Securitas Ab Class B · OMXSTO:SECU_B
Securitas Ab Class B — Q4 2023 Earnings Presentation
21 slides from Securitas Ab Class B's earnings presentation, Feb 7, 2024
Slide 1: Q4/Full-Year Report 2023
Q4/Full-Year Report 2023 Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Slide 2: Strong cash flows and margin improvement from technology and solutions
Securitas 2 Full-Year Report January-December 2023 Strong cash flows and margin improvement from technology and solutions — Organic sales growth of 6 percent (9) in the fourth quarter — Organic sales growth was driven by price increases and volume growth within the airport business — Technology and
Slide 3: Strong operating margin development in technology and solutions
Securitas Full-Year Report January-December 2023 3 Strong operating margin development in technology and solutions, representing 55 percent of Group’s operating result in Q4 % of % of Sales Real sales EBITA** EBITA Group Group MSEK growth, % MSEK margin, % sales EBITA** Business line Q4 2023 Q4 2023
Slide 4: Securitas North America: Organic sales growth driven by the Guarding business
Securitas 4 Full-Year Report January-December 2023 Securitas North America Organic sales growth driven by the Guarding business Organic sales growth Organic sales growth 4% (6) in Q4, 6% (1) in FY 9% — Driven by portfolio new sales and a significant client contract renewed 7% and extended, as previo
Slide 5: Securitas North America: Strong margin uplift driven by the Technology business
Securitas 5 Full-Year Report January-December 2023 Securitas North America Strong margin uplift driven by the Technology business Operating margin Operating margin 9.3% (8.9) in Q4, 9.0% (8.3) in FY 10% — The development was driven by the Technology business 9% unit: — strong integration execution 8
Slide 6: Securitas Europe: Strong organic sales growth mainly driven by price increases
Securitas 6 Full-Year Report January-December 2023 Securitas Europe Strong organic sales growth mainly driven by price increases Organic sales growth Organic sales growth 11% (11) in Q4, 12% (9) in FY 14% — Strong price increases supported organic sales growth including impacts from the 12% hyperinf
Slide 7: Securitas Europe: Operating margin improvement driven by technology and solutions
Securitas 7 Full-Year Report January-December 2023 Securitas Europe Operating margin improvement driven by technology and solutions Operating margin Operating margin 6.6% (6.3) in Q4, 6.1% (5.9) in FY 8% — The improvement was driven 7% mainly from technology and solutions, where technology had a str
Slide 8: Securitas Ibero-America: Decline in organic sales growth due to Argentina divestment
Securitas 8 Full-Year Report January-December 2023 Securitas Ibero-America The decline in organic sales growth is due to the divestment of Securitas Argentina Organic sales growth Organic sales growth 7% (17) in Q4, 15% (16) in FY 28% — Organic sales growth declined due to the 24% divestiture of Sec
Slide 9: Securitas Ibero-America: Improved operating margin driven by technology and solutions
Securitas 9 Full-Year Report January-December 2023 Securitas Ibero-America The improved operating margin was driven by technology and solutions Operating margin Operating margin 7.2% (6.3) in Q4, 6.4% (6.0) in FY 8% — Improved margins in tech- nology and solutions and in 7% airport security supporte
Slide 10: Financials
Securitas 10 Financials Andreas Lindback CFO
Slide 11: Financial highlights
Securitas Full-Year Report January-December 2023 11 Financial highlights Q4 Q4 FY FY MSEK 2023 2022 2023 2022 — The Securitas Critical Infrastructure Services (SCIS) business unit moved from segment Sales 39 542 38 091 157 249 133 237 Securitas North America to Other in Q3 2023 Organic sales growth,
Slide 12: Items affecting comparability
Securitas 12 Full-Year Report January-December 2023 Items affecting comparability Transformation programs – Europe and Ibero-America, announced in Q4 2020 • Total program cost announced: MSEK -1 400 over the period 2021-2023 and CAPEX of MSEK -1 100 • Cloud computing: MSEK ~250 CAPEX to IAC transfer
Slide 13: Declining tailwind from FX
Securitas 13 Full-Year Report January-December 2023 Declining tailwind from FX Change FX SEK END-RATES MSEK Q4 2023 Q4 2022 Total, % Real*, % Q4 2023 Q4 2022 % Sales 39 542 38 091 4 4 USD 9.930 10.483 -5.27 EUR 11.037 11.144 -0.96 Operating income 2 683 2 491 8 9 EPS, SEK** 2.11 2.47 -15 -11 EPS, SE
Slide 14: Cash flow target reached for the full year
Securitas Full-Year Report January-December 2023 14 Cash flow target reached for the full year MSEK Q4 Q4 FY FY 2023 2022 2023 2022 Operating income — Net investments of MSEK -131 (-136) in Q4 before amortization 2 683 2 491 10 247 8 033 — CAPEX of MSEK –972 and reversal of depreciation Net investme
Slide 15: Solid deleveraging to 2.7x net debt to EBITDA-ratio before IAC
Securitas Full-Year Report January-December 2023 15 Solid deleveraging to 2.7x net debt to EBITDA-ratio before IAC MSEK Net debt to EBITDA-ratio 5,0 Net debt January 1, 2023 -40 534 4,5 Free cash flow 4 938 4,0 4.1 4.0 Acquisitions/Divestitures -170 3,5 3.3 Items affecting comparability -1 403 3,0 2
Slide 16: Financing overview
Securitas Full-Year Report January-December 2023 16 Financing overview MSEK — No financial covenants 20 000 18 000 — Strong liquidity at the end of Q4: BSEK 7.9 16 000 — MEUR 1 029 RCF matures in 2027 and is fully undrawn 14 000 12 000 — MUSD 2 385 STANLEY Security bridge to debt facility fully refi
Slide 17: Building the new Securitas
Securitas 17 Building the new Securitas
Slide 18: Securitas' financial targets
Securitas 18 Securitas’ financial targets Superior growth Higher margins 8-10% 8% >10% Technology & Solutions annual average real sales Group EBITA margin Long-term EBITA growth 1) by year-end 2025 margin ambition — A leading global Technology & Solutions provider with — Increased exposure to high-m
Slide 19: Investor Day on March 7, 2024, at 14.00-17.00 CET
Securitas 19 Full-Year Report January-December 2023 Investor Day on March 7, 2024, at 14.00-17.00 CET Venue: Headquarters in Stockholm To be webcasted live as well More information to follow closer to the event
Slide 20: Executing our strategy is driving performance
Securitas 20 Full-Year Report January-December 2023 Executing our strategy is driving performance — The operating margin improved to 6.8 percent (6.5) in the fourth quarter driven by all business segments — Technology and solutions was the main driver across the Group — Price increases and wage cost
Slide 21: Securitas
Securitas