Slide 1: Loomis Year-end Report January – December 2011
Loomis Year-end Report January – December 2011 President and CEO: Lars Blecko Stockholm February 2, 2012
Slide 2: Contents
Contents • Highlights Q4 2011 • Segments • Financial highlights • Going forward • Q&A 2
Slide 3: Highlights Q4 2011
Highlights Q4 2011 • Organic growth 2 percent (0) • Improved market share as well as pricing • Real revenue growth 8 percent (0) • Successful client retention in acquisitions • Operating margin 9.2 percent (8.6) • Integration of Pendum beginning to provide positive margin impact • Significant EPS gr
Slide 4: Statement of income
Highlights Statement of income Statement of income 2011 2010 2011 2010 MSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec Revenue 2,881 2,691 10,973 11,033 Real growth, % 8 0 7 -1 Organic growth, % 2 0 1 -1 Operating income (EBITA) 266 232 912 882 Operating margin, % 9.2 8.6 8.3 8.0 Amortization -7 -4 -21 -17 Acq
Slide 5: Europe Q4 2011
Segments Europe Q4 2011 Revenue development Quarters, MSEK Rolling 12, MSEK 2 500 10 000 • Organic growth 3 percent (0) 2 000 8 000 • Positive organic growth in majority of markets 1 500 6 000 – Euro notes increased >5 percent 1 000 4 000 • HSBC contract in the UK 500 2 000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 6: USA Q4 2011
Segments USA Q4 2011 Revenue development Quarters, MUSD Rolling 12, MUSD 180 900 160 800 • Organic growth 1 percent (-1) 140 700 120 600 – Impact from increased fuel surcharges 100 500 1 percent 80 400 60 300 40 200 • Stabilized volumes, but no real recovery 20 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Operating margin development
Financial highlights Operating margin development 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011 Quarters Rolling 12 7
Slide 8: The strategy
Financial highlights The strategy Market presence + Comprehensive solutions + Operational excellence = Growth Current markets Change of Mix Price Top line Branch Margin New markets Risk 8
Slide 9: Strategy and margin drivers
Financial highlights Strategy and margin drivers Strategy Activities Q4 margin impact Market presence Current markets • Integration of Pendum New markets • Acquisition in Czech • Acquistion in Turkey Comprehensive Change of mix • Record sales in Q4 of solutions Loomis SafePoints • CMS in US grew 9
Slide 10: Strategy and margin drivers
Financial highlights Strategy and margin drivers Strategy Activities Q4 margin impact Operational Price • Price increases above excellence wage increases (%) Branch • Increase in number of performing Branches Risk • Lower than prior years 10
Slide 11: Financial goals and dividend policy
Financial highlights Financial goals and dividend policy % 12 EBITA Annual operating profit margin (EBITA) 8 8,0 8,3 10% at latest 2014 4 6,6 7,0 0 2008 2009 2010 2011 % 150 Cash 100 conversion Operating Cashflow/EBITA > 85% 50 94 106 77 59 0 2008 2009 2010 2011 2,5 2 Net 1,5 Net Debt/EBITDA not exc
Slide 12: Going forward
Going forward Market presence • Pendum integration continues, has started to provide positive margin impact • Oregon Armored Service Inc. in the US • Efectivox in Spain • Evaluation of acquisition targets in both existing and new markets Comprehensive solutions • Increase in number of CMS outsourcin
Slide 13: Creating value
Going forward Creating value Growing Growing market market Strong Strong cash cash flow flow Turnaround Turnaround with with with with strong strong and and attractive attractive potential potential positions positions dividend dividend >5% growth 3.0 percentage 39–53% 2011 points increased dividend
Slide 14: Q&A
Q&A
Slide 15: Thank you for listening!
Thank you for listening! www.loomis.com