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ASSA ABLOY worked closely<br />
with the architects to specify<br />
the building’s security<br />
solutions. The new dormitory<br />
building in the EU<br />
complex will be home to<br />
the 400 members of the<br />
European Parliament and<br />
therefore requires a high<br />
level of security.<br />
Sales organization<br />
Efforts to expand and reorganize the sales organization<br />
continued during the year. Essentially, many sales organizations<br />
have now been coordinated under the ASSA ABLOY<br />
brand, each with a focus on specific market and customer<br />
segments. Moreover, as the specification of total door<br />
solutions has grown in importance for achieving sales, the<br />
number of sales representatives specializing in specification<br />
was substantially increased and collaboration with architects<br />
and security consultants was strengthened.<br />
Sales by product group<br />
Mechanical locks, lock<br />
systems and accessories, 73%<br />
Electromechanical and<br />
electronic locks, 14%<br />
Security doors and fittings, 13%<br />
SEK M 2006 2007<br />
Income statement<br />
Sales<br />
Organic growth, %<br />
12,509<br />
8<br />
13,477<br />
7<br />
Operating income (EBIT) 1 1,972 2,295<br />
Operating margin (EBIT) 1 Key figures<br />
Mekaniska lås,<br />
låssystem och<br />
tillbehör, 73%<br />
Elekromekaniska<br />
och elektroniska, 14%<br />
Säkerhetsdörrar<br />
och beslag, 13%<br />
, % 15.8 17.0<br />
Capital employed<br />
Capital employed 9,183 10,055<br />
– of which goodwill 4,631 4,926<br />
Return on capital employed 1 , % 19.1 21.9<br />
Cash flow<br />
Cash flow 1 1,899 2,267<br />
Average number of employees<br />
1 2006 excluding restructuring items.<br />
12,283 12,493<br />
EMEA Division<br />
17<br />
Efficiency and restructuring program<br />
The restructuring program continued to concentrate production<br />
of important components to specialized production<br />
facilities, such as cylinders in the Czech Republic and<br />
lock cases in Romania. The production of components<br />
continued to be outsourced to preferred suppliers in<br />
low-cost countries. In order to maintain high customer<br />
service standards, Western European production facilities<br />
will focus more on final assembly and customization of<br />
products. The ongoing initiative to coordinate purchasing<br />
resulted in an increased percentage of purchases in lowcost<br />
countries and better use of benefits of scale within<br />
the division.<br />
Shared services<br />
Administrative services will be coordinated on a region-<br />
by-region basis to improve efficiency. Shared services<br />
have already been implemented in regions such as<br />
Germany, which has achieved good results. In 2008 and<br />
2009 all regions will be similarly organized.<br />
Human Resources<br />
During the year EMEA worked proactively to find, train<br />
and keep highly skilled employees. These efforts are particularly<br />
critical, given the considerable change that is<br />
ongoing in the division, such as the extensive restructuring<br />
program. Focus on assuring and facilitating internal<br />
recruitment of managers was intensified during the year.<br />
Acquisitions<br />
Despite EMEA’s solid market position, good acquisition<br />
opportunities can still be found. EMEA is actively seeking<br />
acquisition candidates to round out its geographic presence,<br />
for example in German-speaking countries and in<br />
Eastern Europe, as well as companies that can provide<br />
new products or distribution channels.
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