Loomis AB · OMXSTO:LOOMIS
Loomis AB — Q1 2009 Earnings Presentation
13 slides from Loomis AB's earnings presentation, Apr 22, 2009
Slide 1: January – March 2009
January – March 2009 President and CEO: Lars Blecko CFO: Jarl Dahlfors Stockholm April 22, 2009
Slide 2: Highlights Q1 2009
Highlights Q1 2009 Increased operating (EBITA) margin 5.8 percent (5.3). Earnings per share increased 55 percent to 1.44 (0.93). Significant positive FX effects. US reorganizationed and one layer (”Region”) eliminated. New organization with 12 District reports to Country President, Jarl Dahl
Slide 3: Financial highlights – income statement
Financial highlights – income statement Income statement (MSEK) Jan-Mar Jan-Mar Variance 2009 2008 % Sales 3 187 2 647 20 Organic sales growth, % -1 2 Operating income before amortization (EBITA) 185 141 32 Operating margin, % 5,8 5,3 Operating income (EBIT) 181 136 33 Income before taxes (EBT) 150
Slide 4: Revenue growth – components
Revenue growth – components Consolidated Q1 revenue with an organic negative growth -0,7% US +2% organic growth that includes: => price increases => a negative fuel fee impact EU -2% negative growth that includes: => price increases => contract losses in last year 2008 => marginal volume impac
Slide 5: Potential impact by recession
Potential impact by recession Postive effects: Present increase in proportion of cash purchases ++ lower staff turnover +++ increased outsourcing from banks, focus on core - Negative effects: increased risk of robbery ++ reduced consumtion ++ increased risk for bad debt - + = correct - =
Slide 6: Financial highlights – Ebita margin development
Financial highlights – Ebita margin development 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 Quarters Rolling 12 Third consecutive quarter with improved margin year on year. Negative seasonality impact in H1, typically lower earnings than H2.
Slide 7: Segment - Europe
Segment - Europe Sales development MSEK MSEK Continued focus on margin 7 600 2 200 7 400 2 000 improvement. 7 200 1 800 Rolling 12 Quarters 7 000 1 600 6 800 1 400 Negative organic sales development of 6 600 1 200 -2 percent, mainly due to contract 6 400 1 000 losses, fewer invoicing days and Q1 Q
Slide 8: Segments - USA
Segments - USA Sales development MUSD MUSD Focus on margin improvement by 700 170 continued restructuring and turn- 660 160 Rolling 12 around of poor branches. Quarters 620 150 580 140 Reorganization, Regional layer 540 130 eliminated and the 27 Area structure 500 120 replaced by 12 Districts. Q1
Slide 9: Sales by product line – Q1
Sales by product line – Q1 2008 - Q1 2009 - Q1 3% 2% 31% 66% 32% 66% Europe 2008 - Q1 2009 - Q1 1% 1% 16% 83% 17% 82% USA Transport CMS Technical => No material changes in product mix.
Slide 10: Financial highlights – Free cash flow
Financial highlights – Free cash flow Free cash flow (MSEK) Jan-Mar Jan-Mar 2009 2008 Operating income before amortization 185 141 Depreciation 198 157 Change in accounts receivable 15 -77 DSO 39 44 Change in other operating capital employe -135 -385 Cash flow from operations before inves 263 -164 I
Slide 11: Financial highlights – net debt
Financial highlights – net debt Net debt development (MSEK) Net debt December 31. 2008 -2 375 Free cash flow 18 Acquisitions and divestitures - IAC payments -2 Dividend - Change in net debt 16 FX translation -89 Net debt March, 2009 -2 448 - Covenant of 2,75 Net debt / EBITDA in credit facility 1,45
Slide 12: Wrap up
Wrap up ”zero” organic growth, marginal volume decline from economic down turn EBITA margin, % increased 0.5%-pp year on year. EPS growth of 55% Continued focus on profitability through increased operational efficiency, i.e. price, branch and risk. Impact from financial crisis still limite
Slide 13: Managing Cash in Society
Managing Cash in Society