Quarterly Report • Oct 29, 2021
Quarterly Report
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27 338
Total sales, MSEK
5.9% Operating margin
2.59 Earnings per share, SEK
| Comments from | ||
|---|---|---|
| the President and CEO | 3 | |
| January–September summary | 4 | |
| Group development | 5 | |
| Development in the Group's | ||
| business segments | 7 | |
| Cash flow | 11 | |
| Capital employed and financing | 12 | |
| Acquisitions and divestitures | 13 |
| Other significant events | 14 |
|---|---|
| Risks and uncertainties | 14 |
| Parent Company operations | 15 |
| Annual General Meeting 2022 | 16 |
| Consolidated financial statements | 17 |
| Segment overview | 21 |
| Notes | 23 |
| Parent Company | 30 |
| Financial information | 31 |
"Full focus on margin enhancement as the impact from covid reduces"
The Group's organic sales growth in the third quarter was 4 percent (0), with all business segments contributing to the improvement. The gradual
business recovery from the corona pandemic continued in the third quarter, with commercial activity and sales momentum picking up in all of our business segments, including airport security.
Sales of security solutions and electronic security had a real sales growth of 7 percent (5) in the third quarter. We completed two strategic acquisitions within electronic security in the quarter, Protection One in Germany and Tepe Güvenlik in Turkey, both of which will greatly enhance our capabilities in two important markets. We are actively exploring further acquisition opportunities within electronic security, and we keep investing in our solutions organization to further accelerate organic sales growth in this business line.
The operating result for the Group, adjusted for changes in exchange rates, increased by 24 percent in the third quarter and the operating margin was 5.9 percent (5.0). The improving business fundamentals and active portfolio management strengthened all the business segments, and the cost-savings program initiated during 2020 also had a positive impact. In the quarter we had normal levels of provisioning compared to the increased levels last year.
Total price adjustments in the Group were on par with wage cost increases year to date. Labor shortage and wage pressure remain a challenge. Maintaining the price and wage balance is a key priority throughout the Group going into 2022.
Over the past year we have exited from markets with limited business opportunities and we have actively renegotiated or exited low margin contracts. We see tangible results in the airport business as well as in several Latin American countries.
The Group delivered a good cash flow in the third quarter.
The corona pandemic is still present in our day-to-day operations as we close the third quarter of 2021. While uncertainty remains regarding the longterm consequences of the pandemic, we are coming out stronger thanks to having taken action early.
We are beginning to reap the benefits of the transformation program in North America which was initiated in 2019, and see positive contribution to the operating margin. The business transformation in Europe and Ibero-America is also progressing according to plan. We are confident that these programs will improve the business mix to achieve the associated margin targets.
The strength of the Securitas team and the progress of our business transformation are deciding factors of our strong performance in the first nine months of 2021.
Magnus Ahlqvist President and CEO
| Q3 | Change, % | 9M | Change, % | Full year | Change, % | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2021 | 2020 | Total | Real | 2021 | 2020 | Total | Real | 2020 | Total |
| Sales | 27 338 | 26 501 | 3 | 5 | 79 651 | 81 477 | –2 | 5 | 107 954 | –3 |
| Organic sales growth, % | 4 | 0 | 4 | 0 | 0 | |||||
| Operating income before amortization |
1 605 | 1 327 | 21 | 24 | 4 332 | 3 488 | 24 | 34 | 4 892 | –15 |
| Operating margin, % | 5.9 | 5.0 | 5.4 | 4.3 | 4.5 | |||||
| Amortization of acquisition related intangible assets |
–63 | –66 | –191 | –207 | –286 | |||||
| Acquisition-related costs | –31 | –10 | –73 | –90 | –137 | |||||
| Items affecting comparability * | –120 | –112 | –515 | –218 | –640 | |||||
| Operating income after amortization |
1 391 | 1 139 | 22 | 24 | 3 553 | 2 973 | 20 | 28 | 3 829 | –26 |
| Financial income and expenses | –96 | –101 | –281 | –382 | –500 | |||||
| Income before taxes | 1 295 | 1 038 | 25 | 28 | 3 272 | 2 591 | 26 | 35 | 3 329 | –28 |
| Net income for the period | 946 | 759 | 25 | 28 | 2 389 | 1 892 | 26 | 35 | 2 416 | –28 |
| Earnings per share, SEK | 2.59 | 2.08 | 25 | 28 | 6.54 | 5.18 | 26 | 35 | 6.63 | –28 |
| EPS before items affecting comparability, SEK |
2.82 | 2.31 | 22 | 26 | 7.57 | 5.63 | 34 | 43 | 8.02 | –17 |
| Cash flow from operating activities, % |
75 | 199 | 79 | 163 | 147 | |||||
| Free cash flow | 1 070 | 2 409 | 2 243 | 4 524 | 5 944 | |||||
| Net debt to EBITDA ratio | – | – | 2.1 | 1.9 | 2.1 |
* Refer to note 7 on page 27 for further information.
| Organic sales growth | Operating margin | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q3 | 9M | Q3 | 9M | ||||||
| % | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| Security Services North America | 1 | 2 | 4 | 1 | 7.1 | 6.4 | 6.7 | 5.7 | |
| Security Services Europe | 6 | –1 | 4 | –2 | 6.4 | 5.1 | 5.7 | 4.1 | |
| Security Services Ibero-America | 10 | 0 | 5 | 3 | 5.9 | 4.5 | 5.5 | 4.3 | |
| Group | 4 | 0 | 4 | 0 | 5.9 | 5.0 | 5.4 | 4.3 |
Organic sales growth, %
Operating margin, %
Sales amounted to MSEK 27 338 (26 501) and organic sales growth to 4 percent (0). While the comparative was impacted by the corona pandemic, all business segments contributed to the improvement. Extra sales was 14 percent (17) of total sales, and the decline related primarily to Security Services North America. Organic sales growth in Security Services North America was 1 percent (2), foremost due to the decline in extra sales within the business unit Guarding. Security Services Europe had 6 percent (–1), supported by most countries including the airport security business. Security Services Ibero-America showed 10 percent (0), primarily driven by Spain and price increases in Argentina.
Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 5 percent (1).
Security solutions and electronic security sales amounted to MSEK 6 030 (5 763) or 22 percent (22) of total sales in the third quarter. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 7 percent (5).
Operating income before amortization was MSEK 1 605 (1 327) which, adjusted for changes in exchange rates, represented a real change of 24 percent (–8). The operating income was supported by corona-related government grants and support measures of MSEK 100 (200) in the third quarter, mostly within Security Services Europe. These grants and support measures relate primarily to partial unemployment support and compensate partly for increased cost levels due to idle time.
The Group's operating margin was 5.9 percent (5.0), an improvement seen in all business segments including a normalized level of provisioning compared to last year. The operating margin in Security Services North America was supported by the business units Electronic Security and Pinkerton,
whereas Guarding was flat. In Security Services Europe, most countries contributed to the positive development, including the airport security business and normalized levels of provisioning compared to the third quarter 2020. The cost-savings program initiated in 2020 supported the improvement in Security Services Europe, as well as in Security Services Ibero-America, where solid development in Spain and improvement in Latin America supported.
Amortization of acquisition-related intangible assets amounted to MSEK –63 (–66).
Acquisition-related costs totaled MSEK –31 (–10). For further information refer to note 6.
Items affecting comparability were MSEK –120 (–112), whereof MSEK –234 (–112) related to the cost-savingsprogram and to the transformation programs in the Group. Items affecting comparability also included MSEK 114 (0), related to a lump-sum payment in the fourth quarter from the AFA insurance company for the collectively bargained AGS group sickness insurance policy in Sweden.
Financial income and expenses amounted to MSEK –96 (–101). The financial income and expenses were positively impacted by lower interest rates, and the exchange rates for interest income and expenses.
Income before taxes amounted to MSEK 1 295 (1 038).
The Group's tax rate was 26.9 percent (26.9). The tax rate before tax on items affecting comparability was 27.2 percent (26.5).
Net income was MSEK 946 (759).
Earnings per share amounted to SEK 2.59 (2.08). Earnings per share before items affecting comparability amounted to SEK 2.82 (2.31).
Sales amounted to MSEK 79 651 (81 477) and organic sales growth to 4 percent (0) where all business segments contributed. Extra sales amounted to 16 percent (16) of total sales. Organic sales growth in Security Services North America was 4 percent (1), supported by all business units. Security Services Europe had 4 percent (–2), supported by most countries in the segment and Security Services Ibero-America showed 5 percent (3).
Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 5 percent (1).
Security solutions and electronic security sales amounted to MSEK 17 635 (17 595) or 22 percent (22) of total sales in the first nine months. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 7 percent (5).
Operating income before amortization was MSEK 4 332 (3 488) which, adjusted for changes in exchange rates, represented a real change of 34 percent (–15). The operating income was supported by corona-related government grants and support measures of MSEK 500 (550) in the first nine months, mostly within Security Services Europe. These grants and support measures relate primarily to partial unemployment support and compensate partly for increased cost levels due to idle time.
The Group's operating margin was 5.4 percent (4.3), an improvement seen in all business segments including a normalized level of provisioning compared to last year. All business units supported the development in Security Services North America in the first nine months. In Security Services Europe, most countries contributed
to the development including the airport security business and the cost-savings program initiated in 2020 also supported. The improvement in Security Services Ibero-America was primarily driven by Spain and Peru, also supported by the cost-savings program initiated in 2020. Total price adjustments in the Group were on par with wage cost increases in the first nine months.
Amortization of acquisition-related intangible assets amounted to MSEK –191 (–207).
Acquisition-related costs totaled MSEK –73 (–90). For further information refer to note 6.
Items affecting comparability were MSEK –515 (–218), whereof MSEK –629 (–218) related to the cost-savings program and to the transformation programs in the Group. The decided exit from 11 countries, as communicated in the fourth quarter of 2020, resulted in a net gain of MSEK 18 in the first nine months, which is included in items affecting comparability. For further information refer to Acquisitions and divestitures on page 13 and note 7. Items affecting comparability also included MSEK 114 (0), related to a lump-sum payment in the fourth quarter from the AFA insurance company for the collectively bargained AGS group sickness insurance policy in Sweden.
Financial income and expenses amounted to MSEK –281 (–382). The financial income and expenses were positively impacted by lower interest rates and the exchange rates for interest income and expenses.
Income before taxes amounted to MSEK 3 272 (2 591).
The Group's tax rate was 27.0 percent (27.0). The tax rate before tax on items affecting comparability was 27.0 percent (26.8).
Net income was MSEK 2 389 (1 892).
Earnings per share amounted to SEK 6.54 (5.18). Earnings per share before items affecting comparability amounted to SEK 7.57 (5.63).
Security Services North America provides protective services in the US, Canada and Mexico. The operations in the US are organized in four specialized units – Guarding, Electronic Security, Pinkerton Corporate Risk Management and Critical Infrastructure Services. There is a unit for global and national clients and specialized client segment units, such as aviation, healthcare, manufacturing and oil and gas.
| Q3 | Change, % | 9M | Change, % | Full year | |||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2021 | 2020 | Total | Real | 2021 | 2020 | Total | Real | 2020 |
| Total sales | 11 690 | 11 606 | 1 | 2 | 34 547 | 36 233 | –5 | 5 | 47 801 |
| Organic sales growth, % | 1 | 2 | 4 | 1 | 2 | ||||
| Share of Group sales, % | 43 | 44 | 43 | 44 | 44 | ||||
| Operating income before amortization | 834 | 742 | 12 | 13 | 2 328 | 2 060 | 13 | 22 | 2 800 |
| Operating margin, % | 7.1 | 6.4 | 6.7 | 5.7 | 5.9 | ||||
| Share of Group operating income, % | 52 | 56 | 54 | 59 | 57 |
Organic sales growth, %
Organic sales growth was 1 percent (2). The decline was primarily related to the business unit Guarding, where a lower level of corona-related extra sales had a significant impact in the quarter. However, the growth in the portfolio was good despite the termination of the airport security contract in Hawaii as previously communicated. The third quarter last year was burdened by the corona pandemic, primarily in the business units Electronic Security and Critical Infrastructure Services. The installation business within Electronic Security has gradually recovered since then, albeit hampered in the recent months due to coronarelated global supply chain issues. The business unit Critical Infrastructure Services has recovered following eased restrictions and lock-downs and the organic sales growth in Pinkerton was strong.
A major security contract within the healthcare client segment has been terminated as of December 2, 2021. The contract portfolio value was approximately MSEK 1 300 (MUSD 150) on an annual basis, with an operating margin below portfolio average.
Security solutions and electronic security sales represented MSEK 2 057 (2 078) or 18 percent (18) of total sales in the business segment in the third quarter.
The operating margin was 7.1 percent (6.4), where the third quarter last year was hampered by the corona pandemic, including an enhanced level of provisioning. The operating margin in Guarding was flat, despite the declined level of corona-related extra sales and impacts from labor pressure. Electronic Security performed well and improved compared to the third quarter last year, supported by the integration of FE Moran Security Solutions. Pinkerton had a strong performance, primarily driven from leverage from the sales growth, whereas Critical Infrastructure Services was somewhat behind the third quarter last year.
The Swedish krona exchange rate was flat against the US dollar. The real change was 13 percent (–2) in the third quarter.
Organic sales growth was 4 percent (1). All business units except Guarding improved organic sales growth compared to last year. The level of corona-related extra sales within Guarding decreased during the first nine months compared to the same period last year. The business units Electronic Security and Critical Infrastructure Services have gradually recovered from the severe impacts from the corona pandemic during the first nine months last year, and Pinkerton had a strong development across the business. The client retention rate was 89 percent (91), excluding the effect of corona-related temporary reductions.
Security solutions and electronic security sales represented MSEK 6 086 (6 417) or 18 percent (18) of total sales in the business segment in the first nine months.
The operating margin was 6.7 percent (5.7), an improvement driven by all business units. The first nine months last year were hampered by the corona pandemic, including an increased level of provisioning. The operating margin in Guarding was solid and Electronic Security improved helped by the recovery of the installation business, and the acquisition of FE Moran Security Solutions. Critical Infrastructure Services also improved as corona-related restrictions and lock-downs have eased. The strong performance in Pinkerton was primarily driven from leverage from the sales growth.
The Swedish krona exchange rate strengthened against the US dollar, which had a negative effect on operating income in Swedish kronor. The real change was 22 percent (–7) in the first nine months.
Security Services Europe provides protective services with operations in 22 countries. The full range of protective services includes on-site, mobile and remote guarding, electronic security, fire and safety services and corporate risk management. In addition there are three specialized units for global clients, electronic security and for security solutions.
| Q3 | Change, % | 9M | Change, % | Full year | |||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2021 | 2020 | Total | Real | 2021 | 2020 | Total | Real | 2020 |
| Total sales | 11 898 | 11 284 | 5 | 7 | 34 166 | 33 867 | 1 | 5 | 45 188 |
| Organic sales growth, % | 6 | –1 | 4 | –2 | –2 | ||||
| Share of Group sales, % | 44 | 43 | 43 | 42 | 42 | ||||
| Operating income before amortization | 759 | 574 | 32 | 34 | 1 942 | 1 387 | 40 | 46 | 2 069 |
| Operating margin, % | 6.4 | 5.1 | 5.7 | 4.1 | 4.6 | ||||
| Share of Group operating income, % | 47 | 43 | 45 | 40 | 42 |
Organic sales growth, %
Organic sales growth was 6 percent (–1), on a weak comparative due to the corona pandemic, primarily within airport security. Most countries had good momentum and positive organic sales growth in the quarter reflecting the gradual recovery as restrictions are easing. The airport security business sales improved substantially compared to the third quarter last year, but remained below pre-corona levels, and we continue to review the airport security contract portfolio.
Security solutions and electronic security sales represented MSEK 2 843 (2 638) or 24 percent (23) of total sales in the business segment.
The operating margin was 6.4 percent (5.1). The third quarter last year was negatively impacted by the corona pandemic, primarily within airport security, and by enhanced levels of provisioning. Since then the situation has improved overall and cost levels of provisioning have normalized. Most countries contributed to the operating margin development, where improved profitability in the airport security contract portfolio and high-margin corona-related extra sales were important factors. The cost-savings program that was initiated in the Group in 2020 also supported, and coronarelated government grants and support in several countries helped offsetting certain negative impacts from the corona pandemic.
The Swedish krona exchange rate strengthened against foreign cur rencies, primarily the euro, which had a negative effect on operating income in Swedish kronor. The real change was 34 percent (–13) in the third quarter.
Organic sales growth was 4 percent (–2). The first nine months last year were negatively impacted by the corona pandemic, primarily within airport security. Most countries had positive organic sales growth reflecting the gradual recovery as the estrictions and lock-downs are easing. The client retention rate was 91 percent (91), excluding the effect of corona-related temporary reductions.
Security solutions and electronic security sales represented MSEK 8 242 (7 891) or 24 percent (23) of total sales in the business segment.
The operating margin was 5.7 percent (4.1). The first nine months last year were severely hampered by the corona pandemic, primarily within airport security, and by enhanced levels of provisioning. Since then the situation has gradually improved, and cost levels of provisioning have normalized. Most countries contributed to the operating margin development, where improved profitability in the airport security contract portfolio and high-margin corona-related extra sales were important factors. The improvement was further supported by the cost-savings program that was initiated in the Group in 2020. Corona-related government grants and support in several countries helped offsetting certain negative impacts from the corona pandemic.
The Swedish krona exchange rate strengthened against foreign currencies, primarily the euro, which had a negative effect on operating income in Swedish kronor. The real change was 46 percent (–23) in the first nine months.
Security Services Ibero-America provides protective services in seven Latin American countries as well as in Portugal and Spain in Europe. The offered services include on-site, mobile and remote guarding, electronic security, fire and safety services and corporate risk management.
| Q3 | Change, % | 9M | Change, % | Full year | |||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2021 | 2020 | Total | Real | 2021 | 2020 | Total | Real | 2020 |
| Total sales | 3 124 | 3 045 | 3 | 10 | 9 046 | 9 549 | –5 | 5 | 12 552 |
| Organic sales growth, % | 10 | 0 | 5 | 3 | 2 | ||||
| Share of Group sales, % | 11 | 11 | 11 | 12 | 12 | ||||
| Operating income before amortization | 184 | 138 | 33 | 50 | 499 | 410 | 22 | 34 | 570 |
| Operating margin, % | 5.9 | 4.5 | 5.5 | 4.3 | 4.5 | ||||
| Share of Group operating income, % | 11 | 10 | 12 | 12 | 12 |
Organic sales growth, %
Organic sales growth was 10 percent (0), with the third quarter last year severely hampered by the corona pandemic. Organic sales growth in Spain was 5 percent (4) with a solid development. Organic sales growth in Latin America improved compared to last year with most countries showing positive organic sales growth, although price increases in Argentina was the primary driver. The airport security business gradually recovered, although still below pre-corona levels. Portfolio refinement programs in Argentina and Peru hampered organic sales growth.
Security solutions and electronic security sales represented MSEK 950 (900) or 30 percent (30) of total sales in the business segment.
The operating margin was 5.9 percent (4.5). The third quarter last year was negatively impacted by the corona pandemic, primarily within airport security, and by enhanced levels of provisioning. Spain improved compared to last year, also supported by efficiency gains from the integration of Techco Security. The improvement was also supported by Peru, including impacts from the portfolio refinement program, and by Argentina where the operating margin improvement included net positive impact from corona-related support. The cost-savings program that was initiated in the Group in 2020 also supported the operating margin improvement.
The Swedish krona exchange rate strengthened against the Argentinian peso and the euro, which had a
negative impact on operating income in Swedish kronor. The real change in the segment was 50 percent (–6) in the third quarter.
Organic sales growth was 5 percent (3), primarily driven by organic sales growth in Spain of 4 percent (1) and by price increases in Argentina. The portfolio refinement programs in Argentina and Peru hampered organic sales growth and the client retention rate was 93 percent (94) excluding the effect of corona-related temporary reductions.
Security solutions and electronic security sales represented MSEK 2 756 (2 805) or 30 percent (29) of total sales in the business segment.
The operating margin was 5.5 percent (4.3). The improvement was primarily driven by Spain, that has developed well and also supported by efficiency gains from the integration of Techco Security. In Latin America, the operating margin also improved which primarily derived from bad debt provision recovery and portfolio refinement programs in Argentina and Peru. The improvement in the business segment was also supported by the cost-savings program that was initiated in the Group in 2020.
The Swedish krona exchange rate strengthened against the Argentinian peso and the euro, which had a negative impact on operating income in Swedish kronor. The real change in the segment was 34 percent (–2) in the first nine months.
| MSEK | Jan–Sep 2021 |
|---|---|
| Operating income before amortization |
4 332 |
| Net investments | –30 |
| Change in accounts receivable | –345 |
| Change in other operating capital employed |
–541 |
| Cash flow from operating activities | 3 416 |
| Financial income and expenses paid | –277 |
| Current taxes paid | –896 |
| Free cash flow | 2 243 |
Cash flow from operating activities amounted to MSEK 1 203 (2 639), equivalent to 75 percent (199) of operating income before amortization.
The impact from changes in accounts receivable was MSEK –105 (86). The level of days of sales outstanding was stable but there was a negative impact from the improved organic sales growth. Changes in other operating capital employed were MSEK –300 (1 242). In the third quarter approximately MSEK 600 out of the previously postponed payroll tax balances in the North American operations were paid while the comparatives were positively impacted by the timing of payments relating to payroll taxes and value added tax in Europe and North America of approximately MSEK 400. The quarter was furthermore negatively impacted by payroll timing in the North American operations. There is no timing impact for the first nine months and no timing impact is expected for the full year cash flow.
Free cash flow was MSEK 1 070 (2 409), equivalent to 97 percent (239) of adjusted income.
Cash flow from investing activities, acquisitions and divestitures, was MSEK –838 (–82). Refer to note 6 for further information.
Cash flow from items affecting comparability amounted to MSEK –157 (–78). Refer to note 7 for further information.
Cash flow from financing activities was MSEK –287 (–1 400) due to a net decrease in borrowings.
Cash flow for the period was MSEK –212 (849).
Cash flow from operating activities amounted to MSEK 3 416 (5 680), equivalent to 79 percent (163) of operating income before amortization.
The impact from changes in accounts receivable was MSEK –345 (289). The level of days of sales outstanding was stable but there was negative impact from the improved organic sales
growth whereas last year accounts receivable saw a reduction impacted by both lower organic sales growth as well as an improved collection level. Changes in other operating capital employed were MSEK –541 (1 980). In the third quarter approximately MSEK 600 out of the previously postponed payroll tax balances in the North American operations were paid while the comparatives were positively impacted by the timing of payments relating to payroll taxes and value added tax in Europe and North America of approximately MSEK 1 300. Other than the remaining amount for payroll taxes in the North American operations of an additional approximately MSEK 600 to be paid in 2022, no material balances remain to be settled out of the various governmental schemes for postponement of various tax payments introduced during the corona pandemic.
Financial income and expenses paid was MSEK –277 (–355) and current taxes paid was MSEK –896 (–801).
Cash flow from operating activities includes net investments in non-current tangible and intangible assets, amounting to MSEK –30 (–77), also including capital expenditures in equipment for solutions contracts. The net investments are the result of investments of MSEK –1 966 (–2 114) and reversal of depreciation of MSEK 1 936 (2 037).
Free cash flow was MSEK 2 243 (4 524), equivalent to 73 percent (187) of adjusted income.
Cash flow from investing activities, acquisitions and divestitures, was MSEK –1 133 (–510). Refer to note 6 for further information.
Cash flow from items affecting comparability amounted to MSEK –568 (–217). Refer to note 7 for further information.
Cash flow from financing activities was MSEK –1 319 (–433) due to dividend paid of MSEK –1 460 (0) and a net increase in borrowings of MSEK 141 (–433).
Cash flow for the period was MSEK –777 (3 364). The closing balance for liquid funds after translation differences of MSEK 14 was MSEK 3 957 (4 720 as of December 31, 2020).
| MSEK | Sep 30, 2021 |
|---|---|
| Operating capital employed | 10 069 |
| Goodwill | 22 802 |
| Acquisition-related intangible assets | 1 762 |
| Shares in associated companies | 328 |
| Capital employed | 34 961 |
| Net debt | 15 612 |
| Shareholders' equity | 19 349 |
| Financing | 34 961 |
| MSEK | Jan–Sep 2021 |
|---|---|
| Jan 1, 2021 | –14 335 |
| Free cash flow | 2 243 |
| Acquisitions / divestitures | –1 133 |
| Items affecting comparability | –568 |
| Dividend paid | –1 460 |
| Lease liabilities | 162 |
| Change in net debt | –756 |
| Revaluation | –6 |
| Translation | –515 |
| Sep 30, 2021 | –15 612 |
The Group's operating capital employed was MSEK 10 069 (8 893 as of December 31, 2020), corresponding to 9 percent of sales (8 as of December 31, 2020), adjusted for the full-year sales figures of acquired units. The translation of foreign operating capital employed to Swedish kronor increased the Group's operating capital employed by MSEK 360.
The annual impairment test of all Cash Generating Units (CGU), which is required under IFRS, took place during the third quarter 2021 in conjunction with the business plan process for 2022. None of the CGUs tested for impairment had a carrying amount that exceeded the recoverable amount. Consequently, no impairment losses have been recognized in 2021. No impairment losses were recognized in 2020 either.
The Group's total capital employed was MSEK 34 961 (32 042 as of December 31, 2020). The translation of foreign capital employed to Swedish kronor increased the Group's capital employed by MSEK 1 269. The return on capital employed was 14 percent (13 as of December 31, 2020).
The Group's net debt amounted to MSEK 15 612 (14 335 as of December 31, 2020). The net debt was positively impacted mainly by the free cash flow of MSEK 2 243, while it was negatively impacted mainly by a dividend of MSEK –1 460, paid to the shareholders in May 2021, net payments for acquisitions and divestitures of MSEK –1 133, payments for items affecting comparability of MSEK –568 and translation differences of MSEK –515.
The net debt to EBITDA ratio was 2.1 (1.9). The free cash flow to net debt ratio amounted to 0.23 (0.44). The interest coverage ratio amounted to 12.9 (8.7).
Securitas has a Revolving Credit Facility with its ten key relationship banks. The credit facility comprises one tranche of MEUR 938 originally maturing in 2025. In April 2021, the maturity was extended to 2026 and there is a possibility to extend in 2022 to 2027. It was undrawn on September 30, 2021.
The MEUR 4 000 Euro Medium Term Note program (EMTN) was updated on April 9, 2021. The Commercial Paper Program amounts to MSEK 5 000, of which MSEK 1 150 was issued as at September 30, 2021.
On May 25, 2021, Standard and Poor's rating for Securitas was confirmed BBB/A-2 with stable outlook.
Further information regarding financial instruments and credit facilities is provided in note 9.
Shareholders' equity amounted to MSEK 19 349 (17 707 as of December 31, 2020). The translation of foreign assets and liabilities into Swedish kronor increased shareholders' equity by MSEK 754. Refer to the statement of comprehensive income on page 17 for further information.
The total number of shares amounted to 365 058 897 (365 058 897) as of September 30, 2021. Refer to page 20 for further information.
| Company | Business segment 1) | Included from |
Acquired share 2) |
Annual sales 3) |
Enterprise value 4) |
Goodwill | Acq. related intangible assets |
|---|---|---|---|---|---|---|---|
| Opening balance | 21 414 | 1 424 | |||||
| Dansk Brandteknik, Denmark | Security Services Europe | Feb 22 | 100 | 81 | 148 | 80 | 75 |
| Protection One, Germany6) | Security Services Europe | Aug 19 | 100 | 337 | 682 | 445 | 171 |
| Tepe Güvenlik, Turkey | Security Services Europe | Aug 24 | 100 | 85 | 103 | 65 | 34 |
| Other acquisitions and divestitures5,6) | – | – | –118 | 116 | –124 | 202 | |
| Total acquisitions and divestitures January–September 2021 |
385 | 1 0497) | 466 | 482 | |||
| Amortization of acquisition-related intangible assets | – | –191 | |||||
| Translation differences and remeasurement for hyperinflation |
922 | 47 | |||||
| Closing balance | 22 802 | 1 762 |
1) Refers to business segment with main responsibility for the acquisition.
2) Refers to voting rights for acquisitions 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 other acquisitions for the period and updated previous year acquisition calculations for the following entities: FE Moran Security Solutions, the US, Protector i Sundsvall, Eventsäkerhet/7H Bevakning (contract portfolios), Polar Park (contract portfolio), Sweden, SAMCA Vagt, KLEY, Denmark, Oy Bevex Security (contract portfolio), Kokkolan Vartiointi ja Kiinteistövalvonta Pekka Isoaho (contract portfolio), Finland, ORQUAL, Switzerland, KONTROLL DATA-SERVICE Gesellschaft für Sicherheit und Kontrollwesen, Austria, STANLEY Security in Germany, Switzerland, Portugal, Singapore and India and Fredon Security, Australia. Related also to divestitures of Securitas Estonia, Securitas Slovenia, Securitas Panama (asset deal), Securitas Sri Lanka, Securitas Egypt and Securitas Jordan as well as to deferred considerations paid in the US, Sweden, Germany, France, Austria, Turkey and Australia.
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 –117. Total deferred considerations, short-term and long-term, in the Group's balance sheet amount to MSEK 164.
7) Cash flow from acquisitions and divestitures amounts to MSEK –1 133, which is the sum of enterprise value MSEK –1 049 and acquisition-related costs paid MSEK –84.
All acquisition calculations are finalized no later than one year after the acquisition is made. Transactions with noncontrolling interests are specified in the statement of changes in shareholders' equity on page 20. Transaction costs and revaluation of deferred considerations can be found in note 6 on page 26.
Securitas has acquired Dansk Brandteknik, a leading Danish fire and safety company that specializes in fire and safety services and equipment, including related consulting and training services. The acquisition will significantly enhance Securitas' protective services capabilities in Denmark and is in line with the Group's strategy of doubling its security solutions and electronic security sales by 2023.
The company has a nationwide presence in Denmark with 40 employees and approximately 7 500 business clients, mainly in the small- and medium-sized enterprise (SME) segment, with high client retention rates.
The acquisition-related costs are expected to be MSEK 6, to be recognized in 2021 and 2022, respectively. The acquisition is expected to be accretive to EPS as of 2021 and
was consolidated in Securitas as of February 22, 2021.
Securitas has acquired Protection One, the German market leader specializing in remote technology-driven security solutions and electronic security. The acquisition will enhance Securitas' protective services capabilities in Germany and is in line with the Group's strategy of doubling its security solutions and electronic security sales by 2023.
The company has 230 employees in Germany and is present at 12 locations with the operation center based in Meerbusch, offering remote monitoring services with 24/7 real-time intervention. Combining its high-performance and tailor-made installation offering, the company provides full scope of electronic security services across 10 300 objects for approximately 7 000 clients, mainly small and medium-sized businesses.
The acquisition-related costs are expected to be MSEK 45, to be recognized in the period 2021 to 2023. The acquisition is expected to be accretive to EPS as of 2022. The acquisition was approved by competition authorities during the third quarter of 2021 and
was consolidated in Securitas as of August 19, 2021.
Securitas has acquired Tepe Güvenlik, a leading electronic security company in Turkey. Through this acquisition, Securitas becomes number two in the monitoring market in Turkey, and the acquisition is in line with the Group's strategy of doubling its security solutions and electronic security sales by 2023.
The company has 250 employees and operations mainly in Ankara and Istanbul, including an operation center and a nationwide technical service network. Tepe Güvenlik specializes in electronic security solutions, alarm systems and alarm monitoring for corporate clients, SME's and residentials. The company has more than 50 000 connections, representing a significant addition to Securitas' existing connection base in Turkey today.
The acquisition-related costs are expected to be approximately MSEK 13, to be recognized in the period 2021 to 2023. The acquisition is expected to be accretive to EPS as of 2023. The acquisition was approved by competition authorities during the third quarter of 2021 and was consolidated in Securitas as of August 24, 2021.
For critical estimates and judgments, provisions and contingent liabilities refer to the 2020 Annual Report and to note 12 on page 29. If no significant events have occurred relating to
the information in the Annual Report or previous Interim Reports published during 2021, no further comments are made in the Interim Report for the respective case.
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; contract and acquisition risks, operational assignment risks and financial risks. Securitas' approach to enterprise risk management is described in more detail in the Annual Report for 2020.
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.
Securitas as well as other companies continue to face the challenge of the corona pandemic. As disclosed in earlier reports and further in this interim report, the corona pandemic has in different ways impacted the Group's result, and poses an additional challenge when making estimates and judgments. It is currently unclear when certain service levels will return to normal levels and to what extent any costs will be further supported by government grants. Government grants and other relief measures include requirements that need to be fulfilled in order to be eligible for the grants. Together with the valuation of accounts receivable and certain employee benefits, these are key elements in relation to estimates and judgments in preparing the statement of income and balance sheet as well as disclosures. Further,
increased risks are noticed related to the general macro economic environment, and it is unclear what type of impact the corona pandemic will have on the mid- and longer term economical development of the different markets and geographies in which we operate.
For the forthcoming three-month period, the financial impact of the corona pandemic as well as certain items affecting comparability, provisions and contingent liabilities, as described in the Annual Report for 2020 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.
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.
The Parent Company's income amounted to MSEK 969 (805) and mainly relates to license fees and other income from subsidiaries.
Financial income and expenses amounted to MSEK 1 704 (–331). The increase compared with last year is mainly explained by higher dividends received from subsidiaries. Income before taxes amounted to MSEK 1 852 (–42).
The Parent Company's non-current assets amounted to MSEK 46 003 (45 822 as of December 31, 2020) and mainly comprise shares in subsidiaries of MSEK 44 350 (44 233 as of December 31, 2020). Current assets amounted to MSEK 5 031 (4 052 as of December 31, 2020) of which liquid funds accounted for MSEK 1 123 (151 as of December 31, 2020).
Shareholders' equity amounted to MSEK 29 299 (28 999 as of December 31, 2020). A dividend of MSEK 1 460 (0) was paid to the shareholders in May 2021.
The Parent Company's liabilities and untaxed reserves amounted to MSEK 21 735 (20 875 as of December 31, 2020) and mainly consist of interest-bearing debt.
For further information, refer to the Parent Company's condensed financial statements on page 30.
The Annual General Meeting will be held on Thursday, May 5, 2022, in Stockholm, Sweden.
Stockholm, October 29, 2021
Magnus Ahlqvist President and Chief Executive Officer
This report has not been reviewed by the company's auditors.
| MSEK | Note | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|---|
| Sales | 27 027 | 26 212 | 78 770 | 80 499 | 106 642 | |
| Sales, acquired business | 311 | 289 | 881 | 978 | 1 312 | |
| Total sales | 3 | 27 338 | 26 501 | 79 651 | 81 477 | 107 954 |
| Organic sales growth, % | 4 | 4 | 0 | 4 | 0 | 0 |
| Production expenses | –22 263 | –21 740 | –65 126 | –67 503 | –89 046 | |
| Gross income | 5 075 | 4 761 | 14 525 | 13 974 | 18 908 | |
| Selling and administrative expenses | –3 491 | –3 453 | –10 252 | –10 550 | –14 100 | |
| Other operating income | 3 | 10 | 8 | 31 | 28 | 39 |
| Share in income of associated companies | 11 | 11 | 28 | 36 | 45 | |
| Operating income before amortization | 1 605 | 1 327 | 4 332 | 3 488 | 4 892 | |
| Operating margin, % | 5.9 | 5.0 | 5.4 | 4.3 | 4.5 | |
| Amortization of acquisition-related intangible assets | –63 | –66 | –191 | –207 | –286 | |
| Acquisition-related costs | 6 | –31 | –10 | –73 | –90 | –137 |
| Items affecting comparability | 7 | –120 | –112 | –515 | –218 | –640 |
| Operating income after amortization | 1 391 | 1 139 | 3 553 | 2 973 | 3 829 | |
| Financial income and expenses | 8, 9 | –96 | –101 | –281 | –382 | –500 |
| Income before taxes | 1 295 | 1 038 | 3 272 | 2 591 | 3 329 | |
| Net margin, % | 4.7 | 3.9 | 4.1 | 3.2 | 3.1 | |
| Current taxes | –409 | –220 | –985 | –686 | –1 048 | |
| Deferred taxes | 60 | –59 | 102 | –13 | 135 | |
| Net income for the period | 946 | 759 | 2 389 | 1 892 | 2 416 | |
| Whereof attributable to: | ||||||
| Equity holders of the Parent Company | 944 | 758 | 2 386 | 1 892 | 2 419 | |
| Non-controlling interests | 2 | 1 | 3 | 0 | –3 | |
| Earnings per share before and after dilution (SEK) | 2.59 | 2.08 | 6.54 | 5.18 | 6.63 | |
| Earnings per share before and after dilution and before items affecting comparability (SEK) |
2.82 | 2.31 | 7.57 | 5.63 | 8.02 | |
| MSEK | Note | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|---|
| Net income for the period | 946 | 759 | 2 389 | 1 892 | 2 416 | |
| Other comprehensive income for the period | ||||||
| Items that will not be reclassified to the statement of income | ||||||
| Remeasurements of defined benefit pension plans net of tax | 4 | –18 | 108 | 19 | –78 | |
| Total items that will not be reclassified to the statement of income |
10 | 4 | –18 | 108 | 19 | –78 |
| Items that subsequently may be reclassified to the statement of income |
||||||
| Remeasurement for hyperinflation net of tax | 8 | 18 | 12 | 65 | 38 | 62 |
| Cash flow hedges net of tax | 17 | –8 | –16 | –49 | –22 | |
| Cost of hedging net of tax | –3 | –4 | 12 | 38 | 34 | |
| Net investment hedges net of tax | –100 | 122 | –236 | –28 | 528 | |
| Other comprehensive income from associated companies, translation differences |
8 | –2 | 13 | –15 | –40 | |
| Translation differences | 363 | –525 | 977 | –944 | –3 087 | |
| Total items that subsequently may be reclassified to the statement of income |
10 | 303 | –405 | 815 | –960 | –2 525 |
| Other comprehensive income for the period | 10 | 307 | –423 | 923 | –941 | –2 603 |
| Total comprehensive income for the period | 1 253 | 336 | 3 312 | 951 | –187 | |
| Whereof attributable to: | ||||||
| Equity holders of the Parent Company | 1 252 | 336 | 3 309 | 955 | –180 | |
| Non-controlling interests | 1 | 0 | 3 | –4 | –7 |
| Operating cash flow MSEK | Note | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|---|
| Operating income before amortization | 1 605 | 1 327 | 4 332 | 3 488 | 4 892 | |
| Investments in non-current tangible and intangible assets | –653 | –685 | –1 966 | –2 114 | –2 787 | |
| Reversal of depreciation | 656 | 669 | 1 936 | 2 037 | 2 690 | |
| Change in accounts receivable | –105 | 86 | –345 | 289 | 123 | |
| Change in other operating capital employed | –300 | 1 242 | –541 | 1 980 | 2 289 | |
| Cash flow from operating activities | 1 203 | 2 639 | 3 416 | 5 680 | 7 207 | |
| Cash flow from operating activities, % | 75 | 199 | 79 | 163 | 147 | |
| Financial income and expenses paid | –19 | –24 | –277 | –355 | –401 | |
| Current taxes paid | –114 | –206 | –896 | –801 | –862 | |
| Free cash flow | 1 070 | 2 409 | 2 243 | 4 524 | 5 944 | |
| Free cash flow, % | 97 | 239 | 73 | 187 | 178 | |
| Cash flow from investing activities, acquisitions and divestitures | 6 | –838 | –82 | –1 133 | –510 | –1 801 |
| Cash flow from items affecting comparability | 7 | –157 | –78 | –568 | –217 | –405 |
| Cash flow from financing activities | –287 | –1 400 | –1 319 | –433 | –2 762 | |
| Cash flow for the period | –212 | 849 | –777 | 3 364 | 976 |
| Change in net debt MSEK | Note | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|---|
| Opening balance | –15 618 | –15 932 | –14 335 | –17 541 | –17 541 | |
| Cash flow for the period | –212 | 849 | –777 | 3 364 | 976 | |
| Change in lease liabilities | 85 | –46 | 162 | –77 | –139 | |
| Change in loans | 287 | 1 400 | –141 | 433 | 1 010 | |
| Change in net debt before revaluation and translation differences |
160 | 2 203 | –756 | 3 720 | 1 847 | |
| Revaluation of financial instruments | 9 | 18 | –14 | –6 | –12 | 17 |
| Translation differences | –172 | 208 | –515 | 298 | 1 342 | |
| Change in net debt | 6 | 2 397 | –1 277 | 4 006 | 3 206 | |
| Closing balance | –15 612 | –13 535 | –15 612 | –13 535 | –14 335 |
| Cash flow MSEK | Note | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|---|
| Cash flow from operations | 1 506 | 2 958 | 3 467 | 6 252 | 8 072 | |
| Cash flow from investing activities | –1 200 | –481 | –2 248 | –1 761 | –3 438 | |
| Cash flow from financing activities | –518 | –1 628 | –1 996 | –1 127 | –3 658 | |
| Cash flow for the period | –212 | 849 | –777 | 3 364 | 976 |
| Change in liquid funds MSEK | Note | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|---|
| Opening balance | 4 156 | 6 400 | 4 720 | 3 948 | 3 948 | |
| Cash flow for the period | –212 | 849 | –777 | 3 364 | 976 | |
| Translation differences | 13 | –46 | 14 | –109 | –204 | |
| Closing balance | 3 957 | 7 203 | 3 957 | 7 203 | 4 720 |
| MSEK Note |
Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Operating capital employed | 10 069 | 10 285 | 8 893 |
| Operating capital employed as % of sales | 9 | 10 | 8 |
| Return on operating capital employed, % | 51 | 40 | 39 |
| Goodwill | 22 802 | 21 930 | 21 414 |
| Acquisition-related intangible assets | 1 762 | 1 418 | 1 424 |
| Shares in associated companies | 328 | 330 | 311 |
| Capital employed | 34 961 | 33 963 | 32 042 |
| Return on capital employed, % | 14 | 14 | 13 |
| Net debt | –15 612 | –13 535 | –14 335 |
| Shareholders' equity | 19 349 | 20 428 | 17 707 |
| Net debt equity ratio, multiple | 0.81 | 0.66 | 0.81 |
| Note | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| 22 802 | 21 930 | 21 414 | |
| 1 762 | 1 418 | 1 424 | |
| 1 899 | 1 908 | 1 788 | |
| 3 249 | 3 443 | 3 334 | |
| 3 388 | 3 380 | 3 262 | |
| 328 | 330 | 311 | |
| 1 908 | 1 780 | 1 835 | |
| 447 | 629 | 686 | |
| 35 783 | 34 818 | 34 054 | |
| 22 009 | 22 187 | 20 209 | |
| 260 | 214 | 144 | |
| 3 957 | 7 203 | 4 720 | |
| 26 226 | 29 604 | 25 073 | |
| 62 009 | 64 422 | 59 127 | |
| MSEK | Note | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|---|
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | ||||
| Attributable to equity holders of the Parent Company | 19 340 | 20 414 | 17 697 | |
| Non-controlling interests | 9 | 14 | 10 | |
| Total shareholders' equity | 19 349 | 20 428 | 17 707 | |
| Equity ratio, % | 31 | 32 | 30 | |
| Long-term liabilities | ||||
| Non-interest-bearing long-term liabilities | 289 | 328 | 265 | |
| Long-term lease liabilities | 2 470 | 2 644 | 2 554 | |
| Other interest-bearing long-term liabilities | 11 829 | 12 722 | 11 694 | |
| Non-interest-bearing provisions | 2 511 | 2 468 | 2 477 | |
| Total long-term liabilities | 17 099 | 18 162 | 16 990 | |
| Current liabilities | ||||
| Non-interest-bearing current liabilities and provisions | 19 584 | 19 617 | 18 793 | |
| Current lease liabilities | 893 | 893 | 876 | |
| Other interest-bearing current liabilities | 5 084 | 5 322 | 4 761 | |
| Total current liabilities | 25 561 | 25 832 | 24 430 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 62 009 | 64 422 | 59 127 |
| Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 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 | Attributable to equity holders of the Parent Company |
Non controlling interests |
Total |
| Opening balance January 1, 2021 / 2020 | 17 697 | 10 | 17 707 | 19 569 | 30 | 19 599 | 19 569 | 30 | 19 599 |
| Total comprehensive income for the period |
3 309 | 3 | 3 312 | 955 | –4 | 951 | –180 | –7 | –187 |
| Transactions with non-controlling interests |
– | –4 | –4 | – | –12 | –12 | – | –13 | –13 |
| Share-based incentive schemes | –206 | – | –206 1) | –110 | – | –110 | 60 | – | 60 |
| Dividend paid to the shareholders of the Parent Company |
–1 460 | – | –1 460 | – | – | – | –1 752 | – | –1 752 |
| Closing balance September 30 / December 31, 2021 / 2020 |
19 340 | 9 | 19 349 | 20 414 | 14 | 20 428 | 17 697 | 10 | 17 707 |
1) Refers to a swap agreement for shares in Securitas AB of MSEK –159, hedging the share portion of Securitas share based incentive scheme 2020. Refers also to repurchase of own shares of MSEK –47.
| SEK | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|
| Share price, end of period | 139.05 | 137.25 | 139.05 | 137.25 | 132.75 |
| Earnings per share before and after dilution 1, 2) | 2.59 | 2.08 | 6.54 | 5.18 | 6.63 |
| Earnings per share before and after dilution and before items affecting comparability 1, 2) |
2.82 | 2.31 | 7.57 | 5.63 | 8.02 |
| Dividend | – | – | – | – | 4.00 |
| P/E-ratio after dilution and before items affecting comparability | – | – | – | – | 17 |
| Share capital (SEK) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
| Number of shares outstanding 1) | 364 583 897 | 364 933 897 | 364 583 897 | 364 933 897 | 364 933 897 |
| Average number of shares outstanding 1, 3) | 364 583 897 | 364 933 897 | 364 790 307 | 364 933 897 | 364 933 897 |
| Treasury shares 4) | 475 000 | 125 000 | 475 000 | 125 000 | 125 000 |
1) There are no convertible debenture loans. Consequently there is no difference 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) In June 2021, 350 000 shares were repurchased.
| Security Services |
Security Services |
Security Services |
||||
|---|---|---|---|---|---|---|
| MSEK | North America | Europe | Ibero-America | Other | Eliminations | Group |
| Sales, external | 11 685 | 11 898 | 3 124 | 631 | – | 27 338 |
| Sales, intra-group | 5 | 0 | 0 | 0 | –5 | – |
| Total sales | 11 690 | 11 898 | 3 124 | 631 | –5 | 27 338 |
| Organic sales growth, % | 1 | 6 | 10 | – | – | 4 |
| Operating income before amortization | 834 | 759 | 184 | –172 | – | 1 605 |
| of which share in income of associated companies | 2 | – | – | 9 | – | 11 |
| Operating margin, % | 7.1 | 6.4 | 5.9 | – | – | 5.9 |
| Amortization of acquisition-related intangible assets | –21 | –32 | –2 | –8 | – | –63 |
| Acquisition-related costs | –10 | –19 | 0 | –2 | – | –31 |
| Items affecting comparability | 0 | –24 | –34 | –62 | – | –120 |
| Operating income after amortization | 803 | 684 | 148 | –244 | – | 1 391 |
| Financial income and expenses | – | – | – | – | – | –96 |
| Income before taxes | – | – | – | – | – | 1 295 |
| Security Services |
Security Services |
Security Services |
||||
|---|---|---|---|---|---|---|
| MSEK | North America | Europe | Ibero-America | Other | Eliminations | Group |
| Sales, external | 11 593 | 11 284 | 3 045 | 579 | – | 26 501 |
| Sales, intra-group | 13 | 0 | 0 | 0 | –13 | – |
| Total sales | 11 606 | 11 284 | 3 045 | 579 | –13 | 26 501 |
| Organic sales growth, % | 2 | –1 | 0 | – | – | 0 |
| Operating income before amortization | 742 | 574 | 138 | –127 | – | 1 327 |
| of which share in income of associated companies | 1 | – | – | 10 | – | 11 |
| Operating margin, % | 6.4 | 5.1 | 4.5 | – | – | 5.0 |
| Amortization of acquisition-related intangible assets | –20 | –36 | –4 | –6 | – | –66 |
| Acquisition-related costs | –6 | –1 | –1 | –2 | – | –10 |
| Items affecting comparability | –27 | –59 | 0 | –26 | – | –112 |
| Operating income after amortization | 689 | 478 | 133 | –161 | – | 1 139 |
| Financial income and expenses | – | – | – | – | – | –101 |
| Income before taxes | – | – | – | – | – | 1 038 |
| MSEK | Security Services North America |
Security Services Europe |
Security Services Ibero-America |
Other | Eliminations | Group |
|---|---|---|---|---|---|---|
| Sales, external | 34 536 | 34 166 | 9 046 | 1 903 | – | 79 651 |
| Sales, intra-group | 11 | 0 | 0 | 1 | –12 | – |
| Total sales | 34 547 | 34 166 | 9 046 | 1 904 | –12 | 79 651 |
| Organic sales growth, % | 4 | 4 | 5 | – | – | 4 |
| Operating income before amortization | 2 328 | 1 942 | 499 | –437 | – | 4 332 |
| of which share in income of associated companies | 4 | – | – | 24 | – | 28 |
| Operating margin, % | 6.7 | 5.7 | 5.5 | – | – | 5.4 |
| Amortization of acquisition-related intangible assets | –62 | –96 | –9 | –24 | – | –191 |
| Acquisition-related costs | –21 | –34 | –13 | –5 | – | –73 |
| Items affecting comparability | –77 | –119 | –161 | –158 | – | –515 |
| Operating income after amortization | 2 168 | 1 693 | 316 | –624 | – | 3 553 |
| Financial income and expenses | – | – | – | – | – | –281 |
| Income before taxes | – | – | – | – | – | 3 272 |
| Security Services |
Security Services |
Security Services |
||||
|---|---|---|---|---|---|---|
| MSEK | North America | Europe | Ibero-America | Other | Eliminations | Group |
| Sales, external | 36 220 | 33 867 | 9 549 | 1 841 | – | 81 477 |
| Sales, intra-group | 13 | 0 | 0 | 1 | –14 | – |
| Total sales | 36 233 | 33 867 | 9 549 | 1 842 | –14 | 81 477 |
| Organic sales growth, % | 1 | –2 | 3 | – | – | 0 |
| Operating income before amortization | 2 060 | 1 387 | 410 | –369 | – | 3 488 |
| of which share in income of associated companies | 3 | – | – | 33 | – | 36 |
| Operating margin, % | 5.7 | 4.1 | 4.3 | – | – | 4.3 |
| Amortization of acquisition-related intangible assets | –62 | –112 | –12 | –21 | – | –207 |
| Acquisition-related costs | –25 | –3 | –52 | –10 | – | –90 |
| Items affecting comparability | –96 | –68 | –1 | –53 | – | –218 |
| Operating income after amortization | 1 877 | 1 204 | 345 | –453 | – | 2 973 |
| Financial income and expenses | – | – | – | – | – | –382 |
| Income before taxes | – | – | – | – | – | 2 591 |
This interim 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 interim report, can be found in note 2 on pages 87 to 93 in the Annual Report for 2020. 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 142 in the Annual Report for 2020.
Securitas has adopted phase 2 of the amendments to IFRS 9 Financial instruments related to the IBOR reform that came into effect on January 1, 2021. Phase 2 addresses the accounting for effects on the financial statements due to the IBOR reform, including the effects of changes to contractual cash flows or hedging relationships that may arise as a consequence of the interest rate benchmark reform. The amendments ensure that there is no impact on the Group's financial statements due to the IBOR reform.
None of the other published standards and interpretations that are mandatory for the Group's financial year 2021 are assessed to have any 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 2022 or later remain to be assessed.
For definitions and calculations of key ratios not defined in IFRS, refer to notes 4 and 5 in this interim report as well as to note 3 in the Annual Report 2020.
There have been no significant events with effect on the financial reporting after the balance sheet date.
| MSEK | Jul–Sep 2021 | % | Jul–Sep 2020 | % | Jan–Sep 2021 | % | Jan–Sep 2020 | % | Jan–Dec 2020 | % |
|---|---|---|---|---|---|---|---|---|---|---|
| Guarding services | 20 561 | 75 | 20 128 | 76 | 59 885 | 75 | 61 941 | 76 | 81 838 | 76 |
| Security solutions and electronic security |
6 030 | 22 | 5 763 | 22 | 17 635 | 22 | 17 595 | 22 | 23 478 | 22 |
| Other | 747 | 3 | 610 | 2 | 2 131 | 3 | 1 941 | 2 | 2 638 | 2 |
| Total sales | 27 338 | 100 | 26 501 | 100 | 79 651 | 100 | 81 477 | 100 | 107 954 | 100 |
| Other operating income | 10 | 0 | 8 | 0 | 31 | 0 | 28 | 0 | 39 | 0 |
| Total revenue | 27 348 | 100 | 26 509 | 100 | 79 682 | 100 | 81 505 | 100 | 107 993 | 100 |
This comprises on-site and mobile guarding, which is services with the same revenue recognition pattern. Revenue is recognized over time, as the services are rendered by Securitas and simultaneously consumed by the customers. Such services cannot be reperformed.
This comprises two broad categories regarding security solutions and electronic security.
Security 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 customer site. The revenue recognition pattern is over time, as the services are rendered by Securitas and simultaneously consumed by the customers. A security solution normally constitutes one performance obligation.
Electronic security consists of the sale of alarm installations comprising design and installation (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 security 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 customers. 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 is also to a limited extent product sales (alarms and components) without any design or installation. The revenue recognition is at a point in time (upon delivery).
Other comprises mainly corporate risk management services that are either recognized over time or at a point in time as well as other ancillary business.
Other operating income consists in its entirety of trade mark fees for the use of the Securitas brand name.
The disaggregation of revenue by segment is shown in the tables below. Total sales agree to total sales in the segment overviews.
| Security Services North America |
Security Services Europe |
Security Services Ibero-America |
Other | Eliminations | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | Jul–Sep 2021 |
Jul–Sep 2020 |
Jul–Sep 2021 |
Jul–Sep 2020 |
Jul–Sep 2021 |
Jul–Sep 2020 |
Jul–Sep 2021 |
Jul–Sep 2020 |
Jul–Sep 2021 |
Jul–Sep 2020 |
Jul–Sep 2021 |
Jul–Sep 2020 |
| Guarding services | 8 886 | 8 918 | 9 055 | 8 646 | 2 174 | 2 145 | 451 | 432 | –5 | –13 | 20 561 | 20 128 |
| Security solutions and electronic security |
2 057 | 2 078 | 2 843 | 2 638 | 950 | 900 | 180 | 147 | – | – | 6 030 | 5 763 |
| Other | 747 | 610 | – | – | – | – | – | – | – | – | 747 | 610 |
| Total sales | 11 690 | 11 606 | 11 898 | 11 284 | 3 124 | 3 045 | 631 | 579 | –5 | –13 | 27 338 | 26 501 |
| Other operating income |
– | – | – | – | – | – | 10 | 8 | – | – | 10 | 8 |
| Total revenue | 11 690 | 11 606 | 11 898 | 11 284 | 3 124 | 3 045 | 641 | 587 | –5 | –13 | 27 348 | 26 509 |
| Security Services North America |
Security Services Europe |
Security Services Ibero-America |
Other | Eliminations | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | Jan–Sep 2021 |
Jan–Sep 2020 |
Jan–Sep 2021 |
Jan–Sep 2020 |
Jan–Sep 2021 |
Jan–Sep 2020 |
Jan–Sep 2021 |
Jan–Sep 2020 |
Jan–Sep 2021 |
Jan–Sep 2020 |
Jan–Sep 2021 |
Jan–Sep 2020 |
| Guarding services | 26 330 | 27 875 | 25 924 | 25 976 | 6 290 | 6 744 | 1 353 | 1 360 | –12 | –14 | 59 885 | 61 941 |
| Security solutions and electronic security |
6 086 | 6 417 | 8 242 | 7 891 | 2 756 | 2 805 | 551 | 482 | – | – | 17 635 | 17 595 |
| Other | 2 131 | 1 941 | – | – | – | – | – | – | – | – | 2 131 | 1 941 |
| Total sales | 34 547 | 36 233 | 34 166 | 33 867 | 9 046 | 9 549 | 1 904 | 1 842 | –12 | –14 | 79 651 | 81 477 |
| Other operating income |
– | – | – | – | – | – | 31 | 28 | – | – | 31 | 28 |
| Total revenue | 34 547 | 36 233 | 34 166 | 33 867 | 9 046 | 9 549 | 1 935 | 1 870 | –12 | –14 | 79 682 | 81 505 |
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 | Jul–Sep 2021 | Jul–Sep 2020 | % | Jan–Sep 2021 | Jan–Sep 2020 | % |
|---|---|---|---|---|---|---|
| Total sales | 27 338 | 26 501 | 3 | 79 651 | 81 477 | –2 |
| Currency change from 2020 | 580 | – | 5 885 | – | ||
| Real sales growth, adjusted for changes in exchange rates | 27 918 | 26 501 | 5 | 85 536 | 81 477 | 5 |
| Acquisitions/divestitures | –311 | –81 | –881 | –207 | ||
| Organic sales growth | 27 607 | 26 420 | 4 | 84 655 | 81 270 | 4 |
| Operating income before amortization | 1 605 | 1 327 | 21 | 4 332 | 3 488 | 24 |
| Currency change from 2020 | 35 | – | 325 | – | ||
| Real operating income before amortization, adjusted for changes in exchange rates |
1 640 | 1 327 | 24 | 4 657 | 3 488 | 34 |
| Operating income after amortization | 1 391 | 1 139 | 22 | 3 553 | 2 973 | 20 |
| Currency change from 2020 | 27 | – | 238 | – | ||
| Real operating income after amortization, adjusted for changes in exchange rates |
1 418 | 1 139 | 24 | 3 791 | 2 973 | 28 |
| Income before taxes | 1 295 | 1 038 | 25 | 3 272 | 2 591 | 26 |
| Currency change from 2020 | 37 | – | 225 | – | ||
| Real income before taxes, adjusted for changes in exchange rates | 1 332 | 1 038 | 28 | 3 497 | 2 591 | 35 |
| Net income for the period | 946 | 759 | 25 | 2 389 | 1 892 | 26 |
| Currency change from 2020 | 27 | – | 164 | – | ||
| Real net income for the period, adjusted for changes in exchange rates | 973 | 759 | 28 | 2 553 | 1 892 | 35 |
| Net income attributable to equity holders of the Parent Company | 944 | 758 | 25 | 2 386 | 1 892 | 26 |
| Currency change from 2020 | 27 | – | 164 | – | ||
| Real net income attributable to equity holders of the Parent Company, adjusted for changes in exchange rates |
971 | 758 | 28 | 2 550 | 1 892 | 35 |
| Average number of shares outstanding | 364 583 897 | 364 933 897 | 364 790 307 | 364 933 897 | ||
| Real earnings per share, adjusted for changes in exchange rates | 2.66 | 2.08 | 28 | 6.99 | 5.18 | 35 |
| Net income attributable to equity holders of the Parent Company | 944 | 758 | 25 | 2 386 | 1 892 | 26 |
| Items affecting comparability net of taxes | 84 | 86 | 375 | 164 | ||
| Net income attributable to equity holders of the Parent Company adjusted for items affecting comparability |
1 028 | 844 | 22 | 2 761 | 2 056 | 34 |
| Currency change from 2020 | 31 | – | 178 | – | ||
| Real net income attributable to equity holders of the Parent Company, adjusted for items affecting comparability and changes in exchange |
||||||
| rates | 1 059 | 844 | 25 | 2 939 | 2 056 | 43 |
| Number of shares | 364 583 897 | 364 933 897 | 364 790 307 | 364 933 897 | ||
| Real earnings per share, adjusted for items affecting comparability and changes in exchange rates |
2.90 | 2.31 | 26 | 8.06 | 5.63 | 43 |
The calculations below relate to the period January–September 2021.
Operating income before amortization (rolling 12 months) plus interest income (rolling 12 months) in relation to interest expenses (rolling 12 months). Calculation: (5 736 + 49) / 448 = 12.9
Cash flow from operating activities as a percentage of operating income before amortization.
Calculation: 3 416 / 4 332 = 79%
Free cash flow as a percentage of adjusted income (operating income before amortization adjusted for financial income and expenses, excluding revaluation of financial instruments, and current taxes). Calculation: 2 243 / (4 332 – 281 – 0 – 985) = 73%
Free cash flow (rolling 12 months) in relation to closing balance net debt. Calculation: 3 663 / 15 612 = 0.23
Net debt in relation to operating income after amortization (rolling 12 months) plus amortization of acquisition-related intangible assets (rolling 12 months) and depreciation (rolling 12 months).
Calculation: 15 612 / (4 409 + 270 + 2 589) = 2.1
Operating capital employed as a percentage of total sales adjusted for the full-year sales of acquired and divested entities. Calculation: 10 069 / 106 244 = 9%
Operating income before amortization (rolling 12 months) plus items affecting comparability (rolling 12 months) as a percentage of the average balance of operating capital employed. Calculation: (5 736 – 937) / ((10 069 + 8 893) / 2) = 51%
Operating income before amortization (rolling 12 months) plus items affecting comparability (rolling 12 months) as a percentage of closing balance of capital employed. Calculation: (5 736 – 937) / 34 961 = 14%
Net debt in relation to shareholders' equity. Calculation: 15 612 / 19 349 = 0.81
| MSEK | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|
| Restructuring and integration costs | –21 | –6 | –55 | –77 | –92 |
| Transaction costs | –9 | –3 | –15 | –10 | –40 |
| Revaluation of deferred considerations | –1 | –1 | –3 | –3 | –5 |
| Total acquisition-related costs | –31 | –10 | –73 | –90 | –137 |
| Cash flow impact from acquisitions and divestitures | |||||
| Purchase price payments | –841 | –57 | –1 047 | –495 | –1 780 |
| Assumed net debt | 34 | 1 | –2 | 50 | 98 |
| Acquisition-related costs paid | –31 | –26 | –84 | –65 | –119 |
| Total cash flow impact from acquisitions and divestitures | –838 | –82 | –1 133 | –510 | –1 801 |
For further information regarding the Group's acquisitions, refer to the section Acquisitions and divestitures.
| MSEK | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|
| Recognized in the statement of income | |||||
| Transformation programs, Group1) | –199 | –53 | –450 | –159 | –351 |
| Cost-savings program, Group2) | –35 | –59 | –179 | –59 | –289 |
| Repayment AFA, Security Services Europe3) | 114 | – | 114 | – | – |
| Total recognized in the statement of income before tax | –120 | –112 | –515 | –218 | –640 |
| Taxes | 36 | 26 | 140 | 54 | 133 |
| Total recognized in the statement of income after tax | –84 | –86 | –375 | –164 | –507 |
| Cash flow impact | |||||
| Transformation programs, Group1) | –91 | –45 | –307 | –161 | –251 |
| Cost-savings program, Group2) | –60 | –27 | –238 | –27 | –111 |
| Cost-savings program, Security Services Europe | –6 | –6 | –23 | –29 | –43 |
| Repayment AFA, Security Services Europe3) | – | – | – | – | – |
| Total cash flow impact | –157 | –78 | –568 | –217 | –405 |
1) Related to the previously announced business transformation program in Security Services North America, Security Services Europe and Security Services Ibero-America, as well as the previously announced global IS/IT transformation program.
2) Includes costs related to exit of business operations. Cash flow related to exit of business operations is accounted for as cash flow from investing activities.
3) Related to a lump-sum payment in the fourth quarter from the AFA insurance company for the collectively bargained AGS group sickness insurance policy in Sweden. The repayment was received on October 19, 2021.
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. Currently, Securitas' operations in Argentina are accounted for according to IAS 29.
The impact on the consolidated statement of 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.
| Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 | |
|---|---|---|---|
| Exchange rate SEK/ARS | 0.09 | 0.12 | 0.10 |
| Index | 31.72 | 20.97 | 23.35 |
| MSEK | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|
| Net monetary gain | 3 | 2 | 14 | 8 | 14 |
| Total financial income and expenses | 3 | 2 | 14 | 8 | 14 |
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 | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|
| Recognized in the statement of income | |||||
| Revaluation of financial instruments | 0 | 0 | 0 | 1 | 1 |
| Deferred tax | – | – | – | – | – |
| Impact on net income | 0 | 0 | 0 | 1 | 1 |
| Recognized in the statement of comprehensive income | |||||
| Cash flow hedges | 22 | –10 | –21 | –62 | –28 |
| Cost of hedging | –4 | –4 | 15 | 49 | 44 |
| Deferred tax | –4 | 2 | 2 | 2 | –4 |
| Total recognized in the statement of comprehensive income | 14 | –12 | –4 | –11 | 12 |
| Total revaluation before tax | 18 | –14 | –6 | –12 | 17 |
| Total deferred tax | –4 | 2 | 2 | 2 | –4 |
| Total revaluation after tax | 14 | –12 | –4 | –10 | 13 |
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 2020. Further information regarding the accounting principles for financial instruments is disclosed in note 2 in the Annual Report 2020.
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 |
|---|---|---|---|---|
| September 30, 2021 | ||||
| Financial assets at fair value through profit or loss | – | 6 | – | 6 |
| Financial liabilities at fair value through profit or loss | – | –6 | –164 | –170 |
| Derivatives designated for hedging with positive fair value | – | 215 | – | 215 |
| Derivatives designated for hedging with negative fair value | – | –193 | – | –193 |
| December 31, 2020 | ||||
| Financial assets at fair value through profit or loss | – | 20 | – | 20 |
| Financial liabilities at fair value through profit or loss | – | –11 | –295 | –306 |
| Derivatives designated for hedging with positive fair value | – | 362 | – | 362 |
| Derivatives designated for hedging with negative fair value | – | –159 | – | –159 |
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 2020.
| Sep 30, 2021 | Dec 31, 2020 | |||
|---|---|---|---|---|
| MSEK | Carrying value | Fair value | Carrying value | Fair value |
| Long-term loan liabilities | 10 199 | 10 336 | 10 118 | 10 336 |
| Short-term loan liabilities | 3 567 | 3 591 | 3 528 | 3 531 |
| Total financial instruments by category | 13 766 | 13 927 | 13 646 | 13 867 |
| Facility amount | Available amount | |||
|---|---|---|---|---|
| Type | Currency | (million) | (million) | Maturity |
| EMTN FRN private placement | USD | 40 | 0 | 2021 |
| EMTN Eurobond, 1.25 % fixed | EUR | 350 | 0 | 2022 |
| EMTN Eurobond, 1.125 % fixed | EUR | 350 | 0 | 2024 |
| EMTN FRN private placement | USD | 50 | 0 | 2024 |
| EMTN FRN private placement | USD | 105 | 0 | 2024 |
| EMTN Eurobond, 1.25 % fixed | EUR | 300 | 0 | 2025 |
| Revolving Credit Facility | EUR | 938 | 938 | 2026 |
| EMTN Eurobond, 0.25 % fixed | EUR | 350 | 0 | 2028 |
| Commercial Paper (uncommitted) | SEK | 5 000 | 3 850 | n/a |
| MSEK | Jul–Sep 2021 | Jul–Sep 2020 | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|---|---|
| Deferred tax on remeasurements of defined benefit pension plans | –1 | 5 | –22 | –3 | 19 |
| Deferred tax on cash flow hedges | –5 | 2 | 5 | 13 | 6 |
| Deferred tax on cost of hedging | 1 | 0 | –3 | –11 | –10 |
| Deferred tax on net investment hedges | 26 | –33 | 61 | 8 | –144 |
| Deferred tax on net investment hedges included in translation differences | –32 | 57 | –77 | 91 | 244 |
| Total deferred tax on other comprehensive income | –11 | 31 | –36 | 98 | 115 |
| Total pledged assets | 169 | 141 | 144 |
|---|---|---|---|
| Pension balances, defined contribution plans 1) | 169 | 141 | 144 |
| MSEK | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
1) Refers to assets relating to insured pension plans excluding social benefits.
| MSEK | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Guarantees | – | – | – |
| Guarantees related to discontinued operations | 15 | 15 | 15 |
| Total contingent liabilities | 15 | 15 | 15 |
For critical estimates and judgments, provisions and contingent liabilities, refer to note 4 and note 39 in the Annual Report 2020 as well as to the section Other significant events in this report.
| MSEK | Jan–Sep 2021 | Jan–Sep 2020 | Jan–Dec 2020 |
|---|---|---|---|
| License fees and other income | 969 | 805 | 1 233 |
| Gross income | 969 | 805 | 1 233 |
| Administrative expenses | –569 | –490 | –949 |
| Operating income | 400 | 315 | 284 |
| Financial income and expenses | 1 704 | –331 | 1 067 |
| Income after financial items | 2 104 | –16 | 1 351 |
| Appropriations | –252 | –26 | –71 |
| Income before taxes | 1 852 | –42 | 1 280 |
| Taxes | 9 | –8 | 150 |
| Net income for the period | 1 861 | –50 | 1 430 |
| MSEK | Sep 30, 2021 | Sep 30, 2020 | Dec 31, 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiaries | 44 350 | 44 724 | 44 233 |
| Shares in associated companies | 112 | 112 | 112 |
| Other non-interest-bearing non-current assets | 622 | 791 | 344 |
| Interest-bearing financial non-current assets | 919 | 1 237 | 1 133 |
| Total non-current assets | 46 003 | 46 864 | 45 822 |
| Current assets | |||
| Non-interest-bearing current assets | 799 | 1 031 | 571 |
| Other interest-bearing current assets | 3 109 | 2 778 | 3 330 |
| Liquid funds | 1 123 | 1 457 | 151 |
| Total current assets | 5 031 | 5 266 | 4 052 |
| TOTAL ASSETS | 51 034 | 52 130 | 49 874 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted equity | 7 730 | 7 737 | 7 730 |
| Non-restricted equity | 21 569 | 21 510 | 21 269 |
| Total shareholders' equity | 29 299 | 29 247 | 28 999 |
| Untaxed reserves | 757 | 703 | 723 |
| Long-term liabilities | |||
| Non-interest-bearing long-term liabilities/provisions | 198 | 330 | 169 |
| Interest-bearing long-term liabilities | 11 818 | 12 704 | 11 679 |
| Total long-term liabilities | 12 016 | 13 034 | 11 848 |
| Current liabilities | |||
| Non-interest-bearing current liabilities | 1 341 | 1 210 | 960 |
| Interest-bearing current liabilities | 7 621 | 7 936 | 7 344 |
| Total current liabilities | 8 962 | 9 146 | 8 304 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 51 034 | 52 130 | 49 874 |
December 7, 2021, 2.00 p.m. (CET) Virtual Investor Day 2021
February 8, 2022, app. 8.00 a.m. (CET) Full Year Report January–December 2021
March 25, 2022 Annual and sustainability report for 2021 will be published
May 4, 2022, app. 1.00 p.m. (CET) Interim Report January–March 2022
May 5, 2022 Annual General Meeting 2022 in Stockholm
July 28, 2022, app. 1.00 p.m. (CET) Interim Report January–June 2022
November 8, 2022, app. 1.00 p.m. (CET) Interim Report January–September 2022
For further information regarding Securitas IR activities, refer to www.securitas.com/investors/ financial-calendar
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
| October 29, 2021, at 2:30 p.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. |
| To participate in the telephone conference, please dial in five minutes prior to |
| the start of the conference call: |
| US: + 1 631 913 1422 |
| Sweden: + 46 8 566 426 51 |
| UK: + 44 333 3000 804 |
| Please use the following pin code for the telephone conference: 621 490 78# |
Analysts and media are invited to participate in a telephone conference on
To follow the audio cast of the telephone conference via the web, please follow
the link www.securitas.com/investors/webcasts.
A recorded version of the audio cast will be available at www.securitas.com/investors/webcasts after the telephone conference.
For further information, please contact: Micaela Sjökvist, Head of Investor Relations + 46 76 116 7443
Securitas has a leading global and local market presence with operations in 47 countries. Our operations are organized in three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. We also have operations in Africa, the Middle East, Asia and Australia, which form the AMEA division. Securitas serves a wide range of clients of all sizes in a variety of industries and segments. Security solutions based on client-specific needs are built through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety, and corporate risk management. We adapt our security solutions based on the risks and needs of each client through increased client engagement and continuously enhanced knowledge. Securitas is listed in the Large Cap segment at Nasdaq Stockholm.
At Securitas, we are leading the transformation of the security industry by putting our clients at the heart of our business. We solve our clients' security needs by offering qualified and engaged people, in-depth expertise and innovation within each of our protective services, the ability to combine services into solutions and by using data to add further intelligence. To execute on our strategy to become the intelligent protective services partner, we are focusing on four areas: empowering our people, client engagement, protective services leadership and innovation, and efficiency.
Securitas has three financial targets:
Securitas has also set a strategic transformation ambition – to double our security solutions and electronic security sales by 2023, compared with 2018.
This is information that Securitas AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 1:00 p.m. (CET) on Friday, October 29, 2021.
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