Loomis Ab · OMXSTO:LOOMIS
Loomis Ab — Capital Markets Day London 2014
22 slides from Loomis Ab's conference presentation, Sep 25, 2014
Slide 1: CMS and SafePoint driving growth in the US market
CMS and SafePoint driving growth in the US market Lars Blecko Regional President USA CMD London, Sep 25th 2014
Slide 2: Loomis USA – an overview
Loomis USA – an overview 9.000 170 #1 Employees Branches Position 2
Slide 3: We are performing well and have significant opportunities for growth
We are performing well and have significant opportunities for growth • Recent revenue development very positive - gaining market share • Quality of Service becoming key competitive component in the marketplace • Two of our services, CMS and SafePoint, have high potential for future growth 3
Slide 4: Healthy, sustainable revenue growth
Healthy, sustainable revenue growth Organic growth 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% -8,0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 4
Slide 5: CMS and SafePoint are driving growth
CMS and SafePoint are driving growth 2008 2014 CMS 17% 28% CIT CIT 83% 72% Total US Revenue SEK 3.930 m SEK 4.359 m 5
Slide 6: Right amount – right place – right time.
Right amount – right place – right time. Banks Central banks Retailers ATMs General public 6
Slide 7: What is Cash Management Services?
What is Cash Management Services? • Commercial Deposit Processing • Change Order Preparation • Cheque Processing • Coin Verification/Wrapping • Electronic Settlement 7
Slide 8: CMS potential is huge
CMS potential is huge $1190.7 bn Total in Circulation ($631.1 bn) Held Overseas ($148.0 bn) Dormant Cash Held in Bank Vaults and Other Outsourced CMS market $411 bn In Active Circulation to USA Banks $2 bn each month 0,03% Source: Chief Outsiders 2013 8
Slide 9: Loomis has 1/3 of the outsourced CMS market
Loomis has 1/3 of the outsourced CMS market Total estimated CMS market $2 Bn $0.7 Bn $0.7 Bn Outsourced CMS market 2014 Source: Chief Outsiders 2013 9
Slide 10: Why is there an increasing shift to outsourcing CMS?
Why is there an increasing shift to outsourcing CMS? • Banks are focusing on their core business • Cost reductions mean - Avoiding investment in fixed assets - Avoiding investments in security, training, IT - Fixed cost becoming variable costs – predictable costs • Greater confidence from customers
Slide 11: Why is KeyBank outsourcing CMS?
Why is KeyBank outsourcing CMS? “Loomis’ ongoing investment in its facilities and technology, resulting in high quality service, was a key factor along with its track record in successfully onboarding bank operated cash vaults.” Keith Silvestri, SVP with KeyBank. Key Tower, Cleveland, Ohio. USA 11
Slide 12: “Go Green” is our route to Quality
“Go Green” is our route to Quality 12
Slide 13: Rolling out Quality checks across CIT
Rolling out Quality checks across CIT “Go Green” (Branch) Quality and performance can be drilled down to customer, branch and also route and teller 13
Slide 14: Investing to standardise and deliver Quality procedures
Investing to standardise and deliver Quality procedures Nashville Tennessee Charlotte North Carolina Pensacola Florida Tulsa Oklahoma 14
Slide 15: Investing in Quality for our customers
Investing in Quality for our customers Buildings Trucks Track and Trace Coin processing 15
Slide 16: Ramping up rollout of SafePoint
Ramping up rollout of SafePoint 16
Slide 17: Why use SafePoint?
Why use SafePoint? • Focus on the core business • Dramatic Risk Reduction • Improved Liquidity and Cash Flow 17
Slide 18: Pharmacies and Drug: Only 4% penetration of 1.5 million locations
Only 4% penetration of 1.5 million locations Current US Smart Safe Penetration Smart Safe No Smart Safe TOTAL MARKET Locations ~200k ~125k ~65k ~230k ~90k ~45k ~750k 1.50M 100% 80% 60% Pharmacies and Drug 40% Liquor Stores and Bars 20% Grocery QSR C-Stores Other Restaurant Other Store Retailers 0% M
Slide 19: Our target market is 300,000
Our target market is 300,000 Above $600k Above 5 Sector Number of locations in cash locations QSR 250,000 170,000 85,000 Full Service Restaurant 250,000 125,000 35,000 C-Stores 146,000 146,000 50,000 Beer/Wine/Liquor 46,000 42,000 11,000 SubTOTAL 692,000 358,000 181,000 Discount Stores 35,000 32,000
Slide 20: Pace of SafePoint roll-out will increase
Pace of SafePoint roll-out will increase Units of SafePoint 14,000 12,000 11,798 10,000 10,437 8,000 8,367 6,000 5,704 4,000 4,217 2,635 2,000 1,985 1,239 736 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 20
Slide 21: Key factors boosting growth for SafePoint
Key factors boosting growth for SafePoint Market challenges Loomis solution Fragmented, commodity services Branded in-house, Quality servicing – Turn key ”Never heard of” Marketing co-operation with banks New dedicated sales organization 21
Slide 22: We are performing well…with substantial growth opportunities ahead
We are performing well……with substantial growth opportunities ahead Increased Recent revenue development very positive - performance gaining market share Quality of service Quality of Service becoming key competitive driving market advantage in the marketplace Significant CMS Significant CMS potenti