Loomis Ab · OMXSTO:LOOMIS
Loomis Ab — Investor Day (March 2022)
38 slides from Loomis Ab's investor day presentation, March 2022
Slide 1: At the Centre of the Payment Ecosystem
At the Centre of the Payment Ecosystem Capital Markets Day March, 2022
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein have been By their nature, forward-looking statements involve risks and prepared by Loomis AB (“Loomis”) solely for information purposes. uncertainties because they relate to events and depend on circumstances that may or may not occu
Slide 3: Agenda
Agenda Patrik Andersson, President & CEO Kristian Ackeby, CFO At the Centre of the Payment Ecosystem 4. Financial Performance and Capital Allocation 1. Historical performance and new targets Patrik Andersson, President & CEO, Kristian Ackeby, CFO 2. Focus on recurring revenue, global trends and indu
Slide 4: Historical performance and new targets
Historical performance and new targets Patrik Andersson, President & CEO
Slide 5: Cash industry is growing – And we are in strong position
Cash industry is growing – And we are a in strong position Strong historical performance Handled the pandemic well. Now opportunities opening up Taking a leap in value creation New ambitious targets for 2022-2024 Moving up the value chain Greater focus on recurring revenue and technology
Slide 6: Loomis today
Loomis today Revenue SEK 23 +400 24,000 19.7 countries branch offices full time employees billion in 2021
Slide 7: Leading position in focus markets – Significant economies of scale
Leading position in focus markets – Significant economies of scale Full service International USA (2) (VIT/VIS) Argentina (3) Toronto Denmark (1) China Finland (1) Shanghai France (2) Hong Kong 1 1 1 Norway (1) Singapore 2 1 Portugal (3) UAE – Dubai 2 2 3 2 Czech Rep (2) 1 1 1 Germany (3) 2 3 2 2 Tu
Slide 8: The Loomis service offering – At the heart of all of our clients needs
The Loomis service offering – At the heart of all of our clients needs Loomis Pay ATM Customers use Loomis Pay as Customers install end-to-end payment platform Loomis’ ATMs to help with for all types of payments deposits and withdrawals CIT SafePoint/Recyclers Customers use CIT Customers use SafePoi
Slide 9: We continue to support the crucial role of cash in society
We continue to support the crucial role of cash in society • ATMs closed in French rural areas due to bank branch closures • Loomis launched the Loomis Cash 24/7 ATMs in collaboration with local authorities • Loomis also entered into an agreement with the French convenience store association with 24
Slide 10: Positive momentum in 2021 from actions to mitigate Covid-19
Positive momentum in 2021 from actions to mitigate Covid-19 1. Accelerate Growth 2. Increase Margins 3. Competitive Dividend 2021 TARGETS 2021 TARGETS 2021 TARGETS Revenue: SEK 24 bn in 2021 12–14% Operating Margin 40–60% of Net Income 50/50 Organic/Acquisitions FY 2021 ACTUAL RESULTS FY 2021 ACTUAL
Slide 11: Targeted efforts in the ESG area give strong results
Targeted efforts in the ESG area give strong results 4. Safe Workspace 5. Reduce Carbon Impact 6. Eco Friendly Operations 2021 TARGETS 2021 TARGETS 2021 TARGETS Vision: Zero Workplace 30% Reduction in 30% Reduction in Injuries Carbon Emissions Plastic Consumption FY 2021 ACTUAL RESULTS FY 2021 ACTUA
Slide 12: Since 2017 we have made 18 acquisitions – strong pipeline
Since 2017 we have made 18 acquisitions – strong pipeline Acquisitions Key facts Increased • Sequel Logistics US revenue and margin • Germany ENTERPRISE VALUE ~2.5 • Turkey • Chile New Prosegur France SEKbn Payment • Nokas Sweden Systems W• • SwissPost ATM Response Digital Platforms REVENUE Market m
Slide 13: 5 strategic pillars underpin our future performance
5 strategic pillars underpin our future performance 1. Accelerate the core business 2. Strong focus on recurring revenue Moving up the value chain – 3. Combining physical and digital capabilities stronger focus on recurring revenue 4. Industry leading ESG strategy and technology 5. Protect and devel
Slide 14: Loomis targets for the new strategy period 2022–2024
Loomis targets for the new strategy period - 2022–2024 1. 2. Revenue: Real Growth EBITA margin of 5–8% Annual average growth rate, currency adjusted 12–14% at the end of the strategy period 3. 4. 15% reduction of CO e 2 15% reduction of the work injury from 2019 for Scope 1 & 2 combined rate compare
Slide 15: Focus on recurring revenue, global trends and industry dynamics
Focus on recurring revenue, global trends and industry dynamics Patrik Andersson, President & CEO
Slide 16: Stronger focus on recurring revenue
Stronger focus on recurring revenue ATM and SafePoint
Slide 17: Expanding services with increased customer value and higher margins
Expanding services with increased Loomis Pay customer value and Business Integrated higher margins partner solutions ATM >20% EBITA margin Safe FX Point Outsourcing Comprehensive partner Solutions CMS 10–20% EBITA margin CIT VIT Service Single provider service VIS 5–10% EBITA margin
Slide 18: Previous Reporting vs New Enhanced Reporting
Previous Reporting New Enhanced Reporting Revenue FY 2021, Current Structure Revenue FY 2021, New Structure ATM CIT CMS 22% 34% 12% CIT SafePoint International Other Other FX International CMS
Slide 19: ATM and SafePoint
ATM • Drive outsourcing and acquisitions • Centre of Excellence in both US and Europe • Launching Loomis branded ATMs • Expanding the Automatia platform • Building local sales capacity SafePoint ATM • Centre of Exellence in US • Further develop the strong pipeline of customers • Increased focus on E
Slide 20: Cash in circulation continues to increase especially in times of uncertainty
Cash in circulation continues to increase especially in times of uncertainty USDbn in circulation EURbn in circulation 2 500 55% 2 000 16% 45% 14% 2 000 1 500 12% 35% 10% 1 500 25% 1 000 8% 15% 1 000 6% 5% 500 4% 500 -5% 2% 0 -15% 0 0% USDbn Annual Growth rate, % EURbn Annual Growth rate, % Source:
Slide 21: Cash remains the largest and safest payment method globally
Cash remains the largest and safest payment method globally Share of payments instrument (POS and P2P), 2019 Value # Transactions 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cash Cards Others Source: ECB “Study on the payment attitudes of consumers in the euro area (SPACE)” December 2020
Slide 22: Global cash management market continues to grow
Global cash management market continues to grow CAGR 6.6% Drivers • Increase of cash in circulation • Stable use of cash as ~ 26 payment method • Increased outsourcing from ~ 20 commercial and central banks USDbn • Outsourcing from retailers USDbn • Cash demand increasing in times of uncertainty 202
Slide 23: More advanced ATM outsourcing - addressable market increasing
More advanced ATM outsourcing - addressable market increasing ~ 5.1 ~ 5.5 ~ 6.3 ~ 6.7 USDbn EURbn USDbn EURbn US 2021 US 2025 Europe 2021 Europe 2025 • Big opportunity as outsourcing increases • The ”ATM as a service” market creates new opportunities • Technology and Software important Source: Loomi
Slide 24: The cash automation market in the US & Europe - big opportunity
The cash automation market in the US & Europe - big opportunity • Demand for automation is growing rapidly • Retailers looking for: – Efficiency ~ 2.6 ~ 1.3 – Safety – Cash Flow • Market penetration in US is only at 30% USDbn EURbn • Loomis is market leader in the US • Technology and Software impor
Slide 25: FX business to rebound as tourism returns to Europe
FX business to rebound as tourism returns to Europe Air transport, registered carrier departures – Euro area • Business will come back 6 000 000 as tourism returns • Opportunities to take market share post-Covid 5 000 000 • Market will consolidate 4 000 000 • Strong FX organization based in Paris wi
Slide 26: Market for Loomis Pay large and growing
Market for Loomis Pay large and growing Total addressable market – restaurants & SME retail reaching 1% of segment gives SEK 3bn EU – Loomis countries EU – Total US 200 SEKbn 300 SEKbn 400 SEKbn of which Nordics SEK 11.5bn Source: Statista (EU), US Sensus (US), sba.gov (US), Loomis internal analysis
Slide 27: Loomis Pay - Expanding in the Payment Ecosystem and enabling ESG
Loomis Pay - Expanding in the Payment Ecosystem and enabling ESG for a sustainable Future Patrik Andersson, President & CEO
Slide 28: Loomis Pay frees up retailers to focus on growing sales
Loomis Pay frees up retailers to focus on growing sales Today Tomorrow One contract One contact Merchant Merchant One settlement All payments LOOMIS–PAY
Slide 29: Loomis Pay covering large part of the retailer Payment Ecosystem
Loomis Pay covering large part of the retailer Payment Ecosystem POS & Merchant Own gateway & Acquirer Own ledger Payment institution Leveraging frontend PCI compliant Integration & Settlement license from SFSA local presence Easy to use. Able to handle any Owning the Efficient Passportable to Loomi
Slide 30: A broad product range with the latest technology - including software
A broad product range with the latest technology - including software Table top Hand held Accessories Unattended
Slide 31: Volumes following development of global competitors - expansion in EU
Volumes following development of global competitors - expansion in EU Annual transaction volumes • Loomis Pay launched in USDbn Nordics • Good development but 7,0 impacted by Covid-19 • Launch in at least one 6,0 large Loomis Pay – European country during 5,0 transaction 2022 volume 2021 • Target of
Slide 32: Loomis’ 2024 ESG Commitment
Loomis’ 2024 ESG Commitment
Slide 33: Industry leader in ESG through series of initiatives
Industry leader in ESG through series of initiatives As industry first, Loomis issued SEK 1,200 m of Sustainability has been integrated into Sustainability Linked Bonds, linked to the Loomis business model since reducing Loomis’ CO2 emissions with 20% by 2018. First Sustainability Report in 2015 202
Slide 34: Our ESG vision is an integrated part of our strategy
Our ESG vision is an integrated part of our strategy E To reduce climate impact across the global organization by reducing emissions, switching to renewables and collaborating with our vendors & customers S To be an inclusive company that provides a safe, fair and diverse environment for its employe
Slide 35: Targets and focus areas aligned with our ESG vision
Targets and focus areas aligned with our ESG vision ENVIRONMENT 15% reduction of CO2e in scope 1 & 2 combined(1) SOCIAL 15% reduction of the work injury rate(2) GOVERNANCE Continue focusing on openness and transparency 1) With 2019 as baseline year 2) With 2021 as baseline year
Slide 36: Cash industry is growing – And we are in a strong position
Cash industry is growing – And we are in a strong position Strong historical performance Handle the pandemic well. Now opportunities opening up Taking a leap in value creation New ambitious targets for 2022-2024 Moving up the value chain Greater focus on recurring revenue and technology
Slide 37: Closing Remarks
Closing Remarks Patrik Andersson, President & CEO
Slide 38: Looking forward to the next phase of our growth strategy
Looking forward to the next phase of our growth strategy Total addressable market Targets for 2022–2024 increasing - Supports financial targets Loomis service offering Broader and stronger than ever Real Growth EBITA margin CO2e reduction Injury rate focus on recurring revenues of 5–8% of 12–14% of