For investors
ASSA ABLOY's investment story is built on more than 25 years of successful growth, which has turned ASSA ABLOY into a global leader in access solutions.
ASSA ABLOY as an investment
We are the global leader in access solutions. Since ASSA ABLOY was founded in 1994, we have created significant customer and shareholder value by continuously optimizing our production and developing new, innovative products that meet our customers’ needs and demands. Below are the main reasons why we create customer and shareholder value.
Good industry to be in
We are subject to underlying strong megatrends supporting growth and demand for our products. These include increased demand for security and sustainable buildings, urbanization, digitalization, changing codes and continuous changes in local market regulations. Our customer offering is aligned with the fundamental growth trends and a usually steady aftermarket makes us less vulnerable to the cyclical demand affecting many other industries.
Consistent profitable growth
We have a long track record of profitable growth. Our currency adjusted revenue has grown by close to 9% annually during the last ten years and the adjusted EBIT margin has been stable at close to 16%, when excluding the year of the pandemic. We continue to focus on growing through customer relevance and being cost efficient in everything we do, which enables us to deliver consistent profitable growth. The shift to electromechanical products also enables us to continue to grow in a profitable way long-term.
Leading market position
We have the largest installed base and through our employees the deepest know-how of locks and different access solutions in the world, which is continuously maintained and upgraded with new solutions. Two thirds of our revenue is generated from the aftermarket, which provides us with a stable customer and revenue base. This makes ASSA ABLOY less vulnerable to the cyclical demand that affects many other industries
Investing in innovation
We invest about 4% of our revenue in R&D. Given the size of our business, this gives us a strong competitive advantage, both short and long term. Our innovation capacity is based on our common platforms and our the global reach but local competence of our innovation organization. The target for products launched in the past three years is to be 25% of our total sales.
Strong acquisition record
We have acquired close to 400 companies globally since ASSA ABLOY was established in 1994. In many cases, the businesses are leading access providers in their respective market with well-established customer bases and brands. After realizing synergies, we grow the businesses and increase their profitability and margins. This strategy has proven successful, and our acquired businesses have after integration generated significant value.
Strong brand portfolio
There is considerable value in our well-known and trusted brands that play an important role in creating loyalty and differentiation. We use a multi-brand strategy to combine global and local strengths. ASSA ABLOY is the Group and employer brand and is increasingly becoming the leading commercial brand for door, locks, and related services. We also have strong master brands across our core businesses. These include Yale, one of the world's best-known residential lock brands, and HID, which is a leader in secure identities. In total, there are more than 200 brands within the Group that help us create and keep loyal customers across different markets and regions.
Operational efficiency
Our production is structured around local assembly lines close to the customer, adapted according to the local standards, with some strategic components concentrated to larger plants. This enables us to quickly supply our products efficiently to our customers. We also continue to optimize our supply chain, product setup and footprint and work with lean processes and automation.
Leading sustainable solutions
Our ambition is to lead our industry towards a more sustainable future. We committed to science-based targets in 2020 and these were ratified in 2022. This further improves our competitiveness and provides sound business production and product development incentives. When we develop new products, our ambition is to minimize their environmental impact and embodied carbon footprint, while maximizing sustainability attributes, such as energy efficiency during the products’ in-use phase and recycling once they reach their end of life.
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