Securitas

Annual Report • Feb 6, 2025

Full Year Report Q4 2024 | January–December 2024

October–December 2024

7.3%

Operating margin

• Total sales MSEK 41 794 (39 542)
• Organic sales growth 4 percent (6)
• Real sales growth within technology and solutions 6 percent (6)
• Operating income before amortization MSEK 3 036 (2 683)
• Operating margin 7.3 percent (6.8)
• Earnings per share, SEK 2.86 (2.11)
• Earnings per share before IAC, SEK 3.05 (2.44)
• Cash flow from operating activities 153 percent (166)

JANUARY–DECEMBER 2024

• Total sales MSEK 161 921 (157 249)
• Organic sales growth 5 percent (9)
• Real sales growth within technology and solutions 6 percent (34)
• Operating income before amortization MSEK 11 200 (10 247)
• Operating margin 6.9 percent (6.5)
• Earnings per share, SEK 9.01 (2.24)
• Earnings per share before IAC, SEK 10.81 (9.59)
• Net debt/EBITDA ratio 2.5 (2.7)
• Cash flow from operating activities 84 percent (80)
• Proposed dividend for 2024 of SEK 4.50 (3.80) per share, distributed in two equal installments

CONTENTS

Comments from the President and CEO	3
January–December summary	4
Group development	6
Development in the Group's business segments	8
Cash flow	11
Capital employed and financing	12
Acquisitions and divestitures	14
Changes in Group Management	15

Other significant events	15
Risks and uncertainties	16
Parent Company operations	17
Consolidated financial statements	18
Segment overview	22
Notes	24
Parent Company	31
Financial information	32

Comments from the President and CEO

"Strong strategic execution and performance in 2024"

We concluded 2024 with an operating margin of 7.3 percent (6.8) in the fourth quarter. The improvement was mainly driven by the security services business in Europe. Security services in North America and our global technology and solutions business also supported.

Organic sales growth was 4 percent in the fourth quarter. Real sales growth in our technology and solutions business was 6 percent, supporting the shift in the mix toward higher-margin business.

Operating cash flow was 153 percent (166) in the fourth quarter and 84 percent (80) for the full year. Cash flow generation in 2024 supported an accelerated deleveraging to a net debt/EBITDA ratio of 2.5 (2.7) at year-end.

SHAPING SECURITAS FOR LONG-TERM SUSTAINABLE SHAREHOLDER VALUE

In a time of heightened global uncertainty and an increased threat environment, clients are looking for a future-oriented partner with extensive security expertise. Our long-term partnership approach, combined with our global presence, technology and digital capabilities is a critical differentiator that makes us the partner of choice.

Our business model is resilient, and we drive operational value creation through growth in technology and solutions, improved portfolio profitability in

security services, cost efficiency and digital innovation. In the fourth quarter, our margin on new sales improved thanks to a strengthened client offering. Additionally, active portfolio management contributed to improved profitability in our security services business, especially in Europe.

Our technology and solutions business delivered healthy growth and operating margin improvement in the quarter. By the end of the year, we closed the STANLEY Security integration program, and I am pleased with how we have successfully managed this large and complex process. With a strong value proposition in place and the integration now behind us, we are in a good position to focus on operational delivery and client engagement.

After a few years of extensive work under our transformation programs to create a modern and more digital Securitas, we have now completed yet another milestone with the finalization of the Ibero-American program. In Europe, we still have some work remaining and will continue our implementation efforts in 2025 and 2026, albeit at continued lower investment levels.

As we build the new Securitas, we continue to create scale and increased automation opportunities. In January 2025, we started to execute additional identified opportunities to run our business at a structurally lower cost level which will deliver MSEK 200 in

annualized savings by the end of 2025, primarily in Europe. The total cost of this business optimization program is MSEK 225, and will be accounted for as an item affecting comparability in 2025. Total investments related to items affecting comparability will be materially reduced in 2025 to approximately MSEK 375.

As part of our strategy, we are continuing to assess our business mix and presence to enhance our performance and long-term competitive position. Late in the fourth quarter, we signed a put option agreement to divest our airport security business in France due to the limited opportunity to pursue our longterm strategy at a healthy financial performance.

2024 – A STRONG YEAR

As I look back at 2024, I am proud of the Securitas team and our performance. We have taken important steps on our journey to transform Securitas into the leading intelligent security partner, strengthened our operating margin to 6.9 percent (6.5) and improved earnings per share by 15 percent in 2024. We still have important work ahead of us, but we are on track with our strategic plan, and we remain committed to achieving our target of an 8 percent operating margin by the end of 2025.

Magnus Ahlqvist President and CEO

January–December summary

As per the first quarter 2024, certain key ratios and definitions have been changed. Refer to note 5 for further information.

FINANCIAL SUMMARY

	Q4		Change, %		Full Year		Change, %
MSEK	2024	2023	Total	Real	2024	2023	Total	Real
Sales	41 794	39 542	6	4	161 921	157 249	3	4
Organic sales growth, %	4	6			5	9
Operating income before amortization	3 036	2 683	13	11	11 200	10 247	9	11
Operating margin, %	7.3	6.8			6.9	6.5
Amortization of acquisition-related intangible assets	–184	–152			–639	–620
Acquisition-related costs	31	–3			20	–10
Items affecting comparability 1)	–128	–404			–1 285	–4 669
Operating income after amortization	2 755	2 124	30	27	9 296	4 948	88	90
Financial income and expenses	–529	–628			–2 277	–2 115
Income before taxes	2 226	1 496	49	43	7 019	2 833	148	152
Net income for the period	1 640	1 209	36	39	5 172	1 297	299	303
Earnings per share, SEK	2.86	2.11	35	39	9.01	2.24	302	306
Earnings per share, before items affecting comparability, SEK	3.05	2.44	25	19	10.81	9.59	13	15
Cash flow from operating activities	4 636	4 465			9 395	8 185
Cash flow from operating activities, %	153	166			84	80
Free cash flow	3 663	3 498			5 077	4 938
Net debt/EBITDA ratio	–	–			2.5	2.7

1) Refer to note 7 for further information.

GROUP FINANCIAL TARGETS

The Group operating margin was 6.9 percent (6.5), with a target of reaching 8 percent by the end of 2025. Real sales growth in technology and solutions sales was 6 percent (34) in 2024 with an annual average target of 8–10 percent. Real sales growth including STANLEY Security for the comparable period (consolidated as of July 22, 2022) was 9 percent for the full year 2023.

Net debt to EBITDA ratio was 2.5 (2.7) with a target of below 3.0x. The operating cash flow was 84 percent (80)

of operating income before amortization with an average target of 70–80 percent.

ANNUAL GENERAL MEETING 2025

The Annual General Meeting (AGM) of Securitas AB will be held on Thursday, May 8, 2025, in Stockholm. Additional information about the AGM will be published in the notice convening the AGM and on www.securitas.com/agm2025. The 2024 Annual and Sustainability Report of Securitas AB will be published on www.securitas.com on March 28, 2025.

PROPOSED DIVIDEND

The Board of Directors proposes a dividend for 2024 of SEK 4.50 (3.80) per share, distributed to the shareholders in two equal installments of SEK 2.25 per share. The total proposed dividend amounts to 50 percent of net income. The record date for the first payment is proposed to be May 12, 2025, and for the second payment November 20, 2025. If the Annual General Meeting so resolves, the first payment is expected to be distributed by Euroclear Sweden AB starting May 15, 2025, and the second payment starting November 25, 2025.

ORGANIC SALES GROWTH AND OPERATING MARGIN PER BUSINESS SEGMENT

	Organic sales growth				Operating margin
	Q4		Full Year		Q4		Full Year
%	2024	2023	2024	2023	2024	2023	2024	2023
Securitas North America	2	4	3	6	9.3	9.3	9.1	9.0
Securitas Europe	5	11	8	12	7.0	6.6	6.5	6.1
Securitas Ibero-America	3	7	6	15	7.5	7.2	7.0	6.4
Group	4	6	5	9	7.3	6.8	6.9	6.5

QUARTERLY FINANCIAL SUMMARY PER BUSINESS LINE

	Sales, MSEK		Real sales growth, %		Operating income before amortization, MSEK		Operating margin, %		% of Group sales		% of Group operating income before amortization
Business line	Q4 2024	Q4 2023	Q4 2024	Q4 2023	Q4 2024	Q4 2023	Q4 2024	Q4 2023		Q4 2024	Q4 2023	Q4 2024	Q4 2023
Security services	27 156	25 845	3	5	1 506	1 271	5.5	4.9		65	65	50	47
Technology and solutions	13 849	12 947	6	6	1 613	1 473	11.6	11.4		33	33	53	55
Risk management services and costs for Group functions	789	750	–	–	–83	–61	–	–		2	2	–3	–2
Group	41 794	39 542	4	4	3 036	2 683	7.3	6.8		100	100	100	100

%		% of Group sales	% of Group operating income before amortization

YEAR TO DATE FINANCIAL SUMMARY PER BUSINESS LINE

	Sales, MSEK		Real sales growth, %		Operating income before amortization, MSEK		Operating margin, %		% of Group sales			% of Group operating income before amortization
Business line	FY 2024	FY 2023	FY 2024	FY 2023	FY 2024	FY 2023	FY 2024	FY 2023		FY 2024	FY 2023	FY 2024	FY 2023
Security services	105 889	103 677	3	8	5 854	5 123	5.5	4.9		65	66	52	50
Technology and solutions	53 167	50 514	6	34*	5 773	5 463	10.9	10.8		33	32	52	53
Risk management services and costs for Group functions	2 865	3 058	–	–	–427	–339	–	–		2	2	–4	–3
Group	161 921	157 249	4	15	11 200	10 247	6.9	6.5		100	100	100	100

%		% of Group sales	% of Group operating income before amortization

* Real sales growth including STANLEY Security for the comparable period (consolidated as of July 22, 2022) was 9 percent for the full year 2023.

For further information regarding the revenue from the Group's business lines, refer to note 3.

Group development

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

QUARTERLY OPERATING INCOME DEVELOPMENT

Operating margin, %

OCTOBER–DECEMBER 2024

SALES DEVELOPMENT

Sales amounted to MSEK 41 794 (39 542) and organic sales growth was 4 percent (6) in the fourth quarter, supported by all three business segments. Extra sales in the Group amounted to 12 percent (13) of total sales.

Real sales growth, including acquisitions and divestitures and adjusted for changes in exchange rates, was 4 percent (4).

Technology and solutions sales amounted to MSEK 13 849 (12 947) or 33 percent (33) of total sales in the fourth quarter. Real sales growth, including acquisitions and divestitures and adjusted for changes in exchange rates, was 6 percent (6).

OPERATING INCOME BEFORE AMORTIZATION

Operating income before amortization was MSEK 3 036 (2 683) which, adjusted for changes in exchange rates, represented a real change of 11 percent (9).

The Group's operating margin was 7.3 percent (6.8), an improvement driven by Securitas Europe and Securitas Ibero-America. Other also contributed to the improvement, positively impacted by the development in Securitas AMEA and Securitas Critical Infrastructure Services.

OPERATING INCOME AFTER AMORTIZATION

Amortization of acquisition-related intangible assets amounted to MSEK –184 (–152).

Acquisition-related costs totaled MSEK 31 (–3). For further information refer to Acquisitions and divestitures on page 14 and note 6.

Items affecting comparability were MSEK –128 (–404) whereof MSEK –107 (–196) related to the acquisition of STANLEY Security and MSEK –21 (–208) were related to the transformation programs in Europe and Ibero-America. For further information refer to note 7.

FINANCIAL INCOME AND EXPENSES

Financial income and expenses amounted to MSEK –529 (–628). The impact from IAS 29 hyperinflation was MSEK 35 (1) relating to the net monetary gain. For further information refer to note 8. Financial income and expense also include foreign currency gains and losses, net, of MSEK 30 (–1). The underlying improvement in financial income and expenses mainly derives from lower debt and lower interest rates.

INCOME BEFORE TAXES

Income before taxes amounted to MSEK 2 226 (1 496).

TAXES, NET INCOME AND EARNINGS PER SHARE

The Group's tax rate was 26.3 percent (19.2). The tax rate before tax on items affecting comparability was 25.7 percent (26.4).

Net income was MSEK 1 640 (1 209).

Earnings per share before and after dilution amounted to SEK 2.86 (2.11). Earnings per share before and after dilution and before items affecting comparability amounted to SEK 3.05 (2.44).

JANUARY–DECEMBER 2024

SALES DEVELOPMENT

Sales amounted to MSEK 161 921 (157 249) and organic sales growth was 5 percent (9) for the full year, supported by all business segments. The comparative included the now divested Securitas Argentina for the first six months. Extra sales in the Group amounted to 13 percent (12) of total sales.

Real sales growth, including acquisitions and divestitures and adjusted for changes in exchange rates, was 4 percent (15).

Technology and solutions sales amounted to MSEK 53 167 (50 514) or 33 percent (32) of total sales. Real sales growth, including acquisitions and divestitures and adjusted for changes in exchange rates, was 6 percent (34).

OPERATING INCOME BEFORE AMORTIZATION

Operating income before amortization was MSEK 11 200 (10 247) which, adjusted for changes in exchange rates, represented a real change of 11 percent (24).

The Group's operating margin was 6.9 percent (6.5), an improvement

driven by all business segments. Price increases in the Group were slightly ahead of wage cost increases for the full year.

OPERATING INCOME AFTER AMORTIZATION

Amortization of acquisition-related intangible assets amounted to MSEK –639 (–620).

Acquisition-related costs totaled MSEK 20 (–10). For further information refer to Acquisitions and divestitures on page 14 and note 6.

Items affecting comparability were MSEK –1 285 (–4 669) whereof MSEK –594 (–662) related to the acquisition of STANLEY Security, MSEK –155 (–686) related to the transformation programs in Europe and Ibero-America, and MSEK –536 related to the provision for the Paragon investigation in the third quarter. In 2023 MSEK –3 321 was related to the capital loss from the divestment of Securitas Argentina. For further information refer to note 7.

FINANCIAL INCOME AND EXPENSES

Financial income and expenses amounted to MSEK –2 277 (–2 115). The impact from IAS 29 hyperinflation was MSEK 129 (186) relating to the net monetary gain. For further information refer to note 8. Financial income and expense also include foreign currency gains, net, of MSEK 31 (116).

INCOME BEFORE TAXES

Income before taxes amounted to MSEK 7 019 (2 833).

TAXES, NET INCOME AND EARNINGS PER SHARE

The Group's tax rate was 26.3 percent (54.2). The full year tax rate for 2023 was negatively affected by the non-deductible capital loss from the divestiture of Securitas Argentina and positively affected by the reversal of tax provisions related to Spanish tax cases after a judgment from the Audiencia Nacional in Spain in favor of Securitas. The tax rate before tax on items affecting comparability was 25.3 percent (26.6).

Net income was MSEK 5 172 (1 297).

Earnings per share before and after dilution amounted to SEK 9.01 (2.24). Earnings per share before and after dilution and before items affecting comparability amounted to SEK 10.81 (9.59).

Development in the Group's business segments

Securitas North America

Securitas North America provides protective services in the US, Canada and Mexico. The operations in the US are organized in three specialized units – Guarding, Technology and Pinkerton Corporate Risk Management.

		Q4 Change, %		Full Year		Change, %
MSEK	2024	2023	Total	Real	2024	2023	Total	Real
Total sales	16 748	15 842	6	2	64 271	62 561	3	3
Organic sales growth, %	2	4			3	6
Share of Group sales, %	40	40			40	40
Operating income before amortization	1 552	1 479	5	1	5 819	5 625	3	3
Operating margin, %	9.3	9.3			9.1	9.0
Share of Group operating income, %	51	55			52	55

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

Operating margin, %

QUARTERLY OPERATING INCOME DEVELOPMENT

OCTOBER–DECEMBER 2024

Organic sales growth was 2 percent (4) in the fourth quarter, supported by good growth in the Technology business unit. Organic sales growth in the Guarding business unit was primarily price driven, although hampered by the termination of an airport security contract as previously communicated.

Technology and solutions sales accounted for MSEK 6 186 (5 771) or 37 percent (36) of total sales in the business segment, with real sales growth of 4 percent (5) in the fourth quarter.

The operating margin was 9.3 percent (9.3). The operating margin in the Guarding business improved, while a weaker performance in Pinkerton hampered due to system implementation challenges. The operating margin in the Technology business unit was slightly lower than last year, on a strong comparative.

The Swedish krona exchange rate weakened against the US dollar, which had a positive impact on operating income in Swedish krona. The real change in operating income was 1 percent (9) in the fourth quarter.

JANUARY–DECEMBER 2024

Organic sales growth was 3 percent (6) for the full year, supported by the Guarding and Technology business units. Organic sales growth in Guarding stemmed primarily from price increases but was hampered by the termination of an airport security contract as previously communicated. The client retention rate was 87 percent (90).

Technology and solutions sales accounted for MSEK 24 064 (22 704) or 37 percent (36) of total sales in the business segment, with real sales growth of 7 percent (42).

The operating margin was 9.1 percent (9.0) for the full year, an improvement supported by the Guarding and Technology business units, while Pinkerton's performance hampered the margin due to system implementation challenges.

The Swedish krona exchange rate was unchanged against the US dollar, which had a neutral impact on operating income in Swedish krona. The real change in operating income was 3 percent (28).

Securitas Europe

Securitas Europe provides protective services in 21 countries. The full range of protective services includes on-site, mobile and remote guarding, technology and solutions, fire and safety services and corporate risk management.

		Q4		Change, %		Full Year		Change, %
MSEK	2024	2023	Total	Real	2024	2023	Total	Real
Total sales	18 010	17 084	5	5	70 177	66 605	5	8
Organic sales growth, %	5	11			8	12
Share of Group sales, %	43	43			43	42
Operating income before amortization	1 255	1 123	12	12	4 584	4 095	12	15
Operating margin, %	7.0	6.6			6.5	6.1
Share of Group operating income, %	41	42			41	40

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

QUARTERLY OPERATING INCOME DEVELOPMENT

Operating margin, %

OCTOBER–DECEMBER 2024

Organic sales growth was 5 percent (11) in the fourth quarter, driven by price increases including the impact of the hyperinflationary environment in Türkiye. Technology and solutions also supported organic sales growth.

Technology and solutions sales accounted for MSEK 6 088 (5 728) or 34 percent (34) of total sales in the business segment, with real sales growth of 7 percent (6) in the fourth quarter.

The operating margin was 7.0 percent (6.6), an improvement stemming from the security services business, mainly driven by improved margins on new sales and active portfolio management. The airport security business also supported this improvement, while the operating margin in the technology and solutions business line was slightly lower than last year, on a strong comparative.

The Swedish krona exchange rate was unchanged against the euro and the Turkish lira, which had a neutral impact on operating income in Swedish krona. The real change in operating income was 12 percent (17) in the fourth quarter.

JANUARY–DECEMBER 2024

Organic sales growth was 8 percent (12) for the full year and continued to be driven by price increases including the impact of the hyperinflationary environment in Türkiye. Technology and solutions also supported organic sales growth, as did higher sales in airport security. The client retention rate was 92 percent (91).

Technology and solutions sales accounted for MSEK 23 027 (22 063) or 33 percent (33) of total sales in the business segment, with real sales growth of 6 percent (34) for the full year.

The operating margin was 6.5 percent (6.1). The improvement stemmed from the security services business, primarily driven by improved margins on new sales and active portfolio management, as well as a positive price and wage balance. The airport security business also supported the improvement, while the operating margin in the technology business weakened due to a negative impact from the ongoing system and support transitions.

The Swedish krona exchange rate strengthened primarily against the Turkish lira, which had a negative impact on operating income in Swedish krona. The real change in operating income was 15 percent (25) for the full year.

Securitas Ibero-America

Securitas Ibero-America provides protective services in Spain, Portugal and six Latin American countries. The full range of protective services includes on-site, mobile and remote guarding, technology and solutions, fire and safety services and corporate risk management.

		Q4		Change, %		Full Year		Change, %
MSEK	2024	2023	Total	Real	2024	2023	Total	Real
Total sales	3 738	3 613	3	3	14 845	15 449	–4	–3
Organic sales growth, %	3	7			6	15
Share of Group sales, %	9	9			9	10
Operating income before amortization	279	259	8	8	1 042	991	5	6
Operating margin, %	7.5	7.2			7.0	6.4
Share of Group operating income, %	9	10			9	10

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

QUARTERLY OPERATING INCOME DEVELOPMENT

OCTOBER–DECEMBER 2024

Organic sales growth was 3 percent (7) in the fourth quarter, driven by good technology and solutions growth and price increases in security services. Organic sales growth in Spain was 3 percent (6).

Technology and solutions sales accounted for MSEK 1 393 (1 253) or 37 percent (35) of total sales in the business segment, with real sales growth of 11 percent (3).

The operating margin was 7.5 percent (7.2). The improvement was driven by technology and solutions.

The Swedish krona exchange rate was unchanged against most currencies in the segment, which had a neutral impact on operating income in Swedish krona. The real change in operating income was 8 percent (3) in the fourth quarter.

JANUARY–DECEMBER 2024

Organic sales growth was 6 percent (15) for the full year, with the comparative including the divested Securitas Argentina for the first six months. Organic sales growth in Spain was 6 percent (5), supported by technology and solutions sales and price increases. Organic sales growth in Latin America was primarily driven by price increases. The client retention rate was 90 percent (93).

Technology and solutions sales accounted for MSEK 5 322 (5 011) or 36 percent (32) of total sales in the business segment, with real sales growth of 7 percent (9). Excluding the impact of the divestment of Securitas Argentina, real sales growth was 11 percent for the full year.

The operating margin was 7.0 percent (6.4). The improvement was driven by technology and solutions, and supported by the divestment of Securitas Argentina.

The Swedish krona exchange rate strengthened against most currencies in the segment, which had a negative impact on operating income in Swedish krona. The real change in operating income was 6 percent (8) for the full year.

Cash flow

CASH FLOW

MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Operating income before amortization	3 036	2 683	11 200	10 247
Investments in non-current tangible and intangible assets	–1 015	–972	–4 029	–4 114
Capital expenditure in % of sales	2.4	2.5	2.5	2.6
Reversal of depreciation	996	841	3 723	3 556
Change in trade receivables	852	725	–837	–2 986
Change in operating payables	762	802	181	1 477
Change in other net working capital	5	386	–843	5
Cash flow from operating activities	4 636	4 465	9 395	8 185
Cash flow from operating activities, %	153	166	84	80
Financial income and expenses paid	–355	–420	–2 156	–1 899
Current taxes paid	–618	–547	–2 162	–1 348
Free cash flow	3 663	3 498	5 077	4 938

As per the first quarter 2024, certain key ratios and definitions have been changed. Refer to note 5 for further information.

QUARTERLY CASH FLOW FROM OPERATING ACTIVITIES

Cash flow from operating activities, %

CASH FLOW FROM OPERATING ACTIVITIES, %

Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024
166 %	–15 %	60 %	115 %	153 %

OCTOBER–DECEMBER 2024

Cash flow from operating activities amounted to MSEK 4 636 (4 465), equivalent to 153 percent (166) of operating income before amortization.

The cash flow in the fourth quarter was supported by a positive development of trade receivables from lower Days of Sales Outstanding (DSO) and reduced organic sales growth. Strong cash generation in the technology business, primarily in North America, was the main contributor.

Free cash flow was MSEK 3 663 (3 498), positively impacted by a stronger operating cash flow and lower financial income and expenses paid.

JANUARY–DECEMBER 2024

Cash flow from operating activities amounted to MSEK 9 395 (8 185), equivalent to 84 percent (80) of operating income before amortization.

The cash flow improvement was positively impacted by trade receivables from lower Days of Sales Outstanding (DSO) and reduced organic sales growth. Improved cash generation in the Technology business unit in North America was the main contributor.

Free cash flow was MSEK 5 077 (4 938), positively impacted by a stronger operating cash flow, while negatively impacted by higher financial income and expenses paid and by increased current taxes paid primarily due to higher taxable earnings and timing differencies.

Capital employed and financing

CAPITAL EMPLOYED AND FINANCING

MSEK	Dec 31, 2024	Dec 31, 2023
Non-current tangible and intangible assets	11 716	11 281
Trade receivables	27 843	25 367
Operating payables	–18 534	–17 649
Other net working capital	–156	–628
Net working capital	9 153	7 090
Net working capital as % of sales	6	5
Operating capital employed	20 869	18 371
Goodwill	54 895	50 916
Acquisition-related intangible assets	6 132	6 340
Shares in associated companies	380	354
Other capital employed	–1 673	–1 753
Capital employed	80 603	74 228
Return on capital employed, %	14	14
Net debt	–37 923	–37 530
Shareholders' equity	42 680	36 698

As per the first quarter 2024, certain key ratios and definitions have been changed. Refer to note 5 for further information.

NET DEBT DEVELOPMENT

MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Opening balance	–38 469	–42 579	–37 530	–40 534
Free cash flow	3 663	3 498	5 077	4 938
Acquisitions/divestitures	–24	–18	–186	–170
Items affecting comparability	–143	–365	–882	–1 403
Dividend paid	–1 088	–974	–2 177	–1 977
Lease liabilities	–73	–48	171	291
Change in net debt	2 335	2 093	2 003	1 679
Revaluation of financial instruments	148	–129	283	2
Translation differences	–1 937	3 085	–2 679	1 323
Closing balance	–37 923	–37 530	–37 923	–37 530

NET DEBT TO EBITDA RATIO

CAPITAL EMPLOYED AS OF DECEMBER 31, 2024

The net working capital was MSEK 9 153 (7 090), corresponding to 6 percent of sales (5), adjusted for the full-year sales of acquired and divested entities. The Group's operating capital employed was MSEK 20 869 (18 371). The translation of foreign operating capital employed to Swedish krona increased the Group's operating capital employed by MSEK 1 019.

The annual impairment test of all Cash Generating Units (CGU), which is required under IFRS, took place

during the third quarter of 2024 in conjunction with the business plan process for 2025. None of the CGUs tested for impairment had a carrying amount that exceeded the recoverable amount. Consequently, no impairment losses have been recognized in 2024. No impairment losses were recognized in 2023 either.

The Group's total capital employed was MSEK 80 603 (74 228). The translation of foreign capital employed to Swedish krona increased the Group's capital employed by MSEK 5 140. The return on capital employed was 14 percent (14).

FINANCING AS OF DECEMBER 31, 2024

The Group's net debt amounted to MSEK 37 923 (37 530). The net debt was impacted mainly by the free cash flow of MSEK 5 077, a dividend of MSEK –2 177, whereof MSEK –1 089 was paid to the shareholders in May 2024 and MSEK –1 088 was paid in November 2024, translation differences of MSEK –2 679 and payments for items affecting comparability of MSEK –882.

The net debt to EBITDA ratio was 2.5 (2.7). The free cash flow to net debt ratio amounted to 0.13 (0.13). The interest coverage ratio amounted to 4.3 (4.2).

On December 31, 2024, Securitas had a Revolving Credit Facility with its eleven key relationship banks. The size of the facility amounted to MEUR 1 029 maturing in 2027. The facility was undrawn on December 31, 2024.

A Swedish Commercial Paper Program amounts to MSEK 5 000, of which MSEK 0 was outstanding as of December 31, 2024.

In February 2024, Securitas repaid a MEUR 350 Eurobond and a MSEK 1 500 Private Placement with proceeds of a MEUR 500 issue with a maturity in 2030.

In June 2024, Securitas repaid MEUR 126 equivalent of Schuldschein loans with proceeds of a MUSD 135 Term Facility which has a maturity in 2025.

In July 2024, Securitas repaid a MUSD 50 Private Placement with the proceeds of a new MUSD 50 issue with a maturity in 2028.

In September 2024 Securitas repaid MEUR 159 of Schuldschein loans with proceeds of a MEUR 147 Term Facility which has a maturity in 2028.

On October 11, 2024, Securitas closed a MSEK 1 500 Private Placement with a maturity in 2026. The proceeds were used to repay debt maturities during the fourth quarter of 2024.

On December 20, 2024, Securitas signed a MEUR 400 Term Facility agreement which has a maturity in 2025. This facility was undrawn as of December 31, 2024.

Standard & Poor's rating of Securitas is BBB with stable outlook.

Further information regarding financial instruments and credit facilities is provided in note 9.

Cash flow from financing activities excluding leasing was MSEK –4 630 (–1 592), due to dividend paid of MSEK –2 177 (–1 977) and a net decrease in borrowings of MSEK –2 453 (385).

Cash flow for the period was MSEK –621 (1 773).

The closing balance for liquid funds after translation differences of MSEK 106 was MSEK 7 427 (7 942).

Shareholders' equity amounted to MSEK 42 680 (36 698). The translation of foreign assets and liabilities into Swedish krona together with net investment hedges increased shareholders' equity by MSEK 2 461. Refer to the statement of comprehensive income on page 18 for further information.

Acquisitions and divestitures

ACQUISITIONS AND DIVESTITURES JANUARY–DECEMBER 2024 (MSEK)

Company	Business segment 1)	Included/ excluded from	Acquired/ divested share 2)	Annual sales 3)	Enterprise value 4, 7)	Goodwill	Acq. related intangible assets
Opening balance						50 916	6 340
Other acquisitions and divestitures 5, 6)		–	–	56	173	7	28
Total acquisitions and divestitures January –December 2024		–	–	56	173	7	28
Amortization of acquisition-related intangible assets						–	–639
Translation differences and remeasurement for hyperinflation						3 972	403
Closing balance						54 895	6 132

1) Refers to business segment with main responsibility for the acquisition/divestiture.

2) Refers to voting rights for acquisitions/divestitures in the form of share purchase agreements. For asset deals no voting rights are stated.

3) Estimated annual sales.

4) Purchase price paid/received plus acquired/divested net debt but excluding any deferred considerations.

5) Related to acquistions for the period of the following entities: Securion Beveiliging BV & Securion Facilities BV, Netherlands, Verifact Investigations Pty Ltd, Australia, as well as for deferred considerations paid in the US, Austria, Spain, Türkiye, Australia and South Korea. Includes, as of a result of the finalized net working capital reconciliation, final payment for the acquisition of the Electronic Security Solutions business from Stanley Black & Decker Inc. ("STANLEY Security") in 2022.

6) Deferred considerations have been recognized mainly based on an assessment of the future profitability development in the acquired entities for an agreed period. The net of new deferred considerations, payments made from previously recognized deferred considerations and revaluation of deferred considerations in the Group was MSEK –71. Total deferred considerations, short-term and long-term, in the Group's balance sheet amount to MSEK 36.

7) Cash flow from acquisitions and divestitures amounts to MSEK –186, which is the sum of enterprise value MSEK –173 and acquisition-related costs paid MSEK –13.

All acquisition calculations are finalized no later than one year after the acquisition is made. Transactions with non-controlling interests are specified in the statement of changes in shareholders' equity on page 21. Transaction costs and revaluation of deferred considerations can be found in note 6.

AVIATION FRANCE

On December 27, 2024, Securitas signed a put option agreement to divest the airport security business in France to local management, exercisable upon completion of the mandatory consultation process with relevant works councils.

Full year 2024 sales for Securitas Aviation France was BSEK 1.5 with an operating margin well below average in Securitas Europe.

The potential transaction is estimated to have no material impact on the balance sheet or cash flow for the Group.

Changes in Group Management

José Castejon, COO for Securitas North America, has left Securitas to pursue other opportunities. José has been part

of Group Management for five years and the role as COO will be discontinued.

Other significant events

For critical estimates and judgments, provisions and contingent liabilities refer to the Annual Report 2023 and to note 11. If no significant events have occurred relating to the information in the Annual Report no further comments are made in the Interim Report for the respective case.

Risks and uncertainties

Risk management is necessary for Securitas to be able to fulfill its strategies and achieve its corporate objectives. Securitas' risks fall into three main categories: operational risks, financial risks and strategic risks and opportunities. Securitas' approach to enterprise risk management is described in more detail in the Annual Report 2023.

In the preparation of financial reports, the Board of Directors and Group Management make estimates and judgments. These impact the statement of income and balance sheet as well as disclosures such as contingent liabilities. The actual outcome may differ from these estimates and judgments under different circumstances and conditions.

Risks related to the general macroeconomic environment with a longer period of higher interest rates, a challenging insurance market, labor shortages, the changed geopolitical situation in the world, including protectionist tendencies, the litigation environment in the US and increased cyber security threats make it difficult to predict the economic development

of the different markets and geographies in which we operate.

On July 22, 2022, Securitas completed the acquisition of STANLEY Security. The integration of STANLEY is successfully completed, but the acquisition and integration of new companies always carry certain risks.

Our transformation programs in Europe and Ibero-America were in execution phase in 2024. The program in Ibero-America closed in 2024. In Europe, we still have some work left to do and will continue our implementation efforts in 2025 and 2026. The implementation and rollout of new systems and platforms to support this transformation naturally carry a risk in terms of potential disruptions to our operations, which could negatively impact our result, cash flow and financial position. This is mitigated by solid change management and a phased rollout on a country-by-country basis over a longer period.

In 2025, a business optimization program will be launched primarily in Europe. The implementation of such a program always carry certain risks.

The expected savings may be lower than anticipated and certain costs in connection with the program may be higher than expected.

The geopolitical situation in the world has changed radically with Russia's invasion of Ukraine at the end of February 2022 and the ongoing conflict in the Middle East. We have no operations either in Russia or in Ukraine and very limited presence in Israel, but we follow the development closely and contribute to a safer society where we can.

For the forthcoming twelve-month period, the financial impact of the general macro-economic environment described above, uncertainty in interest rate development, the integration and implementation of new platforms, as well as certain items affecting comparability, provisions and contingent liabilities, as described in the Annual Report 2023 and, where applicable, under the heading Other significant events above, may vary from the current financial estimates and provisions made by management. This could affect the Group's profitability and financial position.

Parent Company operations

The Group's Parent Company, Securitas AB, is not involved in any operating activities. Securitas AB consists of Group Management and support functions for the Group.

JANUARY–DECEMBER 2024

The Parent Company's income amounted to MSEK 2 603 (2 667) and mainly relates to license fees and other income from subsidiaries.

Financial income and expenses amounted to MSEK 523 (9 729). The decrease compared with last year is mainly explained by lower dividends received from subsidiaries. Income before taxes amounted to MSEK 1 065 (10 383).

AS OF DECEMBER 31, 2024

The Parent Company's non-current assets amounted to MSEK 74 888 (65 989) and mainly comprise shares in subsidiaries of MSEK 72 971 (63 933). Current assets amounted to MSEK 4 468 (23 778) of which liquid funds accounted for MSEK 65 (2 118).

Shareholders' equity amounted to MSEK 55 544 (56 660). Total dividend amounted to MSEK 2 177 (1 977), whereof MSEK 1 089 (1 003) was paid to the shareholders in May 2024 and MSEK 1 088 (974) was paid to the shareholders in November 2024.

The Parent Company's liabilities and untaxed reserves amounted to MSEK 23 812 (33 107) and mainly consist of interest-bearing debt.

For further information, refer to the Parent Company's condensed financial statements on page 31.

Stockholm, Februari 6, 2025

Magnus Ahlqvist President and Chief Executive Officer

This report has not been reviewed by the company's auditors.

Consolidated financial statements

STATEMENT OF INCOME

MSEK	Note	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Sales		41 779	39 541	161 900	147 812
Sales, acquired business		15	1	21	9 437
Total sales	3	41 794	39 542	161 921	157 249
Organic sales growth, %	4	4	6	5	9
Production expenses		–32 847	–31 322	–127 935	–125 123
Gross income		8 947	8 220	33 986	32 126
Selling and administrative expenses		–5 952	–5 572	–22 923	–22 004
Other operating income	3	19	16	71	64
Share in income of associated companies		22	19	66	61
Operating income before amortization		3 036	2 683	11 200	10 247
Operating margin, %		7.3	6.8	6.9	6.5
Amortization of acquisition-related intangible assets		–184	–152	–639	–620
Acquisition-related costs	6	31	–3	20	–10
Items affecting comparability	7	–128	–404	–1 285	–4 669
Operating income after amortization		2 755	2 124	9 296	4 948
Financial income and expenses	8, 9	–529	–628	–2 277	–2 115
Income before taxes		2 226	1 496	7 019	2 833
Income tax		–586	–287	–1 847	–1 536
Net income for the period		1 640	1 209	5 172	1 297
Whereof attributable to:
Equity holders of the Parent Company		1 636	1 209	5 160	1 285
Non-controlling interests		4	0	12	12
Earnings per share before and after dilution (SEK)		2.86	2.11	9.01	2.24
Earnings per share before and after dilution and before items affecting comparability (SEK)		3.05	2.44	10.81	9.59

STATEMENT OF COMPREHENSIVE INCOME

MSEK	Note	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Net income for the period		1 640	1 209	5 172	1 297
Other comprehensive income for the period
Items that will not be reclassified to the statement of income
Remeasurements of defined benefit pension plans		–78	63	–83	66
Deferred tax on remeasurements of defined benefit pension plans		18	–19	18	–21
Total items that will not be reclassified to the statement of income		–60	44	–65	45
Items that subsequently may be reclassified to the statement of income
Remeasurement for hyperinflation	8	45	55	248	445
Cash flow hedges	9	124	–127	231	1
Cost of hedging	9	24	–1	50	–1
Net investment hedges		–856	1 249	–1 449	597
Other comprehensive income from associated companies, translation differences		16	–30	17	–14
Translation differences		3 086	–4 396	3 893	–137
Deferred tax relating to items that may be reclassified to the statement of income		3	–17	47	4
Total items that subsequently may be reclassified to the statement of income		2 442	–3 267	3 037	895
Other comprehensive income for the period		2 382	–3 223	2 972	940
Total comprehensive income for the period		4 022	–2 014	8 144	2 237
Whereof attributable to:
Equity holders of the Parent Company		4 016	–2 010	8 131	2 227
Non-controlling interests		6	–4	13	10

STATEMENT OF CASH FLOW

Operating cash flow MSEK	Note	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Operating income before amortization		3 036	2 683	11 200	10 247
Investments in non-current tangible and intangible assets		–1 015	–972	–4 029	–4 114
Capital expenditure in % of sales		2.4	2.5	2.5	2.6
Reversal of depreciation		996	841	3 723	3 556
Change in trade receivables		852	725	–837	–2 986
Change in operating payables		762	802	181	1 477
Change in other net working capital		5	386	–843	5
Cash flow from operating activities		4 636	4 465	9 395	8 185
Cash flow from operating activities, %		153	166	84	80
Financial income and expenses paid		–355	–420	–2 156	–1 899
Current taxes paid		–618	–547	–2 162	–1 348
Free cash flow		3 663	3 498	5 077	4 938
Cash flow from investing activities, acquisitions and divestitures	6	–24	–18	–186	–170
Cash flow from items affecting comparability	7	–143	–365	–882	–1 403
Cash flow from financing activities excluding leasing		–3 053	–139	–4 630	–1 592
Cash flow for the period		443	2 976	–621	1 773

Change in net debt MSEK	Note	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Opening balance		–38 469	–42 579	–37 530	–40 534
Cash flow for the period		443	2 976	–621	1 773
Change in lease liabilities		–73	–48	171	291
Change in loans		1 965	–835	2 453	–385
Change in net debt before revaluation and translation differences		2 335	2 093	2 003	1 679
Revaluation of financial instruments	9	148	–129	283	2
Translation differences		–1 937	3 085	–2 679	1 323
Change in net debt		546	5 049	–393	3 004
Closing balance		–37 923	–37 530	–37 923	–37 530

Cash flow MSEK	Note	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Cash flow from operations		4 469	4 052	7 968	7 462
Cash flow from investing activities		–596	–634	–2 478	–2 724
Cash flow from financing activities		–3 430	–442	–6 111	–2 965
Cash flow for the period		443	2 976	–621	1 773

Change in liquid funds MSEK	Note	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Opening balance		6 882	5 151	7 942	6 323
Cash flow for the period		443	2 976	–621	1 773
Translation differences		102	–185	106	–154
Closing balance		7 427	7 942	7 427	7 942

CAPITAL EMPLOYED AND FINANCING

MSEK Note	Dec 31, 2024	Dec 31, 2023
Non-current tangible and intangible assets	11 716	11 281
Trade receivables	27 843	25 367
Operating payables	–18 534	–17 649
Other net working capital	–156	–628
Net working capital	9 153	7 090
Net working capital as % of total sales	6	5
Operating capital employed	20 869	18 371
Goodwill	54 895	50 916
Acquisition-related intangible assets	6 132	6 340
Shares in associated companies	380	354
Other capital employed	–1 673	–1 753
Capital employed	80 603	74 228
Return on capital employed, %	14	14
Net debt	–37 923	–37 530
Shareholders' equity	42 680	36 698

BALANCE SHEET

MSEK Note	Dec 31, 2024	Dec 31, 2023
ASSETS
Non-current assets
Goodwill	54 895	50 916
Acquisition-related intangible assets	6 132	6 340
Other intangible assets	2 883	2 637
Right-of-use assets	4 432	4 495
Other tangible non-current assets	4 401	4 148
Shares in associated companies	380	354
Non-interest-bearing financial non-current assets	4 673	4 299
Interest-bearing financial non-current assets	1 289	1 513
Total non-current assets	79 085	74 702
Current assets
Non-interest-bearing current assets	36 887	33 431
Other interest-bearing current assets	189	317
Liquid funds	7 427	7 942
Total current assets	44 503	41 690
TOTAL ASSETS	123 588	116 392

MSEK	Note	Dec 31, 2024	Dec 31, 2023
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Attributable to equity holders of the Parent Company		42 676	36 695
Non-controlling interests		4	3
Total shareholders' equity		42 680	36 698
Equity ratio, %		35	32
Non-current liabilities
Non-interest-bearing non-current liabilities		338	303
Non-current lease liabilities		3 258	3 336
Other interest-bearing non-current liabilities		36 827	31 687
Non-interest-bearing provisions		3 997	3 734
Total non-current liabilities		44 420	39 060
Current liabilities
Non-interest-bearing current liabilities and provisions		29 745	28 355
Current lease liabilities		1 458	1 333
Other interest-bearing current liabilities		5 285	10 946
Total current liabilities		36 488	40 634
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		123 588	116 392

CHANGES IN SHAREHOLDERS' EQUITY

		Dec 31, 2024			Dec 31, 2023
MSEK	Attributable to equity holders of the Parent Company	Non controlling interests	Total	Attributable to equity holders of the Parent Company	Non controlling interests	Total
Opening balance January 1, 2024/2023	36 695	3	36 698	36 424	14	36 438
Total comprehensive income for the period	8 131	13	8 144	2 227	10	2 237
Transactions with non-controlling interests	–	–12	–12	–	–21	–21
Share-based incentive schemes	27	–	271)	21	–	21
Dividend to the shareholders of the Parent Company2)	–2 177	–	–2 177	–1 977	–	–1 977
Closing balance December 31, 2024/2023	42 676	4	42 680	36 695	3	36 698

1) Refers to shares awarded under Securitas' long-term share-based incentive schemes of MSEK –51. Refers also to share-based remuneration for the participants in the long-term share-based incentive scheme 2024 of MSEK 80 and also adjusted for actual leavers of MSEK –2.

2) Total dividend related to financial year 2023 amounted to MSEK –2 177, whereof MSEK –1 088.5 was paid to the shareholders in May 2024 and a second dividend payment of MSEK –1 088.5 was paid in November 2024.

DATA PER SHARE

SEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Share price, end of period	136.90	98.58	136.90	98.58
Earnings per share before and after dilution 1,2)	2.86	2.11	9.01	2.24
Earnings per share before and after dilution and before items affecting comparability 1,2)	3.05	2.44	10.81	9.59
Dividend	–	–	4.504)	3.80
P/E-ratio after dilution and before items affecting comparability	–	–	13	10
Share capital (SEK)	573 392 552	573 392 552	573 392 552	573 392 552
Number of shares outstanding 1)	572 917 552	572 917 552	572 917 552	572 917 552
Average number of shares outstanding 1,3)	572 917 552	572 917 552	572 917 552	572 917 552
Treasury shares	475 000	475 000	475 000	475 000

1) There are no convertible debenture loans. Consequently there is no difference between before and after dilution regarding earnings per share and number of shares.

2) Number of shares used for calculation of earnings per share includes shares related to the Group's share based incentive schemes that have been hedged through swap agreements. 3) Used for calculation of earnings per share.

4) Proposed dividend, distributed in two equal installments of SEK 2.25 per share.

Segment overview October–December 2024 and 2023

OCTOBER–DECEMBER 2024

MSEK	Securitas North America	Securitas Europe	Securitas Ibero-America	Other	Eliminations	Group
Sales, external	16 716	18 009	3 738	3 331	–	41 794
Sales, intra-group	32	1	–	0	–33	–
Total sales	16 748	18 010	3 738	3 331	–33	41 794
Organic sales growth, %	2	5	3	–	–	4
Operating income before amortization	1 552	1 255	279	–50	–	3 036
of which share in income of associated companies	–	0	–	22	–	22
Operating margin, %	9.3	7.0	7.5	–	–	7.3
Amortization of acquisition-related intangible assets	–75	–68	–2	–39	–	–184
Acquisition-related costs	0	–1	–	32	–	31
Items affecting comparability	17	–134	–3	–8	–	–128
Operating income after amortization	1 494	1 052	274	–65	–	2 755
Financial income and expenses	–	–	–	–	–	–529
Income before taxes	–	–	–	–	–	2 226

OCTOBER–DECEMBER 2023

MSEK	Securitas North America	Securitas Europe	Securitas Ibero-America	Other	Eliminations	Group
Sales, external	15 796	17 084	3 613	3 049	–	39 542
Sales, intra-group	46	0	0	1	–47	–
Total sales	15 842	17 084	3 613	3 050	–47	39 542
Organic sales growth, %	4	11	7	–	–	6
Operating income before amortization	1 479	1 123	259	–178	–	2 683
of which share in income of associated companies	–	0	–	19	–	19
Operating margin, %	9.3	6.6	7.2	–	–	6.8
Amortization of acquisition-related intangible assets	–73	–68	–2	–9	–	–152
Acquisition-related costs	–	–3	–	0	–	–3
Items affecting comparability	–87	–268	–23	–26	–	–404
Operating income after amortization	1 319	784	234	–213	–	2 124
Financial income and expenses	–	–	–	–	–	–628
Income before taxes	–	–	–	–	–	1 496

Segment overview January–December 2024 and 2023

JANUARY–DECEMBER 2024

MSEK	Securitas North America	Securitas Europe	Securitas Ibero-America	Other	Eliminations	Group
Sales, external	64 091	70 175	14 845	12 810	–	161 921
Sales, intra-group	180	2	–	1	–183	–
Total sales	64 271	70 177	14 845	12 811	–183	161 921
Organic sales growth, %	3	8	6	–	–	5
Operating income before amortization	5 819	4 584	1 042	–245	–	11 200
of which share in income of associated companies	–	0	–	66	–	66
Operating margin, %	9.1	6.5	7.0	–	–	6.9
Amortization of acquisition-related intangible assets	–293	–272	–6	–68	–	–639
Acquisition-related costs	–1	–11	–	32	–	20
Items affecting comparability	–218	–494	–20	–553	–	–1 285
Operating income after amortization	5 307	3 807	1 016	–834	–	9 296
Financial income and expenses	–	–	–	–	–	–2 277
Income before taxes	–	–	–	–	–	7 019

JANUARY–DECEMBER 2023

MSEK	Securitas North America	Securitas Europe	Securitas Ibero-America	Other	Eliminations	Group
Sales, external	62 353	66 604	15 449	12 843	–	157 249
Sales, intra-group	208	1	0	2	–211	–
Total sales	62 561	66 605	15 449	12 845	–211	157 249
Organic sales growth, %	6	12	15	–	–	9
Operating income before amortization	5 625	4 095	991	–464	–	10 247
of which share in income of associated companies	–	0	–	61	–	61
Operating margin, %	9.0	6.1	6.4	–	–	6.5
Amortization of acquisition-related intangible assets	–293	–281	–6	–40	–	–620
Acquisition-related costs	–	–10	–	0	–	–10
Items affecting comparability	–345	–863	–3 389	–72	–	–4 669
Operating income after amortization	4 987	2 941	–2 404	–576	–	4 948
Financial income and expenses	–	–	–	–	–	–2 115
Income before taxes	–	–	–	–	–	2 833

Notes

NOTE 1 Accounting principles

This full year report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

Securitas' consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups. The most important accounting principles under IFRS, which is the basis for the preparation of this full year report, can be found in note 2 on pages 65–70 in the Annual Report 2023. The accounting principles are also available on the Group's website www.securitas.com under the section Investors – Financial data – Accounting Principles.

The Parent Company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's standard RFR 2 Accounting for Legal Entities. The most important accounting principles used by the Parent Company can be found in note 41 on page 118 in the Annual Report 2023.

Introduction and effect of new and revised IFRS 2024

Amendments to IAS 12 have been introduced in response to the OECD's BEPS Pillar Two related to global minimum tax for larger groups. The Group is subject to the global minimum top-up tax under Pillar Two legislation. The potential top-up tax is not material in relation to the tax expense.

None of the other published standards and interpretations that are mandatory for the Group's financial year 2024 are assessed to have any significant impact on the Group's financial statements.

Introduction and effect of new and revised IFRS 2025 or later

None of the published standards and interpretations that are mandatory for the Group's financial year 2025 are assessed to have any significant impact on the Group's financial statements.

The effect on the Group's financial statements from standards and interpretations that are mandatory for the Group's financial year 2026 or later remain to be assessed.

Usage of key ratios not defined in IFRS

For definitions and calculations of key ratios not defined in IFRS, refer to notes 4 and 5 in this full year report as well as to note 3 in the Annual Report 2023. As per the first quarter of 2024, certain key ratios and defintions have been changed. Refer to note 5 for further information.

NOTE 2 Events after the reporting period

There have been no significant events with effect on the financial reporting after the reporting period date.

NOTE 3

Revenue

MSEK	Oct–Dec 2024	%	Oct–Dec 2023	%	Jan–Dec 2024	%	Jan–Dec 2023	%
Security services	27 156	65	25 845	65	105 889	65	103 677	66
Technology and solutions	13 849	33	12 947	33	53 167	33	50 514	32
Risk management services	789	2	750	2	2 865	2	3 058	2
Total sales	41 794	100	39 542	100	161 921	100	157 249	100
Other operating income	19	0	16	0	71	0	64	0
Total revenue	41 813	100	39 558	100	161 992	100	157 313	100

Security services

This comprises on-site and mobile guarding, which are services with the same revenue recognition pattern. Revenue is recognized over time, as the services are rendered by Securitas and simultaneously consumed by the client. Such services cannot be reperformed.

Technology and solutions

This comprises two broad categories regarding technology and solutions. Technology consists of the sale of alarm, access control and video installations comprising design, installation and integration (time, material and related expenses). Revenue is recognized as per the contract, either upon completion of the conditions in the contract, or over time based on the percentage of completion. Remote guarding (in the form of alarm monitoring services), that is sold separately and not as part of a solution, is also included in this category. Revenue recognition is over time as this is also a service that is rendered by Securitas and simultaneously consumed by the clients. The category further includes maintenance services, that are either performed upon request (time and material) with revenue recognition at a point in time (when the work has been performed), or over time if part of a service level contract with a subscription fee. Finally, there are also

product sales (alarms and components) without any design or installation. The revenue recognition is at a point in time (upon delivery).

Solutions are a combination of services such as on-site and/or mobile guarding and/or remote guarding. These services are combined with a technology component in terms of equipment owned and managed by Securitas and used in the provision of services. The equipment is installed at the client site. The revenue recognition pattern is over time, as the services are rendered by Securitas and simultaneously consumed by the client. A solution normally constitutes one performance obligation.

Risk management services

This comprises various types of risk management services that are either recognized over time or at a point in time depending on the type of service. These services include risk advisory, security management, executive protection, corporate investigations, due diligence and similar services.

Other operating income

Other operating income consists mainly of trade mark fees for the use of the Securitas brand name.

Revenue per segment

The disaggregation of revenue by segment is shown in the table below. Total sales agree to total sales in the segment overview.

	Securitas North America		Securitas Europe		Securitas Ibero-America		Other		Eliminations		Group
MSEK	Oct–Dec 2024	Oct–Dec 2023	Oct–Dec 2024	Oct–Dec 2023	Oct–Dec 2024	Oct–Dec 2023	Oct–Dec 2024	Oct–Dec 2023	Oct–Dec 2024	Oct–Dec 2023	Oct–Dec 2024	Oct–Dec 2023
Security services	9 773	9 321	11 922	11 356	2 345	2 360	3 119	2 814	–3	–6	27 156	25 845
Technology and solutions	6 186	5 771	6 088	5 728	1 393	1 253	212	236	–30	–41	13 849	12 947
Risk manage ment services	789	750	–	–	–	–	–	–	–	–	789	750
Total sales	16 748	15 842	18 010	17 084	3 738	3 613	3 331	3 050	–33	–47	41 794	39 542
Other operating income	–	–	–	–	–	–	19	16	–	–	19	16
Total revenue	16 748	15 842	18 010	17 084	3 738	3 613	3 350	3 066	–33	–47	41 813	39 558

	Securitas North America		Securitas Europe		Securitas Ibero-America		Other		Eliminations		Group
MSEK	Jan–Dec 2024	Jan–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Security services	37 342	36 799	47 150	44 542	9 523	10 438	11 910	11 936	–36	–38	105 889	103 677
Technology and solutions	24 064	22 704	23 027	22 063	5 322	5 011	901	909	–147	–173	53 167	50 514
Risk manage ment services	2 865	3 058	–	–	–	–	–	–		–	2 865	3 058
Total sales	64 271	62 561	70 177	66 605	14 845	15 449	12 811	12 845	–183	–211	161 921	157 249
Other operating income	–	–	–	–	–	–	71	64	–	–	71	64
Total revenue	64 271	62 561	70 177	66 605	14 845	15 449	12 882	12 909	–183	–211	161 992	157 313

NOTE 4 Organic sales growth and currency changes

The calculation of real and organic sales growth and the specification of currency changes on operating income before and after amortization, income before taxes, net income and earnings per share are specified below. The impact from remeasurement for hyperinflation due to the application of IAS 29 is included in currency change.

MSEK	Oct–Dec 2024	Oct–Dec 2023	%	Jan–Dec 2024	Jan–Dec 2023	%
Total sales	41 794	39 542	6	161 921	157 249	3
Currency change from 2023	–760	–		1 711	–
Real sales growth, adjusted for changes in exchange rates	41 034	39 542	4	163 632	157 249	4
Acquisitions/divestitures	–15	–		–21	–1 282
Organic sales growth	41 019	39 542	4	163 611	155 967	5
Operating income before amortization	3 036	2 683	13	11 200	10 247	9
Currency change from 2023	–63	–		125	–
Real operating income before amortization, adjusted for changes in exchange rates	2 973	2 683	11	11 325	10 247	11
Operating income after amortization	2 755	2 124	30	9 296	4 948	88
Currency change from 2023	–59	–		116	–
Real operating income after amortization, adjusted for changes in
exchange rates	2 696	2 124	27	9 412	4 948	90
Income before taxes	2 226	1 496	49	7 019	2 833	148
Currency change from 2023	–90	–		117	–
Real income before taxes, adjusted for changes in exchange rates	2 136	1 496	43	7 136	2 833	152
Net income for the period	1 640	1 209	36	5 172	1 297	299
Currency change from 2023	40	–		54	–
Real net income for the period, adjusted for changes in exchange rates	1 680	1 209	39	5 226	1 297	303
Net income attributable to equity holders of the Parent Company	1 636	1 209	35	5 160	1 285	302
Currency change from 2023	41	–		53	–
Real net income attributable to equity holders of the Parent Company, adjusted for changes in exchange rates	1 677	1 209	39	5 213	1 285	306
Average number of shares outstanding	572 917 552	572 917 552		572 917 552	572 917 552
Real earnings per share, adjusted for changes in exchange rates	2.93	2.11	39	9.10	2.24	306
Net income attributable to equity holders of the Parent Company	1 636	1 209	35	5 160	1 285	302
Items affecting comparability net of taxes	109	190		1 032	4 209
Net income attributable to equity holders of the Parent Company, adjusted for items affecting comparability	1 745	1 399	25	6 192	5 494	13
Currency change from 2023	–78	–		104	–
Real net income attributable to equity holders of the Parent Company, adjusted for items affecting comparability and changes in exchange rates	1 667	1 399	19	6 296	5 494	15
Average number of shares outstanding	572 917 552	572 917 552		572 917 552	572 917 552
Real earnings per share, adjusted for items affecting comparability and changes in exchange rates	2.91	2.44	19	10.99	9.59	15

NOTE 5 Definitions and calculation of key ratios

The calculations below relate to the period January–December 2024.

Interest coverage ratio

Operating income before amortization (rolling 12 months) plus interest income (rolling 12 months) in relation to interest expenses (rolling 12 months). Calculation: (11 200 + 288) / 2 670 = 4.3

Cash flow from operating activities, %

Cash flow from operating activities as a percentage of operating income before amortization.

Calculation: 9 395 / 11 200 = 84%

Free cash flow in relation to net debt

Free cash flow (rolling 12 months) in relation to closing balance of net debt. Calculation: 5 077 / 37 923 = 0.13

Net debt to EBITDA ratio1)

Net debt in relation to operating income before amortization (rolling 12 months) excluding depreciation (rolling 12 months) and including acquisition-related costs (rolling 12 months). Calculation: 37 923 / (11 200 + 3 723 + 20) = 2.5

Net working capital in % of total sales2)

Net working capital as a percentage of total sales (rolling 12 months) adjusted for the full-year sales of acquired and divested entities. Calculation: 9 153 / 161 957 = 6%

Capital expenditures in % of sales2)

Investments in non-current tangible and intangible assets for the period as a percentage of total sales for the period.

Calculation: 4 029 / 161 921 = 2.5%

Return on capital employed1)

Operating income before amortization (rolling 12 months) as a percentage of closing balance of capital employed adjusted for provisions related to items affecting comparability.

Calculation: 11 200 / (80 603 + 730) = 14%

Net debt equity ratio

Net debt in relation to shareholders' equity. Calculation: 37 923 / 42 680 = 0.89

Operating capital employed1)

Capital employed less goodwill, acquisition-related intangible assets, shares in associated companies and other capital employed.

Other capital employed2)

Current and deferred tax balances, accrued interest, deferred considerations and provisions related to items affecting comparability and acquisition-related costs.

Trade receivables2)

Accounts receivable and accrued sales income less deferred sales income.

Operating payables2)

Accounts payable, employee-related liabilities, prepaid and accrued expenses/income excluding accrued interest.

Other net working capital2)

Operating capital employed less non-current tangible and intangible assets, trade receivables and operating payables.

Net working capital2)

Trade receivables, operating payables and other net working capital.

1) The definition has been changed as of the first quarter of 2024 and the comparatives have been restated.

2) The definition or key ratio is new as of the first quarter of 2024.

NOTE 6 Acquisition-related costs and cash flow from acquisitions and divestitures

MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Restructuring and integration costs	–1	–2	–8	–6
Transaction costs	–2	–	–4	–
Revaluation of deferred considerations	34	–1	32	–4
Total acquisition-related costs	31	–3	20	–10
Cash flow impact from acquisitions and divestitures
Purchase price payments	–23	–16	–176	–41
Assumed net debt	3	0	3	–120
Acquisition-related costs paid	–4	–2	–13	–9
Total cash flow impact from acquisitions and divestitures	–24	–18	–186	–170

For further information regarding the Group's acquisitions and divestitures, refer to the section Acquisitions and divestitures.

NOTE 7 Items affecting comparability

MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Recognized in the statement of income
Transformation programs, Group1)	–21	–208	–155	–686
Acquisition of STANLEY Security2)	–107	–196	–594	–662
Divestiture of Securitas Argentina3)	–	–	–	–3 321
US Government investigation in Paragon Systems4)	–	–	–536	–
Total recognized in income before taxes	–128	–404	–1 285	–4 669
Taxes5)	19	214	253	460
Total recognized in net income for the period	–109	–190	–1 032	–4 209
Cash flow impact
Transformation programs, Group1)	–16	–161	–265	–624
Cost-savings program, Group6)	–5	–7	–17	–15
Cost-savings program, Securitas Europe7)	–	0	–	0
Acquisition of STANLEY Security2)	–106	–196	–577	–761
Divestiture of Securitas Argentina3)	–16	–1	–23	–3
Total cash flow impact	–143	–365	–882	–1 403

1) Related to the previously announced business transformation program in Security Services Europe and Security Services Ibero-America.

2) Related to transaction costs, restructuring and integration costs.

3) Includes costs related to the divestiture of Securitas Argentina in 2023. The divestiture had limited cash flow impact 2023 of MSEK –123, whereof MSEK –120 was reported as cash flow from investing activities, acquisitions and divestitures (note 6) and MSEK –3 was reported as cash flow from items affecting comparability. In 2024 an additional cash flow effect of MSEK –23 was reported.

4) Includes costs related to the US Government investigation into Paragon Systems, Inc. The investigation relates to alledged misconduct by certain former employees and to Paragon's relationship with various small business entities which were direct or indirect party to contracts with the US Government starting around 2012. Securitas has set a provision of MUSD 53 related to the matter. The settlement was concluded at MUSD 52. in addition, other costs related to the investigation totals approximately MUSD 1. The provision is accounted for under the heading Other in the segment reporting.

5) Including reversal of a tax provision of MSEK 118 in the fourth quarter of 2023.

6) Related to the cost-savings program in the Group that was communicated in 2020. Includes costs related to exit of business operations while cash flow related to exit of business operations is accounted for as cash flow from investing activities. This program was finalized in 2021 but still impacts cash flow.

7) Related to the cost-savings program in Security Services Europe. This program was finalized in 2018 but still impacted cash flow in 2023.

NOTE 8 Remeasurement for hyperinflation

The Group's subsidiaries in countries that according to IAS 29 Financial reporting in hyperinflationary economies are classified as hyperinflationary economies are accounted for in the Group's financial statements after remeasurement for hyperinflation. Securitas' operation accounted for according to IAS 29 is Türkiye. Argentina was included up to the second quarter of 2023 when the operation was divested.

The impact on the consolidated statement of income and other comprehensive income from the remeasurement according to IAS 29 is illustrated below. The index used by Securitas for the remeasurement of the financial statements is the consumer price index with base period January 2003 for Argentina and base period January 2005 for Türkiye.

EXCHANGE RATES AND INDEX

	Dec 31, 2024	Dec 31, 2023
Exchange rate Türkiye, SEK/TRY	0.31	0.34
Index, Türkiye	23.45	16.24

NET MONETARY GAIN RECOGNIZED IN THE CONSOLIDATED STATEMENT OF INCOME

MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Net monetary gain, Argentina	–	–	–	48
Net monetary gain, Türkiye	35	1	129	138
Total net monetary gain recognized in financial income and expenses	35	1	129	186

REMEASUREMENT IMPACT RECOGNIZED IN OTHER COMPREHENSIVE INCOME

MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
Remeasurement net of tax, Argentina	–	–	–	141
Remeasurement net of tax, Türkiye	45	54	245	296
Total remeasurement impact recognized in other comprehensive income	45	54	245	437

Revaluation of financial instruments

Revaluation of financial instruments is recognized in the statement of income on the line financial income and expenses. Revaluation of cash flow hedges (and the subsequent recycling into the statement of income) is recognized in other comprehensive income on the line cash flow hedges. Cost of hedging (and the subsequent recycling into the statement of income) is recognized on the corresponding line in other comprehensive income. The amount disclosed in the specification of change in net debt is the total revaluation before tax in the table below.

MSEK Oct–Dec 2024 Oct–Dec 2023 Jan–Dec 2024 Jan–Dec 2023 Recognized in the statement of income Revaluation of financial instruments 0 –1 2 2 Deferred tax – – – – Impact on net income 0 –1 2 2 Recognized in the statement of comprehensive income Cash flow hedges 124 – 127 231 1 Cost of hedging 24 –1 50 –1 Deferred tax –19 14 –35 –1 Total recognized in the statement of comprehensive income 129 –114 246 –1 Total revaluation before tax 148 –129 283 2 Total deferred tax –19 14 –35 –1 Total revaluation after tax 129 –115 248 1

Fair value hierarchy

The methods and assumptions used by the Group in estimating the fair value of the financial instruments are disclosed in note 7 in the Annual Report 2023. Further information regarding the accounting principles for financial instruments is disclosed in note 2 in the Annual Report 2023.

There have been no transfers between any of the the valuation levels during the period.

MSEK	Quoted market prices	Valuation techniques using observable market data	Valuation techniques using non-observable market data	Total
December 31, 2024
Financial assets at fair value through profit or loss	–	47	–	47
Financial liabilities at fair value through profit or loss	–	–33	–36	–69
Derivatives designated for hedging with positive fair value	–	354	–	354
Derivatives designated for hedging with negative fair value	–	–729	–	–729
December 31, 2023
Financial assets at fair value through profit or loss	–	69	–	69
Financial liabilities at fair value through profit or loss	–	–112	–104	–216
Derivatives designated for hedging with positive fair value	–	481	–	481
Derivatives designated for hedging with negative fair value	–	–640	–	–640

Financial instruments by category – carrying and fair values

For financial assets and liabilities other than those disclosed in the table below, fair value is deemed to approximate the carrying value. A full comparison of fair value and carrying value for all financial assets and liabilities is disclosed in note 7 in the Annual Report 2023.

	Dec 31, 2024		Dec 31, 2023
MSEK	Carrying value	Fair value	Carrying value	Fair value
Long-term loan liabilities	25 518	25 782	22 005	21 983
Short-term loan liabilities	3 441	3 431	5 391	5 345
Total financial instruments by category	28 959	29 213	27 396	27 328

SUMMARY OF DEBT FINANCING AS OF DECEMBER 31, 2024

Type	Currency	Total amount (million)	Available amount (million)	Maturity
EMTN Eurobond, 1.25 % fixed	EUR	300	0	2025
Term Facility	USD	135	0	2025
Term Facility	EUR	400	400	2025
Term Facility	USD	600	0	2026
EMTN private placement, floating	SEK	1 500	0	2026
Revolving Credit Facility	EUR	1 029	1 029	2027
EMTN private placement, fixed	USD	40	0	2027
EMTN private placement, fixed	USD	60	0	2027
EMTN Eurobond, 4.25 % fixed	EUR UR	600	0	2027
Schuldschein dual currency facility	EUR	15	0	2028
EMTN Eurobond, 0.25 % fixed	EUR	350	0	2028
Term Facility	EUR	147	0	2028
EMTN private placement, floating	USD	50	0	2028
EMTN private placement, fixed	USD	75	0	2029
EMTN Eurobond, 4.375 % fixed	EUR	600	0	2029
EMTN Eurobond, 3.875 % fixed	EUR	500	0	2030
Commercial Paper (uncommitted)	SEK	5 000	5 000	n/a

For further information regarding Multicurrency Term Facilities refer to the section Capital employed and financing on page 12.

NOTE 10 Pledged assets

MSEK	Dec 31, 2024	Dec 31, 2023
Pension balances, defined contribution plans1)	277	234
Total pledged assets	277	234

1) Refers to assets relating to insured pension plans excluding social benefits.

NOTE 11 Contingent liabilities

MSEK	Dec 31, 2024	Dec 31, 2023
Guarantees	–	–
Guarantees related to discontinued operations	16	16
Total contingent liabilities	16	16

For significant estimates and judgments, provisions and contingent liabilities, refer to note 4 and note 39 in the Annual Report 2023 as well as to the section Other significant events in this report.

Parent Company

STATEMENT OF INCOME

MSEK	Jan–Dec 2024	Jan–Dec 2023
License fees and other income	2 603	2 667
Gross income	2 603	2 667
Administrative expenses	–1 792	–1 533
Operating income	811	1 134
Financial income and expenses	523	9 729
Income after financial items	1 334	10 863
Appropriations	–269	–480
Income before taxes	1 065	10 383
Income tax	–29	–189
Net income for the period	1 036	10 194

BALANCE SHEET

MSEK	Dec 31, 2024	Dec 31, 2023
ASSETS
Non-current assets
Shares in subsidiaries	72 971	63 933
Shares in associated companies	112	112
Other non-interest-bearing non-current assets	388	331
Interest-bearing financial non-current assets	1 417	1 613
Total non-current assets	74 888	65 989
Current assets
Non-interest-bearing current assets	821	10 929
Other interest-bearing current assets	3 582	10 731
Liquid funds	65	2 118
Total current assets	4 468	23 778
TOTAL ASSETS	79 356	89 767
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Restricted equity	7 936	7 936
Non-restricted equity	47 608	48 724
Total shareholders' equity	55 544	56 660
Untaxed reserves	366	571
Non-current liabilities
Non-interest-bearing non-current liabilities/provisions	275	230
Interest-bearing non-current liabilities	7 980	9 042
Total non-current liabilities	8 255	9 272
Current liabilities
Non-interest-bearing current liabilities	1 712	2 003
Interest-bearing current liabilities	13 479	21 261
Total current liabilities	15 191	23 264
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	79 356	89 767

Financial information

FINANCIAL INFORMATION CALENDAR

May 8, 2025, 8 a.m. (CEST) Interim Report January–March 2025

May 8, 2025 Annual General Meeting in Stockholm

July 30, 2025, 8 a.m. (CEST) Interim Report January–June 2025

November 6, 2025, 8 a.m. (CET) Interim Report January–September 2025

For further information regarding Securitas' IR activities, refer to www.securitas.com

PRESENTATION OF THE FULL YEAR REPORT

Analysts and media are invited to participate in a telephone conference on February 6, 2025, at 9.30 a.m. (CET) where President and CEO Magnus Ahlqvist and CFO Andreas Lindback will present the report and answer questions. The telephone conference will also be audio cast live via Securitas' website www.securitas.com

To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/en/investors/financial-reports-and-presentations/

A recorded version of the audio cast will be available at www.securitas.com/en/investors/financial-reports-and-presentations/ after the telephone conference.

For further information, please contact: Micaela Sjökvist, Vice President, Investor Relations + 46 76 116 7443

ABOUT SECURITAS

Securitas is a world-leading safety and security solutions partner that helps make your world a safer place. Nine decades of deep experience means we see what others miss. By leveraging technology in partnership with our clients, combined with an innovative, holistic approach, we're transforming the security industry. With approximately 336 000 employees in 44 markets, we see a different world and create sustainable value for our clients by protecting what matters most – their people and assets.

Group financial targets

Securitas has four financial targets:

• 8–10 percent technology and solutions annual average real sales growth
• 8 percent Group operating margin by year-end 2025, with a >10 percent long-term operating margin ambition
• A net debt to EBITDA ratio below 3.0x
• An operating cash flow of 70–80 percent of operating income before amortization

Securitas AB (publ.)

P. O. Box 12307, SE-102 28 Stockholm, Sweden

Visiting address: Lindhagensplan 70

Telephone: + 46 10 470 30 00

Corporate registration number: 556302–7241

www.securitas.com