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Good growth in the markets for tagging industrial products and livestock benefited Sokymat, although the growth was partly offset by increased government regulations.
2005 also showed good growth for Omnikey's desktop smart-card readers for logical access to computers. The applications include home banking, E-commerce and credit-card payments.
ASSA ABLOY Entrance Systems
The business unit changed its name from Automatic Doors to ASSA ABLOY Entrance Systems during 2005. Sales continued to grow strongly during the year.
In 2004 Besam's US manufacturing was relocated to the Group's production unit in Charlotte, North Carolina. It has generated good improvements in efficiency, allowing faster growth, and the US operations developed well in 2005. Most markets in Europe also generated higher product sales, and margins increased due to continued growth in service sales. ASSA ABLOY Entrance Systems' EntreMatic brand, whose products are targeted at smaller customers via distributors, doubled its sales in 2005.
A new factory in China, operated jointly with the Asia Pacific division, started production in January 2005. The factory will manufacture mainly low-price products for both local and export markets.
The main factory in Landskrona, Sweden, focuses on high-end products, and has improved efficiency by adopting Lean manufacturing processes.
ASSA ABLOY Entrance Systems made several small acquisitions during 2005. The most important was Doorman in the UK, which supplies, installs and services manual and automatic doors and roller shutters throughout the country and has a strong presence in the retail segment.
ASSA ABLOY Hospitality
The new management team focused on improving customer service, reorganizing the sales force, and reducing manufacturing costs and overheads. The business generated strong organic growth with clearly improved results. The travel industry has begun to pick up, which has stimulated building of new hotels, but high fuel costs and the impact of natural disasters on key vacation spots are raising concerns about this being sustained. Continued restructuring of the business unit aims to strengthen competitiveness further.
Sales in 2005 were led by large casino and hotel pro-jects. They included installation of Timelox systems at the new Wynn's Hotel in Las Vegas and VingCard systems at the newly opened Disneyland in Hong Kong. In addition, strong development in China was driven by construction
of hotels for the 2008 Olympics and the general good economic climate in the region.
Ongoing initiatives
ASSA ABLOY HID
As customers accelerate their upgrading from old technologies, investment in new products and in sales and marketing resources will continue. The convergence of physical and IT security is helping to drive sales of higher-margin multi-technology ID cards. There is also great potential for adding new technology into traditional mechanical products. One initiative is to focus on embedded technologies.
ASSA ABLOY Identification Technology (ITG)
In its core area of RFID and ID management, ITG expects significant growth from sales of the next generation of products using contactless smart card technology. The business unit will focus on industrial applications and on passports, where RFID may be combined with biometrics.
ITG has a strong growth potential in all segments, both organically and by acquisitions. The business unit continues to evaluate acquisition opportunities to further complement its product offering.
KEY PRIORITIES
Establish a presence in growing RFID markets by developing new products.
Improve efficiency and lower production costs.
Increase service and maintenance business in ASSA ABLOY Hospitality and ASSA ABLOY Entrance Systems.
Coordinate strategy for key-account management with the Group's other divisions to increase sales of all Global Technologies products.
Global Technologies divisionsales by product group

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ASSA ABLOY Entrance Systems
The business unit will focus on providing customers with integrated solutions combining products and services for entrances. Marketing activities for the EntreMatic brand will be increased. New products are being developed for markets of low penetration or high growth such as eastern Europe and Asia.
ASSA ABLOY Entrance Systems will continue to pursue an active acquisition strategy to expand its geographical presence, enlarge its product portfolio and augment its service operations. Focus on the higher-margin service business will continue, using key-account management to attract major retail, industrial and commercial customers.
ASSA ABLOY Hospitality
ASSA ABLOY Hospitality introduced its new modular Signature product line in November 2005. This will be followed by a number of products to be released over the next year which can be used to upgrade existing hotel security solutions as well in new hotel systems. These include a new check-in system, a 'contactless' RFID lock system and a wireless communications system.
The business unit will focus on its strongest and best-known brands, VingCard and Elsafe. Ongoing restructuring will be directed at reducing manufacturing costs and overheads, streamlining logistics and the supply chain, and developing key-account management. The focus on services will continue.
High stakes and high security
Bellagio, one of Las Vegas's most famous luxury hotel-casinos, opened its newly built Spa Tower at the start of the year. The Spa Tower is a 33-storey hotel complex with 809 rooms, 109 suites and two presidential suites. The extension gives the hotel a total of 4,000 rooms.
The new hotel rooms in the Spa Tower are fitted with hotel locks and safes supplied by ASSA ABLOY. Most of the room locks have infrared communication with a receiver inside the room, providing a cost-effective online alternative to other types of connection. The receiver is linked to a server that allows receptionists and security staff to see if a door has been left ajar. If a staff member loses a pass card it can easily be cancelled without having to physically check locks. Guests can also change rooms without having to be issued with a new card. In addition, the system provides sequential and roaming intruder alarms, low-battery or maintenance-needed notification, an instant staff locator, and electronic event lists with real-time data transfer.
The new hotel rooms in the Spa Tower are fitted with hotel locks and safes supplied by ASSA ABLOY. Most of the room locks have infrared communication with a receiver inside the room, providing a cost-effective online alternative to other types of connection. The receiver is linked to a server that allows receptionists and security staff to see if a door has been left ajar. If a staff member loses a pass card it can easily be cancelled without having to physically check locks. Guests can also change rooms without having to be issued with a new card. In addition, the system provides sequential and roaming intruder alarms, low-battery or maintenance-needed notification, an instant staff locator, and electronic event lists with real-time data transfer.
Bellagio chose to work with ASSA ABLOY because this provided access to local sales and support in Las Vegas, a factor that turned out to be decisive. The client was also looking for the features that the online system could offer. Furthermore, Bellagio had good experience from an earlier partnership in 2003, when hotel rooms in the older building were renovated.