Loomis Ab · OMXSTO:LOOMIS
Loomis Ab — Investor Day (September 2017)
27 slides from Loomis Ab's investor day presentation, Sep 28, 2017
Slide 1: Leading the transformation of the Cash Ecosystem
Leading the transformation of the Cash Ecosystem Patrik Andersson CEO September 28, 2017
Slide 2: Today's focus areas – delivering even higher revenue and margin growth
Today’s focus areas – delivering even higher revenue and margin growth Third consecutive strategy Strong historical performance period reaching our targets New financial targets and Taking a leap in value creation strategy for 2018–2021 Transforming the Cash Ecosystem Moving up the value chain
Slide 3: One of the world's leading companies in cash and valuables management
One of the world’s leading companies in cash and valuables management Cash in transit Cash Loomis International (CIT) management SafePoint services (CMS) SafePoint 35 M USD 700 Bn 80 M USD 280 Bn Pick-ups per year Of value handled every year Deposits every year Valuables handled every year 3 Capital
Slide 4: 22 countries, 400 branch offices, 24,000 employees
Loomis ambition is to be #1 or #2 Canada – USA 1 Turkey 2 Toronto China – Argentina 5 Switzerland 1 Shanghai 22 countries Denmark 1 Slovakia 1 Germany - Frankfurt 400 branch offices Finland 1 Spain 2 Hong Kong 24,000 employees France 2 UK 2 Singapore Norway 1 Sweden 1 Revenue SEK 16.8 Bn UAE – Dubai
Slide 5: We have consistently delivered on targets and strengthened our financial position
We have consistently delivered on targets and strengthened our financial position Targets Current status Revenue SEK 17 Bn Rolling 12 months: >SEK 17 Bn by 2017 EBITA margin 10–12% Rolling 12 months: 11.9% 3rd consecutive strategy period Loomis hits financial targets Debt gearing Max 3.0 As per June
Slide 6: Strong historical performance builds a solid platform for next step
Strong historical performance builds a solid platform for next step Rolling 12 months EBITA growth FX adjusted EBITA +153% 2 500 160% 140% 2 051 2 000 120% EBITA FX adjusted, SEK M % Improvement 100% 1 500 80% 1 000 60% 814 40% 500 20% 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 7: Updated financial targets 2018–2021
Updated financial targets 2018–2021
Slide 8: Increased ambition and targets 2018–2021
Increased ambition and targets 2018–2021 New targets Previous targets Accelerate Revenue: SEK 24 Bn in 2021 SEK 17 Bn by 2017 Growth 50/50 split between organic and M&A Increase 12–14% EBITA margin 10–12% EBITA margin Margins Competitive 40–60% of net income 40–60% of net income Dividend 0 workplace
Slide 9: Global trends and Loomis focus areas
Global trends and Loomis focus areas
Slide 10: Cash in circulation and CMS/CIT markets are growing
Cash in circulation and CMS/CIT markets are growing USD 20 Euro Bn in circulation Global CIT/CMS market Bn in 1 250 2021 25 000 1 000 20 000 750 500 15 000 250 10 000 0 5 000 jan-02 jan-04 jan-06 jan-08 jan-10 maj-11 jan-12 jan-14 jan-16 maj-03 maj-05 maj-07 maj-09 maj-13 maj-15 maj-17 sep-02 sep-04
Slide 11: Global trends support our Strategy
Global trends support our Strategy Continued outsourcing. Pace depending on market maturity 32% Of Group sales is CMS Customers demand for more advanced/integrated solutions >5% Of Group sales is SafePoint New technologies are developing in the industry IT And software is crucial to be leading
Slide 12: Leading the transformation of the Cash Ecosystem: Loomis' strategic pillars
Leading the transformation of the Cash Ecosystem Loomis’ 5 strategic pillars 12 Capital Markets Day September 28, 2017
Slide 13: Our five strategic pillars
Our five strategic pillars 1. Accelerate the core business 2. Launch adjacent new services Leading the Move up the value chain combining 3. physical and digital capabilities <<<< transformation of the Cash Strengthen our geographic 4. and technology footprint Ecosystem Protect and build our 5. Loomi
Slide 14: Accelerate the core business
1 2 3 4 5 Accelerate the core business 1
Slide 15: Accelerate CMS and SafePoint and optimize the global business model
Accelerate CMS and SafePoint and 1 2 3 4 5 optimize the global business model Increased revenue and margin Accelerate CMS outsourcing in less mature markets and strengthen price management Accelerate SafePoint in US/EU Market maturity Loomis International – synergies with local businesses Re
Slide 16: Develop new services through Centers of Excellence and Innovation Centre
Develop new services and leverage new practice through 1 2 3 4 5 Centers of Excellence and Innovation Centre Increased revenue and margin Innovation Center (Stockholm) • New services • Launch across the Group Retail Service CoE (Houston) Market maturity • SafePoint • Retail solutions • CRM solutions
Slide 17: Launch adjacent new services
1 2 3 4 5 Launch adjacent new services 2
Slide 18: New services will add growth and increase margins
New services will add growth and increase margins 1 2 3 4 5 Increased revenue and margin Launch FX solutions to capture an untapped market Launch planning and forecasting services- managed services Market maturity Develop new valuables platforms within FX solutions Loomis International – i.e.
Slide 19: Move up the value chain combining physical and digital capabilities
1 2 3 4 5 Move up the value chain combining physical and digital capabilities 3
Slide 20: Develop and acquire capabilities to move further up the value chain
Develop and acquire capabilities to move further 1 2 3 4 5 up the value chain Increased revenue and margin Build ATM services and solutions New Further expand bank and retail back and Payment Digital Systems front office solutions Market maturity Retail/ Platforms Bank Build platforms for hand
Slide 21: Strengthen our geographic and technology footprint
1 2 3 4 5 Strengthen our geographic and technology footprint 4
Slide 22: Consolidate key markets and acquire new technology
Consolidate key markets and acquire new technology 1 2 3 4 5 Increased revenue and margin New technology: New NewPayment Priority: Software/HW solutions for back/ Digital technologySystems front office and managed services Market maturity Retail/ Platforms Bank First acquisition made. Intermar
Slide 23: Protect and build our Way of Working
1 2 3 4 5 Protect and build our Way of Working 5
Slide 24: Updating the Loomis model to support our growth
Updating the Loomis model to support our growth 1 2 3 4 5 Safeguard key elements of Loomis Model Develop new skills and mindset No 1 operator of the industry Build new capabilities Loomis model ‒ IT, innovation management, ‒ Decentralized decision making working cross borders ‒ KPI focused S
Slide 25: Organisational developments to support strategy
Organisational developments to support strategy From 3 regions in Europe to 1 ‒ Headed by Georges Lopez, Regional President Southern Europe ‒ Effective October 1, 2017 Establishing Innovation Centre ‒ Recruitment of Director started. Position reporting to CEO and part of Group Management Team
Slide 26: Increased ambition and targets 2018–2021
Increased ambition and targets 2018–2021 Target Key priorities • Accelerate CMS & SafePoint growth Accelerate Revenue: SEK 24 billion in 2021 • Accelerate LI growth Growth 50/50 split between organic/acquisition • New services • Strong focus on M&A • New pricing models Increase • Reorganise Europe f
Slide 27: Delivering even higher revenue and margin growth
Delivering even higher revenue and margin growth Third consecutive strategy Strong historical performance period reaching our targets New financial targets and Taking a leap in value creation strategy for 2018–2021 Transforming the Cash Ecosystem Moving up the value chain