Assa Abloy

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Assa Abloy is a global leader in door opening solutions. The company offers mechanical & electromechanical locks, cylinders & security doors, electronic access & identity as well as entrance automation. Assa Abloy is particularly well positioned in the rapidly growing electromechanical security sector. Since the Group was founded in 1994, Assa Abloy has grown from a regional company to an international Group with about 46,000 employees and acquired more than 200 companies.

Due to its high market penetration, Assa Abloy has a large installed base. As a result, 66% of Assa Abloy’s sales are generated from aftermarket, which provide a more stable source of revenues compares to sales from new construction. 75% of the Groups sales are towards commercial and institutional customers with a higher demand for electronic products and complex solutions.

Sales to emerging markets constitute c. 25% and have grown > 4x over the last 9 years. Furthermore, Assa Abloy places high emphasis on innovation. In 2015, 31% of sales were generated from new products, and in 2013 and 2014, the U.S. business magazine Forbes ranked ASSA ABLOY as one of the world's 100 most innovative companies.

In terms of future growth, Assa Abloy has an annual growth target of 10%, evenly split between organic and acquired growth. The company has defined the following key growth drivers;

- Urbanisation

- Rapid new shift to new technologies

- Increased wealth

- Urbanization

- Change of applications and codes / increased focus on security

Assa Abloy boasts an impressive financial track record: During the past five years sales have increased by 25 percent, operating income with 20 percent and earnings per share with 36 percent. However, the future development remains to be seen.

The company has crafted a well-articulated equity story, which can read here: http://www.assaabloy.com/en/com/investors/why-invest-in-assa-abloy/