Slide 1: Loomis Interim Report January – June 2013
Loomis Interim Report January – June 2013 President and CEO: Lars Blecko Stockholm August 1, 2013
Slide 2: Contents
Contents • Highlights Q2 2013 • Segments • Financials • Strategy • Summary • Q&A 2
Slide 3: Highlights Q2 2013
Highlights Q2 2013 • Organic growth 2 percent (-1) • Significant contract wins • Operating margin 9.8 percent (7.8) • Increasing number of performing branches • Strong cash flow, cash conversion 76 percent (56) • Well on our way to reach full year target of 10% operating margin by the latest 2014 3
Slide 4: Operating margin development
Highlights Operating margin development 4
Slide 5: Operating margin development
Highlights Operating margin development 5
Slide 6: Europe Q2 2013
Segments Europe Q2 2013 Revenue development • Organic growth 2 percent (-2) • Strong revenue growth in Sweden and Turkey • Lower volumes in parts of southern Europe due to the macroeconomic situation • Operating margin 10.4 percent (9.0) Operating margin development • Continued efficiency improvemen
Slide 7: USA Q2 2013
Segments USA Q2 2013 Revenue development • Organic growth 2 percent (-1) • Roll-out of CMS contract with leading US bank • Operating margin 11.6 percent (8.4) • Decreased medical claims - positive impact SEK 25m • Number of performing branches continues to increase Operating margin development • Inc
Slide 8: USA Q2 2013
Segments USA Q2 2013 Revenue development by service line 8
Slide 9: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,832 2,898 5,538 5,720 Real growth, % 2 3 1 6 Organic growth, % 2 -1 0 1 Operating income (EBITA) 276 225 494 437 Operating margin, % 9.8 7.8 8.9 7.6 Amortization -7 -7 -14 -13 Acquis
Slide 10: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,832 2,898 5,538 5,720 Real growth, % 2 3 1 6 Organic growth, % 2 -1 0 1 Operating income (EBITA) 276 225 494 437 Operating margin, % 9.8 7.8 8.9 7.6 Amortization -7 -7 -14 -13 Acquis
Slide 11: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,832 2,898 5,538 5,720 Real growth, % 2 3 1 6 Organic growth, % 2 -1 0 1 Operating income (EBITA) 276 225 494 437 Operating margin, % 9.8 7.8 8.9 7.6 Amortization -7 -7 -14 -13 Acquis
Slide 12: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,832 2,898 5,538 5,720 Real growth, % 2 3 1 6 Organic growth, % 2 -1 0 1 Operating income (EBITA) 276 225 494 437 Operating margin, % 9.8 7.8 8.9 7.6 Amortization -7 -7 -14 -13 Acquis
Slide 13: Cash flow key figures
Financials Cash flow key figures Cash flow key figures 2013 2012 2013 2012 Apr-Jun Apr-Jun Jan-Jun Jan-Jun DSO 39 39 39 39 Investment / depreciation ratio 1.0 0.8 0.7 0.8 Operating cash conversion, % 76 56 54 42 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 Q2 margin impact Market presence Existing markets • All acquisitions are fully integrated New markets • Acquisitions in Turkey and Argentina Comprehensive Change of mix • Continued development solutions of Loomis SafePoint® • CMS growth in US
Slide 16: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q2 margin impact Operational Price • Price increases % above excellence wage increases % Branch • Increased number of performing branches Risk • Significant improvement in cost of risk 16
Slide 17: Analysis of the Branches
Strategy Analysis of the Branches 17
Slide 18: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q2 margin impact Operational Price • Price increases % above excellence wage increases % Branch • Increased number of performing branches Risk • Significant improvement in cost of risk 18
Slide 19: Well on our way towards financial goals
Summary Well on our way towards financial goals Operating Annual operating margin (EBITA) 10% margin by latest 2014 Cash flow Operating Cash flow / EBITA > 85% Net Debt / Net Debt / EBITDA not exceeding 2.5 EBITDA SEK % 6,00 60 Annual dividend of 40–60 % of net 4,00 40 Dividend income 2,00 2,25 2,65
Slide 20: Q&A
Q&A
Slide 21: Thank you for listening!
Thank you for listening! www.loomis.com