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ASSA ABLOY is organized into three geographical divisions and one product division. The geographical divisions, EMEA (Europe, Middle East and Africa), Americas (North and South America) and Asia Pacific (Asia, Australia and New Zealand), consist of a number of local lock companies which are active mainly on a local market. The product division, Global Technologies, comprises ASSA ABLOY Entrance Systems, ASSA ABLOY Hospitality, ASSA ABLOY Identification Technology and ASSA ABLOY HID, all of which serve a global market. Functions common to the whole Group appear in the column headed 'Other' in the table.
From 1 January 2006 ASSA ABLOY Entrance Systems has become a separate division.
EMEA
Sales totaled EUR 1,255 M (1,210), with organic growth of 3 percent. Operating income amounted to EUR 184 M (174), with an operating margin (EBIT) of 14.7 percent (14.4). Return on capital employed amounted to 16.6 percent (16.3). Operating cash flow before interest paid amounted to EUR 205 M (201).
EMEA made stable progress over the year as a whole, with good sales performance in Scandinavia and Britain in particular. Growth markets in eastern Europe, the Middle East and Africa are continuing to develop well. Other European markets showed stable sales overall. The structural changes in the division affected results positively but were offset by higher selling costs.
Americas
Sales totaled USD 1,182 M (1,129), with organic growth of 5 percent. Operating income amounted to USD 217 M (199), with an operating margin (EBIT) of 18.3 percent (17.6). Return on capital employed amounted to 19.6 percent (18.2). Operating cash flow before interest paid amounted to USD 236 M (192).

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Americas' good performance was due to improved demand in the USA, specifically in the important commercial segment. The Architectural Hardware Group, which represents about 40 percent of Americas' sales, showed an improved sales trend and continued to improve its profitability. The Door Group showed strong growth, due largely to price rises resulting from the increased cost of steel. The Residential Group showed strong growth and profitability. Other units are showing weaker performance.

              Global          
  EMEA1 Americas2 Asia Pacific3 Technologies4 Other Total  
  EUR M USD M AUD M SEK M SEK M SEK M
Local currency 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
Sales, external 1,225 1,179 1,177 1,125 356 320 5,638 4,811 27,802 25,526
Sales, internal 30 31 5 4 33 23 122 100 –622 –533    
Sales 1,255 1,210 1,182 1,129 389 343 5,760 4,911 –622 –533 27,802 25,526
Organic growth 3% 3% 5% 6% 2% 7% 10% 5% 5% 5%
Share of earnings in associates 0 0 1 1 0 8 8
Operating income (EBIT) 184 174 217 199 43 52 811 632 –300 –269 4,078 3,683
Operating margin (EBIT) 14.7% 14.4% 18.3% 17.6% 11.1% 15.1% 14.1% 12.9% 14.7% 14.4%
Net financial items –522 –484
Tax on income –943 –843
Net income 2,613 2,356
Capital employed 1,077 1,046 1,098 1 104 340 324 6,180 5,322 –389 –268 26,653 23,461
– of which, goodwill 499 495 664 654 171 159 4,736 4,313 15,716 13,917
Return on capital employed 16.6% 16.3% 19.6% 18.2% 12.9% 16.8% 14.1% 11.8% 15.9% 15.3%
Assets 1,417 1,424 1,341 1,264 417 388 9,104 6,431 –1,862 475 33,692 30,117
– of which, shares in associates 4 4 0 0 0 37 36
Liabilities 340 376 243 160 77 64 2,924 1,108 10,767 12,977 19,279 18,864
Operating income (EBIT) 184 174 217 199 43 52 811 632 –300 –269 4,078 3,683
Depreciation / amortization 54 58 31 31 12 12 78 95 9 10 882 923
Investments in fixed assets –42 –49 –17 –36 –20 –13 –187 –104 –57 –24 –871 –894
Sales of fixed assets 6 12 2 9 13 8 46 26 20 16 204 244
Change in working capital 3 6 3 –11 –2 –8 –100 3 –52 53 –110 –12
Cash flow 5 205 201 236 192 46 51 648 652 4,183 3,944
Adjustment for non-cash items –26 –16 –26 –16
Paid and received interest –455 –489 –455 –489
Operating cash flow 5 3,702 3,439
Acquisitions of shares in companies –3 –78 –27 –18 –195 –62 –1 –13 –384 –917
Disposals of shares in companies 8 62
Average number of employees 12, 405 12,774 9,251 9,767 4,352 3,629 3,481 2,925 89 65 29,578 29,160
1 Europe, Middle East and Africa.                        
2 North and South America.                        
3 Asia, Australia and New Zealand.
4 ASSA ABLOY Entrance Systems, ASSA ABLOY Hospitality, ASSA ABLOY Identification Technology and ASSA ABLOY HID.
5 Excluding restructuring payments.
Asia Pacific
Sales totaled AUD 389 M (343), with organic growth of 2 percent. Operating income amounted to AUD 43 M (52), with an operating margin (EBIT) of 11.1 percent (15.1). Return on capital employed amounted to 12.9 percent (16.8). Operating cash flow before interest paid amounted to AUD 46 M (51).
During the year Australia performed well in the commercial segment but the performance of the residential segment in Australia and New Zealand is a burden on the whole division. Restructuring costs and dilution by acquired units were the main factors in the division's reduced margin. Sales in Asia were good. The acquisitions of Best Metaline in South Korea and Wangli in China strengthen the division's position on these important growth markets.
Global Technologies
Sales totaled SEK 5,760 M (4,911), with organic growth of 10 percent. Operating income amounted to SEK 811 M (632), with an operating margin (EBIT) of 14.1 percent (12.9). Return on capital employed amounted to 14.1 percent (11.8). Operating cash flow before interest paid amounted to SEK 648 M (652).
Global Technologies is performing well, with strong sales growth and a rising margin.
ASSA ABLOY Entrance Systems achieved good sales growth during the year, especially in the service sector, which improved its market position in both Europe and the USA.
The market for ASSA ABLOY Hospitality developed well during the year. Profitability improved in line with growing sales and ongoing restructuring.
ASSA ABLOY Identification Technology is showing strong sales growth for a variety of product applications based on RFID technology.
ASSA ABLOY HID performed well, especially in North America, with strong growth and high margins.

              Global              
  EMEA1 Americas2 Asia Pacific3 Technologies4 Other   Total  
                             
SEKM 2005 2004 2005 2004 2005 2004 2005 2004 2005   2004 2005   2004
Sales, external 11,369 10,747 8,775 8,242 2,019 1,726 5,638 4,811 27,802 25,526
Sales, internal 280 284 31 28 190 121 122 100 –622   –533    
Sales 11,649 11,031 8,806 8,270 2,209 1,847 5,760 4,911 –622   –533 27,802 25,526
Organic growth 3% 3% 5% 6% 2% 7% 10% 5% 5%   5%
Share of earnings in associates 4 4 4 4 0   8   8
Operating income (EBIT) 1,707 1,586 1,615 1,456 245 278 811 632 –300   –269 4,078 3,683
Operating margin (EBIT 14.7% 14.4% 18.3% 17.6% 11.1% 15.1% 14.1% 12.9% 14.7% 14.4%
Net financial items –522   –484
Tax on income –943   –843
Net income 2,613 2,356
Capital employed 10,151 9,433 8,726 7,303 1,985 1,671 6,180 5,322 –389   –268 26,653 23,461
– of which, goodwill 4,709 4,462 5,276 4,324 995 818 4,736 4,313   15,716 13,917
Return on capital employed 16.6% 16.3% 19.6% 18.2% 12.9% 16.8% 14.1% 11.8% 15.9% 15.3%
Assets 13,360 12,850 10,657 8,360 2,432 2,001 9,104 6,431 –1,862   475 33,692 30,117
– of which, shares in associates 34 33 2 2 1   37   36
Liabilities 3,209 3,393 1,931 1,055 447 331 2,924 1,108 10,767 12,977 19,279 18,864
Operating income (EBIT) 1,707 1,586 1,615 1,456 245 278 811 632 –300   –269 4,078 3,683
Depreciation / amortization 499 529 230 227 66 62 78 95 9   10 882   923
Investments in fixed assets –390 –436 –126 –263 –111 –67 –187 –104 –57   –24 –871   –894
Sales of fixed assets 55 96 12 68 71 38 46 26 20   16 204   244
Change in working capital 30 51 24 –76 –12 –43 –100 3 –52   53 –110   –12
Cash flow 5 1,901 1,826 1,755 1,412 259 268 648 652 4,183 3,944
Adjustment for non-cash items –26   –16 –26   –16
Paid and received interest –455   –489 –455   –489
Operating cash flow 5 3,702 3,439
Acquisitions of shares in companies –30 –707 –158 –135 –195 –62 –1   –13 –384   –917
Disposals of shares in companies 62     62
Average number of employees 12,405 12,774 9,251 9,767 4,352 3,629 3,481 2,925 89   65 29,578 29,160
1 Europe, Middle East and Africa. 4 ASSA ABLOY Entrance Systems, ASSA ABLOY Hospitality, ASSA ABLOY Identification Technology and ASSA ABLOY HID.    
2 North and South America. 5 Excluding restructuring payments.                    
3 Asia, Australia and New Zealand.