1

Q1 Report 2014 Johan Molin

President & CEO

Financial highlights Q1 2014

Continued good development – Strong growth in EMEA and good growth in ESD – Growth in Americas, Global Tech and APAC – Continued gains of efficiency and savings – Easter effect in Europe and severe winter in the US

Sales 12,305 MSEK +13% 4% organic, 8% acquired growth, 1% currency

EBIT 1,857 MSEK +12% Currency effect 13 MSEK

EPS 3.41 SEK +11% Underlying tax rate 26%

2

Shift to e-cylinders for utilities and authorities – Cloud services, high reliability, key control

and increased flexibility drives demand

Shift of locking technology in hotel market – RFID locks with virtual keys increasingly popular

Walmart service contract – 1,660 stores in 11 states, driving service & equip sales

New Innovation awards at ISC west – Best in Locks/Safes/Hardware – Best in Access Control Products

- Wireless

3

Market highlights

4

Group sales in local currencies Jan-Mar 2014

2 +15

35 +23 13 +2

4 +9

1 +22

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

45 +7

Emerging markets 22% of sales

-15-12-9-6-303691215182124

28 00031 00034 00037 00040 00043 00046 00049 00052 000

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

Sales growth, currency adjusted

5

2014 Q1 +12% Organic +4% Acquired +8%

Sales MSEK Growth, %

Operating income (EBIT*), MSEK

4 500

5 500

6 500

7 500

8 500

900

1 100

1 300

1 500

1 700

1 900

2 100

2 300

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

Quarter 12-months

Run rate 8,118 MSEK (7,509) +8%

6

12,0

13,0

14,0

15,0

16,0

17,0

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

Q1 -0.5% 2014 FC -0.4%

Operating margin (EBIT), %

Run rate 2014 16.3% (16.1)

Long term target range (average)

7

EBIT Margin

Manufacturing footprint

8

Status manufacturing footprint programs 2006-2013: – 57 factories closed to date, 21 to go – 70 factories converted to assembly, 19 to go – 28 offices closed, 19 to go

Personal reduction QTD 123p and total 8,481p

1,503p in further planned reductions

1,279 MSEK of the provision remains for all programs

Margin highlights Q1 2014

EBIT margin 15.1% (15.3) -0.2%

+ Volume increase +3%, price +1%

+ Margin decrease -0.2% + Organic growth + Manufacturing footprint + Efficiency improvements - Acquisitions -0.5%

9

Acquisitions 2014

Fully active pipeline

4 new acquisitions in 2014

Annualized sales 400 MSEK

Completed acquisitions 2014 Lumidigm Unilock Safeguard Traka

10

Safeguard, Norway

11

Turnover of 240 MSEK with 110 employees

Strong presense in Oslo and oil industry

Good fit with ASSA ABLOY locksmith chain

Accretive to EPS

Unilock, Korea

12

Turnover of 60 MSEK with 30 employees

Adds product range of Digital Cabinet Locks

Complements existing business in Korea and China

Technology gives access to US and European markets

Accretive to EPS

Lumidigm, USA

13

Turnover of 160 MSEK with 33 employees

Authentication based on advanced fingerprint biometrics

Utilizes multispectral imaging technology

Unique patented technology

Neutral to EPS

Division - EMEA

Strong growth in Scandinavia, Germany, Africa and Eastern Europe

Good growth UK, Benelux, France and Iberia

Flat in Italy and Finland and slight decline in Israel

Investment in front-end and R&D

Positive Easter effect

Operating margin (EBIT) + Organic 5% + Footprint savings - Careful investments - Dilution (-0.3%)

SALES share of

Group total %

28

14

13 14 15 16 17 18 19

2009 2010 2011 2012 2013 2014

EBIT %

Division - Americas

Strong growth in Residential and Latin America

Growth in Doors and Electromechanical

Flat in AHW and decline in High security and Canada

Good efficiency improvements

Tough winter

Operating margin (EBIT)

+ Organic 2%

+ Efficiency improvements

- Currency & dilution (-0.4%)

16

SALES share of

Group total %

22

18

19

20

21

22

2009 2010 2011 2012 2013 2014

EBIT %

Division - Asia Pacific

Strong growth in Australia and New Zealand

Growth in China and Korea

Decline in South East Asia

Strong impact from currencies (-0.9%)

Continued outsourcing in China

Operating margin (EBIT) = Organic 3% + Efficiency in China - Cost pressure in China - Currency (-0.9%)

11

18

SALES share of

Group total %

5 7 9

11 13 15 17

2009 2010 2011 2012 2013 2014

EBIT %

Division - Global Technologies

HID – Good growth in IDT – Growth in IAM (Identity and access management) – Weak Gov ID and Project sales – Consolidation of North American operations to Austin

Hospitality – Continued strong growth – Good profit development

Operating margin (EBIT) + Organic 3% + Currency gain (+0.6%) - Dilution (-0.4%)

12

20

SALES share of

Group total %

13 14 15 16 17 18 19 20

2009 2010 2011 2012 2013 2014

EBIT %

Division - Entrance Systems Strong growth in Industrial Doors, High Speed Doors

and Flexiforce

Growth in Door automatics, US dockings and US industrial doors

Slightly negative EU residential and Ditec

Consolidation develops well

Rapid growth +23%, EBIT +16%

Operating margin (EBIT) + Organic 4% + Good efficiency improvements + Currency (+0.3%) - Dilution (-1.4%)

27

22

SALES share of

Group total %

11 12 13 14 15 16 17 18

2009 2010 2011 2012 2013 2014

EBIT %

24

Q1 Report 2014 Carolina Dybeck Happe

CFO

Financial highlights Q1 2014

MSEK 2013 2014 Change 2012 2013 Change

Sales 10,868 12,305 +13% 46,619 48,481 +4% Whereof Organic growth +4% +2% Acquired growth +8% +4% FX-differences +109 +1% -1,156 -2% Operating income (EBIT)* 1,662 1,857 +12% 7,501 7,923 +5% EBIT-margin (%) )* 15.3 15.1 16.1 16.3 Operating cash flow 498 557 +12% 7,044 6,803 -3% EPS (SEK)* 3.07 3.41 +11% 13.97 14.84 +6%

1st Quarter Twelve months

25

*) Excluding restructuring items of 1,000 MSEK for the full year 2013.

Bridge Analysis – Jan-Mar 2014

MSEK 2013

Jan-Mar

Organic Currency Acq/Div 2014

Jan-Mar

4% 1% 8% 13%

Revenues 10,868 394 109 933 12,305

EBIT 1,662 97 13 84 1,857

% 15.3% 24.6% 12.2% 9.0% 15.1%

Dilution / Accretion 0.3% 0.0% -0.5%

26

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

Direct material 32.8% 33.4% 34.6%

Conversion costs 27.1% 26.9% 26.5%

Gross Margin 40.1% 39.7% 38.9%

S, G & A 24.8% 24.1% 23.8%

EBIT 15.3% 15.6% 15.1%

2014 Q1 excluding acquisitions

2013 Q1

2014 Q1

27

Operating cash flow, MSEK

3 0003 5004 0004 5005 0005 5006 0006 5007 0007 5008 000

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2007 2008 2009 2010 2011 2012 2013 2014

Quarter Cash Rolling 12-months EBT Rolling 12 months

28

Quarter 12 months

Gearing % and net debt MSEK

0

20

40

60

80

100

120

0

5 000

10 000

15 000

20 000

25 000

30 000

2007 2008 2009 2010 2011 2012 2013 2014

Net debt Gearing

Debt/Equity 72 (57)

Net debt/EBITDA 2.3 (1.8)

29

Net Debt Gearing

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

Earnings per share, SEK

6,007,008,009,0010,0011,0012,0013,0014,0015,0016,00

0,000,501,001,502,002,503,003,504,00

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

Quarter SEK 12-months

30

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

Since 2006 EPS +90% Dividend 2014: 5.70 SEK (5.10)

31

Q1 Report 2014 Johan Molin

President & CEO

Conclusions Q1 2014

Sales growth by 13% with 4% organic – Europe with good growth – Weak North America – South America and Africa with strong growth

Dilution from acquisitions (-0.5%)

Efficiency improvements supports profit

EBIT improvement of 12% to 1,857 MSEK

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Q&A