Continuous improvements and growth despite
difficult market conditions

• Sales increased by 13 percent to SEK 25,397 M (22,510) Organic growth for comparable units was 2 percent Income before tax increased by 23 percent to SEK 2,015 M (1,642*)

• Earnings per share (EPS) increased by 18 percent to SEK 3.53 (2.98*)

• Earnings per share before goodwill amortization increased by 14 percent to SEK 6.13 (5.39*)

• Operating cash flow amounted to SEK 3,525 M (2,338)

• Acquisition of Besam
  Besam is the world leader in door automatics with annual sales of SEK 2 billion and a profit margin exceeding 10 percent. Automatic products and systems have hitherto formed only a limited part of ASSA ABLOY’S product portfolio, but they fit extremely well into the Group’s strategy of creating security solutions that prevent unauthorized entry while permitting safe, fast exit in emergency situations and being simple and convenient to use. The market for door automatics has shown sustained growth of 7-10 percent a year.

• Cash flow generation at an all-time high
  Operating cash flow after payment of income taxes amounted to SEK 3 billion, an increase of 67 percent compared to 2001. The increase is attributable to ASSA ABLOY’S long-term efforts to reduce working capital and the Group’s efficient capital expenditure. Operating cash flow after tax per share amounts to SEK 8.26 (5.07), an increase of 63 percent.

• Continuous margin improvements
  Continuous benchmarking between the various units has continued to produce results in the form of higher productivity and further margin improvements in many units, including the former Yale group of companies. During the year greater focus has been placed on supply management with the objective of reducing the number of suppliers and realizing Group synergies.