Securitas Ab Class B · OMXSTO:SECU_B
Securitas Ab Class B — Q3 2023 Earnings Presentation
23 slides from Securitas Ab Class B's earnings presentation, Nov 7, 2023
Slide 1: Interim Report Q3/9M 2023
Interim Report Q3/9M 2023 Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Slide 2: Robust margin improvements driven by technology and solutions
Securitas Interim Report January-September 2023 2 Robust margin improvements driven by technology and solutions — Organic sales growth of 8 percent (7) in the third quarter — Primary driver of organic sales growth was price increases — Technology and solutions had 7 percent real sales growth, includ
Slide 3: Strong operating margin development in technology and solutions
Securitas Interim Report January-September 2023 3 Strong operating margin development in technology and solutions, representing 53 percent of Group’s operating result in Q3 % of % of Sales Real sales EBITA** EBITA Group Group MSEK growth, % MSEK margin, % sales EBITA** Business line Q3 2023 Q3 2023
Slide 4: Securitas North America: organic sales growth improvement
Securitas Interim Report January-September 2023 4 Securitas North America Good commercial activity and price increases behind organic sales growth improvement Organic sales growth 5% (4) Organic sales growth in Q3, 7% (-1) in 9M 9% — Driven by price increases, solid portfolio new sales and a 7% sign
Slide 5: Securitas North America: margin uplift
Securitas Interim Report January-September 2023 5 Securitas North America Margin uplift due to good business momentum and cost synergies Operating margin Operating margin 9.2% (8.7) 10% in Q3, 8.9 % (8.0) in 9M 9% — The development was driven 8% by the Technology business unit 7% 6% — The Guarding b
Slide 6: Securitas Europe: strong organic sales growth from price increases
Securitas Interim Report January-September 2023 6 Securitas Europe Strong organic sales growth mainly driven by price increases Organic sales growth Organic sales growth 13% (7) in Q3, 13% (8) in 9M 14% — Strong price increases supported organic sales growth including impacts from 12% the hyperinfla
Slide 7: Securitas Europe: operating margin improvement
Securitas Interim Report January-September 2023 7 Securitas Europe Operating margin improvement driven by technology and solutions Operating margin Operating margin 7.0% (6.6) in Q3, 6.0 % (5.7) in 9M 8% 7% — The improvement was driven 6% mainly from technology and solutions, active portfolio 5% man
Slide 8: Securitas Ibero-America: decline in organic sales growth after Argentina divestment
Securitas Interim Report January-September 2023 8 Securitas Ibero-America A decline in organic sales growth followed the divestment of Securitas Argentina Organic sales growth 5% (16) Organic sales growth in Q3, 18% (15) in 9M 28% — Organic sales growth declined due to the divestiture of 24% Securit
Slide 9: Securitas Ibero-America: Exit Argentina drives improved operating margin
Securitas Interim Report January-September 2023 9 Securitas Ibero-America Exit Argentina - the main driver of the improved operating margin Operating margin Operating margin 7.0% (6.1) in Q3, 6.2% (5.9) in 9M 8% 7% — The margin uplift was driven by the divestment of 6% Securitas Argentina 5% — Impro
Slide 10: Financials
Securitas 10 Financials Andreas Lindback CFO
Slide 11: Financial highlights
Securitas Interim Report January-September 2023 11 Financial highlights Q3 Q3 9M 9M FY — Amortization of acquisition-related intangible MSEK 2023 2022 2023 2022 2022 assets MSEK –157 (–137) in Q3 — whereof MSEK –93 (-72) related to STANLEY Security Sales 40 047 36 013 117 707 95 146 133 237 Organic
Slide 12: Segment reporting change: Securitas Critical Infrastructure Services moved to Other
Securitas 12 Interim Report January-September 2023 Segment reporting change: Securitas Critical Infrastructure Services moved from Securitas North America to Other As per current segment structure Securitas North America Other — The Securitas Critical Infrastructure Services (SCIS) business unit mov
Slide 13: Items affecting comparability
Securitas 13 Interim Report January-September 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 14: Strong tailwind from FX
Securitas Interim Report January-September 2023 14 Strong tailwind from FX Change FX SEK END-RATES MSEK Q3 2023 Q3 2022 Total, % Real*, % Q3 2023 Q3 2022 % Sales 40 047 36 013 11 8 USD 11.01 11.30 -3 Operating income 2 764 2 330 19 16 EUR 11.60 10.97 6 EPS, SEK** -3.58 2.46 -246 -253 EPS, SEK, befor
Slide 15: Cash flow
Securitas Interim Report January-September 2023 15 Cash flow MSEK Q3 Q3 9M 9M FY 2023 2022 2023 2022 2022 Operating income before amortization 2 764 2 330 7 564 5 542 8 033 — Net investments of MSEK -134 (-117) in Q3 — CAPEX of MSEK –1 076 and reversal of depreciation Net investments in non- of MSEK
Slide 16: Solid deleveraging to 3.1x net debt to EBITDA-ratio before IAC
Securitas Interim Report January-September 2023 16 Solid deleveraging to 3.1x 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 1 440 4,0 Acquisitions/Divestitures -152 3,5 Items affecting comparability -1 038 3,0 2,5 Dividend p
Slide 17: Financing overview
Securitas Interim Report January-September 2023 17 Financing overview MSEK 30 000 — No financial covenants — Strong liquidity at end of Q3: BSEK 5.2 25 000 — MEUR 1 029 RCF matures in 2027 and is fully undrawn 20 000 — MUSD 2 385 STANLEY Security bridge to debt facility fully refinanced in July 2023
Slide 18: Building the new Securitas
Securitas 18 Building the new Securitas
Slide 19: Securitas' financial targets
Securitas 19 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 20: Securitas is positioned to deliver superior growth and higher margins
Securitas 20 Securitas is positioned to deliver superior growth and higher margins Taking the lead within …with quality guarding services …to become a global security …leveraging our global platform Technology… focused on profitability… solutions partner… to drive innovation — Outstanding position i
Slide 21: Investor Day March 7, 2024 - Save the date
Securitas Interim Report January-September 2023 21 Investor Day March 7, 2024 - Save the date Venue: Headquarters in Stockholm More information to follow closer to the event
Slide 22: Clear results from executing our strategy
Securitas Interim Report January-September 2023 22 Clear results from executing our strategy — Improved operating margin at 6.9 percent (6.5) in the third quarter driven by all business segments — Good momentum in technology and solutions sales across the Group — Price increases and wage cost increa
Slide 23: Securitas
Securitas