Interim report
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Quarterly Report Q1 2025 April 23, 2025 Experience a safer and more open world Strong performance in challenging market conditions First quarter ● Net sales increased by 8% to SEK 37,940 M (35,200), with organic growth of 2% (–2) and acquired net growth of 5% (11). Exchange rates affected sales by 1% (0). ● Organic sales growth was strong in Global Technologies, good in Americas, stable in EMEIA and Entrance Systems, while organic sales declined in Asia Pacific. ● Six acquisitions with combined annual sales of about SEK 3,600 M were completed in the quarter. Divestment of the majority of Citizen ID was completed. ● A new Manufacturing Footprint Program was launched during the quarter. The expected restructuring cost for the new program is SEK 1,332 M, with a pay-back time, including capital expenditure, of less than two years. ● Operating income1 (EBITA) increased by 5% to SEK 6,051 M (5,740) with an operating margin of 15.9% (16.3). ● Operating income1 (EBIT) increased by 4% and amounted to SEK 5,645 M (5,427), with an operating margin of 14.9% (15.4). ● Net income1 amounted to SEK 3,551 M (3,462). ● Earnings per share1 amounted to SEK 3.20 (3.12). ● Operating cash flow amounted to SEK 2,424 M (3,096). Sales and income Full year First quarter 2023 2024 Δ 2024 2025 Δ Sales, SEK M 140,716 150,162 7% 35,200 37,940 8% Of which: Organic growth 3,393 –1,132 –1% –762 607 2% Acquisitions and divestments 10,651 11,326 8% 3,607 1,709 5% Exchange rate effects 5,879 –748 0% –35 424 1% Operating income (EBIT)1, SEK M 22,185 24,296 10% 5,427 5,645 4% Operating margin (EBITA)1, % 16.5% 17.1% 16.3% 15.9% Operating margin (EBIT)1, % 15.8% 16.2% 15.4% 14.9% Income before tax1, SEK M 19,654 20,914 6% 4,616 4,766 3% Net income1, SEK M 15,049 15,636 4% 3,462 3,551 3% Operating cash flow, SEK M 25,232 23,052 –9% 3,096 2,424 –22% Earnings per share1, SEK 13.54 14.09 4% 3.12 3.20 3% 1 Excluding items affecting comparability. Please see the tabulated figures section in this report, page 12, for further details about the financial effects in 2024 and 2025. Organic growth +2% Acquired net growth +5% Operating income1 +4% Earnings per share1 +3%
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© ASSA ABLOY – Quarterly Report Q1 2025 2 (17) Comments by the President and CEO Strong performance in challenging market conditions The macroeconomic environment remains challenging, with geopolitical uncertainty fueled by tariff concerns and high interest rates. However, our strong exposure to the aftermarket continues to demonstrate its value, contributing to 2% organic sales growth in the first quarter. Acquisitions net contributed 5% to sales growth, while currency effects were small at 1%. With our agile organization and strong local presence, we are well-positioned to adapt to changing market conditions and prioritize growth opportunities while taking cost actions where needed. Sales were primarily driven by strong organic sales growth of 8% in Global Technologies, supported by strong growth in HID and very strong growth in Global Solutions. Americas had good organic sales growth of 2% with continued strong growth in the North America Non-Residential segment and Latin America. The North America Residential segment saw sales decline, where persistently high interest rates and uncertainty weighed on consumer confidence. EMEIA’s organic sales were flat in the quarter, as strong growth in Central Europe and in the Nordics was offset by sales declines in South Europe and the Middle East. Entrance Systems’ organic sales were also flat, impacted by continued weakness in the Industrial and Doors & Automation segments. The Perimeter Security and Pedestrian segments report very strong and good growth, respectively. Asia Pacific’s sales declined by 5% with continued weak demand in the Chinese residential market. The operating profit excluding items affecting comparability increased by 4% to SEK 5,645 M, with a corresponding margin of 14.9% (15.4). The operating margin was diluted by 140 bps due to acquisitions and divestments. These effects are largely temporary and mainly related to transaction- and integration costs, seasonal impact and divestment results. This was partly offset by very strong operating leverage of 60% from price realization and cost management. The operating cash flow of SEK 2,424 M decreased by 22% versus last year and was affected by inventory build-up in preparation for tariffs. The corresponding cash conversion was 51%. Manufacturing Footprint Programs are key enablers for growth In the first quarter, we launched our 10th Manufacturing Footprint Program (MFP), which will generate annual savings of about SEK 1 bn with a payback period of less than two years. The program comprises almost 60 projects and, similarly to previous programs, includes factory, warehouse and office closures across all divisions. The efficiency gains and cost savings achieved through footprint consolidation are key growth enablers, fueling our growth accelerators outlined in the year-end report. These enablers allow us to further increase investments in R&D, which are essential to drive the transition from mechanical to electromechanical, among other things. They also allow us to expand our service offering, strengthen recurring revenue streams, and grow our presence in emerging markets. We are confident that our strategy will deliver accelerated growth over time even though the prevailing market conditions are challenging and uncertain. Thank you for your continued support and trust in ASSA ABLOY. Stockholm, April 23, 2025 Nico Delvaux President and CEO 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 ,0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 SEK M Sales by quarter and last 12 months Sales, quarter Sales, 12 months 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 SEK M Operating cash flow by quarter and last 12 months Operating cash flow, quarter Operating cash flow, 12 months
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© ASSA ABLOY – Quarterly Report Q1 2025 3 (17) First quarter The Group’s sales increased by 8% to SEK 37,940 M (35,200). Organic growth amounted to 2% (–2). Net growth from acquisitions and divestments was 5% (11), of which 5% (15) were acquisitions. Exchange rates affected sales by 1% (0). The Group’s operating income before amortizations from acquisitions2 (EBITA) amounted to SEK 6,051 M (5,740). The corresponding EBITA margin was 15.9% (16.3). The Group’s operating income2 (EBIT) totaled SEK 5,645 M (5,427), an increase of 4%. The corresponding operating margin was 14.9% (15.4). Exchange rates had an impact of SEK 103 M (54) on EBIT. Net financial items amounted to SEK –879 M (–811). The Group’s income before tax2 was SEK 4,766 M (4,616), an increase of 3% compared to last year. Exchange rates had an impact of SEK 78 M (65) on income before tax2. The corresponding profit margin was 12.6% (13.1). The estimated effective income tax rate in 2025, on an annualized basis and excluding items affecting comparability, is 25.5% (25.2% for the full year 2024). Earnings per share before and after dilution2 amounted to SEK 3.20 (3.12), an increase of 3% compared to last year. Operating cash flow totaled SEK 2,424 M (3,096), which corresponds to a cash conversion2 of 0.51 (0.67). The net-debt/equity ratio totaled 0.70 (0.66) at the end of the quarter. Financial net debt totaled SEK 71,441 M (70,253). New bonds were issued during the quarter for a total value of SEK 2,729 M while SEK 1,418 M in maturing long-term loans were repaid. The Group’s long-term borrowing totaled SEK 53,585 M (54,989) while short-term borrowing totaled SEK 15,418 M (11,958). Restructuring measures A new Manufacturing Footprint Program was launched during the first quarter of 2025. The closure of factories, warehouses and offices in the restructuring program takes place over a period of around two years. The expected restructuring cost for the new program is SEK 1,332 M and the expected pay- back time, including capital expenditure, is less than two years. Restructuring payments totaled SEK 166 M (137) for the quarter. The programs proceeded according to plan. At the end of the quarter provisions of SEK 1,130 M remained in the balance sheet for carrying out these programs. Quarterly comments by division Opening Solutions EMEIA Sales for the quarter in EMEIA totaled SEK 6,464 M (6,216), with an organic sales growth of 0% (–3). Organic sales growth was strong in Central Europe and the Nordics, and stable in in the UK/Ireland, but declined in South Europe and in Middle East/Africa/India. Sales growth from acquisitions was 3%. Operating income excluding items affecting comparability totaled SEK 894 M (850), which represents an operating margin (EBIT) of 13.8% (13.7). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 15.7% (14.9). Operating cash flow before non-cash items and interest paid totaled SEK 223 M (459). 2 Excluding items affecting comparability. Please see the tabulated figures section in this report, page 12, for further details about the financial effects in 2024 and 2025. 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 SEK Earnings per share by quarter and last 12 months Earnings per share, quarter Earnings per share, 12 months
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© ASSA ABLOY – Quarterly Report Q1 2025 4 (17) Opening Solutions Americas Sales for the quarter in the Americas totaled SEK 11,171 M (10,532), with an organic sales growth of 2% (–1). Organic sales growth was strong in Latin America and the North America Non-Residential segment, but declined in the North America Residential segment. Net sales growth from acquisitions was 2%. Operating income excluding items affecting comparability totaled SEK 1,915 M (1,910), which represents an operating margin (EBIT) of 17.1% (18.1). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 12.6% (13.7). Operating cash flow before non-cash items and interest paid totaled SEK 745 M (865). Opening Solutions Asia Pacific Sales for the quarter in Asia Pacific totaled SEK 1,936 M (2,048), with an organic sales growth of –5% (–3). Organic sales growth was stable in Pacific & North East Asia, but declined significantly in Greater China & South East Asia. Sales growth from acquisitions was 0%. Operating income excluding items affecting comparability totaled SEK 80 M (105), which represents an operating margin (EBIT) of 4.1% (5.1). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 5.6% (5.9). Operating cash flow before non-cash items and interest paid totaled SEK –128 M (125). Global Technologies Sales for the quarter in Global Technologies totaled SEK 6,258 M (5,433), with an organic sales growth of 8% (–9). Organic sales growth was strong in HID and very strong in Global Solutions. Net sales growth from acquisitions was 5%. Operating income excluding items affecting comparability totaled SEK 855 M (839), which represents an operating margin (EBIT) of 13.7% (15.4). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 14.1% (14.7). Operating cash flow before non-cash items and interest paid totaled SEK 729 M (492). Entrance Systems Sales for the quarter in Entrance Systems totaled SEK 12,586 M (11,442), with an organic sales growth of 0% (0). Organic sales growth was very strong in Perimeter Security, good in Pedestrian, stable in Doors & Automation, but declined in Industrial. Net sales growth from acquisitions was 9%. Operating income excluding items affecting comparability totaled SEK 2,109 M (1,944), which represents an operating margin (EBIT) of 16.8% (17.0). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 19.8% (20.4). Operating cash flow before non-cash items and interest paid totaled SEK 2,038 M (2,296). Acquisitions and divestments Acquisitions Six acquisitions were completed during the first quarter of 2025. The combined acquisition price for all business acquired during the year, including adjustments from prior-year acquisitions, totaled SEK 8,359 M. The corresponding acquisition price on a cash- and debt- free basis totaled SEK 9,257 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life totaled SEK 9,054 M. Estimated deferred considerations for current year acquisitions were SEK 880 M.
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© ASSA ABLOY – Quarterly Report Q1 2025 5 (17) On March 17, 2025, it was announced that ASSA ABLOY had acquired Gesellschaft für Sicherheitstechnik, a German innovative player in emergency exit security solutions for commercial, industrial and public buildings. Sales for 2024 amounted to about SEK 130 M. On March 11, 2025, it was announced that ASSA ABLOY had acquired Senior Architectural Systems, an independent supplier of innovative aluminum windows, doors and curtain wall systems and thermally efficient fenestration systems into the commercial construction sector in the UK. Sales for 2024 amounted to about SEK 680 M. On March 4, 2025, it was announced that ASSA ABLOY had acquired Wallace & Wallace, a Canadian manufacturer, distributor and installer of perimeter fencing, door and gate solutions for the commercial and residential markets. Sales for 2024 amounted to about SEK 440 M. On January 24, 2025, it was announced that ASSA ABLOY had acquired InVue, a US-based provider of precision-engineered connected asset protection and access control solutions. The company enables tailormade security solutions to a broad spectrum of industries and retailers. Sales for 2024 amounted to about SEK 1,850 M. On January 24, 2025, it was announced that ASSA ABLOY had acquired Uhlmann & Zacher, a German supplier of access control handles and knobs and corresponding software. Sales for 2024 amounted to about SEK 240 M. On January 8, 2025, it was announced that ASSA ABLOY had signed an agreement to acquire 3millID and Third Millennium Systems, companies within readers and credentials for physical access control based in the US and UK. Sales for 2024 amounted to about SEK 240 M. The acquisition was completed during the first quarter of 2025. Divestments On January 31, 2025, ASSA ABLOY closed the sale of its Citizen ID business outside the US to TOPPAN. Divestment of the US part is still subject to customary closing conditions and regulatory approvals. The Citizen ID business manufactures, designs, and implements physical and mobile identity solutions for government-to-citizen programs around the globe. Citizen ID has some 450 employees with manufacturing facilities in Ireland, Malta and the US. Sales in 2024 amounted to about SEK 1,400 M. The divestment loss before taxes totaled about SEK 50 M. Sustainable development ASSA ABLOY’s first Corporate Sustainability Reporting Directive (CSRD) and sustainability statement is included in the 2024 Annual Report, which was published on March, 17, 2025. During the course of last year, we continued to make strong progress towards delivering on our targets in our 2025 sustainability program and our science-based targets commitment. In 2024, against our 2019 baseline, we reduced our Scope 1 & 2 absolute carbon emissions by 36%. In addition, we reduced our Scope 3 footprint by 10% against our 2019 baseline. We continued to make positive progress in our energy and water intensity targets, where we have reduced our consumption by 40% and 56% respectively. During 2024, we carried out 701 sustainability audits of direct material suppliers. The Group had 267 Environmental Product Declarations verified and published by the end of the year. We are preparing our new 2030 Sustainability Program, where we will look to raise our ambition level yet again. The new program will be launched at the end of 2025.
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© ASSA ABLOY – Quarterly Report Q1 2025 6 (17) Parent company Other operating income for the parent company ASSA ABLOY AB totaled SEK 880 M (651) for the first quarter of 2025. Operating income for the same period totaled SEK –558 M (–669). Investments in tangible and intangible assets totaled SEK 1 M (3). Liquidity is good and the equity ratio was 25.9% (26.7). Accounting policies ASSA ABLOY applies IFRS Accounting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation policies have been applied as in the last Annual Report. No new or amended standards with material impact on the Group’s financial reports have been applied for the first time in 2025. This Report was prepared in accordance with IAS 34 “Interim Financial Reporting” and the Swedish Annual Accounts Act. The Report for the Parent Company was prepared in accordance with the Annual Accounts Act and RFR 2 “Reporting by a Legal Entity”. ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules which the company describes as “alternative performance measures.” For definitions of financial performance measures, refer to Page 17 of this Report. Information about how these measures have been calculated is available on the company’s website, www.assaabloy.com. To reconcile how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company’s Annual Report. The Annual Reports for the years 1994 to 2024 appear on the company’s website. All comparative numbers for income statement and cash flow items relate to the corresponding period last year, unless otherwise indicated. Comparative numbers for the balance sheet relate to the most recent year-end, unless otherwise indicated. Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise. Transactions with related parties No transactions that significantly affected the company’s position and income have taken place between ASSA ABLOY and related parties, except for matters in the normal course of business such as paying dividends to shareholders. Risks and uncertainty factors ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational, and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY’s operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group’s financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest-rate risk, credit risk, and risks associated with the Group’s pension obligations.
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© ASSA ABLOY – Quarterly Report Q1 2025 7 (17) Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general. The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group. The war in Ukraine and the conflict in the Middle East may have a negative business impact on ASSA ABLOY in both the short- and long-term, but the direct business effects are currently seen as limited. While the majority of ASSA ABLOY's production is in local countries, the introduction of various tariffs between different countries could also have a negative effect on ASSA ABLOY's business in the short- and long term. For a more detailed description of particular risks and risk management, please see the 2024 Annual Report. M&A and FX guidance The guidance below relating to two key figures is provided to facilitate financial modeling but should not be viewed as forecasting market outlooks or ASSA ABLOY’s business performance. Acquisitions and divestments It is estimated that completed acquisitions and divestments, on a rolling 12- month basis as of March 31, 2025, will have an effect of 6% on sales in the second quarter of 2025 versus the same period last year, while the effect on the operating margin is estimated to be slightly dilutive in the second quarter of 2025. Exchange rate effects On the basis of the currency rates on March 31, 2025, it is estimated that the weighted currency effects on sales in the second quarter of 2025 versus the same period last year will be –5%, while the effect on the operating margin is estimated to be neutral in the second quarter of 2025. Review The Company’s Auditors have not carried out any review of this Report for the first quarter of 2025. Stockholm, April 23, 2025 Nico Delvaux President and CEO
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© ASSA ABLOY – Quarterly Report Q1 2025 8 (17) Financial information The Quarterly Report for the second quarter of 2025 will be published on July 17, 2025. The Quarterly Report for the third quarter of 2025 will be published on October 21, 2025. The Year-end Report and Quarterly Report for the fourth quarter of 2025 will be published on February 5, 2026. Further information can be obtained from: Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82 Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72 Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: bjorn.tibell@assaabloy.com ASSA ABLOY is holding a telephone and web conference at 09.00 on April 23, 2025 which can be followed online at assaabloy.com/investors. It is possible to submit questions by telephone on: 08–505 100 31, +44 207 107 0613 or +1 631 570 5613 This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on April 23, 2025. ASSA ABLOY AB (publ) Box 703 40 107 23 Stockholm Visiting address Klarabergsviadukten 90, Stockholm, Sweden Tel +46 (0)8 506 485 00 Fax +46 (0)8 506 485 85 www.assaabloy.com Corporate identity number: 556059-3575 No.12 2025
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© ASSA ABLOY – Quarterly Report Q1 2025 9 (17) Financial information – Group CONDENSED INCOME STATEMENT Year SEK M 2024 2024 2025 Sales 150,162 35,200 37,940 Cost of goods sold -87,434 -20,671 -22,295 Gross income 62,728 14,530 15,645 Selling, administrative and R&D costs and other operating income & expenses -38,523 -9,104 -11,341 Capital result from divestment of subsidiaries, incl. exit costs1 24 -18 -6 Share of earnings in associates 45 1 10 Operating income 24,275 5,409 4,308 Finance net -3,382 -811 -879 Income before tax 20,893 4,598 3,429 Income tax -5,272 -1,150 -981 Net income for the period 15,621 3,449 2,448 Net income for the period attributable to: Parent company's shareholders 15,639 3,452 2,449 Non-controlling interests -18 -3 -1 Earnings per share Before and after dilution, SEK 14.08 3.11 2.21 Before and after dilution and excluding items affecting comparability, SEK 14.09 3.12 3.20 CONDENSED STATEMENT OF COMPREHENSIVE INCOME Year SEK M 2024 2024 2025 Net income for the period 15,621 3,449 2,448 Other comprehensive income: Items that will not be reclassified to profit or loss Actuarial gain/loss on post-employment benefit obligations, net after tax 70 106 -45 Total 70 106 -45 Items that may be reclassified subsequently to profit or loss Share of other comprehensive income of associates -1 -4 -35 Cashflow hedges and net investment hedges, net after tax 94 99 -60 Cost of hedging -8 -9 9 Exchange rate differences 5,663 4,787 -7,998 Tax attributable to items that may be reclassified subsequently to profit or loss -3 -2 4 Total 5,745 4,872 -8,081 Total other comprehensive income 5,814 4,978 -8,126 Total comprehensive income for the period 21,435 8,427 -5,677 Total comprehensive income for the period attributable to: Parent company's shareholders 21,459 8,430 -5,667 Non-controlling interests -24 -4 -10 1) Exit costs relate to costs for the divestment of the Smart Residential business in the U.S and Canada in 2023. Q1 Q1
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© ASSA ABLOY – Quarterly Report Q1 2025 10 (17) Financial information - Group CONDENSED BALANCE SHEET SEK M 2024 2024 2025 ASSETS Non-current assets Intangible assets 145,405 135,680 142,860 Property, plant and equipment 12,653 12,129 11,684 Right-of-use assets 6,295 5,837 6,068 Investments in associates 710 623 605 Other financial assets 698 496 664 Deferred tax assets 2,097 1,847 2,000 Total non-current assets 167,859 156,611 163,881 Current assets Inventories 21,020 20,198 20,886 Trade receivables 23,444 22,396 22,584 Other current receivables and investments 6,778 8,438 7,855 Cash and cash equivalents 4,504 2,437 4,139 Total current assets 55,747 53,469 55,463 TOTAL ASSETS 223,605 210,080 219,344 EQUITY AND LIABILITIES Equity Equity attributable to Parent company's shareholders 107,071 99,969 101,249 Non-controlling interests 10 12 132 Total equity 107,080 99,981 101,381 Non-current liabilities Long-term loans 54,989 51,970 53,585 Non-current lease liabilities 4,817 4,463 4,668 Deferred tax liabilities 3,322 3,279 3,337 Other non-current liabilities and provisions 2,927 3,000 3,408 Total non-current liabilities 66,056 62,712 64,998 Current liabilities Short-term loans 11,958 11,455 15,418 Current lease liabilities 1,737 1,557 1,636 Trade payables 12,594 11,767 11,590 Other current liabilities and provisions 24,180 22,608 24,322 Total current liabilities 50,469 47,387 52,965 TOTAL EQUITY AND LIABILITIES 223,605 210,080 219,344 CHANGES IN EQUITY Equity attributable to: Parent Non- company's controlling Total SEK M shareholders interests equity Opening balance 1 January 2024 91,629 16 91,644 Net income for the period 3,452 -3 3,449 Other comprehensive income 4,979 -1 4,978 Total comprehensive income 8,430 -4 8,427 Share-based incentive programs -90 - -90 Total transactions with shareholders -90 - -90 Closing balance 31 March 2024 99,969 12 99,981 Opening balance 1 January 2025 107,071 10 107,080 Net income for the period 2,449 -1 2,448 Other comprehensive income -8,117 -9 -8,126 Total comprehensive income -5,667 -10 -5,677 Share-based incentive programs -154 - -154 Change in non-controlling interest - 132 132 Total transactions with shareholders -154 132 -22 Closing balance 31 March 2025 101,249 132 101,381 31 Mar31 Dec
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© ASSA ABLOY – Quarterly Report Q1 2025 11 (17) Financial information - Group CONDENSED STATEMENT OF CASH FLOWS Year SEK M 2024 2024 2025 OPERATING ACTIVITIES Operating income 24,275 5,409 4,308 Add back of Depreciation/amortization/write-downs 5,645 1,301 1,519 Items affecting comparability 21 18 1,337 Other non-cash items 14 -60 50 Restructuring payments -748 -137 -166 Changes in working capital 208 -2,091 -2,788 Cash flow before interest and tax 29,415 4,440 4,261 Interest paid and received -3,251 -650 -754 Tax paid on income -4,772 -712 -686 Cash flow from operating activities 21,391 3,079 2,821 INVESTING ACTIVITIES Net investments in intangible assets and property, plant and equipment -2,063 -429 -737 Investments in subsidiaries -12,136 -2,337 -7,336 Divestments of subsidiaries 460 147 779 Other investments and disposals -186 0 0 Cash flow from investing activities -13,925 -2,618 -7,294 FINANCING ACTIVITIES Dividends -5,999 - - Acquisition of non-controlling interests -33 - -1 Repayment of lease liabilities -1,797 -402 -511 Net cash effect of changes in borrowings 3,381 897 4,707 Cash flow from financing activities -4,447 495 4,195 CASH FLOW FOR THE PERIOD 3,019 955 -279 CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of period 1,466 1,466 4,504 Cash flow for the period 3,019 955 -279 Effect of exchange rate differences 20 16 -87 Cash and cash equivalents at end of period 4,504 2,437 4,139 Q1
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© ASSA ABLOY – Quarterly Report Q1 2025 12 (17) Quarterly information - Group THE GROUP IN SUMMARY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Last 12 SEK M 2023 2023 2023 2023 2024 2024 2024 2024 2025 2024 months Sales 32,391 34,474 36,881 36,970 35,200 37,968 37,418 39,575 37,940 150,162 152,901 Organic growth 8% 3% 1% 0% -2% -1% 0% 0% 2% -1% - Gross income1 13,393 14,231 15,123 15,024 14,530 15,858 15,756 16,584 16,221 62,728 64,419 Gross margin 1 41.3% 41.3% 41.0% 40.6% 41.3% 41.8% 42.1% 41.9% 42.8% 41.8% 42.1% EBITDA1 6,241 6,658 7,148 7,312 6,728 7,485 7,635 8,092 7,164 29,940 30,377 EBITDA margin 1 19.3% 19.3% 19.4% 19.8% 19.1% 19.7% 20.4% 20.4% 18.9% 19.9% 19.9% Depreciation, excl attrib. to business combinations -862 -936 -995 -1,304 -988 -1,051 -1,026 -1,194 -1,114 -4,259 -4,385 EBITA1 5,379 5,722 6,152 6,008 5,740 6,434 6,609 6,898 6,051 25,681 25,992 EBITA margin 1 16.6% 16.6% 16.7% 16.2% 16.3% 16.9% 17.7% 17.4% 15.9% 17.1% 17.0% Amortization attrib. to business combinations -193 -222 -376 -285 -313 -349 -354 -369 -405 -1,386 -1,478 Operating income (EBIT)1 5,186 5,500 5,777 5,722 5,427 6,085 6,255 6,529 5,645 24,296 24,514 Operating margin (EBIT) 1 16.0% 16.0% 15.7% 15.5% 15.4% 16.0% 16.7% 16.5% 14.9% 16.2% 16.0% Items affecting comparability1 -1 225 1 376 -367 -183 -18 -13 -43 54 -1,337 -21 -1,340 Operating income (EBIT) 3,961 6,875 5,409 5,539 5,409 6,071 6,211 6,583 4,308 24,275 23,174 Operating margin (EBIT) 12.2% 19.9% 14.7% 15.0% 15.4% 16.0% 16.6% 16.6% 11.4% 16.2% 15.2% Net financial items -343 -445 -900 -843 -811 -849 -878 -845 -879 -3,382 -3,450 Income before tax 3,619 6,430 4,509 4,696 4,598 5,223 5,333 5,739 3,429 20,893 19,724 Profit margin 11.2% 18.7% 12.2% 12.7% 13.1% 13.8% 14.3% 14.5% 9.0% 13.9% 12.9% Tax on income -905 -2,854 -1,139 -717 -1,150 -1,306 -1,333 -1,483 -981 -5,272 -5,103 Net income for the period 2,714 3,576 3,371 3,979 3,449 3,917 4,000 4,255 2,448 15,621 14,620 Net income attributable to: Parent company's shareholders 2,713 3,574 3,386 3,959 3,452 3,917 3,998 4,272 2,449 15,639 14,636 Non-controlling interests 1 1 -15 20 -3 0 2 -17 -1 -18 -16 OPERATING CASH FLOW Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Last 12 SEK M 2023 2023 2023 2023 2024 2024 2024 2024 2025 2024 months Operating income (EBIT) 3,961 6,875 5,409 5,539 5,409 6,071 6,211 6,583 4,308 24,275 23,174 Reversal items affecting comparability 1 225 -1 376 367 183 18 13 43 -54 1,337 21 1,340 Depreciation and amortization 1,055 1,158 1,371 1,590 1,301 1,400 1,380 1,563 1,519 5,645 5,863 Net capital expenditure -516 -572 -604 -727 -429 -596 -655 -383 -737 -2,063 -2,372 Change in working capital -1,111 1,267 1,754 1,927 -2,091 -111 802 1,608 -2,788 208 -488 Interest paid and received -242 -364 -738 -778 -650 -772 -1,032 -797 -754 -3,251 -3,355 Repayment of lease liabilities -352 -363 -409 -420 -402 -456 -453 -485 -511 -1,797 -1,906 Other non-cash items 50 45 27 0 -60 55 44 -25 50 14 124 Operating cash flow 4,069 6,671 7,177 7,315 3,096 5,604 6,341 8,010 2,424 23,052 22,380 Cash conversion 0.84 1.32 1.47 1.50 0.67 1.07 1.18 1.41 0.51 1.10 1.06 CHANGE IN NET DEBT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Last 12 SEK M 2023 2023 2023 2023 2024 2024 2024 2024 2025 2024 months Net debt at beginning of period 31,732 29,336 69,851 68,736 64,109 67,536 68,198 66,927 70,253 64,109 67,536 Operating cash flow -4,069 -6,671 -7,177 -7,315 -3,096 -5,604 -6,341 -8,010 -2,424 -23,052 -22,380 Restructuring payments 109 146 167 190 137 138 150 323 166 748 777 Tax paid on income 726 2,281 2,456 1,825 712 1,490 1,505 1,065 686 4,772 4,746 Acquisitions and divestments 367 40,773 3,783 1,903 2,038 2,182 5,592 3,297 7,670 13,109 18,741 Dividend - 2,666 - 2,666 - 2,999 - 2,999 - 5,999 5,999 Actuarial gain/loss on post-employment benefit oblig. 47 -92 41 12 -142 -96 -50 266 60 -22 180 Change to lease liabilities 254 138 111 125 292 -105 -95 149 261 241 211 Exchange rate differences, etc. 171 1,274 -496 -4,033 3,488 -342 -2,033 3,236 -5,231 4,349 -4,370 Net debt at end of period 29,336 69,851 68,736 64,109 67,536 68,198 66,927 70,253 71,441 70,253 71,441 Net debt/Equity 0.33 0.75 0.71 0.70 0.68 0.68 0.66 0.66 0.70 NET DEBT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK M 2023 2023 2023 2023 2024 2024 2024 2024 2025 Interest-bearing assets -221 -484 -495 -459 -504 -248 -257 -249 -244 Cash and cash equivalents -2,811 -6,665 -1,688 -1,466 -2,437 -3,605 -4,073 -4,504 -4,139 Derivative financial instruments, net 306 15 284 -595 -251 116 -456 26 -948 Pension provisions 1,379 1,415 1,471 1,435 1,283 1,186 1,232 1,478 1,465 Lease liabilities 4,182 5,607 5,641 5,443 6,020 6,001 5,890 6,554 6,304 Interest-bearing liabilities 26,500 69,965 63,523 59,751 63,425 64,748 64,591 66,948 69,003 Total 29,336 69,851 68,736 64,109 67,536 68,198 66,927 70,253 71,441 CAPITAL EMPLOYED AND FINANCING Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SEK M 2023 2023 2023 2023 2024 2024 2024 2024 2025 Goodwill 75,075 117,142 119,006 92,873 99,680 99,317 99,199 106,874 107,281 Other intangible assets 15,539 15,918 15,333 34,831 36,000 36,970 36,463 38,531 35,579 Property, plant and equipment 10,178 11,885 12,111 11,460 12,129 12,134 12,222 12,653 11,684 Right-of-use assets 4,075 5,476 5,501 5,296 5,837 5,789 5,670 6,295 6,068 Other capital employed 14,206 14,277 13,958 12,060 14,534 14,605 14,478 13,019 13,340 Restructuring reserve -1,229 -1,140 -941 -767 -662 -514 -358 -39 -1,130 Capital employed 117,844 163,558 164,969 155,753 167,517 168,300 167,674 177,333 172,822 Net debt 29,336 69,851 68,736 64,109 67,536 68,198 66,927 70,253 71,441 Non-controlling interests 12 10 36 16 12 12 16 10 132 Equity attributable to Parent company´s shareholders 88,496 93,696 96,197 91,629 99,969 100,090 100,731 107,071 101,249 OTHER KEY RATIOS ETC Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 2024 2024 2024 2025 Earnings per share, SEK 2,44 3,22 3,05 3,56 3,11 3,53 3,60 3,85 2,21 Earnings per share, excl IAC, SEK 3,32 3,36 3,31 3,56 3,12 3,54 3,63 3,81 3,20 Shareholders' equity per share, SEK 79,67 84,35 86,60 82,49 90,00 90,11 90,68 96,39 91,15 Return on capital employed 17,4% 17,2% 16,3% 15,6% 14,6% 14,0% 14,2% 14,4% 14,2% Return on equity 16,2% 15,8% 14,7% 15,3% 15,3% 15,2% 15,6% 15,7% 14,5% Net debt/EBITDA 1,2 2,8 2,6 2,3 2,4 2,4 2,3 2,3 2,4 Average number of employees 52,960 53,824 56,289 56,845 61,282 62,538 62,634 62,825 64,460 Average adjusted capital employed 113,480 120,917 132,788 142,611 153,385 164,603 165,649 168,363 172,654 Average number of shares, thousands 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 Items affecting comparability, net of tax -978 -156 -285 10 -13 -10 -33 41 -1,103 1) Excluding items affecting comparability (IAC), which refer to restructuring costs for our tenth Manufacturing Footprint Program (MFP) and exit costs related to the divestment of the Smart Residential business in the U.S. and Canada in 2023. For information about items affecting comparability in 2023 and 2024, please see the Year-end report 2023 and 2024, available on assaabloy.com
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© ASSA ABLOY – Quarterly Report Q1 2025 13 (17) Reporting by division Q1 and 31 Mar SEK M 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Sales, external 6,063 6, 312 10,502 11,137 1,825 1,730 5,398 6,199 11,413 12,563 - - 35,200 37,940 Sales, internal 154 153 30 34 224 206 36 59 29 23 - 472 -475 - - Sales 6,216 6, 464 10,532 11,171 2,048 1,936 5,433 6,258 11,442 12,586 -472 -475 35,200 37,940 Organic growth -3% 0% -1 % 2% -3% -5% -9% 8% 0% 0% - - -2% 2% Acquisitions and divestments 2% 3% 35% 2% -9 % 0% 6% 5% 3% 9% - - 11% 5% Exchange-rate effects 1% 1% 0% 2% -3 % 0% 0% 2% 1% 1% - - 0% 1% Share of earnings in associates - - - - 1 4 - - - 6 - - 1 10 EBIT, excl items affecting comparability 850 894 1, 910 1,915 105 80 839 855 1,944 2,109 -221 -208 5,427 5,645 EBIT margin, excl items affecting comparability 13.7% 13.8% 18. 1% 17.1% 5.1% 4.1% 15.4% 13.7% 17.0% 16.8% - - 15.4% 14.9% Items affecting comparability1 -16 -408 0 -111 -2 -98 - -427 - -124 - -169 -18 -1,337 Operating income (EBIT) 834 486 1, 910 1,804 103 -18 839 428 1,944 1,985 -221 -377 5,409 4,308 Operating margin (EBIT) 13.4% 7. 5% 18.1% 16.1% 5.0% -0.9% 15.4% 6.8% 17.0% 15.8% - - 15.4% 11.4% OPERATING CASH FLOW SEK M Operating income (EBIT) 834 486 1, 910 1,804 103 -18 839 428 1,944 1,985 -221 -377 5,409 4,308 Items affecting comparability1 16 408 0 111 2 98 - 427 - 124 - 169 18 1,337 Depreciation and amortization 240 255 343 435 98 97 243 274 367 443 10 15 1, 301 1,519 Net capital expenditure -108 - 112 -198 -203 61 -50 -89 -146 -91 -233 -4 6 -429 -737 Repayment of lease liabilities -70 -7 3 -69 -112 -33 -33 -46 -55 -180 -230 -5 -8 -402 -511 Change in working capital -453 - 740 -1,121 -1,290 -107 -222 -455 -199 256 -51 -212 -284 -2,091 -2,788 Operating cash flow by division 459 223 865 745 125 - 128 492 729 2,296 2,038 -432 -478 3,806 3,128 Other non-cash items -60 50 -6 0 50 Interest paid and received -650 - 754 -650 -754 Operating cash flow 3,096 2, 424 CAPITAL EMPLOYED SEK M Goodwill 13,750 16, 430 34,437 33,510 5,574 5,107 20,106 24,488 25,814 27,747 - - 99,680 107,281 Other intangible assets 1,464 1, 493 22,528 20,553 1,939 1,711 2,990 3,602 7,045 8,191 33 28 36,000 35,579 Property, plant and equipment 3,264 3, 120 3,326 3,250 1,439 1,208 1,626 1,416 2,432 2,658 41 32 12,129 11,684 Right-of-use assets 991 904 1, 712 1,599 335 287 598 655 2,188 2,521 13 101 5,837 6,068 Other capital employed 2,470 2, 550 3,523 3,436 1,512 1,506 2,434 1,547 3,917 3,307 678 994 14,534 13,340 Adjusted capital employed 21,939 24, 497 65,527 62,349 10,799 9,819 27,753 31,707 41,396 44,424 765 1,156 168,179 173,952 Restructuring reserve -262 - 378 -130 -97 -32 -59 -66 -302 -164 -123 -7 -170 -662 -1,130 Capital employed 21,677 24, 118 65,396 62,251 10,767 9,760 27,687 31,405 41,231 44,301 758 986 167,517 172,822 Return on capital employed 14.9% 15. 7% 13.7% 12.6% 5.9% 5.6% 14.7% 14.1% 20.4% 19.8% - - 14.6% 14.2% Average adjusted capital employed 22,744 22, 962 54,048 65,165 11,136 10,615 26,559 30,005 39,127 43,632 - - 153,385 172,654 Average number of employees 12,225 12, 388 17,772 18,087 6,883 6,696 8,095 8,866 16,031 17,922 275 501 61,282 64,460 1) Excluding items affecting comparability (IAC), which refer to restructuring costs for our tenth Manufacturing Footprint Program (MFP) and exit costs related to the divestment of the Smart Residential business in the U.S. and Canada in 2023. For information about items affecting comparability in 2023 and 2024, please see the Year-end report 2023 and 2024, available on assaabloy.com EMEIA Americas Asia Pacific Technologies Systems Total Global Entrance Other
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© ASSA ABLOY – Quarterly Report Q1 2025 14 (17) Reporting by division Jan-Dec and 31 Dec SEK M 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Sales, external 24,214 24, 447 37,867 44,213 9,133 8,200 22,930 23,955 46,570 49,347 - - 140,716 150,162 Sales, internal 617 651 141 128 1, 151 920 169 224 95 104 -2,173 -2,027 - - Sales 24,831 25, 098 38,009 44,340 10,284 9,120 23,099 24,179 46,665 49,451 -2,173 -2,027 140,716 150,162 Organic growth -2% 0% 6% 2% -2 % -6% 9% -2% 1% -1% - - 3% -1% Acquisitions and divestments 6% 1% 22% 16% 5% -3 % 5% 7% 2% 7% - - 8% 8% Exchange-rate effects 5% 0% 6% -1 % 2% -2% 5% 0% 6% 0% - - 5% 0% Share of earnings in associates - - - - 7 22 11 12 - 11 - - 18 45 EBIT, excl items affecting comparability 3 388 3 552 7 186 8 207 662 619 3 996 4 224 7 807 8 493 - 854 -799 22 185 24 296 EBIT margin, excl items affecting 13,6% 14, 2% 18,9% 18,5% 6,4% 6,8% 17,3% 17,5% 16,7% 17,2% - - 15,8% 16,2% comparability Items affecting comparability1 -551 -48 2 908 67 -27 -40 -2 492 - -133 - -104 - -400 -21 Operating income (EBIT) 2,837 3, 505 10,094 8,274 635 580 1,504 4,224 7,673 8,493 -958 -799 21,785 24,275 Operating margin (EBIT) 11,4% 14, 0% 26,6% 18,7% 6,2% 6,4% 6,5% 17,5% 16,4% 17,2% - - 15,5% 16,2% Operating income (EBIT) 2,837 3, 505 10,094 8,274 635 580 1,504 4,224 7,673 8,493 -958 -799 21,785 24,275 Items affecting comparability1 551 48 -2,908 -67 27 40 2,492 - 133 - 104 - 400 21 Depreciation and amortization 1,055 989 1, 154 1,604 424 401 1,013 1,006 1,484 1,592 44 53 5,174 5,645 Net capital expenditure -627 - 434 -631 -740 -202 63 -378 -440 -576 -483 -6 -29 -2,419 -2,063 Repayment of lease liabilities -276 - 280 -255 -342 -129 -130 -188 -202 -675 -812 -21 -30 -1,543 -1,797 Change in working capital 643 44 726 - 1,148 457 45 -298 -3 2,352 1,228 -44 43 3,836 208 Operating cash flow by division 4,183 3, 872 8,181 7,581 1,213 997 4,145 4,585 10,391 10,017 -881 -763 27,232 26,289 Other non-cash items 123 14 123 14 Interest paid and received -2 122 - 3 251 -2 122 -3 251 Operating cash flow 25,232 23, 052 CAPITAL EMPLOYED SEK M Goodwill 13,232 14, 552 32,382 36,524 5,379 5,582 18,989 21,504 22,891 28,711 - - 92,873 106,874 Other intangible assets 1,366 1, 498 21,652 22,753 1,937 1,863 2,968 3,848 6,876 8,531 32 39 34,831 38,531 Property, plant and equipment 3,166 3, 287 3,037 3,487 1,398 1,331 1,556 1,763 2,260 2,740 43 45 11,460 12,653 Right-of-use assets 976 831 1, 598 1,606 295 309 553 768 1,858 2,671 17 110 5,296 6,295 Other capital employed 2,120 2, 256 2,875 3,636 1,324 1,399 1,827 2,136 3,830 3,180 84 412 12,060 13,019 Adjusted capital employed 20,860 22, 423 61,544 68,006 10,332 10,485 25,891 30,018 37,715 45,833 177 607 156,520 177,373 Restructuring reserve -298 -6 0 -150 -22 -43 9 -89 74 -182 -35 -5 -5 -767 -39 Capital employed 20,562 22, 363 61,395 67,984 10,289 10,494 25,802 30,093 37,533 45,798 172 602 155,753 177,333 Return on capital employed 14,8% 15, 9% 16,3% 12,7% 5,8% 5,8% 15,2% 14,8% 20,3% 20,1% - - 15,6% 14,4% Average adjusted capital employed 22,872 22, 353 44,025 64,462 11,396 10,656 26,295 28,510 38,502 42,249 - - 142,611 168,363 Average number of employees 12,188 12, 212 13,358 17,889 7,099 6,758 7,895 8,651 16,028 17,035 276 279 56,845 62,825 1 For information about items affecting comparability in 2024, please see the Year-end report 2024, available on assaabloy.com Other Total Global Entrance EMEIA Americas Asia Pacific Technologies Systems
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© ASSA ABLOY – Quarterly Report Q1 2025 15 (17) Financial information - Notes NOTE 1 DISAGGREGATION OF REVENUE Sales by continent Q1 SEK M 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Europe 5,375 5,648 17 25 167 145 1,715 1,969 4,550 5,014 -240 -233 11,585 12,567 North America 162 140 9,412 10,098 480 500 2,410 2,937 6,162 6,700 -115 -119 18,511 20,256 Central- and South America 21 22 924 958 12 12 173 140 59 72 -9 -15 1,180 1,190 Africa 226 265 1 2 0 2 174 141 14 21 -13 -9 403 421 Asia 395 352 171 84 747 664 665 804 345 393 -58 -62 2,265 2,234 Oceania 38 39 7 3 642 614 295 266 311 386 -37 -37 1,256 1,271 Total 6,216 6,464 10,532 11,171 2,048 1,936 5,433 6,258 11,442 12,586 -472 -475 35,200 37,940 Sales by product group Q1 SEK M 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Mechanical locks, lock systems and fittings 2,906 2,861 4,530 5,392 1,180 1,111 112 105 2 2 -206 -195 8,524 9,276 Electromechanical and electronic locks 2,034 2,315 2,466 2,703 376 346 5,305 6,121 304 302 -193 -209 10,292 11,579 Security doors and hardware 1,181 1,189 3,512 3,046 451 459 17 32 1,012 1,215 -40 -46 6,132 5,895 Entrance automation 95 99 25 29 41 20 - - 10,124 11,067 -33 -25 10,252 11,189 Total 6,216 6,464 10,532 11,171 2,048 1,936 5,433 6,258 11,442 12,586 -472 -475 35,200 37,940 NOTE 2 BUSINESS COMBINATIONS Consolidated acquisitions 2025 Number of Approx. Month of Acquisition Division Country employees sales in 2024 consolidation 3millID & Third Millenium Global technologies USA & United Kingdom <50 240 2025-01 InVue Global technologies USA 260 1,850 2025-01 Uhlmann & Zacher EMEIA Germany 110 240 2025-01 Wallace & Wallace Entrance systems Canada 160 440 2025-02 GfS EMEIA Germany <50 130 2025-03 Senior Architectural Systems EMEIA United Kingdom 150 680 2025-03 Other TotalSystemsTechnologies EMEIA Asia PacificEMEIA Americas Total EntranceGlobal Americas Asia Pacific Global Entrance Technologies Systems Other
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© ASSA ABLOY – Quarterly Report Q1 2025 16 (17) Financial information - Notes Q1 Year Amounts recognized in the group, SEK M # 2024 2024 2025 Purchase prices Cash paid for acquisitions during the year # 12, 796 2,796 7,449 Holdbacks and deferred considerations for acquisitions during the year # 678 83 880 Adjustment of purchase prices for acquisitions in prior years 1 - 517 -565 29 Total # 12, 957 2,314 8,359 Acquired assets and liabilities at fair value Intangible assets # 2, 662 -329 292 Property, plant and equipment and right-of-use assets # 1, 093 133 158 Other non-current assets # 276 8 -4 5 Inventories # 1, 420 223 580 Current receivables and investments # 1, 556 201 636 Cash and cash equivalents # 532 22 330 Non-current liabilities # - 1,312 -38 -1,039 Current liabilities # - 1,686 -85 -1,379 Total # 4, 541 134 -466 Non-controlling interest in acquired companies - 27 - 138 Goodwill # 8, 443 2,181 8,963 Change in cash and cash equivalents due to acquisitions Cash paid for acquisitions during the year # 12, 796 2,796 7,449 Cash and cash equivalents in acquired subsidiaries # - 532 -22 -330 Paid and received considerations for acquisitions in prior years # - 127 -437 217 Total # 12, 136 2,337 7,336 The acquisition analyses for acquisitions made during the last 12 months are preliminary while reviews are ongoing, and will be concluded within one year of the acquisition date. Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table. During the year, some of the analyzes of acquisitions c losed during 2024 have been completed. Q1 NOTE 3 FAIR VALUE AND CARRYING AMOUNT ON FINANCIAL ASSETS AND LIABILITIES 31 March 2025 Carrying Fair SEK M amount v alue Level 1 Level 2 Level 3 Financial assets Financial assets at amortized cost 27,113 27, 113 Financial assets at fair value through profit and loss 298 298 298 Derivatives - hedge accounting 360 360 360 Derivatives - held for trading 893 893 893 Total financial assets 28,664 28, 664 - 1,253 298 Financial liabilities Financial liabilities at amortized cost 80,593 80, 501 Financial liabilities at fair value through profit and loss 1,881 1, 881 1,881 Lease liabilities 6,304 6, 304 Derivatives - hedge accounting 123 123 123 Derivatives - held for trading 183 183 183 Total financial liabilities 89,083 88, 992 - 306 1,881 31 December 2024 Carrying Fair SEK M amount v alue Level 1 Level 2 Level 3 Financial assets Financial assets at amortized cost 28,345 28, 345 Financial assets at fair value through profit and loss 325 325 325 Derivatives - hedge accounting 316 316 316 Derivative instruments - hedge accounting 103 103 103 Total financial assets 29,090 29, 090 - 419 325 Financial liabilities Financial liabilities at amortized cost 79,541 79, 535 Financial liabilities at fair value through profit and loss 1,362 1, 362 1,362 Lease liabilities 6,554 6, 554 Derivatives - hedge accounting 221 221 221 Derivatives - held for trading 224 224 224 Total financial liabilities 87,903 87, 897 - 445 1,362 Financial liabilities at fair value through profit and loss pertains to deferred D eferred considerations are initially measured on the day of acquisition considerations, i.e. additional payments for acquired companies. The size of a based on management's best estimate regarding future outcomes and deferred consideration is usually linked to the earnings and sales performance belong to level 3 in the hierarchy. in an acquired company during a specific period of time. Financial instruments at fair value at fair value Financial instruments
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© ASSA ABLOY – Quarterly Report Q1 2025 17 (17) Financial information - Parent company Definitions of financial performance measures INCOME STATEMENT IN SUMMARY Year SE K M 2024 2024 2025 Operating income 2,138 - 669 -558 Income before appropriations and tax 6,520 - 956 -834 Net income for the period 7,548 - 731 -664 The Parent company has no items in other comprehensive income BALANCE SHEET IN SUMMARY 31 D ec SEK M 2024 2024 2025 Non-current assets 54,165 54,258 53,905 Current assets 45,662 44,082 45,823 Total assets 99,827 98,340 99,729 Equity 26,661 24,309 25,843 Untaxed reserves 818 1,021 818 Non-current liabilities 39,129 37,524 39,655 Current liabilities 33,219 35,487 33,413 Total equity and liabilities 99,827 98,340 99,729 Q1 31 Mar Organic growth Average adjusted capital employed Change in sales for comparable units after adjustments for Average capital employed excluding restructuring reserves acquisitions, divestments and exchange rate effects. for the last twelve months. Operating margin (EBITDA) Net debt Operating income before depreciation and amortization as a Interest-bearing liabilities less interest-bearing assets. percentage of sales. See the table on net debt for detailed information. Operating margin (EBITA) Net debt/EBITDA Operating income before amortization of intangible assets Net debt at the end of the period in relation to EBITDA for recognized in business combinations, as a percentage of sales. the last twelve months. Operating margin (EBIT) Net debt/Equity ratio Operating income as a percentage of sales. Net debt in relation to equity. Profit margin (EBT) Equity ratio Income before tax as a percentage of sales. Shareholders' equity as a percentage of total assets. Items affecting comparability Shareholders' equity per share Restructuring costs and significant non-recurring operating expenses Equity excluding non-controlling interests in relation to such as revaluation of previously owned shares in associates, number of outstanding shares after any potential dilution. revaluation of inventory in business combinations and goodwill impairment. Return on capital employed Operating cash flow Operating Income (EBIT), excluding Items Affecting Cash Flow from operating activities excluding restructuring Comparability, for the last twelve months as a percentage of payments and tax paid on income minus net capital expenditure average adjusted capital employed. and repayment of lease liabilities. Return on equity Cash conversion Net income attributable to parent company's shareholders Operating cash flow in relation to income before tax excluding for the last twelve months as a percentage of average equity items affecting comparability. at tributable to parent company's shareholders for the same period. Net capital expenditure Investments in, less disposals of, intangible assets and Earnings per share before and after dilution property, plant and equipment. Net income attributable to parent company's shareholders divided by weighted average number of outstanding shares. Depreciation and amortization None of the Group's outstanding long-term incentive programs Depreciation, amortization and impairment of intangible assets, are expected to result in significant dilution in the future. property, plant and equipment and right-of-use assets. Earnings per share before and after dilution and excluding Capital employed items affecting comparability Total assets less interest-bearing assets and non-interest- Net income attributable to parent company's shareholders bearing liabilities including deferred tax liability. excluding items affecting comparability, net of tax, divided by weighted average number of outstanding shares. None of the Group's outstanding long-term incentive programs are expected to result in significant dilution in the future. To check how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company’s Annual Report . The Annual Reports for the years 1994 to 2024 appear on the company’s website.