Securitas Ab Class B · OMXSTO:SECU_B
Securitas Ab Class B — Q1 2024 Earnings Presentation
22 slides from Securitas Ab Class B's earnings presentation, May 8, 2024
Slide 1: Q1 Interim Report January – March 2024
Securitas Q1 Interim Report January – March 2024 Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Slide 2: Continued margin improvement in line with strategy
Securitas Interim Report January-March 2024 2 Continued margin improvement in line with strategy – Organic sales growth of 7 percent (12) in the first quarter – Technology and solutions had 7 percent real sales growth – Operating margin reached 6.0 percent (5.8) in the first quarter, driven by North
Slide 3: Both business lines improved the operating margin compared to last year
Securitas Interim Report January-March 2024 3 Both business lines improved the operating margin compared to last year Real % of EBITA % of Group sales growth Group sales margin EBITA** – Good underlying performance Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 within security services, Business line 2024 2023 2024 2023 2
Slide 4: Securitas North America: Organic sales growth driven by Guarding and Technology
Securitas Interim Report January-March 2024 4 Securitas North America Organic sales growth driven by the Guarding and Technology business units Organic sales growth Organic sales growth 4% (8) in Q1 9% — Driven by good sales momentum and price increases 7% — The Technology business unit had good org
Slide 5: Securitas North America: Strong margin uplift driven by Technology
Securitas Interim Report January-March 2024 5 Securitas North America The strong margin uplift was driven by the Technology business unit Operating margin Operating margin 8.6% (8.3) in Q1 10% — The development was driven by the Technology business unit including cost synergies 9% — The operating ma
Slide 6: Securitas Europe: Organic sales growth driven by price increases
Securitas Interim Report January-March 2024 6 Securitas Europe Organic sales growth mainly driven by price increases and hyper-inflationary effects Organic sales growth Organic sales growth 10% (13) in Q1 14% — Price increases including impacts from the hyperinflationary environment in Türkiye behin
Slide 7: Securitas Europe: Operating margin decline due to airport security
Securitas Interim Report January-March 2024 7 Securitas Europe Operating margin decline due to a weaker quarter within the airport security business Operating margin Operating margin 5.0% (5.1) in Q1 8% — The decline was driven by a weaker quarter within the airport security business 7% — The operat
Slide 8: Securitas Ibero-America: Organic sales growth decline due to Argentina divestment
Securitas Interim Report January-March 2024 8 Securitas Ibero-America The decline in organic sales growth is due to the divestment of Securitas Argentina in 2023 Organic sales growth Organic sales growth 6% (23) in Q1 28% — Organic sales growth declined due to the divestment of Securitas Argentina 2
Slide 9: Securitas Ibero-America: Improved operating margin in security services
Securitas Interim Report January-March 2024 9 Securitas Ibero-America The improved operating margin was driven by better margins within security services Operating margin Operating margin 6.7% (5.8) in Q1 8% — Improved margins in security services, positively impacted by the airport security busines
Slide 10: Financials
Securitas 10 Financials Andreas Lindback Chief Financial Officer
Slide 11: Financial highlights
Securitas Interim Report January-March 2024 11 Financial highlights MSEK Q1 2024 Q1 2023 FY 2023 Sales 39 260 37 751 157 249 Organic sales growth, % 7 12 9 – IAC of MSEK –217 (–281) Operating income before amortization 2 357 2 180 10 247 – whereof MSEK -128 (-115) related to STANLEY Security Operati
Slide 12: Items affecting comparability
Securitas Interim Report January-March 2024 1212 Items affecting comparability Significant reduction of items affecting comparability in 2024 Transformation programs – Europe and Ibero-America, announced in Q4 2020 Items affecting comparability • Total program (adjusted for Cloud computing): MSEK -1
Slide 13: Limited impact from FX
Securitas Interim Report January-March 2024 13 Limited impact from FX Change FX SEK END-RATES MSEK Q1 2024 Q1 2023 Total, % Real*,% Q1 2024 Q1 2023 % Sales 39 260 37 751 4 5 USD 10.63 10.39 2.3 Operating income 2 357 2 180 8 9 EUR 11.50 11.30 1.8 EPS, SEK 1.84 1.66 10 10 EPS, SEK, before IAC 2.12 2.
Slide 14: Cash flow
Securitas Interim Report January-March 2024 14 Cash flow MSEK Q1 2024 Q1 2023 FY 2023 Operating income before amortization 2 357 2 180 10 247 Investments in non-current tangible − First quarter seasonally the weakest cash flow quarter and intangible assets -1 071 -947 -4 114 CAPEX to sales, % 2.7 2.
Slide 15: Net debt to EBITDA ratio remaining below 3.0x financial target
Securitas Interim Report January-March 2024 15 Net debt to EBITDA ratio remaining below 3.0x financial target — Solid deleveraging to 2.9x (3.3) net debt to 3,5 EBITDA ratio MSEK 3.3 3.3 Net debt January 31, 2024 -37 530 3,0 3.1 2.9 Free cash flow -1 359 2.7 Acquisitions/Divestitures -10 2,5 Items a
Slide 16: Financing overview
Securitas Interim Report January-March 2024 1616 Financing overview — No financial covenants MSEK – Strong liquidity at end of the first quarter: BSEK 6.2 10 000 – MEUR 1 029 RCF matures in 2027 and is fully undrawn 7 500 – MEUR 500 Eurobond issued in February to refinance Q1 2024 maturities (MEUR 3
Slide 17: Building the future Securitas
Securitas Interim Report January-March 2024 Building the future Securitas
Slide 18: Unique position with an unparalleled client offering
Securitas Interim Report January-March 2024 18 We have established a unique position, with an unparalleled client offering to solve increasingly complex security needs Providing solutions globally Unmatched client offering Technology and innovation Global presence based on extensive Bespoke offering
Slide 19: Shaping Securitas for long-term, sustainable shareholder value
Securitas Interim Report January-March 2024 19 Shaping Securitas for long-term, sustainable shareholder value Operational value creation Capital allocation Resilient financial position Growth in technology and solutions <3x net debt to EBITDA Security services Investments into organic growth portfol
Slide 20: Executing our strategy is driving performance
Securitas Interim Report January-March 2024 2020 Executing our strategy is driving performance – The operating margin improved to 6.0 percent (5.8) – Both business lines security services and technology and solutions improved the operating margin – Price increases and wage cost increases on par – Op
Slide 21: The intelligent security solutions partner with world-leading technology and expertise
Securitas The intelligent security solutions partner with world-leading technology and expertise
Slide 22: Securitas
Securitas