world of scandinavia - assa abloy...assa abloy’s organization in den-mark consists of the lock...

28 • ASSA ABLOY / 2000

This is the multidomestic world of ASSA ABLOY

We are the world leader in the lockbusiness, but within each countryproximity to our customers and localexperience remain the prerequisitesfor our success. At the same time we must exploit the strengths of ourglobal resources. We call this combi-nation ‘multi-domestic’.

Here follows a presentation of our operations:

■ Scandinavia■ Finland■ France and Belgium■ Germany and the Netherlands■ United Kingdom■ Spain, Portugal and Italy■ North America■ Australia and New Zealand■ New Markets■ Hotel locks

ASSA ABLOY / 2000 • 29

Scandinavia:

Stable growth strongest in Sweden

Market and market trendsScandinavian operations continue toshow stable growth. This is due primarily to a well established localproduct mix which is supported byincreased cross-selling in Scandinaviaof products from other Group compan-ies such as Mul-T-Lock in Israel andjpm in France. A new range of productsfor the diy market segment was launched during the year as a colla-borative project by the Scandinaviancompanies, with individual local pro-filing in each country.

During 2000 Sweden has displayedstronger growth than Norway andDenmark, particularly in new con-struction. However, an upswing inboth the Norwegian and Danish marketsis expected in 2001.

SWEDENSales by companies in Sweden amoun-ted to SEK 1,071 M (958). Export salesto Group companies in other countriesamounted to SEK 162 M and otherexports totaled SEK 142 M.

assa abloy’s organization inSweden comprises Assa ab, AssaIndustri ab, fix ab, ab fas Låsfabrik,Solid ab, and the locksmith’s whole-saler aki Låsgrossisten ab acquired inlate 1999.

Assa Industri and fix manufactureand market products for oem cus-tomers, with Scandinavia the main market. Assa Industri manufactureshinges, lock cases and industrial cylinderlocks, while fix produces multipointlocks and door and window hardware.ab fas Låsfabrik manufactures andmarkets lever locks and other locks forprivate homes and safes.

Assa and Solid are active in the areas of commercial and residential construction. Assa manufactures and

markets security systems based on acomplete range of mechanical and electromechanical lock products,including locks and fittings for doorsand windows. To support sales of complete packages, new tools have beenintegrated into the ‘asm’ specificationsoftware. Solid’s product range focuseson access control and access-relatedproducts.

Individual locksmiths form themain distribution channel for productsby Assa and Solid. This channel is

currently undergoing dynamic develop-ment due to the increased importanceof electromechanical products and theresulting change in the overall productmix. In 2000 Assa and Solid focused on strengthening relationships anddeveloping sales with locksmiths.

In 2000 the Swedish market hasshown a slow increase in building activity, focused on the big cities andespecially on the south of Sweden as aresult of the new bridge betweenSweden and Denmark.

The new ‘smart homes’ at Värmdö outside Stockholm make use of the Smart Security concept fromAssa and Solid. The system’s flexible electronics mean that residents need only a single key for lockingand unlocking all doors, while the secure and well-proven mechanics guarantee physical security.


New products launched during theyear include the Twin Exclusive seriesof high-security cylinders developedprimarily for export to East Europe, anextended range of panic exit devicesdeveloped jointly with jpm in France,and a new range of hinges for theDanish market which are expected toachieve extensive sales in 2001.

NORWAYSales by companies in Norwayamounted to SEK 507 M (521). Exportsales to Group companies in other

countries amounted to SEK 41 M andother exports totaled SEK 18 M.

assa abloy’s organization inNorway consists of TrioVing a.s. andLåsgruppen a.s.

TrioVing is Norway’s leading lockmanufacturer, selling to the construc-tion industry, oem and retrofit mar-kets. In 2000 TrioVing sales continuedto grow, helped by the company’s ongoing good working relationship withthe Norwegian Locksmith Associationand its various security centers.TrioVing also continued to strengthen

its market position by upgrading itsproduct portfolio, with increased focuson electromechanical products andother high-security locking systems.

TrioVing has also manufacturedand marketed the complete range of Grorud door hardware since the merger of the companies in 1999. Anoperation to move the manufacture ofGrorud products to Urbis in Romaniastarted during 2000 to boost Groupoperating efficiency, and this had nega-tive impact on the year’s income.

Låsgruppen is a group of five lock-

Located right on the waterfront, Fisketorvet, the first ‘American style’ shopping mall in Copenhagen, recently opened its doors to the public with more than 100shops, 15 restaurants and 10 cinemas – and the high-security Combi Plus masterkey system from Ruko.


smith retailers which, together withother leading locksmiths, make up theTrioVing Security Centers group.These centers play a leading role indeveloping the market for high-security products and in encouraging skilledinstallation and high quality standardsof after-service. In 2000 Låsgruppen’selectric strike business developed wellbeyond expectations and shows goodpromise for the future.

DENMARKSales by companies in Denmarkamounted to SEK 312 M (298). Exportsales to Group companies in othercountries amounted to SEK 42 M andother exports totaled SEK 6 M.

assa abloy’s organization in Den-mark consists of the lock manufacturer Ruko a/s and its subsidiaries Ruko Ser-vice a/s, fix a/s and M. Sloth & Co a/s.

Ruko is the leading total supplierto the lock and security market inDenmark. Its core business centers onmechanical masterkey systems basedon the Combi high-security cylinder,which meets the highest security class-ification of the Danish Standard. Rukoalso leads the trend toward highersecurity across Denmark with productssuch as electromechanical locks andelectronic access control systems,which are steadily growing in impor-tance. Complementary services includenew software to help calculate master-key systems and key control systems.Through its growing chain of servicecenters Ruko also markets productsmade by Group companies in assaabloy.

Ruko Service is responsible for after-sales services and fix a/s handles allsales of Group products to the Danishdoor and window industry. M. Sloth &Co, acquired late in 1999, is the largest

wholesaler of locks in Denmark.The Danish market in 2000 was

characterized by changing market conditions and structures, increasedcompetition, and rising demand forproducts of high quality and high secu-rity, backed by high standards of service.Ruko has aimed to accommodate thesechanges through continued strong co-operation with professional distribu-tors. This was aided by the acquisitionof M. Sloth & Co, which boostednationwide distribution capability.

Ruko has also increased its presenceon the Internet, which functions as aservice tool for professionals as well asindividuals, and has intensified internaland external efforts to provide custom-er service, on-time delivery and flexibleproduction. Focus on human resourcemanagement and the creation of a healthy, sustainable working environ-ment has resulted in Ruko beingcategorized in the highest class by theNational Working Environment Autho-rity.

Ruko’s export sales increased during 2000. A large proportion ofexports go to Group companies, helpedby the international design appeal of products such as the company’sfunxion door furniture and high-security padlocks.

SEK M 2000 1999 1998 1997 1996

Sales 1,889 1,777 1,701 1,660 1,364

Average no.of employees 1,726 1,651 1,657 1,702 1,352

Mechanical locks, lock systems andaccessories, 57%

Security doors and fittings, 18%

Industrial locks, 5%

Electromechanicallocks and electronic

locks, 20%

Sales by product group

Trends

Scandinavia:Consolidated sales by companies in the Scandinavian countries in 2000amounted to SEK 1,889 M (1,777), representing organic growth of 6 percent.

GROUP VICE PRESIDENT ASSA ABLOY:HANS JOHANSSON

SWEDEN:COUNTRY MANAGER: HANS JOHANSSON

Assa ABManufactures and markets mechanical and electromechanical lock products. President: Hans Johansson

Assa Industri ABManufactures and markets lock cases, hinges and cabinet locks for industrial customers.President: Hans Johansson

AB FAS LåsfabrikMarket leader in mortise deadlocks.President: Ulf Petersson

FIX AB Manufactures and markets multifunction solutions forwindows, window-doors and security doors. President: Stellan Svensson

Solid ABDevelops and markets access control products.President: Hans Johansson

AKI Låsgrossisten AB *One of Sweden's leading locksmith's wholesalers.President: Harry Grabinsky

Another company in the Swedish organization is Assa Portuguesa LDA.

NORWAY:COUNTRY MANAGER: HANS JOHANSSON

Låsgruppen a.s.Markets and sells locks and fittings.President: Bjørn Haugsvaer

TrioVing a.s.Total supplier of locks and security products for theNorwegian market.President: Tor-Arne Jensen

DENMARK:COUNTRY MANAGER: CARL TROCK

Ruko A/STotal supplier of locks and security products for the Danish market.President: Carl Trock

FIX A/SSells ASSA ABLOY products to the Danish door and window industry.President: Keld Madsen

Ruko Service A/SSupplier of after-sales service for lock systems.President: Peter Gram-Nielsen

M. Sloth & Co. A/S **One of Denmark’s leading locksmith’s wholesalers.President: Poul Sloth* Consolidated from April 1 2000** Consolidated from July 1 2000


Operations of assa abloy in Finlandconsist of Abloy Oy and BjörkbodaLås Oy Ab. Abloy manufactures and markets mechanical and electro-mechanical locks, cylinders, door closers, fire-door closing systems,handles and fittings. Björkboda Låsproduces lock cases for interior doors,cylinder lock cases and high-securitylever locks.

Market and market trendsOn the domestic market Abloy achieveda strong increase in sales by maintain-ing its market share in all segmentswhile also finding some major newcustomers. The home market for archi-tectural hardware recovered after theprevious year’s decline. Despite tight-ened competition from copied and low-cost products, the company main-tained its market share.

In an annual survey carried out bythe Finnish market research companyTaloustutkimus Oy, abloy was rankedthe most valued brand name inFinland. 1400 Finnish people agedfrom 15 to 74 were asked to evaluate300 domestic and foreign brandscovering every field of commerce.

Exports by all abloy business unitsincreased strongly, by an overall figureof 23 percent. All major market areas

in Europe, North America and AsiaPacific showed growth. Exports ofdoor closers grew fastest, due to increased sales in the usa. The doorcloser plant increased sales by 45 per-cent compared to 1999 and improvedits profitability. Sales in Russia have started to recover from the period ofrecession.

Björkboda Lås increased its exportsto the Baltic countries and Poland andstarted to develop new markets else-where in eastern Europe. Growth ofsales in Russia was also promising. InUkraine, Abloy opened a new representa-tive office in Kiev to develop the localabloy sales and service network.

The trend towards higher securityThe trend towards electromechanicallocking solutions is strengtheningrapidly in mature markets and develop-ing in new market areas, which supports the sales of abloy electro-mechanical lock cases worldwide.Abloy has pioneered the developmentof electromechanical locks since thelate 1970s, and today has a leadingrange of such locks for different appli-cations and different market Standards.

In cooperation with other Groupcompanies Abloy developed a range of

emergency exit products in Finlanddesigned to conform with the newEuropean (cen) Standard. This newrange, launched in autumn 2000, sup-ports cross-selling within the Group:the exit handles are supplied by jpm inFrance and the lock cases byBjörkboda Lås.

On the domestic market, the trendtowards higher security is illustratedby the continuously growing demandfor abloy exec and the electro-mechanical abloy exec id cylinders inlocking systems for buildings.

New products and initiativesThe abloy trademark is well knownamong professionals in the securitybusiness worldwide. From the begin-ing of 2001, therefore, the FinnishGroup companies have decided to startusing abloy as a universal trademarkin export markets for all door hard-ware products manufactured by Abloyand Björkboda Lås. These include lockcases (previously branded boda) andarchitectural hardware (previouslyprimo). Having a complete abloyrange will help our foreign customersto identify and choose complete product packages to obtain reliablehigh-security and high-quality lockingsolutions for the whole door environ-

United brand consolidates sales strengthsFinland:

ment. On the domestic market primowill continue to be used beside abloybecause of the brand’s strong footholdin Finland.

The abloy project-hardware salesconcept, centered on the professionalhigh-security abloy disklock procylinders, was renewed and launchedin export markets. This also utilizesthe benefits of one single trademarkfor the complete range of abloy doorhardware.

Björkboda Lås extended its rangeof fire-rated products and locks forexterior doors for central and easternEurope.

Cross-selling of padlocks was startedwith Lockwood, Australia. The Lock-wood padlock range is complementedby steel padlocks from Abloy.

People make the differenceContinued success depends on theskills and commitment of everyemployee. Abloy pays constant atten-tion to staff motivation, and has beenable to set development targets andachieve clear improvement in servicefunctions by engaging employees in theplanning and development of theirwork. Before making changes, themanagement coordinates feedbackfrom various sources, including an

annual questionnaire to all personnel.Measures taken are then evaluated fortheir effects on profitability, lead timesand customer service as well as improvedworking conditions.

At Björkboda Lås, the whole work-force is actively involved in a continuousimprovement program which focuseson developing internal functions andteamwork and improving workingmethods and the working environ-ment.

In 2000 Abloy ran a schooling pro-gram in customer relations manage-ment, where the complete domesticsales force analyzed different aspects oftheir relations with customers and coll-eagues and took part in setting devel-opment targets. Both employees andmanagers found the program helpfulin finding new operation models withthe emphasis on the customer and instrengthening cooperation betweenfactory personnel and sales units at dif-ferent locations in Finland.

Abloy OyManufactures and markets lock cylinders, mechanicaland electromechanical locks and architectural hardware. President: Matti Virtaala

Abloy Oy’s business areasConstruction Locks, Manager: Kari Mononen.Industrial Locks Manager: Juha Pikkarainen.Electromechanical Locks Manager: Matti Ahola.Architectural Hardware Manager: Kyösti Sormunen.Door Closers Manager: Markku Kuivalainen.Exports Manager: Jari Toivanen.Domestic Market Manager: Kari Mononen.

Abloy Oy Eesti FiliaalMarkets and sells ABLOY products in the Baltic countries. Manager: Ahti Ovaskainen

Abloy Oy Representative Office RussiaMarkets and sells ABLOY products in Russia.Manager: Lauri Honka

Abloy Oy Representative Office UkraineMarkets and sells ABLOY products in Ukraine.Manager: Volodymyr Livinsky

Björkboda Lås Oy AbManufactures and markets lock cases.President: Henry Engblom

SEK M 2000 1999 1998 1997 1996

Sales 1,060 898 811 744 620

Average no.of employees 1,123 1,020 970 905 849

Mechanical locks,lock systems andaccessories, 58%




locks, 16%


Trends

Finland:Sales by companies in the Finnishorganization in 2000 amounted to SEK 1,060 M (898). Organic growthwas 14 percent. Export sales toGroup companies in other countriesamounted to SEK 334 M and otherexports totaled SEK 138 M.

GROUP VICE PRESIDENT ASSA ABLOY:MATTI VIRTAALA


The Ice Palace in St. Petersburg is furnished with ABLOY DISKLOCK PRO cylinders and ABLOY mechanicaland electromechanical lock cases, architectural hardware and door closers. High security, key control,good reputation and the availability of a complete product package were the reasons for choosing ABLOY for this project.


The operations of assa abloy Franceconsist of six French companies – thelock manufacturers Vachette, jpm,Laperche and Stremler, the high-security locking specialist FichetSerrurie Bâtiment (acquired in Decem-ber 1999) and the fittings manu-facturer Bezault – as well as the Belgianlock manufacturer Litto.

Market and market trendsassa abloy France sustained its volumegrowth in the first quarter, with a gooddomestic market and brisk exportsales. A temporary slowdown followedat the end of the second quarter, andthe summer months of June and Julywere slower than expected. Volumesthen improved considerably after theholidays, and significant growth in thelast quarter brought total sales growthfor 2000 back in line with last year.

The Belgian market performedbetter and Litto achieved very stronggrowth on its domestic market andsome export markets.

The French market is becomingmore polarized. Demand for higher-added-value products is increasing,and the trend towards higher securityis starting to become important in theselection of locks by the door industry.The important high-end segments,represented in France by masterkeysystems, multipoint locks, exit devices,electromechanical locks and high-securitymetal doors, showed good growth thisyear. The electromechanical area isfragmented in France and assa abloyas a whole is one of the larger opera-tors. In 2000 the market respondedenthusiastically to launches of newgenerations of motorized multipointlocks from the company’s market-leading electromechanical operationsat Laperche/icb.

The gap to entry-level products iswidening. Cheaper import alternativesat the very low end of the productrange have had some penetration intodistributors that put less emphasis on security and quality deliveries.Following a decision by assa abloyFrance to avoid low-added-value operations, the increased pressure onprices at this end of the product rangeslowed overall volume development.

The trend towards highersecurityIn 2000 the assa abloy France organi-zation took several steps to increaseawareness of the need for higher securitycombined with high safety andfunctionality. The integration of FichetSerrurerie Bâtiment (fsb) added notonly a wealth of expertise and experiencebut also an extremely well establishedhigh-security image. fsb now sells mostof its lock systems with a2p certifica-tion from the French cnpp authority.

In order to promote greater aware-ness about lock technology amongboth professionals and the generalpublic, assa abloy France created anew watchdog organization, l’Observa-toire de la Sécurité, during the year. Itsfirst initiative was a survey of the secu-rity habits and opinions of the Frenchpeople. The French media and publicproved to be very interested in theresults of the survey – results that arenow well integrated into the differentcompanies’ sales and product develop-ment activities.

In Belgium Litto developed the firstBelgian infraction-tested cylinder lock-sets with security certification. The i3label resembles the French a2p and theDutch skg classifications and will defi-nitely promote the trend towards higher security.

The gradual penetration of commonEuropean (cen) Standards for exitdevices will add positive and welcomerecognition to jpm’s and Vachette’sstrong product portfolios.

New products and initiativesAll product launches during 2000added value, function and security toexisting ranges. Laperche and Littojointly developed a range of multipointlocks for the Benelux market whichhave achieved good volumes in a shorttime. Vachette extended its vip techno-logy to cover larger masterkey systems.fsb added a new product line to itsfast-growing range of high-securitymetal doors. Sales are developing verystrongly and new production capacityis being added.

Good high-end performancein a more polarized market

France and Belgium:


The year saw a very strong increase incross-sales among the French companies,but even more so between France andsister companies around the world.jpm confirmed its leadership in exitdevices, and through Group companiesopened up new markets in Australia,Israel, Finland, Denmark, Poland andSpain and strengthened its position in the uk, Sweden and Belgium.Stremler’s locks for glass and aluminum-framed doors are unique in the Group;the company initiated export sales viasister companies in Germany andChina.

Vachette found a valuable partnerin the fast-developing Chinese market:

a local security door manufacturer thatnow includes the company’s multi-point locks in its top-of-the-rangedoors. Vachette has also opened up significant markets in Spain, Romaniaand Belgium via the assa abloy net-work.

The integration of fsb’s affiliates inSpain and Belgium into their respectivecountry organizations is proceedingwell, creating good bases for develop-ment of the company’s high-securityproducts.

GROUP VICE PRESIDENT ASSA ABLOY: BO DANKIS

FRANCE

ASSA ABLOY S.A. FranceParent company for ASSA ABLOY’s operations in France. President: Bo Dankis

Bezault S.A.Manufactures and sells door and window fittings.President: Michel Brassié

Fichet Serrurerie BâtimentManufactures and sells high-security cylinders, high-security locks and security doors. President: Frédéric Chanel

JPM S.A.Manufactures and sells locks, cylinders, panic bars and escape fittings.President: Jouni Pitko

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

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

Vachette S.A.Manufactures and sells a comprehensive range of products including locks, multipoint locks, high-security cylinders, panic bars and escape fittings. President: Bo Dankis

BELGIUM

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

SEK M 2000 1999 1998 1997 1996

Sales 1,781 1,576 1,504 844 –

Average no.of employees 2,369 2,084 1,989 1,180 –





locks, 2%


Trends

France and Belgium:Sales by companies in the Frenchand Belgian organization in 2000amounted to SEK 1,781 M (1,576).Organic growth for comparable unitswas 3 percent.Export sales to Groupcompanies amounted to SEK 19 Mand exports outside the Group totaled SEK 254 M.

SNCF, the French national railway organization, is renowned for its high technical standards. Thousandsof doors at its stations, offices and workshops use locks from ASSA ABLOY’s French companies, includingelectromechanical fittings from Laperche/ICB, masterkeyed cylinders from Vachette and Laperche andmortise and rim locks from JPM and Vachette.


assa abloy’s operations in Germanyand the Netherlands comprise theeffeff group acquired in February2000, the established ikon group, LipsLocks Netherlands b.v. acquired aspart of Yale Intruder Security inAugust 2000, and a number of salescompanies.

The effeff group concentrates onthe fast-growing electromechanicalsegment. The main company is effeffGmbH & Co. KGaA in Germany, andthere are four other manufacturingunits: Trimec in Australia, hes in theusa, effeff China and effeff France. Allthese companies produce a variety ofelectric strikes, electromechanicallocks, escape door systems and stand-alone access control systems. The effeffgroup is the world’s leading supplier ofelectromechanical bolting products.

The ikon group has three manufac-turing units in Germany: ikon agproducing high-security cylinders andlocks, bab-ikon GmbH producingstandard lock cylinders, and WilhelmDörrenhaus GmbH producing lockcases. The German operation also includes the sales companies Dupérays.a. in Belgium, ikon Switzerland s.a.,assa-Ruko GmbH in Germany andeffeff France srl. These companies sell German products together with productsfrom other assa abloy companies inorder to create packages for individualcustomers and generate more organicgrowth.

In the Netherlands Lips Locks isthe leading company in a fragmentedmarket and the only local manufacturerwith a complete product range of mor-tise locks and cylinders for commercial,financial and residential markets. Thecompany’s strong installed productbase and close support from the Dutchsales company Ambouw b.v. put it in a

strong position to increase sales andinfluence market trends in theNetherlands.

Integration and rationalization The integration of effeff into assaabloy and the divestment according toplan of the effeff Alarm business(which was about half the company) toCaradon have been the main events inGermany. The integration processbegan in 1999 and is progressing well.To strengthen its electric strike productportfolio and market presence inAustralia, effeff bought both Trimec,Australia’s leading manufacturer ofelectromechanical bolting products,and the Padde sales organizationduring 2000. Another acquisition wasRofu, the leading supplier of electricstrikes in Switzerland, which will beintegrated into the German and Swissoperations. The Italian electric strikecompany Nuova f.e.b has been trans-ferred to assa abloy’s Italian opera-tion. The general restructuring of theeffeff Group is moving faster thanexpected.

Market and market trendsGermany is the biggest high-securitymarket in Europe, but is fragmentedamong many family-owned small andmedium-sized companies. assa abloyis playing an active role in bringingabout structural changes with the aimof attaining the leading position on theGerman market.

Development of the lock and hard-ware market is unbalanced because themarket in the old East Germany hasfallen while some West German areasstill have very high activity levels. Theprognosis for next year indicates anincrease in construction activities aftermany years of stagnation. Investments

in the public sector and also in privatehousing have been decreasing becauseof the financial situation, but commer-cial investments have remained stable.

assa abloy’s focus will continue tobe on product development and market-ing, supported by short and flexibledelivery times and good customer service. Demand for electronic andelectromechanical security products isincreasing faster than for mechanicalproducts. As the market leader forelectromechanical components in Germany, Europe and throughout theworld, assa abloy is well placed to up-grade all types of existing installation.

The ikon group achieved a strongerposition in the German market in 2000,increasing its market share in the cylinder and lock business. The salesunits also showed growth in sales ofboth German and other Group products.

Successful rationalization following major acquisitions

Germany and the Netherlands:


The trend towards higher securityCrime is increasing in the centralEuropean area, and with it the need toprotect real and intellectual property.In order to guide end-users towardshigher-security products that are alsosafer, the authorities in both Germanyand the Netherlands have introducednew and more stringent Standards.Especially in private and commercialapplications, the need to combine higher security with safety and con-venience features creates new possibili-ties for integrating electrical, electronic,electromechanical and mechanicalsecurity.

With their very large installed baseof locks and systems and a long tradition of developing new security products and solutions in cooperationwith architects, security specialists andauthorities, assa abloy’s German and

Dutch companies are in a unique position to influence future securitydevelopments.

New products and initiativesDuring 2000 the assa abloy companieshave launched electromechanical multi-point locks, high-security cylinders and new exit door systems to supportthe trend to higher security. A range ofnew electromechanical products andsystems for different market segmentsis currently under development.

GROUP VICE PRESIDENT ASSA ABLOY:EERO LESKINEN

GERMANY

ASSA-Ruko Sicherheitssysteme GmbHMarkets and sells the ASSA and Ruko lock ranges on the German market. President: Svend Mølgaard Petersen

BAB-IKON GmbH SchliesstechnikManufactures and sells small lock systems and standard lock products. President: Eero Leskinen

Dupéray S.A.Markets and sells a complete range of lock products and fittings on the Belgian market, mainly supplied by IKON and other ASSA ABLOY companies.President: Frans Quix

effeff Fritz Fuss GmbH & Co. *Manufactures and sells electronic and electromechanicalsecurity systems. Presidents: Eero Leskinen and Martin Brandt

- HES, Inc.Manufactures and sells electronic and electromechanical security systems. President: Michael Webb- effeff ChinaManufactures and sells electronic and electromechanical security systems. President: Martin Brandt- effeff FranceManufactures and sells electronic and electromechanical security systems. President: Jean-Claude Paris- Rofu **Swiss manufacturer of electric strikes and door magnets with sales in Switzerland and Germany.Presidents: Manuel Bucher and Beat Waldvogel

IKON AG PräzisionstechnikMainly manufactures and sells high-security cylinders and advanced lock systems.President: Gerhardt Ernst

Wilhelm Dörrenhaus GmbHManufactures and sells standard and special lockcases, mainly for wooden doors. President: Holger Ritz

THE NETHERLANDS

Ambouw B.V.Markets and sells locks and building hardware on theNetherlands market, mainly supplied by IKON and other ASSA ABLOY companies.President: Gert Lubbersen.

Lips Locks Netherlands B.V. ***Offers an extensive range of electromechanical, mechanicaland electronic products, including after-sales service andmaintenance. President: Jaap Wind

SWITZERLAND

IKON Switzerland S.A.Markets and sells IKON, BAB-IKON and ABLOY products on the Swiss market.President: Ugo Zanolari

SEK M 2000 1999 1998 1997 1996

Sales 1,162 621 583 533 501

Average no.of employees 1,238 774 771 697 717





locks, 43%


Trends

Germany and the Netherlands:Sales by companies in the German andDutch organization in 2000 amounted to SEK 1,162 M (621), representing organicgrowth of 7 percent. Export sales to Groupcompanies in other countries amounted toSEK 27 M and other exports totaled SEK 436 M.

Berlin’s Potsdamer Platz was the busiest traffic hub in Europe in the 1920s, and has regained a central placein the united city with the building of a new business, cultural and residential quarter. effeff has supplied lockcomponents for many of the new buildings, notably electric security strikes for fire-rated doors.

* Consolidated from February 1 2000

** Consolidated from January 1 2000

***Consolidated from August 25 2000


assa abloy uk, created in August2000 following the acquisition of YaleIntruder Security by the assa abloyGroup, now offers its customers anunequaled range of the best knownand best respected brands in the lockand security industry, including Yale,Chubb, Union, assa, abloy, Grorudand C E Marshall.

Products span the whole rangefrom high-quality standard locks toadvanced electromechanical lockingand access control systems. They aremarketed through diy outlets, builders’merchants, architectural ironmongers,locksmiths, distributors, technical centers and specialized security systemdealers, and also sold direct to oemcustomers. End-user applications rangefrom private housing through schools,universities, hospitals and governmentbuildings to secure industrial and mili-tary establishments.

The Yale acquisition has quadrupledthe size of assa abloy’s uk operationand given it manufacturing capabilityfor the first time. Yale SecurityProducts uk Ltd manufactures andmarkets security products for the resi-dential and commercial sectors underthe Yale, Union and Chubb brands.The range includes mortise locks, rimlocks, masterkey systems and pad-locks. Yale is the brand leader in secu-rity and hardware products for theresidential market, and also supplieslocks to oem businesses, for examplefor bt’s payphones. Union is the leaderin sales through architectural iron-mongers to architects, security specifiers,contractors and local authorities.Chubb is the leading name in high-security products for architects, securityspecifiers, locksmiths and consumers. C E Marshall manufactures columnlocks, door handles and latches for the

automotive industry and is a majorsupplier to Ford’s uk and Europeanplants.

There is almost no direct productoverlap between the Yale companiesand assa abloy’s established uk salesbusinesses Abloy Security Ltd, assa Ltdand Grorud Industries, which marketlocks and door and window fittingsfrom the Group’s factories inScandinavia and Finland.

Market trendsContinued economic development andgrowing per capita income in the uk,coupled with a high perceived rate ofcrime, are reflected in customers’ risingdemand for quality security locks andother security products that will providepeace of mind.

The trend for repair, maintenanceand improvement on private housing isexpected to increase steadily for thenext three to six years. Private housingexpenditure rose from gbp 8.1 billionin 1995 to gbp 9.9 billion in 1999, anincrease of 22 percent. Continuation ofthis trend will be reflected in continuedincreases in diy sales, which have beengrowing steadily.

The trend towards higher securityCustomers’ demands are not just forhigher levels of security but for conve-nience and esthetics too. User require-ments are continually assessed throughcustomer work groups and developedinto improved or new products.

In future, consumers will benefitfrom new products being brought tomarket quicker through the sharing ofengineering knowledge and designsfrom sister companies in the assaabloy Group. International marketingand engineering staff work together to

develop new high-end, user-friendlyproducts while avoiding duplication ofprojects and investments. Recentinvestments in product developmenthave substantially increased the flowof new higher-security products, andthis trend will continue to accelerate asconsumers accept the latest cenStandards as a basis for replacement ofolder products.

New products and initiatives The acquisition of Timelox by theGroup has enabled assa Ltd to extendits access control range. Timelox cardreaders complement existing solidproducts, increasing the variety andcomplexity of requirements that cannow be met.

Grorud Industries has upgradedthe Asgard range of multipoint locks.These locks now meet the require-ments of the pvc replacement doormarket and also open up a market fornew timber doors, allowing the Groupto gain a stronger position in thepublic and private residential sectors.

Yale Security Products uk Ltd isintroducing several new product rangescomplying with cen Standards, includ-ing high-security mortise locks, a newrange of door closers, new escapehardware products and higher-ratedpadlock designs.

C E Marshall has invested in develop-ment of high-technology magnesiumdiecasting. Due to its light weight, useof magnesium in vehicles is forecast toincrease dramatically in the next fewyears. The company will be providingproducts for the new Ford Mondeoand the new ‘baby’ Jaguar.

The uk operation’s focused marketapproach, designed to recognize theindividual needs of each market whileaccelerating the development of new

A market-leading position resulting from the Yale merger

United Kingdom:


higher-security products, will be contin-ued and expanded. In both mechanicaland electromechanical access controlareas, this will allow the company tomeet demands for higher security and

convenience and lead the trend to highsecurity while maximizing internalresources and capital investments.

GROUP VICE PRESIDENT ASSA ABLOY: GEOFF NORCOTT

Abloy Security Ltd.Primarily markets ABLOY electromechanical locks,padlocks and industrial locks.Managing Director: Robin Rice

ASSA Ltd.Markets a complete range of ASSA, Ruko and SOLIDlock products.Managing Director: Duncan Horton

C E Marshall (Wolverhampton) Ltd. *Manufactures and supplies high-security locks anddoor handles as original equipment items to the automotive industry.Managing Director: Raymond Dovey

Chubb Locks Custodial Services Limited *Provides custodial locking products and systems tocorrectional facilities worldwide.Managing Director: Steve Wood

Grorud Industries Ltd.Manufactures and markets door and window fittings.Managing Director: Bjørn Mønster

Yale Security Products UK Ltd. *Manufactures and markets a complete range of doorlocks, padlocks and architectural hardware under theYale, Chubb and Union brands. Managing Director: Michael Rayner

SEK M 2000 1999 1998 1997 1996

Sales 665 270 266 236 168

Average no.of employees 704 128 132 147 131





locks, 9%


Trends

United Kingdom:Sales by companies in the UK organi-zation in 2000 amounted to SEK 665 M(270). Export to Group companies inother countries amounted to SEK 10 M,and other exports totaled SEK 53 M.

Oxford Brookes University has a refurbishment program running over a number of years. Yale Security Products UK was selected to supply Pro-key patented masterkey systems, stand-alone electromechanical door security systems, door furniture and door closers.

* Consolidated from August 25 2000


SPAIN AND PORTUGAL

Continued growth led byhotel, telecommunicationsand trade sectorsassa abloy Ibérica is the holding com-pany for the Group’s operations inSpain and Portugal. azbe b. zubia s.a.is a major Spanish manufacturer oflocks, high-security cylinders, multi-point locks, rim locks and electro-mechanical cylinders. VingCard Sys-tems España s.a., established to servethe hotel and resort market, suppliesthe complete range of VingCard hotellocks. A dedicated sales force sells theabloy electromechanical product rangeto the telecommunications and indust-rial sectors.

Market and market trendsThe Group companies in Spain andPortugal are currently achieving over20 percent growth year on year andthis trend is expected to continue into2001. VingCard hotel and resort accesssystems and Abloy industrial andelectromechanical locks for high-securityapplications were notably successful.The trade sector provided azbe withcontinued strong expansion through itstraditional distribution channels.

Helped by eu investment in thenation’s infrastructure, total growth ofthe Spanish lock market has exceeded10 percent a year for several years.Sales are mainly driven by new construction. Although the Spanishbuilding market may be weakeningslightly, growth is expected to continue,aided by new products, the develop-ment of new distribution channels in ahighly fragmented market, and newopportunities in the oem door segment.

The demand for higher security inSpain continues to increase, specifically

in the electromechanical and industriallock markets where assa abloy Ibéricaplans to introduce more new products.

New products and initiativesProducts introduced in 2000 includednew ranges of anti-panic exit productsand high-security cylinders. In the hotelsector, new product synergies betweenazbe and VingCard Systems allowedcomplete product ranges to be offered.

Planned acquisition of Tesaassa abloy had planned to acquire theSpanish company Tesa as part of theYale Intruder Security acquisition inAugust. Tesa is the clear market leaderin the Spanish lock industry withmanufacturing operations in Spain andMexico and strong export markets inFrance and Russia.

However, the acquisition of Tesahas been delayed by a request from theus Federal Trade Commission. Tesacurrently manufactures some impor-tant components for the hotel-lockcompany Tesa Entry Systems which isto be retained by Chubb plc, and timemust be allowed to find an alternativesupplier. Chubb plc and assa abloyexpect this process to be completedduring the summer of 2001, when anew submission to the ftc will bemade. assa abloy Ibérica’s positionshould be significantly enhanced by theacquisition of Tesa in 2001.

ITALY

Encouraging opportunities ina new market for the GroupRecent acquisitions have given assaabloy a significant presence in Italy forthe first time. Operations now include

Yale Security Products s.p.a. in Aprilia,Yale Corni Sistemi di Sicurezza s.p.a. inModena and Nuova f.e.b. s.r.l. (for-merly a subsidiary of effeff) in Bologna.

Together the companies offer com-plete ranges of mortise locks, padlocks,cylinders, panic exit devices, multi-point locks and electromechanical products. The Yale and Yale Cornibrands serve the residential and commer-cial markets, while Nuova f.e.b. supp-lies electric strikes and multipoint lock-ing, mainly for the commercial sector.

Market and market trends2000 saw 5 percent growth for theYale companies and an increase of 7percent for Nuova f.e.b. The recoveryin demand seen in all market sectors in2000 is expected to continue into2001, sustained by economic growthand higher security Standards. Newlaws in Italy have created the require-ment for certified products, thus raising awareness of higher-securityproducts and generating demand forthem.

The Italian lock industry remainshighly fragmented with many smalllocal manufacturers. Distribution issimilarly fragmented among a largenumber of local locksmiths and hard-ware stores. The lock industry is currently going through a rationaliza-tion process which will reinforce thetrend towards higher security and inte-gration between mechanical and electro-mechanical products, benefiting boththe industry and its customers.

Around 60 percent of sales for theYale companies are generated fromexport markets, particularly theMiddle East and Central America.Continued growth in both areas isexpected, assisted by increased oilrevenues in the Middle East and deve-

Encouraging prospects in two fast-growing markets

Spain, Portugal and Italy:


lopment of local industrial infrastruc-ture and tourism in Central America.

80 percent of Nuova f.e.b.’s busi-ness comes from the commercial sectorin Italy, i.e. non-residential buildingssuch as offices, schools, factories,banks, hospitals and supermarkets.The rest comes from exports to easternEurope and Mediterranean countries.

The distinct yet complementarypositions of Yale and Nuova f.e.b.provide the Group with a strong pre-sence and new opportunities on thedomestic Italian market. Further gainson export markets are expected as aresult of the companies’ strong distri-bution channels and the extension ofproduct ranges with products fromselected sister companies.

New products and initiativesNew product launches in 2000 focusedon high-end products including panicexit devices and electronic bolt locks.New fire-door locks for the commercialsector and new padlocks and rim locksfor the residential market were alsointroduced.

GROUP VICE PRESIDENT ASSA ABLOY: BO DANKIS

SPAIN

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

AZBE B. ZUBIA, S.A.Manufactures and markets a complete portfolio, throughfour Business Units. President: Jorge García Martínez

Aretxa Business Unit: offers a comprehensive range of products, including locks, cylinders, multipoint locks, high-security cylinders, rim locks, door closers and exit devices

Abloy Business Unit: electromechanical and industrial locks

Fichet Business Unit: high-security locks and cylinders and security locks

VingCard Business Unit: hotel locks

ITALY

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

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

Yale Security Products S.p.A. **Cylinders, mechanical and electric rim/mortise locks,cabinet locks, safes and padlocks, sold in both Italianand international markets.Managing Director: Roberto Renzi

SEK M 2000 1999 1998 1997 1996

Sales 396 44 – – –

Average no.of employees 351 82 – – –





locks, 10%

Hotel locks, 17%


Trends

Spain and Portugal:Sales by companies in the Spanish and Portuguese organization in 2000amounted to SEK 157 M (44).

Italy:Sales by companies in Italy in 2000amounted to SEK 239 M.

For the emergency exits of 140 of its branches all over Italy, Banco di Napoli chose panic exit devicesmanufactured by Yale Corni. This branch is in the Parioli quarter of Rome, one of the most exclusive residential areas of the Italian capital.

* Consolidated from February 1 2000** Consolidated from August 25 2000


The North American operation conti-nued to develop positively in a some-what softer market environment. Aspart of assa abloy’s acquisition ofYale Intruder Security, eight operatingunits were added with strong productportfolios and some of the market’sbest-known brand names such as Yale,Corbin Russwin, Norton, Rixson andFolger Adam.

Today the North American Groupconsists of 24 operating units in theusa, Canada and Mexico with proforma sales for 2000 in excess of usd800 m and around 5,000 employees.The us units are Abloy Security,Arrow, assa, Corbin Russwin, Curries,Emtek, essex, Folger Adam, Graham,McKinney, Medeco, nel Corporation,Norton, Sargent, Securitron, YaleCommercial, Yale Residential and YaleSecurity usa. In Canada four mainunits represent all Group companies –assa abloy Canada, Abloy Canada,Medeco Canada and Yale CorbinCanada. In Mexico, Scovill became afully owned Group subsidiary in July.

The Yale Intruder Security acquisi-tion has strengthened the group consi-derably. Yale Residential has addedstrength on the residential side, rein-forcing the very strong progress achievedby Emtek’s latest more decorative lineof high-end locks and hardware. Yale’sname and reputation also addedstrength on the commercial and oemmarkets. In the institutional segment,Corbin Russwin, with one of the usa’sprime complete lines of lock and doorhardware, has expanded the marketcoverage previously achieved by Sargent.

With the acquired companiesNorton and Rixson complementingSargent’s strong door-closer range, theassa abloy Group now has a marketleading position in door closers and

door control in North America. Theacquisition of Folger Adam has alsogiven the Group a leading position inthe high-security detention market aswell as the leading brand for electricstrikes.

Some highlights of the yearThe move of assa Inc’s high-securitycylinder operation from Brooklyn toNew Haven was successful and resultedin significant improvement in perfor-mance. Combined with a more proactivemarket approach, it generated aconsiderable strengthening in salesduring the second half of the year.

Abloy Security was negativelyaffected by the drop in the payphonebusiness, but succeeded in replacingthis volume in other industrial lockingand oem segments, such as transportapplications and military applicationsfor padlocks.

The Arrow Lock operation inBrooklyn, New York has developedaccording to plan. Restructuring is wellunder way and the operation has takensignificant steps towards modernmanufacturing methodologies andimproved production flows.

Emtek Products showed very strongorganic growth in excess of 50 percentfor the year. The company successfullyimplemented a complete new conceptfor providing homeowners and builderswith high-end innovative decorativelocks and hardware. In less than fivedays from order Emtek can deliver anycombination of its products anywherein the country, without keeping anyfinished goods in the factory or at distri-butors and dealers. A constant expansionof the product range and an extremelyshort development cycle accomplishedthrough a network of partnerships willensure continued strong growth.

Medeco, the market leader in high-security cylinder and locking products,showed a considerable improvement onthe door security and industrial oemsides of the business, with substantialincreases in both sales volume and operating income. However, performancewas slightly hampered by the lack ofmajor orders on the ‘route manage-ment’ side – the electronic recordingand optimizing of service visits to ven-ding/coin-collection machines. This isexpected to pick up significantly nextyear as a result of initiatives startedduring 2000 and new product launchesplanned for 2001.

Curries, a major manufacturer ofhollow metal doors and frames, hassuccessfully continued to focus on efficiency and expanding its range of products and services. The company’s

Positive development further strengthened by the Yale acquisition

North America:

GROUP VICE PRESIDENT ASSA ABLOY: CLAS THELIN

USA

ASSA ABLOY North America Inc.Parent company for ASSA ABLOY’s operations in the United States.President: Clas Thelin

Abloy Security Inc.Active in the market for industrial locks.President: Scot T Hooper

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

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

Curries CompanyManufactures hollow metal doors and frames.President: Jerry N Currie

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

ESSEX Industries, Inc.Joint sales operation for Curries, Graham, McKinney, Sargent and Securitron.Vice President, Sales and Marketing: Joseph J Hynds, Jr

Graham Manufacturing CorporationManufacturer of architectural flush wood doors.President: Jerry N Currie

McKinney Products CompanyManufactures a broad, complete line of hinges.President: Thanasis Molokotos

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

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

Sargent Manufacturing CompanyManufacturer of a complete line of locks and door hardware with a wide range of cylindrical locks, mortiselocks, exit devices, door closers, electromechanical products and cylinder systems.President: Thanasis Molokotos

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


state-of-the-art manufacturing facilitieswere further enhanced, and a fullyautomatic roll-forming line for framesstarted production during the year,positioning the company well for thefuture.

Increased efficiency was also one ofthe main focuses for Graham’s manu-facturing of architectural wood doors.The fine tuning of the erp (EnterpriseResource Planning) system introducedin 1999 took slightly longer thanexpected but was completed during theyear and, coupled with investments inmachinery, has resulted in improvedefficiency and a more flexible workflow.

McKinney’s manufacture of archi-tectural-grade hinges in Scranton also

made substantial progress, and the earlier implementation of the profitcenter organization started to show apositive impact on performance.McKinney is currently in the middle ofa major capital expenditure programfocused on both efficiency and newproducts, which is expected to have asignificant impact on the company’sgrowth over the next couple of years.

Sargent in New Haven, Connecticutcontinued its strong development andachieved substantial and stable growthduring the year. Workflows and orga-nizational structures were further refined with the powerful ‘continuousimprovement’ approach. Togetherwith the utilization of additional

North America:Total sales for the North AmericanGroup in 2000 were SEK 5,335 M(3,721). The organic growth for com-parable units was 5 percent. Exportsales to Group companies amountedto SEK 36 M and exports outside theGroup totaled SEK 314 M.

The year 2000 saw a continuation of the trend towards higher security, particularly in the US govern-ment sector. After extensive research by security consultants, the Office of the United States Senateselected Medeco Security Locks as the sole source for providing locksets and cylinders to replace itsexisting conventional key system in the nation’s capital.


capital improvements, this resulted ineven stronger performance, and thecompany is now used as a role modelworldwide to exemplify the step-by-step improvement process in theGroup.

In line with the rest of the electronicaccess control industry, Securitronpicked up pace after a soft period inthe middle of the year. The companyshows strong double-digit growth forthe full year, with continued improvedoperational performance.

In Canada the units continued toshow substantial growth, although thepace was somewhat slower than lastyear. Additional emphasis was put oncoordination of efforts under a commoncountry management. The productrange was further expanded with theaddition of electromechanical productsfrom Securitron and hes.

In Mexico the acquisition of theremaining 51 percent of Scovill Lockswas completed according to planduring the year. With a continuedstrong and stable home market as abase, the company has shown steadydouble-digit growth and maintainedgood profitability. After a successfuland uneventful presidential election inthe country, indications are now thatthe growth pattern will continue andmaybe even strengthen further.

Market and market trendsEven though market growth has beensomewhat lower than during the pre-vious year the activity level is still veryhigh. At this stage no general contractionhas been experienced, but rather flatten-ing out at a very high level. Somewhatlower activity is expected during thecoming year but there are no indicationsthat the important institutional sector of the market will show any softening.The educational market in particular isexpected to continue to show stronggrowth, while the com-mercial segmentwill probably show a moderate decline.

Strong growth was exhibited thisyear in some particular areas of themarket, notably electromechanicalproducts such as magnetic locks, electric strikes and electromechanicalkeypad locks. In addition Sargent’saftermarket business grew substantiallyand shows great future promise.Another area displaying substantialgrowth is the expanded range of alu-minum door closers sourced fromAbloy in Finland. The inroads into theresidential market were also successfuland Emtek’s growth exceeded 50 percent.

The trend towards higher securityFollowing incidents at schools andworkplaces, a number of initiatives

were taken to support the under-lying trend towards higher security.Partnerships have been established inorder to address the issues on a broaderbasis. The ‘Building Security’ initiativetaken by essex Sales and Marketingfocuses on the security and safetyneeds of buildings over their whole life.Increased coordination between theGroup’s high-security companies wasalso initiated in both the usa andCanada. The ambition is to expand themarket and increase security awarenessin general and show how products andservices provided by the different assaabloy companies can satisfy this need.

Other initiatives to address theseissues were taken with local law enforcement authorities, with insurancecompanies both centrally and locally,and with non-profit organizations suchas the National Crime PreventionCouncil.

New products and initiativesThe essex Sales and Marketing organi-zation, which represents Curries,Graham, McKinney, Sargent, Securi-tron and hes on the construction market, was further strengthenedduring the year. Additional resourceswere added, primarily on the specifica-tion writing side, and new specificationwriting tools were developed. The


Yale Security Group *Joint administration, sales, marketing and distributioncenter operations for Yale Commercial Locks andHardware, Corbin Russwin Architectural Hardware,Norton Door Controls, Rixson Specialty Door Controlsand Folger Adam Electric Door Controls. President: Clas Thelin

- Yale Commercial Locks and HardwareManufacturer of a comprehensive line of door hard-ware and locks, including an extensive range of mortise and cylindrical locks, exit devices, door closers, electromechanical products and cylindrical systems.General Manager: Dick Krajewski

- Corbin Russwin Architectural HardwareManufacturer of a comprehensive line of door hard-ware and locks, including an extensive range of mortise and cylindrical locks, exit devices, door closers, electromechanical products and cylindrical systems.General Manager: Dan Daino

- Norton Door ControlsManufacturer of a broad line of light commercial and architectural door controls.General Manager: Douglas Millikan

- Rixson Specialty Door ControlsManufacturer of concealed closers and pivots.General Manager: Eric Tannhauser

- Folger Adam Electric Door Controls Manufacturer of electric strikes and supplier of security locking magnets, power supplies and doorcontrols.General Manager: Eric Tannhauser

Folger Adam Security Inc. *Supplier of locks and hardware to the highest-securitymarkets, such as detention and correctional facilities.President: Bruce Lucier

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

CANADA

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

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

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

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

MEXICO

Scovill Locks, S.A. de C.V. **Market leader in Mexico in cylindrical and tubular locks.President: Roberto Lebrija Castilla

SEK M 2000 1999 1998 1997 1996

Sales 5,335 3,721 2,916 2,402 1,872

Average no.of employees 4,216 3,305 2,715 2,406 2,450





locks, 9%


Trends

Openings Source – an Internet-basedtool for product selection and specifica-tion – was enhanced through addedfunctionality. A function for centralsupport of these efforts and develop-ment of the architectural promotionalprogram was also added, with a strongemphasis on the institutional market.

Focused implementation and follow-up of a number of well defined growthprojects and cross-selling opportunitieshave been helpful tools in the continuedgrowth of the Group. Initiatives includeexpansion of the essex offeringsthrough magnetic locks from Securitronand electric strikes from hes; continuedpenetration of hinges from McKinneyinto the Canadian market; sourcing oftubular locks for the us market fromScovill in Mexico; further developmentof National Accounts; and increasedfocus on oem customers.

A number of e-commerce initiativeshave materialized during the year, focus-ing primarily on Business-to-Businesssales. The main areas addressed relateto access to updated information andefficiency tools for the assa abloy com-panies, their trading partners andothers who influence the market such asarchitects, specifiers etc. Benchmarking

and development of best practices arealso used in this area, together with amore structured approach aimed atcoordinating the development of anoverall e-commerce strategy.

The rapid development of newproducts over the last couple of years,especially at Sargent, Emtek andSecuritron, is starting to pay off, as canbe seen in the organic growth of thesecompanies. Emtek is constantlyexpanding its product portfolio withnew designs and complementary products, and the response from themarket has been instant and very positive.

The overall focus of product development this year was on enhance-ments and improvements, but somemajor launches are planned for 2001.These include a completely new state-of-the-art cylindrical lock to be launched at the start of the year. Theunique design of this lock will adddurability, features and functionality toSargent’s established cylindrical lockline.

The new Cook County Hospital in Chicago is the largest new construction endeavor in the last 100years in this major metropolitan marketplace. The new 1.2 million square foot facility will be anchored by Curries hollow metal doors and frames and Sargent hardware throughout its mammoth structure,totaling over 5,000 openings in all.

* Consolidated from August 25 2000** Consolidated from July 1 2000


Lockwood Security Products PtyLimited conducts most of assa abloy’sbusiness in Australia and NewZealand. The company, which was a50/50 joint venture with Australianmanufacturer Email Limited through-out 2000, became a fully owned assaabloy Group company on January 312001 when assa abloy acquired theoutstanding shares.

Under the arrangement Lockwoodis already fully integrated into the assaabloy management structure, takingfull benefit of relationships with otherGroup companies. During its first fullyear in the Group, Lockwood hasrationalized its operations to focus onparticular products and market segments. Abloy Security covers theindustrial locking market, LockwoodResidential Products manufactures inBrisbane, and Lockwood CommercialProducts manufactures in Melbourne.Lockwood Arrow Ltd. manufacturesdoor closers and markets Australian-made products in New Zealand.

In March 2000, assa abloy acquiredTrimec Technology Pty Ltd of Sydney,strengthening its position in the import-ant electromechanical market. Trimecdesigns and manufactures innovativeelectric strikes for international markets.

Market and market trendsThe Australian market for construc-tion hardware experienced a turbulentyear following the imposition of aGoods and Services Tax (gst) of 10percent on July 1. In the residential sec-tor, as predicted last year, this createdpull-ahead demand in the first half anda severe downturn in the second half.The commercial market trended downall year, but the second half was accen-tuated by the effect of the gst. In theindustrial market Abloy achieved

growth of 8 percent despite the gene-rally flat trading conditions, helped bynew products and improved responsetimes.

While New Zealand was not subjected to any taxation changes itshowed some general softening in thesecond half. In major export marketsthere was some offsetting strengthen-ing, particularly in Asia, which pre-sents good future opportunities.

Profitability has continued to grow despite the marketconditions.Overall, the year gave Lockwood theopportunity to develop a superiorrange of products which not onlyenabled it to maintain sales at highermargins, substantially minimizing theimpact of the gst on the Australianbusinesses, but has strengthened marketposition for the next general upturnexpected in 2002.

The trend towards higher securityThe refocusing of strategy, initiated in1999, from productivity-related invest-ment to product-related investment,has shown impressive results in 2000and re-established Lockwood as theindustry leader. Lockwood is synonym-ous with high-quality door and windowhardware in the region, with a 65 per-cent unaided brand recall in Australia,52 percent ahead of the second mostrecognized brand, Yale. Together withthe ongoing support given to commu-nity, institutional, government andsemi-government bodies, this positionwill increasingly be used to influencethe regulation, standardization andgeneral professionalism of the industry,which by European standards remainsat a low level. The establishment of

Standards in Australia, New Zealandand Asia is supported by Group inputon European and us Standards.

The launch of the Lockwood Twinsecurity keying system, developed inconjunction with Assa (Sweden), wasused as a platform to redevelop thecompany’s alliance with the locksmith-ing industry. Product launches andindustry conferences allowed concur-rent promotion of the concepts of ‘ThePositive Spiral’ and ‘Leading the Trendtowards Higher Security’, which werereceived enthusiastically by manyinfluential industry participants. ALockwood Security Council was formed as a forum for direct and regular contact between the majorlocksmiths and the company.

New products and initiativesIn the commercial market, as well as the Lockwood Twin, Lockwoodlaunched the 9000-series panic exitsmanufactured by jpm (France), a rangeof cylinders from Medeco (usa), and a

Product-related investment restores market leadership

Australia and New Zealand:


complete new range of padlocks, inclu-ding Maximum Security Padlocks,from Abloy (Finland). The launch ofthe padlock range was coordinatedwith the introduction of planogramming(a food-retailing merchandizing tool)to diy customers. This tool will be ofmutual benefit, optimizing the use ofshelf space to maximize sales.

A new electromechanical productpackage for the regional market includesa cardkey system jointly developed byTimelox (Sweden) and Lockwood, andlocally made Trimec electric strikes.

On the residential side the mostsignificant launch was a new range oflocks and handles for patio slidingdoors, which replaced a 30-year-olddesign and significantly upgraded bothsecurity and style. The new LockwoodTwin system can be used to masterkeythis product for light commercial andhotel applications. Another develop-ment is an innovative privacy adaptor

for internal lever furniture. This is typi-cally used in nursing home applicationswhere some privacy is required butemergency access (via a clutch over-ride) must be possible. A new SecurityCombination Residential Front DoorSuite combines the safety and securityfeatures of the innovative 001 Rimlockwith the style of Lockwood’s Daintreefurniture.

The speed of local product develop-ment and the introduction and integra-tion of Group products have made anexciting impact on the market and provide a base for significant futuregrowth.

GROUP VICE PRESIDENT ASSA ABLOY: GEOFF NORCOTT

AUSTRALIA

Lockwood Security Products Pty LimitedManufactures and markets lock products such as door and window hardware, mortise locks, rim locks and door closers for the Australian residential and commercial markets. President: Geoff Norcott.

Abloy Security Pty Ltd.Markets and sells the full range of ABLOY products.Managing Director: Joe Lahoud.

Trimec Technology Pty Ltd. *Manufactures electric strikes and related products for Australian and international markets.Managing Director: Roy Bowyer.

NEW ZEALAND

Lockwood Arrow Ltd.Manufactures door closers and markets Lockwood products on the New Zealand market.Manager: Bruce Pollard.

SEK M 2000 1999 1998 1997 1996

Sales 754 590 – – –

Average no.of employees 1,003 1,111 – – –





locks, 6%


Trends

Australia and New Zealand:Sales by companies in the Australianorganization in 2000 amounted to SEK

754 M (590). Organic growth for compa-rable units was 0 percent. Export salesto Group companies in other countriesamounted to SEK 4 M and other exportstotaled SEK 18 M.

The Sydney Showground, the baseball venue at the 2000 Olympic Games, covers 30 hectares in theheart of Sydney Olympic Park. Door hardware from Lockwood is installed on approximately 2,500 doorsand includes Synergy mortise locks, Artefact door furniture and a complete range of door closers.

* Consolidated from July 1 2000


CENTRAL AND EASTERN EUROPEIn the Baltic countries Abloy is repre-sented by the subsidiary Abloy OyEesti Filiaal in Estonia and representativeoffices in Latvia and Lithuania. Assa’sEstonian subsidiary ASSABalt asmarkets the products of the Group’sSwedish companies in all three Balticcountries.

In 2000 the market began to recoverfrom the effects of the Russian crises.Organic growth was particularly goodin Latvia and Lithuania. assa abloykept its market leadership, aided by animproved distribution network, but themarket still has great potential for2001 and beyond. Both Abloy andAssa launched new products to meetgrowing demands for high security.

Notable projects included the sasRadisson Hotel in Tallinn, Estonia andthe head office of the Latvian MobileTelephone company in Riga, Latvia.

In the Czech Republic andSlovakia, assa abloy’s organizationconsists of fab a.s., fab Projekt s.r.o. and fab Slovakia s.r.o. fabis the Czech Republic’s largest lockcompany, manufacturing and marketingconstruction locks, industrial locks,padlocks, cable locks and car locks.fab Projekt is a sales company formedduring 2000 to penetrate the high-endspecification market for projects suchas international business complexesand shopping centers. fab Slovakiamanufactures lock cases and marketsother fab products in Slovakia.

After a long recession there weresigns of slow recovery and increasedconstruction activity. Sales were gen-erally stronger, especially in the secondhalf, but revenues from car locks fellafter a model change at Skoda.Demand for more sophisticated and

higher-security products is growing,and the diy business is developing fastwith the major European retail chainsinvesting in the market. fab launcheda new high-security cylinder on theCzech and Slovak markets in 2000 andis the only company offering a Czechpatented key.

In Hungary, a new sales company,assa abloy Hungary Kft, started operation in mid-year. The country’seconomic development has been verypositive in recent years and the Group’saim is to secure penetration of a growing market for a wider and moresophisticated range of products.

In Poland the Group’s sales arehandled by assa abloy Poland Sp. z o.o.As the largest and fastest-growing mar-ket lined up for eu membership,Poland is attracting much internationalattention. The major European retailchains are investing heavily in the diysector and the number of outlets isincreasing very rapidly.

Strong market development in2000 is expected to continue next year,although the extremely high new-construction activity may level out.

The Polish sales organization washeavily reinforced and all business seg-ments grew, particularly the industrialsegments. The new Warsaw StockExchange was a notable project. Aware-ness of sophisticated high-security products is increasing, and launchesduring 2000 included multipoint locksand panic exit devices.

In Romania the Group is representedby assa abloy Romania S.r.l., whichmarkets high-security products fromGroup companies including Assa andVingCard, and by the largest local lockmanufacturer Urbis Security S.r.l.

Despite a weak economy and adifficult market, assa abloy Romania

achieved good organic growth. Theproduct range was extended and thesales organization developed. Sales ofVingCard’s hotel products grew.

Urbis, which holds a leading shareof the Romanian lock market, main-tained domestic sales at 1999 levelsand established two new distributioncenters to improve efficiency and service. Production technology was up-graded by major investment in a newsurface treatment facility and by therelocation of manufacturing machineryfrom Grorud in Norway. This allowedUrbis to make a successful start to pro-duction of door hardware for theGroup’s Scandinavian companies.

ISRAELIn January 2000, assa abloy acquiredMul-T-Lock Ltd, Israel’s leading lockcompany and a world leader in thedevelopment, manufacture and distri-bution of high-security cylinders, padlocks, multipoint locks, keys, keyblanks and digital safes. With subsidi-aries in the usa, Canada, the uk andFrance and distributors in 70 countries,Mul-T-Lock’s growth is driven mainlyby exports, which account for 70 per-cent of sales. The subsidiary Mul-T-Lock Machinery Ltd manufactureskey-cutting machines and assemblymachinery for the lock industry.

In Israel, the recession continuedfor a fourth year. The company namewas changed to Mul-T-Lock (inHebrew), with advertising and pr cam-paigns to strengthen the new name.Contacts with the Israeli LocksmithAssociation and with manufacturers ofsteel doors were strengthened, andcomplementary products from Groupcompanies such as jpm in France wereintroduced.

Expanded worldwide opportunitiesthrough acquisitions and growth

New Markets:


The most important export marketsare North America, Europe and Asia.New products were launched by allfour subsidiaries to meet the specificneeds of regional markets. The 700lock, a multipoint rim lock for entrancedoors designed for the French market,also sold well elsewhere. Mul-T-Lock(uk) developed the Elite single-doorelectromechanical access control device,which was sold during 2000 in the ukonly. The dealer network in new terri-tories was expanded and new brancheswere opened. A major initiative to

penetrate the Japanese market was spearheaded by twelve new high-securitycylinders developed to meet JapaneseStandards.

A gradual transition to higher-security and patent-protected productswas backed by continuous r&d activityto expand and upgrade the productrange. A new production line to manu-facture personalized key-blanks wasinstalled, and hundreds of thousands ofthese attractive metal blanks and keyswith customer details coined on themwere sold in 2000.

THE BALTIC COUNTRIES

ASSABalt AS

Markets and sells ASSA products in the Baltic countries. President: Tarmo Talvet

Abloy Oy Eesti Filiaal

Markets and sells ABLOY products in the Baltic countries. Manager: Ahti Ovaskainen

CZECH REPUBLIC

FAB a.s.Manufactures and markets construction locks, industrial locks, padlocks, cable locks and car locks. President: Vladimir Bayer

FAB Slovakia s.r.o.Manufactures lock cases; markets and sells other FAB products. President: Jaroslav Holzer

FAB Projekt s.r.o.Sales company formed during 2000 to penetrate thehigh-end specification market for projects.President: Martin Svoboda

HUNGARY

ASSA ABLOY Hungary Kft.

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

POLAND

ASSA ABLOY Poland Sp. z o.o.

Markets and sells products from other Group companies on the Polish market. President: Jakub Gawecki

ROMANIA

ASSA ABLOY Romania S.r.l.

Markets and sells high-security products from other Group companies. President: Attila Sylvester

Urbis Security S.r.l.

Manufactures and markets locks and fittings.President: Attila Sylvester

ISRAEL

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

* Consolidated from February 1 2000

New Markets:Consolidated sales in New Markets in 2000amounted to SEK 981 M (354).GROUP VICE PRESIDENT ASSA ABLOY: ÅKE SUND

Central and eastern Europe:Sales for the central and eastern Europeancountries amounted to SEK 291 M (274).

Israel:Sales by the Israeli company Mul-T-Lockamounted to SEK 354 M. Exports to Groupcompanies in other countries amounted toSEK 0 M and other exports totaled SEK 227 M.

South America:Sales by the Brazilian company Yale LaFonte amounted to SEK 58 M.

Asia:Sales by companies in the Asian organization amounted to SEK 275 M (93).

Southern Africa:Sales by the South African and Zimbabweancompanies amounted to SEK 49 M.

Mul-T-Lock has supplied all the high-security products such as cylinders, padlocks and masterkey systemsin the seaport of Ashdod in Israel. Mul-T-Lock is the leading high-security locking company in Israel.


SOUTH AMERICA

The acquisition of Yale IntruderSecurity in August 2000 gave assaabloy a significant presence in SouthAmerica for the first time. Yale LaFonte Sistemas de Seguranca Ltdamanufactures and markets mortiselock sets, exit devices and hinges forcommercial, industrial and residentialapplications in Brazil. It also exports to other South American countries, notably Argentina and Chile.

The South American lock segmentis fragmented into many small compan-ies and has high development potential.assa abloy and Dorma are the onlyinternational companies manufactu-ring in Brazil. The country’s uniquemortise lock, with no standard dimen-sions, makes it hard for foreign playersto break into the market.

Since most products commercializedin Brazil are very simple, the constantlaunch of new lever models, trimwareand finishes is an important factor inleading local architectural trends.During 2000, Yale La Fonte also supplied lever handles to sister compa-nies in the usa, and plans to developnew handles for the Group in 2001.

The launch of the Inova line oflocksets in late 2000 aims to satisfy the security need of the medium-endmarket, and the launch of a higher-security cylinder and a multipoint lockhave been studied for 2001.

Higher-security products currentlyhave an insignificant share in SouthAmerica. In order to introduce high-security products already available within the Group, Yale La Fonte willcontinue to develop its locksmith/retailstores (owned or franchised) in Braziland to open offices and showrooms inPeru, Chile and Bolivia.

In 2001 Brazil is expected to show

4 percent growth in gdp and around 3 to 3.5 percent for the constructionmarket. With increasing affluence, thelow-end market is showing exponentialgrowth. A shortage of residences andthe high concentration of urban popu-lation are fueling new construction.

ASIAFollowing the acquisition of YaleIntruder Security in August 2000, assaabloy’s Asian organization consists ofsales companies in China, Hong Kong,Malaysia, Singapore and Thailand andthe manufacturing company Yale-GuliSecurity Products (Guangdong) Ltd inChina.

assa abloy Asia markets a broadspectrum of products from Groupcompanies while Yale (Hong Kong)markets Yale-brand products across

Asia. Yale-Guli is China’s largest lockcompany, manufacturing locksets, rimlocks, mortise locks and door closersfor domestic and export markets andmarketing Yale products in China.

Led by Singapore, which showedsustained economic growth, Asianmarkets saw some recovery during2000, although construction activity inmost countries was held back by over-supply of both commercial office spaceand housing. Despite the negativeimpact of price deflation, China main-tained positive economic growth andHong Kong is recovering. Politicaluncertainties and economic problemscontinue to hold back the Philippinesand especially Indonesia. Economicindicators such as lower interest ratesnow encourage belief in a sustainedrecovery in the region.

New Markets:

Guli is the leading lock brand in China. In addition to supply through traditional hardware channels, Gulilocks are sold in the growing number of international retail outlets such as the B&Q store in Shanghai.


SOUTH AMERICA

Yale la Fonte Sistemas de Seguranca Ltda. * Manufactures a wide range of security products including locksets, exit devices and hinges for commercial, industrial and residential applications. President: Ricardo Bargieri

ASIA

ASSA ABLOY Asia LimitedActs as holding company for the Asia region, marketingand selling Group products primarily for commercial,institutional, residential and industrial applications acrossAsia. Subsidiary companies and sales offices are locatedin Singapore, China, Hong Kong, Malaysia and Thailand.President: C.K. Jeang

Yale-Guli Security Products (Guangdong) Ltd. *Manufactures primarily residential locks for China and for export world-wide.President: C.K. Jeang

SOUTHERN AFRICA

Yale-Union Security South Africa * Offers the most comprehensive range of architectural, DIY and OEM ranges of physical security hardware.Managing Director: John Middleton.

Chubb Locks Union Zimbabwe *Markets a complete range of security products.Managing Director: Rory Vahey

SEK M 2000 1999 1998 1997 1996

Sales 981 354 186 68 –

Average no.of employees 3,296 1,774 1,936 385 –





locks, 2%


Trends

assa abloy’s Asian sales are mainly to the construction industry, retaildistributors, hotels, professional end-users and oem purchasers. The abloy,sargent, Vachette, assa, Lockwoodand Yale brands all increased marketshare significantly. In China, focus onthe project sector produced contractsfor the Beijing International FinanceCenter and the Bank of China headquarters among others. Prestigeprojects elsewhere included St Theresa’sHospital in Hong Kong, the Slim RiverHospital in Malaysia, Singapore CableVision, several new prestige hotels inBangkok, and many office, housingand government projects in HongKong, Singapore, Malaysia andThailand. In Malaysia a new fire doorStandard was developed and establishedin close cooperation with assa abloy.

In China, Yale-Guli maintained itsdomestic leadership despite downwardprice pressure and strong competition.It is now a major supplier to inter-national retailers opening up in Chinasuch as Wal-Mart, Carrefour and b&q.Opportunities for low-cost manufac-ture for other Group companies wereassisted by a sustained program ofupgrading product quality. Sales toNorth America and Europe of a newdoor closer line were good, and newhigh-security rim locks and mortiselocks were launched.

SOUTHERN AFRICAThe acquisition of Yale IntruderSecurity in August 2000 gave assaabloy a leading position in the frag-mented southern African market. Yale-Union Security South Africamanufactures the country’s most comprehensive range of physical security hardware for architectural,

diy and oem applications. ChubbLocks Union Zimbabwe markets a fullrange of security products to theZimbabwean and selected regionalmarkets.

The South African lock industry isclosely linked to the building sector,which has been in recession for twoyears. Although the high interest ratesfollowing the Asian crisis have nowsoftened, the political situation inneighboring states has caused cashconcerns in the entire region. Thebuilding industry is expected to improvein the second half of 2001.

In the replacement/diy market,Yale-Union enjoyed good growth andexpects this to continue. The SouthAfrican market is one of the most security-conscious in the world, withan increasingly affluent middle class.

Through benchmarking, employeeeducation and new investments, Yale-Union has dramatically improvedquality and service, extended its brandand product leadership and met BritishStandard specifications for its securitylever locks. New commercial and higher-security products will allowcontinued growth when the economyrevives.

* Consolidated from August 25 2000


Consistently growing markets for hotel door-locks and safes

Hotel locks:

assa abloy’s global marketing of special-ized security systems to the internationalhospitality industry is conductedthrough two different organizations:The VingCard Group, with head-quarters in Norway, and Timelox,based in Sweden, which the Groupacquired in late 2000.

VINGCARDVingCard's business concept is basedon card locks that accept key cardswith magnetic stripes and are quicklyrecoded for each new hotel guest orcruise ship passenger. Integratedsystems are becoming increasinglyimportant, where the key card is alsoused to open in-room safes, to giveaccess to recreation areas, for energycontrol and as a chargecard in adjoin-ing shops and restaurants.

VingCard’s subsidiary Elsafe Inter-national offers in-room hotel safes, also recodable, accessed via a personal digital code, key card or credit card.

Market and market trendsOut of about 13 million hotel roomsworldwide, there are currently some 6 million card locks installed. As theinternational hotel business continuesto consolidate into fewer and largerhotel chains, VingCard, primarily asolution provider, has focused on build-ing strong relationships with the majorhotel groups. The combination of newhotel construction, upgrading of oldersystems during major renovation, andpenetration of the concept to smallerhotels offers good potential for con-tinued growth. Aftermarket sales, andservice and support contracts, will beanother increasingly important growtharea.

VingCard sales in Europe, the Middle East and Africa continued to

grow substantially in 2000. VingCard’sgrowth exceeded general marketgrowth, allowing its market share toincrease in many markets. The Asianregion is showing signs of recoveryafter years of recession. Projects put‘on hold’ are now advancing again.The us market is at the same level aslast year but is expected to see futuregrowth thanks to the need to upgradethe large number of electronic lockssold in the early 1990s.

The cruise ship market is growing.VingCard’s marine division had anothergood year and future demand is strong.

VingCard's Persona product group,based in the usa, caters to residentialfacilities on university and college campuses. With its need for intelligentand convenient security solutions, thismarket is expected to grow substantially.

Elsafe International had anothergenerally successful year, achieving itsforecast increase of approximately 20percent in the number of safes sold.The North American division produ-ced particularly good results, and itwas pleasing to see growth in the keyAsian region sustained for two years,indicating that the Elsafe brand namehas weathered the recession. As well asthe established market for electronic in-room safes at larger resort properties,rapid growth is expected as more cityhotels install room safes as a standardsecurity and convenience feature.

The trend towards higher securityGeneral security awareness amonghotel guests is constantly increasing.VingCard therefore focuses strongly on identifying customers’ needs anddeveloping innovative, tailor-madeproducts to satisfy them. The partner-ship concept, based on exchange of

ideas and experience, has led to manygreat inventions. Being part of assaabloy also enables VingCard to meetany security requirements a customermight have.

New products and initiativesTogether with major customers, Ving-Card is now looking at ‘the hotel roomof the future’, where technology will becrucial in providing convenience withhigh security and safety. Modern secu-rity products must be easy to use andunderstand for both hotel staff andguests.

Design is also becoming moresignificant. Locks are an integral partof the hotel’s furniture, environmentand atmosphere. The new da vincilock – first installed in Copenhagen’sHotel Admiral – is an outstandingexample, combining contemporarydesign, modularity and smart-cardtechnology.

Elsafe’s Infinity Collection of in-room safes, launched last year, hasestablished itself as the new state-of-theart product among most internationalhotel chains. It uses the same Lock-SafeLink system as VingCard’s davinci locks, enabling customers tobenefit from VingCard/Elsafe synergies.

TIMELOXTimelox is the world market leader inDual-Card technology – the use ofmagnetic cards for guests and smartcards for staff – which it introduced tothe hospitality industry two years ago.Sales are mostly to larger hotels looking to integrate their varioussystems. The Dual-Card is fully inter-faced to all property systems includingproperty management, point-of-sale,time attendance, security cameras,energy management and casino slot

player tracking. Installations includesome of the world’s largest and mostprestigious hotels, such as the Venetianand the Aladdin in Las Vegas.

Market and market trendsThe specialized Timelox worldwidedistribution network continues to grow,with excellent customer service andsupport as its main focus. In its firstyear within the assa abloy GroupTimelox has already found new chan-nels for its access products to the non-hotel market

The trend towards higher securityWith its Dual-Card solutions Timeloxhas taken door lock technology into thefuture. By assigning employee cards tospecific doors – unlike older systemsthat allowed assignment to a range ofrooms – the smart-card technologyoffers significantly better security. All

information is now recorded on asmart chip, allowing the card to beinterrogated to read which doors wereentered and at what time.

Timelox’s Energy Management andInfrared communication systems offercost-effective technology for communi-cating with a central system that moni-tors each room in a hotel.

New products and initiativesTo keep its market-leading position,Timelox is continuing to develop secu-rity systems that are efficient, safe, andeasy to use. In 2000, the Group com-pany Lockwood in Australia integratedTimelox technology into a new door-unit designed for the local market.Timelox plans to develop links withother Group members, providing elec-tronic locking features to enhancemechanical locking

VingCard a.sWorld-leading solution provider of card locks and safesto the hospitality industry. President of the VingCard Group: Dag Schjerven

Elsafe International a.sWorld leader in digital safes for hotel rooms.President: Alvin Berg

VingCard subsidiaries:Brazil President: Erik PetersenCanada President: Larry CechetFrance President: Christian HenonGermany President: Ansgar FrischeHong Kong President: Tommy LeungSingapore President: Fred JohanssonThailand President: Phonlavit ManchakraUK President: Howard WittUSA President: Mats Gustafsson

Timelox ABTimelox AB develops, manufactures and markets high-technology security and access control systems.Customers are hotels, institutions and companies. Timelox AB has distribution and support channels worldwide. President: Jan Wabréus

SEK M 2000 1999 1998 1997 1996

Sales 1,052 965 952 794 681

Average no.of employees 710 669 605 623 558

Hotel locks, 82%

Hotel safes, 18%


Trends

Hotel locks:Sales for the hotel locks operations within ASSA ABLOY in 2000 amountedto SEK 1,052 M (965) representing organicgrowth of 4 percent. Export sales toGroup companies in other countriestotaled SEK 62 M.

The prestigious Renaissance Riverside Saigon Hotel is one of many properties throughout the worldsecured with VingCard locks.


world of scandinavia - assa abloy...assa abloy’s organization in den-mark consists of the lock...

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