Loomis Ab · OMXSTO:LOOMIS
Loomis Ab — Investor Day (November 2010)
23 slides from Loomis Ab's investor day presentation, Nov 17, 2010
Slide 1: Foundation for growth
Foundation for growth Kenneth Högman, EVP Business Development Capital Market Day 2010-11-17
Slide 2: Every day we:
• Every day we: – transport and process cash to a value of 75 billion SEK – handle around 50 million notes in our cash centres – make around 100 000 customer stops 2
Slide 3: Cash is our focus
Cash is our focus Managing cash in society. • What will happen to cash in the future?
Slide 4: Why cash?
Why cash? • Cash is a robust method of payment • Works everywhere for everyone • The only payment method guaranteed by the state • Integrity in payments 4
Slide 5: Cash Trends
Cash Trends Cash in circulation, Western Europe (EUR bn) Cash in circulation, USA (USD bn) 14 30 CAGR 7,5 % 12 CAGR 3,8 % 25 10 20 8 15 6 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 5
Slide 6: Use of different retail payment methods in Europe
Use of different retail payment methods in Europe WE CEE Europe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cash Others Source: RBR report ”Future of cash and payments 2010”
Slide 7: Major denomination is increasing
Major denomination is increasing The value of banknotes in circulation, total and per denomination 2001-01-31 – 2010-08-31, MSEK Sweden Cash in by denomination at 120,000 Loomis Cash Center 1% 100,000 1% 80,000 Total 1,000 18% 5% 500 60,000 100 50 20 10 40,000 5 20,000 75% 0 Jan-01 Jan-03 Jan-05 Jan
Slide 8: Cash is cost efficient
Cash is cost efficient • Revised data in Social costs per transaction with volumes used in old study and with adjusted volumes previous study (SEK) • ATM transactions 4,6 4,4 4,4 were included in cost 4,2 of card calculations 3,1 2,3 Cash Debit card Credit card Study 2002 Study 2002 with adjusted vo
Slide 9: New insight with revised data
New insight with revised data Cost/transaction as function of purchase value (SEK) Net private cost per transaction Cash preferable payment 25 instrument up to 623 SEK in 20 retailer’s cost perspective 15 Break even: SEK 623 10 5 0 Transaction size Cash Debit card Credit card Source: Occam Analysis
Slide 10: ATM Installations, Global
ATM Installations, Global Number of ATMs, 1967-2015 Source: Retail Banking Research, Global ATM report 2010
Slide 11: ATM installations 2015, Global
ATM installations 2015, Global Number of ATMs, by Region, 2009 and 2015 2009 2015 Source: Retail Banking Research, Global ATM report 2010
Slide 12: ATM Installations, Western Europe
ATM Installations, Western Europe Number of ATMs by Country, 2009 Source: Retail Banking Research, Global ATM report 2010
Slide 13: ATM Densities, Western Europe
ATM Densities, Western Europe Number of ATMs per Million Population, by Country, 2009 Source: Retail Banking Research, Global ATM report 2010
Slide 14: Cash flow in society
Cash flow in society ATMs Central banks Banks General public Businesses Cashless banks can make the physical flow more efficient
Slide 15: Strengths for growth in new market
Strengths for growth in new market • Decades of experience mixed with added expertise • Learning from previous market developments • Proven systems and procedures • Customers with international presence 15
Slide 16: Refining acquistions in new markets
Refining acquistions in new markets • Local owner • International group • Focused on CIT • Balance of CIT and CMS • Low level of • Investments for efficiency investments • Lack of trust from • High credibility customers • Expensive insurances • Global insurance • Only local experience • Sharing best
Slide 17: Analyzing future markets
Analyzing future markets • Competitive landscape • Become 1 or 2 within reasonable time • Cash usage and structure • Level of outsourcing • Stability and business environment • Acquisition opportunities
Slide 18: Potential in future Loomis markets
Potential in future Loomis markets Market maturity differences offers additional growth potential Level of maturity Mostly outsourced with mix of bank and retail, higher level of CMS Partly outsourced with focus on banks Banks still controlling most of cash processing Estonia Latvia Lithuania
Slide 19: Opportunities in Europe
Opportunities in Europe Western Europe Central and Eastern Europe • Use our specialist knowledge • Growing economies • Consolidation • Develop cooperation with existing customers • Share best practice • Less developed markets • Euro expansion • Cash intensive 19
Slide 20: Examples of cash in circulation
Examples of cash in circulation Cash In Circulation ‐ Turkey Cash In Circulation ‐ Bulgaria 35,000 3.50% 10,000 16.00% 30,000 3.00% 9,000 14.00% 8,000 25,000 2.50% 12.00% 7,000 BGN (million) YTL (million) 6,000 10.00% 20,000 2.00% Cash In Circulation (Average) 5,000 8.00% Cash In Circulation (Averag
Slide 21: Opportunities in Latin America
Opportunities in Latin America • Our strengths ─ Familiar with the Latin Culture • Spain • Portugal ─ Strong organization in the US ─ Client base in Europe • Market strengths ─ Cash intensive ─ Growing economies ─ Favorable pricing ─ Consolidation 21
Slide 22: Summary
Summary • Cash is here to stay and continue to grow in most markets • ATM:s, the major cash distributor, is expected to grow almost 50% globally until 2015 • Loomis is well positioned for further growth in Europe • Ready for expanded footprint in Latin America
Slide 23: LOOMIS
\ LOOMIS Managing cash in society.