Interim Report Q3/9M 2023

Magnus Ahlqvist, President and CEO Andreas Lindback, CFO

Securitas

2

Interim Report January-September 2023

Robust margin improvements driven by

technology and solutions

  • Organic sales growth of 8 percent (7) in the third quarter
    • Primary driver of organic sales growth was price increases
    • Technology and solutions had 7 percent real sales growth, including STANLEY Security for the comparable period
  • Operating margin reached 6.9 percent (6.5) in the third quarter, with all three business segments contributing
  • Price and wage balance in the Group on par in the first nine months
  • Operating cash flow was 84 percent (122) in the third quarter. Net debt to EBITDA before IAC ratio 3.1 (3.6)*
  • Integration processes and cost synergies with STANLEY Security are progressing well. The vast majority of MUSD 50 cost synergies realized
  • Positive margin effect in Ibero-America following the divestment of Securitas Argentina in July

*

Securitas

3

Interim Report January-September 2023

Strong operating margin development in technology and solutions,

representing 53 percent of Group's operating result in Q3

Sales

Real sales

EBITA**

EBITA

MSEK

growth, %

MSEK

margin, %

Business line

Q3 2023

Q3 2023

Q3 2023

Q3 2023

Security services

26 508

7

1 419

5.4

Technology and solutions

12 782

14*

1 465

11.5

Risk management services and

costs for Group functions

757

-

-120

-

% of

% of

Group

Group

sales

EBITA**

Q3 2023

Q3 2023

66

51

32

53

2

-4

Group

40 047

8

2 764

6.9

100

100

*Real sales growth including STANLEY Security for the comparable period (consolidated as of July 22, 2022) was 7% in the third quarter **EBITA = operating income before amortization

Securitas

4

Interim Report January-September 2023

Securitas North America

Good commercial activity and price increases behind organic sales growth improvement

Organic sales growth

9%

7%

5%

3%

1%

-1%

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2021

2022

2023

-3%

-5%

Organic sales growth 5% (4) in Q3, 7% (-1) in 9M

  • Driven by price increases, solid portfolio new sales and a significant client contract renewed and extended, as previously communicated
  • The Technology business unit also supported with improved installation sales and a continued healthy backlog
  • Technology and solutions sales represented 36 percent (35) of total sales in Q3
  • Client retention rate 87 percent (85)

Securitas

5

Interim Report January-September 2023

Securitas North America

Margin uplift due to good business momentum and cost synergies

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0%

Operating margin

Q1

Q2

Q3

2021 2022 2023

Operating margin 9.2% (8.7) in Q3, 8.9 % (8.0) in 9M

  • The development was driven by the Technology business unit
  • The Guarding business unit was stable, supported by active portfolio management and leverage from strong topline growth, but hampered by cost of risk and medical expenses

Securitas

6

Interim Report January-September 2023

Securitas Europe

Strong organic sales growth mainly driven by price increases

Organic sales growth

Organic sales growth 13% (7)

in Q3, 13% (8) in 9M

14%

12%

10%

8%

6%

4%

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2021

2022

2023

  • Strong price increases supported organic sales growth including impacts from the hyperinflationary environ- ment in Türkiye
  • Also supported by technology and solutions as well as the airport security business
  • Technology and solutions sales represented 32 percent (31) of total sales in Q3
  • Client retention rate 91 percent (91)

Securitas

7

Interim Report January-September 2023

Securitas Europe

Operating margin improvement driven by technology and solutions

Operating margin

8%

7%

6%

5%

4%

3%

2%

1%

0%

Q1

Q2

Q3

2021 2022 2023

Operating margin 7.0% (6.6) in Q3, 6.0 % (5.7) in 9M

  • The improvement was driven mainly from technology and solutions, active portfolio management and reduced sickness
  • Hampered by increased costs related to labor shortage, such as sub- contracting

Securitas

8

Interim Report January-September 2023

Securitas Ibero-America

A decline in organic sales growth followed

the divestment of Securitas Argentina

Organic sales growth 5% (16)

Organic sales growth

in Q3, 18% (15) in 9M

28%

24%

20%

16%

12%

8%

4%

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2021

2022

2023

  • Organic sales growth declined due to the divestiture of Securitas Argentina
  • Organic sales growth in Spain was 3 percent (6), supported by price increases and improved installation sales but hampered by active portfolio management
  • Technology and solutions sales represented 34 percent (29) of total sales in Q3
  • Client retention rate 92 percent (92)

Securitas

9

Interim Report January-September 2023

Securitas Ibero-America

Exit Argentina - the main driver of the improved

operating margin

8%

7%

6%

5%

4%

3%

2%

1%

0%

Operating margin

Operating margin 7.0% (6.1)

in Q3, 6.2% (5.9) in 9M

- The margin uplift was driven

by the divestment of

Securitas Argentina

- Improved margins in

technology and solutions and

in airport security supported,

as well as good portfolio

management

- The operating margin in

Spain and Portugal improved

compared to last year,

although continued wage

Q1

Q2

Q3

pressure in Spain hampered

2021

2022

2023

Securitas

10

Financials

Andreas Lindback

CFO

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Disclaimer

Securitas AB published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 16:50:08 UTC.