Loomis Ab · OMXSTO:LOOMIS
Loomis Ab — Investor Day (March 2022)
15 slides from Loomis Ab's investor day presentation, March 2022
Slide 1: At the Centre of the Payment Ecosystem
At the Centre of the Payment Ecosystem Capital Markets Day March, 2022
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein have been By their nature, forward-looking statements involve risks and prepared by Loomis AB (“Loomis”) solely for information purposes. uncertainties because they relate to events and depend on circumstances that may or may not occu
Slide 3: Financial Performance and Capital allocation
Financial Performance and Capital allocation Kristian Ackeby, CFO
Slide 4: Revenue continues to increase – target 5-8% growth
Revenue continues to increase – target 5-8% growth(1)(2) (SEKbn) Target(3) 21.0 19.2 19.7 18.8 16.8 17.2 16.1 13.5 2014 2015 2016 2017 2018 2019 2020 2021 2024 Covid-19 impact 1) Annual average growth rate, currency adjusted. 2) For all financial data and reconciliations we refer to our externally p
Slide 5: ATM and SafePoint are important drivers for growth
ATM and SafePoint are important drivers for growth ATM and SafePoint represent Growth rates short term will be Group 34% of Group revenue impacted by re-bound from Covid-19 EU US 22% 34% 19% 26% 43% 25% 12% 7% 18% ATM SafePoint Note: Numbers above refer to full year 2021.
Slide 6: Maintained good margin despite pandemic
Maintained good margin despite pandemic Revenue and EBITA margin (SEKbn and %) Immediate 21.0 18.8 19.7 cost measures 19.2 12.4% maintained margin 17.2 11.5% 9.9% at close to 10%, 9.4% short and long term 12.1% actions activated Cost measures improved margin by approximately 3pp 2017 2018 2019 2020
Slide 7: Profit and margin supported by revenue growth
Profit and margin supported by revenue growth Target(1) 12,1% 12,4% 11,5% 11,2% 10,1% 10,6% 9,4% 9,9% 2.6 2.2 2.1 1.9 2.0 1.7 1.8 1.4 2014 2015 2016 2017 2018 2019 2020 2021 2024 EBITA, SEKbn EBITA margin Covid-19 impact 1) EBITA at 5-8% revenue growth and 12-14% margin for illustrative purposes
Slide 8: Underlying trends support financial targets
Underlying trends support financial targets Headwinds … Staffing situation Global supply chain Tailwinds … Recovery after pandemic Outsourcing from Banks Product mix Efficiencies Note: As of today it is not possible to assess what the impact would be from the war in Ukraine and all potential related
Slide 9: Cash flow remains strong and stable over time
Cash flow remains strong and stable over time EBITDA, excl. IFRS 16 (SEKbn) 3.4 3.8 Impact from pandemic 3.2 3.1 2.8 3.0 3.0 offset by immediate 2.2 actions on cost and capex Adaptable capex to 2014 2015 2016 2017 2018 2019 2020 2021 continue supporting growth Covid-19 impact Capital Expenditure (SE
Slide 10: Stable cash conversion over time
Stable cash conversion over time Adjusted Operating Cash Flow (SEKbn) 125% Days Sales Outstanding "DSO" stable over time 107% 91% 85% 84% 83% 79% 74% 2.2 Timing in cash stock 2.0 2.0 2.1 impact short term 1.8 1.6 107% 1.3 84% 1.2 74% 76% 2014 2015 2016 2017 2018 2019 2020 2021 Covid-19 impact Cash %
Slide 11: Strong cash flow supports stable net debt level
Strong cash flow supports stable net debt level Strong financial position 1.7x supports organic and 1.8x acquired growth 1.8x 2.8 2.6 3.0 Intention to reach 1.6x leverage of 2–3x over time 1.9x 1.3x IFRS-16 Adjusted(1) 1.3x 1.2x 1.2x 1.4x 1.3x Debt covenants at 3.5x 4.2 4.4 4.3 4.5 3.9 3.8 4.0 4.0 2
Slide 12: Even maturity profile with diversified debt sources
Even maturity profile with diversified debt sources(1) 4.3 Loomis industry first to issue sustainability MTN linked financing Sustainability- 1.2 linked Bond Strong and stable cash flow supports gearing and reduces 2.1 funding costs 1.3 1.9 0.3 2022(1) 2023 2024 2025 2026 1) Year 2022 mainly relates
Slide 13: Increased shareholder distribution over time
Increased shareholder distribution over time Prior to Covid-19, consistently Shareholder 4.6 bn SEK to increased value returned to distribution in 2021 shareholders since 2014 shareholder every year highest ever 801 750 677 602 350 527 451 414 376 451 2014 2015 2016 2017 2018 2019 2020 2021 Covid-19
Slide 14: Capital allocation priorities to create shareholder value
Capital allocation priorities to create shareholder value Investments to support growth M&A opportunities Shareholder distribution Vehicles (ESG enabler) Bolt-on acquisitions in core Dividend 40–60% of net income over time SafePoint Adjacent technologies 80% 60% ATM Digital technologies 40% 20% Prem
Slide 15: We are in strong position to grow and distribute cash to shareholders
We are in strong position to grow and distribute cash to shareholders Growth supported by Proven resilient to financial crisis larger addressable markets and impact from Covid-19 Strong cash flow generation Focus on capital allocation over time - drives shareholder value