financial reviews take place
quarterly at divisional Board meetings, monthly in
the form of performance reviews and through more
informal analysis. Other important Group-wide com
ponents of internal control are the annual business
planning process and regular forecasts.
Divisions, local company management teams and
process owners are responsible for ongoing testing of
internal controls by means of annual self-assessment
in accordance with the requirements in ASSA ABLOY’s
internal control framework. The results of the self-as
sessment and action plans are monitored annually
and reported to the Audit Committee. The divisions,
management of local companies and process owners
are responsible for ensuring that agreed measures are
implemented.
Internal audit
The internal audit function is part of the Group’s
financial organization, and the head of the internal
audit function reports to the Chief Financial Officer.
Each division has employed full-time internal auditors
who audit the companies and monitor internal
control. The aim of these audits is to evaluate internal
processes, systems and controls and ensure that they
are effective and comply with ASSA ABLOY’s policies
and guidelines. Detailed audit reports are issued to
the local company management team, process own
ers and divisions after each audit. The reports contain
observations and recommendations with a view to
improving operations and reducing potential risks.
The internal audit function also provides regular
updates on the status of the audit plan, agreed
measures and compliance with internal control to
management and the Audit Committee.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
• Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Internal control – financial reporting
60
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
• Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Sustainability statement | Report of the Board of Directors
Sustainability
statement
Sustainability is central to our
business strategy, enabling us to
minimize our environmental and
carbon footprint while continuing
to drive business growth. Our long-
term commitment to sustainability
will unlock significant opportunities
to reduce costs, mitigate climate
risks, and develop more sustainable
solutions to meet the needs of our
customers. Sustainability is inte
grated into everything we do. When
executed effectively, sustainability is
a key business enabler.
p 65
p 81
p 85
p 94
p 102
p 98
p 103
General
information
Environmental
information
Environmental information
Climate change
Social information
Own workforce
Social information
Consumers and end-users
Social information
Workers in the value chain
Governance information
Business conduct
ESRS 2
Taxonomy
E1
S1
S4
S2
G1
p 90
Environmental information
Water and marine resources
E3
p 92
E5
Environmental information
Resource use and circular economy
Sustainability statement | Report of the Board of Directors
61
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
• Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Sustainability statement | Report of the Board of Directors
Highlights 2024
Dow Jones Sustainability Index Europe
ASSA ABLOY is a constituent of the Dow Jones Sustainability Index
Europe for the fourth year in a row. The index tracks the performance of
the top 20 percent of the 600 largest European companies in the S&P
Global Broad Market IndexSM that lead the field in terms of sustaina
bility.
Reduced carbon footprint
In 2024, the Group has reduced its absolute Scope 1 & 2
carbon footprint by 36 percent, against the 2019 baseline.
Reduced water consumption
During 2024, water intensity reduced by 56 percent,
against the 2019 baseline.
Reduced waste
In 2024, non-hazardous waste intensity in the Group
decreased by 29 percent, against the 2019 baseline.
Our injury rate remained flat
vs. 2023.
The Group’s Scope 1 & 2 absolute
greenhouse gas emissions decreased
by 20 percent vs. 2023.
Our water intensity has
decreased by 10 percent vs. 2023.
The Group carried out 701
sustainability audits of direct material
suppliers during 2024.
Our energy intensity has
decreased by 10 percent vs.
2023.
By the end of 2024 the Group had
267 Environmental Product
Declarations verified and published.
INJURY RATE
CARBON FOOTPRINT
WATER INTENSITY
ENVIRONMENTAL PRODUCT
DECLARATIONS
ENERGY INTENSITY
SUSTAINABILITY AUDITS
10%
701
10%
267
0%
20%
Recognition and memberships
ASSA ABLOY is included in FTSE4Good, the OMX GES Sustaina
bility Sweden PI Index, and in the Kempen SNS SRI Universe.
In 2017, ASSA ABLOY became an official regional partner in the
World Green Building Council’s Europe Regional Network. The
Network represents a confederation of over 20 Green Building
Councils, eight Regional Partners and close to 5,000 company
members.
Other important main memberships include:
The Confederation of Swedish Enterprise (Svenskt Näringsliv),
The Royal Swedish Academy of Engineering Sciences (IVA),
The Connectivity Standards Alliance (CSA), FiRa Consortium,
and Security Industry Association (SIA).
Sustainability statement | Report of the Board of Directors
ASSA ABLOY | ANNUAL REPORT 2024
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
• Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Sustainability statement | Report of the Board of Directors
1 Acquisitions will be given 3 years to become certified.
Throughout the year, we made significant advancements towards most of our 2025 goals, based on our 2019 baseline, though
we aim to achieve even more moving forward. In particular, we made strong improvements in our water and energy intensity.
Performance and 2025 targets
Carbon footprint
(Scope 1 & 2, ’000 metric
tons absolute)
2025 TARGET
DEVELOPMENT
2019–2024
COMMENTS ON
2024 VS. 2023
25%
In 2024, there was a 20
percent decrease in Scope
1 & 2 absolute carbon
emissions. Where 2 percent
is due to focused energy
efficiency improvements
and 18 percent is linked
with implementing the most
recent emission factors.
Energy intensity
(MWh/SEK M)
25%
Energy intensity reduced
in 2024 by 10 percent,
due to continued focus
of energy effectiveness
and efficiency initiatives
and increased produc
tion output resulting in
higher value added.
Hazardous waste intensity
(kg/SEK M)
Non-hazardous
waste intensity
(kg/SEK M)
25%
25%
In 2024, hazardous waste
intensity reduced by
5 percent. This was
accomplished through
waste reduction efforts,
where production
methods were further
refined to minimize waste
hazardous waste.
Non-hazardous waste
intensity reduced by
8 percent in 2024. All
locations adhere to the
waste hierarchy, prior
itizing waste prevention
as much as possible,
followed by maximizing
reuse and recycling.
Water intensity
(m3/SEK M)
25%
Water intensity reduced
by 10 percent in 2024.
This stemmed from on
going efforts to enhance
water efficiency across
the Group and contin
ued improvements in
water infrastructure.
Organic solvents intensity
(kg/SEK M)
50%
In 2024, organic solvents
intensity reduced by 5
percent. This is a result
the continued effort to
convert to water-based
paint in our door oper
ations.
ISO 14001 – percent of sites
certified in reporting scope
100%
In 2024, 77 percent of
our sites defined as
requiring ISO 14001
were certified. We
continue to roll-out ISO
14001 to all relevant
sites.
Operations
0
100
200
300
25
24
23
22
21
20
19
’000 tons
0
5
10
15
20
25
24
23
22
21
20
19
MWh/SEK M
0
10
20
30
40
50
25
24
23
22
21
20
19
m3/SEK M
0
25
50
75
100
25
24
23
22
21
20
19
kg/SEK M
0
200
400
600
800
25
24
23
22
21
20
19
kg/SEK M
0
5
10
15
20
25
24
23
22
21
20
19
kg/SEK M
0
25
50
75
100
25
24
23
22
21
20
19
%
40%
56%
42%
29%
69%
1p.p1
36%
LINKED SDGs
LINKED SDGs
63
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
• Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Sustainability statement | Report of the Board of Directors
1 Spend in identified risk countries.
Supply management
People
2025 TARGET
2025 TARGET
DEVELOPMENT
2019–2024
DEVELOPMENT
2019–2024
COMMENTS ON
2024 VS. 2023
COMMENTS ON
2024 VS. 2023
LINKED SDGs
LINKED SDGs
Supplier
sustainability audits
(percent of direct
material spend1)
95%
Code of Conduct for
Business Partners
(percent of direct &
indirect material spend)
95%
In 2024, 92 percent of
our relevant direct
material suppliers by
spend have been audited
with our supplier
sustainability audit.
In 2024, 86 percent of
our direct and indirect
material suppliers by
spend have signed our
Code of Conduct for
Business Partners. We
are continuing to roll this
out to our indirect
suppliers.
0
25
50
75
100
25
24
23
22
21
20
19
%
0
25
50
75
100
25
24
23
22
21
20
19
%
18p.p
5p.p1
Injury rate (number
of injuries per million
hours worked)
33%
0
1
2
3
4
25
24
23
22
21
20
19
Injury rate
0
20
40
60
80
25
24
23
22
21
20
19
Injury lost day rate
0
10
20
30
40
25
24
23
22
21
20
19
%
-17%
-2%
5p.p
Our injury rate remained
flat in 2024.
Our injury lost day rate
remained flat in 2024.
Diversity and inclusion is
a key focus for the Group.
The portion of females in
management positions
increased to 29 percent
in 2024.
Injury lost day rate (number
of lost days related to injuries
per million hours worked)
33%
Gender diversity
(percent of females in
management positions)
30%
Performance and 2025 targets, continued
LINKED SDGs
64
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
• Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Sustainability statement | Report of the Board of Directors
Performance against targets
Sustainability program to 2025 progress:
Area
2019
2020
2021
2022
2023
20241
Target
2019–2025
Change
2019–2024
Linked SDGs
Environmental KPI
ISO 14001 – % of sites certified in reporting scope2, 4
76%
77%
77%
76%
73%
77%
100%
●
+1 p.p.
Carbon footprint – Scope 1 & 2 greenhouse gas emissions (metric tons absolute)3, 4
293,508
240,604
249,482
237,209
236,065
189,230
–25%
●
–36%
Energy intensity (MWh/SEK M)4
15.7
14.9
13.7
11.8
10.5
9.4
–25%
●
–40%
Water intensity (m3/SEK M)4
42.2
37.5
30.9
25.1
20.8
18.8
–25%
●
–56%
Hazardous waste intensity (kg/SEK M)4
89.7
79.0
73.6
66.1
54.4
51.6
–25%
●
–42%
Non-hazardous waste intensity (kg/SEK M)4
559
530
557
490
432
399
–25%
●
–29%
Organic solvents intensity (kg/SEK M)4
16.9
9.1
8.3
6.0
5.6
5.3
–50%
●
–69%
Social KPI
Injury rate (number of injuries per million hours worked)4
3.0
2.8
3.1
3.2
2.5
2.5
–33%
●
–17%
Injury lost day rate (number of lost days related to injuries per million hours worked)4
60.0
65.5
75.0
73.9
58.5
58.8
–33%
●
–2%
Portion of spend in identified risk countries represented by sustainability audited direct material suppliers
97%
91%
86%
93%
94%
92%
95%
●
–5 p.p.
Portion of spend of direct and indirect material suppliers who have signed the Group's Code of Conduct for Business Partners
68%
68%
73%
76%
81%
86%
95%
●
+ 18 p.p.
Gender equality
Portion of females in management positions
Level 2:
Level 3:
Level 4:
Level 5:
Level 2–5:
20%
17%
20%
25%
24%
9%
21%
21%
26%
25%
9%
12%
25%
28%
27%
18%
11%
26%
30%
29%
18%
14%
26%
30%
29%
9%
16%
27%
30%
29%
30%
●
–11 p.p.
0 p.p.
+7 p.p.
+5 p.p.
+5 p.p.
1 For comparable units in 2024, defined as all legal entities acquired up to (June 30, 2023), excluding HHI.
2 Acquisitions will be given 3 years to become certified.
3 Scope 1 & 2 greenhouse gas emissions related to energy consumption and industrial processes, not including Scope 1 fleet.
4 The historical numbers have been adjusted with proforma data.
● KPI is on track
● KPI is at risk
65
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
• ESRS 2
Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Sustainabilty Council's reporting process
Sustainable Innovation
Supply chain integrity
Environmental
Social and ethical
Health and safety
General basis for preparation
The sustainability statement has been prepared
in accordance with the European Sustainability
Reporting Standards (ESRS) meeting all mandatory
requirements, issued by the European Financial
Reporting Advisory Group (EFRAG). This report func
tions as ASSA ABLOY's statutory Sustainability Report
under the Swedish Annual Accounts Act, clarifying
that it addresses the Swedish Annual Accounts Act's
requirements as they were prior to July 1, 2024, while
also incorporating the new CSRD (Corporate Sustain
ability Reporting Directive) requirements following
the implementation of the directive. As this is the first
time of adoption, there are gaps between ESRS and
ASSA ABLOY disclosures. Please refer to page 105 for
the ESRS index and page 106 for the data points that
derive from other EU legislations. Our disclosures in
Environment, Social and Governance are a result of
our double materiality assessment. Our Scope 1, 2
and 3 greenhouse gas (GHG) emissions have been
calculated according to the Greenhouse Gas Protocol.
We have set near-term (2030) and long-term (2050)
carbon emission reduction targets, which have been
ratified by the Science Based Targets initiative (SBTi).
We evaluated our innovation policy, processes, and
results, and chose to omit sensitive details that could
compromise our competitive advantage, in line with
ESRS 1, section 7.7. We will continually monitor our
disclosure practices and reassess the need for omis
sions as our business and regulatory landscape evolve,
maintaining our commitment to transparency while
protecting our intellectual property. The accounting
policies are aligned with financial reporting, for the
financial year. The data is consolidated on a Group
level, consistent with the same financial principles as
the financial statements., except for the acquisitions
mentioned in Note 34 of the Annual Report with
an acquisition date from July 2024 onwards, as they
are still in the process of being integrated into our
sustainability reporting. The units not included in
2024 are not deemed to have a significant impact on
the consolidated numbers with the exception of what
is stated, if any, at each disclosure in this report.
Our sustainability statement provides an overview
of our practices and performance, covering both
upstream and downstream value chains.
This approach ensures we address impacts and
opportunities throughout the product lifecycle.
ASSA ABLOY engages with suppliers from a sustaina
bility perspective, requiring adherence to the Code of
Conduct and conducting audits. We prefer suppliers
focused on resource efficiency, waste minimization,
and emissions reduction. We collaborate with
suppliers to develop sustainable solutions, reducing
our value chain's emissions footprint. We also engage
with customers to understand their sustainability
needs, developing solutions to reduce their emissions
through energy efficiency, product transparency, and
extended product life. Our products are designed us
ing our Sustainability Compass tool to optimize their
footprint and maximize recyclability at end of life.
To measure and report on our sustainability
performance, we track key metrics. For upstream,
we measure the percentage of suppliers signing our
Code of Conduct for Business Partners and conduct
sustainability audits of 92 percent of direct suppliers
in identified risk countries. For downstream, we assess
the energy efficiency of our solutions using national
grid mix emission factors. We plan to develop metrics
for sustainable innovation as part of our next Sustain
ability Program to 2030.
We are committed to improving our sustainability
performance across the value chain by setting ambi
tious targets, reviewing progress, and engaging with
Board of Directors
CEO
Executive Team
Opening Solutions
EMEA
Opening Solutions
Americas
Opening Solutions
APAC
Global
Technologies
Entrance
Systems
Divisional Boards
Manufacturing
Sales Unit
Manufacturing
Sales Unit
Manufacturing
Sales Unit
Manufacturing
Sales Unit
Manufacturing
Sales Unit
Organizational responsibility
General information
ESRS 2
66
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
• ESRS 2
Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
stakeholders. Our sustainability statement will be
updated annually to reflect our efforts and achieve
ments. By addressing sustainability in both upstream
and downstream value chains, we aim to positively
impact the environment, society, and the economy,
contributing to carbon emissions reduction, resource
conservation, and social well-being throughout our
products' lifecycle.
We have reported according to the Global Report
ing Initiative (GRI) since 2010, which provides the
foundation for our sustainability accounting frame
work and aligns to the disclosure requirements of the
CSRD. We use verified data from our onsite meters
and our utility providers where possible, using aver
age proxy data for smaller entities where direct data
is not available. Our Scope 3 emissions are calculated
using both spend-based and average-data methods,
to increase our reporting accuracy. We are working
towards capturing direct data from our supply base,
to further increase data accuracy.
As ASSA ABLOY continues to grow through acqui
sition, new acquisitions are required to report their
sustainability data within six months of being in the
Group. Usually this means companies acquired in the
first six months of the year will be included in the full
year data, while companies acquired in the second
half of the year will be included the following year. For
larger acquisitions it may take longer than six months
to get their sustainability data into our system. The
reason for this is the companies acquired by ASSA
ABLOY typically do not possess a mature corporate
structure and, consequently, lack formal sustainability
reporting processes. ASSA ABLOY conducts training
sessions and collaborates closely with local manage
ment to ensure alignment with the Group's policies.
Our sustainability statement and related data has
been verified as part of a limited assurance, per
formed by ASSA ABLOY’s auditor EY.
Governance
Our divisions have operational responsibility for their
sustainability work, including business conduct. The
work and progress is overseen by the Executive Team,
led by the CEO, and ultimately by the Board of Direc
tors of ASSA ABLOY AB. Our strategy, sustainability
objectives, the Code of Conduct and the Code of Con
duct for Business Partners form the foundation for our
ESRS 2 Board composition 1, 2
Name
Position
Background
Independent of the company
and its management
Independent of the company's
major shareholders
Gender
Johan Hjertonsson
Chairman
President and CEO of Investment AB Latour since 2019. Previously President and CEO of
AB Fagerhult and Lammhults Design Group AB and various management positions within
the Electrolux Group. Other appointments: Chairman of Alimak Group AB and Tomra
Systems ASA. Board member of Investment AB Latour and Sweco AB.
Yes
No
Male
Carl Douglas
Vice Chairman
Self-employed. Other appointments: Board member of Investment AB Latour.
Yes
No
Male
Erik Ekudden
Board member
Senior Vice President, Chief Technology Officer and Head of Group Function Technology
at Telefonaktiebolaget LM Ericsson since 2018. Previously a number of management
positions within the Ericsson Group since 1993. Other appointments: Fellow and vice
Chair of the Presidium of the Royal Swedish Academy of Engineering Sciences (IVA) as well
as member of the Broadband Commission for Sustainable Development.
Yes
Yes
Male
Sofia Schörling Högberg
Board member
Other appointments: Vice Chairman of Melker Schörling AB. Board member of Securitas
AB and Hexagon AB.
Yes
No
Female
Lena Olving
Board member
President and CEO of Mycronic AB 2013-2019. COO and Deputy CEO of Saab AB 2008-
2013. Various positions within Volvo Car Corporation 1980-1991 and 1995–2008 of which
seven years in the Executive Management Team. CEO of Samhall Högland AB 1991–1994.
Other appointments: Chairman of Nodica Group AB. Board member of Investment AB La
tour, NXP Semiconductor N.V., Stena Metall AB and Vestas A/S. Fellow of the Royal Swedish
Academy of Engineering Sciences (IVA).
Yes
No
Female
Victoria Van Camp
Board member
Runs her own consulting firm Axa Consulting since 2022 with focus on advising within
technology development in order to accelerate green transition. Previously a number of
management positions within AB SKF 1996–2022. Other appointments: Board member
of Billerud AB, Alleima AB, SR Energy AB, LumenRadio AB and the Chalmers foundation.
Adjunct professor in machine elements at Luleå University of Technology. Fellow of the
Royal Swedish Academy of Engineering Sciences (IVA).
Yes
Yes
Female
Joakim Weidemanis
Board member
Executive Vice President and Corporate Officer of Danaher Corporation 2017-2024.
Previously various management positions within Danaher 2011–2017. Head of Product
Inspection and Corporate Officer of Mettler Toledo 2005–2011. Previously various operat
ing and corporate development roles within ABB 1995–2005.
Yes
Yes
Male
Susanne Pahlén Åklundh
Board member
President of the Energy Division of Alfa Laval AB 2017–August 2021. Previously various
positions in the Alfa Laval Group Management since 2009. Other appointments: Chairman
of Alfdex AB. Board member of Alleima AB and Sweco AB.
Yes
Yes
Female
Gender diversity ratio (male:female)
4:4
Gender diversity (percentage of females represented)
50%
1 The Board also consists of two employee representatives with one deputy each, who are appointed by the unions.
2 Appointments at 31 December 2024.
67
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
• ESRS 2
Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
sustainability work. Related Group policies, adopted
by the Board of Directors, as well as other guidelines,
processes and tools as set out in the sustainability
statement provide further guidance. Sustainability
goals and targets are set at Group level and are not
performed on a divisional level. The responsibility for
overseeing the management of sustainability-related
Impacts, Risks, and Opportunities is clearly defined
within our governance structure. The CEO and Board
of Directors ensure sustainability is integrated into
the company's decision-making processes, opera
tions, governance structure, risk management pro
cesses, and strategic decision-making. This approach
ensures transparency and accountability in managing
sustainability risks and opportunities.
The Board of Directors and the CEO are responsible
for the reported information in the sustainability
statement in accordance with the CSRD. They oversee
the preparation of the sustainability statement and
review its content, and the Board of Directors ulti
mately approves the sustainability statement.
The Audit Committee of the Board of Directors
is responsible for the preparation of the Board of
Directors’ work regarding sustainability disclosures.
Sustainability is an integrated part of the report
submitted to the Audit Committee ahead of each
quarterly Audit Committee meeting. The Chair
person of the Audit Committee reports from each
Audit Committee meeting to the Board of Directors
at every subsequent Board meeting. Sustainability
matters including material impacts, risks and oppor
tunities, implementation of due diligence, and results
and effectiveness of policies, actions, metrics and
targets adopted to address them, and sustainability
disclosures are addressed by the Board of Directors as
needed and at least annually.
Within the Board of Directors and the Audit
Committee the members are professionals with long
experience from different senior positions, including
CEO and other senior management positions, in global
industrial companies and as such they have extensive
experience from managing the topics generally cov
ered by the sustainability concept, including business
conduct. The Board of Directors is supported by rele
vant functions within the Group, such as the Group’s
Head of Sustainability, on sustainability issues.
Our sustainability issues are managed in a sys
our logistics footprint, prioritizing low-carbon trans
port options. Our diverse customer base is served
through multiple routes to market, including distrib
utors and direct sales. Our products are designed to
ensure the safety and security of our customers and
their assets, with sustainability embedded through
energy efficiency, low-carbon materials, extended
product life, and recyclability at the end of life.
Our sustainability targets are designed to support
the long-term strategic goals of the company, ensur
ing alignment with our vision to help people feel safe,
secure, and experience a more open world. As well as
create value for stakeholders while addressing global
sustainability challenges. These targets focus on areas
where our operations, products, and value chain have
the most significant impacts and opportunities. The
following sustainability-related targets have been
established. Our science-based targets are our cli
mate action goals where our near-term target Reduce
Scope 1 & 2 greenhouse gas emissions (GHG) by 50
percent, and reduce Scope 3 emissions by 28 percent
by 2030, against our 2019 baseline. Our long-term
target is to realize net-zero greenhouse gas emissions
no later than 2050, which is to reduce all scopes by 90
percent. This supports our transition to a low-carbon
economy and aligns with the Paris Agreement to limit
global warming to 1.5°C. This also supports our stra
tegic objective of cost-efficiency in everything we do.
Our focus on resource efficiency includes reducing
energy, water, non-hazardous waste and hazardous
waste intensity by 25 percent by 2025. Reduce organ
ic solvents intensity by 50 percent by 2025. Achieve
100 percent ISO 14001 certification for relevant
manufacturing sites by 2025. This supports waste
reduction and optimization of resource use, as well as
supporting our strategic objective of cost-efficiency
in everything we do. Diversity and inclusion are an im
portant part of our sustainability targets. To increase
the representation of women in leadership roles to 30
percent by 2025. This helps to advance social equity
and reflects our commitment to creating an inclusive
workplace.
Our targets are informed by stakeholder engage
ment, double materiality assessments, and industry
benchmarks. Our climate action targets are ratified
by the Science Based Targets initiative. Our social
targets are benchmarked against leading practic
tematic and consistent way, at divisional level. Each
division is responsible for managing our sustaina
bility agenda, identifying and addressing risks and
opportunities in the context of their business, as
well as governing the Code of Conduct and related
policies. Managers for environmental sustainability,
supply, and innovation at the Group and divisional
levels ensure that the necessary policies, processes
and tools for managing environmental issues exist
and are implemented. The Human Resources (HR)
functions at the Group and divisional levels have the
corresponding responsibility for managing social and
ethical matters. Every factory or business unit has the
operational responsibility within each division. Each
division is also responsible for ensuring that current
and new suppliers understand and comply with our
requirements.
To drive the agenda, five functional sustainability
councils have been defined. The Group intranet
includes two sections that focus on sustainability;
one offering general information for all employees,
while the other supports sustainability managers
and includes tools, best practices, and access to the
sustainability reporting database.
ASSA ABLOY operates a complex supply chain,
sourcing raw materials, components, and finished
goods. This supply chain significantly impacts our
value chain, particularly in terms of greenhouse gas
emissions and resource consumption. As with all
supply chains, there are risks related to fair labor prac
tices, which we work to systematically mitigate by
requiring all suppliers to sign and adhere to our Code
of Conduct for Business Partners and conducting sup
plier sustainability audits. Positive opportunities arise
from collaboration and innovation, aiming to reduce
sustainability impacts through the use of low-carbon
materials and improved resource efficiency.
In our operations and manufacturing sites, the
health and safety of our employees is our number
one priority. We ensure fair treatment and equal
opportunities for all employees. We work to reduce
our carbon footprint, waste generation, and the use
of water and potentially hazardous materials. Our
governance structure and Group sustainability goals
and targets provide a clear framework to help us
minimize our impact.
We collaborate with logistics partners to optimize
es in our sector and are aligned to international
standards such as the UN Sustainable Development
Goals (SDGs). Progress is tracked quarterly using key
performance indicators and reported annually in our
CSRD sustainability statement. Our cross-divisional
sustainability council reviews progress and ensures
alignment with overall business objectives. Example
KPIs include annual GHG emissions (metric tons
CO2eq), percentage of recycled materials used, and
gender diversity metrics. All metrics are disclosed in
our sustainability statement. As per our governance
structure responsibility for achieving targets lies with
the CEO and Board of Directors.
We are unable to present revenue per ESRS
sector due to disaggregation of the Groups revenue
however as seen in Note 2, revenue broken down by
geography/product group. As we continue to improve
our visibility of sustainability impacts on a financial
level, we will review the possibility to implement ESRS
mapping to revenue where practicable.
ASSA ABLOY has not assessed the financial impacts
of material risks and opportunities on financial
position, financial performance and cash flows and
material risks and opportunities; for which there is
significant risk of material adjustment within the next
annual reporting period to carrying amounts of assets
and liabilities reported in related financial statements
due to limitation of data. Consumers and end-users
of ASSA ABLOY are included in reporting of S4. ASSA
ABLOY does not have a full set of internal controls in
place for ESRS reporting, this will be developed during
2025.
Executive remuneration
Climate and other sustainability-related targets are
factored into the variable remuneration of all mem
bers of the Executive Team reporting to the CEO, as
well as management teams throughout the divisions.
These targets are usually linked with decreasing our
energy consumption, which is a key driver for our
Scope 1 & 2 emissions; the reduction targets are
aligned to our annual emissions reduction as part of
our science-based targets. This and other sustainabil
ity-related targets, such as health and safety and peo
ple strategy, are typically in the form of short-term
variable remuneration and usually 3 to 5 percent of
the total short-term variable remuneration target.
68
ASSA ABLOY | ANNUAL REPORT 2024
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a printable
pdf here
Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
• Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
ASSA ABLOY has adopted the Organization for Economic Cooperation and Development (OECD)
Due Diligence Guidance for Responsible Business Conduct. The OECD requirement to “embed respon
sible business conduct into policies and management systems” is described in the governance and
policy matrix. The requirement to “identify and assess adverse impacts in operations, supply chains
and business relationships” is described in the double materiality analysis. The requirements to “cease,
prevent or mitigate adverse impacts” and to “track implementation and results” are covered in the
environmental and social sections. This publication forms part of how we meet the requirement to
“communicate how impacts are addressed.”
Due diligence process and supporting measures
Identify & assess
adverse impacts
In operations, supply
chains and business
relationships
Communicate
How impacts are
addressed
Track
Implementation
and results
Cease, prevent
or mitigate
Adverse impacts
Embed responsible business conduct
Into policies & management systems
Provide for or cooperate
In remediation when appropriate
In preparation for the CSRD, we carried out a double
materiality assessment during 2023 and 2024. In the
past, we have conducted single materiality assess
ments in the form of an impact materiality assess
ment, which provides an inside-out perspective to
assess ASSA ABLOY’s impact on the world.
An impact materiality assessment forms one part of
the double materiality assessment. The second part
is a financial materiality assessment. This provides an
outside-in perspective to assess the financial implica
tions that potential material topics may have on the
Group. We have reported according to the Task Force
on Climate-related Financial Disclosures (TCFD) since
2021, which acts as a solid foundation when prepar
ing our financial materiality assessment.
Double materiality assessment process
The following key activities take place during the
double materiality assessment process, all of which
help to inform the analysis.
• Stakeholder survey
• Workshop 1: Impact materiality
• Workshop 2: Financial materiality
• Analysis of survey, workshops and written
documents
• Workshop 3: Validation of draft list of material
matters
Impact materiality factors
Severity factors and likelihood are graded as follows:
• Scale: Large or small (how grave the negative
impact is or how beneficial the positive impact is)
• Scope: Large or small (how widespread the impact
is, for example geographical extent, number of
people)
• Irremediability: High or low (to what extent a
negative impact could be remediated)
• Likelihood: High or low (for potential impact or
actual impact)
Impact materiality threshold
A sustainability matter is determined as material
when:
• There is an actual impact or a potential impact
with a high likelihood
• With a value of large/high for at least two out
of three negative severity factors (scale, scope,
irremediability), and/or
• With a value of large for at least one out of the
two positive factors (scale, scope)
Other impacts are scrutinized individually to see if
scale, scope or irremediable character alone makes a
negative impact severe enough to qualify as material.
Financial materiality factors
The likelihood and potential magnitude of financial
effects are graded as follows:
• Likelihood: High or low
• Magnitude: Large or small
Financial materiality threshold
A sustainability matter is determined as material
when:
• It has a value of high likelihood and large magni
tude in terms of either being a risk or an opportu
nity, or both
For financially-material matters, the material sub-
topics match the sub-topics that are material from
an impact perspective.
Due diligence
Identify & assess
adverse impacts
Double Materiality Assessment (DMA) and Stakeholder Engagement
69
ASSA ABLOY | ANNUAL REPORT 2024
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Sustainability statement | Report of the Board of Directors
Double materiality assessment outcome
Following our double materiality assessment
process we have identified the following ESRS
topics as being materially relevant: E1 Climate
Change, E3 Water and Marine Resources,
E5 Resource Use and Circular Economy, S1 Own
Workforce, S2 Workers in the Value Chain,
S4 Consumers and End-users, G1 Business Conduct.
The identified material topics are closely aligned to
our overall business strategy, where sustainability is
integrated into everything we do.
We identified the following topics as not being
materially relevant from a CSRD perspective:
E2 Pollution, E4 Biodiversity and Ecosystems,
S3 Affected Communities. Our stakeholders did not
identify the topics as materially relevant to ASSA
ABLOY operations and our value chain. Although
the topics were not identified as materially relevant
in our assessment, they are still important to ASSA
ABLOY, and we take the necessary steps to mitigate
the risk of pollution or biodiversity loss and we
support affected communities where we operate
locally and in our value chain.
Minimal / Informative / Important
Significant / Crucial
Minimal / Informative / Important
Significant / Crucial
FINANCIALLY MATERIAL TOPICS
IMMATERIAL TOPICS
IMPACT AND FINANCIALLY MATERIAL TOPICS
IMPACT MATERIAL TOPICS
Climate Change
Pollution
Biodiversity and
Ecosystems
Water and Marine
Resources
Circular Economy
Business Conduct
Own Workforce
Workers in the Value Chain
Affected Communities
Consumers and End-users
IMPACT MATERIALITY
FINANCIAL MATERIALITY
Material sustainability matters
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
• Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
70
ASSA ABLOY | ANNUAL REPORT 2024
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a printable
pdf here
Sustainability statement | Report of the Board of Directors
Double materiality assessment methodology
We followed the steps outlined by the ESRS to
conduct our double materiality assessment:
1. Stakeholder engagement: We conducted
stakeholder surveys with over 500 stakeholders to
understand the concerns and priorities of various
stakeholders, including employees, customers,
suppliers, investors, industry associations and
NGOs.
2. Materiality workshops: We carried out work
shops to discuss both impact materiality (the sig
nificance of the social and environmental impact
of the company) and financial materiality (the
importance of sustainability issues to enterprise
value).
3. Preliminary findings: We compiled the prelim
inary results from the workshops and surveys to
identify the sustainability matters that are materi
al to the company.
4. Validation process: We established a verification
team made up of function heads and subject mat
ter experts to validate the preliminary findings,
where feedback was collected and incorporated.
5. Reporting: Our sustainability statement and An
nual Report have been prepared in alignment with
the CSRD reporting metrics and requirements,
ensuring that it includes the updated materiality
analysis.
6. Continuous improvement: We will use the
outcomes of the materiality assessment to
continuously improve sustainability practices and
reporting.
Process steps – Impact materiality
We followed the five process steps for impact
materiality as defined by the CSRD:
1. Engagement of stakeholders: We engaged
internal subject matter experts, representatives
from each division and all functional heads across
the Group to attend and provide input during
the impact materiality workshop. We ran a series
of education and awareness sessions before the
impact materiality workshop with all internal
stakeholders to bring them up to speed on what
disclosing to CSRD would entail. We developed
a standardized survey for our wider stakeholders
and received over 500 responses from stakehold
ers; including employees, customers, suppliers,
investors, industry associations and NGOs. The
output from the stakeholders was aggregated into
focus areas to ensure the stakeholder input from
the surveys was taken into account during the
impact materiality workshop.
2. Scoping of impacts: We reviewed our previous
materiality assessments and sustainability focus
areas as a reference point, to determine if we have
been addressing the materially relevant topics.
This provided a stable foundation to build upon,
factoring in the additionality required by the
CSRD.
3. Assessment of individual impacts: As outlined
earlier in the report we evaluated the significance
of each impact, considering factors such as scale,
scope, irremediability and likelihood.
4. Calibration of material impacts: We used the in
put from our stakeholder surveys, internal subject
matter experts and functional heads to assess and
verify the outcome from the double materiality
assessment process. This ensured that the identi
fied material topics are relevant and there were no
gaps or missed relevant topics.
5. Stakeholder and management review: The
findings from our double materiality assessment
process were presented to our Executive Team and
the Board of Directors. This step ensured that the
assessment accurately reflects ASSA ABLOY’s sus
tainability impacts and material issues. This result
ed in the identification of fifteen negative impact
material sub-topics. The findings from our double
materiality assessment process were assessed
with our existing business model and Group
strategy, where it was clear there are no wholesale
changes required for either our business model or
Group strategy. Our current business model and
strategy are sufficient to ensure we can disclose to
CSRD as well as progress towards our sustainabili
ty goals and objectives.
Process steps – Financial materiality
We followed the five process steps for financial
materiality as defined by the CSRD:
1. Engagement of stakeholders: We engaged
internal subject matter experts, including risk
management and all functional heads across the
Group to attend and provide their input during
the financial materiality workshop.
2. Scoping of impacts: We reviewed our previous
disclosures to TCFD and scenario analyses as a
reference point, to determine if we have been
addressing the materially relevant financial topics.
This provided a stable foundation to build upon,
factoring in the additionality required by the
CSRD.
3. Assessment of individual impacts: As outlined
earlier in the report we evaluated the significance
of each risk, considering factors such as likelihood
and magnitude.
4. Calibration of material impacts: We used the
input from our internal subject matter experts and
functional heads to assess and verify the outcome
from the double materiality assessment process.
This ensured the identified material topics are rel
evant and there were no gaps or missed relevant
topics.
5. Stakeholder and management review: The
findings from our double materiality assessment
process were presented to our Executive Team
and the Board of Directors. This step ensured that
the assessment accurately reflects ASSA ABLOY´s
sustainability impacts and material issues. This
resulted in the identification of twelve financial
material sub-topics. The findings from our double
materiality assessment process were assessed
with our existing business model and Group
strategy, where it was clear there are no wholesale
changes required for either our business model or
Group strategy. Our current business model and
strategy are sufficient to ensure we can disclose
to all CSRD Minimum Disclosure Requirements
(MDR) as well as progress towards our sustainabil
ity goals and objectives.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
• Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
Environment
E1 Climate Change
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Opportunity
Risk
Reference to policy
Climate change
mitigation
Greenhouse gas emissions from
operations, suppliers,
transport, employee commut
ing and more.
Our own operations & value
chain do not decarbonise to
succeed in limiting global
warming to 1.5 °C.
Science Based Targets
commitment and actions.
Sustainability Compass.
Supplier sustainability audits.
Upstream &
Downstream
Environmental
sustainability policy.
Reducing emissions
(mirroring the negative
impact).
Our own operations & value
chain need to decarbonise to
succeed in limiting global
warming to 1.5 °C.
Science Based Targets
commitment and actions.
Sustainability Compass.
Supplier sustainability audits.
Upstream &
Downstream
Environmental
sustainability policy.
Climate change with high
likelihood and magnitude.
Factories at risk due to physical
changes such as higher water
levels. Supply chain risks, policy
changes, in both 1.5° and 3.7°
scenarios. Electricity/utility risk
in 3.7° scenario.
Science Based Targets
commitment and actions.
Sustainability Compass.
Supplier sustainability audits.
Upstream
Environmental
sustainability policy.
Climate change with high
magnitude.
Move to circular business
model & develop new products
that meet policy requirements.
Circular economy.
Sustainability Compass.
Downstream
Environmental
sustainability policy.
Energy
Energy consumption in
operations and supply chain.
High rate of energy consump
tion, where energy availability
and cost is volatile.
Science Based Targets
commitment and actions.
Sustainability Compass.
Supplier sustainability audits.
Upstream
Environmental
sustainability policy.
Products increase energy
efficiency and reduce energy
use for customers. Driving
change in building codes.
Increased energy effectiveness
and efficiency to reduce cus
tomers' energy consumption.
Science Based Targets
commitment and actions.
Sustainability Compass.
Supplier sustainability audits.
Downstream
Environmental
sustainability policy.
Material sustainability-related Impacts, Risks and Opportunities
Due diligence
Identify & assess
adverse impacts
We have summarized our material impacts, risks and
opportunities into a set of tables per material topic,
based on the outcome of our double materiality
assessment process including key stakeholder's input.
Timeframes considered are medium-term to 2030
and long-term to 2030. ASSA ABLOY does not consid
er short-term timeframes e.g. twelve months. The ta
bles detail identified positive and negative impacts, as
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
well as risks and opportunities for our own operations
and value chain; including a description, mitigation
actions and referencing policies where relevant.
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Environment
E3 Water and Marine Resources
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Risk
Opportunity
Reference to policy
Water
Water consumption in own
operations.
Our own operations need to
reduce water consumption,
improve processes and efficien
cy, increase water reuse and
recirculation.
Sustainability program and
actions, best practice sharing
Sustainability Compass,
Supplier sustainability audit,
Green Team Playbook, mon
itoring systems, ISO 14001
implementation, overhaul
(infrastructure investments),
consultations with affected
communities; senior man
agement, third-party and key
stakeholder engagement.
Environmental
sustainability policy.
Water
Water consumption in supply
chain operations.
Reduction of water in the value
chain, improve processes and
efficiency, increase water reuse
and recirculation.
Sustainability program and
actions, best practice sharing,
Sustainability Compass
Supplier sustainability audit,
Green Team Playbook, mon
itoring systems, ISO 14001
implementation, overhaul
(infrastructure investments),
consultations with affected
communities; senior man
agement, third-party and key
stakeholder engagement.
Upstream
Environmental
sustainability policy.
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Environment
E5 Resource Use and Circular Economy
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Opportunity
Risk
Reference to policy
Resource inflows,
including resource
use
High usage of primary/
virgin material.
Amount of raw material
use, especially using
virgin raw materials in
production and in the
supply chain.
For the upstream phase (suppliers) we have
a guideline to ensure that the right suppliers
are selected from a sustainability point of
view. Using the same data sets for environ
mental data both in development and in
supplier material is key to be able to steer
the sustainability optimization throughout
the lifecycle of a product.
By doing this during development we sim
plify the calculation of the carbon footprint
of the products as well as calculating the
carbon footprint from purchased material.
Upstream
Innovation policy.
Resource outflows
related to products
and services
Life time of the products.
Unnecessary consump
tion of resources through
lack of serviceability and
upgradeability.
New products and solutions are designed
for serviceability and upgradeability where
possible, to extend the useful life of the
product.
Downstream
Innovation policy.
Resource outflows
related to products
and services
Prolonged life time of the
products.
Potential positive impact
through better product
lifecycle management.
Re-use and repurpose
materials.
In the downstream value chain, we control
the service of the products (if products
need service) by trained employees and
subcontractors who are obliged to maintain
compliance to existing standards. This is
of particular importance for safety and
emergency-related products. The validation
on site needs to be done by a trained service
technician. By having these processes in
place we ensure that our products are com
pliant regardless of whether they are linear
or circular products. This will also make
it possible to initiate reverse logistics on
selected circular components, because we
have control over the status of the product.
Downstream
Innovation policy.
Waste generation
in operations and
supply chain
Waste generation in
operations and supply
chain.
Excessive generation of
waste due to inefficient
manufacturing opera
tions.
In our own operations we maximize our
resource efficiency to minimize the genera
tion of waste. This is done by implementing
efficiency by design in R&D, as well as
reducing waste in operations through lean
manufacturing and quality. We support
our suppliers to increase their maturity in
lean manufacturing and quality, in order to
reduce their waste generation.
Upstream
Environmental
sustainability policy.
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Social
S1 Own Workforce
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Opportunity
Risk
Reference to policy
Working conditions
Health and safety risks for all
employees and non-employees
in our operations.
Work related injuries and
illnesses.
Health and safety program
that focuses on prevention,
behavior and culture for all
employees and non-employees
in our operations.
Code of Conduct.
People, safety and human
rights policy.
Equal treatment
and opportunities
for all
Risk of lack of diversity and
inclusion, human rights for all
employees and non-employees
in our operations.
Diverse workforce and diversity
of thought, harassment,
discrimination.
Whistleblowing process (for all
employees and non-employees
in our operations), Voice of the
Employee with action planning
on all levels, third-party social
compliance audits.
Code of Conduct.
People, safety and human
rights policy.
Whistleblowing directive.
Working conditions
Health and safety, employment
with adequate wages for all
employees and non-employees
in our operations.
We raise safety standards in
our acquisitions. Employment
and fair wages ensuring a good
standard of living.
Health and safety program
implementation as part of inte
gration. Ensure proper working
conditions for all employees
and non-employees in our
operations.
Code of Conduct.
People, safety and human
rights policy.
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Social
S2 Workers in the Value Chain
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Opportunity
Risk
Reference to policy
Working conditions
Improper treatment of value
chain workers.
Suppliers not providing
adequate wages or working
conditions.
Audit suppliers in high-risk
countries (optionally do
sample checks in low-risk
countries, if deemed necessary)
and follow up on any
whistleblowing reports.
Upstream
Code of Conduct for
Business Partners.
Sustainability audits.
Whistleblowing directive.
Other work-related
rights
Improper treatment of value
chain workers.
Risk of suppliers not respecting
human rights.
Audit suppliers in high-risk
countries (optionally do
sample checks in low-risk
countries, if deemed necessary)
and follow up on any
whistleblowing reports.
Upstream
Code of Conduct for
Business Partners.
Sustainability audits.
Whistleblowing directive.
Working conditions
A better life for value chain
workers and their families.
Employment and living wages
to ensure a good quality of life.
Aim to raise standards at our
suppliers.
Audit suppliers and drive
improvement work to address
poor-performing or non-
improving suppliers.
Upstream
Code of Conduct for
Business Partners.
Supplier sustainability
audits.
Other work-related
rights
Improved situation for value
chain workers.
Aim to raise standards at our
suppliers.
Audit suppliers and drive
improvement work to address
poor-performing or non-
improving suppliers.
Upstream
Code of Conduct for
Business Partners.
Supplier sustainability
audits.
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Social
S4 Consumers and End-users
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Opportunity
Risk
Reference to policy
Information-
related impact for
consum-ers and/
or end-users
Can feedback freely regarding
our products and services.
Regardless of what feedback
customers have they can use
our channels to describe how
they perceive our products.
Providing personal data
protection and whistleblower
functions ensures that cus
tomer and end-users can freely
report any issues with product
or services.
Downstream
Innovation policy.
Personal safety of
consumers and/
or end-users
People can be hit by doors, for
example.
Defective products or not
serviced products could have
a negative safety impact on
people.
By following the innovation
policy and being compliant
with applicable standards from
development we ensure that
the products are safe. Using
the service provided by ASSA
ABLOY the products will contin
ue to stay safe over its lifetime.
Downstream
Innovation policy.
Personal safety of
consumers and/
or end-users
Enables a safe and secure en
vironment for consumers and
end-users.
Our products and solutions
provide safety to consumers,
providing both social and
customer value.
By developing products that
comply to relevant safety and
security standards as well as
following our Innovation policy
we ensure privacy for our con
sumers and end-users.
Downstream
Innovation policy.
Social inclusion of
consumers and/
or end-users
Provide equal access to prod
ucts and services.
The median age globally is
increasing leading to an aging
population with impairment
or disabilities. Accessibility
and inclusive product design is
therefore key in ensuring that
buildings can be accessed and
used by everyone.
By incorporating our customer
and end-user needs and
requirement to the develop
ment process we ensure that
our products supports social
inclusion.
Downstream
Innovation policy.
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Governance
G1 Business Conduct
Material for
Impact
Financial
Subtopic
Material impact or risk
Description
Mitigation/action
Value
Chain
Own
Operations
Positive
Negative
Opportunity
Risk
Reference to policy
Corruption and
bribery
Low risk but high magnitude.
Not conducting ourselves
in the right way could mean
litigation, fines, reputation
damage and loss of market
share.
Being a decentralized
organization, could increase
misconduct risk in newly
acquired entities.
We need to ensure ethical
business practices in line with
the Code of Conduct and the
anti-corruption policy.
Relevant policies in place.
Internal audit controls.
Anti-corruption reviews.
Training on Code of Conduct
and anti-corruption.
Third-party due diligence pro
cess and the Code of Conduct
for Business Partners.
Code of Conduct.
Anti-corruption policy.
Third party due diligence
process.
Code of Conduct for
Business Partners.
Whistleblowing directive.
Payment practices
Fines, reputation, shortages,
loss of sales.
Potential negative impact if
failing to implement the Code
of Conduct and responsible
business practices.
It is recommended to always
pay on time, but not formally
a part of any currently existing
policy or directive.
–
Payment practices
Suppliers keen to continue
investing in their relationship
with us.
Good business conduct can
have positive effects through
the value chain.
Negotiate reasonable payment
terms, pay invoices on time.
Upstream
–
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Task Force on Climate-Related Financial
Disclosures
In 2024, ASSA ABLOY continued to explore and
understand the requirements of the TCFD. We are
gradually developing the process of reporting to the
TCFD, to ensure it is meaningful and helpful in guiding
our organization to make informed decisions based
on climate-related risk and opportunity. We are firmly
convinced the TCFD framework will enable us to
identify and navigate climate-related financial risks
and opportunities.
We carried out our third climate scenario analysis
during the year. The analysis reviewed the risks and
opportunities of market and technology, reputation,
policy and regulation, and physical risks, to 2030
and 2050. The two different climate scenarios we
reviewed were developed by the UN International
Panel on Climate Control (IPCC): RCP 6 and RCP 2.6.
The two scenario analyses were used to identify and
assess transition risks and opportunities over the
short and medium term to 2030, as well as the long-
term to 2050.
RCP 2.6, called Realizing the Paris Agreement, is
a scenario where emissions decline rapidly over the
coming decades, resulting in a temperature increase
up to 2.3°C warmer by the end of the century.
RCP 6, called The Rocky Road, is a scenario where
emissions are declining at an insufficient rate and not
to the level required, resulting in a temperature in
crease up to 3.7°C warmer by the end of the century.
Scenario analysis
During the scenario analysis we added more context,
where we tried to understand both the qualitative
and quantitative aspects, especially for climate-relat
ed risk. We developed the process to be able to quan
tify our climate-related risk, in terms of percentage of
sales from low risk to very high risk. Depending on the
level of risk (from low to very high), the financial risk is
then determined as percentage impact on total annu
al sales. The analysis reviewed risks and opportunities
relating to two different climate scenarios and how
they could impact ASSA ABLOY’s business in 2030 and
2050. The outcomes are summarized in the blocks to
the right.
The Rocky Road – RCP 6
Temperature increases between 2 – 3.7°C
Increased extreme weather events
Fossil fuel-generated energy, poor air quality
Forced migration
Increased areas of water stress
Ocean levels rising
Opportunities/risks as a % of annual sales
Low <1 %
Medium 2–5%
High 6–10%
Very high is >10%
Opportunities
• Producing locally, a competitive advantage
• Increased solution requirements
• Technology will be a solution enabler
• New markets
• Increased focus on security
Risks: Physical Risk (PR), Transition Risk (TR)
• Coastal factories at risk of flooding (PR)
• Supply chain uncertainty (TR)
• Materials availability (TR)
• Customer expectation (TR)
• Ability to get insurance (TR)
• Higher costs for emissions (TR)
Realizing the Paris Agreement – RCP 2.6
Temperature increases between 0.9 – 2.3°C
Lower frequency of extreme weather events
Large-scale installed renewable energy
Robust energy legislation and carbon taxes
High energy effectiveness and efficiency
Opportunities
• New solutions reducing customers’
environmental footprint
• Transition to circular economy
• Local production will be an advantage
• Increased resource efficiency
Risks: Physical Risk (PR), Transition Risk (TR)
• Availability of low-carbon materials (TR)
• Need to upgrade and retrofit older sites (PR & TR)
• Carbon taxes and market regulations (TR)
• Customer expectation (TR)
• M&A in higher risk geographies (TR)
• Energy quality and availability (TR)
Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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For the climate scenarios we have applied two time
horizons (2030) and (2050) which is in line with the
Paris Agreement. However, for greenhouse gas reduc
tion targets the time horizon is 2030.
When conducting the scenario analyses, we
reviewed several parameters to determine our resil
ience, both for RCP 6 and RCP 2.6. For both scenarios
we reviewed the potential impact on our supply
chain, our own operations and our market and our
customers; as well as assets and business activities.
The focus areas were based on material financial risk
and opportunity across the value chain. This included
assessing countries where we operate, source from
and markets where we are present. For example, by
2030 for our factories we assessed locations that are
potentially exposed to acute risk such as flooding,
sea-level rise and exposure to cyclones in regions
that are at and close to sea-level; as well as locations
that are exposed to chronic risk such as prolonged
extreme heat and drought in countries such as United
Arab Emirates and India.
To perform the analysis, we assembled a cross-func
tional internal team with deep knowledge and global
sector expertise for their function, to represent the
stakeholders in our value chain. Based on their knowl
edge and expertise, we determined what the financial
risk or opportunity was likely to be for the assessed
categories of market and technology, reputation,
policy and regulation, and physical risks. Our strategy
and business model, coupled with our focus to in
crease our sustainability maturity in our supply chain,
our own operations and innovation, through our
sustainability target commitments and objectives,
will ensure our company is resilient to the potential
risks presented by both RCP 6 and RCP 2.6. There are
no obvious uncertainties resulting from our analysis.
For both scenarios, there is potential physical risk in
our supply chain and own operations. Our operations
have very limited exposure to acute and chronic risks,
while our agile supply chain and innovation strategy
will enable us to adapt to and/or mitigate risks as well
as realize opportunities.
We have implemented a process for upgrading
facilities with lower energy efficiency to reach a
higher energy efficiency and reduce our emissions in
the coming five years. We will review the potential for
trainings and ongoing learning opportunities for our
personnel to make sure that our workforce remains
resilient for future climate change challenges. The
output and results from the scenario analysis RCP 6
and RCP 2.6 are presented graphically in the TCFD
table on page 78.
ASSA ABLOY has not identified which assets and
business activities are incompatible with or need
significant efforts to be compatible with transition to
climate-neutral economy.
Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
• Material sustainability-related impacts and risks
Policy matrix
Environmental information
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Policy
Description
Intention
Owner
Actions/mitigation/risks connected
People, safety and
human rights policy
Includes references to Code of Conduct, UN Guiding
Principles on Business and Human Rights at work
and connected UN Conventions.
UN Global Compact, ILO Declaration on Fundamen
tal Principles and Rights at work,
ILO Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy,
OECD Guidelines for Multinational Enterprises.
Promote safe, equal and fair working conditions.
Own workforce (employees and non-employees),
value chain workers, people safety and human rights
policy. Identify impacts and risks and address those.
Accident prevention. Elimination of discrimination
including grounds of discrimination. Employee en
gagement through Voice of the Employee – employ
ee survey. Whistleblowing/ grievance mechanism.
Board of Directors/Chief Human Resources Officer.
Code of Conduct.
Whistleblowing.
Social compliance audits.
Supplier sustainability audits.
Health & Safety program.
Voice of the Employee.
Environmental
sustainability policy
Obligatory and available for all divisions, entities,
employees within the ASSA ABLOY Group and third
parties; defines the commitment, roles and respon
sibilities regarding environmental impact and KPIs
(energy, water, waste, solvents, CO2 emissions, etc.);
if the local/third parties standard is more restrictive
we follow it.
Includes references to Code of Conduct, Code of
Conduct for Business Partners materiality analyses,
ASSA ABLOY Supplier sustainability audit, Green
Team Playbook. The policy factors in the require
ments of all stakeholders. The policy is available to all
stakeholders and is located on our intranet and ASSA
ABLOY’s website. The policy does not specifically
address climate change adaptation, energy efficiency
renewable energy deployment or detail exactly how
climate change will be mitigated.
Mitigating the environmental footprint from own
operations, value chain, logistics, products and
solutions.
Board of Directors/Executive Team.
Code of Conduct.
Sustainability audits.
Lifecycle assessment.
Sustainability Compass.
Science Based Targets and actions.
Green Team Playbook.
Due diligence process.
Sustainability program (targets).
Innovation policy.
Double materiality assessment and consultations.
Following local laws and regulations (considered
as third parties standard).
Trade compliance policy
Policy to prevent and counter illegal or unacceptable
activities, such as breaches of international law, hu
man rights violations, internal repression, terrorism,
and proliferation of weapons.
To act in a responsible manner and always comply
with applicable export control and sanctions
regulations.
Board of Directors/Chief Financial Officer.
Supplier selection/ termination.
Use of appropriate contract clauses.
Whistleblower directive
Includes references to Code of Conduct; Code of
Conduct Case Management process; and Investiga
tion Guideline.
Describes how whistleblowing reports are handled
and which the reporting channels are, (including
that all corruption reports are to be treated as high
risk).
Chief Human Resources Officer.
All employees are expected to report all suspected
Code of Conduct violations.
No retaliation policy.
Third-party due
diligence process
Step-by-step guide for the divisions to use, in order
to appropriately apply adequate, consistent and rea
sonable due diligence, when vetting and partnering
with business representatives.
Includes references to:
Code of Conduct.
Code of Conduct for Business Partners.
Business representatives must be carefully reviewed
and used only for a legitimate business purpose, on
arms-length commercially reasonable terms.
Group Legal.
Actions needed:
1. Define business need.
2. Who can fill need?
3. Are they reputable?
4. Written agreement.
5. Divisional requirements.
6. Sign Code of Conduct for Business Partners.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
ESRS 2
Double materiality assessment and
stakeholder engagement
Material sustainability-related impacts and risks
• Policy matrix
Environmental information
Social information
Governance information
Financial statements
Policy matrix
81
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
• EU Taxonomy
E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Environmental information
During 2024, we conducted several reviews of the
established and emerging legislation of the EU Taxon
omy classification system. In the Taxonomy Report
Technical Annex 1, under Climate Change Mitigation,
we interpret our relevance in section 3.5, Manufac
ture of energy efficiency equipment for buildings;
relating to doors with U-value lower or equal to 1.2
(W/m2K). We deem our sales from doors, where insu
lation is relevant, to be Taxonomy eligible. In 2024, we
measured the percentage of our eligible revenue.
It is important to note a thermal efficiency U-value
of 1.2 W/m2K is not achievable for all types of doors.
For example, industry best in class revolving doors
have a U-value of around 4 W/m2K. Despite having a
U-value higher than 1.2 W/m2K, this does not mean a
revolving door is not a more sustainable solution for
a building compared to another door type. It is more
important to have the right door for the right applica
tion. Taking the application and how people interact
with a door into consideration has a much bigger
overall environmental impact, than just measuring
the thermal efficiency of a door in isolation. Due to
uncertainties and limitations required of achieving
the criteria required for Taxonomy alignment, it
will be challenging to align our economic activities
(Turnover, CapEx, OpEx) with the criteria established
in Commission Delegated Regulation 2021/2139.
We will prioritize our focus and resources to realizing
Definitions:
1 The Taxonomy Turnover equals the Group's revenue, which mainly consists of product sales. Service related to products sold represents a limited share of revenue. Revenue for
the sale of the Group’s products is recognized at a given point in time when the customer gains control over the product, usually at the time of delivery. ASSA ABLOY also carries
out installation services, which are recognized over time. Refer also to note 2 of the consolidated financial statements.
2 The Taxonomy Capital Expenditures (CapEx) is determined on the basis of investments and acquisitions of leased assets, tangible assets and intangible assets excluding good-
will, that are included in the consolidated financial statements as of 31 December 2024. Refer also to notes 14, 15 and 16 of the consolidated financial statements.
3 The Taxonomy Operational Expenditures (OpEx) are calculated on the basis of non-capitalized research and development costs, costs for building renovation measures, costs for
repairs and maintenance of plant, machinery, equipment as well as expenses that are attributable to short-term leases (<12 months) and not recognized as right-of-use assets in
the balance sheet as of 31 December 2024.
EU Taxonomy
our science-based targets, which will have a material
impact on our total greenhouse gas emissions.
Due to the updated requirements in the EU Taxon
omy, we do not meet the criteria required to disclose
aligned percentage. The change of requirements
in Do No Significant Harm (DNSH) Appendix C is
ambiguous; we will require more guidance from the
EU to ascertain how we can apply and interpret these
new requirements. We have reviewed the technical
screening criteria for the four remaining EU Taxonomy
objectives. We did not identify ASSA ABLOY economic
activities in the screening criteria. CapEx decreased in
magnitude between 2023 and 2024 due to capitaliza
tion of acquisitions in 2023, while turnover and OpEx
remain at the same level as in 2023.
The EU Taxonomy is an evolving legislation, and
we will continue to monitor its development and
prepare to disclose in alignment with the Taxonomy
accordingly.
2024 EU Taxonomy KPI results
Total (SEK M)
Eligible %
Non-eligible %
Turnover1
150,162
18%
82%
CapEx2
8,236
10%
90%
OpEx3
7,267
2%
98%
Nuclear energy and fossil gas related activities
Nuclear energy related activitiex 2024
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from
the fuel cycle.
No
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear instal
lations to produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
No
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities
that produce electricity using fossil gaseous fuels.
No
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/
cool and power generation facilities using fossil gaseous fuels.
No
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
No
82
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
• EU Taxonomy
E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
2024 – Turnover
Year
Substantial contribution criteria
DNSH criteria
(‘Does Not Significantly Harm’)
ECONOMIC ACTIVITIES (1)
Code (2)
Turnover (3)
Proportion of turnover (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of
Taxonomy
aligned
(A.1.) or
-eligible
(A.2.)
turnover,
year
N-1 (18)
Category
enabling
activity
(19)
Category
transitional
activity
(20)
SEK M
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of energy efficiency equipment for buildings
CCM 3.5
E
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activites (not Taxonomy-aligned activities)
EL
Manufacture of energy efficiency equipment for buildings
CCM 3.5
26,965
18%
18%
19%
Turnover of Taxonomy-eligible but not environmentally sustainable activites (not Taxonomy-aligned activities) (A.2)
CCM 3.5
26,965
18%
18%
Turnover of Taxonomy-eligible activities (A.1+A.2)
26,965
18%
18%
19%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B)
123,197
82%
Total
150,162 100%
EU Taxonomy tables
83
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
• EU Taxonomy
E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
2024 – Capital expenditures (CapEx)
Year
Substantial contribution criteria
DNSH criteria
(‘Does Not Significantly Harm’)
ECONOMIC ACTIVITIES (1)
Code (2)
CapEx (3)
Proportion of CapEx (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of
Taxonomy
aligned
(A.1.) or
-eligible
(A.2.)
Capex, year
N-1 (18)
Category
enabling
activity
(19)
Category
transitional
activity
(20)
SEK M
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of energy efficiency equipment for buildings
CCM 3.5
E
Capex of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activites (not Taxonomy-aligned activities)
EL
Manufacture of energy efficiency equipment for buildings
CCM 3.5
814
10%
10%
2%
Capex of Taxonomy-eligible but not environmentally sustainable activites (not Taxonomy-aligned activities) (A.2)
CCM 3.5
814
10%
10%
Capex of Taxonomy-eligible activities (A.1+A.2)
814
10%
10%
2%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of Taxonomy-non-eligible activities (B)
7,422
90%
Total
8,236
100%
84
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
• EU Taxonomy
E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
2024 – Operational Expenditure (OpEx)
Year
Substantial contribution criteria
DNSH criteria
(‘Does Not Significantly Harm’)
ECONOMIC ACTIVITIES (1)
Code (2)
OpEx (3)
Proportion of OpEx (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of
Taxonomy
aligned
(A.1.) or
-eligible
(A.2.)
Opex, year
N-1 (18)
Category
enabling
activity
(19)
Category
transitional
activity
(20)
SEK M
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of energy efficiency equipment for buildings
CCM 3.5
E
Opex of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activites (not Taxonomy-aligned activities)
EL
Manufacture of energy efficiency equipment for buildings
CCM 3.5
145
2%
2%
2%
Opex of Taxonomy-eligible but not environmentally sustainable activites (not Taxonomy-aligned activities) (A.2)
CCM 3.5
145
2%
2%
Opex of Taxonomy-eligible activities (A.1+A.2)
145
2%
2%
2%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex of Taxonomy-non-eligible activities (B)
7,081
98%
Total
7,226
100%
85
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Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
• E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
ASSA ABLOY Scope 1 & 2 emissions reduction waterfall
Our 4-pronged strategic approach to achieving a 50 percent reduction by 2030
CO2 eq (kTons)
323
2019
Baseline
MFP
(Manufacturing
Footprint Program)
Industrial CO2
elimination
Strategic sites
energy overhaul
Continuous
improvement
2030
Target state
161
MFP (Manufacturing Footprint Program)
Growth through acquisitions can result in a duplication of production processes.
Our MFP program consolidates sites to eliminate unnecessary duplication and
maximizes our operational efficiency.
Industrial CO2 elimination
In the past, a limited number of sites used freon as a blowing agent in the door
insulation process. Freon is a potent source of greenhouse gas emissions. By
eliminating the use of Freon in our operations, we have dramatically reduced
our Scope 1 emissions.
Strategic sites energy overhaul
ASSA ABLOY operates over 1,000 sites in 70 countries. The top 25 most energy-
intensive sites account for more than 60 percent of Scope 1 & 2 emissions.
Our workstream focuses on improving energy effectiveness and efficiency to
significantly reduce the energy consumption of these sites.
Continuous improvement
In our revised Operational Excellence strategy, sustainability is one of the four
key pillars. Sustainability is a key part of our global operational excellence
maturity assessment, ensuring a focus on sustainability, and energy reduction
is an organic part of how we operate every day. This results in hundreds of little
ideas for improvement, which add up to a big impact.
1
3
2
4
Visualizing our Scope 1 & 2 emissions reduction pathway
We use a standardized approach to identify and visualize the key levers required to enable the Group to achieve its 50 percent Scope 1 &
2 reduction target to 2030. The four-pronged strategic approach is replicated in all divisions, all business units and at the factory level. This
standardized approach is applied throughout the Group and tracked on a quarterly basis, ensuring we are on track to achieving our climate
targets. The investments needed to realize this plan are related to lever three and four. We do not have a separate investment vehicle to
realize the plan, all investments are made through our capital expenditure process and follow the same rules as all other capital investments.
Due to difference in the definition of CapEx and OpEx between EU Taxonomy and our financial statements, and the fact all capital invest
ments must follow the same rules, our financial statement CapEx and OpEx does not tally with investments in carbon improvements.
–50%
Due diligence
Cease, prevent
or mitigate
ASSA ABLOY has made a long-term commitment to
address climate change by setting both near-term
and net-zero science-based targets consistent with
the Science Based Targets initiative. Our targets are
aligned to a 1.5°C trajectory, the most ambitious aims
of the Paris Agreement.
We are fully committed to delivering on our am
bitious science-based targets, to halve our absolute
Scope 1 & 2 carbon emissions and reduce absolute
Scope 3 emissions by 28 percent by 2030, as well as
achieving net-zero no later than 2050. Our four-
pronged strategic approach to Scope 1 & 2 emissions
is delivering positive results. We have reduced our
Scope 1 & 2 emissions by 36 percent, against our
2019 baseline. We have reduced our Scope 3 emis
sions by 10 percent, against our 2019 baseline.
Our Scope 3 emissions make up the vast majority
of our total emissions and represent the carbon
footprint of our wider value chain. Our Scope 3 target
is challenging. To address this, we have assembled
cross-functional science-based targets teams who
are dedicated to driving the most important activities
in our Scope 3 action plan to deliver on our targets.
We have set up a science-based targets governance
structure, which includes our Chief Financial Officer,
to ensure we are on the right path to achieving our
goals. Our environmental sustainability policy is
aligned with our climate commitment.
There are potential locked-in greenhouse gas
emissions in our own operations in the form of our
operations infrastructure such as heating, ventilation
and air conditioning (HVAC) systems, space heating
equipment, compressors, transformers, heating and
electrical process equipment. When this plant comes
E1 Climate Change
1
2
3
4
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High level approach to reduce Scope 3 emissions by 28% by 2030
During 2024, we identified key levers to reduce emissions and help meet our Scope 3 target. We engage in
value analysis/value engineering in product development to increase material effectiveness, choose low-car
bon materials for our new products as much as possible, and prioritize the use of low-carbon transport and
logistics. Together, these help us to develop energy-efficient products and solutions with a lower carbon
footprint throughout their lifecycle compared with their predecessors.
to its end of life, we will work to upgrade with low-
carbon and increased energy efficiency alternatives to
mitigate future locked-in emissions.
We calculated our greenhouse gas inventory across
our entire value chain for the first time, including our
Scope 3 footprint, in 2022. Our Scope 3 footprint
makes up 96 percent of our total footprint. More than
70 percent of our Scope 3 footprint is upstream in
our supply chain, coming from purchased goods and
materials. Some of our largest purchasing categories,
which include steel, electronics, aluminum, brass,
zinc and other metals and materials, are traditionally
carbon intensive.
This year we have made a significant change to our
calculation methodology, moving from spend-based
to a mix of spend-based method and average-data
method, predominantly item weight data, but also
material information. We have also expanded the list
of possible materials from 20 to 190. Materials used
more seldom may only appear once in this list, but for
common materials like steel, we have many different
types of steel, many different geographies for the
origin of the material, all with individual emission fac
tors. Further, the emission factors have been revised.
In general, the methodology is that we use item
quantity multiplied with item weight multiplied with
the emission factor for the material in scope. If either
the item weight and/or the material is unknown, we
have methods to estimate these. Weight is estimated
using a median value for the weight of other items
within the same item category and the material is
estimated by applying a default material, which we
have done for all our category codes. These default
materials are the most conservative option, meaning
the one with the highest emission factor of the rele
vant options, available, in order not to underestimate.
For the spend-based component, that we still use if
we don’t know the item weight, we have a much larg
er sample size, causing the conversion factors to be
far more accurate than in the past. All these changes
combined have led to significantly lower numbers
than we have presented before. It is, however, worth
ASSA ABLOY Scope 3 emissions reduction waterfall
Our 4-pronged strategic approach to achieving a 28 percent reduction by 2030
CO2 eq (MTons)
5,593
2019
Baseline
Supply Chain
Decarbonization
Sustainable
Innovation
Value Analysis
Value Engineering
Logistics
2030
Target state
–28%
4,027
1
2
3
4
Supply Chain Decarbonization
Our supply chain is the most material source of our Scope 3 emissions. We
work systematically with our supply chain partners to identify and implement
effective initiatives to reduce our Scope 3 footprint, such as sourcing materials
with higher recycled content or low-carbon alternatives. In addition, we support
them to reduce their Scope 1 & 2 emissions, which has a knock-on benefit for
our Scope 3 footprint.
Sustainable Innovation
All new products and solutions are developed using our Sustainability Compass,
which ensures sustainability is embedded into all new products launched. We
have developed a sustainability portfolio planning tool, which enables our pro
duct management teams to have a targeted approach to driving improvements
on the most carbon intensive product portfolios couple with the highest sales
volumes.
Value Analysis / Value Engineering
Value analysis / value engineering is a mature continuous improvement process
that enables us to design waste out of our product and manufacturing processes.
We leverage this process to do more with less, reducing waste and lowering our
products’ greenhouse gas emissions footprint.
Logistics
We work with our logistics partners to optimize both inbound and outbound
transport, enabling us to service our customers in a faster way while reducing
our Scope 3 footprint. We prioritize low-carbon transport methods such as sea,
rail and road.
1
3
2
4
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
• E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
87
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emphasizing that almost the entire reduction is due
to a change in methodology and not actual reduc
tions.
Further, it is important to understand that the
methodology is, despite being far more accurate than
previously, still based on assumptions and simplifi
cations in certain places and the emissions may still
go up or down when even more accurate data will
be available. Another important aspect to raise is the
fact that even if we base the emission calculation on
actual item weight or actual material information,
this information is often not verified and could theo
retically be incorrect. We believe our suppliers have a
thorough understanding and correct data regarding
the items they sell to us.
Although we use a science-based and data driven
approach, there is a degree of uncertainty where
estimates are utilized. This presents a risk to the ac
curacy of our Scope 3 footprint. We are continuously
working to improve our data accuracy across our
Scope 3 categories, while benchmarking with other
complex organizations. We will also stay abreast of
the development of the new GHG Protocol Scope 3
carbon accounting standard, which is due for release
in 2026, to ensure our methodology is aligned.
ASSA ABLOY has included 100 percent of subsidi
aries' emissions under operational or financial in the
target boundary, as required per the GHG Protocol
Corporate Standard; which has been verified and
ratified by the Science Based Targets initiative. ASSA
ABLOY does not have any significant joint ventures.
Our Scope 3 data has been restated to include ac
quisitions, where the data is available. Our Scope 1 &
2 data will be restated to include acquisitions during
2025. We anticipate the inclusion of Hardware and
Home Improvement (HHI) will have a material impact
on our baseline across all three emission scopes,
when the data becomes available for us to restate.
We do not anticipate significant risk or impact from
acquisitions made in 2024. Our Scope 1 emissions
are generated from energy burned on site in our
operations such as oil and gas, CO2eq from industrial
processes and fleet emissions.
Reported normalized KPIs are based on cur
rency-neutral monetary values and value added
rather than sales – to minimize the effect of currency
fluctuations and the ongoing restructuring of the
Group. As a result, value added for intensity met
rics is restated each year. By using value added as a
measure, the normalized values are also not affected
by the outsourcing of manufacturing. We believe this
provides a more accurate picture of what is going on
in the Group. Electricity emission factors are based on
data on electricity production for 2010, as published
by the International Energy Agency (IEA, 2012). These
emission factors are used for calculation of emissions
until end of 2016. In 2017 and again in 2024 ASSA
ABLOY updated the emission factors used to calculate
greenhouse gases from electricity consumption. The
emission factors are based on the most recent data
published by the IEA and the International Panel on
Climate Change (IPCC), and are expressed in CO2
equivalents (CO2 eq).
Our transition plan to realize our long-term climate
commitment is approved by the Board of Directors,
our highest governing body with overall responsibility
for sustainability.
Sustainability is part of everything we do and is or
ganically integrated into our overall business strategy;
the transition plan is aligned to our business strategy
and financial plans. The progress towards our transi
tion plan can be seen in our carbon data table E1-6
gross scopes 1, 2, 3 and total GHG emissions on page
89. We have excluded Scope 3 categories that are not
relevant to our organization; for example, upstream/
downstream leased assets, as well as excluding
categories which represent less than 0.2 percent of
Scope 3, for example, capital goods, as approved by
the Science Based Targets initiative. ASSA ABLOY is
not taking any other actions besides that to mitigate
negative effects on the environment and/or affected
communities.
We are working towards using primary data from
suppliers, though to date we do not utilize primary
data. We do not have a carbon pricing scheme at
ASSA ABLOY.
We do not have carbon removal projects in place
and do not utilize carbon credits or offsets. There are
no changes in target and corresponding metrics or
underlying measurement methodologies, significant
assumptions, limitations, sources and adopted pro
cesses to collect data.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
• E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
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Sustainable operations
Energy and carbon emissions
Scope 1 & 2 emissions
2019
2020
2021
2022
2023
20243
t CO2eq
Scope 1 CO2 emissions related to fleet1
29,591
26,423
31,232
32,184
27,864
26,560
Scope 1 Greenhouse gas emission related to substances
in industrial processes4, 5
34,860
1,149
731
1,184
748
680
CO2 emissions related to energy consumption
Location-based reporting:
Scope 1 CO2 emissions related to direct energy consumption2
69,192
61,426
63,067
60,832
60,917
58,237
Scope 2 CO2 emissions related to indirect energy consumption
189,456
178,029
185,684
175,193
174,401
130,314
Total Scope 1 & 2 emissions, Location-based reporting
323,099
267,027
280,714
269,393
263,930
215,790
Market-based reporting:
Scope 1 CO2 emissions related to direct energy consumption2
69,192
61,426
63,067
60,832
60,917
58,237
Scope 2 CO2 emissions related to indirect energy consumption
183,730
165,752
177,990
173,618
171,165
129,124
Total Scope 1 & 2 emissions, Market-based reporting
317,373
254,750
273,020
267,818
260,694
214,600
1 Fleet data is best estimate due to limitation of data. Plan to improve process during 2025.
2 Biogenic emissions are not included in the Scope 1 and 2 disclosure.
3 For comparable units, defined as all legal entities acquired up to (June 30, 2023), excluding HHI. Total location-based greenhouse gas emissions related to
energy consumption for 2024 reached 262,206 metric tons. This figure includes units acquired during the year up to (30 April 2024), with HHI being the
primary contributor to the increase. Total market-based greenhouse gas emissions related to energy consumption for 2024 reached 240,556 metric tons.
This figure includes units acquired during the year up to (30 April 2024), with HHI being the primary contributor to the increase. Emission factors based on
location-based data, and AIB and Green-e for market-based residual emissions for Europe and US respectively. Emission factors for Scope 2 were updated
during the year for 2024, using the latest available emission factors from the International Energy Agency (IEA); where the majority of the reduction between
2023 and 2024 comes from this methodology update
4 Emission factors are based on data published by the United Nations Intergovernmental Panel on Climate Change (IPCC, 2007). This indicator is the CO2 eq sum
measurement of SOx, NOx, HFC-245fa, HCFC-141b, HCFC134a (R134a), CH4, VOCs and CO2.
5 For comparable units. Total calculated CO2 emissions related to substances in industrial processes amounted to 777 metric tons, including units acquired
during the year where data is available.
6 ASSA ABLOY follows the Greenhouse Gas Protocol for carbon accounting across Scopes 1, 2 & 3. We do not carbon account according to ISO 14064. Thirteen
percent of market-based Scope 2 emissions are covered by contractual instruments such as Renewable Energy Certificates (RECs) or Guarantees of Origin
(GoOs). ASSA ABLOY does not purchase unbundled contractual instruments.
E1-5 Energy consumption and mix
2019
2020
2021
2022
2023
20241
Energy consumption and mix
Direct energy
– oil (MWh)
15,054
9,707
9,056
7,620
5,854
4,699
– gas (MWh)
290,130
269,869
283,234
282,454
292,663
280,502
– coal (MWh)
10,093
61
49
–
0
0
– biofuel/biomass (MWh)
9,737
13,786
10,919
5,466
591
911
Total
325,015
293,423
303,258
295,540
299,108
286,111
Indirect energy
– electricity (MWh)
345,248
327,561
346,465
331,901
330,629
331,558
– district heat (MWh)
38,990
32,404
24,717
19,938
18,363
15,150
Total
384,238
359,966
371,182
351,839
348,993
346,708
Total Energy Consumption2
709,253
653,388
674,440
647,379
648,100
632,819
Portion of renewable energy purchased (%)
12.3%
14.3%
20.2%
20.7%
19.6%
19.4%
Portion of renewable energy generated onsite (%)3
1%
Portion of renewable energy generated onsite (MWh)3
6,328
1 For comparable units, defined as all legal entities acquired up to (June 30, 2023), excluding HHI. Total energy consumption for 2024 reached 850,436 MWh.
This figure includes units acquired during the year up to (30 April 2024), with HHI being the primary contributor to the increase.
2 This historical numbers have been adjusted with proforma data for comparable units.
3 Reporting for this data point only started in 2024.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
• E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
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E1-6 gross scopes 1, 2, 3 and total GHG emissions
Retrospective
Milestones and target years
2019
2023
2024
2024 vs. 2023 (%)
2025
2030
(2050)
Annual % target /
Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2eq)
133643
89529
85476
–4.5%
100,206
72,341
13,364
4.17%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)
–
–
–
–
–
–
–
–
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2eq)
189,456
174,401
130,314
–25.3%
142,054
102,553
18,946
4.17%
Gross market-based Scope 2 GHG emissions (tCO2eq)
183,730
171,165
129,124
–24.6%
137,761
99,453
18,373
4.17%
Significant scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO2eq)1
5,592,879
5,203,980
5,045,014
–3.1%
4,738,693
4,026,873
559,288
2.54%5
1 Purchased goods and services2
4,152,197
3,894,411
3,763,353
–3.4%
3,518,043
2,989,582
415,220
2.54%5
[Optional sub-category: Cloud computing and data center services]
–
–
–
–
–
–
–
–
2 Capital goods
–
–
–
–
–
–
–
–
3 Fuel and energy-related Activities (not included in Scope 1 or Scope 2)
58,167
55,793
54,808
–1.8%
49,284
41,881
5,817
2.54%5
4 Upstream transportation and distribution
65,489
69,800
100,879
44.5%
55,487
47,152
6,549
2.54%5
5 Waste generated in operations
24,395
23,355
23,249
–0.5%
20,669
17,565
2,440
2.54%5
6 Business travel
25,217
30,792
30,903
0.4%
21,366
18,156
2,522
2.54%5
7 Employee commuting
42,061
49,063
54,298
10.7%
35,637
30,284
4,206
2.54%5
8 Upstream leased assets
–
–
–
–
–
–
–
–
9 Downstream transportation
85,379
89,505
129,883
45.1%
72,339
61,473
8,538
2.54%5
10 Processing of sold products
–
–
–
–
–
–
–
–
11 Use of sold products3
986,187
834,907
665,062
–20.3%
835,569
710,055
98,619
2.54%5
12 End-of-life treatment of sold products4
153,785
156,355
222,578
42.4%
130,298
110,725
15,379
2.54%5
13 Downstream leased assets
–
–
–
–
–
–
–
–
14 Franchises
–
–
–
–
–
–
–
–
15 Investments
–
–
–
–
–
–
–
–
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)
5,915,978
5,467910
5,260,804
–3.8%
Total GHG emissions (market-based) (tCO2eq)
5,910,252
5,464,675
5,259,615
–3.8%
1 Scope 3 data has been restated to include acquisitions, where the data is available.
2 Purchased goods and services has been recalculated in a significant way moving from only using the spend-based method to both spend-based and average-data method, with more granular assessment of materials and more accurate emission factors. Previous 2023 value 15,240,417 tCO2eq.
3 Use of sold products has been recalculated due to an error identified in the grid energy mix emissions factor used for the US, applies 2019–2023.
4 End of Life Treatment of Sold Products has been recalculated due to an error found in the formula used in previous years.
5 Near-term Scope 3 target is aligned to well-below 2°C, annual target reduction rate will increase in line with ASSA ABLOY's net-zero target requirements from 2030.
GHG intensity per net revenue
2023
2024
2024 vs. 2023
(%)
Total GHG emissions (location-based) per net revenue (tCO2eq/Monetary unit)
42.04
36.41
–13.4%
Total GHG emissions (market-based) per net revenue (tCO2eq/Monetary unit)
42.00
36.39
–13.4%
GHG intensity
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
• E1 Climate change
E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
E1 Climate change
• E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
Due diligence
Cease, prevent
or mitigate
Minimizing our environmental footprint in terms of
water and marine resources, across our own opera
tions and the entire value chain, is an integral part of
ASSA ABLOY’s sustainability program.
We identified water and marine resources as mate
rial for ASSA ABLOY, considering impact materiality.
We assessed this based on our own operations and
our value chain. For our own operations we have a
process to determine our dependencies, impacts,
risks and opportunities. We do not have water-inten
sive processes in areas with low water quality, which
may jeopardize the quality of our products. We have a
systematic process in place to mitigate the environ
mental impact and water risk of our operations in
high water-stress areas and downstream value chain.
Use of water is seen as material regarding our own
operations, but does not impact on oceans and seas.
We take necessary steps to make sure the water we
use and dispose to the municipalities from our opera
tional processes such as painting, plating and cleaning
is of the same quality level as water withdrawn it to
mitigate any potential negative impact and risk to
water bodies.
The double materiality assessment outcomes,
including water and marine resources, have been
presented and consulted with our Board of Directors,
stakeholders and other affected communities to
engage them in the process and establish their views.
Suggestions, opinions and comments regarding
water and marine resources were taken into account
in the final double materiality assessment.
We continue to upgrade the infrastructure at our
sites e.g. piping, additional meters to reduce leaks
and implement monitoring systems at top water
consuming sites, as well as introducing principles and
processes to improve water efficiency. During 2024,
water withdrawal decreased by two percent and
water intensity by ten percent as a result of improve
ment activities and infrastructure upgrades.
Considering our own operations, the most
water-intensive processes are the painting, plating
and cleaning processes. There are 20 such entities,
located mainly in the US, Europe and Asia, accounting
for more than 60 percent of our total water consump
tion. In factories with electroplating facilities, the
water is used in the different process baths as well as
for cleaning. In factories producing doors, the water
is typically used for cleaning. An increasing portion
of the water is recirculated and used again after
purification. A wide range of purification methods are
used across the Group, such as filtration, sedimenta
tion, flocculation, ion exchange and reverse osmosis.
The actions we take to improve our water efficiency
and reduce consumption are applicable for each site
which operates within the ASSA ABLOY Group in
cluding entities located in areas at water risk. In 2024
the total amount of recycled water amounted to 19
percent of the total water consumption.
An important part of our water management
is to prevent water pollution across our sites. We
are obliged to follow the local laws and the Group
policy, to conduct regular audits and host third-party
inspections. All entities across the Group are required
to report known or potential site contamination map
ping on an annual basis in our sustainability reporting
system. The outcome of the report is being reviewed
by a third party and relevant actions including
remediations regarding historical contamination are
being implemented and followed up. Site contami
nation verification is also a part of our due diligence
process in regard to new acquisitions. We ensure that
any work with hazardous substances is organized
to the highest standards, with wastewater being
regularly disposed of and stored in designated areas,
and secondary containment provided to contain and
control potential spills. Risk mitigation in our own
operations includes work to ensure that all factories
with significant environmental impact and significant
water-demanding processes are ISO 14001 certified.
In the event that we do have a chemical spill, we
have all the requisite equipment in place and spill
kit to perform a cleanup immediately to remedy the
incident. In the event the groundwater or local water
body is contaminated, we will liaise with the relevant
authorities to agree a remediation plan to remedy the
contamination to the local legal level at a minimum.
ASSA ABLOY’s long-term risk-management strategy
covers sustainability aspects throughout our value
chain, including water and marine resources. Within
our supply chain, we carry out the same assessment
as for our own operations. We review our suppliers’
production processes, taking into account environ
mental dependencies, impacts, risks and opportuni
ties. We ensure our suppliers have the same diligent
controls as we do in our own operations.
Our target is to reduce water consumption by 25
percent across all entities we operate in by the end
of 2025, against our 2019 baseline year. Since we set
up the target in 2020 there are no changes regarding
measurement methodologies, significant assump
tions, limitations, sources or adopted processes in
data collection. The target is not mandatory based
on legislation, but it is mandatory internally, which
means all the divisions are required to contribute to
realize the target. In 2024, against our baseline year
2019, we reduced our water intensity by 56 percent.
For reference, please see the double materiality
assessment results (pages 68–72) and material
sustainability-related impacts and risks (E3 Water and
Marine Resources).
E3 Water and Marine Resources
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Water
balance
Total
water
withdrawal
(1,000 m3):
1,261
Total water
discharge
(1,000 m3):
1,2613
Whereof, total
water discharge
in areas of water
stress 194
(1,000m3)4
Other recipients untreated (4.7%)2
Other recipients pretreated (2.4%)1
Municipal untreated (38.0%)1
Municipal pretreated (54.9%)1
Water from local wells (3.1%)
Water purchased (96.3%)
Water withdrawal
Water usage
Water discharge
Sanitary and drinking (37.4%)
Industrial processes (51.6%)
Cooling (5.2%)
Other (5.8%)
Recirculated (19.5%)
Rain and surface water (0.6%)
¹ Third-party water. ² Surface water. 3 Other water (>1,000 mg/L Total Dissolved Solids).
4 Water discharge to areas with water stress based on World Resources Institute ‘Aqueduct Water Risk Atlas’
0
10
20
30
40
50
25
24
23
22
21
20
19
m3/SEK M
56%
2025 TARGET
DEVELOPMENT 2019–2024
COMMENTS ON 2024 VS. 2023
Water intensity
(m3/SEK M)
25%
Water intensity reduced by 10% in 2024.
This stemmed from ongoing efforts to
enhance water efficiency across the
Group and continued improvements in
water infrastructure.
Performance against targets
Due diligence
Track
2019
2020
2021
2022
2023
2024
Purchased water (1,000 m³)
1,692
1,521
1,398
1,280
1,236
1,214
Water from on-site wells (1,000 m³)
210
117
110
86
40
40
Rainwater (1,000 m³)
9
9
10
11
9
8
Surface water (1,000 m³)
0
0
0
0
0
0
Total water withdrawal (1,000 m³)2
1,911
1,647
1,517
1,377
1,285
1,2611
KPI, water intensity (m³/SEK M)2
42.2
37.5
30.9
25.1
20.8
18,81
¹ For comparable units, defined as all legal entities acquired up to (June 30, 2023), excluding HHI. Total water consumption for 2024 reached 2,121
(1,000 m3). This figure includes units acquired during the year up to (30 April 2024), with HHI being the primary contributor to the increase; while
the balance of acquisitions have a negligible impact.
² The historical numbers have been adjusted with proforma data for comparable units.
Water management
Water performance
Water withdrawl
m3
%
Purchased water
1,214
96%
Water from on-site wells
40
3%
Rainwater
8
1%
Surface water
0
0%
Total
1,261
Water usage
m3
%
Sanitary and drinking
472
37%
Cooling
66
5%
Industrial processes
651
52%
Other
73
6%
Total
1,261
Water discharge
m3
%
Municipal pretreated
692.1
55%
Municipal untreated
479.6
38%
Other recipient pretreated
30.5
2%
Other recipient untreated
59.0
5%
Total
1,261
Total water consumption in areas
of water stress (1,000 m3)1
¹ Water withdrawal = usage = discharge.
Water balance1
We do not currently collect the data for the water
storage and do not monitor water storage changes
e.g. sprinklers, firefighting purposes, rainwater har
vesting etc. In 2025 we are planning to add additional
data points to our sustainability reporting system to
be able to disclose the data.
Our sustainability reporting system collects
high-quality data to track and analyze the perfor
mance of individual entities and divisions. Water
withdrawal and discharge is managed in accordance
with local rules and regulations. Water discharge is
measured, calculated or estimated depending on
available sources of information and requirements.
Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
E1 Climate change
• E3 Water and marine resources
E5 Resource use and circular economy
Social information
Governance information
Financial statements
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Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
E1 Climate change
E3 Water and marine resources
• E5 Resource use and circular economy
Social information
Governance information
Financial statements
Due diligence
Cease, prevent
or mitigate
The purpose of a circular economy is to ensure that
resources and products stay in closed loops of usage
that eliminate waste, rather than eventually ending
up in landfill. Utilizing circular practices to optimize
resource management is a key strategy to reduce the
environmental impact of our products.
Typically, a significant share of greenhouse gas
emissions from a product’s lifecycle is derived from
material extraction. The impact is allocated to the
primary product usage. We see a trend that demand
for sustainable solutions is increasing, and that more
customers are eager to embrace circular options.
Some customers are willing to pay a premium price
for circular products.
The most effective resource management strategy
involves maximizing utilization and the product’s
longevity. We believe that sustainable design prac
tices and design for repairability and durability, with
high-quality components and regular service and
maintenance is the best option for extended life ex
pectancy of our products. Our approach to circularity
also includes more advanced strategies like reuse,
refurbishment, remanufacturing and increasing the
share of recycled materials and parts. We believe that
the processes, tools and methods that are covered
later in this section cover all vital steps in the value
chain so that we can eliminate the risk of sharing in
accurate data. If a person is harmed, nearly harmed or
assets are damaged due to a product failure, we have
the requisite knowledge and infrastructure to carry
out a product recall to investigate the root cause and
take the necessary steps to remediate the issue. This
ensures there will not be a repeated instance and the
product can be used safely.
Circularity will be a key enabler for reaching our
sustainability goals and will help drive progress to
wards the 2030 goal of 28 percent reduction of Scope
3 carbon footprint in absolute values from 2019
baseline. To reach our 2050 net-zero goal, it will be
fundamental to have adopted circular practices.
Upstream – resource inflows
We source material and components based on
low Global Warming Potential (GWP), as well as on
high grade of recycled content. We utilize the same
environmental data sets for our internal develop
ment phase as we do when sourcing material and
components. This simplifies calculations and allows
us to steer sustainability optimization throughout
the life cycle of a product. During 2025 we will build
up the measures for recycled content in our internal
systems to support reporting and awareness which is
currently not possible for either products, material or
packaging material.
Going forward, our environmental data will be
made more granular thanks to Environmental Product
Declaration (EPD) based data for our most developed
suppliers.
ASSA ABLOY does not currently collect data
regarding the absolute weight of secondary reused
or recycled components, secondary intermediary
products and secondary materials used. For the total
weight of products, the technical and biological
materials used during the reporting period is 745,000
tons and divided between technical 99.97 percent
and biological 0.03 percent.
Our operations
We utilize a sustainability reporting platform to col
lect data related to waste management, energy con
sumption and material usage. In circumstances where
we lack actual data, we make calculations with proxy
data, based on average figures for similar sites in
our organization. Waste data from our twelve waste
streams, disclosed on page 93 waste management ta
ble, is obtained directly from our waste management
providers. In our operations ASSA ABLOY employs
advanced manufacturing methodologies such as lean
manufacturing, value analysis and value engineering,
and error-proofing techniques such as poka yoke to
minimize waste generation and maximize resource
efficiency. ASSA ABLOY has targets to 2025 compared
to baseline year 2019 to reduce non-hazardous waste
and hazardous waste intensity by 25 percent. During
2024 non-hazardous waste intensity reduced by eight
percent, while hazardous waste intensity reduced by
five percent. The targets are related to layer one in
the waste hierarchy, prevention and minimization.
The targets are not required by legislation. We do not
currently have targets related to increase of circular
product design, increase of circular material use rate,
minimization of primary raw material, sustainable
sourcing and use. ASSA ABLOY does not have the
information to determine materials sourced from
by-products or waste streams. Metal for recycling is
our single largest waste stream. ASSA ABLOY does not
generate radioactive waste.
Innovation
Our handbook for circular economy practices gives
guidance and recommendations on how to make
circularity an integral part of our product innovation
process.
Pa
ck
ag
in
g
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w
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er
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se
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se
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ce
E5 Resource Use and Circular Economy
ASSA ABLOY Sustainability Compass
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ASSA ABLOY | ANNUAL REPORT 2024
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Non-hazardous waste – disposal method
Hazardous waste – disposal method
Recycling/incineration, 54%
Landfill, 46%
Recycling, 6%
Waste to be processed and
disposed by authorized
companies, 94%
Recycled metal
2019
2020
2021
2022
2023
20241
Waste metal for recycling (metric tons)
57,363
54,614
57,606
54,240
56,286
55,477
1 For comparable units, defined as all legal entities acquired up to (June 30, 2023), excluding HHI. Total amount of metal for recycling amounted to
74,381 tons. This figure includes units acquired during the year up to (30 April 2024), with HHI being the primary contributor to the increase.
Hazardous waste
2019
2020
2021
2022
2023
2024
Metal sludge (metric tons)
914
704
936
809
600
740
Oil for recycling (metric tons)
331
244
232
193
191
193
Electrical and electronic waste (metric tons)
89
118
137
129
171
154
Other types of toxic waste (metric tons)
2,724
2,405
2,310
2,489
2,393
2,382
Total hazardous waste (metric tons)
4,058
3,471
3,615
3,619
3,355
3,4701
KPI, hazardous waste intensity (kg/SEK M)
90
79
74
66
54
52
1 For comparable units, defined as all legal entities acquired up to (June 30, 2023), excluding HHI. Total amount of hazardous waste was 5,189 metric
tons. This figure includes units acquired during the year up to (30 April 2024), with HHI being the primary contributor to the increase.
Waste management
Non-hazardous waste
2019
2020
2021
2022
2023
2024
Household incinerated/recycled (metric tons)
2,762
2,660
3,302
3,490
4,086
4,216
Household deposited (metric tons)
10,341
9,797
11,470
11,139
10,362
9,965
Paper and cardboard for recycling (metric tons)
4,523
4,326
4,839
4,915
4,278
4,487
Plastic waste for recycling (metric tons)
869
855
1,364
1,435
1,540
1,350
Wood waste for recycling (metric tons)
5,061
4,194
4,082
3,788
4,037
4,317
Glass for recycling (metric tons)
236
144
210
178
230
207
Other types of waste (metric tons)
1,519
1,329
2,091
1,886
2,093
2,251
Total (metric tons)
25,310
23,305
27,358
26,832
26,626
26,7921
KPI, non-hazardous waste intensity (kg/SEK M)
559
530
557
490
432
399
1 For comparable units, defined as all legal entities acquired up to (June 30, 2023), excluding HHI. Total amount of non-hazardous waste was 33,970
metric tons. This figure includes units acquired during the year up to (30 April 2024), with HHI being the primary contributor to the increase.
Due diligence
Track
The ASSA ABLOY Sustainability Compass visualizes
sustainability aspects in every new project. The Sus
tainability Compass is our own sustainable innovation
tool, based on lifecycle thinking and circularity prin
ciples. It helps minimize footprint, create awareness,
and offer the ability to easily compare the sustaina
bility implications of different designs. Durability of
our products is both calculated and tested during
development and then incorporated into our manu
als. Since we develop so many products, we will not
disclose this here on product basis. In many cases the
durability is driven from regulations and thereby we
follow the industry standard. The Sustainability Com
pass supports circularity in development with the
sections of reuse, recycled content and recyclability
that ensures that we from the start design products
with circularity in mind.
Meeting the challenges of transitioning to a
circular economy
As a company where linear operations have been the
norm, introducing circular practices calls for an ad
justment of procedures related to logistics, repair and
testing. To maintain the level of safety and security
compliance we will test our products after installation
to ensure intended operation and compliance with
standards like the CE marking. If any issues occur with
the products, we follow the procedures described in
ESRS S4 Consumers and End-Users.
Transitioning to a circular economy also requires a
sufficient and reliable inflow of products and compo
nents to our circularity repair centers to ensure that
we can satisfy market demand.
We will have to further improve the quality of
sustainability related data in our entire value chain
as new and more strict regulations are published. In
turn, this implies new requirements for our internal
data governance process, for both linear and circular
products.
Plans and actions to implement circularity
at ASSA ABLOY
The transformation to circular economy will be an
iterative process where we first document internal
best practice from the sites where we currently
apply circular business models. Based on these best
practices, we will develop our circularity strategy that
will define the basis and starting point for our circular
journey. This will also clarify resource allocation, and
the funding needed going forward.
Our approach will be guided by newly developed
circular economy standards like ISO 59004, ISO
59010 and ISO 59020. Offering core principles and
actionable steps, these new standards include assess
ing circularity performance as well as guides on how
to implement circular business models. Circularity
will not be a universal process for all products, but
rather a modular, and customizable approach. As an
example, we expect that some entities will target
recyclability, while others will focus on supporting
customers with refurbished parts and components.
ASSA ABLOY has joined a circularity development
program, a collaborative effort aimed at accelerat
ing the implementation of circular products in the
construction industry. Driven by external experts and
connecting us with construction industry peers, the
program conducts in-depth sharing in focus areas and
provides best practices. Based on these insights with
internal stakeholders, we will further develop our
policy, strategies, and measurements for circularity
during 2025 and onwards. ASSA ABLOY does not have
a circular economy policy; this will be developed
during 2025.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
EU Taxonomy
E1 Climate change
E3 Water and marine resources
• E5 Resource use and circular economy
Social information
Governance information
Financial statements
94
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
• S1 Own workforce
S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Social information
Due diligence
Cease, prevent
or mitigate
Human rights and engagement
In the Code of Conduct, we have committed to re
spect human rights; making sure that our employees
are treated with respect and fairness, and upholding
high ethical standards in our operations. Our code of
conduct addresses forced or bonded labor, children
and young workers, prisoners and illegal workers. All
our employees and non-employees (as defined in
the ESRS) in our operations need to comply with that
commitment as described in the Code of Conduct
and the people, safety and human rights policy that
is based on International Labor Organization (ILO)
conventions and OECD guidelines.
During 2024 we updated our people and safety
policy and to emphasize human rights the policy
was renamed to the people, safety and human rights
policy. The human rights section was expanded; the
policy was also made public.
Our internal control includes relevant controls on
human rights, and we conduct third-party social com
pliance audits at select locations every year.
In our own operations we engage our workforce
continuously through the Voice of the Employee sur
vey that is conducted annually. The employee survey
gives us insights if there are any vulnerable groups
that have specific impacts or being marginalized. The
employee survey process includes a debrief session
and triggers improvement activities to all teams
within the organization. ASSA ABLOY is committed to
directly engaging our workforce and workforce rep
resentatives in identifying lessons and improvements
as a result of the company's performance. Through
surveys, consultations, and continuous improvement
programs, we ensure that employee insights are val
ued and integrated into our sustainability initiatives.
This collaborative approach not only enhances our
performance but also strengthens our relationship
with our workforce and fosters a culture of contin
uous improvement. We engage with trade union
representatives from the Board of Directors, where
we have union representatives giving their perspec
tive on decisions, the ASSA ABLOY targets and how
we track against our targets. For our local business,
we have a country coordination network to ensure
consultation is made. ASSA ABLOY do not currently
use quantitative measures to assess the effectiveness
of our processes engaging our own workforce.
The risk that there is forced labor, child labor, and
trafficking in any of our locations is addressed in the
Code of Conduct and monitored through internal
controls, Voice of the Employee and whistle-blowing
process. The main human right-related risk to our em
ployees and non-employees in our operations relates
to health and safety; this is also where most of our
remedy work is focused, for instance when it comes
to rehabilitation, which is also part of our processes.
Any potential human rights or Code of Conduct vio
lations can be reported in multiple ways, from directly
to a manager to our whistle-blower process which is
also available for external parties so that we can take
action. Retaliation against any reporter in good faith
is prohibited in the Code of Conduct. Employees are
trained on the Code of Conduct and ethical business
practices and how to report any violations on a regu
lar basis. With the Voice of the Employee and through
our dialogue with trade unions, we can gain a better
S1 Own Workforce
95
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
• S1 Own workforce
S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
understanding about the current culture, organiza
tion-wide issues and trends, as well how we progress.
The more severe Code of Conduct issues and
Code of Conduct oversight, including effectiveness
of reporting is governed by the ASSA ABLOY Code of
Conduct Committee which is chaired by our Chief
Human Resources Officer and where union represent
atives from the Board of Directors are represented.
Whistleblowing cases are followed up in a tool to be
able to track and monitor the cases. During 2024, 105
cases were reported in the whistleblower tool, no se
vere human-rights incidents were substantiated, and
no incidents of discrimination were substantiated.
ASSA ABLOY do not have a process to capture fines,
penalties and compensation relating to human rights,
discrimination, and harassment issues. ASSA ABLOY is
not aware of any complaints filed to National Contact
Points for OECD Multinational Enterprises.
Health and safety
Our ambition and vision is to be an injury-free
workplace. We continuously improve our work envi
ronment by enhancing our processes and removing
hazards and risks. We identify our risks locally and
also from a Group and divisional perspective. Our
health and safety scope and metrics include both
employees and non-employees under our direct
control. Our health and safety directive describes the
health and safety management system that is based
on ISO45001 that are mandatory for all ASSA ABLOY
units and covers all employees. The health and safety
directive includes the requirement of a yearly internal
or external audit, and it is part of our internal controls.
To succeed, we work with behaviors and attitudes
that collectively form our safety culture, which is
grounded in our values. We build this with engage
ment and involvement through, for example, the roll
out of workshops in our operations, focusing on risks
and behaviors. Our Group-wide health and safety
tool provides us with insights to risks and deeper
insights into trends to further improve the safety of
our people.
This work has helped us reduce our injury rate by
17 percent since 2019. In 2024 our injury rate was
2.5. Typically, our biggest risks are employees who
are working outside our premises with activities that
can range from driving, business travel or work at our
customer sites.
The Group is very active in acquisitions. Often, the
acquired companies exhibit a poorer safety perfor
mance than ASSA ABLOY. To succeed with our safety
agenda, we ensure that acquired companies are
onboard with our health and safety program with the
implementation of the health and safety directive and
activities to establish a safety culture. We typically
see significant improvements once the program is
in place keeping employees and non-employees
of the acquisitions safer than they were before the
acquisition.
As we become more mature from a safety perspec
tive, we are broadening our scope to develop the
well-being aspects in our health and safety agenda.
For example, we have launched mental health first-aid
programs to cater to local needs.
Talent management
Our recruitment and selection directive held by our
Chief Human Resource Officer ensures that we use
best practices when we recruit the candidates with
the right qualifications, skills and experience and
equal employment practices. In 2024 we conducted
multiple workshops on biases to promote non-dis
criminatory recruitment practices in line with the
purpose of our recruitment and selection directive.
We encourage everyone to develop transferable
skills that will allow them to move between roles in
other functions, divisions or countries, with the goal
of increasing seniority, broadening experience or
digging deeper into an area of expertise. In 2024 our
employee turnover was 17.5 percent. The total num
ber of leavers was 9,136 for comparable units, while
10,751 for all units including acquisitions.
Our graduate programs and diversity networks
nurture the next generation of talent and contribute
to a more inclusive future. We provide everyone with
an extensive range of digital courses. Internal lead
ership programs and programs in collaboration with
external partners is also offered. Even with this, we
strongly believe that the best way to learn is on the
job and through stretch assignments that go beyond
one’s present expertise.
Diversity and inclusion
In 2024 we conducted a global inclusion and allyship
awareness campaign that included webinars and
training sessions. We want our people to come
together to discuss topics that matter to them.
Connecting with others increases the awareness of
diversity, equity, inclusion, and belonging-related
challenges and drives positive change.
We are focused on increasing the diversity and
inclusion capabilities of managers and leaders to
build inclusive teams, departments and organizations
so that our products and community will benefit from
our diverse perspectives. We understand that we are
only at the beginning of our diversity and inclusion
journey, and still have work to do to achieve our goals.
We have diversity and inclusion as a part within our
people strategy.
As a global organization, ASSA ABLOY is naturally
diverse. ASSA ABLOY has operations in over 70 coun
tries and serve customers in more than 180 countries.
Our global environment fosters diversity of thought
and inclusive open communication.
We have set specific objectives to make sure we
recruit widely and give people the right opportunities
to succeed. For example, we measure how many of
our senior manager roles are held by women, and this
increases every year. We reached 24 percent in 2019,
29 percent in 2024, and we aim to reach 30 percent
by 2025. To support such efforts, we have an internal
women’s network and encourage a 50-50 gender
balance in our graduate programs.
We take a diverse approach to hiring, being aware
of diversity issues and overcoming biases.
96
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
• S1 Own workforce
S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Data-driven approach
The key metrics are followed-up on a regular
basis, where both the development of the metric
is discussed, and activities carried out to improve
the metric. We share learnings and best practices
between our divisions and business units on activities
that show the effectiveness of improving our metrics
and mitigating risks and impacts. In general, we use
our governance model (Board of Directors, Executive
Team, functional councils) for follow up; but if we
discover specific issues, we are flexible in creating
forums for hot-spot management. Our divisions and
business units may have different focus areas depend
ent on where they have challenges that have been
identified in their data.
We set targets by benchmarking; the health and
safety targets were set against the best performing
industrial companies with similar activities while for
example employee turnover we use benchmarks
from Mercer with a country breakdown. Targets are
set to fulfill our People strategies and policies. Exter
nal targets are typically set with a five year horizon.
We do not have a separate investment vehicle to
realize the targets, all investments are made through
our capital expenditure process and follow the same
rules as all other capital investments.
ASSA ABLOY utilizes temporary workers to manage
various operational needs effectively. Temporary em
ployment allows the company to address fluctuations
in workload, cover for permanent employees who
may be on leave, and bring in specialized skills for
short-term projects. This approach provides flexibility
in workforce management, ensuring that the com
pany can maintain productivity and meet business
demands without the long-term commitment of
permanent hires.
S 1-6 Number of employees per country, data is
disclosed in Note 35 of the financial statement; there
is no data available for table Employees by contract
type, broken down by gender due to limitation of
0
1
2
3
4
25
24
23
22
21
20
19
Injury rate
0
20
40
60
80
25
24
23
22
21
20
19
Injury lost day rate
0
10
20
30
40
25
24
23
22
21
20
19
%
-17%
-2%
5p.p
2025 TARGET
DEVELOPMENT 2019–2024
COMMENTS ON 2024 VS. 2023
Injury rate (number
of injuries per million
hours worked)
33%
Our injury rate remained flat in 2024.
2025 TARGET
2025 TARGET
DEVELOPMENT 2019–2024
DEVELOPMENT 2019–2024
COMMENTS ON 2024 VS. 2023
COMMENTS ON 2024 VS. 2023
Injury lost day rate
(number of lost days
related to injuries per
million hours worked)
Gender diversity
(% of females in
management positions)
33%
30%
Our injury lost day rate remained flat in
2024.
Diversity and inclusion is a key focus for
the Group. The portion of females in
management positions increased to 29%
in 2024.
Due diligence
Track
data. There is no data available for 2024 S1-7, S1-8,
S1-10,S1-11, S1-12, S1-13, S1-15, S1-16 and S1-14
relating to work related ill-health and total recorda
bles. Lost days has traditionally been reported as lost
working days and we will report both lost days work
ing days and lost days calendar days until 2025 due to
the 2025 target of injury lost (working) day rate.
97
ASSA ABLOY | ANNUAL REPORT 2024
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
• S1 Own workforce
S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Number of employees by employment contract, employment type and gender
Women at different levels of the organization
Employees by contract type, broken down by region
% of total
Permanent
92%
Temporary
8%
Total
100%
Percentage of women
Level, %
2019
2020
2021
2022
2023
2024
2 – reports to CEO
9
9
9
18
18
9%
3 – reports to level 2
21
19
12
11
14
16%
4 – reports to level 3
21
25
25
26
26
27%
5 – reports to level 4
26
28
28
30
30
30%
Level 2–5
24
27
27
29
29
29%
All employees1
29
29
29
30
30
32%
1 Employees are defined as headcount.
2024
Europe
North
America
South
America
Africa
Asia
Pacific
Total
Number of employees
(headcount)1
22,437
17,368
3,335
851
9,884
1,853
55,728
Number of permanent
employees (headcount)1
21,024
16,083
3,031
782
8,233
1,725
50,878
Number of temporary
employees (headcount)1
1,413
1,285
304
69
1,651
128
4,850
1 For comparable units, not including acquisitions made during the year.
Own workforce
Average number of employees by region
Europe, 22,105, 28% women
North America, 21,002, 31% women
South America, 3,507, 33% women
Africa, 856, 41% women
Asia, 13,561, 38% women
Pacific, 1,795, 33% women
Lost days per injury1,2
1 Lost days per injury calculated
as total number of lost days
in relation to total number of
injuries.
2 For comparable units. The
total lost days per injury was
23.5 including units acquired
during the year.
0
5
10
15
20
25
242
23
22
21
20
19
Lost days per injury1,2
Injuries
1 Injury lost day rate in lost days
per million hours worked.
2 Injury rate in injuries per
million hours worked.
3 For comparable units. The
total injury lost day rate was
50.5, total injury rate was
2.2 including units acquired
during the year.
0
25
50
75
100
243
23
22
21
20
19
0
2
4
6
8
Injury lost day rate1,3
Injury rate2,3
Average number of
employees
Number
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
24
23
22
21
20
19
n Women n Men
Health and Safety
20241
Fatalities
1
Lost time injuries
256
Lost days (working days)
5,971
Lost days (calendar days)
8,457
1For comparable units. The total lost time injuries was 270, the total
lost working days was 6,128 and the total lost calendar days was 8,644
including units acquired during the year.
Age distribution of workforce
%
<30 years
14
30–49 years
55
50– years
31
Turnover rate of employees who left the undertaking
%
Total
17.51
1 The number of regular employees who terminated the employment
during the period.
Gender
Number of employees (headcount)1
Male
40,853
Female
19,003
Other
224
Not reported
7
Total Employees
60,087
1 Not comparable to financial statement, headcount defined as acutal
number of people employed at the end of the reporting period.
Gender
Number of
employees
Percentage
Male
134
85
Female
24
15
Other
0
0
Not reported
0
0
1 Reporting level 1–3.
Gender – Top management1
Nationalities – ASSA ABLOY’s management teams
Europe excl. Sweden, 32.9%
Sweden, 8.9%
North America, 36.1%
Asia, 10.1%
Africa and Middle East, 0.6%
South America, 5.7%
Pacific, 5.7%
98
ASSA ABLOY | ANNUAL REPORT 2024
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
S1 Own workforce
• S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
Due diligence
Cease, prevent
or mitigate
Our suppliers must commit to and fulfill the require
ments in the Code of Conduct for Business Partners,
which stipulates what we believe are necessities in
terms of sustainable, legally compliant and fair busi
ness. It covers business ethics, human rights and labor
standards, environment, and health and safety.
This is in line with our people, safety and human
rights policy (see policy matrix) which promotes safe,
equal and fair working conditions and to combat
human rights violations.
The Code of Conduct for Business Partners ap
plies to all partners that provide ASSA ABLOY with
products or services, such as suppliers, consultants,
distributors, agents and other representatives, and
it provides a structured approach to integrating new
acquisitions.
The above means that all workers at upstream tier
1 suppliers are included in the scope. It also applies to
the suppliers’ subcontractors while they are engaging
with ASSA ABLOY. Further, agents, distributors and
similar on the downstream side are also included.
The objective is to cover over 95 percent of all
direct and indirect material suppliers by 2025. By
the end of 2024, 86 percent of all direct material and
indirect spend suppliers had signed the Code of Con
duct for Business Partners, which is an improvement
of 5 percent since 2023. For indirect spend, we are
currently focused on improving the number of signed
Code of Conduct for Business Partners from indirect
suppliers to achieve the same results we deliver with
direct material suppliers.
We also conduct supplier sustainability audits in
identified risk countries on a regular basis. Follow-up
audits depend on the total score and whether there
any particular findings were made that require
measures to be taken. If so, a new audit is needed for
verification. If there are vital gaps, the supplier is at
risk of being put on hold or can be immediately and
permanently prohibited from conducting business
with any ASSA ABLOY entity.
By pursuing a regular audit program like this,
sustainability is always in focus and the supplier is
expected to constantly maintain a high level of per
formance regarding ethics, human rights and health
and safety.
The vulnerable worker groups that the Code of
Conduct for Business Partners particularly focuses
on are children and young workers. It also covers
forced or bonded labor, prisoners and illegal workers.
Parental rights are also covered. The Code of Conduct
for Business Partners states that no discrimination is
tolerated regarding race, ethnicity, nationality, sexual
orientation, gender, religion, age, disabilities, political
views or other factors that could be in scope.
Sustainability audits coverage went from 94 per
cent by spend in 2023 to 92 percent in 2024.
ASSA ABLOY currently does not have any global
framework agreements in place.
Supply chain risk management
Material risks include unethical labor practices like
poor working conditions, inadequate wages, lack of
worker rights, which may lead to reputational dam
age, fines and operational disruptions. Other material
risks are those related to health and safety, causing
injuries and possibly loss of life, and worker well-being
like mental health and work-life balance, which may
impact productivity.
Actions to mitigate such risks include enforcing
our Code of Conduct for Business Partners program,
which outlines our demands and expectations on
how the supplier should act, and our sustainability
audit program, where we regularly conduct audits to
verify the supplier is compliant with what they have
agreed to by signing the Code of Conduct for Business
Partners. We currently do not have any form training
for suppliers, but auditors guide and support individu
al suppliers as part of the audit action plan follow-up.
When necessary, we provide suppliers with informa
tion decks around topics like environment, health and
safety. We currently do not have an incident reporting
system for addressing health and safety incidents at
our suppliers and the situation is the same for worker
well-being. Regarding fair compensation, this is
followed up upon in our sustainability audits.
Tracking the effectiveness of mitigation actions is
primarily done through key metrics as the compliance
rate (share of suppliers that have signed our Code of
Conduct for Business Partners) and audit scores and
ratings. We do not have metrics in place for incident
rates, worker satisfaction or engagement.
We manage supply chain risks and challenges by
continuing to roll out the Code of Conduct for Busi
ness Partners to improve the monitoring of supplier
compliance. The supplier sustainability audit program
complements our Code of Conduct for Business
Partners and focuses on direct material suppliers in
identified risk countries.
ASSA ABLOY uses a model to identify high-risk coun
tries based on publicly available and annually updated
indices covering topics like freedom of expression,
freedom of association, political stability, government
effectiveness, regulatory quality, rule of law, corruption,
human development level and anti-trafficking laws. In
this way we are able to rate every country and define
them as high-risk or low-risk countries. High-risk coun
tries are predominantly found in South and Central
America, Eastern Europe, Africa and Asia. Our list of
high-risk countries covers all countries described as
hotspots for child labor according to the International
Labor Organization and for forced labor according to
the United States Department of State and its Office to
Monitor and Combat Trafficking in Persons.
Our sustainability audits are in place to monitor the
compliance of our suppliers to the requirements of
Code of Conduct for Business Partners, which is refer
ring to our people, safety and human rights policy.
High-risk countries are perceived as being at a higher
risk of not complying with the Code of Conduct for Busi
ness Partners. The list of high-risk countries is reviewed
and updated annually or as needed and based on input
from World Bank Worldwide Governance Indicators
WGI, United Nations Human Development Index HDI,
Transparency International Corruption Perception Index
CPI and the US Department of State Trafficking report.
We conduct our own supplier audits with internally
trained and certified auditors and use due diligence
processes to verify compliance. Each division and
its supplier development manager are responsible
for planning their resources and activities to have
suppliers, corresponding to reaching our target of at
least 95 percent of the total spend in identified risk
countries, audited before the due date of the audit.
All audits are carried out by an ASSA ABLOY auditor
who visits the supplier’s operations and meets
with both management and workers. The auditor
follows an established set of tasks and questions. Any
identified concerns are documented and made clear
in the audit report. Once finished, the audit report
is sent to the supplier, which in turn has to carry out
any corrective actions and report back to the auditor.
The audit reports are stored and available in the ASSA
ABLOY business intelligence tool.
This input is gathered during every audit, which oc
curs every six to 36 months, depending on the score
and rating of the audits; the worse the score the more
frequently we carry out audits and vice versa.
The effectiveness of gathering the workers’ input is
evaluated by looking at the improvement rate during
the following re-audit. It is, however, not something
that we have a numerical metric for.
The efficiency of the action plans and identified
activities can be seen by the evolution of a supplier’s
audit scores and ratings. Poor ratings in several con
secutive audits could be an indicator of inadequate
action plans, but also that the supplier is not willing to
improve for any reason.
However, the above is not common and in most
cases we notice that the suppliers improve their
performance, which can be seen as an indicator of the
S2 Workers in the Value Chain
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efficiency of the audit process.
The entire audit process is a long-term activity to
gradually improve the entire supplier landscape. The
overall audit ratings of suppliers that ASSA ABLOY
has partnered with for a long time indicate that this
is working well. Currently the largest concerns come
from the supply chains of recent acquisitions, where
the ASSA ABLOY audit program has not been applied
at all or only for a limited period of time.
The audits are carried out by our own auditors
and managed by a supplier development function
within each division, and this function reports to the
divisional Procurement Director, who has the overall
responsibility for ensuring that engagement takes
place and that the views of the value chain workers
are being respected. The number of resources for
this topic varies from division to division, but in many
cases it is dozens of auditors and supplier developers
per division.
For the time being, ASSA ABLOY does not have any
Audit process and traffic-light system
Long term
Direct material supplier development and consolidation
Targets and measurements
Mid term
Supplier risk assessment
Ongoing
Sustainability
Supplier quality
Supplier
self-assessment
Exit
Supplier development
Fix
Grow
On-site audits
Scoring principles
Traffic-light system
Follow-up audits
The traffic-light system
We use a traffic-light system to rate individual direct material suppliers on how
they conform to our Code of Conduct for Business Partners. Suppliers are rated on the
following five color-coded system:
Green – The supplier is approved. A re-audit is done after three years to verify com
pliance. Once suppliers achieve a green rating, our focus is on improving the supplier’s
abilities to become even better.
Yellow, orange, and purple – The supplier is approved on the condition that it resolves
the issues identified in a recent audit within an agreed time frame. Yellow signifies the
fewest number of non-conformities and purple the most. A follow-up audit is typically
done after one year.
Red – The supplier has severe sustainability problems, so the immediate focus is
to solve those issues as soon as possible and following this, raise the supplier to an
acceptable level with the help of ASSA ABLOY’s expertise and experience. The supplier
is re-audited after six months. In the interim the supplier is put on “new business hold.”
If the supplier fails to improve during follow-up audits, the supplier is phased out.
Red, yellow, orange and purple statuses can be revised based on evidence of a
corrective action plan, well-documented progress, and firm commitment from the
supplier. Contracts with suppliers may be terminated in the case of a non-compliance
that is not remedied within an agreed time frame. The contract is automatically termi
nated if a supplier is rated ‘red’ for longer than six months.
figures to provide regarding current and future finan
cial, or other, resources allocated to the continued
improvement of the situation for workers in the value
chain.
At ASSA ABLOY, we do not accept any form of re
taliation against someone who speaks up, expressing
concerns or opinions in good faith. This is outlined
in the Code of Conduct for Business Partners and our
whistleblower directive. If whistleblowers choose
to remain anonymous, neither ASSA ABLOY nor our
external online reporting tool provider can track or
identify the reporting individuals.
The supplier is given an audit score based on the
outcome of the report. The score is then converted to
one of five ratings: green, yellow, orange, purple and
red. We have a set of actions based on the rating, de
scribed in the information box above. The robustness
of our auditing program is one key success factor, as
it creates a framework to refer to in situations that
might be difficult to assess properly. One example
of this might be the addition of completely new
supply chains due to ASSA ABLOY’s acquisition-heavy
nature. An auditor might suddenly come across a new
problem, but given the global team of auditors, the
thousands of previously conducted audits, and the
strict rules that apply, we are in a good position to
assess the situation properly.
Supply chain risks and challenges
ASSA ABLOY operates globally, and this is reflected
in our supplier base, which is scattered over large
parts of the world. At ASSA ABLOY, we need to deal
with a variety of local legislation, cultures and ways
of working. According to our business intelligence
audit data, the most common reasons for suppliers’
severe sustainability problems are health and safety,
and environmental issues. Examples of health and
safety issues are unsatisfactory risk documentation,
evacuation drills, or information about how to act in
emergency situations. Inadequate accident statistics,
security objectives or machine safety instructions are
also common deficiencies. These findings primarily
refer to upstream activities as we have much less
insights into the downstream flow. It is reasonable to
believe, based on the value chain flow, that upstream
is more prone to have severe human rights issues and
incidents.
We often find immaterial deviations at many suppli
ers, but the material negative impacts are rare and if
they occur, the supplier gets the chance to remediate
it. ASSA ABLOY strives to improve the supplier’s per
formance and aim to help identify the best solution.
If the supplier does not do this despite significant
efforts from ASSA ABLOY’s side they will eventually be
put on the prohibited list and stopped from further
business with ASSA ABLOY. Severe negative impacts,
like child labor, have been very rare with none to a
couple of cases found each year among close to 9,400
suppliers (excluding recent acquisitions).
If and when any deviation is found, it is noted in
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
S1 Own workforce
• S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
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the audit report, with a necessity for the supplier
to mitigate the problem. What the solution is may
vary, depending on the nature of the problem, but
most often it is related to improve the conditions for
the workers in terms of potential hazards (material,
machines, noise, heavy lifting, etc.).
Some criteria in the audit checklist are of such
significance that they are identified as stoppers, for
example, child labor. We do not tolerate child labor in
our own operations, or among our business partners.
The Code of Conduct for Business Partners does not
accept any form of forced or bonded labor, or illegal
workers. In addition, the code reinforces our support
for the right to freedom of association and collective
bargaining, as well as other working conditions, such
as contracts, working hours and fair salary compen
sation.
If a supplier fails to comply with these labor
standards, they are placed on the list of prohibited
suppliers and their relationship with ASSA ABLOY
is terminated immediately. Other stoppers, such as
forced labor and remuneration that is not aligned
with legislation, results in the supplier being put on
“new-business hold”. If the supplier fails to improve
within an agreed time frame, they are placed on the
list of prohibited suppliers. An increasing number of
stoppers have been added to the auditing process in
recent years, and more are expected in the coming
years as our sustainability measures increase.
The audits carried out at our suppliers aim at identi
fying and mitigating problems or potential problems.
In many cases, this removes or reduces hazards like
dangerous work environments and raises the stand
ards at the supplier site. This can include removing
or modifying processes that could jeopardize the
safety of the workers; requiring proper safety equip
ment; requiring access to emergency exits; limiting
exposure of hazardous materials; reducing noise; and
improving lighting and ergonomics through better
equipment. Such non-conformities with a critical
safety or environmental impact are classified as
major and those are prioritized during action plan fol
low-ups. There are, however, no formal guidelines on
what constitutes major or minor non-conformities,
but this is up to the individual assessor’s judgement.
It can also include working hour management as
well as comfort and equipment at dormitories. All
the above relates primarily to blue-collar workers,
while dormitories and related things outside of the
actual workplace targets workers that are far away
from their home and hence are in a more vulnerable
position.
These activities have a positive impact on all
workers at our suppliers, but in particular blue-collar
workers, including all sub-groups that might have
difficulties attaining these improvements on their
own. Although positive, ASSA ABLOY can put more
emphasis on not only improving things that are not
good enough, but also more on improving things that
are already at a sufficient level from a compliance
point of view.
Apart from our own audits, everyone is able to
submit reports of suspected violations. Any potential
human rights violations can be reported in multiple
ways from direct manager to our whistle blower pro
cess which is also available for external parties.
One of the subsections of the audit protocol
includes instructions to the auditor to look for
evidence of “regular communications and feedback
channels with workers to hear their issues and bring
appropriate resolutions.” It is, however, difficult for
ASSA ABLOY to assess that all value chain workers
are familiar with, and trust, the structures to address
concerns or violations. We currently do not conduct
employee surveys at our suppliers to get additional
insights regarding job satisfaction, safety, equality,
wages or similar and neither do we have formal
feedback channels like anonymous digital platforms
or committees. Instead, we refer to our Whistle
blowing function. Further, we also investigate in our
sustainability audits whether the suppliers have a
whistleblowing program of their own and that their
workers and stakeholders are informed about how to
use it. This step also includes making sure there is an
identity protection scheme in place and verifying that
everything is at an acceptable level in interviews with
supplier employees.
Currently, ASSA ABLOY does not have any out
come-oriented targets related to measuring progress
in number of material negative impacts and/or
advancing positive impacts on value chain workers.
Hence there is also no involvement with value chain
workers in such a target setting, nor is there any
involvement in identifying improvements as a result
of ASSA ABLOY’s performance.
For the same reason, we cannot state a baseline
value or year, or the methodologies and stakeholder
involvement behind the targets and similarly and
changes in targets.
In our sustainability audits we check for forced
labor, but have not had any such cases. We currently
do not have any formal guidelines on compensation
for damages due to forced labor practices. In a similar
way, we have no formal training programs or materi
als we share with suppliers regarding human rights.
In 2023, we updated the trade compliance policy.
The policy and related procedures and guidelines
serve to identify and mitigate risks to avoid involve
ment in activities considered unacceptable by ASSA
ABLOY, our communities and stakeholders. ASSA
ABLOY has thus taken the decision to conduct risk as
sessments of its own operations to identify prevent
able export control and sanctions risks in all direct
and indirect domestic and cross-border trade, and to
prioritize risk mitigating measures and resources to
address risk. For ASSA ABLOY, this means that trade
with a specific supplier could be prohibited if the
party, or its owner(s), is designated in a sanctions list.
The UN, EU, UK, US, and many other regions, impose
different types of economic sanctions. Most sanctions
programs contain lists with names of individuals,
companies, organizations or other entities, and in
most cases, all forms of economic interaction with
such listed parties is prohibited. ASSA ABLOY has im
plemented a procedure and a restricted countries list,
and countries are divided into risk categories of red,
yellow or green. For certain red countries, all trade is
prohibited. For yellow countries there is a screening
procedure, and for green countries all new business
relationships need to be screened. The restricted
country list is updated as and when justified based
on changes in country risk from an export control
or sanctions perspective, and is also periodically
reviewed.
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
S1 Own workforce
• S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
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Key audit findings in 2024
ASSA ABLOY has close to 9,400 external direct
material suppliers (excluding recent acquisitions). By
the end of 2024, 1,158 of the 1,167 suppliers audited
had satisfied our minimum sustainability require
ments – equivalent to 92 percent of our total spend in
identified risk countries.
During 2024 the Group added 487 new suppliers to
the audit scope. During the year, 13 percent of those
new suppliers were audited.
One supplier was added to the list of prohibited
suppliers and prevented from doing business with
us, and 12 were put on “new-business hold” by the
Group, while awaiting re-audit where previously
identified issues should have been handled.
Supply chain management governance
Our supply chain management is led by the Sustaina
bility Procurement Council, which includes represent
atives from each division. The council sets supplier
sustainability targets, coordinates activities and
follows up on progress. Each division is responsible for
ensuring its suppliers meet our requirements. Divisions
submit their supplier audit reports to our business
intelligence tool, which allows us to assess and analyze
the performance of our suppliers. The system is used as
a basis for procurement decisions to identify preferred
suppliers and enables us to monitor several supply
chain key performance indicators (KPIs).
Sustainability risk management:
ASSA ABLOY’s supplier audit program covers sustain
ability aspects throughout our value chain. Our direct
material supplier audit program helps to manage
risks related to suppliers, with a particular focus on
high-risk suppliers. With new acquisitions, we have
established a process that comprehensively reviews
sustainability-related issues to mitigate the risks
associated with integrating new companies and their
supply chains.
Distribution of direct material supplier spend
n Asia, 35.1% (35.8)
n Europe, 24.1% (25.1)
n North America, 36.3% (36.5)
n South America, 1.2% (1.2)
n Oceania, 2.8% (1.1)
n Africa, 0.5% (0.4)
Number
0
200
400
600
800
1,000
1,200
24
23
22
21
20
19
Sustainability audits of direct material suppliers
in identified risk countries
In 2024, ASSA ABLOY
conducted 701 (765)
sustainability audits.
Number of direct material suppliers
Number
0
2,000
4,000
6,000
8,000
10,000
24
23
22
21
20
19
In 2024 we had 9,365
direct material suppliers.
Due diligence
Track
Material KPI
Area
2019
2020
2021
2022
2023
2024
Portion of spend in identified risk countries
represented by sustainability audited direct
material suppliers
97%
91%
86%
93%
94%
92%
Number of sustainability audits of direct material
suppliers in identified risk countries
1,175
940
861
874
765
701
Supply chain management
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
S1 Own workforce
• S2 Workers in the value chain
S4 Consumers and end-users
Governance information
Financial statements
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
S1 Own workforce
S2 Workers in the value chain
• S4 Consumers and end-users
Governance information
Financial statements
Due diligence
Cease, prevent
or mitigate
Every day, we help billions of people move through a saf
er, more open world with ease. The median age globally
is increasing leading to an aging population with impair
ment or disabilities. Accessibility and inclusive product
design is therefore key in ensuring that buildings can
be accessed and used by everyone. The correct design
of a door environment makes a dramatic difference to
individuals with reduced muscle or grip strength, or for
those utilizing a pushchair, or a wheelchair.
Our revolving doors create spacious entrances,
ensures smooth functionality and safe traffic flows
with advanced sensor technology. Side doors are
added for increased accessibility and faster evacua
tion. Our doors can operate at low speeds to ensure
safe passage for those with limited mobility. We also
consider the weight of the door, fittings that can be
easily gripped and reached, visual considerations and
the distance a door needs to be clear of any obstruc
tions when opening.
Governed by the Chief Technology Officer, our
innovation policy mandates customer relevance
and compliance as overarching priorities for all our
products and solutions. The innovation policy does
not reference any other external standard, only
internal standards. There is no human rights policy
related to consumers and end-users. The innovation
policy is not aligned with internationally recognized
instruments. We actively participate in relevant or
ganizations to drive the development of standards in
our industry. Our user and service manuals offer clear
instructions that help customers maintain products
together with support by our service organization
so that durability and longevity can be maximized,
reducing the risk of malfunction, and ensuring safety
and security. Due to this, accidents occur on a low
and individual frequency. We are committed to the
Science Based Targets initiative (SBTi), and we aim to
reduce our Scope 3 carbon footprint by 28 percent by
2030, based on a 2019 baseline.
We utilize regular customer feedback as a basis for
design changes and, depending on severity of issues,
this feedback can result in product recalls or pro
duction halts. Our product development process is
designed to continuously track customer satisfaction
and compliance with standards and regulatory require
ments, to mitigate negative impact on end-users.
Changes to the products are done with the use of
development personnel. Targets related to product
development are for internal steering only and not set
or followed up by customers or end users to keep the
steps of development as our internal property.
Our Voice of the Customer (VOC) program owned
by the Chief Commercial Officer includes the Net Pro
moter Score (NPS) research metric, and all divisions
are expanding their use of the NPS®; supplemented
with qualitative customer experience research. The
result and the base year of calculation is kept only as
internal matrix only. User experience (UX) is another
focus area with several initiatives to improve UX
maturity and leverage design systems across the
Group. Our goal is to improve the customer experi
ence across all touchpoints with our brands, and we
are dedicating resources and directing investments
to better understand our customers’ journeys with
us and to identify opportunities for improvement.
As the VOC covers both technical and commercial
aspects of customer demands, we take a cross-func
tional approach and include product managers, sales,
and marketing teams as well as R&D in the process.
The input from the VoC can be used to explore any
type of questions for example to enable wheelchair
accessibility to building as described in beginning of
this section.
Customers can reach us through our commercial
organizations and online channels if any issues occur
S4 Consumers and End-users
with our products. We adhere to the Code of Conduct
to acknowledge customer input and comply to Gen
eral Data Protection Regulation (GDPR) to ensure safe
handling of personal data. We also facilitate a whis
tle-blower function for anonymous feedback, which
can be accessed through various media such as ASSA
ABLOY’s website. Regarding human rights severe is
sues connected to customers and end consumer refer
to section S1 Own workforce. If our products have a
material impact effecting our customers, we address
the issue promptly and solve this in best possible way
for our customer or end-user. We will not reference
to customer or end user specific material impacts in
the report.
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
• G1 Business conduct
Financial statements
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Sustainability statement | Report of the Board of Directors
Corruption and bribery
Anti-corruption policy
In addition to the Code of Conduct, which covers
a broad scope of business conduct-related topics,
we also have a specific anti-corruption policy which
supplements and builds on the Code of Conduct. This
policy emphasizes a zero-tolerance policy on bribery
and corruption and describes our processes for identi
fying and managing bribery and corruption risks in our
operations. Like all our Group policies, it is approved by
the Board of Directors, and it applies to all employees.
Corruption is fundamentally unethical, leading to
greater inequality, higher cost of doing business and
decreased efficiency. We work actively to prevent
corruption in our business. Our anti-corruption policy
adheres to international standards, consistent with
the UN Convention against Corruption, to prevent,
detect and respond to potential corruption; it is regu
larly evaluated and updated when needed. Key stake
holders include employees, suppliers and business
representatives. Gifts and entertainment, political
and charitable contributions, risk assessments, em
ployee training, conflicts of interest; third-party due
diligence, and reporting are some of its essential com
ponents. Thus, the key stakeholders' interests relating
to our compliance with laws and regulations and our
conducting of our business in an ethically sustainable
manner were considered in our policy decisions.
During 2024 the anti-corruption policy was revised
to further strengthen our ways of working with these
matters.
The anti-corruption policy is available on ASSA
ABLOY’s website, together with the Code of Conduct
and the Code of Conduct for Business Partners and
can be found at: www.assaabloy.com/group/en/
sustainability/sustainability-governance/anti-corrup
tion-compliance.
All relevant ASSA ABLOY employees, including the
Executive Team, receive information on the anti-cor
ruption policy and the Code of Conduct. This is en
sured, for instance, by posting the policies and other
related information on our intranet and mandatory
training requirements as described below.
Anti-corruption risk prevention and detection
In our organization, certain functions and regions
pose elevated risks for corruption and bribery and,
in a risk-based approach, we aim to focus our efforts
accordingly. We conduct business worldwide and
consequently operate in some countries where
corruption risks are perceived to be high, according
to the Corruption Perceptions Index published by
Transparency International. A large part of our sales
is further handled through third parties, such as
distributors, and a substantial part of our anti-cor
ruption work is therefore used to ensure that such
third parties acting on behalf of us comply with ASSA
ABLOY’s standards.
We have established a third-party due diligence
process setting out requirements to be followed
when engaging with new business representatives.
Regions where the risk of corruption is perceived to
be higher, such as emerging markets and countries
with a low score on Transparency International’s
latest Corruption Perception Index, are primarily in
focus for heightened diligence measures.
According to our policies all business representa
tive relationships must be formally memorialized in a
written agreement including our standard compli
ance clauses or equivalent. We also strive to ensure
that all business representatives sign the Code of Con
duct for Business Partners. During 2024 we were not
convicted for violations of anti-corruption and anti-
bribery laws and consequently no fines were paid.
We also have a mergers and acquisitions compli
ance process as part of the acquisition process. The
aim of this process is to put any potential issues on
the agenda from the outset of the acquisition to be
able to determine the level of risk at an early stage, as
well as to mitigate specific areas of concern.
The implementation of the Code of Conduct and
related policies is reviewed through our established
process for internal control in all operating compa
nies and internal audits. Further, in 2024 we con
ducted targeted anti-corruption reviews on entities
operating in Asia, the Middle East, South America,
Africa, North America and Europe.
Reporting
Our commitment to responsible social and ethical
behavior includes our whistleblower process, which
encompasses several reporting channels and serves
both internal and external stakeholders. Employees
are expected to report concerns to either their man
ager, divisional compliance officer or HR represent
ative, via e-mail or regular post, or online through a
third-party managed reporting tool.
At ASSA ABLOY, we do not accept any form of re
taliation against someone who speaks up, expressing
concerns or opinions in good faith. This is outlined in
the Code of Conduct and our whistleblower directive.
If whistleblowers choose to remain anonymous,
neither ASSA ABLOY nor our external online reporting
tool provider can track or identify the reporting
individuals.
In addition, we have established a standard oper
ating procedure encompassing, in addition to the
whistleblower directive, a more detailed case man
agement process describing how incoming reports
and subsequent investigations are handled. This is to
ensure that allegations are rigorously and objectively
investigated. In most cases the investigations are
carried out by internal resources (from the HR, legal
and internal audit departments depending on the
matter at hand), but if needed external investigators
and expertise are also engaged.
The ASSA ABLOY Code of Conduct Committee,
headed by the Chief Human Resources Officer, main
tains oversight of both the overall procedure and all
high-risk allegations to ensure appropriate and timely
resolution. This also ensures that the Executive Team
is informed about the outcomes.
Anti-corruption training
All our employees are required to participate in an
e-learning course on the Code of Conduct as part of
their onboarding process, and like all our other com
pliance training the course must be repeated every
three years. The course covers a wide range of topics,
providing a good understanding of our policies on
business conduct, including anti-corruption and
ethical guidelines.
In addition, we have a separate anti-corruption
and bribery e-learning course based on the anti-cor
ruption policy, including ethical business practices,
that is mandatory for selected target groups, again
with a three-year repetition interval. The target
groups are based on selected functions relevant to
the training and include, for example, managers as
well as sales, purchasing and sourcing personnel. As a
consequence, we believe that all functions at risk are
covered by anti-corruption training requirements.
These e-learning courses are global and available in
a multitude of languages.
Governance information
G1 Business Conduct
104
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
• G1 Business conduct
Financial statements
download
a printable
pdf here
Sustainability statement | Report of the Board of Directors
Due diligence
Cease, prevent
or mitigate
Management of relationships with suppliers and
payment practices
ASSA ABLOY fosters a collaborative and ethical part
nership with our suppliers, ensuring mutual respect
and adherence to shared values. It goes both ways in
creating a sustainable business relationship.
Ethical standards: Both parties to adhere to high
standards of integrity and fair dealing, including
compliance with laws and regulations.
Sustainability and responsibility: Mutual long-term
sustainability and social responsibility, aiming to build
sustainable relationships.
Human rights and labor standards: Mutual respect
for human rights and labor standards and health and
safety.
Environmental responsibility: There is a strong
focus on environmental responsibility, with suppliers
expected to comply with environmental laws and
strive for continuous improvement in their environ
mental performance.
Our ethical business practices in the Code of Con
duct includes the timely payment of suppliers. ASSA
ABLOY is committed to ensuring that suppliers are
paid on time, reflecting their broader commitment to
fair and responsible business practices. ASSA ABLOY
therefore shall pay within the payment term agreed,
assuming the supplier is providing the correct and
complete invoice documentation. This is valid for all
suppliers, including SMEs.
We currently do not track any of the following
metrics:
• Average number of days to pay invoice from date
when contractual or statutory term of payment
starts to be calculated.
• Percentage of payments aligned with standard
payment terms.
• Number of outstanding legal proceedings for late
payments.
Due to business sensitivity and limitation of data,
we are unable to disclose the following for 2024:
• Description of undertakings standard payment
terms in number of days by main category of
supplier.
We are currently not able to share the below, as this is
missing in formal directives or similar:
• Disclosure of contextual information regarding
payment practices, the invoice shall be paid within
the payment term agreed, subject to correct and
complete invoice documentation.
• Description of policy to prevent late payments,
especially to SMEs.
Due diligence
Track
Training table
Training
Code of Conduct*
Anti-corruption*
Percentage completion
87%
88%
* Code of Conduct – Percentage of all employees, that are required to
undertake the course in e-learning. In-person courses are excluded.
Anti-corruption –percentage of functions-at-risk covered by training
programmes = Number of regular employees who have completed the
assigned course / total number of regular employees assigned the course in
the recent 3 years.
105
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
ESRS-index
Section
Disclosure Requirement
Section
Page
Paragraph number
(where relevant)
Additional Information
General information
ESRS 2: General disclosures
BP-1 General basis for preparation of sustainability statements
SS
65-66
BP-2 Disclosures in relation to specific circumstances
SS
65-66
GOV-1 Role of the administrative, management and supervisory bodies
SS
66-67
GOV-2 Information provided to and sustainability matters addressed by administrative, management and supervisory bodies
SS
66-67
GOV-3 Integration of sustainability-related performance in incentive schemes
SS
67
12
GOV-4 Statement on due diligence
SS
68-70
GOV-5 Risk management and internal controls over sustainability reporting
SS
67
1, 11
SBM-1 Strategy, business model and value chain
SS
67
6-8
SBM-2 Interests and views of stakeholders - general
SS
68, 70
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
SS
71-77
IRO-1 Description of process to identify and assess material impacts, risks and opportunities
SS
71-77
IRO-2 Disclosure Requirements in ESRS covered by sustainability statements
SS
105-109
MDR-P Minimum disclosure requirement
SS
66, 67, 80
MDR-A Minimum disclosure requirement
SS
64, 71-77,
85, 90, 91,
93-104
MDR-M Minimum disclosure requirement
SS
64, 85, 90,
91, 93-104
MDR-T Minimum disclosure requirement
SS
64, 85, 90,
91, 93-104
Environmental
ESRS E1: Climate change
Climate change
mitigation & Energy
E1-1 Transition plan for climate change mitigation
SS
85-89
E1-2 Policies related to climate change mitigation and adaptation
SS
80, 85
E1-3 Actions and resources in relation to climate change policies
SS
85-89
E1-4 Targets related to climate change mitigation and adaptation
SS
64, 85-89
E1-5 Energy consumption and mix
SS
88
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
SS
89
E1-7 GHG removals and GHG mitigation projects financed through carbon credits
SS
87
9
E1-8 Internal carbon pricing
SS
87
8
E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities
SS
71, 78
ESRS E3: Water and
marine resources
Water
E3-1 Policies related to water and marine resources
SS
80, 90
E3-2 Actions and resources related to water and marine resources
SS
64, 90
E3-3 Targets related to water and marine resources
SS
64, 91
E3-4 Water consumption
SS
91
E3-5 Anticipated financial effects from material water and marine resources-related risks and opportunities
SS
72
ESRS E5: Resource use and
circular economy
Resource inflows, including
resource use
Resource outflows related to
products and services
Waste
E5-1 Policies related to resource use and circular economy
SS
80, 93
7
E5-2 Actions and resources related to resource use and circular economy
SS
64, 93
E5-3 Targets related to resource use and circular economy
SS
64, 92, 93
E5-4 Resource inflows
SS
92
5-7
E5-5 Resource outflows
SS
93
E5-6 Potential financial effects from resource use and circular economy-related impacts, risks and opportunities
SS
73
SS = Sustainability statement
FS = Financial statement
106
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Section
Disclosure Requirement
Section
Page
Paragraph number
(where relevant)
Additional Information
Social
ESRS S1: Own workforce
Working conditions
Other work-related rights
S1-1 Policies related to own workforce
SS
80, 94-95
S1-2 Processes for engaging with own workers and workers’ representatives about impacts
SS
94
S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns
SS
94-95, 103
S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing
material opportunities related to own workforce, and effectiveness of those actions
SS
74, 94-97
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities
SS
64, 96-97
S1-6 Characteristics of undertaking’s employees
SS. FS
97, 141
P141, Note 35
S1-7 Characteristics of non-employees in undertaking’s own workforce
SS
96
No data available in 2024
S1-8 Collective bargaining coverage and social dialogue
SS
96
No data available in 2024
S1-9 Diversity metrics
SS
64, 95-97
S1-10 Adequate Wages
SS
96
No data available in 2024
S1-11 Social protection
SS
96
No data available in 2024
S1-12 Persons with disabilities
SS
96
No data available in 2024
S1-13 Training and skills development metrics
SS
96
No data available in 2024
S1-14 Health and safety metrics
SS
64, 95-97
S1-15 Work-life balance metrics
SS
96
No data available in 2024
S1-16 Remuneration metrics (pay gap and total remuneration) - general
SS
96
No data available in 2024
S1-17 Incidents, complaints and severe human rights impacts -general
SS
94-95
ESRS S2: Workers in the value chain
Working conditions
Other work-related rights
S2-1 Policies related to value chain workers
SS
80, 98
S2-2 Processes for engaging with value chain workers about impacts
SS
98-100
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns
SS
98-100
S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing
material opportunities related to value chain workers, and effectiveness of those actions
SS
98-100
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities
SS
64, 98, 100
ESRS S4: Consumers and end-users
Personal safety of consumers and/
or end-users
S4-1 Policies related to consumers and end-users
SS
80, 102
S4-2 Processes for engaging with consumers and end-users about impacts
SS
102
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
SS
102
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
SS
102
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities (consumers and end-users)
SS
102
Governance
ESRS G1: Business conduct
Corporate culture
Protection of whistle-blowers
Management of relationships
with suppliers including payment
practices
Corruption and bribery
G1-1 Business conduct policies and corporate culture
SS
80, 103
G1-2 Management of relationships with suppliers
SS
104
G1-3 Prevention and detection of corruption or bribery
SS
103
G1-4 Incidents of corruption or bribery
SS
103
G1-5 Political influence and lobbying activities
SS
103
G1-6 Payment practices
SS
104
SS = Sustainability statement
FS = Financial statement
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Disclosure Requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Page
Additional information
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)
●
●
66
ESRS 2 GOV-1 Percentage of board members who are
independent paragraph 21 (e)
●
66
ESRS 2 GOV-4 Statement on due diligence paragraph 30
●
68-70
ESRS 2 SBM-1 Involvement in activities related to fossil
fuel activities paragraph 40 (d) i
●
●
●
Not Applicable
ESRS 2 SBM-1 Involvement in activities related to
chemical production paragraph 40 (d) ii
●
●
Not Applicable
ESRS 2 SBM-1 Involvement in activities related to
controversial weapons paragraph 40 (d) iii
●
●
Not Applicable
ESRS 2 SBM-1 Involvement in activities related to
cultivation and production of tobacco paragraph 40
(d) iv
●
Not Applicable
ESRS E1-1 Transition plan to reach climate neutrality
by 2050 paragraph 14
●
85-86
ESRS E1-1 Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
●
●
Not Applicable
ESRS E1-4 GHG emission reduction targets
paragraph 34
●
●
●
64, 85-86
ESRS E1-5 Energy consumption from fossil sources
disaggregated by sources (only high climate impact
sectors) paragraph 38
●
Not Applicable
ESRS E1-5 Energy consumption and mix
paragraph 37
●
88
ESRS E1-5 Energy intensity associated with activities in
high climate impact sectors paragraphs 40 to 43
●
Not Applicable
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions
paragraph 44
●
●
88-89
ESRS E1-6 Gross GHG emissions intensity paragraphs
53 to 55
●
●
●
89
ESRS E1-7 GHG removals and carbon credits
paragraph 56
●
87
ESRS E1-9 Exposure of the benchmark portfolio to
climate-related physical risks paragraph 66
●
71, 78
ESRS E1-9 Disaggregation of monetary amounts by
acute and chronic physical risk paragraph 66 (a)
ESRS E1-9 Location of significant assets at material
physical risk paragraph 66 (c)
●
78
Appendix B: List of datapoints in cross-cutting and topical standards that derive from other EU legislation
This appendix is an integral part of the ESRS 2. The table below illustrates the datapoints in ESRS 2 and topical ESRS that derive from other EU legislation.
108
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Disclosure Requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Page
Additional information
ESRS E1-9 Breakdown of the carrying value of its real
estate assets by energy-efficiency classes paragraph
67 (c)
●
Not Applicable
ESRS E1-9 Degree of exposure of the portfolio to
climate- related opportunities paragraph 69
●
71, 73
ESRS E2-4 Amount of each pollutant listed in Annex II
of the E- PRTR Regulation (European Pollutant Release
and Transfer Register) emitted to air, water and soil,
paragraph 28
●
Not Applicable
ESRS E3-1 Water and marine resources paragraph 9
●
90, 91
ESRS E3-1 Dedicated policy paragraph 13
●
80
ESRS E3-1 Sustainable oceans and seas paragraph 14
●
90
ESRS E3-4 Total water recycled and reused paragraph
28 (c)
●
91
ESRS E3-4 Total water consumption in m3 per net
revenue on own operations paragraph 29
●
91
ESRS 2- IRO 1 - E4 Paragraph 16 (a) i
●
Not Applicable
ESRS 2- IRO 1 - E4 Paragraph 16 (b)
●
Not Applicable
ESRS 2- IRO 1 - E4 Paragraph 16 (c)
●
Not Applicable
ESRS E4-2 Sustainable land / agriculture practices or
policies paragraph 24 (b)
●
Not Applicable
ESRS E4-2 Sustainable oceans / seas practices or policies
paragraph 24 (c)
●
Not Applicable
ESRS E4-2 Policies to address deforestation paragraph
24 (d)
●
Not Applicable
ESRS E5-5 Non-recycled waste paragraph 37 (d)
●
93
ESRS E5-5 Hazardous waste and radioactive waste
paragraph 39
●
93
ESRS 2- SBM3 - S1 Risk of incidents of forced labour
paragraph
●
94-96
ESRS 2- SBM3 - S1 Risk of incidents of child labour
paragraph 14 (g)
●
94-96
ESRS S1-1 Human rights policy commitments
paragraph 20
●
94-95
ESRS S1-1 Due diligence policies on issues addressed
by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 21
●
80, 94, 98
ESRS S1-1 Processes and measures for preventing
trafficking in human beings paragraph 22
●
94-95
ESRS S1-1 Workplace accident prevention policy or
management system paragraph 23
●
80, 94
ESRS S1-3 Grievance/complaints handling mechanisms
paragraph 32 (c)
●
80
ESRS S1-14 Number of fatalities and number and rate of
work-related accidents paragraph 88 (b) and (c)
●
●
97
109
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Report of the Board of Directors
Significant risks and risk management
Corporate governance
Board of Directors
Executive Team
Internal control – financial reporting
Sustainability statement
General information
Environmental information
Social information
Governance information
Financial statements
Disclosure Requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Page
Additional information
ESRS S1-14 Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
●
97
ESRS S1-16 Unadjusted ge der pay gap paragraph 97 (a)
●
●
Not Applicable
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)
●
Not Applicable
ESRS S1-17 Incidents of discrimination paragraph 103
(a)
●
95
ESRS S1-17 Non-respect of UNGPs on Business and
Human Rights and OECD paragraph 104 (a)
●
●
94-95
ESRS 2- SBM3 – S2 Significant risk of child labour or
forced labour in the value chain paragraph 11 (b)
●
98-101
ESRS S2-1 Human rights policy commitments
paragraph 17
●
80, 98-101
ESRS S2-1 Policies related to value chain workers
paragraph 18
●
80, 98-101
ESRS S2-1 Non-respect of UNGPs on Business and
Human Rights principles and OECD guidelines
paragraph 19
●
●
68
ESRS S2-1 Due diligence policies on issues addressed
by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
●
80
ESRS S2-4 Human rights issues and incidents connected
to its upstream and downstream value chain paragraph
36
●
98-100
ESRS S3-1 Human rights policy commitments
paragraph 16
●
Not Applicable
ESRS S3-1 Non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD guidelines
paragraph 17
●
●
Not Applicable
ESRS S3-4 Human rights issues and incidents paragraph
36
●
Not Applicable
ESRS S4-1 Policies related to consumers and end-users
paragraph 16
●
102
ESRS S4-1 Non-respect of UNGPs on Business and
Human Rights and OECD guidelines paragraph 17
●
●
102
ESRS S4-4 Human rights issues and incidents paragraph
35
●
102
ESRS G1-1 United Nations Convention against
Corruption paragraph 10 (b)
●
103
ESRS G1-1 Protection of whistle- blowers paragraph
10 (d)
●
103
ESRS G1-4 Fines for violation of anti-corruption and
anti-bribery laws paragraph 24 (a)
●
●
103-104
ESRS G1-4 Standards of anti- corruption and anti-
bribery paragraph 24 (b)
●
103-104
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
110
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Financial
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Sales and income
• Net sales increased by 7 percent to SEK 150,162
M (140,716). Organic growth was –1 percent (3),
while net growth from acquisitions and divest
ments amounted to 8 percent (8).
• Operating income (EBIT) increased by 11 percent
to SEK 24,275 M (21,785), an operating margin of
16.2 percent (15.5).
• Earnings per share before and after full dilution
increased by 15 percent till SEK 14.08 (12.27).
Sales
The Group’s sales for 2024 amounted to SEK 150,162 M
(140,716), corresponding to an increase of 7 percent (16).
Organic growth was –1 percent (3), while the net contribu
tion from acquisitions and divestments was 8 percent (8). The
exchange rate impact on sales was 0 percent (5).
Change in sales
%
2023
2024
Organic growth
3
-1
Acquisitions and divestments
8
8
Exchange rate effects
5
0
Total
16
7
Sales by product group
Mechanical locks, lock systems and fittings accounted for 25
percent (23) of total sales. Electromechanical and electronic
locks accounted for 30 percent (30) of sales, while entrance
automation accounted for 30 percent (30). Security doors
and hardware accounted for 15 percent (17) of sales.
Cost structure
The Group’s total wage costs, including social security
expenses and pension expenses, were SEK 45,184 M (40,783),
equivalent to 30 percent (29) of sales. The average number of
employees was 62,825 (56,845).
Material costs amounted to SEK 50,542 M (50,364), equiv
alent to 34 percent (36) of sales, and other purchasing costs
totaled SEK 24,602 M (22,350), equivalent to 16 percent (16)
of sales. Depreciation, amortization and impairment of
non-current assets was SEK 5,645 M (7,646), equivalent to 4
percent (5) of sales.
Operating income
The Group’s operating income (EBIT) for 2024 amounted to
SEK 24,275 M (21,785), an increase of 11 percent. This corre
sponds to an operating margin of 16.2 percent (15.5). The
increase in income was mainly attributable to strong growth
in fixed currency, good leverage from sales price in relation to
material costs, and efficiency enhancements and cost savings.
The restructuring program launched in 2023 also made a sig
nificant contribution to good savings during the year.
The parent company’s operating income for 2024 was SEK
2,138 M (2,951). The change in income for the year is mainly
on account of lower intra-Group operating income.
Items affecting comparability
Items affecting comparability were recognized for both 2024
and 2023, as shown below. Amounts are given before income
tax.
2024
• Adjusted purchase price and exit costs related to the 2023
divestment of Emtek and Smart Residential in the US and
Canada, SEK -21 M.
2023
• Capital gain on divestment of Emtek and Smart Residential
in the US and Canada, SEK 3,588 M.
• Impairment of intangible assets in the Global Technologies
division, SEK -2,271 M.
• Restructuring program, SEK -1,250 M.
• Inventory revaluation related to company acquisitions,
SEK -466 M.
Income before tax
Consolidated income before tax was SEK 20,893 M (19,254).
The exchange rate effect before taxes amounted to SEK –23 M
(883). Net financial items amounted to SEK –3,382 M
(–2,531); the increase for the year is mainly on account of
higher interest expenses. The profit margin was 13.9 percent
(13.7).
Tax on income
The Group’s tax expense totaled SEK 5,272 M (5,615), equiva
lent to an effective tax rate of 25.2 percent (29.2). The effec
tive tax rate for the comparative year was significantly affected
by items affecting comparability, mainly related to capital
gains from divestments and impairment of intangible assets.
The effective tax rate excluding items affecting comparability
was 25.2 percent (23.4).
Earnings per share
Consolidated earnings per share before and after full dilution
amounted to SEK 14.08 (12.27), an increase of 15 percent.
The increase in earnings per share was 4 percent excluding
items affecting comparability.
Sales and operating income
Sales
Operating income¹
¹ Excluding items affecting
comparability.
SEK M
SEK M
0
30,000
60,000
90,000
120,000
150,000
24
23
22
21
20
0
5,000
10,000
15,000
20,000
25,000
Earnings per share before and after dilution
SEK
0
2
4
6
8
10
12
14
24
23
22
21
20
Earnings per share
before and after dilution¹
¹ Excluding items affecting
comparability.
Sales by product group, 2024
Mechanical locks, lock systems
and fittings, 25% (23)
Entrance automation, 30% (30)
Electromechanical and elec
tronic locks, 30% (30)
Security doors and hardware,
15% (17)
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Consolidated income statement
SEK M
Note
2023
2024
Sales
2
140,716
150,162
Cost of goods sold
–84,212
–87,434
Gross income
56,504
62,728
Selling expenses
–21,397
–24,105
Administrative expenses
3
–7,551
–8,334
Research and development costs
–5,712
–6,101
Other operating income and expenses
4
–1,393
17
Impairment of goodwill and other acquisition-related intangible assets
14
–2,271
–
Capital gain on divestment of subsidiaries
3,588
24
Share of earnings in associates
5
18
45
Operating income
7–9, 25, 35
21,785
24,275
Financial income
10
157
133
Financial expenses
9, 11, 25
–2,687
–3,515
Income before tax
19,254
20,893
Tax on income
12
–5,615
–5,272
Net income
13,639
15,621
Net income attributable to:
Parent company’s shareholders
13,633
15,639
Non-controlling interests
7
–18
Earnings per share
Before and after dilution, SEK
13
12.27
14.08
Before and after dilution and excluding items affecting comparability, SEK
13
13.54
14.09
Consolidated statement of
comprehensive income
SEK M
Note
2023
2024
Net income
13,639
15,621
Other comprehensive income:
Items that will not be reclassified to profit or loss
Actuarial gain/loss on post-employment benefit obligation
25
–8
22
Deferred tax from actuarial gain/loss on post-employment benefit
obligations
7
48
Total
–1
70
Items that may be reclassified subsequently to profit or loss
Share of other comprehensive income of associates
–63
–1
Cash flow hedges
–66
94
Hedging cost
–23
–8
Exchange rate differences reclassified to profit or loss
–
–
Exchange rate differences
–2,537
5,663
Tax attributable to items that may be reclassified subsequently
to profit or loss
5
–3
Total
–2,684
5,745
Total other comprehensive income
–2,685
5,814
Total comprehensive income
10,954
21,435
Total comprehensive income attributable to:
Parent company’s shareholders
10,953
21,459
Non-controlling interests
2
–24
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Comments by division
ASSA ABLOY is organized into five divisions. EMEIA
(Europe, Middle East, India and Africa), Americas
(North and South America) and Asia Pacific (Asia
and Oceania) manufacture and sell mechanical and
electromechanical locks, security doors and hard
ware in their respective geographic markets. Global
Technologies operates worldwide in the product
areas of access control systems, secure card issu
ance, identification technology and hotel locks.
Entrance Systems is a global supplier of entrance
automation products and service.
Opening Solutions EMEIA
Sales totaled SEK 25,098 M (24,831), with organic growth of
0 percent (–2). Growth from acquisitions, divestments and
internal segment transfers was 1 percent (6). Operating
income excluding items affecting comparability amounted to
SEK 3,552 M (3,388), with an operating margin (EBIT) of 14.2
percent (13.6). The return on capital employed excluding
items affecting comparability was 15.9 percent (14.8). Oper
ating cash flow before non-cash items and interest paid was
SEK 3,872 M (4,183).
Organic sales remained stable for EMEIA during the year,
affected by a continued weak private residential market. Effi
ciency enhancements and savings contributed to an increased
operating margin during the year, while cash flow remained
strong.
Opening Solutions Americas
Sales totaled SEK 44,340 M (38,009), with organic growth of
2 percent (6). Growth from acquisitions and divestments was
16 percent (22). Operating income excluding items affecting
comparability amounted to SEK 8,207 M (7,186), with an
operating margin (EBIT) of 18.5 percent (18.9). The return on
capital employed excluding items affecting comparability was
12.7 percent (16.3). Operating cash flow before non-cash
items and interest paid was SEK 7,581 M (8,181).
Organic growth for Americas was good for the commercial
customer segments in North America. Sales were stable for
the private residential market. Growth was strong in Latin
America, particularly in Brazil. The operating margin and cash
flow remained at high levels.
Opening Solutions Asia Pacific
Sales totaled SEK 9,120 M (10,284), with organic growth of -6
percent (–2). Net growth from acquisitions, divestments and
internal segment transfers was –3 percent (5). Operating
income excluding items affecting comparability amounted to
SEK 619 M (662), with an operating margin (EBIT) of 6.8 per
cent (6.4). The return on capital employed excluding items
affecting comparability was 5.8 percent (5.8). Operating cash
flow before non-cash items and interest paid was SEK 997 M
(1,213).
The division’s sales declined during the year, affected by
a generally weak private residential market. Organic sales
were stable in South Korea, but sales declined in China and
Southeast Asia. The operating margin increased during the
year owing to continued efficiency enhancements and cost
savings.
Global Technologies
Sales totaled SEK 24,179 M (23,099), with organic growth of
–2 percent (9). Net growth from acquisitions and internal seg
ment transfers was 7 percent (5). Operating income exclud
ing items affecting comparability amounted to SEK 4,224 M
(3,996), with an operating margin (EBIT) of 17.5 percent
(17.3). The return on capital employed excluding items affect
ing comparability was 14.8 percent (15.2). Operating cash
flow before non-cash items and interest paid was SEK 4,585 M
(4,145).
Organic sales declined for Global Technologies, mainly
owing to high comparative figures in the Physical Access Con
trol business unit. Organic growth was strong for the Global
Solutions business unit. The operating margin increased
thanks to efficiency enhancements and good cost control,
and cash flow was further improved.
Entrance Systems
Sales totaled SEK 49,451 M (46,665), with organic growth of
–1 percent (1). Growth from acquisitions and divestments
was 7 percent (2). Operating income excluding items affect
ing comparability amounted to SEK 8,493 M (7,807), with an
operating margin (EBIT) of 17.2 percent (16.7). The return on
capital employed excluding items affecting comparability was
20.1 percent (20.3). Operating cash flow before non-cash
items and interest paid was SEK 10,017 M (10,391).
Growth for Entrance Systems was strong in the Pedestrian
and Perimeter Security business segments, while the other
segments were negatively affected by weaker demand in
North America. Growth in services was good during the year.
The division’s operating margin improved and cash flow
remained very strong.
Other
The costs of Group-wide functions, such as corporate man
agement, accounting and finance, supply management and
Group-wide product development, totaled SEK 799 M (854).
Elimination of sales between the Group’s segments is
included in “Other”.
EMEIA, 16% (17)
Americas, 29% (27)
Asia Pacific, 5% (6)
Global Technologies, 16% (16)
Entrance Systems, 33% (33)
External sales, 2024
Average number of employees, 2024
EMEIA, 19% (22)
Americas, 29% (24)
Asia Pacific, 11% (13)
Global Technologies, 14% (14)
Entrance Systems, 27% (28)
Operating income, 2024¹
EMEIA, 14% (15)
Americas, 33% (31)
Asia Pacific, 2% (3)
Global Technologies, 17% (17)
Entrance Systems, 34% (34)
¹ “Other” is not included in the calculation. See section Comments by
division for what is included in “Other”.
114
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Reporting by division
SEK M
EMEIA
Americas
Asia Pacific
Global
Technologies
Entrance Systems
Other
Total
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Sales, external
24,214
24,447
37,867
44,213
9,133
8,200
22,930
23,955
46,570
49,347
–
–
140,716
150,162
Sales, internal
617
651
141
128
1,151
920
169
224
95
104
–2,173¹
–2,027¹
–
–
Sales
24,831
25,098
38,009
44,340
10,284
9,120
23,099
24,179
46,665
49,451
–2,173
–2,027 140,716 150,162
Organic growth
–2%
0%
6%
2%
–2%
–6%
9%
–2%
1%
–1%
–
–
3%
–1%
Acquisitions and divestments
6%
1%
22%
16%
5%
–3%
5%
7%
2%
7%
–
–
8%
8%
Exchange rate effects
5%
0%
6%
–1%
2%
–2%
5%
0%
6%
0%
–
–
5%
0%
Operating income (EBIT) excluding items
affecting comparability
3,388
3,552
7,186
8,207
662
619
3,996
4,224
7,807
8,493
–854
–799
22,185
24,296
Operating margin (EBIT)
13.6%
14.2%
18.9%
18.5%
6.4%
6.8%
17.3%
17.5%
16.7%
17.2%
–
–
15.8%
16.2%
Operating cash flow
Operating income (EBIT) excluding items
affecting comparability
3,388
3,552
7,186
8,207
662
619
3,996
4,224
7,807
8,493
–854
–799
22,185
24,296
Depreciation, amortization and impairment
1,055
989
1,154
1,604
424
401
1,013
1,006
1,484
1,592
44
53
5,174
5,645
Net capital expenditure
–627
–434
–631
–740
–202
63
–378
–440
–576
–483
–6
–29
–2,419
–2,063
Amortization of lease liabilities
–276
–280
–255
–342
–129
–130
–188
–202
–675
–812
–21
–30
–1,543
–1,797
Change in working capital
643
44
726
–1,148
457
45
–298
–3
2,352
1,228
–44
43
3,836
208
Operating cash flow by division
4,183
3,872
8,181
7,581
1,213
997
4,145
4,585
10,391
10,017
–881
–763
27,232
26,289
Non-cash items
123
14
123
14
Interest paid and received
–2,122
–3,251
–2,122
–3,251
Operating cash flow
25,232
23,052
Capital employed
Goodwill
13,232
14,552
32,382
36,524
5,379
5,582
18,989
21,504
22,891
28,711
–
–
92,873
106,874
Other intangible assets
1,366
1,498
21,652
22,753
1,937
1,863
2,968
3,848
6,876
8,531
32
39
34,831
38,531
Property, plant and equipment
3,166
3,287
3,037
3,487
1,398
1,331
1,556
1,763
2,260
2,740
43
45
11,460
12,653
Right-of-use assets
976
831
1,598
1,606
295
309
553
768
1,858
2,671
17
110
5,296
6,295
Other capital employed
2,120
2,256
2,875
3,636
1,324
1,399
1,827
2,136
3,830
3,180
84
412
12,060
13,019
Adjusted capital employed
20,860
22,423
61,544
68,006
10,332
10,485
25,891
30,018
37,715
45,833
177
607 156,520 177,373
Restructuring reserve
–298
–60
–150
–22
–43
9
–89
74
–182
–35
–5
–5
–767
–39
Capital employed
20,562
22,363
61,395
67,984
10,289
10,494
25,802
30,093
37,533
45,798
172
602 155,753 177,333
Return on capital employed excluding items
affecting comparability
14.8%
15.9%
16.3%
12.7%
5.8%
5.8%
15.2%
14.8%
20.3%
20.1%
–
–
15.6%
14.4%
Average adjusted capital employed
22,872
22,353
44,025
64,462
11,396
10,656
26,295
28,510
38,502
42,249
–
–
142,611
168,363
Average number of employees
12,188
12,212
13,358
17,889
7,099
6,758
7,895
8,651
16,028
17,035
276
279
56,845
62,825
¹ Of which eliminations SEK -2,027 M (-2,173).
The segments have been determined on the basis of reporting
to the President and CEO, who monitors the overall perfor
mance and makes decisions on resource allocation. The differ
ent segments generate their revenue from the manufacture
and the sale of mechanical, electromechanical and electronic
locks, lock systems and fittings, and security doors and hard
ware.
The breakdown of sales is based on customer sales in the
respective country. Sales between segments are carried out at
arm’s length.
For further information on sales, see Note 2.
115
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Who we are
ASSA ABLOY as an investment
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Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Financial position
Capital employed was SEK 177,333 M (155,753) at the year-
end. The increase during the year was mainly an effect of com
pleted acquisitions and currency effects.
The return on capital employed excluding items affecting
comparability was 14.4 percent (15.6).
Net debt/EBITDA amounted to a quota of 2.3 (2.3) at the
year-end.
SEK M
2023
2024
Capital employed
155,753
177,333
– of which goodwill
92,873
106,874
Net debt
64,109
70,253
Equity
91,644
107,080
– of which non-controlling interests
16
10
Capital employed
Capital employed in the Group, defined as total assets less
interest-bearing assets and non-interest-bearing liabilities
including deferred tax liabilities, amounted to SEK 177,333 M
(155,753). The return on capital employed excluding items
affecting comparability was 14.4 percent (15.6).
Intangible assets amounted to SEK 145,405 M (127,704).
The increase is mainly due to completed acquisitions and cur
rency effects. During the year, goodwill and other intangible
assets with an indefinite useful life arose to a preliminary
value of SEK 9,820 M (42,549) as a result of completed acqui
sitions and adjustments of acquisitions made in previous
years.
A valuation model, based on discounted future cash flows,
is used for impairment testing of goodwill and other intangi
ble assets with an indefinite useful life. There were no impair
ments of intangible assets during the year. Intangible assets
were impaired in the Global Technologies division in 2023 at
an operating expense of SEK 2,271 M.
Property, plant and equipment amounted to SEK 12,653 M
(11,460). Capital expenditure on property, plant and equip
ment and intangible assets, less sales of property, plant and
equipment and intangible assets, totaled SEK 2,063 M
(2,419). Total depreciation, amortization and impairment
excluding items affecting comparability amounted to SEK
5,645 M (5,174).
Trade receivables amounted to SEK 23,444 M (20,934) and
inventories totaled SEK 21,020 M (18,603) at the year-end.
The average collection period for trade receivables was 50
days (49). Material throughput time averaged 108 days (114).
Working capital, adjusted for acquisitions and divestments
and currency effects, was stable during the year.
Net debt
Net debt was SEK 70,253 M (64,109) at the year-end. The
increase during the year is mainly due to a continued high rate
of acquisitions and currency effects. Operating cash flow
remained very strong during the year thanks to good earnings
and efficient use of working capital.
External financing
The financing mainly consists of a GMTN Program of SEK
42,657 M (38,365), of which SEK 38,688 M (35,679) is long-
term, a bilateral bank loan of USD 500 M (500) and loans from
financial institutions such as the European Investment Bank
(EIB) totaling USD 641 M, of which USD 571 M (641) is long-
term, and the Nordic Investment Bank of EUR 235 M (235).
Eight new issues under the GMTN Program for a total of SEK
5,518 M with maturities of 3.2 to 8 years were made during
the year. A new bilateral bank loan of CAD 200 M was also
raised to diversify the loan portfolio. Other changes in long-
term loans are mainly due to some of the originally long-term
loans now having less than 1 year to maturity. The size of the
loans was affected by currency fluctuations, mainly due to a
stronger USD, which increased the volume of loans.
The Group’s short-term loan financing mainly consists of
two Commercial Paper Programs for a maximum USD 1,000
M (1,000) and SEK 5,000 M (5,000) respectively. At the year-
end, the outstanding balance under the Commercial Paper
Programs was SEK 6,177 M (4,906). In addition, substantial
credit facilities are available, mainly in the form of a Multi-
Currency Revolving Credit Facility of EUR 1,116 M (1,200).
At year-end the average time to maturity for the Group’s inter
est-bearing liabilities, excluding pension provisions and lease
obligations, was 44 months (52).
Cash and cash equivalents amounted to SEK 4,504 M
(1,466) and are invested in banks with high credit ratings.
Some of the Group’s main financing agreements contain a
customary Change of Control clause. This clause means that
lenders have the right in certain circumstances to demand the
renegotiation of conditions or to terminate the agreements
should control of the company change.
Equity
Consolidated equity totaled SEK 107,080 M (91,644) at year-
end. Return on equity was 15.7 percent (15.3) and the debt/
equity ratio, calculated as net debt divided by equity, was 0.66
(0.70). The equity ratio was 47.9 percent (46.7) at year-end.
Capital employed and return on capital employed
Net debt
Net debt
Net debt/EBITDA
Capital employed
Return on capital
employed
SEK M
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
24
23
22
21
20
0
0.2
0.4
0.6
0.8
1.0
SEK M
%
0
40,000
80,000
120,000
160,000
200,000
24
23
22
21
20
0
5
10
15
20
116
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Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Consolidated balance sheet
SEK M
Note
2023
2024
ASSETS
Non-current assets
Intangible assets
14
127,704
145,405
Property, plant and equipment
15
11,460
12,653
Right-of-use assets
16
5,296
6,295
Investments in associates
18
622
710
Other financial assets
20
412
698
Deferred tax assets
19
1,863
2,097
Total non-current assets
147,357
167,859
Current assets
Inventories
21
18,603
21,020
Trade receivables
22
20,934
23,444
Current tax receivables
2,022
1,385
Other current receivables
1,898
1,942
Prepaid expenses and accrued income
2
2,908
3,008
Derivative financial instruments
36
926
419
Short-term investments
36
236
25
Cash and cash equivalents
36
1,466
4,504
Total current assets
48,994
55,747
TOTAL ASSETS
196,351
223,605
SEK M
Note
2023
2024
EQUITY AND LIABILITIES
Equity
Parent company’s shareholders
Share capital
24
371
371
Other contributed capital
9,675
9,675
Reserves
33
9,455
15,206
Retained earnings including net income for the year
72,128
81,819
Equity attributable to the Parent company’s shareholders
91,629
107,071
Non-controlling interests
16
10
Total equity
91,644
107,080
Non-current liabilities
Long-term loans
36
49,917
54,989
Non-current lease liabilities
36
4,001
4,817
Deferred tax liabilities
19
2,991
3,322
Pension provisions
25
1,435
1,478
Other non-current provisions
26
891
527
Other non-current liabilities
2, 36
897
922
Total non-current liabilities
60,131
66,056
Current liabilities
Short-term loans
36
9,833
11,958
Current lease liabilities
36
1,443
1,737
Derivative financial instruments
36
331
445
Trade payables
11,320
12,593
Current tax liabilities
1,744
1,470
Current provisions
26
736
431
Other current liabilities
2, 27, 36
5,017
6,302
Accrued expenses and deferred income
2, 28
14,152
15,532
Total current liabilities
44,576
50,469
TOTAL EQUITY AND LIABILITIES
196,351
223,605
117
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Cash flow
Cash flow
Operating cash flow for 2024 was very strong in relation to
earnings for the year, corresponding to cash conversion of 110
percent (128). Cash flow remained at a high level, thanks to
good earnings combined with efficient use of working capital.
Acquisition activity remained high during the year and net
cash flow from acquisitions and divestments of subsidiaries
amounted to SEK –11,676 M (–45,453).
Operating cash flow
SEK M
2023
2024
Operating income (EBIT)
21,785
24,275
Restructuring costs
1,250
–
Inventory revaluation attributable to com
pany acquisitions
466
–
Capital gains from divestments
–3,588
21
Impairment of intangible assets
2,271
–
Depreciation, amortization and other
impairment
5,174
5,645
Net capital expenditure
–2,419
–2,063
Change in working capital
3,836
208
Amortization of lease liabilities
–1,543
–1,797
Interest paid and received
–2,122
–3,251
Non-cash items
123
14
Operating cash flow
25,232
23,052
Cash conversion
1.28
1.10
The Group’s operating cash flow amounted to SEK 23,052 M
(25,232), equivalent to 110 percent (128) of income before
tax excluding items affecting comparability.
Net capital expenditure
Net capital expenditure on intangible assets and property,
plant and equipment totaled SEK 2,063 M (2,419), equivalent
to 1.4 percent (1.7) of Group sales.
Change in working capital
SEK M
2023
2024
Inventories
2,380
–60
Trade receivables
–49
–280
Trade payables
–214
153
Other working capital
1,720
395
Change in working capital
3,836
208
Material throughput time decreased during the year to an
average of 108 days (114). Capital tied up in working capital
was stable overall during the year, which had a positive impact
on cash flow of SEK 208 M (3,836) overall.
Relationship between cash flow from operating activities
and operating cash flow
SEK M
2023
2024
Cash flow from operating activities
21,294
21,391
Restructuring payments
613
748
Net capital expenditure
–2,419
–2,063
Amortization of lease liabilities
–1,543
–1,797
Reversal of tax paid
7,289
4,772
Operating cash flow
25,232
23,052
Investments in subsidiaries
Cash flow from investments in subsidiaries totaled SEK
–12,136 M (-53,566), while divestments of subsidiaries gener
ated positive cash flow of SEK 460 M (8,114). The cash flow
effect from acquisitions and divestments therefore totaled
SEK –11,676 M (–45,453). The rate of acquisitions remained
high during the year with a total of 26 acquisitions completed.
Acquired cash and cash equivalents totaled SEK 532 M
(1,175).
Change in net debt
Net debt was mainly affected by the strong positive operating
cash flow, acquisition payments, tax payments, dividend to
shareholders, and exchange rate effects. The increase in net
debt during the year is mainly an effect of a continued high
rate of acquisitions and currency effects.
SEK M
2023
2024
Net debt at 1 January
31,732
64,109
Operating cash flow
–25,232
–23,052
Restructuring payments
613
748
Tax paid on income
7,289
4,772
Acquisitions and divestments
46,826
13,108
Dividend
5,332
5,999
Actuarial gain/loss on post-employment
benefit obligations
8
–22
Change in lease liabilities
628
241
Exchange rate differences, etc.
–3,085
4,349
Net debt at 31 December
64,109
70,253
Capital expenditure
Income before tax and operating cash flow
Income before tax¹
Operating cash flow
Net capital expenditure
Depreciation and amor
tization
Net capital expenditure
as % of sales
SEK M
0
5,000
10,000
15,000
20,000
25,000
24
23
22
21
20
SEK M
%
0
1,000
2,000
3,000
4,000
5,000
6,000
24
23
22
21
20
0
1
2
3
4
5
¹ Excluding items affecting
comparability.
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Consolidated statement of cash flows
SEK M
Note
2023
2024
OPERATING ACTIVITIES
Operating income
21,785
24,275
Reversal of
Depreciation, amortization and impairment
8
5,174
5,645
Items affecting comparability
13
400
21
Other non-cash items
31
123
14
Restructuring payments
26
–613
–748
Change in working capital
31
3,836
208
Cash flow before interest and tax
30,704
29,415
Interest paid
–2,136
–3,366
Interest received
14
115
Tax paid on income
–7,289
–4,772
Cash flow from operating activities
21,294
21,391
INVESTING ACTIVITIES
Investments in property, plant and equipment and intangible assets
14, 15
–2,639
–2,562
Sales of property, plant and equipment and intangible assets
14, 15
220
499
Investments in subsidiaries
34
–53,566
–12,136
Divestments of subsidiaries
31
8,114
460
Other investments and divestments
–27
–186
Cash flow from investing activities
–47,899
–13,925
FINANCING ACTIVITES
Dividend
–5,332
–5,999
Long-term loans raised
36
33,129
7,044
Long-term loans repaid
36
–3,659
–3,736
Amortization of lease liabilities
–1,543
–1,797
Purchase of shares in subsidiaries from non-controlling interest
–38
–33
Stock purchase plans
–79
–112
Change in short-term loans, etc.
2,247
185
Cash flow from financing activities
24,726
–4,447
CASH FLOW
–1,880
3,019
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at 1 January
3,417
1,466
Cash flow
–1,880
3,019
Effect of exchange rate differences in cash and cash equivalents
–71
20
Cash and cash equivalents at 31 December
36
1,466
4,504
119
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Changes in consolidated equity
SEK M
Parent company’s shareholders
Total
Share capital
Other contrib
uted capital
Reserves
(see Note 33)
Retained
earnings incl.
net income for
the year
Non-controlling
interests
Opening balance 1 January 2023
371
9,675
12,133
63,835
12
86,026
Net income
13,633
7
13,639
Other comprehensive income
–2,679
–1
–5
–2,685
Total comprehensive income
–2,679
13,632
2
10,954
Dividend
–5,332
–
–5,332
Stock purchase plans
–7
–
–7
Total contributions by and distributions to Parent company’s
shareholders
–5,338
–
–5,338
Change in non-controlling interest
–
2
2
Total transactions with shareholders
–5,338
2
–5,336
Closing balance 31 December 2023
371
9,675
9,455
72,128
16
91,644
Opening balance 1 January 2024
371
9,675
9,455
72,128
16
91,644
Net income
15,639
–18
15,621
Other comprehensive income
5,751
70
–6
5,814
Total comprehensive income
5,751
15,708
–24
21,435
Dividend
–5,998
–1
–5,999
Stock purchase plans
–19
–
–19
Total contributions by and distributions to Parent company’s
shareholders
–6,017
–1
–6,017
Change in non-controlling interest
–
18
18
Total transactions with shareholders
–6,017
18
–5,999
Closing balance 31 December 2024
371
9,675
15,206
81,819
10
107,080
Dividend and earnings per share
Equity per share after dilution and return on equity
Dividend per share
Earnings per share before
and after dilution¹
Equity per share after
dilution, SEK
Return on equity, %
SEK
%
0
20
40
60
80
100
24
23
22
21
20
0
5
10
15
20
SEK
0
2
4
6
8
10
12
14
24
23
22
21
20
¹ Excluding items affecting
comparability
120
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Income statement – Parent company
Statement of comprehensive
income – Parent company
SEK M
Note
2023
2024
Administrative expenses
3, 6, 8, 9
–3,141
–3,316
Research and development costs
6, 8, 9
–2,396
–2,187
Other operating income and expenses
4
8,488
7,641
Operating income
9, 35
2,951
2,138
Financial income
10
1,848
7,500
Financial expenses
9, 11
–1,990
–3,117
Income before appropriations and tax
2,809
6,520
Group contributions
1,008
1,406
Change in excess depreciation and amortization
244
203
Tax on income
12
–696
–581
Net income
3,365
7,548
SEK M
2023
2024
Net income
3,365
7,548
Other comprehensive income
–
–
Total comprehensive income
3,365
7,548
Balance sheet – Parent company
SEK M
Note
2023
2024
ASSETS
Non-current assets
Intangible assets
14
2,775
1,695
Property, plant and equipment
15
33
27
Shares in subsidiaries
17
49,412
51,938
Other financial assets
20
503
505
Total non-current assets
52,722
54,165
Current assets
Receivables from subsidiaries
40,566
45,441
Other current receivables
79
145
Prepaid expenses and accrued income
85
74
Cash and cash equivalents
36
0
2
Total current assets
40,730
45,662
TOTAL ASSETS
93,452
99,827
EQUITY AND LIABILITIES
Equity
23
Restricted equity
Share capital
24
371
371
Revaluation reserve
275
275
Statutory reserve
8,905
8,905
Fund for development expenses
58
31
Non-restricted equity
Share premium reserve
787
787
Retained earnings including net income for the year
14,734
16,292
Total equity
25,130
26,661
Untaxed reserves
1,021
818
Non-current liabilities
Long-term loans
36
35,550
39,129
Total non-current liabilities
35,550
39,129
Current liabilities
Short-term loans
36
2,687
3,969
Trade payables
187
135
Current liabilities to subsidiaries
28,204
28,441
Other current liabilities
45
8
Accrued expenses and deferred income
28
629
665
Total current liabilities
31,751
33,219
TOTAL EQUITY AND LIABILITIES
93,452
99,827
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Cash flow statement – Parent company
SEK M
Note
2023
2024
OPERATING ACTIVITIES
Operating income
2,951
2,138
Depreciation, amortization and impairment
8
1,226
1,105
Other non-cash items
72
93
Cash flow before interest and tax
4,250
3,336
Interest paid and received
–1,158
–1,599
Dividends received
1,139
6,011
Tax paid and received
–442
–678
Cash flow before changes in working capital
3,789
7,070
Change in working capital
–6
937
Cash flow from operating activities
3,783
8,007
INVESTING ACTIVITIES
Investments in property, plant and equipment and intangible assets
–8
–20
Investments in subsidiaries
–6,103
–2,731
Divestments of subsidiaries
–
205
Cash flow from investing activities
–6,110
–2,546
FINANCING ACTIVITES
Dividend
–5,332
–5,998
Loans raised
10,929
3,408
Loans repaid
–3,192
–2,756
Stock purchase plans
–79
–112
Cash flow from financing activities
2,327
–5,459
CASH FLOW
0
2
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at 1 January
0
0
Cash flow
0
2
Cash and cash equivalents at 31 December
0
2
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Accounts | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
• Accounts
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Change in equity – Parent company
SEK M
Restricted equity
Non-restricted equity
Total
Share capital
Revaluation
reserve
Statutory
reserve
Fund for
development
expenses
Share
premium
reserve
Retained
earnings
Opening balance 1 January 2023
371
275
8,905
140
787
16,626
27,104
Net income
3,365
3,365
Total comprehensive income
3,365
3,365
Dividend
–5,332
–5,332
Stock purchase plans
–7
–7
Reclassifications
–82
82
–
Total transactions with shareholders
–82
–5,257
–5,339
Closing balance 31 December 2023
371
275
8,905
58
787
14,734
25,130
Opening balance 1 January 2024
371
275
8,905
58
787
14,734
25,130
Net income
7,548
7,548
Total comprehensive income
7,548
7,548
Dividend
–5,998
–5,998
Stock purchase plans
–19
–19
Reclassifications
–27
27
–
Total transactions with shareholders
–27
–5,990
–6,017
Closing balance 31 December 2024
371
275
8,905
31
787
16,292
26,661
123
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Notes
NOTE 1 Significant accounting and valuation
principles
Group
The Annual Report of ASSA ABLOY AB (publ.), corporate iden
tity number 556059-3575, contains the consolidated finan
cial statements for the fiscal year 1 January through 31
December 2024, including the nature and focus of the busi
ness. The annual report is prepared in Swedish kronor and all
amounts are in millions of kronor, unless otherwise stated.
ASSA ABLOY is a Swedish public limited company and a
world leader in access solutions, with innovations that enable
safe, secure, convenient access solutions for both physical and
digital locations. The company is a limited company regis
tered in Sweden, with its registered office in Stockholm, Swe
den, and is listed on Nasdaq Stockholm. The address of the
head office, where the company conducts its main activities,
is Klarabergsviadukten 90, 111 64 Stockholm.
ASSA ABLOY applies International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU), the
Swedish Annual Accounts Act and the Swedish Corporate
Reporting Board’s RFR 1 Supplementary Accounting Rules for
Corporate Groups. The accounting principles are based on
IFRS as endorsed by 31 December 2024 and have been
applied to all years presented, unless stated otherwise. This
Note describes the most significant accounting principles
that have been applied in the preparation of the financial
statements, which comprise the information provided on
pages 44–59 and 110–146. The presentation currency is
Swedish kronor (SEK), and the financial statements are pre
sented in millions of SEK, unless stated otherwise.
Basis of preparation
ASSA ABLOY’s consolidated financial statements have been
prepared in accordance with IFRS as endorsed by the EU. The
consolidated financial statements have been prepared in
accordance with the cost method, except for financial assets
and liabilities (including derivative instruments) measured at
fair value through profit or loss.
Totals quoted in tables and statements may not always be
the exact sum of the individual items because of rounding dif
ferences. The aim is that each line item should correspond to
its source and rounding differences may therefore arise.
Key estimates and assessments for accounting purposes
Estimates and assessments are continually evaluated and are
based on both historical experience and reasonable expecta
tions about the future.
The Group considers that estimates and assessments relat
ing to impairment testing of goodwill and other intangible
assets with indefinite useful life are of material importance to
the consolidated financial statements. The Group tests carry
ing amounts for impairment on an annual basis and where
there is an indication of a need for impairment. The recover
able amounts of cash generating units are determined by cal
culating their values in use. The calculations are based on cer
tain assumptions about the future. Material assumptions and
the effects of reasonable changes in them are described in
Note 14.
The actuarial assumptions made when calculating
post-employment employee benefits also have material
importance for the consolidated financial statements. For
information on the actuarial assumptions, see Note 25.
New and revised standards applied by the Group
The Group has applied the following standards and amend
ments for the first time for the financial year beginning 1 Janu
ary 2024:
• Disclosure of Non-current Liabilities with Covenants and
Classification of Liabilities as Current or Non-current,
amendments to IAS 1
• Supplier Finance Arrangements, amendments to IAS 7
and IFRS 7
• Lease Liability in a Sale and Leaseback, amendments to
IFRS 16
The amendments noted above had no impact on the amounts
recognized in the comparative period and have had no mate
rial effect on the current period.
New and revised IFRS not yet effective
IFRS 18 Presentation and Disclosure in Financial Statements is
effective from 1 January 2027, with retrospective application.
IFRS 18 introduces new requirements for presentation in the
income statement, aggregation and disaggregation of finan
cial information and presentation of management-defined
performance measures. In addition, there are consequential
amendments to several standards, such as IAS 7 Statement of
Cash Flows. The Group is currently working to identify all the
effects that the amendments will have on the financial state
ments and their notes.
Consolidated financial statements
The consolidated financial statements include ASSA ABLOY
AB (the Parent company) and all companies over which the
Group has control.
Non-controlling interests
The Group determines on an individual basis for each acquisi
tion whether a non-controlling interest in the acquired com
pany shall be recognized at fair value or at the interest’s pro
portional share of the acquired company’s net assets.
Segment reporting
The most senior executive decision-maker is the President
and CEO of the Parent company. The divisions form the opera
tional structure for internal control and reporting and also
constitute the Group’s segments for external financial report
ing. No segments have been aggregated in the Group’s
reporting.
The Group’s business is divided into five divisions. Three
divisions are based on products sold in local markets in the
respective division: EMEIA, Americas and Asia Pacific. Global
Technologies and Entrance Systems consist of products sold
worldwide.
Foreign currency translation
Functional currency corresponds to local currency in each
country where Group companies operate. Transactions in for
eign currencies are translated to functional currency by appli
cation of the exchange rates prevailing on the transaction
date. Foreign exchange gains and losses arising from the set
tlement of such transactions are normally recognized in the
income statement, as are those arising from translation of
monetary balance sheet items in foreign currencies at the
year-end rate. Exceptions are transactions relating to qualify
ing cash flow hedges, which are recognized in other compre
hensive income. Receivables and liabilities are measured at
the year-end rate.
In translating the accounts of foreign subsidiaries prepared
in functional currencies other than the Group’s presentation
currency, all balance sheet items except net income are trans
lated at the year-end rate and net income is translated at the
average rate. The income statement is translated at the aver
age rate for the period. Exchange differences arising from the
translation of foreign subsidiaries are recognized as transla
tion differences in other comprehensive income.
IAS 29 has been applied since 2023 for ASSA ABLOY’s oper
ations in Turkey, as a business in Turkey was acquired at the
end of 2022. The index applied is the consumer price index
with base period 2002 from the Turkish Statistical Institute.
The revaluation of periods before 2023 is recognized in the
translation difference within equity. The application of IAS 29
has not had a material impact on the consolidated financial
statements.
The table below shows the weighted average rate and the
closing rate for important currencies used in the Group, rela
tive to the Group’s presentation currency (SEK).
Country
Currency
Average rate
Closing rate
2023
2024
2023
2024
United Arab
Emirates
AED
2.88
2.87
2.72
2.99
Argentina
ARS
0.040
0.009
0.011
0.009
Australia
AUD
7.02
6.96
6.83
6.86
Brazil
BRL
2.12
1.96
2.06
1.78
Canada
CAD
7.83
7.70
7.55
7.64
Switzerland
CHF
11.77
12.01
11.88
12.19
Chile
CLP
0.013
0.011
0.011
0.011
China
CNY
1.49
1.47
1.41
1.51
Czech Republic
CZK
0.48
0.45
0.45
0.45
Denmark
DKK
1.54
1.53
1.48
1.54
Euro zone
EUR
11.44
11.41
11.06
11.46
United Kingdom GBP
13.15
13.49
12.74
13.83
Hong Kong
HKD
1.35
1.35
1.28
1.42
Hungary
HUF
0.030
0.029
0.029
0.028
Israel
ILS
2.87
2.86
2.76
3.00
India
INR
0.128
0.126
0.120
0.129
Kenya
KES
0.076
0.078
0.064
0.085
South Korea
KRW
0.0081
0.0077
0.0077
0.0075
Mexico
MXN
0.60
0.58
0.59
0.54
Malaysia
MYR
2.32
2.32
2.18
2.46
Norway
NOK
1.01
0.98
0.98
0.97
New Zealand
NZD
6.50
6.39
6.34
6.23
Poland
PLN
2.52
2.65
2.55
2.69
Romania
RON
2.31
2.29
2.22
2.30
Thailand
THB
0.30
0.30
0.29
0.32
Turkey
TRY
0.46
0.32
0.34
0.31
US
USD
10.57
10.55
9.99
10.99
South Africa
ZAR
0.58
0.58
0.54
0.59
Income statement
In the income statement costs are broken down by function.
Revenue
The Group’s revenue mainly consists of product sales. Service
related to products sold represents a limited share of revenue.
Revenue for the sale of the Group’s products is recognized at a
given point in time when the customer gains control over the
124
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
product, usually at the time of delivery. ASSA ABLOY also car
ries out installation services, which are recognized over time.
For shorter installation jobs, revenue is recognized in practice
upon completion of installation. Revenue from service con
tracts is recognized over time.
For product sales, a receivable is recognized when the
goods have been delivered, since this is usually the point in
time when the consideration becomes unconditional. The
payment terms for trade receivables differ between geo
graphical markets, types of goods or services, and different
customers.
ASSA ABLOY allocates the transaction price for each perfor
mance obligation on the basis of a stand-alone selling price.
The stand-alone selling price is the price for which the Group
would sell the good or service separately to a customer. In
cases where a stand-alone selling price is not directly observ
able, it is usually calculated based on the adjusted market
assessment approach or the expected cost plus a margin
approach.
Any discounts are allocated proportionately to all perfor
mance obligations in the contract, provided there is not
observable evidence that the discount does not relate to all
performance obligations.
Outstanding performance obligations for contracts with
an original expected term of one year or less at the reporting
date are recognized at the amount that ASSA ABLOY is enti
tled to invoice. This is because the Group is entitled to pay
ment from a customer in the amount that directly corre
sponds to the value to the customer of the entity’s
performance achieved at the reporting date.
ASSA ABLOY receives payment in advance from customers
to a limited extent. No customer contracts within the Group
relating to the sale of goods or services are assessed to con
tain a significant financing component. The Group does not
recognize any contract costs since the Group applies the prac
tical expedient permitted by the standard, under which incre
mental costs of obtaining a contract are recognized as an
expense when incurred if the amortization period of the asset
that the Group otherwise would have recognized is one year
or less.
Compensation from insurance and litigation is recognized
when it is virtually certain that an inflow of resources will
occur.
Intra-group sales
Transactions between Group companies are carried out at
arm’s length and thus at market prices.
Government grants
Grants relating to assets are recognized after reducing the
carrying amount of the asset by the amount of the grant.
Operating expenses
Operating expenses are recognized in their respective func
tions as follows.
• Cost of goods sold corresponds to direct and indirect costs
attributable to sales, such as expenses for merchandise,
personnel and consultants, and depreciation of non-
current assets in the production process.
• Selling expenses include sales and marketing efforts. The
expenses also include personnel and hired consultants,
depreciation, travel and marketing and PR-related activi
ties.
• Administrative expenses include expenses that are not
directly attributable to sales, manufacturing or purchasing.
The expenses include administrative premises and legal
and financial functions.
• Research and development costs include costs for the
development and production of products that are not
capitalizable.
ASSA ABLOY has an established process with well-defined
steps to define the research and development phases of
the Group’s product development. The process also serves
as a tool to assess when expenditure should be expensed
or capitalized. Research expenditure is expensed as
incurred and consists of feasibility studies, requirements
definition and specification. Development expenditure is
recognized in the balance sheet to the extent that it is
expected to generate future economic benefits and pro
vided such benefits can be reliably measured.
The development phase includes product and process
design, industrialization and market preparation. Capital
ized expenditure is amortized on a straight-line basis over
its estimated useful life, usually 3–5 years. Only expendi
ture on the development of new products is capitalized,
while expenditure on the further development of existing
products is expensed as incurred.
Tax on income
Deferred tax liabilities for temporary differences relating to
investments in subsidiaries are not recognized in the consoli
dated financial statements, since the Parent company can
control the time at which the temporary differences are
reversed, and it is not considered likely that such reversal will
occur in the foreseeable future.
The Group measures each uncertain tax position using
either the most likely amount or the expected value, based on
the method expected to reflect the outcome in the best way.
Assessments are reconsidered when there is new information
that affects earlier judgments.
Cash flow statement
The cash flow statement has been prepared according to the
indirect method.
Cash and cash equivalents
Cash and cash equivalents include cash and bank balances,
and short-term financial investments that mature within
three months of the acquisition date and are subject to a neg
ligible risk of fluctuation in value.
Goodwill and other acquisition-related intangible assets
Goodwill is allocated to cash-generating units (CGUs), which
consist of the Group’s five divisions except for Global Technol
ogies, whose two business units, HID and Global Solutions,
each constitute a CGU.
The Group’s CGUs are tested for impairment annually and
where there is an indication of a need for impairment. Cash
generating units are subject to systematic annual impairment
testing using a valuation model based on discounted future
cash flows. Other acquisition-related intangible assets consist
chiefly of various types of intellectual property rights, such as
brands, technology and customer relationships. Identifiable
acquisition-related intellectual property rights are initially
recognized at fair value at the acquisition date and subse
quently at cost less accumulated amortization and impair
ment losses. Amortization is on a straight-line basis over the
estimated useful life and amounts to 5–12 years for technol
ogy and 8–15 years for customer relationships. Acquisi
tion-related intangible assets with an indefinite useful life are
tested for impairment annually, and where there is an indica
tion of a need for impairment, in the same way as goodwill.
Other intangible assets
An intangible asset that is not acquisition-related is initially
recognized at cost and is amortized over its estimated useful
life, usually between three and five years.
Property, plant and equipment
Property, plant and equipment are recognized at cost less
accumulated depreciation and impairment losses. Land is not
depreciated. For other assets, cost is depreciated on a
straight-line basis over the estimated useful life, which for the
Group results in the following average depreciation periods:
• Buildings 25–50 years
• Land improvements 10–25 years
• Machinery 7–10 years
• Equipment 3–6 years
Gain or loss on the disposal of property, plant and equipment
is recognized in the income statement as ‘Other operating
income’ or ‘Other operating expenses’.
Leases
Within the Group there are a large number of current leases
for which the Group is the lessee, mostly relating to offices,
premises and vehicles. The Group recognizes a right-of-use
asset and a lease liability corresponding to the present value
of future lease payments in the balance sheet on the day the
leased asset is made available for use. In calculating the pres
ent value, the Group’s incremental borrowing rate by cur
rency is used. When measuring right-of-use and lease liability,
the Group made estimates and assumptions such as whether
any options to extend or terminate a lease agreement will be
exercised.
After the initial date, the right-of-use asset is measured at
cost and depreciated on a straight-line basis over the lease
term, or over the period of use of the underlying asset if the
lease transfers ownership of the underlying asset to the Group
by the end of the lease term. Depreciation is recognized as an
expense in profit or loss, while interest expense attributable
to the lease liability is recognized in net financial items.
In the statement of cash flows the lease payments are split
between interest paid in cash flow from operating activities
and amortization of lease liabilities in financing activities.
Operating cash flow includes amortization of lease liabilities
as an operating component.
The Group does not recognize any right of use or lease
liability regarding obligations for short-term leases and low-
value leases. Lease payments relating to such leases are
reported as operating expenses over the lease term.
Inventories
Inventories are valued in accordance with the ‘first in, first out’
principle at the lower of cost and net realizable value at the
reporting date.
Financial assets at amortized cost
Financial assets at amortized cost mainly comprise trade
receivables and cash and cash equivalents.
Financial assets at fair value through profit or loss
At the reporting date, this category consists of shares and par
ticipations and derivatives with a positive fair value that are
not used for hedge accounting.
Financial liabilities at fair value through profit or loss
This category includes derivatives with a negative fair value
that are not used for hedge accounting and deferred consid
erations. Liabilities are measured at fair value on a continuous
basis and changes in value are recognized in the income state
ment.
Significant deferred considerations are discounted to pres
ent value. Acquisition-related transaction costs are expensed
as incurred.
Financial liabilities at amortized cost
Amortized cost is determined based on the effective interest
rate calculated when the loan was raised. Accordingly, surplus
values and negative surplus values as well as direct issue
expenses are allocated over the term of the loan. Non-current
loan liabilities have an anticipated term of more than one year,
while current loan liabilities have a term of less than one year.
Note 1 continued
125
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Recognition and measurement of financial assets
and liabilities
Acquisitions and sales of financial assets are recognized on
the trade date, the date on which the Group commits to pur
chase or sell the asset.
Impairment of financial assets
The Group applies the IFRS 9 simplified approach to measur
ing expected credit losses for trade receivables. Under this
approach, a provision is made for lifetime expected credit
losses for the trade receivable. For calculation of expected
credit losses, the trade receivables are grouped based on the
number of days past due. Expected credit losses on trade
receivables that are not past due are primarily based on actual
credit losses from recent years.
Impairment that would be considered for other financial
assets that are within the scope of expected credit losses has
not been assessed to be material.
Derivative instruments and hedging
Derivative instruments are recognized in the balance sheet at
the transaction date and are measured at fair value, both ini
tially and in subsequent revaluations. The method for recog
nizing profit or loss depends on whether the derivative instru
ment is designated as a hedging instrument, and if so, the
nature of the hedged item. For derivatives not designated as
hedging instruments, changes in value are recognized on a
continuous basis through profit or loss under financial items,
either as income or expense.
The fair value of forward exchange contracts is calculated at
net present value based on prevailing forward rates on the
reporting date, while interest rate swaps are measured by esti
mating future discounted cash flows.
For information on the fair value of derivative instruments,
see Note 36, ‘Financial risk management and financial instru
ments’. Derivatives at fair value, with a maturity of more than
12 months, are classified as non-current interest-bearing
loans or receivables. Other derivatives are classified as current
interest-bearing liabilities and investments respectively.
Fair value hedges
For derivatives that are designated and qualify as fair value
hedges, changes in value of both the hedged item and the
hedging instrument are recognized on a continuous basis in
the income statement (under financial items). Fair value
hedges are used to hedge interest rate risk in borrowing
linked to fixed interest terms. If the hedge would no longer
qualify for hedge accounting, the fair value adjustment of the
carrying amount is dissolved through profit or loss over the
remaining term using the effective interest method.
Cash flow hedges
For derivatives that are designated and qualify as cash flow
hedges, changes in value of the hedging instrument are recog
nized on a continuous basis in other comprehensive income
for the part relating to the effective portion of the hedges.
Gain or loss arising from ineffective portions of derivatives is
recognized directly in the income statement under financial
items. When a hedging instrument expires, is sold or no lon
ger qualifies for hedge accounting, and accumulated gains or
losses relating to the hedge are recognized in equity, these
gains/losses remain in equity and are taken to income, while
the forecast transaction is finally recognized in the income
statement. When a forecast transaction is no longer expected
to occur, the accumulated gain or loss recognized in equity is
immediately transferred to other comprehensive income in
the income statement. When a forecast transaction is no lon
ger expected to occur, the gain or loss recognized in other
comprehensive income is recognized directly under financial
items.
Net investment hedges
For derivatives that are designated and qualify as net invest
ment hedges, the portion of value changes in fair value desig
nated as effective is recognized in other comprehensive
income. The ineffective portion of the gain or loss is recog
nized directly in profit or loss for the period under financial
items. Accumulated gain or loss in other comprehensive
income is recognized in the income statement when the
foreign operation, or part thereof, is sold.
Financial guarantees
Financial guarantees are recognized as financial liabilities
when they are issued. The liability is recognized initially at fair
value and subsequently at the higher of:
• The amount calculated using the model for expected
credit losses in accordance with IFRS 9 Financial Instru
ments, and
• The amount originally recognized less accumulated
accruals, where applicable.
The fair value of financial guarantee contracts is calculated as
the present value of the difference between future contrac
tual net cash flows (as per the debt instrument) and the pay
ments that would be demanded without the guarantee. Alter
natively, the guarantee contract is measured at the estimated
amount that would be paid to a third party for the third party
to assume the liability.
Assets and liabilities of disposal group classified
as held for sale
Assets and liabilities are classified as held for sale when their
carrying amounts will principally be recovered through a sale
and when such a sale is considered highly probable. They are
recognized at the lower of carrying amount and fair value less
selling expenses. As of the reporting date, the Group had no
assets or liabilities held for sale.
Equity-based incentive programs
The Group has equity-based remuneration plans in the form
of ASSA ABLOY’s incentive program. Detailed information
about the structure of the various programs can be found in
Note 35 Employees. For the long-term incentive program,
personnel costs during the vesting period are recognized
based on the shares’ fair value on the allotment date, that is,
when the company and the employees entered into an agree
ment on the terms and conditions for the program.
Fair value is based on the share price on the allotment date;
a reduction in fair value relating to the anticipated dividend
has not been made as the participants are compensated for
this. The employees pay a price equivalent to the share price
on the investment date. The vesting terms are not stock mar
ket based and affect the number of shares that ASSA ABLOY
will give to the employee on allotment. If an employee stops
investing in the program, all remaining personnel costs are
recognized in the income statement. Personnel costs for
shares relating to the performance-based program are calcu
lated on each accounting date based on an assessment of the
probability of the performance targets being achieved. The
costs are calculated based on the number of shares that ASSA
ABLOY expects to need to settle at the end of the vesting
period. When allocating shares, social security costs must be
paid in some countries to the value of the employee’s benefit.
This value is based on fair value on each accounting date and
recognized as a provision for social security costs.
The long-term incentive programs are essentially equity
settled and an amount equivalent to the personnel cost is rec
ognized against retained earnings in equity. In the income
statement, the personnel cost is allocated to the respective
function.
Climate-related issues
ASSA ABLOY has analyzed its climate-related risks and oppor
tunities through two of the scenarios identified by the UN
Intergovernmental Panel on Climate Change (IPCC):
• RCP 2.6 – Greenhouse gas emissions decrease radically in
the coming decades.
• RCP 6 – Greenhouse gas emissions decrease at an insuffi
cient rate.
See more information on sustainability in the Report of the
Board of Directors.
The risks identified include supply chain uncertainty and
material shortages. In preparing the consolidated financial
information, ASSA ABLOY analyzed the impact of these sce
narios on the estimates and assumptions used. The assess
ment included:
• The impact of climate change on the analysis of impair
ment indicators and the cash flow projections used in the
impairment testing of goodwill and intangible assets with
indefinite useful lives. See Note 14 for information about
the assumptions used.
• The impact of climate change on the recognition of provi
sions for environmental commitments.
For 2024, climate change was not assessed as having a mate
rial impact on the financial statements or on the estimates
and assumptions made in the preparation of the annual
report.
Parent company accounting policies
The Group’s Parent company, ASSA ABLOY AB, is responsible
for Group management and provides Group-wide functions.
The Parent company’s revenue consists of intra-group fran
chise and royalty revenues. The significant balance sheet
items consist of shares in subsidiaries, intra-group receivables
and liabilities, and external borrowing. The Parent company
has prepared its annual accounts in accordance with the
Swedish Annual Accounts Act (1995:1554) and the Swedish
Corporate Reporting Board’s RFR 2 Accounting for Legal
Entities. RFR 2 requires the Parent company, in its annual
accounts, to apply all the International Financial Reporting
Standards (IFRS) adopted by the EU in so far as this is possible
within the framework of the Annual Accounts Act and with
regard to the relationship between accounting and taxation.
The recommendation states which exceptions from and addi
tions to IFRS should be made.
Revenue
The Parent company’s revenue consists of intra-group fran
chise and royalty revenues. These are recognized in the
income statement as ‘Other operating income’ to make clear
that the Parent company has no product sales like other
Group companies with external operations.
Dividend
Dividend revenue is recognized when the right to receive
payment is considered certain.
Research and development costs
Research and development costs are expensed as incurred,
with the exception of large product development projects,
which have been capitalized.
Intangible assets
Intangible assets comprise patented technology and other
intangible assets. Intangible assets are amortized over a maxi
mum of five years, except for acquisition-related intangible
assets, which are amortized over 5–10 years.
Note 1 continued
126
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Property, plant and equipment
Property, plant and equipment owned by the Parent company
are recognized at cost less accumulated depreciation and any
impairment losses in the same way as for the Group. They are
depreciated over their estimated useful life, which entails
5–10 years for equipment and 3–5 years for IT equipment.
Trade receivables
Trade receivables are recognized initially at fair value and sub
sequently measured at amortized cost using the effective
interest method. The Parent company applies the IFRS 9 sim
plified approach to measuring expected credit losses for trade
receivables. However, the expected credit losses attributable
to the Parent company’s trade receivables have been assessed
to be immaterial.
Pension obligations
The Parent company’s pension obligations are recognized in
accordance with the simplification rule in RFR 2, which means
that defined benefit pensions are recognized as a defined con
tribution plan, and are covered by taking out insurance with
an insurance company.
Leases
The Parent company recognizes leases in accordance RFR 2,
which means that lease payments are expensed in a straight
line over the lease term.
Shares in subsidiaries
Shares in subsidiaries are recognized at cost less impairment
plus acquisition costs. When there is an indication that the
value of shares and interests in subsidiaries or associates has
fallen, the recoverable amount is calculated. If this is lower
than the carrying amount, an impairment loss is recognized.
Impairment losses are recognized in Financial expenses in the
income statement.
Group contributions
The Parent company recognizes Group contributions in
accordance with RFR 2. Group contributions received and
paid are recognized under appropriations in the income
statement. The tax effect of Group contributions is recog
nized in accordance with IAS 12 in the income statement.
Contingent liabilities
The Parent company has provided guarantees to the benefit
of its subsidiaries. Such an obligation is classified as a financial
guarantee in accordance with IFRS. For these guarantees, the
Parent company applies the alternative rule in RFR 2, report
ing these guarantees as a contingent liability.
NOTE 2 Revenue from contracts with customers and segment information
Disaggregation of revenue from contracts with customers
Sales by product group
SEK M
EMEIA
Americas
Asia Pacific
Global Technologies
Entrance Systems
Other
Group
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Mechanical locks, lock systems and fittings
11,653
11,518
15,691
21,769
5,286
5,135
416
443
9
7
–780
–874
32,275
37,999
Electromechanical and electronic locks
8,002
8,401
9,281
10,740
2,193
1,636
22,510
23,708
1,304
1,231
–1,128
–853
42,161
44,864
Security doors and hardware
4,722
4,774
12,953
11,718
2,606
2,257
173
28
3,984
4,359
–150
–182
24,288
22,955
Entrance automation
454
405
84
113
200
92
–
–
41,369
43,852
–114
–119
41,992
44,344
Total
24,831
25,098
38,009
44,340
10,284
9,120
23,099
24,179
46,665
49,451
–2,173
–2,027
140,716
150,162
Sales by continent
SEK M
EMEIA
Americas
Asia Pacific
Global Technologies
Entrance Systems
Other
Group
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Europe
21,211
21,475
85
87
568
686
6,243
6,844
18,395
19,166
–841
–1,000
45,661
47,257
North America
691
681
34,201
39,951
2,436
2,122
11,089
11,377
25,136
26,765
–871
–541
72,682
80,354
Central and South America
99
106
3,448
3,891
48
52
900
793
159
284
–37
–55
4,617
5,071
Africa
973
1,045
10
7
14
7
662
932
68
75
–36
–42
1,691
2,025
Asia
1,689
1,641
249
372
4,284
3,518
2,894
3,013
1,509
1,647
–226
–239
10,399
9,952
Oceania
168
150
17
32
2,934
2,736
1,310
1,221
1,399
1,514
–162
–150
5,666
5,503
Total
24,831
25,098
38,009
44,340
10,284
9,120
23,099
24,179
46,665
49,451
–2,173
–2,027
140,716
150,162
Customer sales by country
SEK M
Group
2023
2024
US
64,522
71,151
France
7,409
7,077
United Kingdom
6,410
6,676
Canada
5,540
6,440
Germany
5,380
5,743
Sweden
5,018
5,035
Australia
4,646
4,392
Netherlands
3,051
3,121
Mexico
2,620
2,763
China
3,165
2,582
Brazil
2,218
2,291
Switzerland
1,674
1,957
Spain
1,599
1,876
Belgium
1,924
1,876
Finland
1,859
1,840
Denmark
1,619
1,741
Poland
1,521
1,557
Italy
1,236
1,464
SEK M
Group
2023
2024
Norway
1,341
1,310
India
1,163
1,252
South Korea
1,290
1,238
Austria
886
1,046
New Zealand
976
1,044
Ireland
925
903
United Arab Emirates
664
879
South Africa
637
771
Czech Republic
643
617
Saudi Arabia
669
566
Turkey
579
566
Singapore
491
504
Chile
492
482
Hong Kong
380
452
Colombia
401
397
Portugal
378
389
Israel
360
382
Peru
191
374
SEK M
Group
2023
2024
Japan
284
344
Hungary
282
311
Croatia
228
306
Romania
262
305
Taiwan
311
303
Estonia
268
285
Kenya
142
272
Thailand
266
259
Guatemala
206
253
Costa Rica
185
239
Philippines
330
219
Nigeria
116
176
Malaysia
186
170
Malta
162
157
Other countries
3,610
3,809
Total
140,716
150,162
Note 1 continued
127
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Revenue recognition
Of the Group’s revenue in 2024, SEK 22,197 M (19,365) has
been recognized over time, while SEK 127,965 M (121,351)
related to commitments transferred at a certain point in time.
Contract assets and contract liabilities
The Group recognizes the following revenue-related contract
assets and contract liabilities:
Contract assets
SEK M
Group
2023
2024
Accrued revenue
974
1,104
Total
974
1,104
Contract liabilities
SEK M
Group
2023
2024
Non-current advances from customers and
deferred revenue
70
78
Current advances from customers and
deferred revenue
3,474
3,982
Total
3,543
4,060
Contract assets increased by SEK 130 M during the year, of
which acquired companies contributed SEK 5 M. Contract
liabilities have increased by SEK 517 M. Acquired and discon
tinued companies resulted in a net increase in contract liabili
ties of SEK 592 M during the year. The total contract liability at
31 December 2023 of SEK 3,543 M was to a large extent rec
ognized as income in 2024.
Remaining performance obligations
The total transaction price allocated to unsatisfied perfor
mance obligations at the reporting date amounts to SEK
25,885 M. Of this amount, SEK 24,017 M is expected to be rec
ognized as revenue in 2024, while an estimated SEK 1,868 M
will be recognized as revenue in 2025 or later.
At 31 December 2023 the total transaction price allocated
to unsatisfied performance obligations was SEK 22,974 M.
Segment assets and liabilities
EMEIA
Americas
Asia Pacific
Global Technologies
Entrance Systems
Other
Group
SEK M
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Segment assets
27,179
29,023
74,774
78,466
12,074
11,661
31,487
36,418
47,870
58,342
2,514
4,738
195,898
218,648
- of which goodwill
13,232
14,552
32,382
36,524
5,379
5,582
18,989
21,504
22,891
28,711
–
–
92,873
106,874
Unallocated assets
453
4,957
Total assets
196,351
223,605
Segment liabilities
7,476
7,472
12,705
12,877
3,237
2,757
6,111
7,159
11,395
14,435
61,466
68,679
102,388
113,379
Unallocated liabilities
2,319
3,146
Total
104,707
116,525
Note 2 continued
NOTE 3 Auditors’ fees
SEK M
Group
Parent company
2023
2024
2023
2024
Audit assignment
EY
90
83
11
15
Others
33
52
–
–
Audit-related services in addition to audit assign
ment
EY
0
0
0
0
Tax advice
EY
3
4
–
–
Others
27
27
3
3
Other services
EY
6
9
4
5
Others
7
70
2
1
Total
166
245
20
23
The auditors’ fee for EY in Sweden during the year was SEK 22 M (14) and the fee for extra
services was SEK 0 M (0).
NOTE 4 Other operating income and expenses
SEK M
Group
2023
2024
Change in insurance reserve
66
75
Remeasurement of deferred considerations
30
46
Profit/loss on sales of non-current assets
59
107
Restructuring costs
–42
–
Business-related taxes
–65
–29
Transaction expenses from acquisitions
–923
–307
Exchange differences
–113
–107
Other, net
–405
231
Total
–1,393
17
In addition to the above, the significant item Capital gain on divestment of subsidiaries is
recognized separately in the income statement.
Parent company
Other operating income in the Parent company consists mainly of franchise and royalty
revenues from subsidiaries.
128
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 5 Share of earnings in associates
SEK M
Group
2023
2024
Goal Co., Ltd
7
22
PT Jasuindo Arjo Wiggins Security
11
12
Saudi Crawford Doors Ltd
–
6
Skidata Parking System Ltd
–
2
Others
–
4
Total
18
45
NOTE 6 Recognition of leases for the Parent
company
The Parent company recognizes leases in accordance RFR 2,
which means that lease payments are expensed in a straight
line over the lease term. Leases in the Parent company mainly
relate to rented premises and cars.
SEK M
Parent company
2023
2024
Lease payments during the year
19
19
Total
19
19
Nominal value of agreed future lease
payments:
Due for payment in:
(2024) 2025
18
25
(2025) 2026
18
23
(2026) 2027
5
15
(2027) 2028
–
11
(2028) 2029
–
11
Total
41
85
NOTE 7 Expenses by nature and function
In the income statement, expenses are broken down by func
tion, except for significant items that have been recognized
separately: Impairment of goodwill and other acquisition-re
lated intangible assets is attributable to the Selling expenses
function, which amounts to SEK 24,105 M (23,668), including
these impairments. The expenses per function broken down
into the main natures are shown below.
SEK M
Group
2023
2024
Remuneration of employees (Note 35)
40,783
45,184
Direct material costs
50,364
50,542
Depreciation, amortization and impairment
(Notes 8, 14, 15)
7,646
5,645
Other purchase expenses
22,350
24,602
Total
121,144
125,974
NOTE 8 Depreciation, amortization and impairment
SEK M
Group
Parent company
2023
2024
2023
2024
Intangible assets
4,195
1,865
1,210
1,089
Machinery
905
917
–
–
Equipment
544
606
16
17
Buildings
393
350
–
–
Land improvements
3
7
–
–
Right-of-use assets
1,606
1,900
–
–
Total
7,646
5,645
1,226
1,105
NOTE 9 Exchange differences in the income statement
SEK M
Group
Parent company
2023
2024
2023
2024
Exchange differences recognized in operating income
–102
–82
48
19
Exchange differences recognized in financial expenses
30
29
2
–3
Total
–72
–53
50
16
NOTE 10 Financial income
SEK M
Group
Parent company
2023
2024
2023
2024
Dividends received from subsidiaries
–
–
1,136
6,008
Dividends received from associates
–
0
3
3
Capital gain/loss on sale of subsidiaries
–
–
0
0
Fair value adjustments shares and interests
–
–
–
–
Intra-Group interest income
–
–
709
1,489
External interest income and similar items
139
119
–
0
Other financial income
17
13
0
0
Total
157
133
1,848
7,500
NOTE 11 Financial expenses
SEK M
Group
Parent company
2023
2024
2023
2024
Interest expenses¹
–2,289
–3,136
–1,849
–3,091
Interest expenses on lease liabilities
–183
–275
–
–
Interest expenses on pension provisions, net
–52
–56
–
–
Exchange differences on financial items
30
29
2
–3
Other financial expenses
–194
–77
–143
–23
Total
–2,687
–3,515
–1,990
–3,117
¹ Of which SEK -244 M (253) is attributable to changes in value of derivative instruments, not hedge accounting, for the
Group.
NOTE 12 Tax on income
SEK M
Group
Parent company
2023
2024
2023
2024
Current tax
–6,321
–4,919
–676
–580
Tax attributable to prior years
118
–206
2
0
Withholding tax
–15
–46
–1
–3
Deferred tax
604
–102
–22
2
Total
–5,615
–5,272
–696
–581
Explanation for the difference between nominal Swedish tax rate and effective tax rate based
on income before tax:
Percent
Group
Parent company
2023
2024
2023
2024
Swedish income tax rate
21
21
21
21
Effect of foreign tax rates
3
3
–
1
Non-taxable income/non-deductible expenses
1
1
–9
–15
Exercised/new, not yet measured tax loss carryforwards
1
1
–
–
Tax attributable to prior years
–1
–1
–
–
Items affecting comparability (see Note 13)
6
0
–
–
Other
–1
0
–
–
Effective tax rate in income statement
29
25
12
7
OECD Pillar Two model rules
ASSA ABLOY is subject to the OECD Pillar Two model rules. The legislation requires the Group to
pay an additional tax on the difference between their GloBE effective tax rate per jurisdiction
and the minimum tax rate of 15 percent. Pillar Two legislation has entered into force in Sweden,
the jurisdiction where ASSA ABLOY is registered.
The Group applies the exemption to recognize and disclose deferred tax assets and tax lia
bilities related to income taxes from Pillar Two, as set out in the amendments to IAS 12 issued in
May 2023.
ASSA ABLOY has evaluated its exposure to Pillar Two legislation for the 2024 financial year.
Based on this, the total additional tax levied for the 2024 financial year will be insignificant.
A majority of the entities in the Group have an effective tax rate exceeding 15 percent, for
which reason ASSA ABLOY is only subject to additional tax on operations in a few jurisdictions.
These jurisdictions are mostly jurisdictions with a nominal corporate tax rate below 15 percent,
or jurisdictions with a nominal corporate tax rate of around 15 percent. This is on account of
the effect of specific adjustments resulting from Pillar Two legislation, which give rise to differ
ent effective tax rates from those calculated in accordance with paragraph 86 of IAS 12.
129
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 13 Earnings per share
Earnings per share before and after dilution
SEK M
Group
2023
2024
Earnings attributable to the Parent company’s shareholders
13,633
15,639
Net profit
13,633
15,639
Weighted average number of outstanding shares (thousands)
1,110,776
1,110,776
Earnings per share (SEK)
12.27
14.08
None of the Group’s outstanding long-term incentive programs are expected to result in
significant dilution in the future.
Earnings per share before and after dilution and excluding items affecting comparability
SEK M
Group
2023
2024
Earnings attributable to the Parent company’s shareholders
13,633
15,639
Items affecting comparability
Impairment of goodwill and other acquisition-related intangible assets
2,271
–
Tax effect of the impairment of goodwill and other acquisition-related intangible
assets
–143
–
Capital gain/loss from the divestment of Emtek and Smart Residential, including
exit costs
–3,588
21
Tax effect of the capital gain/loss from the divestment of Emtek and Smart
Residential, including exit costs
1,522
–5
Restructuring costs
1,250
–
Tax effect of restructuring costs
–253
–
Recognition of fair value measurement in the acquisition of HHI
466
–
Tax effect of recognition of fair value measurement in the acquisition of HHI
–117
–
Total items affecting comparability after tax
1,409
15
- of which items affecting comparability before tax
400
21
- of which tax effect of items affecting comparability
1,009
–5
Net profit excluding items affecting comparability
15,042
15,654
Weighted average number of outstanding shares (thousands)
1,110,776
1,110,776
Earnings per share excluding items affecting comparability (SEK)
13.54
14.09
NOTE 14 Intangible assets
2024, SEK M
Group
Parent company
Goodwill
Brands
Other intangible
assets
Total
Intangible assets
Opening accumulated acquisition cost
99,092
25,433
21,675
146,200
11,962
Purchases
–
0
278
279
9
Acquisitions of subsidiaries
8,474
1,436
1,293
11,203
–
Divestments of subsidiaries
–151
–
–
–151
–
Sales, disposals and adjustments
–
–
–353
–353
–
Reclassifications
–
1
34
35
–
Exchange rate differences
6,177
2,086
1,420
9,683
–
Closing accumulated acquisition cost
113,593
28,958
24,346
166,896
11,971
Opening accumulated amortization and impairment
–6,219
–1,322
–10,956
–18,496
–9,187
Acquisitions of subsidiaries
–30
–3
–64
–98
Divestments of subsidiaries
–
–
–
–
–
Sales, disposals and adjustments
–
0
225
225
–
Depreciation and amortization
–
–1
–1,857
–1,859
–1,089
Impairment
–
–
–6
–6
–
Impairment recognized in restructuring reserve
–
–
–
–
–
Reclassifications
–
0
5
5
–
Exchange rate differences
–469
–95
–699
–1,263
–
Closing accumulated amortization and impairment
–6,719
–1,421
–13,351
–21,491
–10,275
Carrying amount
106,874
27,537
10,995
145,405
1,695
2023, SEK M
Group
Parent company
Goodwill
Brands
Other intangible
assets
Total
Intangible assets
Opening accumulated acquisition cost
80,728
10,217
15,285
106,230
11,959
Purchases
–
1
270
270
3
Acquisitions of subsidiaries
25,464
16,625
7,250
49,340
–
Divestments of subsidiaries
–3,218
–253
–255
–3,725
–
Sales, disposals and adjustments
–
–3
–175
–178
–
Reclassifications
–
28
–8
20
–
Exchange rate differences
–3,882
–1,182
–693
–5,756
–
Closing accumulated acquisition cost
99,092
25,433
21,675
146,200
11,962
Opening accumulated amortization and impairment
–4,854
–1,323
–9,155
–15,333
–7,976
Divestments of subsidiaries
–
–
135
135
–
Sales, disposals and adjustments
–
–
135
135
–
Depreciation and amortization
–
–2
–1,624
–1,626
–1,135
Impairment
–1,741
–86
–660
–2,487
–75
Impairment recognized in restructuring reserve
–
0
–82
–82
–
Exchange rate differences
376
89
297
762
–
Closing accumulated amortization and impairment
–6,219
–1,322
–10,956
–18,496
–9,187
Carrying amount
92,873
24,112
10,719
127,704
2,775
130
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Other intangible assets consist mainly of customer relations
and technology. The carrying amount of intangible assets with
an indefinite useful life, excluding goodwill, amounts to SEK
27,456 M (24,077) and relates to brands.
Useful life has been defined as indefinite where the time
period, during which an asset is deemed to contribute eco
nomic benefits, cannot be determined.
Impairment testing of goodwill and intangible assets
with indefinite useful life
Goodwill and intangible assets with an indefinite useful life
are allocated to the Group’s Cash Generating Units (CGUs).
Since 2023, the Group has had six CGUs, equivalent to the
Group’s five divisions except for Global Technologies, whose
two business units, HID and Global Solutions, each constitute
a CGU. As a result of the acquisitions and strategy in recent
years, Global Solutions and HID have started to differ in terms
of business model and technology, and their cash flows have
become more distinct from each other.
For each cash-generating unit, the Group tests goodwill
and intangible assets with an indefinite useful life for impair
ment annually and when events or circumstances indicate
that the carrying amount may not be recoverable. Recover
able amounts for Cash Generating Units have been deter
mined by calculating value in use. These calculations are
based on estimated future cash flows, which in turn are based
on financial forecasts for a five-year period. Cash flows beyond
the forecast period are extrapolated using estimated growth
rates according to the information below.
Material assumptions used to calculate values in use:
• Forecast operating margin.
• Growth rate for extrapolating cash flows beyond the
forecast period.
• Discount rate after tax used for estimated future cash
flows.
Management has determined the forecast operating margin
based on previous results and expectations of future market
development. A growth rate of 3 percent (3) has been used
for all CGUs to extrapolate cash flows beyond the forecast
period. This growth rate is considered to be a conservative
estimate. Further, an average discount rate in local currency
after tax has been used in the calculations. The difference in
value compared with using a discount rate before tax is not
deemed to be material. The discount rate has been deter
mined by calculating the weighted average cost of capital
(WACC) for each cash generating unit.
The impact of climate-related risks on future cash flows has
also been considered at CGU level, including commitments
Note 14 continued
for capital and operating expenditure. No significant financial
impact on the current year’s impairment assessment was
identified.
2024
A discount rate after tax of 8.0 percent has been used for all
cash-generating units. No impairment was recognized for
goodwill and other intangible assets during the year.
Goodwill and intangible assets with an indefinite useful life were allocated to the Cash Generating Units as summarized in the
table below:
2024, SEK M
EMEIA
Americas
Asia Pacific
HID
Global
Solutions
Entrance
Systems
Total
Goodwill
14,552
36,524
5,582
17,154
4,350
28,711
106,874
Intangible assets with indefinite
useful life
469
17,335
1,277
1,356
273
6,746
27,456
Total
15,021
53,859
6,860
18,510
4,623
35,457
134,330
2023
Overall, the discount rate after tax used varied between 8.0
and 9.0 percent (EMEIA 8.0 percent, Americas 8.0 percent,
Asia Pacific 9.0 percent, HID 8.0 percent, Global Solutions 8.0
percent and Entrance Systems 8.0 percent). In 2023, goodwill
and other intangible assets were impaired in the amount of
SEK 2,271 M, mainly attributable to Citizen ID in the Global
Technologies division.
Goodwill and intangible assets with an indefinite useful life were allocated to the Cash Generating Units as summarized in the
table below:
2023, SEK M
EMEIA
Americas
Asia Pacific
HID
Global
Solutions
Entrance
Systems
Total
Goodwill
13,232
32,382
5,379
16,179
2,810
22,891
92,873
Intangible assets with indefinite
useful life
409
15,743
1,238
939
125
5,624
24,077
Total
13,642
48,125
6,617
17,118
2,935
28,514
116,950
Sensitivity analysis
A sensitivity analysis has been carried out for each Cash
Generating Unit. The results of this analysis are summarized
below.
2024
If the estimated operating margin after the end of the forecast
period had been one percentage point lower than the man
agement’s estimate, the total recoverable amount would
have been 5 percent lower (EMEIA 6 percent, Americas 4 per
cent, Asia Pacific 9 percent, HID 5 percent, Global Solutions 5
percent, and Entrance Systems 5 percent).
If the estimated growth rate used to extrapolate cash flows
beyond the forecast period had been one percentage point
lower than the basic assumption of 3 percent, the total recov
erable amount would have been 13 percent lower (EMEIA 13
percent, Americas 13 percent, Asia Pacific 13 percent, HID 13
percent, Global Solutions 13 percent, and Entrance Systems
13 percent).
If the estimated weighted capital cost used for the Group’s
discounted cash flows had been one percentage point higher
than the basic assumption of 8.0 percent, the total recover
able amount would have been 17 percent lower (EMEIA 17
percent, Americas 17 percent, Asia Pacific 17 percent, HID 17
percent, Global Solutions 17 percent, and Entrance Systems
17 percent).
These calculations are hypothetical and should not be
viewed as an indication that these factors are any more or less
likely to change. The sensitivity analysis should therefore be
interpreted with caution.
None of the hypothetical cases above would lead to an
impairment of goodwill in an individual Cash Generating Unit.
2023
If the estimated operating margin after the end of the forecast
period had been one percentage point lower than the man
agement’s estimate, the total recoverable amount would
have been 5 percent lower (EMEIA 5 percent, Americas 4 per
cent, Asia Pacific 8 percent, HID 4 percent, Global Solutions 5
percent, and Entrance Systems 5 percent).
If the estimated growth rate used to extrapolate cash flows
beyond the forecast period had been one percentage point
lower than the basic assumption of 3 percent, the total recov
erable amount would have been 13 percent lower (EMEIA 13
percent, Americas 13 percent, Asia Pacific 10 percent, HID 13
percent, Global Solutions 13 percent, and Entrance Systems
13 percent).
If the estimated weighted capital cost used for the Group’s
discounted cash flows had been one percentage point higher
than the basic assumption of 8.0 to 9.0 percent, the total
recoverable amount would have been 17 percent lower
(EMEIA 17 percent, Americas 17 percent, Asia Pacific 15 per
cent, HID 17 percent, Global Solutions 17 percent, and
Entrance Systems 17 percent).
These calculations are hypothetical and should not be
viewed as an indication that these factors are any more or less
likely to change. The sensitivity analysis should therefore be
interpreted with caution.
None of the hypothetical cases above would lead to an
impairment of goodwill in an individual Cash Generating Unit.
131
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 15 Property, plant and equipment
2024, SEK M
Group
Parent company
Buildings
Land and land
improvements
Machinery
Equipment
Construction in
progress
Total
Equipment
Opening accumulated acquisition cost
8,369
1,284
12,949
6,007
1,456
30,066
151
Purchases
100
0
412
499
1,273
2,283
11
Acquisitions of subsidiaries
239
21
444
230
8
942
–
Divestments of subsidiaries
–
–
–2
–42
–
–43
–
Sales and disposals
–387
–14
–794
–613
–64
–1,871
–6
Reclassifications
412
23
823
189
–1,484
–37
–
Exchange rate differences
549
91
973
372
77
2,062
–
Closing accumulated acquisition cost
9,282
1,405
14,805
6,641
1,266
33,400
155
Opening accumulated depreciation and impairment
–4,616
–127
–9,354
–4,508
–
–18,606
–118
Acquisitions of subsidiaries
–95
–1
–238
–150
–
–484
–
Divestments of subsidiaries
0
–
2
28
–
30
–
Sales and disposals
271
0
759
578
–
1,609
6
Depreciation and amortization
–345
–7
–898
–571
–
–1,821
–17
Impairment
–5
–
–21
–33
–
–59
–
Impairment recognized in restructuring reserve
0
–
2
–2
–
0
–
Reclassifications
–1
–2
–12
12
–
–3
–
Exchange rate differences
–318
–6
–756
–333
–
–1,413
–
Closing accumulated depreciation and impairment
–5,109
–143
–10,515
–4,980
–
–20,747
–128
Carrying amount
4,173
1,262
4,290
1,662
1,266
12,653
27
2023, SEK M
Group
Parent company
Buildings
Land and land
improvements
Machinery
Equipment
Construction in
progress
Total
Equipment
Opening accumulated acquisition cost
7,787
1,258
12,205
5,664
1,232
28,146
147
Purchases
310
1
363
407
1287
2,369
5
Acquisitions of subsidiaries
524
79
530
214
75
1,422
–
Divestments of subsidiaries
–83
–16
–156
–53
–30
–339
–
Sales and disposals
–103
–19
–227
–190
–45
–585
–2
Reclassifications
144
14
693
146
–1,018
–20
–
Exchange rate differences
–209
–33
–459
–181
–45
–927
–
Closing accumulated acquisition cost
8,369
1,284
12,949
6,007
1,456
30,066
151
Opening accumulated depreciation and impairment
–4,431
–128
–9,145
–4,336
–
–18,040
–104
Divestments of subsidiaries
24
2
118
38
–
182
–
Sales and disposals
69
–
225
169
–
463
2
Depreciation and amortization
–289
–3
–797
–525
–
–1,613
–16
Impairment
–23
–
–84
–4
–
–111
–
Impairment recognized in restructuring reserve
–81
–
–24
–16
–
–120
–
Reclassifications
–
–
–
–
–
–
–
Exchange rate differences
114
2
352
165
–
633
–
Closing accumulated depreciation and impairment
–4,616
–127
–9,354
–4,508
–
–18,606
–118
Carrying amount
3,753
1,157
3,596
1,499
1,456
11,460
33
NOTE 16 Right-of-use assets
The following amounts regarding right-of-use assets are
recognized in the balance sheet.
SEK M
Group
2023
2024
Buildings
4,253
4,807
Machinery
32
31
Vehicles
894
1,302
Other equipment
117
155
Total
5,296
6,295
Additions to right-of-use assets for 2024 amounted to SEK
2,689 M (3,440).
The following amounts related to leases are recognized in
the income statement:
SEK M
Group
2023
2024
Amortization attributable to right-of-use
assets:
Buildings
–1,164
–1,352
Machinery
–11
–12
Vehicles
–396
–491
Other equipment
–34
–45
Operating expenses attributable to:
Short-term leases
–54
–66
Leases of low-value assets
–23
–12
Variable lease payments are not included in
lease liabilities
–30
–23
Interest expenses relating to:
Lease liabilities
–183
–275
Total
–1,896
–2,275
The total cash flow attributable to leases in 2024 was SEK
2,072 M (1,726).
132
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 17 Shares in subsidiaries
Company name
Corporate identity number,
Registered office
Parent company
Number of
shares
Share of
equity, %
Carrying
amount,
SEK M
ASSA Sverige AB
556061-8455, Eskilstuna
70
100
197
ASSA ABLOY Entrance Systems AB
556204-8511, Landskrona
1,000
100
287
ASSA ABLOY Global Solutions AB
556666-0618, Stockholm
1,306,891
100
475
ASSA ABLOY Kredit AB
556047-9148, Stockholm
400
100
6,036
ASSA ABLOY Holding AB
559180-8646, Stockholm
6,500
100
7,813
ASSA ABLOY Försäkrings AB
516406-0740, Stockholm
60,000
100
185
ASSA ABLOY Asia Holding AB
556602-4500, Stockholm
1,000
100
2,001
ASSA ABLOY OY
1094741-7, Joensuu
800,000
100
4,257
ASSA ABLOY Norge A/S
979207476, Moss
150,000
100
538
ASSA ABLOY Danmark A/S
CVR 10050316, Herlev
60,500
100
376
ASSA ABLOY Deutschland GmbH
HR B 66227, Berlin
1
100
1,086
ASSA ABLOY Nederland Holding B.V.
52153924, Raamsdonksveer
180
100
771
ASSA ABLOY France SAS
412140907, R.C.S. Versailles
15,184,271
100
1,964
HID Global Switzerland S.A.
CH-232-0730018-2, Granges
2,500
100
47
ASSA ABLOY Entrance Systems Austria GmbH
A-2320 Schwechat
1
100
109
ASSA ABLOY Ltd
2096505, Willenhall
1,330,000
100
3,091
Mul-T-Lock Ltd
520036583, Yavne
13,787,856
100
901
ASSA ABLOY Holdings (SA) Ltd
1948/030356/06, Roodepoort
100,220
100
447
ASSA ABLOY Inc
039347-83, Oregon
100
100
9,157
ABLOY Canada Inc.
1148165260, Montreal
1
100
0
ASSA ABLOY of Canada Ltd
104722749 RC0003, Ontario
9,621
100
511
ASSA ABLOY Australia Pacific Pty Ltd
ACN 095354582, Oakleigh, Victoria
48,190,000
100
844
Cerramex, S.A de C.V
CER8805099Y6, Mexico City
4
0¹
0
ASSA ABLOY Mexico, S.A de CV
AAM961204CI1, Mexico City
50,108,549
100
1,329
Cerraduras y Candados Phillips S.A de C.V
CCP910506LK2, Mexico City
112
0¹
0
ASSA ABLOY Colombia S.A.S
860009826-8, Bogota
3,115,080
100
203
ASSA ABLOY Asia Pacific Ltd
53451, Hong Kong
999,999
99¹
72
ASSA ABLOY Entrance Systems IDDS AB
556071-8149, Landskrona
25,000,000
100
5,323
ASSA ABLOY Portugal, Unipessoal, Lda (Portugal)
PT500243700, Alfragide
1
100
23
ASSA ABLOY Holding Italia S.p.A.
IT01254420597, Rome
650,000
100
1,019
HID SA (Argentina)
CUIT 30-61783980-2, Buenos Aires
240
2¹
0
HID Global SAS
FR21341213411, Nanterre
1,000,000
100
2,672
ASSA ABLOY East Africa Ltd
C.20402, Nairobi
13,500
100
90
Omni-ID Ltd
6163600, Bristol
2,200,000
100
26
ASSA ABLOY Industrietore GmbH
574125b, Schwechat
1,000
100
0
HID Ireland Limited
752101, Galway
1,000,000
100
88
HID Global Tanzania
140894, Dar Es Salaam
459
100
0
Total
51,938
¹ The Group’s holdings amount to 100 percent.
NOTE 18 Investments in associates
Company name
Country of registration
Group
Number of
shares
Share
of equity
2023, %
Share
of equity
2024, %
Carrying
amount
2023, SEK M
Carrying
amount
2024, SEK M
Goal Co., Ltd
Japan
2,778,790
46
46
557
571
PT Jasuindo Arjo Wiggins Security
Indonesia
1,533,412
49
49
46
61
Skidata (India) Private Ltd
India
9,608
–
49
–
22
Skidata Parking System Ltd
United Kingdom
2,600
–
26
–
30
SARA Loading Bay Ltd
United Kingdom
4,990
50
50
13
14
Saudi Crawford Doors Ltd
Saudi Arabia
800
40
40
5
5
Others
1
7
Total
622
710
NOTE 19 Deferred tax
SEK M
Group
2023
2024
Deferred tax assets
Non-current assets
288
274
Pension provisions
232
297
Tax loss carryforwards etc.
84
75
Other deferred tax assets
2,345
2,894
Offset deferred tax assets
–1,087
–1,444
Deferred tax assets
1,863
2,097
Deferred tax liabilities
Non-current assets
2,197
2,155
Pension provisions
192
161
Other deferred tax liabilities
1,689
2,451
Offset deferred tax liabilities
–1,087
–1,444
Deferred tax liabilities
2,991
3,322
Deferred tax assets, net
–1,128
–1,225
The items Other deferred tax assets and Other deferred tax
liabilities include deferred tax on right-of-use assets and lease
liabilities from leases amounting to SEK 1,402 M (1,034) and
SEK 1,341 M (1,004) respectively.
Change in deferred tax
SEK M
Group
2023
2024
Opening balance
–1,472
–1,128
Acquisitions and divestments
–276
27
Recognized in income statement
604
–102
Actuarial gain/loss on post-employment
benefit obligation
7
48
Exchange differences
9
–70
Closing balance
–1,128
–1,225
The Group’s total tax loss carryforwards amount to SEK 7,743
M, of which SEK 7,102 M (5,757) are tax loss carryforwards for
which deferred tax assets have not been measured, as the
extent to which it is likely that future taxable profit will be
available against which the tax loss carryforwards can be uti
lized is deemed uncertain.
The unmeasured losses relate to companies in the following
countries:
SEK M
SEK M
2024
2024
Angola
3
Netherlands
91
Australia
3
Nigeria
3
Belgium
3
Portugal
49
Brazil
841
Switzerland
21
Chile
66
Slovakia
80
Denmark
56
St Lucia
2
Philippines
4
United Kingdom
326
Finland
1
South Africa
73
France
1,020
Tanzania
16
Indonesia
8
Thailand
17
India
79
Czech Republic
19
Ireland
1
Turkey
41
Israel
41
Germany
64
Italy
470
Uganda
34
China
3,308
Vietnam
10
Malaysia
11
Austria
286
Mexico
55
Total
7,102
Of the total tax loss carryforwards and other tax credits, SEK
3,909 M is due within five years, while SEK 3,834 M has no due
date.
133
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 20 Other financial assets
SEK M
Group
Parent company
2023
2024
2023
2024
Investments in associates
–
–
461
462
Other shares and interests
115
325
–
–
Non-current interest-bearing
receivables
223
224
–
–
Other non-current receivables
75
148
41
44
Total
412
698
503
505
NOTE 21 Inventories
SEK M
Group
2023
2024
Materials and supplies
5,777
5,939
Work in progress
3,689
4,051
Finished goods
8,981
10,875
Advances paid
156
155
Total
18,603
21,020
Impairment of inventories during the year amounted to SEK
534 M (1,434).
NOTE 22 Trade receivables
SEK M
Group
2023
2024
Trade receivables
23,844
26,307
Loss allowance
–2,910
–2,864
Total
20,934
23,444
Trade receivables by currency
SEK M
Group
2023
2024
USD
9,446
11,020
EUR
4,711
5,279
GBP
1,058
1,092
CAD
743
729
SEK
717
720
AUD
603
513
CNY
592
466
BRL
324
316
Other currencies
2,740
3,310
Total
20,934
23,444
Maturity analysis
SEK M
Group
2023
2024
Current trade receivables
16,759
18,862
Trade receivables due:
< 3 months
4,719
4,927
3–12 months
1,136
1,269
>12 months
1,230
1,250
7,085
7,445
Impaired trade receivables:
Not yet due
–767
–788
Trade receivables due:
< 3 months
–639
–596
3–12 months
–275
–232
>12 months
–1,228
–1,247
–2,910
–2,864
Total
20,934
23,444
Change in loss allowance for trade receivables
SEK M
Group
2023
2024
Opening balance
2,145
2,910
Acquisitions and divestments of subsidiaries
743
29
Actual losses
–351
–288
Reversal of unused amounts
–211
–362
Provision for bad debts
727
365
Exchange rate differences
–143
211
Closing balance
2,910
2,864
NOTE 23 Parent company’s equity and proposed
distribution of earnings
The Parent company’s equity is split between restricted and
non-restricted equity. Restricted equity consists of share capi
tal, revaluation reserve, statutory reserve and the fund for
development expenses. The statutory reserve contains premi
ums (amounts received from share issues that exceed the
nominal value of the shares) relating to shares issued up to
2005. Non-restricted equity consists of share premium
reserves, retained earnings and net income for the year.
Earnings of SEK 17,079,458,049 are at the disposal of the
Annual General Meeting. The Board of Directors proposes a
dividend for the 2024 financial year of SEK 5.90 per share, SEK
6,553,580,371 in total, and that the remainder, SEK
10,525,877,679, be carried forward to the new financial year.
NOTE 24 Share capital, number of shares and dividend per share
Number of shares, thousands
Share capital, SEK K
Series A shares
Series B shares
Total
Opening balance at 1 January 2023
57,525
1,055,052
1,112,576
370,859
Closing balance at 31 December 2023
57,525
1,055,052
1,112,576
370,859
Number of votes, thousands
575,259
1,055,052
1,630,311
Opening balance at 1 January 2024
57,525
1,055,052
1,112,576
370,859
Closing balance at 31 December 2024
57,525
1,055,052
1,112,576
370,859
Number of votes, thousands
575,259
1,055,052
1,630,311
All shares have a par value of around SEK 0.33 (0.33) and give
shareholders equal rights to the company’s assets and earn
ings. All shares are entitled to dividends subsequently deter
mined. Each Series A share carries ten votes and each Series B
share one vote. All issued shares are fully paid.
The weighted average number of shares was 1,110,776
(1,110,776) during the year. None of the Group’s outstanding
long-term incentive programs are expected to result in signifi
cant dilution in the future. The total number of treasury shares
at 31 December 2024 amounted to 1,800,000. No shares
have been repurchased during the year.
The dividend paid during the financial year totaled SEK
5,998 M (5,332), equivalent to SEK 5.40 (4.80) per share.
134
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 25 Post-employment employee benefits
Post-employment employee benefits include pensions and
medical benefits. Pension plans are classified as either defined
benefit plans or defined contribution plans. Pension obliga
tions in the balance sheet mainly relate to defined benefit
plans. ASSA ABLOY has defined benefit pension plans in a
number of countries. The most comprehensive defined bene
fit plans are in the US, the UK and Switzerland.
The defined benefit plans in the US, the United Kingdom
and Switzerland are backed by pension fund assets. Unfunded
plans for post-employment medical benefits also exist in the
US, and are recognized in the same way as defined benefit
pension plans.
The operations of pension funds are regulated by national
regulations and practice. The responsibility for monitoring
the pension plans and their assets rests mainly with the
boards of the pension funds, but can also rest more directly
with the company. The Group has an overall policy for the lim
its within which asset allocation should be made. Each pen
sion fund adjusts its local asset allocation according to the
nature of the local pension obligation, particularly the
remaining term and the breakdown between active members
and pensioners. The Group has not changed the processes
used for managing these risks.
Specification of defined benefit pension plans, post-employment medical benefits and plan assets by country
Specification of defined benefits, SEK M
United Kingdom
Switzerland
US
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Present value of funded obligations
3,506
3,545
1,619
1,808
1,831
1,870
638
742
7,595
7,964
Fair value of plan assets
–4,171
–4,235
–1,358
–1,522
–2,061
–2,315
–153
–251
–7,742
–8,322
Net value of funded plans
–665
–690
261
287
–230
–445
486
491
–147
–358
Present value of unfunded obligations
–
–
–
–
–
–
1,082
1,302
1,082
1,302
Present value of unfunded medical benefits
–
–
–
–
479
506
3
3
483
510
Net value of defined benefit pension plans
–665
–690
261
287
250
61
1,571
1,797
1,418
1,454
Provisions for defined contribution pension plans
–
–
–
–
6
3
11
20
17
24
Total
–665
–690
261
287
255
65
1,583
1,817
1,435
1,478
Key actuarial assumptions
Key actuarial assumptions (weighted average), %
United Kingdom
Switzerland
US
2023
2024
2023
2024
2023
2024
Discount rate
4.8
5.5
1.7
1.1
4.9
5.5
Expected annual salary increases
n/a
n/a
1.1
1.1
4.0
4.0
Expected annual pension increases
3.6
3.7
0.0
0.0
1.5
1.5
Expected annual medical benefit increases
n/a
n/a
n/a
n/a
5.0
5.0
Expected annual inflation
3.0
3.2
1.3
1.0
n/a
n/a
The investments are well diversified so that depreciation of
an individual investment should not have any material impact
on the plan assets. The majority of assets are invested in
shares as the Group considers that shares produce the best
long-term return at an acceptable risk level. The total alloca
tion to shares should not, however, exceed 60 percent of total
assets. Fixed income assets are invested in a combination of
ordinary government bonds and corporate bonds but also in
inflation-indexed bonds. The average term of these is nor
mally somewhat shorter than the term of the underlying lia
bility. Bonds should not account for less than 30 percent of
assets. A small proportion of assets is also invested in real
estate and alternative investments, mainly hedge funds.
At 31 December 2024, shares accounted for 23 percent
(25) and fixed income securities for 38 percent (43) of plan
assets, while other assets accounted for 39 percent (32). The
actual return on plan assets in 2024 was SEK 214 M (427),
while the effect of changes in assumptions of pension liabili
ties totaled SEK –177 M (27).
Swedish Group companies calculate tax on pension costs
based on the difference between pension expense deter
mined in accordance with IAS 19 and liability in accordance
with the regulations applicable in the legal entity.
Amounts recognized in the income statement
Pension costs, SEK M
2023
2024
Defined contribution pension plans
957
1,064
Defined benefit pension plans
171
173
Post-employment medical benefit plans
30
28
Total
1,158
1,264
of which, included in:
Operating income
1,106
1,209
Net financial items
52
56
Amounts recognized in the balance sheet
Pension provisions, SEK M
2023
2024
Provisions for defined benefit pension plans
935
944
Provisions for post-employment medical
benefit plans
483
510
Provisions for defined contribution pension
plans
17
24
Total
1,435
1,478
Pensions with Alecta
Commitments for old-age pensions and family pensions for
salaried employees in Sweden are secured in part through
insurance with Alecta. According to UFR 10, this is a defined
benefit plan that covers many employers. For the 2024 finan
cial year, the company has not had access to information mak
ing it possible to report this plan as a defined benefit plan.
Pension plans in accordance with ITP secured through insur
ance with Alecta are therefore reported as defined contribu
tion plans. The year’s pension contributions that are con
tracted to Alecta total SEK 14 M (14), of which SEK 8 M (8)
relates to the Parent company. Pension contributions are
expected to remain largely unchanged in 2025.
Alecta’s surplus can be distributed to policyholders and/or
the insured. As at 31 December 2024, Alecta’s surplus
expressed as the collective consolidation level amounted pre
liminarily to 162 percent (159 percent as at 31 December
2023). The collective consolidation level consists of the mar
ket value of Alecta’s assets as a percentage of its insurance
commitments calculated according to Alecta’s actuarial cal
culation assumptions, which do not comply with IAS 19. The
collective consolidation level is normally allowed to vary
between 125 and 175 percent. If the consolidation level devi
ates from this range, measures in the form of an adjustment of
the premium level should be taken to return to the normal
range.
135
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Movement in obligations
2024, SEK M
Post-employ
ment medical
benefits
Defined benefit
pension plans
Plan assets
Total
Opening balance 1 January 2024
482
8,677
–7,742
1,418
Acquisitions and divestments
–
92
–
92
Recognized in the income statement:
Current service cost
3
136
–
139
Past service cost
–
6
–
6
Interest expense/income
24
360
–329
56
Total recognized in the income statement
28
502
–329
201
Recognized in other comprehensive income:
Return on plan assets, excluding amounts included above
–
–
114
114
Gain/loss from change in demographic assumptions
–
46
–
46
Gain/loss from change in financial assumptions
–10
–212
–
–222
Experience-based gains/losses
–
41
–
41
Actuarial gain/loss on post-employment benefit obligations
–10
–125
114
–21
Exchange rate differences
48
560
–600
7
Total recognized in other comprehensive income
37
435
–486
–13
Contributions and payments:
Employer contributions
–
–
–97
–97
Employee contributions
0
74
–74
0
Payments
–38
–513
406
–145
Total payments
–38
–439
234
–243
Closing balance 31 December 2024
510
9,267
–8,322
1,454
2023, SEK M
Post-employ
ment medical
benefits
Defined benefit
pension plans
Plan assets
Total
Opening balance 1 January 2023
524
8,535
–7,717
1,343
Acquisitions and divestments
–
62
33
95
Recognized in the income statement:
Current service cost
4
122
–
126
Past service cost
–
18
–
18
Interest expense/income
26
361
–336
52
Total recognized in the income statement
30
501
–336
196
Recognized in other comprehensive income:
Return on plan assets, excluding amounts included above
–
–
–91
–91
Gain/loss from change in demographic assumptions
–
–128
–
–128
Gain/loss from change in financial assumptions
–16
171
–
155
Experience-based gains/losses
0
72
–
72
Actuarial gain/loss on post-employment benefit obligations
–16
115
–91
8
Exchange rate differences
–23
17
–23
–29
Total recognized in other comprehensive income
–39
131
–114
–21
Contributions and payments:
Employer contributions
–
–
–103
–103
Employee contributions
0
104
–96
8
Payments
–33
–657
590
–100
Total payments
–33
–553
391
–196
Closing balance 31 December 2023
482
8,677
–7,742
1,418
Plan assets allocation
Plan assets
2023
2024
Publicly traded shares
1,900
1,897
Government bonds
896
1,582
Corporate bonds
2,003
1,412
Inflation-linked bonds
458
147
Property
421
409
Cash and cash equivalents
93
400
Alternative investments
–
–
Insurance policies and other assets
1,971
2,475
Total
7,742
8,322
Sensitivity analysis of defined benefit obligations and
post-employment medical benefits
The effect on defined benefit obligations and
post-employment medical benefits of a 0.5
percentage point change in significant actuarial
assumptions, change in percent
+0.5%
-0.5%
Discount rate
–5.3
6.2
Inflation
2.3
–2.1
Pension increases
2.8
–1.6
Expected annual medical benefit increases
3.1
–2.9
Sensitivity analyses for the main assumptions affecting the
recognized pension liability are presented above. Note how
ever that the sensitivity analysis is not intended to express an
opinion by ASSA ABLOY on the likelihood of these occurring.
For 2025, ASSA ABLOY's assessment of the effects of future
cash flows is that only minor contributions to the pension
plans will be required.
Note 25 continued
136
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Who we are
ASSA ABLOY as an investment
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Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 26 Other provisions
SEK M
Group
Restruc
turing
reserve
Other
Total
Opening balance at
1 January 2024
767
860
1,627
Provisions for the year
–
213
213
Acquisitions of subsidiaries
–
31
31
Divestments of subsidiaries
–
–2
–2
Reversal of non-utilized amounts
–
–69
–69
Payments
–748
–100
–848
Utilized without cash flow effect
0
–
0
Exchange rate differences
21
–14
7
Closing balance at
31 December 2024
39
919
958
SEK M
Group
Restruc
turing
reserve
Other
Total
Opening balance at
1 January 2023
294
650
944
Provisions for the year
1,250
253
1,503
Acquisitions of subsidiaries
57
46
103
Divestments of subsidiaries
–
–4
–4
Reversal of non-utilized amounts
–
–15
–15
Payments
–613
–70
–683
Utilized without cash flow effect
–202
–
–202
Exchange rate differences
–20
0
–20
Closing balance at
31 December 2023
767
860
1,627
Balance sheet breakdown:
Group
2023
2024
Other non-current provisions
891
527
Other current provisions
736
431
Total
1,627
958
The restructuring reserve relates mainly to the ongoing
restructuring program launched in 2023. The restructuring
reserve is expected to be used during the coming year. The
non-current part of the reserve totaled SEK 0 M. For further
information on the restructuring programs, see the Report of
the Board of Directors.
Other provisions relate in part to legal obligations includ
ing future environment-related measures.
NOTE 27 Other current liabilities
SEK M
Group
2023
2024
VAT and excise duties
1,033
1,325
Employee withholding tax
187
195
Advances received
2,048
2,468
Social security contributions and other taxes
120
135
Current deferred considerations
789
1,109
Other current liabilities
841
1,070
Total
5,017
6,302
NOTE 28 Accrued expenses and deferred income
SEK M
Group
Parent company
2023
2024
2023
2024
Personnel-related
expenses
5,218
5,971
194
188
Customer-related
expenses
2,093
2,534
–
–
Deferred income
1,426
1,513
–
–
Accrued interest expenses
500
432
340
405
Other
4,915
5,082
95
72
Total
14,152
15,532
629
665
NOTE 29 Assets pledged against liabilities to
credit institutions
SEK M
Group
Parent company
2023
2024
2023
2024
Real estate mortgages
8
6
–
–
Other mortgages and
collateral
69
72
–
–
Total
77
78
–
–
NOTE 30 Contingent liabilities
SEK M
Group
Parent company
2023
2024
2023
2024
Guarantees to the benefit
of subsidiaries
–
–
16,015
17,575
Other guarantees and
contingent liabilities
103
77
–
–
Total
103
77
16,015
17,575
In addition to the guarantees shown in the table above, the
Group has a large number of minor bank guarantees for per
formance of obligations in operating activities. No material
liabilities are expected as a result of these guarantees.
Maturity profile – guarantees, SEK M
Group
2023
2024
<1 year
76
64
>1 <2 years
2
5
>2 <5 years
18
1
>5 years
7
8
Total
103
77
NOTE 31 Cash flow items
SEK M
Group
2023
2024
Adjustments for non-cash items
Profit/loss on sales of non-current assets
–59
–107
Profit/loss on sales of subsidiaries
0
–45
Change in pension provisions
144
137
Share of earnings in associates
–18
–45
Dividend from associates
3
3
Remeasurement of deferred considerations
–30
–46
Other
82
118
Adjustments for non-cash items
123
14
Change in working capital
Inventories increase/decrease (–/+)
2,380
–60
Trade receivables increase/decrease (–/+)
–49
–280
Trade payables increase/decrease (+/–)
–214
153
Other working capital increase/decrease (–/+)
1,720
395
Change in working capital
3,836
208
Divestments of subsidiaries
Purchase prices received, net
8,294
473
Cash and cash equivalents in divested subsidiaries
–180
–13
Change in consolidated cash and cash
equivalents due to divestments
8,114
460
NOTE 32 Significant events after the financial
year-end
ASSA ABLOY divested most of its Citizen ID business to TOPPAN
at the end of January 2025. Divestment of the remainder of
Citizen ID’s business to TOPPAN is subject to the fulfillment of
customary conditions and regulatory approvals.
137
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ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 33 Reserves
SEK M
Hedging reserve
Exchange rate
differences
Total
Cash flow hedges
Fair value hedges
Opening balance 1 January 2023
–249
–
12,383
12,133
Other comprehensive income in associates
–
–
–63
–63
Cash flow hedges
–66
–
–
–66
Net investment hedges
–
–
–
–
Hedging cost
–21
–2
–
–23
Exchange rate differences
0
–
–2,532
–2,532
Tax attributable to reserves
–
–
5
5
Closing balance 31 December 2023
–335
–2
9,793
9,455
Opening balance 1 January 2024
–335
–2
9,793
9,455
Other comprehensive income in associates
–
–
–1
–1
Cash flow hedges
94
–
–
94
Net investment hedges
–
–
–
–
Hedging cost
6
–14
–
–8
Exchange rate differences
–
–
5,669
5,669
Tax attributable to reserves
–
3
–6
–3
Closing balance 31 December 2024
–235
–14
15,454
15,206
Cash flow hedges include net investment hedges. Of the closing balance, SEK 255 M represents amounts related to closed
hedging relationships for net investments where the hedged item remains.
NOTE 34 Business combinations
Consolidated acquisitions, 2024
Acquired business
Division
Number of
employees
2023 sales (SEK M) Consolidation month
Integrated Warehouse Solutions
Entrance Systems
550
1,850
2024-01
Cemoel
Global Technologies
60
70
2024-02
Kadex
Global Technologies
<50
50
2024-03
Axxess Industries
Global Technologies
<50
<50
2024-04
Industrial door
Entrance Systems
<50
90
2024-04
Messerschmitt Systems
Global Technologies
100
130
2024-04
Nomadix & Global Reach
Global Technologies
120
300
2024-04
Spaltabdichtung
Entrance Systems
<50
<50
2024-04
Amecor
EMEIA
120
150
2024-05
Vizzia
Global Technologies
<50
90
2024-06
Wesko Locks
Americas
70
170
2024-06
G-mac
Entrance Systems
<50
<50
2024-07
Cole Kepro
Americas
65
160
2024-08
Elite Entrances
Entrance Systems
<50
80
2024-08
Modern
Entrance Systems
<50
60
2024-08
Sewio
Global Technologies
<50
<50
2024-08
Level Lock
Americas
70
170
2024-09
Skidata
Entrance Systems
1,280
3,500
2024-09
Beyron Door
Entrance Systems
<50
60
2024-10
IXLA
Global Technologies
50
150
2024-11
Lawrence Doors
Entrance Systems
120
320
2024-11
Premier Steel Doors and Frames
Americas
90
420
2024-11
9Solutions
Global Technologies
<50
110
2024-12
Door Team
Entrance Systems
<50
<50
2024-12
Roger
EMEIA
100
110
2024-12
Norshield Security Products
Americas
70
170
2024-12
A description of some of the major acquisitions made in 2024
is given below, followed by some of the Group’s major acquisi
tions in 2023. See the Report of the Board of Directors for fur
ther information about acquisitions.
2024
Integrated Warehouse Solutions
In January 2024, Integrated Warehouse Solutions, a US manu
facturer of loading dock equipment, was acquired. The com
pany is headquartered in Burleson, US.
Intangible assets in the form of brands, technology and cus
tomer relationships were recognized separately in the acqui
sition analysis. Residual goodwill mainly relates to synergies
and other intangible assets that do not meet the criteria for
separate reporting.
Nomadix and Global Reach
In April 2024, Nomadix and Global Reach, leading providers of
Wi-Fi access and engagement platform solutions for the hos
pitality and commercial real estate industry, were acquired in
the US and UK. The respective headquarters are located in Los
Angeles, US, and London, UK.
Intangible assets in the form of brands, technology and
customer relationships were recognized separately in the
acquisition analysis. Residual goodwill mainly relates to syner
gies and other intangible assets that do not meet the criteria
for separate reporting.
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Intangible assets in the form of brands and customer relation
ships have been disclosed in the purchase price allocation.
Residual goodwill mainly relates to synergies and other intangi
ble assets that do not meet the criteria for separate reporting.
Amecor
In May 2024, Amecor, a South African manufacturer of secu
rity communication equipment in the South African security
market, was acquired. The company is headquartered in
Johannesburg, South Africa.
Note 34 continued
2023
2024
SEK M
Total
Total
Purchase prices
Cash paid for acquisitions during the year
54,292
12,796
Holdbacks and conditional considerations for acquisitions during the year
508
678
Adjustment of purchase prices for acquisitions in prior years
10
–517
Total
54,810
12,957
Acquired assets and liabilities at fair value
Intangible assets
24,422
2,662
Property, plant and equipment
1,480
476
Right-of-use assets
1,166
617
Pension assets
–
1
Deferred tax assets
301
202
Other financial assets
193
72
Inventories
4,098
1,420
Current receivables and investments
2,305
1,556
Cash and cash equivalents
1,175
532
Deferred tax liabilities
–550
–180
Pension provisions
–101
–118
Other non-current liabilities
–1,794
–1,014
Current liabilities
–3,350
–1,686
Total
29,346
4,541
Non-controlling interests in acquired businesses
–
27
Goodwill
25,464
8,443
Cash paid for acquisitions during the year
54,292
12,796
Cash and cash equivalents in acquired subsidiaries
–1,175
–532
Consideration paid relating to acquisitions from previous year
449
–127
Change in cash and cash equivalents due to acquisitions
53,566
12,136
Net sales from acquisition date
9,499
4,010
EBIT from acquisition date
891
337
Net income from acquisition date
331
407
The table above includes fair value adjustments of acquired
net assets from acquisitions made in previous years. Acquisi
tion analyses were prepared for all acquisitions in 2024, some
of which are preliminary and will be completed within one
year of the acquisition date. The net sales of acquired units for
Skidata
In September 2024, Skidata, an international leading provider
of access management solutions, was acquired. The company
is headquartered in Salzburg, Austria. On the reporting date
the acquisition analysis is preliminary with respect to valua
tion of intangible assets, and will be concluded within one
year of the acquisition date.
Level Lock
In September 2024, Level Lock, a US technology solutions
business, was acquired. The company is headquartered in
Redwood City, US. On the reporting date the acquisition
analysis is preliminary with respect to valuation of intangible
assets, and will be concluded within one year of the acquisi
tion date.
Lawrence Doors
In November 2024, Lawrence Doors, a US manufacturer of
coiling steel doors, grilles and counter shutters, was acquired.
The company is headquartered in Baldwin Park, US.
On the reporting date the acquisition analysis is preliminary
with respect to valuation of intangible assets, and will be con
cluded within one year of the acquisition date.
Premier Steel Doors and Frames
In December 2024, Premier Steel Doors and Frames, a US
manufacturer of hollow metal doors and frames, metal build
ing door systems, and aluminium windows, was acquired.
The company is headquartered in Monroe, US.
On the reporting date the acquisition analysis is prelimi
nary with respect to valuation of intangible assets, and will be
concluded within one year of the acquisition date.
9Solutions
In December 2024, 9Solutions, a Finnish provider of highly
integrated AI-powered real time locating healthcare solutions
for critical communication and collaboration, with a focus on
senior care, was acquired. The company is headquartered in
Oulu, Finland.
On the reporting date the acquisition analysis is prelimi
nary with respect to valuation of intangible assets, and will be
concluded within one year of the acquisition date.
Roger
In December 2024, Roger, a Polish manufacturer of on-prem
ise electronic access control systems and related hardware,
was acquired. The company is headquartered in Gosciszewo,
Poland. On the reporting date the acquisition analysis is pre
liminary with respect to valuation of intangible assets, and will
be concluded within one year of the acquisition date.
2023
Mottura Serrature
Mottura Serrature, a manufacturer of high security residential
armored lock cases and security cylinders, was acquired in May
2023. The company is headquartered near Turin, Italy.
Intangible assets in the form of brands and customer relation
ships have been disclosed in the purchase price allocation.
Residual goodwill mainly relates to synergies and other intangi
ble assets that do not meet the criteria for separate reporting.
Hardware and Home Improvement (HHI)
The acquisition of the Hardware and Home Improvement
(HHI) division of Spectrum Brands was completed in June
2023. Headquartered in California, US, the business is a lead
ing supplier of security, plumbing, and builders’ hardware
products to the North American residential segment. Intangi
ble assets in the form of technology, customer relationships,
and brands were recognized separately in the acquisition
analysis. See also the 2023 Annual Report.
Evolis
Evolis, a manufacturer of ID card printers and consumables,
was acquired in September 2023. The company is headquar
tered in Angers, France. Intangible assets in the form of
brands, technology and customer relationships were recog
nized separately in the acquisition analysis. Residual goodwill
mainly relates to synergies and other intangible assets that do
not meet the criteria for separate reporting.
Ghost Controls
Ghost Controls, a supplier of automated residential gate
openers, was acquired in December 2023. The company is
headquartered in Florida, US. Intangible assets in the form of
brands and customer relationships were recognized sepa
rately in the acquisition analysis. Residual goodwill mainly
relates to synergies and other intangible assets that do not
meet the criteria for separate reporting.
Leone Fence
Leone Fence, a manufacturer, distributor and installer of fenc
ing products for commercial and residential applications, was
acquired in December 2023. The company is headquartered
in Ontario, Canada. Intangible assets in the form of brands and
customer relationships were recognized separately in the
acquisition analysis. Residual goodwill mainly relates to syner
gies and other intangible assets that do not meet the criteria
for separate reporting.
2024 totaled SEK 7,782 M (19,276) and net income
amounted to SEK 271 M (810). Acquisition-related costs for
2024 totaled SEK 307 M (923) and have been reported as
other operating expenses in the income statement.
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
NOTE 35 Employees
Salaries, wages, other remuneration and social security costs
SEK M
Group
Parent company
2023
2024
2023
2024
Salaries, wages and other remuneration
32,097
35,189
316
343
Social security costs
8,686
9,995
178
190
– of which pensions
1,125
1,209
56
60
Total
40,783
45,184
493
533
Remuneration and other benefits of the Executive Team in 2024, SEK thousands
Name
Fixed salary
Variable salary
Stock-related
benefits
Other benefits
Pension costs
Nico Delvaux, President and CEO
25,870
18,967
10,240
195
8,815
Other members of the Executive Team (9 positions)
78,604
40,352
18,806
4,040
10,723
Total remuneration and benefits
104,473
59,318
29,045
4,235
19,538
Total remuneration and other benefits of the Executive Team amounted to SEK 190.7 M in 2023.
Fees to Board members in 2024 (including committee work), SEK thousand
Name and post
Board of
Directors
Remuneration
Committee
Audit
Committee
Total
Johan Hjertonsson, Chairman
3,160
180
–
3,340
Carl Douglas, Vice Chairman
1,175
–
–
1,175
Erik Ekudden, Board member
935
90
–
1,025
Sofia Schörling Högberg, Board member
935
–
–
935
Lena Olving, Board member
935
–
300
1,235
Victoria Van Camp, Board member
935
–
300
1,235
Joakim Weidemanis, Board member
935
–
–
935
Susanne Pahlén Åklundh, Board member
935
–
440
1,375
Employee representatives (4)
–
–
–
–
Total
9,945
270
1,040
11,255
Total fees to Board members amounted to SEK 10.5 M in 2023.
Salaries and remuneration for the Board of Directors and
the Parent company’s Executive Team
Salaries and other remuneration for the Board of Directors
and the Parent company’s Executive Team for 2024 totaled
SEK 78 M (70), excluding pension costs and social security
costs. Pension costs amounted to SEK 11 M (10). Pension
obligations for several senior executives are secured through
pledged endowment insurances.
Guidelines for remuneration to senior executives
The current guidelines for remuneration to senior executives
that were adopted at the 2022 Annual General Meeting are
shown below. The Board has not proposed any new guidelines
for the 2025 Annual General Meeting.
Scope
The Board of Directors proposes that the Annual General
Meeting adopts the following guidelines for the remunera
tion and other employment conditions of the President and
CEO and other members of the ASSA ABLOY Executive Team
(the ‘Executive Team’).
These guidelines are applicable to remuneration agreed,
and amendments to remuneration already agreed, after
adoption of the guidelines by the 2022 Annual General Meet
ing. These guidelines do not apply to any remuneration
decided or approved by the General Meeting.
Employment conditions of a member of the Executive
Team that is employed or resident outside Sweden or that is
not a Swedish citizen, may be duly adjusted for compliance
with mandatory rules or established local practice, taking
into account, to the extent possible, the overall purpose of
these guidelines.
Promotion of ASSA ABLOY’s business strategy, long-term
interests and sustainability
One of the strategies for value creation followed by ASSA
ABLOY is Evolution through people. With the objective that
ASSA ABLOY shall continue to be able to recruit and retain
competent employees, the basic principle being that remu
neration and other employment conditions shall be offered
on market conditions and be competitive, taking into account
both global remuneration practice and practice in the home
country of each member of the Executive Team. These guide
lines enable ASSA ABLOY to offer the Executive Team a total
remuneration that is on market conditions and competitive.
Prerequisites are thereby established for successful imple
mentation of the Group’s business strategy, which at the over
all level is to lead the trend towards the world’s most innova
tive and well-designed access solutions, as well as safe-
guarding ASSA ABLOY’s long-term interests, including its sus
tainability. More information about ASSA ABLOY’s business
strategy and ASSA ABLOY’s sustainability report is available on
ASSA ABLOY’s website assaabloy.com.
ASSA ABLOY has ongoing share-based long-term incentive
programs in place that have been resolved by the General
Meeting and which are therefore excluded from these guide
lines. Future share-based long-term incentive programs pro
posed by the Board of Directors and submitted to the General
Meeting for approval will be excluded for the same reason.
The purpose of the share-based long-term incentive program
is to strengthen ASSA ABLOY’s ability to recruit and retain
competent employees, to contribute to ASSA ABLOY provid
ing a total remuneration that is on market conditions and
competitive, and to align the interests of the shareholders
with the interests of the employees concerned. Through a
share-based long-term incentive program, the employees’
remuneration is tied to ASSA ABLOY’s future earnings and
value growth. At present the performance criteria used is
linked to earnings per share. The programs are further condi
tional upon the participant’s own investment and holding
period of several years. More information about these pro
grams is available on ASSA ABLOY’s website assaabloy.com.
Types of remuneration
The total yearly remuneration to the members of the Execu
tive Team shall be on market conditions and be competitive
and also reflect each member of the Executive Team’s respon
sibility and performance. The total yearly remuneration shall
consist of fixed base salary, variable cash remuneration, pen
sion benefits and other benefits (which are specified below
excluding social security costs). Additionally, the General
Meeting may – and irrespective of these guidelines – resolve
on, among other things, share-related or share price-related
remuneration.
The variable cash remuneration shall be linked to predeter
mined and measurable targets, which are further described
below, and may amount to not more than 75 percent of the
yearly base salary. In order to ensure that the remuneration
levels are in line with market conditions and competitive, tak
ing into account the current market conditions in the US, the
variable cash remuneration for members of the Executive
Team employed in the US may amount to no more than 100
percent of the yearly base salary.
Additional variable cash remuneration may be paid in spe
cific cases in the form of remuneration with lump sums, pro
vided that such remuneration is only provided on an individ
ual basis for the purpose of recruiting senior executives. Such
remuneration may not exceed an amount corresponding to
100 percent of the yearly base salary and the maximum vari
able cash remuneration, and may not be paid more than once
per year per individual.
The members of the Executive Team shall be covered by
defined contribution pension plans, for which pension premi
ums are based on each member’s yearly base salary and are
paid by ASSA ABLOY during the period of employment. The
pension premiums shall amount to not more than 35 percent
of the yearly base salary.
Other benefits, such as company car, life insurance, extra
health insurance or occupational healthcare, should be pay
able to the extent this is considered to be in line with market
conditions in the market concerned for each member of the
Executive Team. Premiums and other costs relating to such
benefits may totally amount to not more than 10 percent of
the yearly base salary. Furthermore, housing allowance bene
fit may be added in line with ASSA ABLOY’s policies and costs
relating to such benefit may totally amount to not more than
25 percent of the yearly base salary. Premiums and other costs
relating to other benefits and housing allowance benefit may,
however, totally amount to not more than 30 percent of the
yearly base salary.
Criteria for awarding variable cash remuneration
The variable cash remuneration shall be linked to predeter
mined and measurable financial targets, such as earnings per
share (EPS), earnings before interest and taxes (EBIT), cash
flow and organic growth and can also be linked to strategical
and/or functional targets individually adjusted on the basis of
responsibility and function. These targets shall be designed so
as to contribute to ASSA ABLOY’s business strategy and long-
term interests, including its sustainability, by for example
being linked to the business strategy or promoting the senior
executive’s long-term development within ASSA ABLOY.
The Remuneration Committee shall for the Board of Direc
tors prepare, monitor and evaluate matters regarding variable
cash remuneration to the Executive Team. Ahead of each
yearly measurement period for the criteria for awarding vari
able cash remuneration the Board of Directors shall, based on
the work of the Remuneration Committee, establish the crite
140
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
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Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
ria that are deemed to be relevant for the upcoming measure
ment period. To which extent the criteria for awarding vari
able cash remuneration has been satisfied shall be
determined when the measurement period has ended. Evalu
ations regarding fulfillment of financial targets shall be based
on the determined financial basis for the relevant period.
Variable cash remuneration can be paid after the measure
ment period has ended or be subject to deferred payment.
Paid variable cash remuneration can be claimed back when
such right follows from general principles of law.
Duration of employment and termination of employment
The members of the Executive Team shall be employed until
further notice. If notice of termination is made by ASSA
ABLOY, the notice period may not exceed 12 months for the
CEO and 6 months for the other members of the Executive
Team. If the CEO is given notice, ASSA ABLOY is liable to pay,
including severance pay and remuneration under the notice
period, the equivalent of maximum 24 months’ base salary
and other employment benefits. If any other member of the
Executive Team is given notice, ASSA ABLOY is liable to pay a
maximum of 6 months’ base salary and other employment
benefits plus severance pay amounting to a maximum of an
additional 12 months’ base salary. If notice of termination is
made by a member of the Executive Team, the notice period
may not exceed 6 months, with no right to severance pay.
A member of the Executive Team may, for such time when
the member is not entitled to severance pay, be compensated
for non-compete undertakings. Such compensation shall
amount to not more than 60 percent of the monthly base
salary at the time of the termination and shall only be paid as
long as the non-compete undertaking is applicable, at longest
a period of 12 months.
Remuneration and employment conditions for employees
In the preparation of the Board of Directors’ proposal for
these remuneration guidelines, remuneration and employ
ment conditions for employees of ASSA ABLOY have been
taken into account by including information on the employ
ees’ total remuneration, the components of the remunera
tion and increase and growth rate over time in the Remunera
tion Committee’s and the Board of Directors’ basis of decision
when evaluating whether the guidelines and the limitations
set out herein are reasonable.
The decision-making process to determine, review and
implement the guidelines
The Remuneration Committee’s tasks include preparing the
Board of Directors’ decision to propose guidelines for remu
neration to the Executive Team. The Board of Directors shall
prepare a proposal for new guidelines at least every fourth
year and submit it to the Annual General Meeting. The guide
lines shall be in force until new guidelines are adopted by the
General Meeting. The Remuneration Committee shall also
monitor and evaluate programs for variable remuneration to
the Executive Team, the application of the guidelines for
remuneration to the Executive Team as well as the applicable
remuneration structures and remuneration levels in ASSA
ABLOY. The members of the Remuneration Committee are
independent of the company and its management. The CEO
and other members of the Executive Team do not participate
in the Board of Directors’ processing of and resolutions
regarding remuneration-related matters in so far as they are
affected by such matters.
Deviation from the guidelines
The Board of Directors may temporarily resolve to deviate
from the guidelines, in whole or in part, if in a specific case
there is special cause for the deviation and a deviation is nec
essary to serve ASSA ABLOY’s long-term interests, including
its sustainability, or to ensure ASSA ABLOY’s financial viability.
As set out above, the Remuneration Committee’s tasks
include preparing the Board of Directors’ resolutions in remu
neration-related matters. This includes any resolutions to
deviate from the guidelines.
Description of material changes to the guidelines and how
the views of shareholders have been taken into consideration
These guidelines, which are proposed for the 2022 Annual
General Meeting, correspond to a large extent to the guide
lines resolved upon by the 2020 Annual General Meeting.
However, in the guidelines now proposed, an option to pay
additional variable cash remuneration has been introduced
and, in addition, the maximum level for variable cash remu
neration for members of the Executive Team employed in the
US has been adjusted. See also the section ‘Types of remuner
ation’ above. No comments or questions on the remuneration
guidelines have emerged in connection with general meeting
proceedings.
Long-term incentive programs
At the 2010 Annual General Meeting, it was decided to launch
a long-term incentive program (LTI 2010) for senior execu
tives and other key employees in the Group. The purpose was
to create the prerequisites for retaining and recruiting quali
fied employees to the Group, to contribute to providing a
total remuneration that is on market conditions and competi
tive and align the interests of the shareholders with the inter
ests of the employees concerned.
At the 2011 to 2024 Annual General Meetings, it was
decided to implement further long-term incentive programs
for senior executives and other key employees in the Group.
The incentive programs were named LTI 2011 to LTI 2024.
LTI 2011 to LTI 2017 were based on similar terms to LTI
2010. LTI 2018 to LTI 2024 were based on similar principles as
the earlier programs, but with an extended measurement
period of three years for the performance-based condition
and removal of matching shares.
For each Series B share acquired by the CEO within the
framework of LTI 2022, LTI 2023 and LTI 2024, the company
has awarded six performance-based share awards. For each
Series B share acquired by other members of the Executive
Team, the company has awarded five performance-based
share awards. For other participants, the company has
awarded four performance-based share awards.
In accordance with the terms of the three programs (LTI
2022–LTI 2024), employees have acquired a total of 514,676
Series B shares in ASSA ABLOY AB, of which 181,515 Series B
shares were acquired in 2024 within the framework of LTI
2024.
Each performance-based share award for LTI 2022, LTI 2023
and LTI 2024 entitles the holder to receive one Series B share
in the company free of charge three years after allotment, pro
vided that the holder, with certain exceptions, at the time of
the release of the interim report for the first quarter 2025 (LTI
2022), first quarter 2026 (LTI 2023) and first quarter 2027 (LTI
2024) is still employed by the Group and has maintained the
shares acquired within the framework of the respective pro
gram. In addition to these conditions, the number of perfor
mance-based share awards that entitle the holder to Series B
shares in the company depends on the annual development
of ASSA ABLOY’s earnings per share based on the target levels,
as defined by the Board of Directors, during the measurement
period 1 January 2022 – 31 December 2024 (LTI 2022), the
measurement period 1 January 2023 – 31 December 2025
(LTI 2023) and the measurement period 1 January 2024 –
31 December 2026 (LTI 2024), where each year during the
measurement period is compared to the previous year. The
outcomes are calculated yearly, whereby one third of the per
formance-based share awards is measured against the out
come for the first year in the measurement period, one third is
measured against the outcome for the second year in the
measurement period and one third is measured against the
outcome for the third year in the measurement period. The
outcome for each year is measured linearly. Unless the mini
mum target level in the interval is achieved for the year, none
of the relevant performance-based share awards will give the
right to any Series B shares. If the maximum target level in the
interval is achieved, each performance-based share award
linked to the relevant year entitles the holder to one Series B
share at the end of the three-year vesting period, provided
that the other conditions are met.
The performance-based condition was fulfilled to 100 per
cent for LTI 2022. Fulfillment of the performance-based condi
tion for LTI 2023 and LTI 2024, respectively, is intended to be
presented in the Annual Report for the financial years 2025
and 2026, respectively.
Outstanding performance-based share awards for LTI 2024
total 764,882. The total number of outstanding perfor
mance-based share awards for LTI 2022, LTI 2023 and LTI 2024
amounted to 2,055,687 on the reporting date of 31 Decem
ber 2024.
Fair value is based on the share price on the respective
allotment date. The present value calculation is based on data
from an external party. Fair value is also adjusted for perfor
mance-based share awards not expected to be realized at the
end of the vesting period of the respective program. The com
pany further assesses the probability of the performance tar
gets being met when calculating the compensation expense.
The fair value of ASSA ABLOY’s Series B share on the allot
ment date for LTI 2024 of 13 June 2024 was SEK 311.30. The
fair value of ASSA ABLOY’s Series B share on the allotment
date for LTI 2023 of 9 June 2023 was SEK 255.90. The fair value
of ASSA ABLOY’s Series B share on the allotment date for LTI
2022 of 2 June 2022 was SEK 242.70.
The total cost of the Group’s long-term incentive programs
(LTI 2021–LTI 2024) excluding social security costs and financ
ing costs and before income tax amounted to SEK 93 M (72)
in 2024. In April 2024, vesting of the long-term incentive pro
gram LTI 2021 took place equivalent to 363,694 Series B
shares (314,857) at a total market value at the time of vesting
of SEK 112 M (79). The payment referred to above for the
vested shares in LTI 2021 was recognized in equity.
Notice and severance pay
If the CEO is given notice, the company is liable to pay the
equivalent of a maximum of 24 months’ base salary and other
employment benefits. If one of the other members of the
Executive Team is given notice, the company is liable to pay a
maximum six months’ base salary and other employment
benefits plus an additional twelve months’ base salary.
Note 35 continued
141
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Average number of employees per country, broken down by gender
Group
2023
2024
Total
of which
women
of which men
Total
of which
women
of which men
US
13,615
4,081
9,534
15,261
4,419
10,842
China
5,793
2,227
3,566
6,193
2,539
3,654
Mexico
3,396
1,169
2,227
4,423
1,716
2,708
France
3,053
808
2,244
3,024
868
2,156
United Kingdom
2,831
805
2,027
2,878
796
2,082
Brazil
2,144
790
1,354
2,372
799
1,573
Sweden
2,244
668
1,576
2,282
681
1,601
India
1,917
201
1,715
2,011
216
1,795
Germany
1,919
528
1,391
1,933
474
1,459
Philippines
945
520
425
1,811
848
963
Poland
1,469
364
1,104
1,496
400
1,097
Netherlands
1,294
265
1,028
1,375
287
1,088
Australia
1,385
389
996
1,375
467
909
Czech Republic
1,283
494
789
1,331
516
815
Canada
977
239
738
1,318
370
947
Finland
952
275
677
967
277
691
Malaysia
912
423
489
888
409
479
Spain
637
167
470
766
195
571
Romania
785
292
493
753
289
464
Belgium
725
144
581
722
156
566
Switzerland
686
137
548
714
143
571
South Africa
647
273
374
702
292
410
Italy
483
124
359
548
151
397
South Korea
540
140
400
522
141
381
Denmark
419
78
340
453
90
363
Austria
228
31
196
451
78
373
Peru
140
49
90
447
145
302
Ireland
385
136
250
435
151
284
Portugal
380
222
158
430
248
182
New Zealand
428
121
307
420
123
297
Taiwan
220
108
112
419
233
186
Turkey
440
221
219
415
196
220
Thailand
422
310
112
394
287
107
United Arab Emirates
383
54
329
381
46
335
Others
2,767
916
1,853
2,913
902
2,011
Total
56,845
17,771
39,073
62,825
19,949
42,875
Parent company
2023
2024
Total
of which
women
of which men
Total
of which
women
of which men
Sweden
263
103
160
266
104
163
Total
263
103
160
266
104
163
Gender distribution of Board of Directors and Executive Team
2023
2024
Total
of which
women
of which men
Total
of which
women
of which men
Board of Directors¹
8
4
4
8
4
4
Executive Team
10
2
8
10
1
9
– of which Parent company’s Executive
Team
2
0
2
2
0
2
Total
18
6
12
18
5
13
¹ Excluding employee representatives.
Note 35 continued
NOTE 36 Financial risk management and
financial instruments
Financial risk management
ASSA ABLOY is exposed to a variety of financial risks due to its
international business operations. Financial risk management
is carried out in accordance with the Group’s financial policy.
The principles for financial risk management are described
below.
Organization and activities
ASSA ABLOY’s financial policy, which is determined by the
Board of Directors, provides a framework of guidelines and
regulations for the management of financial risks and financial
activities.
ASSA ABLOY’s financial activities are coordinated centrally
and the majority of financial transactions are conducted by
the subsidiary ASSA ABLOY Financial Services AB, which is the
Group’s internal bank. External financial transactions are con
ducted by Treasury. Treasury achieves significant economies
of scale when negotiating agreements for borrowing, interest
risk management and management of currency flows.
Capital structure
The objective of the Group’s capital structure is to safeguard
its ability to continue as a going concern, and to generate
good returns for shareholders and benefits for other stake
holders. Maintaining an optimal capital structure enables the
Group to keep capital costs at a low level. The Group can
adjust the capital structure based on the requirements that
arise by varying the dividend paid to shareholders, returning
capital to shareholders, issuing new shares or selling assets to
reduce debt. The capital requirement is assessed on the basis
of factors such as the net debt/equity ratio.
Net debt is defined as interest-bearing liabilities, including
negative market values of derivatives, plus pension provisions
and lease obligations, less cash and cash equivalents, and
other interest-bearing investments including positive market
values of derivatives. The table ‘Net debt and equity’ shows
the position as at 31 December.
Net debt and equity
SEK M
Group
2023
2024
Non-current interest-bearing receivables
–223
–224
Short-term investments
–236
–25
Derivative instruments –
Positive market values
–926
–419
Cash and cash equivalents
–1,466
–4,504
Long-term loans
49,917
54,989
Short-term loans
9,833
11,958
Lease liabilities
5,443
6,554
Pension provisions
1,435
1,478
Derivative instruments –
negative market values
331
445
Total
64,109
70,253
Equity
91,644
107,080
Debt/equity ratio
0.70
0.66
Rating
Another important variable in the assessment of the Group’s
capital structure is the credit rating assigned by credit rating
agencies to the Group’s debt. It is essential to maintain a solid
credit rating in order to have access to both long-term and
short-term financing from the capital markets. ASSA ABLOY
maintains both long-term and short-term credit ratings from
S & P Global and a short-term rating from Moody’s. Neither
rating changed in 2024.
Agency
Short-term
Outlook
Long-term
Outlook
Standard & Poor’s
A2
Stable
A –
Stable
Moody’s
P2
Stable
n/a
142
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Maturity profile – financial instruments¹
SEK M²
31 December 2023
31 December 2024
<1 year
>1 <2 years
>2 <5 years
>5 years
<1 year
>1 <2 years
>2 <5 years
>5 years
Long-term bank loans
–1,005
–6,454
–5,736
–4,144
–1,670
–9,691
–5,784
–2,103
Long-term capital market loans
–4,569
–4,811
–15,677
–21,180
–5,375
–9,461
–13,778
–21,621
Short-term bank loans
–1,730
–1,373
Commercial papers and short-term capital market loans
–4,951
–6,205
Derivatives (outflow)
–29,059
–25,391
Derivatives, hedge accounting (outflow)
–910
–902
–7,949
–1,140
–952
–7,901
–1,147
–748
Total by period
–42,224
–12,167
–29,363
–26,464
–40,966
–27,053
–20,709
–24,472
Cash and cash equivalents incl. interest-bearing receivables
1,783
4,715
Non-current interest-bearing receivables
39
7
199
0
72
176
2
Derivatives (inflow)
29,059
25,208
Derivatives, hedge accounting (inflow)
743
743
8,051
1,088
776
7,336
1,145
850
Deferred considerations
–789
–233
–23
–1,109
–206
–47
0
Trade receivables
20,934
23,444
Trade payables
–11,320
–12,594
Lease liabilities
–1,622
–1,287
–1,947
–1,510
–1,987
–1,535
–2,412
–1,790
Net total
–3,396
–12,936
–23,083
–26,886
–2,513
–21,385
–21,847
–25,410
Confirmed credit facilities
10,336
–12,340
12,794
–12,794
Adjusted maturity profile¹
6,940
–12,936
–35,423
–26,886
10,281
–34,180
–21,847
–25,410
¹ For maturity profile of guarantees, see Note 30.
² The amounts in the table are undiscounted and include future known interest payments. The exact amounts are therefore not all found in the balance sheet.
Interest-bearing liabilities
The financing mainly consists of a GMTN Program of SEK
42,657 M (38,365), of which SEK 38,688 M (35,679) is long-
term, a bilateral bank loan of USD 500 M (500) and loans from
financial institutions such as the European Investment Bank
(EIB) totaling USD 641 M, of which USD 571 M (641) is long-
term, and the Nordic Investment Bank of EUR 235 M (235).
Eight new issues under the GMTN Program for a total of SEK
5,592 M with maturities of 3.2 to 8 years were made during
the year. A new bilateral bank loan of CAD 200 M was also
raised to diversify the loan portfolio. Other changes in long-
term loans are mainly due to some of the originally long-term
loans now having less than 1 year to maturity. The size of the
loans was affected by currency fluctuations, mainly due to a
stronger USD, which increased the volume of loans.
The Group’s short-term loan financing mainly consists of
two Commercial Paper Programs for a maximum USD 1,000
M (1,000) and SEK 5,000 M (5,000) respectively. At the year-
end, the outstanding balance under the Commercial Paper
Programs was SEK 6,177 M (4,906). In addition to the credit
facilities described under the Maturity profile section, sub
stantial credit commitments exist, mainly in the form of a
Multi-Currency Revolving Credit Facility of EUR 1,116 M
(1,200). At year-end the average time to maturity for the
Group’s interest-bearing liabilities, excluding pension provi
sions and lease obligations, was 44 months (52).
Some of the Group’s main financing agreements contain a
customary Change of Control clause. This clause means that
lenders have the right in certain circumstances to demand the
renegotiation of conditions or to terminate the agreements
should control of the company change.
Financing risk and maturity profile
Financing risk is defined as the risk of being unable to meet
payment obligations as a result of inadequate liquidity or diffi
culties in obtaining external financing. ASSA ABLOY manages
financing risk at Group level. Treasury is responsible for exter
nal borrowings and external investments. ASSA ABLOY strives
to have access to both short-term and long-term loan facili
ties at all times. In accordance with the financial policy, the
available loan facilities, including available cash and cash
equivalents, should include a reserve (facilities available but
not utilized) equivalent to at least 10 percent of the Group’s
total annual sales.
Maturity profile
The ‘Maturity profile’ table above shows the maturities for
ASSA ABLOY’s financial instruments, including confirmed
credit facilities. The maturities are not concentrated to a par
ticular date in the immediate future. An important compo
nent of liquidity planning is the Group’s Multi-Currency
Revolving Credit Facility totaling EUR 1,116 M. The term is
until April 2026. This credit facility was wholly unutilized at
year-end.
Moreover, existing financial assets are also taken into account
in the table. The table shows cash flows and known future
interest payments relating to the Group’s financial instru
ments at the reporting date, and these amounts are therefore
not found in the balance sheet.
Cash and cash equivalents and other interest-bearing
receivables
Current interest-bearing investments totaled SEK 939 M (2)
at year-end. In addition to cash and cash equivalents, ASSA
ABLOY has interest-bearing receivables of SEK 249 M (459)
with a maturity of more than three months and financial
derivatives with a positive market value of SEK 419 M (926)
which are included in the definition of net financial debt. Cash
and cash equivalents are mainly invested in bank accounts,
deposits in banks or interest-bearing instruments with high
liquidity from issuers with a credit rating of at least A– accord
ing to S&P Global or a similar rating agency. The average term
for cash and cash equivalents was 3 days (5) at year-end 2024.
The Parent company’s cash and cash equivalents are held
in a sub-account to the Group account.
SEK M
Group
Parent company
2023
2024
2023
2024
Cash and bank balances
1,463
3,565
0
2
Short-term investments with
maturity less than 3 months
2
939
–
–
Cash and cash equivalents
1,466
4,504
0
2
Short-term investments with
maturity more than 3 months
236
25
–
–
Non-current interest-bearing
receivables
223
224
–
–
Positive market value of deriva
tives
926
419
–
–
Total
2,851
5,172
0
2
Interest rate risks in interest-bearing assets
Treasury manages interest rate risk in interest-bearing assets.
Derivative instruments such as interest rate swaps and FRAs
(Forward Rate Agreements) may be used to manage interest
rate risk. These interest-bearing assets are mostly short-term.
The fixed interest term for such short-term investments was
7 days (90) at year-end 2024. A downward change in the yield
curve of one percentage point would reduce the Group’s
interest income by around SEK 0 M (0) and consolidated
equity by SEK 0 M (0).
Note 36 continued
143
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
External financing/net debt
Credit lines/facilities
Amount,
SEK M
Maturity
Carrying
amount, SEK M
Currency
Amount
2023
Amount
2024
Of which Parent
company, SEK M
Multi-Currency RCF
12,794
Apr 2026
–
EUR
1,116
1,116
Term loan facility
5,496
Oct 2025
5,496
USD
500
500
Bank loans
1,526
Sep 2026
1,526
CAD
–
200
Bank loan EIB
2,506
Aug 2027³
2,506
USD
263
228
Bank loan EIB
3,770
Aug 2030³
3,770¹
USD
343
343
Bank loan NIB
773
Jun 2026
773
EUR
68
68
Bank loan NIB
774
Jun 2028
774
EUR
68
68
Bank loan NIB
1,146
Jun 2029
1,146
EUR
100
100
Global MTN Program
110,692
Mar 2026
229
EUR
20
20
229
Sep 2026
6,905¹ ²
EUR
600
600
6,856
Oct 2026
275
SEK
275
275
275
Oct 2026
150
SEK
150
150
150
Nov 2026
621²
CHF
50
50
609
Feb 2027
343
EUR
30
30
343
Feb 2027
573
EUR
50
50
573
Mar 2027
2,997¹
SEK
2,500
3,000
2,997
Jun 2027
282²
NOK
300
300
290
Sep 2027
572
EUR
50
50
572
Oct 2027
182²
NOK
200
200
194
Oct 2027
1,099
USD
100
100
1,099
Feb 2028
824¹
USD
–
75
824
Apr 2028
1,201
SEK
–
1,200
1,201
May 2029
171
EUR
15
15
171
Jun 2029
110
USD
10
10
110
Aug 2029
114
EUR
10
10
114
Aug 2029
999¹
SEK
–
1,000
999
Oct 2029
301²
EUR
28
28
319
Oct 2029
297
EUR
26
26
297
Dec 2029
1,062²
USD
100
100
1,092
Mar 2030
343
EUR
30
30
343
Apr 2030
799
EUR
70
70
799
Jun 2030
1,099
USD
100
100
1,099
Sep 2030
6,937²
EUR
600
600
6,836
Feb 2031
114
EUR
10
10
114
Sep 2031
1,098
USD
–
100
1,098
Mar 2032
963²
NOK
–
1,000
967
Aug 2034
1,135
EUR
100
100
1,135
Sep 2035
6,972²
EUR
600
600
6,810
Other long-term loans
229
229
Total long-term loans/facilities
139,707
54,989
38,517
Bank loan EIB
768
Mar 2025³
768
USD
17
70
Global MTN Program
3,953
3,953
SEK
3,953
3,953
Credit lines/facilities
Amount,
SEK M
Maturity
Carrying
amount, SEK M
Currency
Amount
2023
Amount
2024
Of which Parent
company, SEK M
Global CP Program
10,994
2,141
USD
109
195
1,249
EUR
170
109
Swedish CP Program
5,000
2,787
SEK
1,934
2,787
Other bank loans
785
785
Overdraft facility
3,702
276
Total short-term loans/facilities
25,202
11,958
3,953
Total loans/facilities
164,909
66,948
3,953
Cash and cash equivalents
-4,504
-2
Non-current and current interest-bearing
investments
-249
Derivative financial instruments
26
Pension provisions
1,478
Lease liabilities
6,554
109
Net debt
70,253
42,577
¹ The loan is subject to cash flow hedging, in whole or in part.
² The loan is subject to fair value hedging, in whole or in part.
³ The loans are amortizing. In the table the average dates of maturity of the loans have been stated.
Note 36 continued
Change in loans
SEK M
Long-term loans
Short-term loans
Total
Opening balance 1 January 2024
49,918
9,833
59,750
Cash flow from financing activities
Long-term loans raised
7,044
–
7,044
Long-term loans repaid
–
–3,736
–3,736
Net change in short-term loans
–
929
929
Total
7,044
–2,808
4,236
Changes without cash flow impact
Acquisitions of subsidiaries
–
–
–
Divestments of subsidiaries
–
–
–
Reclassifications
–4,748
4,748
–
Unrealized exchange differences
2,790
267
3,057
Other changes
–24
–16
–40
Exchange rate differences
11
–66
56
Total
–1,972
4,932
2,961
Closing balance 31 December 2024
54,989
11,958
66,948
144
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Notes | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Note 36 continued
Interest rate risks in borrowing
Changes in interest rates have a direct impact on ASSA
ABLOY’s net interest expense. Treasury is responsible for iden
tifying and managing the Group’s interest rate exposure. Trea
sury analyzes the Group’s interest rate exposure and calcu
lates the impact on income of changes in interest rates on a
rolling 12-month basis. The Group strives for a mix of fixed
rate and variable rate borrowings in the loan portfolio, and
uses interest rate swaps and cross currency swaps to adjust
the fixed interest term. The financial policy stipulates that the
average fixed interest term should normally be within the
interval of 12 to 36 months. At year-end, the average fixed
interest term on gross debt, excluding pension liabilities and
lease commitments, was around 28 months (31). An upward
change in the yield curve of one percentage point would
increase the Group’s interest expense by around SEK 350 M
(291) and reduce consolidated equity by SEK 262 M (218).
Net debt by currency
SEK M
31 December 2023
31 December 2024
Net debt excl.
derivatives
Net debt incl.
derivatives
Net debt excl.
derivatives
Net debt incl.
derivatives
USD
21,050
33,770
23,674
39,335
EUR
34,125
7,919
32,363
12,444
SEK
5,851
9,616
8,249
5,870
AUD
200
2,490
145
2,787
CAD
134
2,109
1,576
1,747
GBP
–577
2,075
–546
1,586
CNY
346
1,534
243
1,434
PLN
42
588
4
1,097
BRL
812
812
676
676
CHF
748
810
788
580
KRW
380
600
268
503
Other
998
1,786
2,813
2,192
Total
64,109
64,109
70,253
70,253
SEK M
Long-term loans
Short-term loans
Total
Opening balance 1 January 2023
20,523
9,304
29,826
Cash flow from financing activities
Long-term loans raised
33,129
–
33,129
Long-term loans repaid
–
–3,659
–3,659
Net change in short-term loans
–
608
608
Total
33,129
–3,052
30,078
Changes without cash flow impact
Acquisitions of subsidiaries
2
3
4
Divestments of subsidiaries
–
–
–
Reclassifications
–3,727
3,727
–
Unrealized exchange differences
–269
–77
–347
Other changes
421
–
421
Exchange rate differences
–151
–71
–232
Total
–3,735
3,581
–154
Closing balance 31 December 2023
49,917
9,833
59,750
Change in lease liabilities
SEK M
Group
2023
2024
Opening balance
3,907
5,443
Acquisitions of subsidiaries
1,155
534
Divestments of subsidiaries
–62
–16
New and terminated leases
2,177
2,059
Amortization of lease liabilities
–1,543
–1,797
Exchange rate differences
–191
330
Closing balance
5,443
6,554
Balance sheet breakdown:
Group
2023
2024
Non-current lease liabilities
4,001
4,817
Current lease liabilities
1,443
1,737
Total
5,443
6,554
Currency composition
The currency composition of ASSA ABLOY’s borrowing
depends on the currency composition of the Group’s assets
and other liabilities. Currency swaps and cross currency swaps
are used to achieve the desired currency composition.
Currency risk
Currency risk affects ASSA ABLOY mainly through translation
of capital employed and net debt, translation of the income of
foreign subsidiaries, and the impact on income of flows of
goods between countries with different currencies.
Transaction exposure
Currency risk in the form of transaction exposure, or exports
and imports of goods respectively, is relatively limited in the
Group, even though it can be significant for individual busi
ness units. The main principle is to allow currency fluctuations
to have an impact on the business as quickly as possible. As a
result of this strategy, current currency flows are not normally
hedged.
Transaction flows relating to major currencies
(import + and export –)
Currency, SEK M
Currency exposure
2023
2024
AUD
676
658
CAD
1,227
1,665
CHF
–795
–899
CNY
–2,712
–2,909
CZK
–910
–1,064
EUR
2,208
989
GBP
1,185
1,142
MXN
–1,031
–1,151
SEK
–1,312
–1,470
USD
4,204
4,108
Translation exposure in income
The table below shows the impact on the Group’s income
before tax of a reasonably possible change, in this case a 10
percent weakening of the Swedish krona (SEK) in relation to
the major currencies, with all other variables constant.
Impact on income before tax of a 10 percent weakening of SEK
Currency, SEK M
2023
2024
AUD
83
66
BRL
25
30
CAD
66
78
CHF
72
75
DKK
22
20
EUR
298
359
HKD
48
36
MXN
28
27
NOK
24
26
USD
1,544
1,676
Translation exposure in the balance sheet
The impact of translation of equity is limited by the fact that a
large part of financing is in local currency.
The capital structure in each country is optimized based on
local legislation. Whenever possible, according to local condi
tions, gearing per currency should generally aim to be the
same as for the Group as a whole to limit the impact of fluctu
ations in individual currencies. Treasury uses currency deriva
tives and loans to achieve appropriate financing and to elimi
nate undesirable currency exposure.
The ‘Net debt by currency’ table on page 144 shows the use
of currency derivatives in relation to financing in major cur
145
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
rencies. Forward exchange contracts are used to neutralize
the exposure arising between external debt and internal
requirements.
Financial credit risk
Financial risk management exposes ASSA ABLOY to certain
counterparty risks. Such exposure may arise from the invest
ment of surplus cash as well as from investment in debt instru
ments and derivative instruments.
ASSA ABLOY’s policy is to minimize the potential credit risk
relating to surplus cash by using cash flow from subsidiaries to
repay the Group’s loans. This is primarily achieved through
cash pools put in place by Treasury. Around 96 percent (97) of
the Group’s sales were settled through cash pools in 2024.
Smaller amounts may be held in other local banks for shorter
time periods depending on how customers choose to pay. The
Group can also invest surplus cash in the short term in banks
to match borrowing and cash flow. The banks in which surplus
cash is deposited have a high credit rating. In light of this and
the short terms of the investments the effect of the calculated
credit risk is assessed to be negligible.
Derivative instruments are allocated between banks based
on risk levels defined in the financial policy, in order to limit
counterparty risk. Treasury only enters into derivative con
tracts with banks that have a high credit rating.
ISDA agreements (full netting of transactions in case of
counterparty default) have been entered into with respect to
interest rate and currency derivatives. The table on page 145
shows the impact of this netting.
Commercial credit risk
The Group’s trade receivables are distributed across a large
number of customers who are spread globally. No single cus
tomer accounts for more than 2 percent of the Group’s sales.
The concentration of credit risks associated with trade receiv
ables is considered to be limited, but the concentration of
credit risks increased through the acquisition of HHI, which
has a more concentrated customer base. The fair value of
trade receivables is equivalent to the carrying amount. Credit
risks relating to operating activities are managed locally at
company level and monitored at division level. For more infor
mation see Note 22 and the section ‘Impairment of financial
assets’ in the information on accounting principles.
Commodity risk
The Group is exposed to price risks relating to purchases of
certain commodities (primarily metals) used in production.
Forward contracts are not used to hedge commodity pur
chases.
Fair value of financial instruments
Derivative financial instruments such as forward exchange
contracts and forward rate agreements are used to the extent
necessary. The use of derivative instruments is limited to
reducing exposure to financial risks.
The positive and negative fair values in the ‘Outstanding
derivative financial instruments’ table on page 146 show the
fair values of outstanding instruments at year-end, based on
available fair values, and are the same as the carrying amounts
in the balance sheet. The nominal value is equivalent to the
gross value of the contracts.
For accounting purposes, financial instruments are classi
fied into measurement categories in accordance with IFRS 9.
The table ‘Financial instruments’ on page 146 provides an
overview of financial assets and liabilities, measurement cate
gory, and carrying amount and fair value per item.
Risk management through hedge accounting
During the year the Group used hedge accounting in its finan
cial risk management. Hedges can be divided into cash flow
hedges, fair value hedges and net investment hedges.
Changes in these hedges can be seen in the table below. For
information regarding the effects of cash flow hedging, which
includes net investment hedging, in other comprehensive
income, see Note 33. Fair value hedges are used to manage
interest rate risk that arises when the Group takes out loans at
a fixed interest rate. Cash flow hedges for interest rate risk in
loans with variable interest rates are used to adjust the inter
est rate risk for variable interest rates. Net investment hedges
are used to manage currency risk that arises through invest
ments in foreign subsidiaries.
Interest rate risk related to the long-term loans is hedged
using interest rate swaps. For a number of loans, cross currency
swaps are also used to hedge both interest rate and currency
exposures related to the borrowing. For risks related to net
investments in foreign subsidiaries, hedge accounting is only
applied to manage currency risk; no other related risks are
managed by the hedges that are applied.
ASSA ABLOY does not hedge 100% of its long-term loans or
its net investments. Instead, the decision on when hedge
accounting is appropriate is taken on a case-by-case basis,
in accordance with the risk levels described in the financial
policy.
For fair value hedges the Group mainly uses interest rate
swaps with critical terms that are equivalent to the hedged
item, such as reference rate, settlement days, maturity date
and nominal amounts. This approach ensures an economic
relationship between the hedging items and the hedging
instruments. Hedging relationship effectiveness is tested
through periodic forward-looking evaluation to ensure that
an economic relationship still exists. Examples of identified
sources of ineffectiveness in the hedging relationship include
if a credit risk adjustment in the interest rate swap is not
matched by an equivalent adjustment to the loan, or if for
some reason differences in the critical terms between the
interest rate swap and the loan should arise. As the Group also
uses cross currency swaps, there may also be results if the cur
rency basis spread between different currencies changes. The
currency basis spread is recognized in other comprehensive
income. All critical terms matched during the year. No ineffi
ciencies occurred due to non-compliance with the critical
terms. The changes that have occurred to date following the
reference rate reform (IBOR reform) had no significant impact
on the Group’s hedge relationships in 2024.
Hedging instruments
SEK M
Cash flow hedges
2023
Cash flow hedges
2024
Fair value hedges
2023
Fair value hedges
2024
Carrying amount of hedged item – fair value
–
–
12,336
13,138
Carrying amount of hedged item – cash flow
12,219
14,724
–
–
Nominal amount of hedging instrument
12,219
14,724
12,336
13,138
Maturity
2026 to 2033
2026 to 2033
2025 to 2035
2025 to 2035
Hedge ratio
1:1
1:1
1:1
1:1
Total effect of hedging on hedged item
–
–
–542
–76
Accrued remaining amount for terminated hedges
(interest rate hedges)
–
–
83
71
Accrued remaining amount for terminated hedges
(net investment hedges)
–255
–255
–
–
Change in value, hedging instruments since 1 January
554
–514
86
137
Change in value of hedged items
–
–
–88
–152
Hedging cost for currency basis spread
–21
6
–2
–14
Ineffectiveness recognized in profit or loss
0
0
0
0
Changes in the value of fair value hedged items are recognized
against long-term loans; changes in value of hedging instru
ments are recognized against derivative instruments; ineffec
tiveness, if any, is recognized against interest income or
expenses, respectively. Changes in value of hedge instruments
in cash flow hedges of interest rate risks and currency risks are
recognized in Other comprehensive income. Any ineffective
ness is recognized against interest income or interest
expenses or currency gains or losses, respectively. Changes in
value of net investment hedges are recognized in the hedging
reserve in equity. Changes in value from changes in the cur
rency basis spread are recognized as a hedging cost in other
comprehensive income.
Disclosures of offsetting of financial assets and liabilities
SEK M
2023
2024
Gross
amount
Amounts
netted in the
balance sheet
Net amounts
in the balance
sheet
Amount
covered by
netting
agreement
but not offset
Net amount
Gross
amount
Amounts
netted in the
balance sheet
Net amounts
in the balance
sheet
Amount
covered by
netting
agreement but
not offset
Net amount
Financial assets
926
–
926
311
615
419
–
419
231
188
Financial liabilities
331
–
331
311
20
445
–
445
231
214
Netted financial assets and financial liabilities only consist of derivative instruments.
Note 36 continued
146
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Who we are
ASSA ABLOY as an investment
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Report of the Board of Directors
Financial statements
Accounts
• Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Outstanding derivative financial instruments at 31 December
Instrument, SEK M
31 December 2023
31 December 2024
Positive
market value²
Negative
market value²
Nominal
value
Positive
market value²
Negative
market value²
Nominal
value
Forward exchange contracts
293
170
19,857
103
224
17,288
Interest rate derivatives¹, fair value hedges
326
94
6,808
274
87
7,405
Interest rate derivatives¹, cash flow hedges
–
67
4,677
42
27
6,495
Currency interest rate derivatives, fair value
hedges
–
310
5,529
–
127
5,732
Currency interest rate derivatives, cash flow
hedges
617
–
7,542
20
–
8,228
Total
1,236
643
44,412
439
465
45,150
¹ For interest rate derivatives, only one leg is included in nominal value.
² Assets are recognized against accrued revenue and liabilities against accrued expenses.
Financial instruments: carrying amounts and fair values by measurement category
SEK M
2023
2024
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets at amortized cost
Trade receivables
20,934
20,934
23,444
23,444
Other financial assets at amortized cost
534
534
397
397
Cash and cash equivalents
1,466
1,466
4,504
4,504
Financial assets at fair value through profit or loss
Shares and interests
115
115
325
325
Derivative financial instruments
Hedge accounting
633
633
316
316
Held for trading
293
293
103
103
Total financial assets
23,975
23,975
29,089
29,089
Financial liabilities at amortized cost
Trade payables
11,320
11,320
12,594
12,594
Lease liabilities¹
5,443
5,443
6,554
6,554
Long-term loans – hedge accounting
19,222
19,222
19,902
19,902
Long-term loans – non-hedge accounting¹
30,695
29,988
35,088
35,072
Short-term loans – hedge accounting
–
–
877
877
Short-term loans – non-hedge accounting¹
9,834
9,781
11,081
11,103
Financial liabilities at fair value through profit or loss
Deferred considerations
1,045
1,045
1,362
1,362
Derivative financial instruments
Hedge accounting
161
161
221
221
Held for trading
170
170
224
224
Total financial liabilities
77,890
77,129
87,902
87,909
¹ Last year’s figures have been corrected as they contained incomplete data.
The fair value of long-term borrowing is based on observable
data by discounting cash flows to market rate, which is
deemed to correspond with level 2 according to the fair value
hierarchy. The fair value of current receivables and current lia
bilities is considered to correspond to the carrying amount.
Financial instruments: measured at fair value
SEK M
2023
2024
Carrying
amounts
Quoted
prices
(level 1)
Observable
data (level 2)
Non-observ
able data
(level 3)
Carrying
amounts
Quoted
prices
(level 1)
Observable
data (level 2)
Non-observ
able data
(level 3)
Financial assets
Derivative financial instru
ments
926
–
926
–
419
–
419
–
Financial liabilities
Derivative financial instru
ments
331
–
331
–
445
–
445
–
Deferred considerations
1,045
–
–
1,045
1,362
–
–
1,362
Measurement at fair value is classified hierarchically in three
different levels based on input data used in measurement of
the instruments. Deferred considerations relate to additional
payments for acquired companies. The size of a deferred con
sideration is usually linked to the earnings and sales trend in
an acquired company during a specific period of time.
Deferred consideration is measured on the day of acquisition
based on the best judgment of management regarding future
outcomes. Discounting takes place in the case of significant
amounts. Belongs to level 3 in the hierarchy.
For derivatives, the present value of future cash flows is cal
culated based on observable yield curves and exchange rates
on the balance sheet date. Belongs to level 2 in the hierarchy.
Note 36 continued
147
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Introduction
Who we are
ASSA ABLOY as an investment
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Report of the Board of Directors
Financial statements
Financial statements
Notes
• Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Five years in summary | Financial statements
Five years in summary
Amounts in SEK M unless stated otherwise
2020
2021
2022
2023
2024
Sales and income
Sales
87,649
95,007
120,793
140,716
150,162
Organic growth, %
–8
11
12
3
–1
Acquisitions and divestments, %
4
2
2
8
8
Operating income (EBIT) excluding items affecting comparability
11,916
14,181
18,532
22,185
24,296
Operating income (EBIT)
12,458
14,181
18,532
21,785
24,275
Income before tax (EBT)
11,676
13,538
17,521
19,254
20,893
Net income
9,172
10,901
13,296
13,639
15,621
Cash flow
Cash flow from operating activities
13,658
12,456
14,357
21,294
21,391
Cash flow from investing activities
–6,741
–3,094
–10,561
–47,899
–13,925
Cash flow from financing activities
–4,558
–7,813
–4,699
24,726
–4,447
Cash flow
2,359
1,549
–904
–1,880
3,019
Operating cash flow
14,560
13,265
15,808
25,232
23,052
Capital employed and financing
– Goodwill
58,344
62,502
75,873
92,873
106,874
– Other intangible assets
14,108
13,834
15,024
34,831
38,531
– Property, plant and equipment
8,026
8,753
10,106
11,460
12,653
– Right-of-use assets
3,513
3,436
3,804
5,296
6,295
– Other capital employed
5,867
8,796
13,244
12,060
13,019
Adjusted capital employed
89,858
97,321
118,052
156,520
177,373
– Restructuring reserve
–1,224
–658
–294
–767
–39
Capital employed
88,634
96,663
117,758
155,753
177,333
Non-controlling interests
9
9
12
16
10
Shareholders’ equity, excluding non-controlling interest
58,870
69,582
86,014
91,629
107,071
Data per share, SEK
Earnings per share before and after dilution
8.26
9.81
11.97
12.27
14.08
Earnings per share before and after dilution and excluding items
affecting comparability
7.54
9.81
11.97
13.54
14.09
Shareholders’ equity per share after dilution
53.00
62.64
77.44
82.49
96.39
Dividend per share
3.90
4.20
4.80
5.40
X.X1
Price of Series B share at year-end
202.50
276.20
223.70
290.30
326.80
Amounts in SEK M unless stated otherwise
2020
2021
2022
2023
2024
Key figures
Operating margin (EBIT), % excluding items affecting comparability
13.6
14.9
15.3
15.8
16.2
Operating margin (EBIT), %
14.2
14.9
15.3
15.5
16.2
Profit margin (EBT), %
13.3
14.2
14.5
13.7
13.9
Cash conversion
1.31
0.98
0.90
1.28
1.10
Return on capital employed, %
12.5
15.2
16.9
15.6
14.4
Return on equity, %
15.5
17.0
17.1
15.3
15.7
Equity ratio, %
50.1
53.5
55.7
46.7
47.9
Debt/equity ratio
0.51
0.39
0.37
0.70
0.66
Net debt/EBITDA
1.9
1.5
1.4
2.3
2.3
Total number of shares, thousands
1,112,576 1,112,576 1,112,576 1,112,576 1,112,576
Number of outstanding shares, thousands
1,110,776 1,110,776 1,110,776 1,110,776 1,110,776
Weighted average number of outstanding shares,
before and after dilution, thousands
1,110,776 1,110,776 1,110,776 1,110,776 1,110,776
Average number of employees
48,471
50,934
52,463
56,845
62,825
1 Dividend proposed by the Board of Directors.
%
0
5
10
15
20
24
23
22
21
20
Return on capital employed
%
0
5
10
15
20
24
23
22
21
20
Operating margin (EBIT)2
Number
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
24
23
22
21
20
Average number of employees
2 Excluding items affecting comparability.
148
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
• Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Comments on five years in summary
2020
Demand was negatively impacted during the year
by the Covid-19 pandemic. Organic growth was –8
percent for the Group, with a negative sales trend in
all divisions. Cost-saving measures and staff cuts have
largely offset the negative impact on earnings from
lower sales. A new restructuring program was also
launched at the end of the year, with plans to close
about ten plants and about thirty offices for a two-
year period. The operating cash flow remained strong
thanks to, among other things, cost reductions and
reduced working capital.
Demand was generally more stable in the more
mature markets in Europe and the US compared
with the trend in the emerging markets, especially in
Asia, the Middle East and Africa. The focus on product
development and innovation continued with undi
minished strength. Major investments were made in
R&D, where the full workforce was kept intact during
the year.
Operating income for the year, excluding items af
fecting comparability, decreased by 20 percent. Cash
flow remained strong. Acquisition activity continued
to be high during the year; for example, the acquisi
tion of agta record was completed.
2021
The mature markets in the US and Europe gradually
recovered during the year despite the continuation
of the Covid-19 pandemic and restrictions in many
countries. The continued restrictions in Asia meant
weaker recovery of demand. Organic growth was very
strong for the Group as a whole at 11 percent, with a
positive sales trend in all divisions.
However, rising material costs and scarcity of cer
tain components presented an operational challenge
and had a negative impact on sales and income. Oper
ating income excluding items affecting comparability
increased overall by 19 percent, and the operating
margin was 14.9 percent (13.6). Operating cash flow
remained strong during the year.
Acquisition activity was high, with thirteen busi
nesses acquired, primarily in the US and Europe. Addi
tional acquisition agreements were signed during the
year, primarily for HHI, a leading provider in the North
American residential segment. The Nordic locksmith
and security solution installer CERTEGO was divested.
The focus on product development and innovation
continued at a high level during the year, including
the launch of more than 400 new products on the
market.
Sustainability remains a priority area for ASSA
ABLOY. New initiatives were introduced during the
year in our effort to meet the Group’s sustainability
targets for 2025, with continued reductions in emis
sions, waste and water consumption.
2022
Demand was strong in most major market regions
apart from Asia during the year. The markets in both
the Americas and Europe developed well. Demand
remained weak in Asia, primarily in respect of China.
Organic growth was very strong for the Group as a
whole at 12 percent. Growth in electromechanical
products continued to develop well.
Business operations were affected negatively by
rising inflation, high material costs and supply chain
disruption. However, it was possible to manage
these challenges successfully thanks to the excellent
engagement of our employees. Operating income in
creased by 31 percent, and the operating margin was
15.3 percent (14.9). Operating cash flow remained
strong.
Acquisition activity was very high during the year,
with 21 businesses acquired, primarily in the US and
Europe.
The focus on product development and innovation
continued undiminished during the year, partly in the
form of major recruitment initiatives.
Sustainability remains a priority area for ASSA
ABLOY. Among other things, the Group had its
sustainability targets confirmed by the Science Based
Targets initiative (SBTi) during the year.
2023
Organic growth was good during the year, despite
gradually weaker demand from the private residen
tial market in general. The North American market
continued to develop well during the year in the
commercial business segments. In Europe, demand
was stable. Demand remained weak in Asia. Overall,
organic growth amounted to 3 percent. Growth in
electromechanical products continued to develop
well.
Operating income improved owing to strong
growth in fixed currency, good leverage from sales
price in relation to material costs combined with
continuous efficiency enhancements and cost
savings. A new restructuring program was launched
early in the year. Operating income excluding items
affecting comparability increased by 20 percent, and
the equivalent operating margin was 15.8 percent
(15.3). Operating cash flow remained very strong
thanks to good earnings and a reduction in working
capital tied up.
Acquisition activity was very high during the year,
with 24 businesses acquired, primarily in the US
and Europe. The acquisition of HHI was the largest
acquisition in ASSA ABLOY’s history and significantly
strengthens its presence in the private residential
market in North America. In connection with the
acquisition of HHI, Emtek and the Smart Residential
business in the US and Canada were divested.
Earnings per share, excluding items affecting com
parability, increased by 13 percent compared with the
previous year.
2024
In North America and Europe, organic sales were
stable for the year. Organic growth was strong for
Latin America and Africa, while it was negative for Asia
and Oceania. Organic growth totaled to –1 percent.
Growth from acquisitions and divestments remained
strong, totaling 8 percent.
Operating income rose by 11 percent to SEK 24,275
M (21,785), primarily attributable to strong growth in
fixed currency and good leverage from sales price in
relation to material costs combined with continuous
efficiency enhancements and cost savings. The oper
ating margin amounted to 16.2 percent (15.5), which
is in line with the Group’s long-term margin target.
Operating cash flow also remained very strong thanks
to good earnings and stable working capital tied up.
Acquisition activity remained very high during the
year, with 26 businesses acquired, primarily in the US
and Europe. Two divestment agreements were signed
during the year, including the sale of the Citizen ID
business unit in the Global Technologies division.
Earnings per share before and after full dilution
increased by 15 percent compared with the previous
year.
149
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Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
• Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Definitions of key ratios
Organic growth
Change in sales for comparable units after adjust
ments for acquisitions, divestments and exchange
rate effects.
Operating margin (EBITDA)
Operating income before depreciation, amortization
and impairment as a percentage of sales.
Operating margin (EBITA)
Operating income before amortization of intangible
assets recognized in business combinations, as a
percentage of sales.
Operating margin (EBIT)
Operating income as a percentage of sales.
Profit margin (EBT)
Income before tax as a percentage of sales.
Items affecting comparability
Restructuring costs and significant non-recurring
operating expenses such as revaluation of previously
owned shares in associates and goodwill impairment.
Operating cash flow
Cash flow from operating activities excluding restruc
turing payments and tax paid on income minus net
capital expenditure and repayment of lease liabilities.
See the table on operating cash flow for detailed
information.
Cash conversion
Operating cash flow in relation to income before tax
excluding items affecting comparability.
Net capital expenditure
Investments in, less sales of, intangible assets and
property, plant and equipment.
Capital employed
Total assets less interest-bearing assets and non-
interest-bearing liabilities, including deferred tax
liability.
Average adjusted capital employed
Average capital employed excluding restructuring
reserves for the last twelve months.
Net debt
Interest-bearing liabilities less interest-bearing assets.
See the table on net debt for detailed information.
Net debt/EBITDA
Net debt at the end of the period in relation to EBITDA
for the last twelve months.
Debt/equity ratio
Net debt in relation to equity.
Equity ratio
Shareholders’ equity as a percentage of total assets.
Shareholders’ equity per share
Equity excluding non-controlling interests in relation
to number of outstanding shares.
Return on equity
Net income attributable to parent company’s share
holders for the last twelve months as a percentage of
average parent company’s shareholders’ equity for
the same period.
Return on capital employed
Operating income (EBIT), excluding items affecting
comparability, for the last twelve months as a per
centage of average adjusted capital employed.
Earnings per share before and after dilution
Net income attributable to parent company’s
shareholders divided by weighted average number of
outstanding shares. None of the Group’s outstanding
long-term incentive programs are expected to result
in significant dilution in the future.
Earnings per share before and after dilution,
excluding items affecting comparability
Net income attributable to parent company’s share
holders, excluding items affecting comparability,
net of tax, divided by weighted average number of
outstanding shares. None of the Group’s outstanding
long-term incentive programs are expected to result
in significant dilution in the future.
150
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Board of Directors and CEO assurance | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
• Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Board of Directors and CEO assurance
The Board of Directors and the President and CEO declare that the consolidated accounts have been prepared in accordance with Interna
tional Financial Reporting Standards, IFRS, as adopted by the EU and give a true and fair view of the Group’s financial position and results.
The parent company’s annual accounts have been prepared in accordance with generally accepted accounting principles in Sweden and
give a true and fair view of the parent company’s financial position and results.
The Report of the Board of Directors for the Group and the parent company gives a true and fair view of the development of the Group’s and
the parent company’s business operations, financial position and results, and describes material risks and uncertainties to which the parent
company and the other companies in the Group are exposed.
The Board of Directors and the CEO also certify that the consolidated accounts and the annual accounts have been prepared in accordance
with the European Sustainability Reporting Standards (ESRS) and the specifications adopted under the EU Taxonomy Regulation.
Stockholm, 12 March 2025
Johan Hjertonsson
Chairman
Carl Douglas
Vice Chairman
Nico Delvaux
President and CEO
Erik Ekudden
Board member
Sofia Schörling Högberg
Board member
Lena Olving
Board member
Victoria Van Camp
Board member
Joakim Weidemanis
Board member
Susanne Pahlén Åklundh
Board member
Rune Hjälm
Board member
Employee representative
Bjarne Johansson
Board member
Employee representative
Our auditor’s report was issued on 14 March 2025
Ernst & Young AB
Hamish Mabon
Authorized Public Accountant
Auditor in charge
151
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Auditor’s report | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
• Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
This is a translation from the Swedish original.
To the general meeting of the shareholders of ASSA ABLOY AB (publ), corporate identity number 556059-3575.
Report on the annual accounts and consolidated accounts
Auditor’s report
Opinions
We have audited the annual accounts and consoli
dated accounts of ASSA ABLOY AB (publ) for the yeat
2024, except the corporate governance statement on
the pages 50–59 and the sustainability statement on
pages 60–109. The annual accounts and consolidat
ed accounts of the company are included on pages
43–146 in this document.
In our opinion, the annual accounts have been
prepared in accordance with the Annual Accounts Act
and present fairly, in all material respects, the financial
position of the parent company as of 31 December
2024 and its financial performance and cash flow for
the year then ended in accordance with the Annual
Accounts Act. The consolidated accounts have been
prepared in accordance with the Annual Accounts Act
and present fairly, in all material respects, the financial
position of the group as of 31 December 2024 and
their financial performance and cash flow for the year
then ended in accordance with International Financial
Reporting Standards (IFRS), as adopted by the EU, and
the Annual Accounts Act. Our opinions do not cover
the corporate governance statement on pages 50–59
or the sustainability statement on pages 60–109. The
statutory administration report is consistent with the
other parts of the annual accounts and consolidated
accounts.
We therefore recommend that the general meeting
of shareholders adopts the income statement and
balance sheet for the parent company and the group.
Our opinions in this report on the annual accounts
and consolidated accounts are consistent with
the content of the additional report that has been
submitted to the parent company’s audit committee
in accordance with the Audit Regulation (537/2014)
Article 11.
Basis for Opinions
We conducted our audit in accordance with Inter
national Standards on Auditing (ISA) and generally
accepted auditing standards in Sweden. Our responsi
bilities under those standards are further described
in the Auditor’s Responsibilities section. We are
independent of the parent company and the group in
accordance with professional ethics for accountants
in Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these require
ments. This includes that, based on the best of our
knowledge and belief, no prohibited services referred
to in the Audit Regulation (537/2014) Article 5.1 have
been provided to the audited company or, where
applicable, its parent company or its controlled com
panies within the EU.
We believe that the audit evidence we have ob
tained is sufficient and appropriate to provide a basis
for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that,
in our professional judgment, were of most signifi
cance in our audit of the annual accounts and consol
idated accounts of the current period. These matters
were addressed in the context of our audit of, and in
forming our opinion thereon, the annual accounts
and consolidated accounts as a whole, but we do
not provide a separate opinion on these matters. For
each matter below, our description of how our audit
addressed the matter is provided in that context..
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to
our assessment of the risks of material misstatement
of the financial statements. The results of our audit
procedures, including the procedures performed
to address the matters below, provide the basis for
our audit opinion on the accompanying financial
statements.
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Auditor’s report | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
• Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Goodwill and other intangible assets with indefinite use of life
Description
How our audit addressed this key audit matter
The value of goodwill and other intangibles with an
indefinite useful life as of 31 December 2024 amount
ed to 134.3 billion SEK. The Company performs an an
nual impairment test as well as whenever impairment
indicators are identified. The recoverable amount for
each cash-generating unit is determined as the value
in use, which is calculated based on the discounted
present value of future cash flows. Key assumptions
in these calculations include forecast operating
results, growth rates to extrapolate future cash flows
and discount rates to be applied on future estimated
cash flows. Applied discount rate (also referred to as”
WACC- Weighted Average Cost of Capital”) is present
ed in note 14.
An impairment test is a complex process and con
tains a high degree of judgment regarding future cash
flows and other assumptions, not least because it is
based on estimates of how the Company’s business
will be affected by future market developments
and by other economic events. Therefore, we have
assessed valuation of goodwill and other intangibles
assets with an indefinite useful life to be a key audit
matter.
In our audit we have evaluated and reviewed key
assumptions, the application of recognized valua
tion practices, discount rate (and other source data
that the Company has applied. We have made an
independent evaluation of whether there is a risk
that reasonably probable events would give rise to a
situation where the value in use would be lower than
the carrying amount. In this assessment, we have also
compared the company’s historical forecasts in the
impairment tests with the amounts that is the actual
outcome, in order to assess the company’s historical
precision in its estimates and assessments. We have
included valuation experts with appropriate skills
in the team performing our review. Finally, we have
evaluated disclosures provided in note 14, specifically
with regards to the disclosure of which of the stated
assumptions that are most sensitive in calculating the
value in use and the sensitivity analysis for those key
assumptions.
Provisions – Restructuring programs
Description
How our audit addressed this key audit matter
The restructuring program is described in the Report
of Board of Directors in the annual report in note
26. The outgoing balance as per December 31, 2024
amounts to 0.04 billion SEK. A provision for restruc
turing measures is recognized when the Group has
established a detailed plan and either implementa
tion has begun, or the main features of the measures
have been communicated to the parties involved.
In our audit we have focused on the recognition in
the proper period and valuation of the restructuring
provision as they require management’s judgment
and estimates.
Because of the significant amount and considerable
estimates involved, we have assessed restructuring
provision to be a key audit matter. .
We have reviewed the company’s process for identi
fying restructuring projects and the estimated costs
for these projects. Our audit procedures include
evaluating if the restructuring programs in all material
respects are in line with the accounting principles for
provisions, i.e. IAS 37. We have evaluated if there is an
obligation that represent future obligations. We have
challenged management’s assumptions that there are
basis for the restructuring provisions with the aim of
assessing the reasonability of the provisions. Based on
risk and materiality, we have reconciled the parame
ters in the calculation against supporting documenta
tion. This includes, among other things, the exam
ination of minutes, agreements, calculations and
communication with employees. We have evaluated
management’s assessments of remaining cashflows
by reviewing their quarterly project updates. Finally,
we have evaluated the disclosures provided regarding
restructuring activities in note 26.
153
ASSA ABLOY | ANNUAL REPORT 2024
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Auditor’s report | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
• Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Other Information than the annual accounts and consolidated accounts
This document also contains other information than
the annual accounts and consolidated accounts
and is found on pages 1–42, 60–109, 147–149 and
158–161. The other information also consists of the
compensation report that we obtained prior to the
date of this auditor’s report. The Board of Directors
and the Managing Director are responsible for this
other information.
Our opinion on the annual accounts and consoli
dated accounts does not cover this other information
and we do not express any form of assurance conclu
sion regarding this other information.
In connection with our audit of the annual accounts
and consolidated accounts, our responsibility is to
read the information identified above and consider
whether the information is materially inconsistent
with the annual accounts and consolidated ac
counts. In this procedure we also take into account
our knowledge otherwise obtained in the audit and
assess whether the information otherwise appears to
be materially misstated.
If we, based on the work performed concerning this
information, conclude that there is a material mis
statement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director
are responsible for the preparation of the annual
accounts and consolidated accounts and that they
give a fair presentation in accordance with the Annual
Accounts Act and, concerning the consolidated
accounts, in accordance with IFRS as adopted by the
EU. The Board of Directors and the Managing Director
are also responsible for such internal control as they
determine is necessary to enable the preparation of
annual accounts and consolidated accounts that are
free from material misstatement, whether due to
fraud or error.
In preparing the annual accounts and consolidated
accounts, The Board of Directors and the Managing
Director are responsible for the assessment of the
company’s and the group’s ability to continue as a
going concern. They disclose, as applicable, mat
ters related to going concern and using the going
concern basis of accounting. The going concern basis
of accounting is however not applied if the Board
of Directors and the Managing Director intends to
liquidate the company, to cease operations, or has no
realistic alternative but to do so.
The Audit Committee shall, without prejudice to
the Board of Director’s responsibilities and tasks in
general, among other things oversee the company’s
financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance
about whether the annual accounts and consolidated
accounts as a whole are free from material misstate
ment, whether due to fraud or error, and to issue an
auditor’s report that includes our opinions. Reason
able assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance
with ISAs and generally accepted auditing standards
in Sweden will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these annual accounts and consolidated
accounts.
As part of an audit in accordance with ISAs, we exer
cise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstate
ment of the annual accounts and consolidated
accounts, whether due to fraud or error, design
and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinions.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of the company’s internal
control relevant to our audit in order to design
audit procedures that are appropriate in the cir
cumstances, but not for the purpose of expressing
an opinion on the effectiveness of the company’s
internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting esti
mates and related disclosures made by the Board of
Directors and the Managing Director.
• Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the
going concern basis of accounting in preparing
the annual accounts and consolidated accounts.
We also draw a conclusion, based on the audit
evidence obtained, as to whether any material un
certainty exists related to events or conditions that
may cast significant doubt on the company’s and
the group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s
report to the related disclosures in the annual
accounts and consolidated accounts or, if such
disclosures are inadequate, to modify our opinion
about the annual accounts and consolidated
accounts. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause a company and a group to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and
content of the annual accounts and consolidated
accounts, including the disclosures, and whether
the annual accounts and consolidated accounts
represent the underlying transactions and events in
a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence
regarding the financial information of the entities
or business activities within the group to express
an opinion on the consolidated accounts. We are
responsible for the direction, supervision and
performance of the group audit. We remain solely
responsible for our opinions.
We must inform the Board of Directors of, among
other matters, the planned scope and timing of
the audit. We must also inform of significant audit
findings during our audit, including any significant
deficiencies in internal control that we identified.
We must also provide the Board of Directors with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, actions tak
en to eliminate threats or related safeguards applied.
From the matters communicated with the Board of
Directors, we determine those matters that were of
most significance in the audit of the annual accounts
and consolidated accounts, including the most
important assessed risks for material misstatement,
and are therefore the key audit matters. We describe
these matters in the auditor’s report unless law or
regulation precludes disclosure about the matter.
154
ASSA ABLOY | ANNUAL REPORT 2024
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Auditor’s report | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
• Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Report on other legal and regulatory requirements
Report on the audit of the administration and the proposed appropriations of the company’s profit or loss
Opinions
In addition to our audit of the annual accounts and
consolidated accounts, we have also audited the
administration of the Board of Directors and the
Managing Director of ASSA ABLOY AB (publ) for the
year 2024 and the proposed appropriations of the
company’s profit or loss.
We recommend to the general meeting of share
holders that the profit be appropriated (loss be dealt
with) in accordance with the proposal in the statutory
administration report and that the members of the
Board of Directors and the Managing Director be
discharged from liability for the financial year
Basis for opinions
We conducted the audit in accordance with generally
accepted auditing standards in Sweden. Our responsi
bilities under those standards are further described
in the Auditor’s Responsibilities section. We are
independent of the parent company and the group in
accordance with professional ethics for accountants
in Sweden and have otherwise fulfilled our ethical re
sponsibilities in accordance with these requirements.
We believe that the audit evidence we have ob
tained is sufficient and appropriate to provide a basis
for our opinions.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors is responsible for the proposal
for appropriations of the company’s profit or loss. At
the proposal of a dividend, this includes an assess
ment of whether the dividend is justifiable consider
ing the requirements which the company’s and the
group’s type of operations, size and risks place on the
size of the parent company’s and the group’s equity,
consolidation requirements, liquidity and position in
general.
The Board of Directors is responsible for the
company’s organization and the administration of
the company’s affairs. This includes among other
things continuous assessment of the company’s and
the group’s financial situation and ensuring that
the company’s organization is designed so that the
accounting, management of assets and the com
pany’s financial affairs otherwise are controlled in
a reassuring manner. The Managing Director shall
manage the ongoing administration according to the
Board of Directors’ guidelines and instructions and
among other matters take measures that are neces
sary to fulfill the company’s accounting in accordance
with law and handle the management of assets in a
reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administra
tion, and thereby our opinion about discharge from
liability, is to obtain audit evidence to assess with a
reasonable degree of assurance whether any member
of the Board of Directors or the Managing Director in
any material respect:
• has undertaken any action or been guilty of any
omission which can give rise to liability to the
company, or
• in any other way has acted in contravention of the
Companies Act, the Annual Accounts Act or the
Articles of Association.
Our objective concerning the audit of the proposed
appropriations of the company’s profit or loss, and
thereby our opinion about this, is to assess with
reasonable degree of assurance whether the proposal
is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in ac
cordance with generally accepted auditing standards
in Sweden will always detect actions or omissions
that can give rise to liability to the company, or that
the proposed appropriations of the company’s profit
or loss are not in accordance with the Companies Act.
As part of an audit in accordance with generally
accepted auditing standards in Sweden, we exercise
professional judgment and maintain professional
skepticism throughout the audit. The examination of
the administration and the proposed appropriations
of the company’s profit or loss is based primarily on
the audit of the accounts. Additional audit pro
cedures performed are based on our professional
judgment with starting point in risk and materiality.
This means that we focus the examination on such
actions, areas and relationships that are material for
the operations and where deviations and violations
would have particular importance for the company’s
situation. We examine and test decisions undertaken,
support for decisions, actions taken and other cir
cumstances that are relevant to our opinion concern
ing discharge from liability. As a basis for our opinion
on the Board of Directors’ proposed appropriations
of the company’s profit or loss we examined whether
the proposal is in accordance with the Companies
Act.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and
consolidated accounts, we have also examined that
the Board of Directors and the Managing Director
have prepared the annual accounts and consolidated
accounts in a format that enables uniform electronic
reporting (the Esef report) according to the Swedish
Securities Market Act (2007:528) for ASSA ABLOY AB
(publ) for the financial year 2024.
Our examination and our opinion relate only to the
statutory requirements.
In our opinion, the ESEF report has been prepared in
a format that, in all material respects, enables uniform
electronic reporting.
Basis for opinion
We have performed the examination in accordance
with FAR’s recommendation RevR 18 Examination of
the ESEF report. Our responsibility under this recom
mendation is described in more detail in the Auditors’
responsibility section. We are independent of ASSA
ABLOY AB (publ) in accordance with professional
ethics for accountants in Sweden and have otherwise
fulfilled our ethical responsibilities in accordance
with these requirements.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director
are responsible for the preparation of the Esef report
in accordance with Chapter 16, Section 4(a) of the
Swedish Securities Market Act (2007:528), and for
such internal control that the Board of Directors and
the Managing Director determine is necessary to pre
pare the Esef report without material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance
whether the Esef report is in all material respects
prepared in a format that meets the requirements
of Chapter 16, Section 4(a) of the Swedish Securities
Market Act (2007:528), based on the procedures
performed.
RevR 18 requires us to plan and execute procedures
to achieve reasonable assurance that the Esef report is
prepared in a format that meets these requirements.
Reasonable assurance is a high level of assurance,
but it is not a guarantee that an engagement carried
out according to RevR 18 and generally accepted
auditing standards in Sweden will always detect a ma
terial misstatement when it exists. Misstatements can
arise from fraud or error and are considered material
if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of the Esef report.
The audit firm applies ISQM 1 Quality Management
for Firms that Perform Audits and Reviews of Financial
Statements, and other Assurance and Related Servic
es Engagements which requires the firm to design,
implement and operate a system of quality manage
ment, including policies and procedures regarding
compliance with professional ethical requirements,
155
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Auditor’s report | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
• Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
professional standards and legal and regulatory
requirements.
The examination involves obtaining evidence,
through various procedures, that the Esef report
has been prepared in a format that enables uniform
electronic reporting of the annual and consolidat
ed accounts. The procedures selected depend on
the auditor’s judgment, including the assessment
of the risks of material misstatement in the report,
whether due to fraud or error. In carrying out this risk
assessment, and in order to design audit procedures
that are appropriate in the circumstances, the auditor
considers those elements of internal control that are
relevant to the preparation of the Esef report by the
Board of Directors and the Managing Director, but not
for the purpose of expressing an opinion on the effec
tiveness of those internal controls. The examination
also includes an evaluation of the appropriateness
and reasonableness of assumptions made by the
Board of Directors and the Managing Director.
The procedures mainly include a technical valida
tion of the Esef report, i.e. if the file containing the Esef
report meets the technical specification set out in the
Commission’s Delegated Regulation (EU) 2019/815
and a reconciliation of the Esef report with the audit
ed annual accounts and consolidated accounts.
Furthermore, the procedures also include an as
sessment of whether the Esef report has been marked
with iXBRL which enables a fair and complete ma
chine-readable version of the consolidated statement
of financial performance, financial position, changes
in equity and cash flow.
The auditor’s examination of the corporate governance statement
The Board of Directors is responsible for that the
corporate governance statement on pages 50–59
has been prepared in accordance with the Annual
Accounts Act.
Our examination of the corporate governance
statement is conducted in accordance with FAR’s
standard RevR 16 The auditor’s examination of the
corporate governance statement. This means that our
examination of the corporate governance statement
is different and substantially less in scope than an
audit conducted in accordance with Internation
al Standards on Auditing and generally accepted
auditing standards in Sweden. We believe that the
examination has provided us with sufficient basis for
our opinions.
A corporate governance statement has been
prepared. Disclosures in accordance with chapter
6 section 6 the second paragraph points 2–6 of the
Annual Accounts Act and chapter 7 section 31 the
second paragraph the same law are consistent with
the other parts of the annual accounts and consoli
dated accounts and are in accordance with the
Annual Accounts Act.
The auditor’s opinion regarding the statutory sustainability report
The Board of Directors is responsible for the statutory
sustainability report on pages 60–109, and that it is
prepared in accordance with the Annual Accounts
Act according to the previous wording in the Annual
Accounts Act that applied before July 1, 2024.
Our examination has been conducted in accord
ance with FAR’s auditing standard RevR 12 The
auditor’s opinion regarding the statutory sustain
ability report. This means that our examination of
the statutory sustainability report is different and
substantially less in scope than an audit conducted in
accordance with International Standards on Auditing
and generally accepted auditing standards in Sweden.
We believe that the examination has provided us with
sufficient basis for our opinion.
A statutory sustainability report has been prepared.
Ernst & Young AB with Hamish Mabon as auditor in charge, Box 7850, 103 99 Stockholm was appointed auditor
of ASSA ABLOY AB (publ) by the general meeting of the shareholders on 24 April 2024 and has been the company’s
auditor since the 29 April 2020.
Stockholm March 14 2025
Ernst & Young AB
Hamish Mabon
Authorized Public Accountant
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Auditor’s limited assurance report of ASSA ABLOY AB (publ)’s voluntary sustainability statement | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
• Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Conclusion
We have been appointed by the Board of Directors
to conduct a limited assurance engagement of the
sustainability statement for ASSA ABLOY AB (publ) for
the financial year 2024. The sustainability statement
is included on page 60 to 109 in this document.
Based on our limited assurance engagement as de
scribed in the section Auditor's responsibility, nothing
has come to our attention that causes us to believe
that the sustainability statement does not, in all
material respects, meet the requirements of Chapter
6, Sections 12–12f of the Swedish Annual Accounts
Act which includes,
• whether the sustainability statement complies with
the requirements of the ESRS;
• whether the process the company has carried out
to identify reported sustainability information has
beenconducted as described in the sustainability
statement;
• compliance with the reporting requirements of the
EU Green Taxonomy Regulation Article 8.
Basis for conclusion
We have conducted the limited assurance engage
ment in accordance with FAR's recommendation
RevR 19 Revisorns översiktliga granskning av den lag
stadgade hållbarhetsrapporten. Our responsibility ac
cording to this recommendation is further described
in the section Auditor's Responsibility.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
conclusion.
Other Matter
The comparative information included in the sustain
ability statement of ASSA ABLOY AB (publ) for the
financial year 1 January – 31 December 2023 was not
subject to an assurance engagement. Our conclusion
is not modified in respect of this matter.
Other information than the sustainability statement
This document also contains other information than
the sustainability statement and is found on pages
21 to 59, 110 to 150 and 157 to 161. The Board of
Directors and the Managing Director are responsible
for this other information.
Our conclusion on the sustainability statement
does not cover this other information and we do not
express any form of assurance conclusion regarding
this other information.
In connection with our limited assurance engage
ment on the sustainability statement, our respon
sibility is to read the information identified above
and consider whether the information is materially
inconsistent with the sustainability statement. In this
procedure we also take into account our knowledge
otherwise obtained in the limited assurance engage
ment and assess whether the information otherwise
appears to be materially misstated.
If we, based on the work performed concerning this
information, conclude that there is a materieal mis
statement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the sustainability
statement in accordance with Chapter 6, Sections
12–12f of the Swedish Annual Accounts Act, and for
such internal control as they determine is necessary to
enable the preparation of the sustainability statement
that is free from material misstatements, whether due
to fraud or error.
Auditor’s responsibilities
Our responsibility is to express a conclusion on
whether the sustainability statement has been pre
pared in accordance with Chapte 6, Sections 12–12f
of the Swedish Annual Accounts Act based on our
review. The limited assurance engagement has been
conducted in accordance with FAR’s recommenda
tion RevR 19 Revisorns översiktliga granskning av den
lagstadgade hållbarhetsrapporten. This recommenda
tion requires that we plan and perform our proce
dures to obtain limited assurance that the sustaina
bility statement is prepared in accordance with these
requirements.
The procedures in a limited assurance engagege
ment vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower
than the assurance that would have been obtained
had a limited assurance engagement been per
formed. This means that it is not possible for us to
obtain such assurance that we become aware of all
significant matters that could have been identified
if a reasonable assurance engagement had been
performed.
Our firm applies ISQM 1 (International Standard on
Quality Management), which requires the firm to de
sign, implement and operate a quality management
system, including policies and procedures regarding
compliance with ethical requirements, profession
al standards, and applicable legal and regulatory
requirements.
We are independent of ASSA ABLOY AB (publ) in
accordance with professionalethics for accountantsin
Sweden and have otherwise fulfilled our ethical re
sponsibilities in accordance with these requirements.
A limited assurance engagement involves per
forming procedures to obtain evidence to support
sustainability information. The auditor selects the
procedures to be performed, including assessing the
risks of material misstatements in the sustainability
statement, whether due to fraud or error. In this risk
assessment, the auditor considers the parts of the
internal control that are relevant to how the Board
of Directors and the Managing Director prepare the
sustainability statement, in order to design proce
dures that are appropriate under the circumstances,
but not for the purpose of providing a conclusion on
the effectiveness of the company's internal control.
The review consists of making inquiries, primarily
of persons responsible for the preparation of the
sustainability statement, performing analytical review
and conducting other limited review procedures.
Auditor’s limited assurance report of ASSA ABLOY AB (publ)’s voluntary sustainability statement
This is the translation of the auditor’s report in Swedish
To the company ASSA ABLOY AB, org.nr 556059-3575
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Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
• Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Stockholm on 14 March 2025
Ernst & Young AB
Hamish Mabon
Authorized Public Accountant
Appointed by the Board of Directors of ASSA ABLOY
Our review procedures regarding the process the
company has undertaken to identify sustainability
information to report included, but were not limited
to, the following:
• Obtain an understanding of the process by:
• Performing inquiries to understand the sources
of imformation used by management (e.g. stake
holders dialogues, business plans, and strategy
documents), and
• Review the company's internal documents of its
process; and
• Evaluate whether the information obtained from
our procedures about the process implemented by
the Company is consistent with the description of
the process in the sustainability statement.
Our review procedures regarding the sustainability
statement included, but were not limited to, the
following:
• Through inquiries, obtain a general understanding
of the internal control environment, reporting
processes, and information systems relevant to the
preparation of the information in the sustainability
statement.
• Evaluate whether information identified as material
through the process that the company has carried
out to identify the content of the sustainability
statement, is also included.
• Evaluate whether the structure and presentation of
the sustainability statement are in accordance with
the requirements of the ESRS;
• Obtain, through inquiries and analytical review
procedures, support for the methods used for
preparing material estimates and forward-looking
information and on how these methods were
applied;
• Obtain an understanding of the process of identify
ing economic activities that are eligible in accord
ance with EU Green Taxonomy and the correspond
ing disclosures in the sustainability statement.
Inherent limitations in preparing the sustainability
statement
In reporting forward-looking information in accord
ance with ESRS, the Board of Directors and the Man
aging Director of ASSA ABLOY AB (publ) are required
to prepare the forward-looking information on the
basis of disclosed assumptions about events that
may occur in the future and possible future actions
by ASSA ABLOY AB (publ). Actual outcomes are likely
to be different since anticipated events frequently do
not occur as expected.
Auditor’s limited assurance report of ASSA ABLOY AB (publ)’s voluntary sustainability statement | Financial statements
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Shareholder information | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
• The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
The ASSA ABLOY share
Share price trend
The stock market decreased at the beginning of the
year but started to increase from the second half of
January. Higher than expected inflation in key markets
through March and April had a negative effect on the
stock market, but it continued thereafter to develop
positively and the OMX Stockholm PI index was up
by 8.0 percent at the end of June as inflation slowed
down and expectations of interest rate cuts grew.
The ASSA ABLOY share price had a stable devel
opment in the beginning of the year and started to
increase in February. It was up by 3.2 percent at the
end of June.
Share price and turnover 2015–2024
0
20,000
40,000
60,000
80,000
100,000
120,000
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
0
50
100
150
200
250
300
350
400
SEK
No. of shares traded, thousands
ASSA ABLOY B
OMX Stockholm PI
ASSA ABLOY B, total return
SIX Return Index
No. of shares traded, thousands (incl. after hours)
Source: Nasdaq and Infront
Dividend per share 2015–2024
Share price and turnover 2024
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
D
N
O
S
A
J
J
M
A
M
F
J
250
270
290
310
330
350
SEK
No. of shares traded, thousands
SEK
0
1
2
3
4
5
6
24
23
22
21
20
19
18
17
16
15
2024 proposed dividend
ASSA ABLOY B
OMX Stockholm PI
No. of shares traded, thousands (incl. after hours)
Source: Nasdaq and Infront
In the first half of August, the global stock exchang
es fell by about 10 percent due to concerns over
weaker economies. However, by the end of August,
markets had recovered. From the end of September
to the end of the year, the OMX Stockholm PI index
fell by 6.0 percent as concerns grew over slower
interest rate cuts. For the full year, OMX Stockholm PI
increased 5.7 percent, while ASSA ABLOY’s share price
closed at SEK 326.80, an increase of 12.6 percent.
The highest closing price for the ASSA ABLOY Series
B share in 2024 was SEK 346.80, recorded on 6 De
cember. The lowest price of SEK 278.10 was recorded
on 5 January. At year-end, market capitalization
amounted to SEK 363,590 M (322,981), calculated on
both Series A and Series B shares.
Listing and trading
ASSA ABLOY’s Series B share has been listed on
Nasdaq Stockholm, Large Cap list, since 8 November
1994, under the ISIN code SE 0007100581. On 8
November 2024, the share price had grown by 18,069
percent versus the closing price on 8 November 1994.
Turnover of the Series B share on Nasdaq Stockholm
in 2024 amounted to 358 million shares (400), equiv
alent to a turnover rate of 34 percent (38). Trading
now takes place on both regulated markets and other
trading platforms with a large proportion of shares
traded on markets other than Nasdaq Stockholm.
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Shareholder information | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
• The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Ownership structure
The number of shareholders at the end of 2024 was
59,699 (57,080) and the ten largest shareholders
accounted for 35.1 percent (35.7) of the share capital
and 55.7 percent (56.1) of the votes. Shareholders
with more than 50,000 shares, a total of 285 share
holders, accounted for 97 percent (97) of the share
capital and 98 percent (98) of the votes. Investors
outside Sweden, owning 64.1 percent (64.5) of the
share capital, accounted for 43.7 percent (44.0) of the
votes, and were mainly in the US and the UK.
Data per share
SEK/share1
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Earnings after tax and dilution
6.93
7.092
7.77
8.092
9.222
7.542
9.81
11.97
13.542
14.092
Dividend
2.65
3.00
3.30
3.50
3.85
3.90
4.20
4.80
5.40
5.903
Dividend yield, % 4
1.5
1.8
1.9
2.2
1.8
1.9
1.5
2.1
1.9
1.8
Dividend, % 5
38.2
42.3
42.5
43.3
41.8
51.7
42.8
40.1
39.9
41.9
Share price at year-end
178.00
169.10
170.40
158.15
219.00
202.50
276.20
223.70
290.30
326.80
Highest share price
189.00
190.10
197.10
193.90
231.40
246.50
288.20
281.80
290.50
346.80
Lowest share price
135.00
148.40
163.80
155.85
154.45
159.35
200.20
203.70
226.10
278.10
Equity
37.43
42.51
45.60
46.71
53.25
53.00
62.64
77.44
82.49
96.39
Number of shares, millions
1,112.6
1,112.6
1,112.6
1,112.6
1,112.6
1,112.6
1,112.6
1,112.6
1,112.6
1,112.6
1 Adjustments made for new issues and stock split (3:1) in 2015 for all historical periods prior to 2015.
2 Excluding items affecting comparability.
3 Dividend proposed by the Board of Directors.
4 Dividend as percentage of share price at year-end.
5 Dividend as percentage of earnings per share after tax and dilution, excluding items affecting comparability.
Ownership structure (share capital)
Investment AB Latour, 9.5%
Melker Schörling AB, 3.1%
BlackRock, 4.0%
Vanguard, 3.9%
Swedbank Robur Fonder, 3.7%
Capital Group, 2.9%
Handelsbanken Fonder, 2.4%
Fidelity Investments (FMR), 2.2%
Alecta Tjänstepension, 2.1%
Norges Bank Investment Management, 1.5%
Other shareholders, 64.9%
Ownership structure (votes)
Investment AB Latour, 29.4%
Melker Schörling AB, 10.9%
BlackRock, 2.7%
Vanguard, 2.6%
Swedbank Robur Fonder, 2.5%
Capital Group, 2.0%
Handelsbanken Fonder, 1.7%
Fidelity Investments (FMR), 1.5%
Alecta Tjänstepension, 1.4%
Norges Bank Investment Management, 1.0%
Other shareholders, 44.3%
ASSA ABLOY’s ten largest shareholders
Based on the share register at 31 December 2024.
Shareholders
Series A shares
Series B shares
Total number
of shares Share capital1, %
Votes1, %
Investment AB Latour
41,595,729
63,864,435
105,460,164
9.5
29.4
Melker Schörling AB
15,930,240
18,106,557
34,036,797
3.1
10.9
BlackRock
44,025,745
44,025,745
4.0
2.7
Vanguard
42,958,768
42,958,768
3.9
2.6
Swedbank Robur Fonder
40,699,175
40,699,175
3.7
2.5
Capital Group
32,010,731
32,010,731
2.9
2.0
Handelsbanken Funds
26,910,014
26,910,014
2.4
1.7
Fidelity Investments
24,597,457
24,597,457
2.2
1.5
Alecta Tjänstepension
22,924,073
22,924,073
2.1
1.4
Norges Bank
16,989,122
16,989,122
1.5
1.0
Other shareholders
721.964,288
721.964,288
64.9
44.3
Total number
57,525,969
1,055,050,365
1,112,576,334
100.0
100.0
1 Based on the number of outstanding shares and votes of 1,112,576,334 and 1,630,310,055 respectively.
Source: Modular Finance AB and Euroclear Sweden AB.
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Shareholder information | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
Auditor’s limited assurance report of
the voluntary sustainability statement
Shareholder information
• The ASSA ABLOY share
Information for shareholders
Financial calendar and contact details
Share capital and voting rights
The share capital amounted to SEK 370,858,778
at year-end 2024, distributed among a total of
1,112,576,334 shares, comprising 57,525,969 Series
A shares and 1,055,050,365 Series B shares. All
shares have a par value of around SEK 0.33 and give
shareholders equal rights to the company’s assets
and earnings. The total number of votes amounted to
1,630,310,055. Each Series A share carries ten votes,
and each Series B share one vote.
Repurchase of own shares
Since 2010, the Board of Directors has requested and
received a mandate from the Annual General Meeting
to repurchase and transfer ASSA ABLOY Series B
shares. The aim has been, among other things, to
secure the company’s undertakings in connection
with its long-term incentive programs (LTI). The
2024 Annual General Meeting authorized the Board
of Directors to acquire, during the period until the
next Annual General Meeting, a maximum number
of Series B shares so that after each repurchase ASSA
ABLOY holds a maximum 10 percent of the total
number of shares in the company. ASSA ABLOY holds
a total of 1,800,000 Series B shares after repurchase.
The cost for these shares amounts to SEK 103 M. The
shares account for around 0.2 percent of the share
capital and each share has a par value of around SEK
0.33. No shares were repurchased in 2024.
Dividend and dividend policy
The objective of the dividend policy is that, in the
longterm, the dividend should be equivalent to 33-50
percent of income after standard tax while taking into
account ASSA ABLOY’s long-term financing require
ments.
The Board of Directors proposes a dividend to
shareholders of SEK 5.90 per share (5.40) for the 2024
financial year. The dividend is proposed to be paid in
two equal installments, the first with the record date
of 25 April 2025 and the second with the record date
of 11 November 2025. If the proposal is adopted at
the Annual General Meeting, the first installment is
estimated to be paid on 30 April 2025 and the second
installment on 14 November 2025. The proposal is
equivalent to a total dividend yield on the Series B
share of 1.8 percent (1.9).
In 2024 the total return on the ASSA ABLOY share,
defined as market price movement plus reinvested
dividends, was 14.5 percent compared with the rein
vested SIX Return Index in Stockholm, which was up
8.6 percent. Over the ten-year period 2015–2024, the
total return on ASSA ABLOY’s Series B share was 180
percent, compared with the reinvested SIX Return
Index in Stockholm, which increased by 155 percent.
Changes in share capital
Year
Transaction
Series A
shares
Series C
shares
Series B
shares
Share capital,
SEK1
1989
20,000
2,000,000
1994
Split 100:1
2,000,000
2,000,000
1994
Bonus issue
1994
Non-cash issue
1,746,005
1,428,550
50,417,555
53,592,110
1996
New share issue
2,095,206
1,714,260
60,501,066
64,310,532
1996
Conversion of Series C shares into Series A shares
3,809,466
60,501,066
64,310,532
1997
New share issue
4,190,412
66,541,706
70,732,118
1998
Converted debentures
4,190,412
66,885,571
71,075,983
1999
Converted debentures before split
4,190,412
67,179,562
71,369,974
1999
Bonus issue
1999
Split 4:1
16,761,648
268,718,248
285,479,896
1999
New share issue
18,437,812
295,564,487
314,002,299
1999
Converted debentures after split and new share
issues
18,437,812
295,970,830
314,408,642
2000
Converted debentures
18,437,812
301,598,383
320,036,195
2000
New share issue
19,175,323
313,512,880
332,688,203
2000
Non-cash issue
19,175,323
333,277,912
352,453,235
2001
Converted debentures
19,175,323
334,576,089
353,751,412
2002
New share issue
19,175,323
344,576,089
363,751,412
2002
Converted debentures
19,175,323
346,742,711
365,918,034
2010
Converted debentures
19,175,323
347,001,871
366,177,194
2011
Converted debentures
19,175,323
349,075,055
368,250,378
2012
Converted debentures
19,175,323
351,683,455
370,858,778
2015
Split 3:1
57,525,969
1,055,050,365
370,858,778
1 SEK 1 per share before split in 2015 – number of shares at the end of the period and around SEK 0.33 per share after split in 2015. Number of shares at
the end of the period 1,112,576,334 (including repurchase of own shares).
161
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Shareholder information | Financial statements
Introduction
Who we are
ASSA ABLOY as an investment
Divisions overview
Report of the Board of Directors
Financial statements
Financial statements
Notes
Five years in summary
Comments on five years in summary
Definitions of key ratios
Board of Directors and CEO assurance
Auditor’s report
The auditor’s audit report of the voluntarily
prepared sustainability report
Shareholder information
The ASSA ABLOY share
• Information for shareholders
• Financial calendar and contact details
Information for shareholders
Annual General Meeting
The 2025 Annual General Meeting of ASSA ABLOY AB
will be held on Wednesday 23 April 2025 at 3.30 p.m.,
at 7A Posthuset, Vasagatan 28, 111 20 Stockholm,
Sweden.
Right to participate and notification
A person has the right to participate at the Annual
General Meeting if the person:
• is recorded as a shareholder in the share register
kept by Euroclear Sweden AB on Friday 11 April
2025, and
• has given notice of its participation to ASSA ABLOY
AB no later than Tuesday 15 April 2025. Notice of
participation shall be given on the company’s web
site assaabloy.com/general-meeting, by telephone
+46 8-402 90 71 or in writing by mail to ASSA
ABLOY AB, “2025 Annual General Meeting”, c/o
Euroclear Sweden AB, P.O. Box 191,
SE-101 23 Stockholm, Sweden.
The notification must state name, personal or
corporate identification number, address, telephone
number and names of any assistants attending.
Proxy
If the shareholder is represented by proxy, a written
and dated power of attorney signed by the sharehold
er must be enclosed to the notification and be pre
sented in original at the latest at the Annual General
Meeting. Proxy form is available upon request and
will be available on the company’s website assaabloy.
com/general-meeting. If the proxy is issued by a legal
entity, a certificate of incorporation or equivalent
authorization document must be enclosed.
Nominee registered shares
Shareholders whose shares are nominee registered
through a bank or other nominee must, in addition
to giving notice of participation, request that their
shares be temporarily registered in their own name
in the share register kept by Euroclear Sweden AB (so
called voting right registration) in order to be entitled
to participate in the Annual General Meeting. The
shareholders’ register for the General Meeting as of
the record date Friday 11 April 2025 will take into
account voting right registrations completed no later
than Tuesday 15 April 2025. Shareholders concerned
must, in accordance with each nominee’s routines,
request that the nominee makes such voting right
registration well in advance of that date.
Nomination Committee
The Nomination Committee has the task of preparing,
on behalf of the shareholders, proposals regarding
the election of Chairman of the General Meeting,
members of the Board of Directors, Chairman of the
Board, Vice Chairman of the Board, auditor, fees for
the board members including division between the
Chairman, the Vice Chairman, and the other board
members, as well as fees for committee work, fees
to the company’s auditor and any changes of the
instructions for the Nomination Committee.
The Nomination Committee prior to the 2025 An
nual General Meeting comprises Johan Menckel (In
vestment AB Latour), Mikael Ekdahl (Melker Schörling
AB), Marianne Nilsson (Swedbank Robur Fonder),
Yvonne Sörberg (Handelsbanken Fonder) and Carina
Silberg (Alecta). Johan Menckel is Chairman of the
Nomination Committee.
Dividend
The Board of Directors proposes a dividend to share
holders of SEK 5.90 per share for the 2024 financial
year. The dividend is proposed to be paid in two equal
installments, the first with the record date 25 April
2025 and the second with the record date 11 Novem
ber 2025. If the proposal is adopted by the Annual
General Meeting, the first installment is estimated to
be paid on 30 April 2025 and the second installment
on 14 November 2025.
Financial calendar and contact details
Annual General Meeting and dividend
Annual General Meeting
23 April 2025
Shares traded excluding right to dividend of SEK 2.95
24 April 2025
Record day for dividend
25 April 2025
Payment of dividend
30 April 2025
Shares traded excluding right to dividend of SEK 2.95
10 November 2025
Record day for dividend
11 November 2025
Payment of dividend
14 November 2025
Financial reporting
Interim Report January–March 2025
23 April 2025
Half-year Report January–June 2025
17 July 2025
Interim Report January–September 2024
21 October 2025
Year-end Report 2025
February 2026
Further information
Christiane Belfrage
Corporate Communications
Telephone +46 (0)8 506 485 10
Christiane.Belfrage@assaabloy.com
Björn Tibell
Investor Relations
Telephone +46 (0)8 506 485 73
Bjorn.Tibell@assaabloy.com
Reports can be ordered from ASSA ABLOY AB
Website
assaabloy.com
Telephone
+46 (0)8 506 485 00
Email
info@assaabloy.com
Mail
ASSA ABLOY AB
Box 70340
SE-107 23 Stockholm
Sweden
ASSA ABLOY's annual report for the financial year
1 January–31 December 2024 is dated on 12 March
2025.
This copy of the annual financial reporting of ASSA
ABLOY AB (publ) for the year ended 31 December
2024 is not presented in the ESEF format as specified
in the Regulatory Technical Standards on ESEF
(Delegated Regulation (EU) 2019/815).
The ESEF reporting package is available at
ASSA ABLOY’s website assaabloy.com
Production: ASSA ABLOY in cooperation with Narva.
Photo: ASSA ABLOY’s own photographic library,
among others.
Printing: By Wind, Stockholm, 2025.
ASSA ABLOY AB
Box 70340
SE-107 23 Stockholm
Sweden
Visiting address:
Klarabergsviadukten 90
Tel +46 (0)8 506 485 00
Fax +46 (0)8 506 485 85
Reg. No. 556059-3575
assaabloy.com
© ASSA ABLOY
Celebrating
30 years
of innovation
ASSA ABLOY was founded in 1994
when the Swedish company Assa and
the Finnish company Abloy merged.
Over the past 30 years, ASSA ABLOY
has grown from a lock company with
4,700 employes and SEK 3,6bn in sales
in 1994 into the global leader in access
solutions with 63,000 employees
and SEK 150 bn in sales. Clear and
consistent strategies together with
successful integration of close to
400 acquisitions in a decentralized
organization have paved the path for
this incredible journey. Read more on
pages 16–17.
ASSA ABLOY
30 years!