Slide 1: Interim Report Q2/H1 2023
Interim Report Q2/H1 2023 Magnus Ahlqvist, President and CEO Andreas Lindback, CFO
Slide 2: Strong margin development in North America and Europe
Securitas Interim Report January-June 2023 2 Strong margin development in North America and Europe — Organic sales growth of 11 percent (6) — Technology and solutions had 12 percent real sales growth, excluding STANLEY Security — Primary driver of organic sales growth was price increases, with volum
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 50 percent of Group’s operating result in Q2 % of % of Sales Real sales EBITA** EBITA Group Group MSEK growth, % MSEK margin, % sales EBITA** Business line Q2 2023 Q
Slide 4: Securitas North America: organic sales growth improvement
Securitas Interim Report January-June 2023 4 Securitas North America Continued solid commercial activity and price increases spur organic sales growth improvement Organic sales growth 7% (-1) Organic sales growth in Q2, 7% (-1) in H1 9% — Price increase, good portfolio new sales and significant clie
Slide 5: Securitas North America: Technology and STANLEY Security behind margin uplift
Securitas Interim Report January-June 2023 5 Securitas North America Technology and STANLEY Security behind margin uplift Operating margin Operating margin 8.3% (7.4) 9% in Q2, 8.0% (6.9) in H1 8% — The development was driven by the Technology business 7% unit 6% — The Guarding business unit 5% was
Slide 6: Securitas Europe: organic sales growth driven by price increases
Securitas Interim Report January-June 2023 6 Securitas Europe Organic sales growth driven by strong price increases and positive portfolio development Organic sales growth Organic sales growth 13% (9) in Q2, 13% (9) in H1 14% — Strong price increases supported organic sales growth including impacts
Slide 7: Securitas Europe: highest operating margin in a second quarter since 2013
Securitas Interim Report January-June 2023 7 Securitas Europe Strong uplift – highest operating margin in a second quarter since 2013 Operating margin Operating margin 5.9% (5.5) 7% in Q2, 5.5% (5.2) in H1 6% — The improvement was driven 5% mainly from active portfolio management and STANLEY 4% Secu
Slide 8: Securitas Ibero-America: organic sales growth fueled by price increases in Argentina
Securitas Interim Report January-June 2023 8 Securitas Ibero-America Organic sales growth fueled by price increases in Argentina Organic sales growth 24% (17) Organic sales growth in Q2, 24% (15) in H1 27% — Organic sales growth was driven by price increases in Argentina 23% — Organic sales growth i
Slide 9: Securitas Ibero-America: high-margin technology and solutions sales
Securitas Interim Report January-June 2023 9 Securitas Ibero-America High-margin technology and solutions sales supported the operating margin Operating margin Operating margin 5.9% (5.9) in Q2, 5.8% (5.8) in H1 7% — Good growth of technology 6% and solutions sales supported, as did good 5% portfoli
Slide 10: Financials
Securitas 10 Financials Andreas Lindback CFO
Slide 11: Financial highlights
Securitas Interim Report January-June 2023 11 Financial highlights Q2 Q2 H1 H1 FY MSEK 2023 2022 2023 2022 2022 — Amortization of acquisition-related intangible Sales 39 909 30 535 77 660 59 133 133 237 assets MSEK –157 (–61) in Q2 Organic sales growth, % 11 6 11 5 7 — whereof MSEK –92 (0) related t
Slide 12: Items affecting comparability
Securitas 12 Interim Report January-June 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 YTD June 2023 • Cloud computing: MSEK ~250 CAPEX to IAC
Slide 13: Strong tailwind from FX
Securitas Interim Report January-June 2023 13 Strong tailwind from FX Change FX SEK END-RATES MSEK Q2 2023 Q2 2022 Total, % Real*, % Q2 2023 Q2 2022 % Sales 39 909 30 535 31 25 USD 10.78 10.15 6 Operating income 2 620 1 760 49 42 EUR 11.78 10.69 10 EPS, SEK** 2.05 2.32 -12 -15 EPS, SEK, before IAC**
Slide 14: Stable cash flow in H1
Securitas Interim Report January-June 2023 14 Stable cash flow in H1 MSEK Q2 Q2 H1 H1 FY 2023 2022 2023 2022 2022 Operating income before amortization 2 620 1 760 4 800 3 212 8 033 — Net investments of MSEK -224 (-151) in Q2 — CAPEX of MSEK –1 119 and reversal of depreciation Net investments in non-
Slide 15: Stable net debt to EBITDA ratio
Securitas Interim Report January-June 2023 15 Stable net debt to EBITDA ratio MSEK Net debt to EBITDA-ratio 45 000 35 000 MSEK 25 000 Net debt January 1, 2023 -40 534 15 000 Free cash flow -85 5 000 2.2 2.1 1.9 4.0 3.7 Acquisitions/Divestitures -28 -5 000 FY2019 FY2020 FY2021 FY2022 H1 2023 Items af
Slide 16: Financing overview
Securitas Interim Report January-June 2023 16 Financing overview MSEK 35 000 — No financial covenants 30 000 — Strong liquidity at end of Q2: BSEK 5.5 25 000 — MEUR 1 029 RCF matures in 2027 and is fully undrawn 20 000 — BUSD 3.3 STANLEY Security acquisition bridge facility — The vast majority of th
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-June 2023 21 Clear results from executing our strategy — Strong operating margin at 6.6 percent (5.8) in Q2 — Good momentum in technology and solutions sales across all segments — Price increases and wage cost increases on par in an inflationary environment — Operati
Slide 22: Securitas
Securitas