Slide 1: Loomis Year-end Report January – December 2010
Loomis Year-end Report January – December 2010 President and CEO: Lars Blecko Stockholm February 10, 2011
Slide 2: Contents
Contents • Highlights Q4 2010 • Segments • Financial highlights • Going forward • Q&A
Slide 3: Highlights Q4 2010
Highlights Q4 2010 • Full year operating margin target of at least 8% was achieved • Operating income decreased to MSEK 232 (237) • Increased operating margin 8.6 percent (8.0) • Organic growth amounted to 0 percent (-3) • Continued strong cash flow • New 5 year loan facility signed, post Q4 • Acqui
Slide 4: Europe Q4 2010
Segments Europe Q4 2010 Revenue development Quarters, MSEK Rolling 12, MSEK 2 500 10 000 • Organic revenue growth 0 percent (-1) 2 000 8 000 1 500 6 000 • Positive organic growth in most markets 1 000 4 000 500 2 000 • UK and Spanish markets remain challenging, although positive trend in the last pa
Slide 5: USA Q4 2010
Segments USA Q4 2010 Revenue development Quarters, MUSD Rolling 12, MUSD 160 800 140 700 • Organic revenue growth -1 percent (-6) 120 600 100 500 • No signs of solid market recovery 80 400 60 300 40 200 • Revenue mainly impacted by contract losses 20 100 – Conversion of old contracts losses still to
Slide 6: Statement of income
Financial highlights Statement of income Oct-Dec Oct-Dec Variance, Jan-Dec Jan-Dec Variance, Statement of income, MSEK 2010 2009 % 2010 2009 % Revenue 2,691 2,880 -7 11,033 11,989 -8 Organic revenue growth, % 0 -3 -1 -3 Operating income before amortization (EBITA) 232 237 -2 882 837 5 Operating marg
Slide 7: Operating margin development
Financial highlights Operating margin development 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 Quarters Rolling 12 => 8%, first phase of IPO target achieved
Slide 8: Analysis of the Branches
Financial highlights Analysis of the Branches 100% 90% 24% 29% 28% 30% 27% 26% 80% 70% 60% 50% 40% 76% 71% 72% 70% 73% 74% 30% 20% 10% 0% Q4-08 Q4-09 Q4-10 YTD-08 YTD-09 YTD-10 Performing Non-performing
Slide 9: Margin drivers
Financial highlights Margin drivers Trend Activities Impact on margin • Price pressure in • Premium Brand and Premium Price several markets Price • Pressure for wage • Price increase above wage increases despite increase economic climate Branch • Decrease in number • All Branches individually of und
Slide 10: Cash flow from operating activities
Financial highlights Cash flow from operating activities Oct-Dec Oct-Dec Jan–Dec Jan–Dec Statement of cash flows, MSEK 2010 2009 2010 2009 EBITA 232 237 882 837 Depreciation 163 175 687 752 Change in accounts receivable 21 132 -39 85 DSO 38 37 38 37 Change in other capital employed 44 15 115 -82 Cas
Slide 11: The new target
Financial highlights The new target 12% 10% 8% 6% 4% 2% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2014 Operating margin, %
Slide 12: New strategy
Going forward New strategy Market presence + Comprehensive solutions + Operational excellence = Growth Current markets Change of Mix Price Top line • No 1 or 2 • Defend CIT • Add on acquisition volumes • Increased focus on Branch Margin growing CMS New markets Risk • Close gap in Europe • Footprint
Slide 13: Strategy and margin impact
Going forward Strategy and margin impact ADD-ON ACQUISITIONS COMPREHENSIVE SOLUTIONS 10% ,R ISK R ANCH E, B PRIC 8% NEW MARKETS 2010
Slide 14: Market trends
Going forward Market trends Current status • Banks increasingly outsource Signs of activity cash handling operations. Outsourcing • Retailers seeking efficient and High interest safe cash handling solutions. Favorable • Few Global companies, many Opportunities Consolidation local. Possibility to acq
Slide 15: Financial goals and dividend policy
Financial goals and dividend policy % 12 EBITA Annual operating profit margin (EBITA) 8 10% at latest 2014 4 0 2008 2009 2010 % 150 Cash 100 conversion Operating Cashflow/EBITA > 85% 50 0 2008 2009 2010 2,5 2 Net 1,5 Net Debt/EBITDA not exceeding 2.5 1 Debt/EBITDA 0,5 0 2008 2009 2010 % 60 Dividend
Slide 16: Q&A
Q&A
Slide 17: Thank you for listening!
Thank you for listening! www.loomis.com