Securitas

Quarterly Report • Aug 5, 2015

Securitas AB

Interim Report January–June 2015

April–June 2015

• • Total sales MSEK 19 875 (17 120)
• • Organic sales growth 4 percent (3)
• • Operating income before amortization MSEK 926 (788)
• • Operating margin 4.7 percent (4.6)
• • Earnings per share SEK 1.51 (1.23)

JANUARY–June 2015

• • Total sales MSEK 39 361 (33 231)
• • Organic sales growth 5 percent (2)
• • Operating income before amortization MSEK 1 835 (1 526)
• • Operating margin 4.7 percent (4.6)
• • Earnings per share SEK 2.96 (2.36)
• • Free cash flow/net debt 0.19 (0.20)

COMMENTS FROM THE PRESIDENT AND CEO

Organic sales growth continued to be strong, supported by favorable market conditions in the US, positive development in some important markets in Europe, and an improving macro economy in Spain.

Earnings per share improved

The operating margin improved compared to last year and earnings per share grew 10 percent, adjusted for changes in exchange rates.

Technology is reshaping the security industry

Increasing the sales of security solutions and technology will continue to be the most important strategic focus of Securitas in years to come. In 2014, security solutions and technology sales grew with 28 percent compared to 2013. We estimate that we can continue to grow the sales of security solutions and technology in at least the same range in 2015. The trend in the second quarter supports the target and all business segments are driving the increase at similar pace.

Alf Göransson

President and Chief Executive Officer

Contents

January–June summary 2
Group development 3
Development in the Group's business segments 5
Cash flow 8
Capital employed and financing 9
Acquisitions 10
Other significant events 11
Change in Group Management 11
Risks and uncertainties 12
Parent Company operations 13
Accounting principles 14
Signatures of the Board of Directors 15
Report of Review 16
Consolidated financial statements 17
Segment overview 21
Notes 23
Parent Company 25
Definitions 25 Securitas AB
Financial information 26 Interim Report, January–June 2015

January–June summary

FINANCIAL SUMMARY

		Quarter		Change, %		H1			Change, % Full year	Change, %
MSEK	Q2 2015	Q2 2014 Total		Real	2015	2014 Total		Real	2014	Total
Sales	19 875	17 120	16	5	39 361	33 231	18	5	70 217	7
Organic sales growth, %	4	3			5	2			3
Operating income before amortization	926	788	18	6	1 835	1 526	20	6	3 505	5
Operating margin, %	4.7	4.6			4.7	4.6			5.0
Amortization of acquisition related intangible assets	–66	–60			–134	–121			–251
Acquisition related costs	–7	–7			–17	–11			–17
Operating income after amortization	853	721	18	6	1 684	1 394	21	6	3 237	7
Financial income and expenses	–76	–82			–151	–163			–328
Income before taxes	777	639	22	8	1 533	1 231	25	9	2 909	10
Net income for the period	550	449	23	10	1 086	864	26	10	2 072	12
Earnings per share, SEK	1.51	1.23	23	10	2.96	2.36	25	10	5.67	12
Cash flow from operating activities, %	60	66			54	38			82
Free cash flow	259	198			326	–33			1 855
Free cash flow to net debt ratio	-	-			0.19	0.20			0.18

ORGANIC SALES GROWTH AND OPERATING MARGIN DEVELOPMENT PER BUSINESS SEGMENT

	Organic sales growth						Operating margin
	Q2		H1		Q2		H1
%	2015	2014	2015	2014	2015	2014	2015	2014
Security Services North America	3	3	4	2	5.4	5.0	5.3	5.0
Security Services Europe	3	1	3	1	5.1	5.4	5.1	5.3
Security Services Ibero-America	13	7	12	7	4.2	4.2	4.4	4.3
Group	4	3	5	2	4.7	4.6	4.7	4.6

Group development

Group quarterly sales development Group quarterly sales development

Organic sales growth, %

Group quarterly operating income Group quarterly operating income development

April–June 2015

Sales development

Sales amounted to MSEK 19 875 (17 120) and organic sales growth was 4 percent (3). Organic sales growth in Security Services North America was 3 percent with main contribution stemming from the five guarding regions showing a strong development. In Security Services Europe the improvement was mainly driven by Germany, Turkey and Sweden. In Security Services Ibero-America most countries improved compared to last year. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 5 percent (3).

Operating income before amortization

Operating income before amortization was MSEK 926 (788) which, adjusted for changes in exchange rates, represented a real change of 6 percent (–2).

The Group's operating margin was 4.7 percent (4.6), an improvement driven by Security Services North America.

Operating income after amortization

Amortization of acquisition related intangible assets amounted to MSEK –66 (–60).

Acquisition related costs were MSEK –7 (–7). For further information refer to note 4.

Financial income and expenses

Financial income and expenses amounted to MSEK –76 (–82).

Income before taxes

Income before taxes was MSEK 777 (639).

Taxes, net income and earnings per share

The Group's tax rate was 29.2 percent (29.8). The increase in the Group's tax rate compared to the full year tax rate for 2014 of 28.8 percent is due to the strengthening of the USD exchange rate and its impact on the income of the Group.

Net income was MSEK 550 (449). Earnings per share amounted to SEK 1.51 (1.23).

Group development

JANUARY–JUNE 2015

Sales development

Sales amounted to MSEK 39 361 (33 231) and organic sales growth was 5 percent (2), an improvement reflected in all business segments. The favorable market conditions in primarily North America, but also to some extent in Europe, in combination with our strategy of adding value to the customers through security solutions and technology, is driving the strong organic sales growth. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 5 percent (3).

Operating income before amortization

Operating income before amortization was MSEK 1 835 (1 526) which, adjusted for changes in exchange rates, represented a real change of 6 percent (–1).

The Group's operating margin was 4.7 percent (4.6), with Security Services North America as the main contributor to the improvement. The total price adjustments in the Group were on par with wage cost increases.

Operating income after amortization

Amortization of acquisition related intangible assets amounted to MSEK –134 (–121).

Acquisition related costs were MSEK –17 (–11). For further information refer to note 4.

Financial income and expenses

Financial income and expenses amounted to MSEK –151 (–163).

Income before taxes

Income before taxes was MSEK 1 533 (1 231).

Taxes, net income and earnings per share

The Group's tax rate was 29.2 percent (29.8). The increase in the Group's tax rate compared to the full year tax rate for 2014 of 28.8 percent is due to the strengthening of the USD exchange rate and its impact on the income of the Group.

Net income was MSEK 1 086 (864). Earnings per share amounted to SEK 2.96 (2.36).

Quarterly sales Quarterly sales

Security Services North America

Security Services North America provides security services in the USA, Canada and Mexico, and comprises 13 business units: the national and global accounts organization, five geographical regions and five specialized business units in the USA – critical infrastructure, healthcare, Pinkerton Corporate Risk Management, mobile and technology – plus Canada and Mexico. In total, there are approximately 640 branch managers and 107 000 employees.

		Quarter		Change, %	H1		Change, %		Full year
MSEK	Q2 2015	Q2 2014	Total	Real	2015	2014	Total	Real	2014
Total sales	7 634	5 977	28	3	15 119	11 536	31	4	24 989
Organic sales growth, %	3	3			4	2			3
Share of Group sales, %	38	35			38	35			36
Operating income
before amortization	415	300	38	11	799	577	38	9	1 333
Operating margin, %	5.4	5.0			5.3	5.0			5.3
Share of Group operating income, %	45	38			44	38			38

Quarterly operating income development Quarterly operating income development

April–June 2015

The organic sales growth was 3 percent (3). The five guarding regions showed an overall strong development and were the key contributors to organic sales growth, while last year organic sales growth was mainly driven by the business unit critical infrastructure. Pinkerton Corporate Risk Management had strong organic sales growth with new contracts and extra sales in the quarter.

The operating margin was 5.4 percent (5.0). The sales growth continued to give positive leverage. Our strategy of increasing the sales of security solutions and technology also contributed to the operating margin improvement, as did lower payroll taxes.

The Swedish krona exchange rate weakened significantly versus the U.S. dollar which had a positive effect on the operating income in Swedish kronor. The real change was 11 percent in the quarter.

January–June 2015

The organic sales growth was 4 percent (2), primarily driven by the overall strong sales development in the five guarding regions, supported by our strategy of increasing sales of security solutions and technology. We estimate that the Affordable Care Act (ACA) implementation will contribute to organic sales growth in Security Services North America with approximately 1 percent in 2015.

The operating margin was 5.3 percent (5.0), mainly supported by positive leverage from higher organic sales growth but also by lower payroll taxes.

The Swedish krona exchange rate weakened significantly versus the U.S. dollar which had a positive effect on the operating income in Swedish kronor. The real change was 9 percent in the period.

The client retention rate was 89 percent (86). The employee turnover rate in the business segment was 62 percent (51).

Quarterly sales Quarterly sales development

Security Services Europe

Security Services Europe provides security services for large and medium-sized customers in 26 countries, and airport security in 15 countries. The service offering also includes mobile security services for small and medium-sized businesses and residential sites, and electronic alarm surveillance services. In total, the organization has 800 branch managers and 117 000 employees.

		Quarter		Change, %	H1		Change, %		Full year
MSEK	Q2 2015	Q2 20141)	Total	Real	2015	20141)	Total	Real	20141)
Total sales	9 265	8 676	7	4	18 271	16 830	9	4	34 908
Organic sales growth, %	3	1			3	1			2
Share of Group sales, %	47	51			46	51			50
Operating income
before amortization	469	467	0	0	934	890	5	2	2 050
Operating margin, %	5.1	5.4			5.1	5.3			5.9
Share of Group operating
income, %	51	59			51	58			58

1) Comparatives have been restated. Refer to note 8 for further information.

April–June 2015

Organic sales growth was 3 percent (1), with main contribution from Germany, Sweden and Turkey. Many other countries, such as Austria, Belgium, Czech Republic and Finland also showed good development compared to last year.

The operating margin was 5.1 percent (5.4). The main reasons for the lower margin in the quarter were higher social costs, training costs and a one off refund of pension contributions last year in Sweden. In addition, a difficult market environment in the Netherlands affected the operating margin negatively.

The Swedish krona exchange rate weakened versus the euro which had a positive effect on the operating income in Swedish kronor. The real change was 0 percent in the quarter.

January–June 2015

Organic sales growth was 3 percent (1), driven by countries such as Germany, Sweden and Turkey. Other countries with positive development were Belgium, Czech Republic and Finland. The organic sales growth development is supported by our strategy of increasing the sales of security solutions and technology, resulting in a growth pace currently ahead of the European market growth.

The operating margin was 5.1 percent (5.3). The decline is due to the same factors as in the quarter. In Sweden, the social costs for young employees have been raised during the summer of 2015. The full year negative effect on operating result in 2015 is estimated to be MSEK –20, and the estimated full year negative impact for 2016 to be MSEK –50.

The Swedish krona exchange rate weakened versus the euro which had a positive effect on the operating income in Swedish kronor. The real change was 2 percent in the period.

The client retention rate was 92 percent (92). The employee turnover was 26 percent (26).

Quarterly operating Quarterly operating income development

Quarterly sales development

SECURITY SERVICES IBERO-AMERICA

Security Services Ibero-America provides security services for large and medium-sized customers in seven Latin American countries, as well as in Portugal and Spain in Europe. Security Services Ibero-America has a combined total of approximately 190 branch managers and 58 000 employees.

		Quarter		Change, %	H1		Change, %		Full year
MSEK	Q2 2015	Q2 2014	Total	Real	2015	2014	Total	Real	2014
Total sales	2 665	2 212	20	13	5 334	4 369	22	12	9 238
Organic sales growth, %	13	7			12	7			8
Share of Group sales, %	13	13			14	13			13
Operating income
before amortization	111	92	21	13	236	189	25	12	396
Operating margin, %	4.2	4.2			4.4	4.3			4.3
Share of Group operating
income, %	12	12			13	12			11

Quarterly operating income development

April–June 2015

Organic sales growth was 13 percent (7) in the business segment, where Latin America showed a strong organic sales growth of 26 percent (20). Chile and Colombia had particularly strong organic sales growth compared to last year. Argentina continued to strongly contribute to the business segment's organic sales growth. The macro economic recovery in Spain drives an improving organic sales growth in Spain, even though it will be somewhat negatively impacted going forward by the termination of a major non-profitable Aviation contract in Spain which has ended as of July 1.

A collective bargaining agreement has been reached in Spain during the month of July, fixing the wage increases at approximately 1.5 percent for 2016, which is a positive development allowing price negotiations to take place well in advance.

The operating margin was 4.2 percent (4.2). The operating margin was positively impacted mainly by the improvement in Spain but was negatively impacted by a decline in Peru and Portugal.

The Swedish krona exchange rate weakened slightly against the Euro and more significantly against the Argentinian peso which had a positive effect on the operating income in Swedish kronor. The real change in the segment was 13 percent in the quarter.

January–June 2015

Organic sales growth was 12 percent (7), driven by the positive development in all countries except Ecuador and Portugal. Latin America showed a strong organic sales growth of 25 percent (22). However, the macro economy in Latin America is slowing down considerably. Our strategy of specialization, security solutions and technology continued to support the strong organic sales growth.

The operating margin was 4.4 percent (4.3), mainly driven by the improvement in Spain but hampered by Peru and Portugal.

The Swedish krona exchange rate weakened slightly against the Euro and more significantly against the Argentinian peso which had a positive effect on the operating income in Swedish kronor. The real change in the segment was 12 percent in the period.

The client retention rate was 91 percent (91). The employee turnover was 28 percent (27).

Cash flow

Quarterly free cash flow Quarterly free cash flow

April–June 2015

Cash flow from operating activities amounted to MSEK 557 (518), equivalent to 60 percent (66) of operating income before amortization.

Cash flow from operating activities has been impacted from net investments in non-current tangible and intangible assets, amounting to MSEK –139 (–63). The net investments primarily relate to capital expenditures in equipment for solution contracts reflecting our strategy to increase the sales in security solutions and technology. Such investments affect the free cash flow and are depreciated over the contract duration.

The impact from changes in accounts receivable was MSEK –261 (–188). Changes in other operating capital employed were MSEK 31 (–19).

Free cash flow was MSEK 259 (198), equivalent to 39 percent (36) of adjusted income.

Cash flow from investing activities, acquisitions, was MSEK –30 (–202), of which purchase price payments accounted for MSEK –37 (–194), assumed net debt accounted for MSEK 13 (0) and acquisition related costs paid accounted for MSEK –6 (–8).

Cash flow from financing activities was MSEK –327 (–322) due to dividend paid of MSEK –1 095 (–1 095) and a net increase in borrowings of MSEK 768 (773).

Cash flow for the period was MSEK –101 (–353).

January–June 2015

Cash flow from operating activities amounted to MSEK 992 (574), equivalent to 54 percent (38) of operating income before amortization.

Cash flow from operating activities has been impacted from net investments in non-current tangible and intangible assets, amounting to MSEK –194 (–88). The net investments primarily relate to capital expenditures in equipment for solution contracts reflecting our strategy to increase the sales in security solutions and technology. Such investments affect the free cash flow and are depreciated over the contract duration.

The impact from changes in accounts receivable was MSEK –473 (–304), with a negative impact from a slight increase of Days of Sales Outstanding (DSO) compared to December. Changes in other operating capital employed were MSEK –176 (–560), positively impacted by payroll timing in the US operations in the first quarter.

Free cash flow was MSEK 326 (–33), equivalent to 25 percent (–3) of adjusted income.

Cash flow from investing activities, acquisitions, was MSEK –120 (–225), of which purchase price payments accounted for MSEK –119 (–214), assumed net debt accounted for MSEK 13 (0) and acquisition related costs paid accounted for MSEK –14 (–11).

Cash flow from financing activities was MSEK –1 235 (–1 550) due to dividend paid of MSEK –1 095 (–1 095) and a net decrease in borrowings of MSEK –140 (–455).

Cash flow for the period was MSEK –1 039 (–1 854). The closing balance for liquid funds after translation differences of MSEK 0 was MSEK 2 386 (3 425 as of December 31, 2014).

Capital employed and financing

Capital employed and financing

MSEK	Jun 30, 2015
Operating capital employed	4 920
Goodwill	16 512
Acquisition related intangible assets	1 146
Shares in associated companies	358
Capital employed	22 936
Net debt	11 558
Shareholders' equity	11 378
Financing	22 936

Capital employed as of June 30, 2015

The Group's operating capital employed was MSEK 4 920 (3 924 as of December 31, 2014), corresponding to 6 percent of sales (6 as of December 31, 2014), 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 53.

The Group's total capital employed was MSEK 22 936 (21 721 as of December 31, 2014). The translation of foreign capital employed to Swedish kronor increased the Group's capital employed by MSEK 350. The return on capital employed was 17 percent (16 as of December 31, 2014).

Financing as of June 30, 2015

The Group's net debt amounted to MSEK 11 558 (10 422 as of December 31, 2014). The increase in net debt compared to December 2014 was mainly explained by dividend of MSEK 1 095 paid to the shareholders in May 2015 and the translation of net debt in foreign currency to Swedish kronor of MSEK 237. The net debt decreased by MSEK 326 due to a positive effect from free cash flow.

Net debt development

MSEK
Jan 1, 2015	–10 422
Free cash flow	326
Acquisitions	–120
IAC payments	–10
Dividend paid	–1 095
Change in net debt	–899
Translation and
revaluation	–237
Jun 30, 2015	–11 558

The free cash flow to net debt ratio amounted to 0.19 (0.20). The interest cover ratio amounted to 11.9 (9.2).

Securitas has a Revolving Credit Facility with its twelve key relationship banks. This credit facility comprises two respective tranches of MUSD 550 and MEUR 440, maturing in 2020, with the possibility to extend for a further two years. Further information regarding financial instruments and credit facilities is provided in note 6.

Standard and Poor's rating for Securitas is BBB. The outlook was changed from stable to positive during the second quarter. The Group's liquidity position is regarded as strong.

Shareholders' equity amounted to MSEK 11 378 (11 299 as of December 31, 2014). The translation of foreign assets and liabilities into Swedish kronor increased shareholders' equity by MSEK 113. Refer to the statement of comprehensive income on page 17 for further information.

Free cash flow/Net debt Free cash flow/net debt

The total number of outstanding shares amounted to 365 058 897 (365 058 897) as of June 30, 2015.

Company	Business segment 1)	Included from	Acquired share 2)	Annual sales 3)	Enter - prise	value 4) Goodwill	Acq. related intangible assets
Opening balance						16 228	1 244
Other acquisitions 5) 7)		-	-	66	106	17	32
Total acquisitions January–June 2015				66	106	176)	32
Amortization of acquisition related intangible assets						-	–134
Exchange rate differences						267	4
Closing balance						16 512	1 146

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 plus acquired 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: MH Bevakning (contract portfolio), Sweden, PSS and Vaktco (contract portfolio), Norway, HH Vagt, Denmark, Polar Security (contract portfolio), Finland, SEIV, France, Fire Fighting Technology, Belgium, Sensormatic, Turkey, Trailback, Argentina, Urulac, Uruguay and Pinglin, China. Related also to deferred considerations paid in Norway, Finland, Germany, France, Belgium, Croatia, Turkey, Argentina, Uruguay and South Africa.

6) Goodwill that is expected to be tax deductible amounts to MSEK 0.

7) 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 –61. Total deferred considerations, short-term and long-term, in the Group's balance sheet amount to MSEK 473.

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 20. Transaction costs and revaluation of deferred considerations can be found in note 4 on page 23.

Other significant events

For critical estimates and judgments, provisions and contingent liabilities refer to the Annual Report 2014. 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.

Spain – tax audit

As described on page 113 in the Annual Report 2014, the Spanish tax authority has rejected certain deductions. One matter regards a disallowance of interest deductions for the years 2003–2009 where different years currently are in different levels of the Spanish court system. Regarding the years 2006–2007 Securitas has now received a negative judgment from the first level of court TEAC. This judgment contradicts and disregards a judgment in favour of Securitas which was issued by the superior court Audiencia Nacional in 2014, concerning the same matter for the years 2003–2005, which has been appealed by the tax authority to the Supreme Court. Another matter regards a disallowance of an applied tax exemption for a demerger of the Spanish Securitas Systems company in 2006 for which Securitas has now received a negative judgment from TEAC. If finally upheld by the Spanish courts, the amounts disclosed in the Annual Report 2014 would still be relevant. Securitas will now appeal the two judgments to the next level of court, Audiencia Nacional. Securitas believes it has acted in accordance with applicable law and will defend its position in the courts. However, the tax resolutions cause some uncertainty and it may take a long time until a final judgment is made.

Change in Group Management

Magnus Ahlqvist has been appointed Divisional President of Security Services Europe and a member of Securitas Group Management. He will take up his position latest on September 1, 2015.

Risks and uncertainties

Risk management is necessary in order for Securitas to be able to fulfill its strategies and achieve its corporate objectives. Securitas' risks fall into three main categories; contract risk, operational assignment risk and financial risks. Securitas approach to enterprise risk management is described in more detail in the Annual Report for 2014.

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

For the forthcoming six-month period, the financial impact of certain previously recognized items affecting comparability, provisions and contingent liabilities, as described in the Annual Report for 2014 and if applicable above under the heading "Other significant events", 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 provides Group Management and support functions for the Group.

January–June 2015

The Parent Company's income amounted to MSEK 417 (431) and mainly relates to license fees and other income from subsidiaries.

Financial income and expenses amounted to MSEK 1 698 (778). The increase of financial income and expenses compared to last year is mainly explained by dividends from subsidiaries. Income before taxes amounted to MSEK 1 609 (980).

As of June 30, 2015

The Parent Company's non-current assets amounted to MSEK 38 462 (38 535 as of December 31, 2014) and mainly comprise shares in subsidiaries of MSEK 37 281 (37 258 as of December 31, 2014). Current assets amounted to MSEK 6 934 (6 199 as of December 31, 2014) of which liquid funds amounted to MSEK 1 654 (2 068 as of December 31, 2014).

Shareholders' equity amounted to MSEK 25 625 (25 027 as of December 31, 2014). A dividend of MSEK 1 095 (1 095) was paid to the shareholders in May 2015.

The Parent Company's liabilities amounted to MSEK 19 771 (19 707 as of December 31, 2014) and mainly consist of interest-bearing debt.

For further information, refer to the Parent Company's condensed financial statements on page 25.

Accounting principles

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 69 to 75 in the Annual Report for 2014. 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 39 on page 119 in the Annual Report for 2014.

Effect of amended and revised IFRS that are effective as of 2015

None of the published standards and interpretations that are mandatory for the Group's financial year 2015 is assessed to have any impact on the Group's financial statements. Consequently, there have been no changes in the Group's or the Parent Company's accounting principles compared to the accounting principles described in note 2 and note 39 in the Annual Report for 2014.

Signatures of the Board of Directors

The Board of Directors and the President and CEO certify that the interim report gives a true and fair overview of the Parent Company's and Group's operations, their financial position and results of operations, and describes significant risks and uncertainties facing the Parent Company and other companies in the Group.

Alf Göransson President and Chief Executive Officer

Report of Review

(Translation of Swedish Original)

Review report over Interim Financial Statements (Interim report) prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.

Introduction

We have reviewed this report for the period January 1, 2015 to June 30, 2015 for Securitas AB. The board of directors and the CEO and President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, August 5, 2015 PricewaterhouseCoopers AB

Authorised Public Accountant Authorised Public Accountant Auditor in charge

Patrik Adolfson Madeleine Endre

Consolidated financial statements

statement of income

MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Sales	19 803.5	17 001.5	39 227.1	32 996.7	69 863.8
Sales, acquired business	71.5	118.5	134.1	234.5	353.3
Total sales	19 875.0	17 120.0	39 361.2	33 231.2	70 217.1
Organic sales growth, %1)	4	3	5	2	3
Production expenses	–16 475.0	–14 214.8	–32 611.0	–27 557.7	–58 010.1
Gross income	3 400.0	2 905.2	6 750.2	5 673.5	12 207.0
Selling and administrative expenses	–2 482.3	–2 122.9	–4 930.7	–4 157.2	–8 726.6
Other operating income 2)	4.4	3.7	8.9	7.5	15.9
Share in income of associated companies 3)	4.1	1.9	6.7	2.3	8.4
Operating income before amortization	926.2	787.9	1 835.1	1 526.1	3 504.7
Operating margin, %	4.7	4.6	4.7	4.6	5.0
Amortization of acquisition related intangible assets	–66.2	–59.5	–134.2	–121.0	–250.8
Acquisition related costs 4)	–6.9	–7.4	–16.5	–11.5	–17.1
Operating income after amortization	853.1	721.0	1 684.4	1 393.6	3 236.8
Financial income and expenses 6)	–75.9	–81.7	–151.2	–162.6	–327.6
Income before taxes	777.2	639.3	1 533.2	1 231.0	2 909.2
Net margin, %	3.9	3.7	3.9	3.7	4.1
Current taxes	–194.3	–159.9	–383.3	–307.8	–710.7
Deferred taxes	–32.6	–30.6	–64.4	–59.0	–127.0
Net income for the period	550.3	448.8	1 085.5	864.2	2 071.5
Whereof attributable to:
Equity holders of the Parent Company	549.7	448.0	1 081.4	862.1	2 068.4
Non-controlling interests	0.6	0.8	4.1	2.1	3.1
Earnings per share before and after dilution (SEK)	1.51	1.23	2.96	2.36	5.67

statement of comprehensive income

MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Net income for the period	550.3	448.8	1 085.5	864.2	2 071.5
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	76.6	–40.3	68.5	–71.9	–279.7
Total items that will not be reclassified to the statement of income 7)	76.6	–40.3	68.5	–71.9	–279.7
Items that subsequently may be reclassified to the statement of income
Cash flow hedges net of tax	1.8	–0.2	–1.4	–0.8	0.0
Net investment hedges net of tax	60.3	–5.6	25.4	–38.0	138.9
Translation differences	–481.9	384.9	87.4	287.3	1 062.9
Total items that subsequently may be reclassified to the statement of
income 7)	–419.8	379.1	111.4	248.5	1 201.8
Other comprehensive income for the period 7)	–343.2	338.8	179.9	176.6	922.1
Total comprehensive income for the period	207.1	787.6	1 265.4	1 040.8	2 993.6
Whereof attributable to:
Equity holders of the Parent Company	207.5	786.1	1 261.4	1 038.1	2 988.9
Non-controlling interests	–0.4	1.5	4.0	2.7	4.7

Notes 1–7 refer to pages 23–24.

Consolidated financial statements

statement of cash flow

Operating cash flow MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Operating income before amortization	926.2	787.9	1 835.1	1 526.1	3 504.7
Investments in non-current tangible and intangible assets	–403.2	–298.4	–719.3	–556.8	–1 113.2
Reversal of depreciation	263.4	235.6	525.0	469.2	966.9
Change in accounts receivable	–260.7	–188.4	–473.3	–304.4	–114.5
Change in other operating capital employed	31.1	–19.1	–175.9	–560.0	–381.2
Cash flow from operating activities	556.8	517.6	991.6	574.1	2 862.7
Cash flow from operating activities, %	60	66	54	38	82
Financial income and expenses paid	–36.6	–35.5	–239.9	–219.2	–311.4
Current taxes paid	–261.6	–283.8	–426.1	–387.7	–696.6
Free cash flow	258.6	198.3	325.6	–32.8	1 854.7
Free cash flow, %	39	36	25	–3	75
Cash flow from investing activities, acquisitions	–29.6	–201.6	–119.9	–225.2	–385.0
Cash flow from items affecting comparability 5)	–3.5	–26.8	–9.6	–46.2	–72.8
Cash flow from financing activities	–326.6	–322.4	–1 234.9	–1 549.7	–2 107.8
Cash flow for the period	–101.1	–352.5	–1 038.8	–1 853.9	–710.9
Cash flow MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Cash flow from operations	653.0	462.4	1 021.5	467.0	2 873.9
Cash flow from investing activities	–427.5	–492.5	–825.4	–771.2	–1 477.0
Cash flow from financing activities	–326.6	–322.4	–1 234.9	–1 549.7	–2 107.8
Cash flow for the period	–101.1	–352.5	–1 038.8	–1 853.9	–710.9
Change in net debt MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Opening balance	–10 971.4	–9 932.1	–10 421.6	–9 609.8	–9 609.8
Cash flow for the period	–101.1	–352.5	–1 038.8	–1 853.9	–710.9
Change in loans	–768.6	–772.8	139.7	454.5	1 012.6
Change in net debt before revaluation and translation differences	–869.7	–1 125.3	–899.1	–1 399.4	301.7
Revaluation of financial instruments 6)	2.3	–0.2	–0.3	–0.7	–0.4
Translation differences	281.1	–262.1	–236.7	–309.8	–1 113.1
Change in net debt	–586.3	–1 387.6	–1 136.1	–1 709.9	–811.8
Closing balance	–11 557.7	–11 319.7	–11 557.7	–11 319.7	–10 421.6

Notes 5–6 refer to pages 23–24.

Consolidated financial statements

capital employed and financing

MSEK	Jun 30, 2015	Jun 30, 2014	Dec 31, 2014
Operating capital employed	4 919.6	4 258.6	3 924.0
Operating capital employed as % of sales	6	6	6
Return on operating capital employed, %	86	89	99
Goodwill	16 511.9	14 800.5	16 228.1
Acquisition related intangible assets	1 146.4	1 234.2	1 244.2
Shares in associated companies	357.4	287.2	324.5
Capital employed	22 935.3	20 580.5	21 720.8
Return on capital employed, %	17	16	16
Net debt	–11 557.7	–11 319.7	–10 421.6
Shareholders' equity	11 377.6	9 260.8	11 299.2
Net debt equity ratio, multiple	1.02	1.22	0.92

balance Sheet

MSEK	Jun 30, 2015	Jun 30, 2014	Dec 31, 2014
ASSETS
Non-current assets
Goodwill	16 511.9	14 800.5	16 228.1
Acquisition related intangible assets	1 146.4	1 234.2	1 244.2
Other intangible assets	408.9	356.0	398.3
Tangible non-current assets	2 736.2	2 426.2	2 557.1
Shares in associated companies	357.4	287.2	324.5
Non-interest-bearing financial non-current assets	2 052.9	2 030.6	2 127.8
Interest-bearing financial non-current assets	312.7	331.1	434.5
Total non-current assets	23 526.4	21 465.8	23 314.5
Current assets
Non-interest-bearing current assets	15 307.9	13 716.7	14 176.9
Other interest-bearing current assets	252.0	147.1	167.3
Liquid funds	2 386.3	2 233.6	3 425.1
Total current assets	17 946.2	16 097.4	17 769.3
TOTAL ASSETS	41 472.6	37 563.2	41 083.8
MSEK	Jun 30, 2015	Jun 30, 2014	Dec 31, 2014
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Attributable to equity holders of the Parent Company	11 355.5	9 242.0	11 280.3
Non-controlling interests	22.1	18.8	18.9
Total shareholders' equity	11 377.6	9 260.8	11 299.2
Equity ratio, %	27	25	28
Long-term liabilities
Non-interest-bearing long-term liabilities	421.2	524.0	550.7
Interest-bearing long-term liabilities	11 418.5	10 628.4	11 700.7
Non-interest-bearing provisions	2 934.0	2 593.1	2 981.8
Total long-term liabilities	14 773.7	13 745.5	15 233.2
Current liabilities
Non-interest-bearing current liabilities and provisions	12 231.1	11 153.8	11 803.6
Interest-bearing current liabilities	3 090.2	3 403.1	2 747.8
Total current liabilities	15 321.3	14 556.9	14 551.4
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	41 472.6	37 563.2	41 083.8

Changes in Shareholders' Equity

			Jun 30, 2015	Jun 30, 2014				Dec 31, 2014
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, 2015/2014	11 280.3	18.9	11 299.2	9 365.3	16.0	9 381.3	9 365.3	16.0	9 381.3
Total comprehensive income for the period	1 261.4	4.0	1 265.4	1 038.1	2.7	1 040.8	2 988.9	4.7	2 993.6
Transactions with non-controlling interests	-	–0.8	–0.8	–0.6	0.1	–0.5	–0.6	–1.8	–2.4
Share based incentive scheme	–91.0	-	–91.01)	–65.6	-	–65.6	21.9	-	21.9
Dividend paid to the shareholders of the Parent Company	–1 095.2	-	–1 095.2	–1 095.2	-	–1 095.2	–1 095.2	-	–1 095.2
Closing balance June 30/December 31, 2015/2014	11 355.5	22.1	11 377.6	9 242.0	18.8	9 260.8	11 280.3	18.9	11 299.2

1) Refers to a swap agreement in Securitas AB shares of MSEK –93.2, hedging the share portion of Securitas share based incentive scheme 2014, and adjustment to grant date value for non-vested shares of MSEK 2.2, related to Securitas share based incentive scheme 2013.

Data per share

Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
109.60	79.25	109.60	79.25	94.45
1.51	1.23	2.96	2.36	5.67
-	-	-	-	3.00
-	-	-	-	17
365 058 897	365 058 897	365 058 897	365 058 897	365 058 897
365 058 897	365 058 897	365 058 897	365 058 897	365 058 897
365 058 897	365 058 897	365 058 897	365 058 897	365 058 897

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.

Segment overview April–June 2015 and 2014

April–June 2015

	Security Services	Security Services	Security Services
MSEK	North America	­Europe	Ibero-America	Other	Eliminations	Group
Sales, external	7 624	9 264	2 665	322	-	19 875
Sales, intra-group	10	1	-	0	–11	-
Total sales	7 634	9 265	2 665	322	–11	19 875
Organic sales growth, %	3	3	13	-	-	4
Operating income before amortization	415	469	111	–69	-	926
of which share in income of associated companies	1	0	-	3	-	4
Operating margin, %	5.4	5.1	4.2	-	-	4.7
Amortization of acquisition related intangible assets	–7	–37	–17	–5	-	–66
Acquisition related costs	-	–3	–1	–3	-	–7
Operating income after amortization	408	429	93	–77	-	853
Financial income and expenses	-	-	-	-	-	–76
Income before taxes	-	-	-	-	-	777

April–June 2014

	Security Services	Security Services	Security Services
MSEK	North America	Europe1)	Ibero-America	Other1)	Eliminations	Group
Sales, external	5 976	8 676	2 212	256	-	17 120
Sales, intra-group	1	0	-	0	–1	-
Total sales	5 977	8 676	2 212	256	–1	17 120
Organic sales growth, %	3	1	7	-	-	3
Operating income before amortization	300	467	92	–71	-	788
of which share in income of associated companies	1	0	-	1	-	2
Operating margin, %	5.0	5.4	4.2	-	-	4.6
Amortization of acquisition related intangible assets	–7	–35	–16	–2	-	–60
Acquisition related costs	–4	–3	0	0	-	–7
Operating income after amortization	289	429	76	–73	-	721
Financial income and expenses	-	-	-	-	-	–82
Income before taxes	-	-	-	-	-	639

1) Comparatives have been restated. Refer to note 8 for further information.

January–June 2015

	Security Services	Security Services	Security Services
MSEK	North America	­Europe	Ibero-America	Other	Eliminations	Group
Sales, external	15 107	18 270	5 334	650	-	39 361
Sales, intra-group	12	1	-	0	–13	-
Total sales	15 119	18 271	5 334	650	–13	39 361
Organic sales growth, %	4	3	12	-	-	5
Operating income before amortization	799	934	236	–134	-	1 835
of which share in income of associated companies	0	1	-	6	-	7
Operating margin, %	5.3	5.1	4.4	-	-	4.7
Amortization of acquisition related intangible assets	–14	–76	–35	–9	-	–134
Acquisition related costs	-	–13	–1	–3	-	–17
Operating income after amortization	785	845	200	–146	-	1 684
Financial income and expenses	-	-	-	-	-	–151
Income before taxes	-	-	-	-	-	1 533

January–June 2014

	Security Services	Security Services	Security Services
MSEK	North America	Europe1)	Ibero-America	Other1)	Eliminations	Group
Sales, external	11 533	16 830	4 369	499	-	33 231
Sales, intra-group	3	0	-	0	–3	-
Total sales	11 536	16 830	4 369	499	–3	33 231
Organic sales growth, %	2	1	7	-	-	2
Operating income before amortization	577	890	189	–130	-	1 526
of which share in income of associated companies	0	0	-	2	-	2
Operating margin, %	5.0	5.3	4.3	-	-	4.6
Amortization of acquisition related intangible assets	–13	–70	–31	–7	-	–121
Acquisition related costs	–4	–5	–2	0	-	–11
Operating income after amortization	560	815	156	–137	-	1 394
Financial income and expenses	-	-	-	-	-	–163
Income before taxes	-	-	-	-	-	1 231

1) Comparatives have been restated. Refer to note 8 for further information.

Note 1 Organic sales growth

The calculation of organic sales growth (and the specification of currency changes on operating income and income before taxes) is specified below:

MSEK	Apr–Jun 2015	Apr–Jun 2014	Apr–Jun %	Jan–Jun 2015	Jan–Jun 2014	Jan–Jun %
Total sales	19 875	17 120	16	39 361	33 231	18
Acquisitions/divestitures	–71	-		–134	-
Currency change from 2014	–1 929	-		–4 457	-
Organic sales	17 875	17 120	4	34 770	33 231	5
Operating income	926	788	18	1 835	1 526	20
Currency change from 2014	–89	-		–217	-
Currency adjusted operating income	837	788	6	1 618	1 526	6
Income before taxes	777	639	22	1 533	1 231	25
Currency change from 2014	–84	-		–191	-
Currency adjusted income before taxes	693	639	8	1 342	1 231	9

Note 2 Other operating income

Other operating income consists in its entirety of trade mark fees from Securitas Direct AB.

Note 3 Share in income of associated companies

Securitas recognizes share in income of associated companies depending on the purpose of the investment.

· Associated companies that have been acquired to contribute to the operations (operational) are included in operating income before amortization.

· Associated companies that have been acquired as part of the financing of the Group (financial investments) are included in income before taxes as a separate line within the finance net. Currently, Securitas has no associated companies recognized as financial investments.

Note 4 Acquisition related costs

MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Restructuring and integration costs	–1.9	–0.1	–9.8	–0.1	–0.8
Transaction costs	–3.2	–4.9	–3.7	–6.0	–11.3
Revaluation of deferred considerations	–1.8	–2.4	–3.0	–5.4	–5.0
Acquisition related costs	–6.9	–7.4	–16.5	–11.5	–17.1

Note 5 Items affecting comparability

MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Cash flow impact
Restructuring payments	–2.7	–24.9	–7.0	–42.7	–65.1
Spain – overtime compensation	–0.1	–1.5	–1.2	–2.7	–4.5
Germany – premises	–0.7	–0.4	–1.4	–0.8	–3.2
Total cash flow impact	–3.5	–26.8	–9.6	–46.2	–72.8

Note 6 Financial instruments and credit facilities

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. The amount disclosed in the specification of change in net debt is the total revaluation before tax in the table below.

MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Recognized in the statement of income
Revaluation of financial instruments	0.0	0.1	1.5	0.3	–0.4
Deferred tax	0.0	–0.1	–0.3	–0.1	0.1
Impact on net income	0.0	0.0	1.2	0.2	–0.3
Recognized in the statement of comprehensive income
Cash flow hedges	2.3	–0.3	–1.8	–1.0	0.0
Deferred tax	–0.5	0.1	0.4	0.2	0.0
Cash flow hedges net of tax	1.8	–0.2	–1.4	–0.8	0.0
Total revaluation before tax	2.3	–0.2	–0.3	–0.7	–0.4
Total deferred tax	–0.5	0.0	0.1	0.1	0.1
Total revaluation after tax	1.8	–0.2	–0.2	–0.6	–0.3

Note 6, cont.

Fair value hierarchy

The methods and assumptions used by the Group in estimating the fair value of the financial instruments are disclosed in note 6 in the Annual Report 2014.

Further information regarding the accounting principles for financial instruments is disclosed in note 2 in the Annual Report 2014.

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
June 30, 2015
Financial assets at fair value through profit or loss	-	22.7	-	22.7
Financial liabilities at fair value through profit or loss	-	–14.5	-	–14.5
Derivatives designated for hedging with positive fair value	-	219.8	-	219.8
Derivatives designated for hedging with negative fair value	-	–10.2	-	–10.2
December 31, 2014
Financial assets at fair value through profit or loss	-	6.2	-	6.2
Financial liabilities at fair value through profit or loss	-	–149.2	-	–149.2
Derivatives designated for hedging with positive fair value	-	330.1	-	330.1
Derivatives designated for hedging with negative fair value	-	–0.6	-	–0.6

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 6 in the Annual Report 2014.

		Jun 30, 2015		Dec 31, 2014
MSEK	Carrying value	Fair value	Carrying value	Fair value
Short-term loan liabilities	-	-	400.3	400.3
Long-term loan liabilities	9 395.1	9 683.8	9 770.2	10 045.8
Total financial instruments by category	9 395.1	9 683.8	10 170.5	10 446.1

Summary of credit facilities as of June 30, 2015

		Facility amount	Available amount
Type	Currency	(million)	(million)	Maturity
EMTN FRN private placement	USD	40	0	2015
EMTN Eurobond, 2.75% fixed	EUR	350	0	2017
EMTN FRN private placement	USD	50	0	2018
EMTN Eurobond, 2.25% fixed	EUR	300	0	2018
EMTN FRN private placement	USD	85	0	2019
EMTN FRN private placement	USD	40	0	2020
Multi Currency Revolving Credit Facility	USD (or equivalent)	550	550	2020
Multi Currency Revolving Credit Facility	EUR (or equivalent)	440	440	2020
EMTN FRN private placement	USD	60	0	2021
EMTN Eurobond, 2.625% fixed	EUR	350	0	2021
Commercial Paper (uncommitted)	SEK	5 000	2 350	n/a

Note 7 Tax effects on other comprehensive income

MSEK	Apr–Jun 2015	Apr–Jun 2014	Jan–Jun 2015	Jan–Jun 2014	Jan–Dec 2014
Deferred tax on remeasurements of defined benefit pension plans	–40.0	19.4	–40.7	33.4	125.6
Deferred tax on cash flow hedges	–0.5	0.1	0.4	0.2	0.0
Deferred tax on net investment hedges	–17.0	1.6	–7.2	10.7	–39.2
Deferred tax on other comprehensive income	–57.5	21.1	–47.5	44.3	86.4

Note 8 Restated segment comparatives due to organizational changes

The tables below show restated comparative figures for the segments Security Services Europe and Other. The restatement is done to reflect that operations have been moved from the segment Security Services Europe to the segment Other as of January 1, 2015. This change has had no effect on the total Group level.

MSEK	Q1 2014	Q2 2014	H1 2014	Q3 2014	9M 2014	Q4 2014	FY 2014
Security Services Europe
Total sales	8 154	8 676	16 830	8 897	25 727	9 181	34 908
Organic sales growth, %	1	1	1	2	1	3	2
Operating income before amortization	423	467	890	567	1 457	593	2 050
Operating margin, %	5.2	5.4	5.3	6.4	5.7	6.5	5.9
Other
Total sales	243	256	499	276	775	320	1 095
Organic sales growth, %	-	-	-	-	-	-	-
Operating income before amortization	–59	–71	–130	–61	–191	–83	–274
Operating margin, %	-	-	-	-	-	-	-

Parent Company

STATEMENT OF INCOME

MSEK	Jan–Jun 2015	Jan–Jun 2014
License fees and other income	417.4	431.4
Gross income	417.4	431.4
Administrative expenses	–253.6	–226.5
Operating income	163.8	204.9
Financial income and expenses	1 697.8	777.8
Income after financial items	1 861.6	982.7
Appropriations	–252.3	–2.4
Income before taxes	1 609.3	980.3
Taxes	–8.8	–8.5
Net income for the period	1 600.5	971.8

Balance sheet

MSEK	Jun 30, 2015	Dec 31, 2014
ASSETS
Non-current assets
Shares in subsidiaries	37 280.6	37 257.5
Shares in associated companies	112.1	112.1
Other non-interest-bearing non-current assets	267.6	262.3
Interest-bearing financial non-current assets	802.0	902.9
Total non-current assets	38 462.3	38 534.8
Current assets
Non-interest-bearing current assets	402.7	130.5
Other interest-bearing current assets	4 877.0	4 000.2
Liquid funds	1 653.8	2 067.8
Total current assets	6 933.5	6 198.5
TOTAL ASSETS	45 395.8	44 733.3
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Restricted equity	7 727.7	7 727.7
Non-restricted equity	17 897.1	17 298.9
Total shareholders' equity	25 624.8	25 026.6
Long-term liabilities
Non-interest-bearing long-term liabilities/provisions	167.7	159.1
Interest-bearing long-term liabilities	11 306.4	11 591.1
Total long-term liabilities	11 474.1	11 750.2
Current liabilities
Non-interest-bearing current liabilities	877.8	714.5
Interest-bearing current liabilities	7 419.1	7 242.0
Total current liabilities	8 296.9	7 956.5
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	45 395.8	44 733.3

Definitions

Interest coverage ratio

Operating income before amortization (rolling 12 months) plus interest income (rolling 12 months) in relation to interest expenses (rolling 12 months).

Free cash flow, %

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).

Free cash flow in relation to net debt

Free cash flow (rolling 12 months) in relation to closing balance net debt.

Operating capital employed as % of total sales

Operating capital employed as a percentage of total sales adjusted for the full-year sales of acquired entities.

Return on operating capital employed, %

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.

Return on capital employed, %

Operating income before amortization (rolling 12 months) plus items affecting comparability (rolling 12 months) as a percentage of closing balance of capital employed.

Net debt equity ratio, multiple

Net debt in relation to shareholders' equity.

Financial information

PRESENTATION OF THE interim REPORT

Analysts and media are invited to participate in a telephone conference on August 5, 2015 at 15:00 p.m. (CET) where Securitas CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas web. No information meeting will take place at Securitas headquarters at Lindhagensplan in Stockholm. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:

The United States: +1 855 269 2605 Sweden: +46 (0) 8519 993 55 United Kingdom: +44 (0) 203 194 0550

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 104703013

Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, + 46 104703011

Financial information calendar

November 4, 2015, app. 13.00 p.m. Interim Report January–September 2015

February 9, 2016, app. 08.00 a.m. Full Year Report January–December 2015

For further information regarding Securitas IR activities, refer to www.securitas.com/investors/financial calendar

ABOUT SECURITAS

Securitas is a knowledge leader in security and operates in North America, Europe, Latin America, the Middle East, Asia and Africa. The organization is flat and decentralized with three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. Securitas serves a wide range of customers in a variety of industries and customer segments, and the customers vary from the shop on the corner to global multibillion industries. The services provided are specialized guarding and mobile services, monitoring, technical solutions and consulting and investigations. Securitas can respond to the unique and specific security challenges facing its customers, and tailor its offering according to their specific industry demands. Securitas employs close to 320 000 people in 53 countries. Securitas is listed in the Large Cap segment at Nasdaq Stockholm.

Group financial targets

Securitas focuses on two financial targets. The first target relates to the statement of income: an average growth of earnings per share of 10 percent annually. The second target relates to the balance sheet: free cash flow in relation to net debt of at least 0.20.

Group strategy

Our strategy is to offer complete security solutions that integrate all of our areas of competence. Together with our customers, we develop optimal and cost-efficient solutions that are suited for the customers' needs. This brings added value to the customers and results in stronger, more long-term customer relationships and improved profitability.

number 556302–7241 Securitas AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13.00 (CET) on Wednesday, August 5, 2015.

Securitas AB

P.O. Box 12307 SE-10228 Stockholm Sweden Tel +46104703000 Fax +46104703122 www.securitas.com Visiting address: Lindhagensplan 70

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