Securitas Ab Class B · OMXSTO:SECU_B
Securitas Ab Class B — Q3 2024 Earnings Presentation
22 slides from Securitas Ab Class B's earnings presentation, Nov 6, 2024
Slide 1: Interim Report Q3/9M 2024
Securitas Interim Report Q3/9M 2024 Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Slide 2: A strong quarter
Securitas Interim Report January-September 2024 2 A strong quarter – Organic sales growth of 5 percent (8) in the third quarter – 6 percent (14) real sales growth in technology and solutions – Record-high operating margin of 7.5 percent (6.9) in the third quarter – Improved performance in Europe dri
Slide 3: Strong improvement in the security services business line
Securitas Interim Report January-September 2024 3 Strong improvement in the security services business line Real % of EBITA % of Group sales growth, % Group sales margin, % EBITA** – Good underlying performance within Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 security services in Europe, driven Business line 2024 202
Slide 4: Securitas North America: Organic sales growth driven by the Technology business unit
Securitas Interim Report January-September 2024 4 Securitas North America Organic sales growth driven by the Technology business unit Organic sales growth Organic sales growth 3% (5) in Q3 10% 9% — Driven by good growth in the Technology business unit 8% 7% — Organic sales growth in Guarding was sup
Slide 5: Securitas North America: A slight operating margin decline
Securitas Interim Report January-September 2024 5 Securitas North America A slight operating margin decline Operating margin Operating margin 9.1% (9.2) in Q3 10% — Hampering effect from the Technology business unit due to negative cost development after the completed carve-out 9% — Weaker performan
Slide 6: Securitas Europe: Organic sales growth driven by price increases, airport and technology
Securitas Interim Report January-September 2024 6 Securitas Europe Organic sales growth mainly driven by price increases, the airport business and technology and solutions Organic sales growth Organic sales growth 7% (13) in Q3 14% — Organic sales growth was primarily driven by price increases inclu
Slide 7: Securitas Europe: Strong operating margin improvement within security services
Securitas Interim Report January-September 2024 7 Securitas Europe Strong operating margin improvement within security services Operating margin Operating margin 7.7% (7.0) in Q3 8% — The improvement was driven by security services through active portfolio management, improved 7% margins on new sale
Slide 8: Securitas Ibero-America: Organic sales growth driven by technology and solutions and price increases
Securitas Interim Report January-September 2024 8 Securitas Ibero-America Organic sales growth driven by technology and solutions and price increases Organic sales growth Organic sales growth 5% (5) in Q3 28% — Organic sales growth driven by good technology and solutions sales and price increases 24
Slide 9: Securitas Ibero-America: Improved operating margin driven by technology and solutions
Securitas Interim Report January-September 2024 9 Securitas Ibero-America The improved operating margin was driven by technology and solutions Operating margin Operating margin 7.2% (7.0) in Q3 8% — The improvement was driven by technology and solutions 7% 6% 5% 4% 3% 2% Q1 Q2 Q3 Q4 2022 2023 2024
Slide 10: Financials
Securitas 10 Financials Andreas Lindback Chief Financial Officer
Slide 11: Financial highlights
Securitas Interim Report January-September 2024 11 Financial highlights Q3 Q3 9M 9M FY MSEK 2024 2023 2024 2023 2023 Sales 40 229 40 047 120 127 117 707 157 249 – IAC of MSEK -697 (-3 673) Organic sales growth, % 5 8 5 10 9 – MSEK -536 related to Paragon investigation Operating income before amortiz
Slide 12: Items affecting comparability: Transformation program and STANLEY integration on track
Securitas Interim Interim Interim Report Report Report January-September January-September January-September 2024 2024 2024 12 Items affecting comparability Transformation program and STANLEY integration on track Transformation program – Europe and Ibero-America, announced in Q4 2020 Items affecting
Slide 13: Negative impact from FX in the quarter
Securitas Interim Report January-September 2024 13 Negative impact from FX in the quarter Change FX SEK END-RATES MSEK Q3 2024 Q3 2023 Total, % Real*,% Q3 2024 Q3 2023 % Sales 40 229 40 047 0 5 USD 10.115 11.010 -8.13 Operating income 3 006 2 764 9 14 EUR 11.292 11.601 -2.66 EPS, SEK 2.03 -3.58 n/a
Slide 14: Strengthened operating cash flow in Q3
Securitas Interim Report January-September 2024 14 Strengthened operating cash flow in Q3 MSEK Q3 2024 Q3 2023 9M 2024 9M 2023 FY 2023 Operating income before − Q3 operating cash flow amortization 3 006 2 764 8 164 7 564 10 247 − Supported by reduced organic sales growth Investments in non-current a
Slide 15: Continued improvement to net debt/EBITDA in the third quarter
Securitas Interim Report January-September 2024 15 Continued improvement to net debt/EBITDA in the third quarter — Solid deleveraging to 2.9x (3.3) net debt to 3.5 EBITDA ratio MSEK Net debt January 1, 2024 -37 530 3.0 3.1 2.9 2.9 Free cash flow 1 414 2.7 2.7 Acquisitions/Divestitures -162 2.5 Items
Slide 16: Financing overview
Securitas Interim Report January-September 2024 1616 Financing overview — No financial covenants MSEK – No financial covenants 10 000 – Strong liquidity at end of the quarter: BSEK 6.9 7 500 – MEUR 1 029 RCF matures in 2027 and is fully undrawn 5 000 – MEUR 159 Schuldschein refinanced with MEUR 147
Slide 17: Shaping the future Securitas
Securitas Shaping the future Securitas
Slide 18: Unique position with an unparalleled client offering
Securitas Interim Report January-September 2024 18 We have established a unique position, with an unparalleled client offering to solve increasingly complex security needs Providing solutions globally Unmatched client offering Technology and innovation Global presence based on extensive Bespoke offe
Slide 19: Clear roadmap to achieve 8% operating margin by the end of 2025
Securitas Interim Report January-September 2024 19 Clear roadmap to achieve 8% operating margin by the end of 2025 — High single-digit organic sales growth supported by significant Operating margin commercial synergies 8% 6.5% — Active portfolio management — Price — Labor productivity — Cost efficie
Slide 20: Shaping Securitas for long-term, sustainable shareholder value
Securitas Interim Report January-September 2024 20 Shaping Securitas for long-term, sustainable shareholder value Operational value creation Capital allocation eased profitabili r ty Inc Resilient financial position Growth in technology and solutions <3x net debt to EBITDA Security services Investme
Slide 21: Executing our strategy and driving performance
Securitas Interim Report January-September 2024 2121 Executing our strategy and driving performance – The operating margin improved to record-high 7.5 percent (6.9) in the third quarter – Strong improvement in the security services business line – Price increases were slightly ahead of wage cost inc
Slide 22: Securitas
Securitas