28 Oct 2005

Q & A new President and CEO

Q&A with ASSA ABLOY's new President and CEO

How does it feel to be appointed President and CEO of ASSA ABLOY?

It feels wonderful! I have had the advantage of working in environments that have given me a lot of experience. I am looking forward to taking up my position as CEO of ASSA ABLOY.

You are a relatively unknown person. What can you bring to ASSA ABLOY? Why do you think that you in particular were chosen?

I have broad and deep experience of working in manufacturing industry in a multinational environment.

In every job I’ve done I have delivered good results and I have experience of management in both good and bad times.

I work and think strategically and am effective at motivating and achieving change. I care about colleagues’ personal development and am good at helping them to grow.

As a divisional head at Atlas Copco I led a large division to very high profitability against worldwide competition. In my job as President of Nilfisk-Advance, I transformed a company that was making a loss of SEK 100 M and had no organic growth into one with a leading position in its industry, good organic growth and a profit of nearly SEK 500 M.

I also have experience of developing parallel and competing brands and of having many subsidiaries active in both consumer and industrial markets. I know that this experience will be put to good use at ASSA ABLOY.

What is it that attracts you to the job of CEO of ASSA ABLOY?

It is really exciting to take on the responsibility for a leading worldwide company operating in a market with a lot of potential – security – in a company with strong brands and a good reputation. The current 10% market share allows for real growth.

Having the Head Office located in Stockholm also means that I and my family can return to our home city after working abroad for 16 years.

Becoming CEO of ASSA ABLOY is a substantial step-up in size to a listed company, and puts you firmly in the spotlight. Are you prepared for what that can mean?

I am accustomed to complex companies from my time at both Atlas Copco and Nilfisk-Advance.

Nilfisk-Advance consists of 65 companies in 40 countries with a number of brands directed at both consumer and industrial markets. ASSA ABLOY is about four times as big but has a similar structure.
It is new for me to be in the Swedish media spotlight. It will be challenging, but I have had some previous experience since I come from a relatively small industry with market leading position and where I often appeared in trade magazines and even from time to time in Danish newspapers.

NKT, which owns Nilfisk-Advance, is also a listed company. Nilfisk-Advance is NKT’s largest subsidiary and has frequently been the focus of analysts’ meetings. This has prepared me for the new role that faces me as CEO of ASSA ABLOY.

What will distinguish you as CEO?

We will maintain our established strategy to reach on average at least 5% organic growth coupled with complementary acquisitions in existing and new markets. We estimate our current market share at about 10%. We can become much larger.

Profitability should be steadily improved, the objective of reaching 16-17% by 2008 remains.

I will be doing a lot of listening, since ASSA ABLOY works in an industry that is new to me and I have a lot to learn. The Company is highly successful at present and my intention is to make use of the knowledge and the managers currently working there to the greatest possible extent.

I am a strong believer in innovation and product development as strategic components in a company’s development. These form the foundation for long-term success and are the basis of organic growth.

What will distinguish you as the new CEO of ASSA ABLOY?

I am new to the Company and need to familiarize myself with the industry. That means that senior managers will have to take on more of the load initially so that we don’t lose any momentum.

I am very profit oriented and will focus on a limited number of key ratios. It is vital that we maintain a steady pace of growth and that we realize the potential for improved profitability that exists on the cost side.

Other important issues are to maintain a steady pace in the development of new products in all product areas, and to develop product platforms that can be exploited throughout the world.

I am good at delegating, fair and consistent and I think long-term. Knowing the rules of the game motivates people. I believe in giving a lot of responsibility to my colleagues and follow up on the goals they have been assigned to achieve.

Why did your predecessor have to leave the Company?

The Press Release covers that. I have no further information.

Does it not worry you that Bo Dankis had to leave after so short a time?

I have always been successful in the past and I am convinced that ASSA ABLOY will be a success too.

ASSA ABLOY has no women in the Executive Team. Is that something that concerns you?

There are relatively few women in the manufacturing industry generally, which means that the recruitment base is small. It is my ambition to promote women who wants to take on greater responsibility.

What will you do as the new CEO?

I will continue to develop and build on the successful strategy that already exists in the Company. It is too early for me to say more than that at present. I need to familiarize myself with the business first.

In the Schörling/Douglas companies, senior management have always been strongly encouraged to take a stake in their companies and most CEOs have had significant shareholdings. What do you intend to do?

I have shares in ASSA ABLOY since quite some time. I expect to get the possibility to invest in options under normal market conditions at some later date.

What will your salary be?

My remuneration package is in line with market conditions and is comparable with that of my predecessor.

Describe yourself

I am a curious person with a lot of drive and energy. I am interested in business in general and am always keen to gain deeper information about markets and products.

I ‘m good with numbers, business logic and see the big picture.

I think strategically and am good at transforming strategy into practice.

I have become better at listening and have good at choosing the right colleagues and make people grow with the job.

I am people’s person, and work well with people who have different personalities and talents from me.

I dislike people who conceal problems or deliberately block decisions once made.

There are a lot of positives there. What are your weak points?

I should celebrate successes more often. My strong drive to always improve means that I sometimes forget to celebrate victories.

I am an impatient person and want to see quick results. The right solutions sometimes take time and I need to be more patient in such situations.

When I was younger I was not so good at listening. I have improved and I think I’m quite good at it today. It is an important factor in motivating people.

For how long did you discuss the CEO’s job at ASSA ABLOY?

It was a very fast process. It took about a month but was an intensive process.

ASSA ABLOY is a company that has grown through acquisitions. Will that continue under your leadership?

Growing through acquisitions is an important complement to organic growth. It is a good way to get market presence more quickly where the market share is small. Acquisitions can also be a mean to get access to new products and technologies.

The accounts show a large item of goodwill. What should happen to it?

We have a strong cash flow. Our profitability and return on capital employed are good. The amount of goodwill we have represents no problem.

Will you be carrying out an early restructuring program when you start at ASSA ABLOY?

The Company’s third-quarter report shows that the current rate of development is good. My impression is that ASSA ABLOY is a well-managed company.

Read the press release