1

Q2 Report 2009Johan Molin

President & CEO

2

Financial Highlights Q2 2009

Strong performance despite recessionary market – Construction in recession throughout the world– All divisions affected and declining – Stable high EBIT through large efficiency gains– Record strong cash flow

Sales 8,921 MSEK +5%-14% organic, +4% acquired growth, +15% currency

EBIT 1,340 MSEK -3%Currency effect +268 MSEK

EPS 2.25 SEK -2%

3

Financial Highlights H1 2009

Stable and consistent performance despite recession

– Total growth 6%– Improved EBIT through efficiency and currency gains

Sales 17,803 MSEK +6%-13% organic, +4% acquired growth, +15% currency

EBIT 2,668 MSEK* +2%Currency effect +493 MSEK

EPS 4.45 SEK +2%

* Excluding restructuring charges of MSEK 109

4

ASSA ABLOY in Q2 2009

Weakening demand in all parts of the world– De-stocking close to end

– Asia, Africa and Brazil less affected

– American lack of new commercial construction will affect H2

Electromechanics holding up thanks to new products– RFID for hotels, high definition printers, Cliq technology,

WiFi locks USA, low energy operators

Continued investment in R&D and market presence

Industry consolidation continues– Agreement to acquire Ditec

5

Group Sales in Local Currencies H1 2009

2 -11

38 -1045 -11

9 +5

4 -11

2 +10

Share of Group sales 2009 YTD, %Year-to-date vs previous year, %

6

20 00021 00022 00023 00024 00025 00026 00027 00028 00029 00030 00031 00032 00033 00034 00035 00036 000

2004 2005 2006 2007 2008 2009

Sa

les,

MS

EK

-14-13-12-11-10-9-8-7-6-5-4-3-2-101234567891011121314

Gro

wth

%

Organic Growth Acquired Growth Sales in Fixed Currencies

Sales Growth Q2 2009 - Currency Adjusted

2009 Q2 -10%Organic -14%Acquired +4%

Total growth 52% in 5 years

7

Operating Income (EBIT) MSEK

500

600

700

800

900

1 000

1 100

1 200

1 300

1 400

1 500

2005

2006

2007

2008

2009

3 100

3 300

3 500

3 700

3 900

4 100

4 300

4 500

4 700

4 900

5 100

5 300

5 500

5 700

Quarter Rolling 12-monthsQuarter 12-months

Continued strong EBIT Run rate 5,572 MSEK (5,466), +2%

8

Operating Margin (EBIT)

11,0

12,0

13,0

14,0

15,0

16,0

17,0

2005

2006

2007

2008

2009

EB

IT %

Quarter Rolling 12-months

Run rate 2009 15.5% (16.2)

9

Manufacturing Footprint

Very successful!

Conversion to assembly in high cost countries

Low cost content from 23% to 39% since 2005

Large efficiency gains out of the programs

Consolidation of support functions and administration

Achieved 3 829p, 1 085p more to go, +29% to plan

10

Personnel Development

25 000

26 000

27 000

28 000

29 000

30 000

31 000

32 000

33 000

34 000

2007 2008 2009

No

of

Peo

ple

Personnel Total Personnel Organic

-7,462 people organically from

Q4 2007

Incl. acquisitions from Q4 2007

-3%

-10%

-10%

11

Acquisitions 2009

Selective activity within acquisitions

4 small acquisitions carried through during H1– Adds 200 MSEK annualized, +0.6%

Signed agreement to acquire Ditec, Italy– Adds 900 MSEK from Q4, +2.6%

SimonsVoss– Court appeal pending

12

Strategic move into fast growing and profitable door automation

>20 BSEK industry with EBIT >15%

Creates a clear leader in automated entrances

Leader in door automatics in Italy and 60% export

Complementary to Entrance Systems– Automatic doors – Gate automation– Rapid industrial doors

Adds indirect sales channel– Adds to indirect sales channel in mature markets– Expands the emerging markets

Ditec ItalySales 900 MSEK

13

Margin Highlights Q2 2009

EBIT margin 15.0% (16.2)

- Volume downturn

- Fixed production costs dilutes

+ Manufacturing footprint, 31 sites closed

+ Contingency and manufacturing plans3,184 people left in H1, 10% less 23% reduction in personnel in 21 months

+ S, G & A cost improvement

14

Division - EMEA

Deep construction decline continues

All markets down but Germany, Africa and UK relatively better

Severe downturn in Spain, Italy and EE

Profit supported by footprint savings

Valli&Valli and Gardesa dilutes by 0.3%

Operating margin (EBIT) - Volume -18%

+ Restructuring savings

- Dilution

= Raw material positive

SALESshare of

Group total %

38

EBIT %

1112131415161718

2005

2006

2007

2008

2009

15

Division - Americas

Residential and commercial markets down

Canada, Mexico and Brazil less hit

Distribution destocks and weak aftermarket

Strong EBIT Margin through efficiency gains and personnel reductions

Lack of commercial construction will affect H2 even more

Operating margin (EBIT) = Volume -17%+ Strong efficiency improvement= Raw materials positive

SALESshare of

Group total %

30

EBIT %

16

17

18

19

20

21

2005

2006

2007

2008

2009

16

Division - Asia Pacific

Slowing construction in the whole region

Flat sales in China and South East Asia

Australia and New Zealand are weak

Production for Europe in sharp decline

iRevo successful launch of new digital lock range

Operating margin (EBIT)- Volume -9%- Currency effects AU/NZ+ Restructuring savings+ Raw material

SALESshare of

Group total %

9

EBIT %

4

6

8

10

12

14

16

2005

2006

2007

2008

2009

17

Division - Global Technologies

HID Access control declining

Several large projects for Secure Issuance

ITG sales continued negative

Hospitality market in sharp decline

Efficiency gains gives good profit in HID and Hospitality

Operating margin (EBIT)+ Volume stable HID/Fargo

+ Hospitality currency improvement

+ Restructuring give good effects

SALESshare of

Group total %

14

EBIT %

1213141516171819

2005

2006

2007

2008

2009

18

Division - Entrance Systems

Recession in the retail segment

Stable health care and emerging markets

Good development of service sales

Margin improvement from manufacturingfootprint

Operating margin (EBIT) - Volume -5%

+ Manufacturing footprint

+ Raw material

SALESshare of

Group total %

9

EBIT %

11

12

13

14

15

16

17

2005

2006

2007

2008

2009

19

Q2 Report 2009Tomas Eliasson

CFO

20

Financial Highlights Q2 2009

MSEK 2008 2009 Change 2008 2009 Change

Sales 16,728 17,803 +6% 8,526 8,921 +5%Whereof Organic growth -13% -14%Acquired growth +4% +4%FX-differences +2,893 +15% +1,433 +15%

Operating income (EBIT)* 2,621 2,668 +2% 1,378 1,340 -3%EBIT-margin (%)* 15.7 15.0 16.2 15.0

Operating cash flow 1,663 2,422 +46% 1,081 1,584 +47%

EPS (SEK)* 4.38 4.45 +2% 2.30 2.25 -2%

*Excluding restructuring charges of 109 MSEK in Q1 2009

Half Year 2nd Quarter

21

Cost Development – Volume Adjusted

Material Cost Rolling 12 MonthsGroup Year-on-Year Changes in Cost

-5%

-4%-3%

-2%

-1%

0%1%

2%

3%

4%5%

6%

7%

8%9%

10%

20

07

20

08

20

09

Adjusted for currency, growth and acquisitions

Material cost change = net of cost change and outsourcing mix change

H1: 75 MSEK saving from material cost less

increased outsourcing!

H1: 75 MSEK saving from material cost less

increased outsourcing!

22

Cost Development

Conversion cost = all fixed and variable production costs excluding material

Conversion Cost Rolling 12 MonthsGroup Year-on-Year Changes in Cost

-10%-9%-8%-7%-6%-5%-4%-3%-2%-1%0%1%2%3%4%5%6%7%8%9%

10%

20

07

20

08

20

09

Adjusted for currency and acquisitions

-11% in H1Variable: -17%Fixed: -4%

-11% in H1Variable: -17%Fixed: -4%

23

Cost Development

S, G & A Rolling 12 MonthsGroup Year-on-Year Changes in Cost

-10%-9%-8%-7%-6%-5%-4%-3%-2%-1%0%1%2%3%4%5%6%7%8%9%

10%

20

07

20

08

20

09

Adjusted for currency and acquisitions

S, G & A cost = Selling, administrative and R&D costs

-15% in H1-15% in H1

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13.7%17.1%21.4%

103493-550

7522,893-2,571

4%15%-13%

Acq/DivCurrenyOrganicGrowth

15.0%15.7%%

2,6682,622EBIT

17,80316,728Revenues

Bridge Analysis – Jan-Jun 2009

6%ASSA ABLOY Group

2009Jan-Jun

2008Jan-JunMSEK

25

Operating Cash Flow, MSEK

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2005

2006

2007

2008

2009

Qua

rter

3000

3500

4000

4500

5000

5500

6000

6500

12-m

onth

s

Quarter Rolling 12-months

26

Gearing % and Net Debt MSEK

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

2005

2006

2007

2008

2009

0

20

40

60

80

100

120

Net debt Gearing

Net debt Gearing

Debt/Equity 74 (87)

Debt/Equity 74 (87)

27

Maturity Profile Long Term DebtAll long term debt maturing before 2011 refinanced

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

2010 2011 2012 2013 2014 2015 2016 ->

Long term debt = 79% of net debtBackup facility 12 BSEK not utilized

28

Q2 Report 2009Johan Molin

President & CEO

29

Conclusion Q2 2009

5% growth

Strong profit despite recessionary markets

Continued investments in R&D and market presence

Agreement to acquire Ditec

Strong operational cash flow

30

Short Term Actions 2009

Stay close to customers – sales force maintained

Continue investments in new products

Cost reductions

Cash and margin focus

Be ready to react fast on market opportunities

31

Outlook

Long Term

Organic sales growth is expected to continue at a good rate

The operating margin (EBIT) and operating cash flow are expected to develop well

Outlook for 2009

Significant construction slowdown in all parts of the world

Negative organic growth is expected

32

Q&A

33

Summary

Construction in recession throughout the world

High profit maintained

Strong savings and currency gains

Selective acquisition activity

Continued investments in front end and product development

No visible improvements in market conditions in H2