Slide 1: Q1 Interim Report January-March 2023
Q1 Interim Report January-March 2023 Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Slide 2: Strong momentum in technology and solutions
Securitas Interim Report January-March 2023 2 Strong momentum in technology and solutions — Organic sales growth of 12 percent (4) — Technology and solutions grew 13 percent, excluding STANLEY Security — A significant client contract has been renewed and expanded with the effect impacting the first
Slide 3: Strong growth and operating margin development in technology and solutions
Securitas Interim Report January-March 2023 3 Strong growth and operating margin development in technology and solutions, representing 56% of Group’s operating income before amortization % of % of Sales Real sales EBITA** EBITA Group Group MSEK growth, % MSEK margin, % sales EBITA** Business line Q1
Slide 4: Guarding business unit and price increases behind the growth improvement
Securitas Interim Report January-March 2023 4 Securitas North America Guarding business unit and price increases behind the growth improvement Organic sales growth 7% (-2) Organic sales growth — Major client contract renewed and extended as well as 9% successful price increase campaigns, and good co
Slide 5: Technology and STANLEY Security behind margin uplift
Securitas Interim Report January-March 2023 5 Securitas North America Technology and STANLEY Security behind margin uplift Operating margin Operating margin 7.6% (6.4) 8% — The development was driven 7% by Technology including STANLEY Security 6% — The business unit Guarding 5% improved with positiv
Slide 6: Organic growth driven by strong price increases
Securitas Interim Report January-March 2023 6 Securitas Europe Organic growth driven by strong price increases Organic sales growth Organic sales growth 13% (8) 14% — Strong price increases supported organic sales 12% growth including impacts from the hyperinflationary environ- 10% ment in Türkiye,
Slide 7: Support from STANLEY Security, but hampered by costs from labor shortage
Securitas Interim Report January-March 2023 7 Securitas Europe Support from STANLEY Security, but hampered by costs from labor shortage Operating margin Operating margin 5.1% (5.0) 7% 6% — The margin was supported by STANLEY Security and 5% portfolio management 4% — Hampered by increased costs relat
Slide 8: Organic sales growth fueled by price increases in Argentina
Securitas Interim Report January-March 2023 8 Securitas Ibero-America Organic sales growth fueled by price increases in Argentina Organic sales growth 23% (12) Organic sales growth — Organic sales growth was driven 25% by price increases in Argentina 21% — Organic sales growth in Spain was 6 percent
Slide 9: High margin technology and solutions sales supported the operating margin
Securitas Interim Report January-March 2023 9 Securitas Ibero-America High margin technology and solutions sales supported the operating margin Operating margin Operating margin 5.8% (5.8) 7% — Good growth of technology 6% and solutions sales supported, as did good portfolio management 5% 4% — Incre
Slide 10: Financials
Securitas 10 Financials Andreas Lindback CFO
Slide 11: Financial highlights
Securitas Interim Report January-March 2023 11 Financial highlights MSEK Q1 Q1 FY 2023 2022 2022 Sales 37 751 28 598 133 237 Organic sales growth, % 12 4 7 — Amortization of acquisition-related intangible assets MSEK –154 (–61) in Q1 Operating income before — whereof MSEK –90 (0) related to STANLEY
Slide 12: Items affecting comparability
Securitas Interim Report January-March 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 (non-ca
Slide 13: Strong tailwind from FX
Securitas Interim Report January-March 2023 13 Strong tailwind from FX Change FX SEK END-RATES MSEK Q1 2023 Q1 2022 Total, % Real*, % Q1 2023 Q1 2022 % Sales 37 751 28 598 32 26 USD 10.39 9.29 12 Operating income 2 180 1 452 50 42 EUR 11.30 10.33 9 EPS, SEK** 1.66 1.91 -13 -20 EPS, SEK, before IAC**
Slide 14: Improved cash flow compared to Q1 last year
Securitas Interim Report January-March 2023 14 Improved cash flow compared to Q1 last year MSEK Q1 Q1 FY 2023 2022 2022 Operating income before amortization 2 180 1 452 8 033 — Net investments of MSEK -69 (-43) in Q1 — CAPEX of MSEK –947 and reversal of depreciation Net investments in non- of MSEK 8
Slide 15: Net debt to EBITDA ratio improving
Securitas Interim Report January-March 2023 15 Net debt to EBITDA-ratio MSEK 45 000 Net debt to EBITDA ratio improving 40 000 35 000 30 000 MSEK 25 000 20 000 Net debt January 1, 2023 -40 534 15 000 Free cash flow -627 10 000 Acquisitions/Divestitures -5 5 000 2.2 2.1 1.9 4.0 3.8 IAC -336 0 FY2019 F
Slide 16: Financing overview
Securitas Interim Report January-March 2023 16 Financing overview MSEK — No financial covenants 35 000 — Strong liquidity at end of Q1: BSEK 5.4 30 000 — MEUR 1 029 RCF matures in 2027 and is fully undrawn 25 000 — Bridge facilities related to BUSD 3.3 STANLEY Security 20 000 acquisition — MUSD 915
Slide 17: Building the new Securitas
Securitas 17 Building the new Securitas
Slide 18: Securitas' financial targets
Securitas 18 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-
Slide 19: Securitas is positioned to deliver superior growth and higher margins
Securitas 19 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 20: The capabilities required to win
Securitas 20 The capabilities required to win Presence Data Technology
Slide 21: Clear results from executing our strategy
Securitas Interim Report January-March 2023 21 Clear results from executing our strategy — Solid operating margin at 5.8 percent (5.1) in Q1 — Good momentum in technology and solutions sales across all segments — Maintaining the price and wage balance in an inflationary environment — Operating cash
Slide 22: Securitas
Securitas