Slide 1: Loomis Interim Report January – September 2012
Loomis Interim Report January – September 2012 President and CEO: Lars Blecko Stockholm, November 9, 2012
Slide 2: Contents
Contents • Highlights Q3 2012 • Segments • Financial highlights • Going forward • Q&A 2
Slide 3: Highlights Q3 2012
Highlights Q3 2012 • Organic growth -2 percent (1) • Operating margin 9.8 percent (9.5) • Operating result including costs for lost legal dispute in Denmark • Increase in number of performing Branches • Significant contracts signed in Sweden and France • Strong operating cash flow • On track to reac
Slide 4: Statement of income
Highlights Q3 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,788 2,882 8,507 8,092 Real growth, % 0 9 4 6 Organic growth, % -2 1 0 1 Operating income (EBITA) 272 273 709 646 Operating margin, % 9.8 9.5 8.3 8.0 Amortization -8 -6 -21 -1
Slide 5: Statement of income
Highlights Q3 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,788 2,882 8,507 8,092 Real growth, % 0 9 4 6 Organic growth, % -2 1 0 1 Operating income (EBITA) 272 273 709 646 Operating margin, % 9.8 9.5 8.3 8.0 Amortization -8 -6 -21 -1
Slide 6: Statement of income
Highlights Q3 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,788 2,882 8,507 8,092 Real growth, % 0 9 4 6 Organic growth, % -2 1 0 1 Operating income (EBITA) 272 273 709 646 Operating margin, % 9.8 9.5 8.3 8.0 Amortization -8 -6 -21 -1
Slide 7: Statement of income
Highlights Q3 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,788 2,882 8,507 8,092 Real growth, % 0 9 4 6 Organic growth, % -2 1 0 1 Operating income (EBITA) 272 273 709 646 Operating margin, % 9.8 9.5 8.3 8.0 Amortization -8 -6 -21 -1
Slide 8: Statement of income
Highlights Q3 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,788 2,882 8,507 8,092 Real growth, % 0 9 4 6 Organic growth, % -2 1 0 1 Operating income (EBITA) 272 273 709 646 Operating margin, % 9.8 9.5 8.3 8.0 Amortization -8 -6 -21 -1
Slide 9: Statement of income
Highlights Q3 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Revenue 2,788 2,882 8,507 8,092 Real growth, % 0 9 4 6 Organic growth, % -2 1 0 1 Operating income (EBITA) 272 273 709 646 Operating margin, % 9.8 9.5 8.3 8.0 Amortization -8 -6 -21 -1
Slide 10: Europe Q3 2012
Segments Europe Q3 2012 Revenue development Quarters, MSEK R12, MSEK 2 500 10 000 • Real growth 0 percent (4) 2 000 8 000 • Acquisition of Efectivox in Spain is fully integrated 1 500 6 000 • Organic growth -2 percent (2) 1 000 4 000 • Termination of contracts with low profitability 500 2 000 in Fra
Slide 11: USA Q3 2012
Segments USA Q3 2012 Revenue development Quarters, MUSD R12, MUSD 180 900 • Real growth -1 percent (18) 160 800 140 700 120 600 • Organic growth -2 percent (0) 100 500 80 400 60 300 • Impact from fuel surcharges insignificant 40 200 20 100 0 0 • Positive organic growth excluding lost Q1 Q2 Q3 Q4 Q1
Slide 12: USA Q3 2012 comprehensive solutions development
Segments USA Q3 2012 100% 17% 19% 21% 22% 24% 80% 60% 40% 83% 81% 79% 78% 76% 20% 0% 2008 2009 2010 2011 2012 CIT CMS Comprehensive solutions development as per September YTD 12
Slide 13: Operating margin development
Financial highlights Operating margin development 12% 10% 9,8% 8,6% 8% 6% 4% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 Quarters Rolling 12 13
Slide 14: Operating margin development
Financial highlights Operating margin development 12% 10,3% 10% 8,7% 8% 6% 4% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 Adj. Quarters Rolling 12 14
Slide 15: Operating margin development
Financial highlights Operating margin development 12% 10% 8% 6% 4% 2% 0% 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 Q1 Q2 Q3 Q4 15
Slide 16: The strategy
Financial highlights The strategy Market presence + Comprehensive solutions + Operational excellence = Growth Current markets Change of Mix Price Top line Branch Margin New markets Risk 16
Slide 17: Strategy and margin drivers
Financial highlights Strategy and margin drivers Strategy Activities Q3 margin impact Market presence Existing markets • Recent acquisitions are fully integrated New markets • Acquisitions in Turkey, Czech Republic and Argentina Comprehensive Change of mix • Continued success of solutions Loomis Saf
Slide 18: Strategy and margin drivers
Financial highlights Strategy and margin drivers Strategy Activities Q3 margin impact Operational Price • Price increases above excellence wage increases (%) Branch • Increased number of performing branches Risk • Continued improvement in cost of risk 18
Slide 19: Analysis of the Branches
Financial highlights Analysis of the Branches 100% 90% 23% 22% 26% 24% 28% 26% 26% 24% 30% 30% 80% 70% 60% 50% 40% 77% 78% 74% 76% 72% 74% 74% 76% 70% 70% 30% 20% 10% 0% Q3-08 Q3-09 Q3-10 Q3-11 Q3-12 YTD-08 YTD-09 YTD-10 YTD-11 YTD-12 Performing Non-performing 19
Slide 20: Cash flow key figures
Financial highlights Cash flow key figures Cash flow key figures 2012 2011 2012 2011 Jul-Sep Jul-Sep Jan-Sep Jan-Sep DSO 38 38 38 38 Investment / depreciation ratio 1.2 1.2 1.0 1.1 Operating cash conversion, % 133 102 77 72 20
Slide 21: Creating value
Going forward Creating value Growing market with Turnaround with Strong cash flow and strong positions potential attractive dividend >5% growth Still on track for >50% dividend 2011 10% operating 2010 and 2011 (Euro notes in margin latest circulation) 2014 Stable and predictable value creation
Slide 22: Q&A
N LOOMIS Q&A
Slide 23: Thank you for listening!
Thank you for listening! www.loomis.com