Slide 1: Loomis Q1 2013 Presentation
Loomis Q1 2013 Presentation President and CEO: Lars Blecko Stockholm, May 7, 2013
Slide 2: Contents
Contents • Highlights • Segments • Financials • Strategy • Summary • Q&A 2
Slide 3: Highlights Q1 2013
Highlights Q1 2013 • Operating margin 8.0 percent (7.5) • Improved results attributable to continuing efficiency improvements • Negative calendar effect on organic growth • Important CMS contract with a major US bank • Increasing number of performing branches • Well on our way to reach full year tar
Slide 4: Operating margin development
Highlights Operating margin development 4
Slide 5: Operating margin development
Highlights Operating margin development 5
Slide 6: Europe Q1 2013
Segments Europe Q1 2013 Revenue development • Operating margin 9.0 percent (8.8) • Organic growth -3 percent (3) • Negative calendar effect • Lower retail volumes in certain countries Operating margin development • Strong growth in Sweden • Restructuring of the operations in UK • Loomis SafePoint® c
Slide 7: USA Q1 2013
Segments USA Q1 2013 Revenue development • Operating margin 8.7 percent (8.0) • Significant operational efficiencies achieved • Organic growth 0 percent (3) • CMS agreement with major US bank Operating margin development • Final repayment (USD 6.3m) from Pendum • Increased proportion of CMS 7
Slide 8: USA Q1 2013 - Revenue development by service line
Segments USA Q1 2013 Revenue development by service line 8
Slide 9: Statement of income
Financials Statement of income Statement of income 2013 2012 2011 SEK m Jan-Mar Jan-Mar Jan-Mar Revenue 2,706 2,822 2,526 Real growth, % -1 9 1 Organic growth, % -2 3 0 Operating income (EBITA) 218 212 179 Operating margin, % 8.0 7.5 7.1 Amortization -7 -6 -4 Acquisition related costs and revenue 36
Slide 10: Statement of income
Financials Statement of income Statement of income 2013 2012 2011 SEK m Jan-Mar Jan-Mar Jan-Mar Revenue 2,706 2,822 2,526 Real growth, % -1 9 1 Organic growth, % -2 3 0 Operating income (EBITA) 218 212 179 Operating margin, % 8.0 7.5 7.1 Amortization -7 -6 -4 Acquisition related costs and revenue 36
Slide 11: Statement of income
Financials Statement of income Statement of income 2013 2012 2011 SEK m Jan-Mar Jan-Mar Jan-Mar Revenue 2,706 2,822 2,526 Real growth, % -1 9 1 Organic growth, % -2 3 0 Operating income (EBITA) 218 212 179 Operating margin, % 8.0 7.5 7.1 Amortization -7 -6 -4 Acquisition related costs and revenue 36
Slide 12: Statement of income
Financials Statement of income Statement of income 2013 2012 2011 SEK m Jan-Mar Jan-Mar Jan-Mar Revenue 2,706 2,822 2,526 Real growth, % -1 9 1 Organic growth, % -2 3 0 Operating income (EBITA) 218 212 179 Operating margin, % 8.0 7.5 7.1 Amortization -7 -6 -4 Acquisition related costs and revenue 36
Slide 13: Cash flow key figures
Financials Cash flow key figures Cash flow key figures 2013 2012 2011 Jan-Mar Jan-Mar Jan-Mar DSO 38 39 39 Capex / depreciation ratio 0.5 0.9 0.7 Operating cash flow / EBITA 26% 27% 43% 13
Slide 14: The strategy
Strategy The strategy Market presence + Comprehensive solutions + Operational excellence = Growth Current markets Change of Mix Price Top line Branch Margin New markets Risk 14
Slide 15: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q1 margin impact Market presence Existing markets • Recent acquisitions are fully integrated New markets • Acquisitions in Turkey and Argentina Comprehensive Change of mix • Continued success of solutions Loomis SafePoint® • CMS growth in US 1
Slide 16: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q1 margin impact Operational Price • Price increases % above excellence wage increases % Branch • Increased number of performing branches Risk • Continued improvement in cost of risk 16
Slide 17: Analysis of the Branches
Strategy Analysis of the Branches 17
Slide 18: Branches - Karlstad case study
Strategy Branches - Karlstad case study Revenue Omsättning Result Resultat 2006 2007 2008 2009 2010 2011 2012 18
Slide 19: Karlstad case study – Success factors
Strategy Karlstad case study – Success factors Route Renegotiation of Investments Attendance Accountability optimization supplier agreements New premises, Increased Management held Optimization Renegotiation vehicles and key attendance by accountable for resulted in 12% resulted in decrease system t
Slide 20: Well on our way towards financial goals
Summary Well on our way towards financial goals % 12 Operating 8 Annual operating margin (EBITA) 10% 8,0 8,3 9,0 4 6,6 7,0 margin by latest 2014 0 2008 2009 2010 2011 2012 % 150 100 Cash flow Operating Cash flow / EBITA > 85% 50 94 106 77 84 59 0 2008 2009 2010 2011 2012 2,0 1,5 Net Debt / Net Debt
Slide 21: Q&A
Q&A
Slide 22: Thank you for listening!
Thank you for listening! www.loomis.com