Slide 1: Loomis Interim Report January – September 2013
Loomis Interim Report January – September 2013 President and CEO: Jarl Dahlfors Stockholm November 6, 2013
Slide 2: Contents
Contents • Highlights Q3 2013 • Segments • Financials • Strategy • Summary • Q&A 2
Slide 3: Highlights Q3 2013
Highlights Q3 2013 • Organic growth 4 percent (-2) • Contracts won end of 2012 and in 2013 • Operating margin 10.7 percent (9.8) • Increasing number of performing branches • Rolling 12 months operating margin 9.9% • Well on our way to reach full year target of 10% operating margin by the latest 2014
Slide 4: Operating margin development
Highlights Operating margin development 12% 10% 8% 6% 4% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 Quarters Rolling 12 4
Slide 5: Operating margin development
Highlights Operating margin development 12% 10% 8% 6% 4% 2% 0% 08 09 10 11 12 13 08 09 10 11 12 13 08 09 10 11 12 13 08 09 10 11 12 Q1 Q2 Q3 Q4 5
Slide 6: Europe Q3 2013
Segments Europe Q3 2013 Revenue development Quarters, SEK m R12, SEK m 2 500 10 000 • Organic growth 4 percent (-2) 2 000 8 000 1 500 6 000 • Strong revenue growth in Sweden, Norway 1 000 4 000 and Turkey 500 2 000 • Operating margin 13.7 percent (12.1) 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: USA Q3 2013
Segments USA Q3 2013 Revenue development Quarters, USD m R12, USD m 180 900 • Organic growth 4 percent (-2) 160 800 140 700 120 600 • Increased CMS revenue 100 500 80 400 60 300 • Operating margin 7.9 percent (8.5) 40 200 20 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 • Start-up
Slide 8: USA Q3 2013
Segments USA Q3 2013 100% 80% 75% 72% 60% 83% 81% 78% 78% 40% 20% 25% 28% 17% 19% 22% 22% 0% Q3 08 Q3 09 Q3 10 Q3 11 Q3 12 Q3 13 CMS CIT Revenue development by service line 8
Slide 9: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 SEK m Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,897 2,788 8,436 8,507 Real growth, % 4 0 2 4 Organic growth, % 4 -2 1 0 Operating income (EBITA) 311 272 805 709 Operating margin, % 10.7 9.8 9.5 8.3 Amortization -7 -8 -21 -21 Acqu
Slide 10: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 SEK m Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,897 2,788 8,436 8,507 Real growth, % 4 0 2 4 Organic growth, % 4 -2 1 0 Operating income (EBITA) 311 272 805 709 Operating margin, % 10.7 9.8 9.5 8.3 Amortization -7 -8 -21 -21 Acqu
Slide 11: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 SEK m Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,897 2,788 8,436 8,507 Real growth, % 4 0 2 4 Organic growth, % 4 -2 1 0 Operating income (EBITA) 311 272 805 709 Operating margin, % 10.7 9.8 9.5 8.3 Amortization -7 -8 -21 -21 Acqu
Slide 12: Statement of income
Financials Statement of income Statement of income 2013 2012 2013 2012 SEK m Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,897 2,788 8,436 8,507 Real growth, % 4 0 2 4 Organic growth, % 4 -2 1 0 Operating income (EBITA) 311 272 805 709 Operating margin, % 10.7 9.8 9.5 8.3 Amortization -7 -8 -21 -21 Acqu
Slide 13: Cash flow key figures
Financials Cash flow key figures Cash flow key figures 2013 2012 2013 2012 Jul-Sep Jul-Sep Jan-Sep Jan-Sep DSO 37 38 37 38 Investment / depreciation ratio 1.0 1.2 0.8 1.0 Operating cash conversion, % 119 133 79 77 13
Slide 14: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q3 margin impact Market presence Acquisitions • All acquisitions are fully integrated Major contract wins • Sweden, Norway • US, start-up new CMS Comprehensive Change of mix • Increased number solutions of Loomis SafePoint® • CMS growth in US
Slide 15: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q3 margin impact Market presence Acquisitions • All acquisitions are fully integrated Major contract wins • Sweden, Norway • US, start-up new CMS Comprehensive Change of mix • Increased number solutions of Loomis SafePoint® • CMS growth in US
Slide 16: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q3 margin impact Market presence Acquisitions • All acquisitions are fully integrated Major contract wins • Sweden, Norway • US, start-up new CMS Comprehensive Change of mix • Increased number solutions of Loomis SafePoint® • CMS growth in US
Slide 17: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q3 margin impact Operational Price • Price increases % above excellence wage increases % Branch • Increased number of performing branches Risk • Continued improvement in cost of risk 17
Slide 18: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q3 margin impact Operational Price • Price increases % above excellence wage increases % Branch • Increased number of performing branches Risk • Continued improvement in cost of risk 18
Slide 19: Analysis of the Branches
Strategy Analysis of the Branches 100% 90% 23% 22% 20% 22% 26% 24% 28% 26% 26% 24% 30% 30% 80% 70% 60% 50% 40% 77% 78% 80% 78% 74% 76% 72% 74% 74% 76% 70% 70% 30% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 3RD QUARTER YEAR TO DATE Performing Non-performing 19
Slide 20: Strategy and margin drivers
Strategy Strategy and margin drivers Strategy Activities Q3 margin impact Operational Price • Price increases % above excellence wage increases % Branch • Increased number of performing branches Risk • Continued improvement in cost of risk 20
Slide 21: Well on our way towards financial goals
Summary Well on our way towards financial goals % 12,0 Operating Annual operating margin (EBITA) 10% 8,0 8,0 8,3 9,0 9,9 4,0 7,0 margin by latest 2014 0,0 2009 2010 2011 2012 R12 % 150,0 100,0 Cash flow Operating Cash flow / EBITA > 85% 50,0 94 106 77 84 85 0,0 2009 2010 2011 2012 R12 2,5 2,0 Net De
Slide 22: Q&A
Q&A
Slide 23: Thank you for listening!
Thank you for listening! www.loomis.com