Report on operations 2010

Report on operations 2010

• Inflow of orders: SEK 8,113 million (8,424)

• Net sales: SEK 7,973 million (8,825)

• Operating earnings: SEK 843 million (529)

• Net earnings: SEK 598 million (345)

• Cash flow from operating activities after tax: SEK 872 million (1,416)

• Earnings per share: SEK 22.15 (12.78)

• Proposed dividend: SEK 10.00 (9.00)

President and CEO Peter Aru:
“The inflow of orders rose by three percent in 2010. Demand increased in
the fourth quarter with North America and Asia enjoying a particularly
good trend. During the year, we completed our projects to make our
business more efficient, further developed our sales strategy and
improved the supply chain. We also launched several new products and
solutions. The operating margin improved during the year to 10.6 percent
compared with 6.0 percent in 2009.”

Results - complete report
Please see the enclosed pdf document for the complete report where all
tables and summaries are found.
The report is available at www.cardo.com (http://www.cardo.com/)

Offer from ASSA ABLOY
On December 13 2010, ASSA ABLOY AB announced a public offer to the
shareholders of Cardo to transfer all of their shares in Cardo to ASSA
ABLOY for a payment of SEK 420 in cash for each share in Cardo.
According to the press release whereby the offer was announced, most of
the major shareholders in Cardo, including L E Lundbergföretagen AB
(publ), together holding the equivalent of approximately 63.6 percent of
the shares in Cardo, have entered into agreements with ASSA ABLOY to
sell their shares in Cardo to ASSA ABLOY. The transfers are, as is the
consummation of the offer, conditional only on the necessary approvals
being obtained from the relevant competition authorities. According to
the adjusted timetable announced by ASSA ABLOY on February 2 2011, the
acceptance period is expected to commence on February 10 and end on
March 11 2011. Settlement is expected to commence on March 18 2011.

Fourth quarter 2010
The inflow of orders amounted to SEK 2,027 million (2,001), up 8 % after
adjustment for the effects of exchange rate movements. During the fourth
quarter, the inflow of orders rose in all markets except the Middle
East. The rise was greatest in North America and Asia. Service sales
were on a par with the previous year.

Net sales amounted to SEK 2,380 million (2,522), unchanged compared with
the previous year adjusted for the effects of exchange rate movements.

Operating earnings amounted to SEK 433 million (218). Operating earnings
were charged with costs of a non-recurring nature of SEK 10 million
(169). These costs are allocated as cost of goods sold of SEK 0 million
(76) and selling and administrative expenses of SEK 10 million (93).
Operating earnings for 2010 include a capital gain on the disposal of a
piece of real estate in the Cardo Entrance Solutions division amounting
to SEK 14 million.

Full year 2010
The inflow of orders amounted to SEK 8,113 million (8,424), up 3 % after
adjustment for the effects of exchange rate movements. The inflow of
orders rose in all markets except for the Middle East. The rise was
greatest in Latin America and Asia.

Net sales amounted to SEK 7,973 million (8,825), down 4 % adjusted for
the effects of exchange rate movements.

Operating earnings amounted to SEK 843 million (529). Operating earnings
were charged with costs of a non-recurring nature of SEK 62 million
(235), principally to adapt production activities in the Cardo Flow
Solutions division. These costs are allocated as cost of goods sold of
SEK 41 million (97) and selling and administrative expenses of SEK 21
million (138). The savings effect amounted to approximately SEK 10
million in 2010, and it is expected that a full annual savings effect of
SEK 25-30 million will be achieved from the second quarter of 2011. The
restructuring costs fully impact cash flow, whereof SEK 10 million was
charged to 2010.

Operating earnings for 2010 also include a capital gain of SEK 14
million on the disposal of a piece of real estate in the Cardo Entrance
Solutions division.

The nomination committee's proposal for the board of Cardo
With regard to the public offer to the shareholders in Cardo that ASSA
ABLOY announced on December 13 2010, the nomination committee has let it
be known that its proposal for the board of Cardo will be presented on a
later occasion, but no later than in connection with the Annual General
Meeting 2011.

Proposed dividend
The Board proposes declaring a dividend to the shareholders of SEK 10.00
(9.00) per share with the record day being April 7 2011. This dividend
requires a total of SEK 270,000,000. Should the Annual General Meeting
resolve on dividend in accordance with the Board's proposal, the price
of SEK 420 per share that ASSA ABLOY has offered the shareholders in
Cardo, within the framework of the public offer that ASSA ABLOY
announced on December 13 2010, will be reduced by an equivalent amount
per share.

Annual General Meeting
The Annual General Meeting will be held in Malmö, Sweden, on Monday,
April 4 2011 at 5.00 p.m.

Annual report
The annual report for 2010 will be presented during the week beginning
March 14 2011, on Cardo's website at
www.cardo.com (http://www.cardo.com/). Printed annual reports will be
sent to those shareholders and others who have specially indicated that
they wish to receive this publication by ordinary mail.

Invitation to conference today February 4 at 10.00 a.m.
Cardo's President and CEO Peter Aru will comment on the report on
operations at a conference today at 10.00 a.m. at Operaterrassen in
Stockholm. Notification of intention to attend may be made at
www.financialhearings.com (http://www.financialhearings.com/) or via
e-mail to hearing@financialhearings.com. It will also be possible to
take part and ask questions via telephone number +46 (0)8 5051 3794. The
conference may also be followed via a webcast at www.cardo.com or
www.financialhearings.com (http://www.financialhearings.com/), where you
will also be able to listen and see the presentation slides afterwards.
The conference will be held in Swedish.

Financial calendar 2011
April 4, Annual General Meeting in Malmö
May 5, Interim Report January - March
August 16, Interim Report January - June
November 3, Interim Report January - September

For further information, please contact:
Peter Aru, President and CEO, tel +46 10 4747 401
Ulf Liljedahl, CFO and Executive Vice President, tel +46 10 4747 402
Maria Bergving, SVP Communications and Investor Relations,
tel +46 10 4747 405, maria.bergving@cardo.com (maria.bergving@cardo.com)