Slide 1: Loomis Interim Report January – June 2012
Loomis Interim Report January – June 2012 President and CEO: Lars Blecko Stockholm August 1, 2012
Slide 2: Contents
Contents • Highlights Q2 2012 • Segments • Financial highlights • Going forward • Q&A 2
Slide 3: Highlights Q2 2012
Highlights Q2 2012 • Real revenue growth 3 percent (7) • Organic growth -1 percent (2) • Operating margin 7.8 percent (7.3) • Increased operational efficiency in both segments • On track to reach long-term target of 10% operating margin • Significant EPS growth SEK 1.80 (0.89) 3
Slide 4: Statement of income
Highlights Q2 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,898 2,683 5,720 5,210 Real growth, % 3 7 6 4 Organic growth, % -1 2 1 1 Operating income (EBITA) 225 195 437 374 Operating margin, % 7.8 7.3 7.6 7.2 Amortization -7 -5 -13 -9
Slide 5: Statement of income
Highlights Q2 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,898 2,683 5,720 5,210 Real growth, % 3 7 6 4 Organic growth, % -1 2 1 1 Operating income (EBITA) 225 195 437 374 Operating margin, % 7.8 7.3 7.6 7.2 Amortization -7 -5 -13 -9
Slide 6: Statement of income
Highlights Q2 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,898 2,683 5,720 5,210 Real growth, % 3 7 6 4 Organic growth, % -1 2 1 1 Operating income (EBITA) 225 195 437 374 Operating margin, % 7.8 7.3 7.6 7.2 Amortization -7 -5 -13 -9
Slide 7: Statement of income
Highlights Q2 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,898 2,683 5,720 5,210 Real growth, % 3 7 6 4 Organic growth, % -1 2 1 1 Operating income (EBITA) 225 195 437 374 Operating margin, % 7.8 7.3 7.6 7.2 Amortization -7 -5 -13 -9
Slide 8: Statement of income
Highlights Q2 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,898 2,683 5,720 5,210 Real growth, % 3 7 6 4 Organic growth, % -1 2 1 1 Operating income (EBITA) 225 195 437 374 Operating margin, % 7.8 7.3 7.6 7.2 Amortization -7 -5 -13 -9
Slide 9: Statement of income
Highlights Q2 2012 Statement of income Statement of income 2012 2011 2012 2011 MSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Revenue 2,898 2,683 5,720 5,210 Real growth, % 3 7 6 4 Organic growth, % -1 2 1 1 Operating income (EBITA) 225 195 437 374 Operating margin, % 7.8 7.3 7.6 7.2 Amortization -7 -5 -13 -9
Slide 10: Europe Q2 2012
Segments Europe Q2 2012 Revenue development Quarters, MSEK Rolling 12, MSEK • Real growth 2 percent (4) 2 500 10 000 2 000 8 000 • Acquisition of Vigencia, Argentina 1 500 6 000 • Integration of Efectivox proceeding better than plan 1 000 4 000 • Organic growth -2 percent (3) 500 2 000 0 0 • Termina
Slide 11: USA Q2 2012
Segments USA Q2 2012 Revenue development Quarters, MUSD Rolling 12, MUSD 200 700 • Real revenue growth 3 percent (13) 180 650 • Organic growth -1 percent (0) 160 600 140 550 • Impact from fuel surcharges insignificant 120 500 100 450 • Pendum portfolio reduction of approximately 80 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Operating margin development
Financial highlights Operating margin development 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 Quarters Rolling 12 12
Slide 13: The strategy
Financial highlights The strategy Market presence + Comprehensive solutions + Operational excellence = Growth Current markets Change of Mix Price Top line Branch Margin New markets Risk 13
Slide 14: Strategy and margin drivers
Financial highlights Strategy and margin drivers Strategy Activities Q2 margin impact Market presence Current markets • Integration of Pendum, OAS and Efectivox New markets • Acquisitions in Turkey, Czech Republic and Argentina Comprehensive Change of mix • Continued success of solutions Loomis Safe
Slide 15: Strategy and margin drivers
Financial highlights Strategy and margin drivers Strategy Activities Q2 margin impact Operational Price • Price increases above excellence wage increases (%) Branch • Increase in number of performing Branches Risk • Lower than prior years 15
Slide 16: Analysis of the Branches
Financial highlights Analysis of the Branches 100% 90% 25% 30% 28% 27% 26% 80% 70% 60% 50% 40% 70% 72% 73% 74% 75% 30% 20% 10% 0% YTD-08 YTD-09 YTD-10 YTD-11 YTD-12 Performing Non-performing 16
Slide 17: Cash flow key figures
Financial highlights Cash flow key figures Cash flow key figures 2012 2011 2012 2011 Apr-Jun Apr-Jun Jan-Jun Jan-Jun DSO 39 39 39 39 Investment / depreciation ratio 0.8 1.2 0.8 1.0 Operating cash conversion, % 56 58 42 51 17
Slide 18: Going forward
Going forward Market presence • Czech Republic reaching planned operating margin • Pendum and OAS are fully integrated • Integration of Efectivox in Spain proceeding better than plan • Vigencia in Argentina creates a base for future expansion • Evaluation of acquisition targets in both existing and
Slide 19: Creating value
Going forward Creating value Growing Growing market market Strong Strong cash cash flow flow Turnaround Turnaround with with with with strong strong and and attractive attractive potential potential positions positions dividend dividend >5% growth Still on track for >50% dividend 2011 10% operating
Slide 20: Q&A
Q&A
Slide 21: Thank you for listening!
Thank you for listening! www.loomis.com