Quarterly Report • May 5, 2014
Quarterly Report
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Interim Report January–March 2014
JANUARY–MARCH 2014
Organic sales growth was 2 percent in the first quarter. Our organic sales growth in the US shows signs of recovery. In Europe the French security market is no longer decreasing, while the Spanish market continues to decline. Latin America continues to show strong organic sales growth.
The operating income was on the same level as the preceding year, while the earnings per share improved with 9 percent. The operating margin in Security Services North America and Security Services Europe was on the same level as in the first quarter last year, while Security Services Ibero-America was burdened by the severe market conditions in Spain. The additional labor related taxes imposed by the Spanish Government in December last year have not been possible to pass on to the market, and in addition price concessions have been required in some annual contract renewals in order to protect the portfolio. Corrective actions are continuously taken to adapt to the reduced sales.
In 2012, sales of security solutions and technology represented approximately 6 percent of Group sales. We have set a target to triple this share of sales by the end of 2015. We continued to increase our investments in resources within security solutions and technology and the run rate in the first quarter of 2014 was 8.5 percent.
Due to current market dynamics and a gradual increase of the use of technology in security solutions, the security market in mature markets is no longer expected to grow 1 to 2 percent faster than GDP as it has historically, but rather at the same pace as GDP. In the future, this trend could be improved through increased outsourcing of currently insourced traditional guarding activities and by allowing the private security industry to take over services performed by public authorities and governments.
The degree to which technology is being integrated into security solutions varies from country to country in Securitas' markets. However, as the pace accelerates, we are confident that we will be able to gain markets shares by having a stronger and more cost-efficient offering than many traditional guarding companies. We have already seen proof of this in markets where we are well equipped to offer security solutions, where we will be able to grow faster than the security market average.
Alf Göransson President and Chief Executive Officer
| January–March summary 2 |
|---|
| Group development 3 |
| Development in the Group's business segments 4 |
| Cash flow 7 |
| Capital employed and financing 8 |
| Acquisitions 9 |
| Other significant events 10 |
| Change in Group Management 10 |
| Risks and uncertainties 10 |
| Parent Company operations 11 |
| Accounting principles 12 |
| Consolidated financial statements 13 |
| Segment overview 17 |
| Notes 18 |
| Parent Company 20 |
| Definitions 20 Securitas AB |
Interim Report, January–March 2014
Financial information .......... 21
| Quarter | Change, % | Full year | Change, % | |||
|---|---|---|---|---|---|---|
| MSEK | Q1 2014 | Q1 2013 | Total | Real | 2013 | Total |
| Sales | 16 111 | 15 860 | 2 | 2 | 65 700 | –1 |
| Organic sales growth, % | 2 | 0 | 1 | |||
| Operating income before amortization | 738 | 749 | –1 | 0 | 3 329 | 10 |
| Operating margin, % | 4.6 | 4.7 | 5.1 | |||
| Amortization of acquisition related intangible assets |
–61 | –64 | –274 | |||
| Acquisition related costs | –4 | –8 | –27 | |||
| Items affecting comparability | - | - | - | |||
| Operating income after amortization | 673 | 677 | –1 | 1 | 3 028 | 34 |
| Financial income and expenses | –81 | –136 | –385 | |||
| Income before taxes | 592 | 541 | 9 | 11 | 2 643 | 57 |
| Net income for the period | 415 | 380 | 9 | 11 | 1 856 | 58 |
| Earnings per share, SEK | 1.13 | 1.04 | 9 | 10 | 5.07 | 57 |
| EPS, adjusted for IAC and impairment losses, SEK |
1.13 | 1.04 | 9 | 10 | 5.07 | 23 |
| Cash flow from operating activities, % | 8 | 20 | 97 | |||
| Free cash flow | –231 | –123 | 2 088 | |||
| Free cash flow to net debt ratio | 0.20 | 0.20 | 0.22 |
| Organic sales growth | Operating margin | ||||
|---|---|---|---|---|---|
| Q1 | Q1 | ||||
| % | 2014 | 2013 | 2014 | 2013 | |
| Security Services North America | 1 | 0 | 5.0 | 5.0 | |
| Security Services Europe | 1 | 0 | 5.2 | 5.2 | |
| Security Services Ibero-America | 7 | 1 | 4.5 | 5.5 | |
| Group | 2 | 0 | 4.6 | 4.7 |
Organic sales growth, %
Sales amounted to MSEK 16 111 (15 860) and organic sales growth was 2 percent (0). Organic sales growth improved in all business segments where main support derived from Argentina, Turkey and the business unit critical infrastructure in the US. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 2 percent (2).
Security solutions and technology sales run rate in the first quarter was 8.5 percent of Group sales.
Operating income before amortization was MSEK 738 (749) which, adjusted for changes in exchange rates, represented a change of 0 percent. The weakened Argentinian peso impacted the quarter negatively with MSEK –21.
The Group's operating margin was 4.6 percent (4.7). Security Services North America and Security Services Europe had a flat operating margin compared to last year while Security Services Ibero-America's operating margin declined due to Spain, where additional labor related taxes introduced in December 2013 affected negatively. With the exception of Spain, the total price adjustments in the Group were on par with wage cost increases.
Amortization of acquisition related intangible assets amounted to MSEK –61 (–64).
Acquisition related costs were MSEK –4 (–8). For further information refer to note 4.
Financial income and expenses amounted to MSEK –81 (–136). When comparing to the first quarter of last year, the finance net was positively impacted by the repayment of the MEUR 500 bond loan in April 2013.
Income before taxes was MSEK 592 (541).
The Group's tax rate was 29.8 percent (29.8).
Net income was MSEK 415 (380). Earnings per share amounted to SEK 1.13 (1.04).
4
Security Services North America provides specialized guarding, security solutions and technology in the USA, Canada and Mexico. The organization comprises 13 business units with in total 104 000 employees and 640 branch managers.
| Quarter | Change, % | Full year | |||
|---|---|---|---|---|---|
| MSEK | Q1 2014 | Q1 2013 | Total | Real | 2013 |
| Total sales | 5 559 | 5 535 | 0 | 1 | 22 841 |
| Organic sales growth, % | 1 | 0 | 0 | ||
| Share of Group sales, % | 35 | 35 | 35 | ||
| Operating income before amortization | 277 | 274 | 1 | 1 | 1 177 |
| Operating margin, % | 5.0 | 5.0 | 5.2 | ||
| Share of Group operating income, % | 38 | 37 | 35 |
The organic sales growth was 1 percent (0), mainly supported by the business unit critical infrastructure (includes federal government services and defense and aerospace). The tender activity is gradually increasing and there are positive signs that the actions taken last year are starting to pay off in the organic sales growth.
The operating margin was 5.0 percent (5.0).
The Swedish krona exchange rate weakened slightly versus the U.S. dollar and thus had an insignificant effect on the operating income in Swedish kronor. The real change was 1 percent in the quarter.
The client retention rate was 86 percent (89). The employee turnover rate in the business segment was 51 percent (53).
Operating margin, %
Security Services Europe provides specialized guarding, security solutions and technology in 27 countries. The organization has in total more than 117 000 employees and over 800 branch managers.
| Quarter | Change, % | Full year | |||
|---|---|---|---|---|---|
| MSEK | Q1 2014 | Q1 2013 | Total | Real | 2013 |
| Total sales | 8 175 | 7 818 | 5 | 2 | 32 716 |
| Organic sales growth, % | 1 | 0 | 0 | ||
| Share of Group sales, % | 51 | 49 | 50 | ||
| Operating income before amortization | 423 | 407 | 4 | 1 | 1 954 |
| Operating margin, % | 5.2 | 5.2 | 6.0 | ||
| Share of Group operating income, % | 57 | 54 | 59 |
Organic sales growth was 1 percent (0), strongly supported by the positive development in Turkey. Norway showed good organic sales growth in the quarter and has recently won an important contract in the oil and gas industry which will start up in the second quarter. Germany continued to support organic sales growth, however this effect was offset by contract losses in the United Kingdom. France improved organic sales growth significantly and is now close to 0 percent, with an improving trend.
The operating margin was 5.2 percent (5.2).
The Swedish krona exchange rate weakened versus the euro and thus had a positive effect on the operating income in Swedish kronor. The real change was 1 percent in the quarter.
The client retention rate was 92 percent (90). The employee turnover was 26 percent (25).
Security Services Ibero-America provides specialized guarding, security solutions and technology in seven countries in Latin America, as well as Portugal and Spain in Europe. The organization has in total 57 000 employees and 190 branch managers.
| Quarter | Change, % | Full year | |||
|---|---|---|---|---|---|
| MSEK | Q1 2014 | Q1 2013 | Total | Real | 2013 |
| Total sales | 2 157 | 2 290 | –6 | 7 | 9 266 |
| Organic sales growth, % | 7 | 1 | 4 | ||
| Share of Group sales, % | 13 | 14 | 14 | ||
| Operating income before amortization | 97 | 125 | –22 | –4 | 480 |
| Operating margin, % | 4.5 | 5.5 | 5.2 | ||
| Share of Group operating income, % | 13 | 17 | 14 |
Organic sales growth was 7 percent (1). Organic sales growth in Latin America was 24 percent, primarily driven by price increases in Argentina. Even though the macro economic conditions in Spain improve and the economy is recovering from the crisis, this is not yet reflected in the security market. Fierce price competition remains. The significant investments made in Spain over the past years in Security Technology and Solutions is paying off, and the sales represents 16 percent of total sales in the first quarter to be compared to 8 percent in the full year of 2012. This positive development continues but is not yet sufficient to mitigate the difficult conditions in the guarding business. Spain showed an organic sales growth of –10 percent (–14).
The operating margin was 4.5 percent (5.5). The development related to Spain with negative impact from additional labor related taxes introduced in December 2013 and from negative impact from price concessions. A collective bargaining agreement was signed in February stipulating a wage freeze in 2014. The operating margin development in Latin America was positive and mainly driven by Argentina.
The Swedish krona exchange rate weakened against the Euro while the Argentinian Peso has weakened substantially early in the quarter and impacted the quarter negatively with MSEK –21. The real change in the segment was –4 percent in the quarter.
The client retention rate was 89 percent (88). The employee turnover was 29 percent (31).
Operating income before amortization amounted to MSEK 738 (749). Net investments in noncurrent tangible and intangible assets amounted to MSEK –24 (41).
Changes in accounts receivable were MSEK –116 (–35), with a slight increase of Days of Sales Outstanding (DSO) compared to December. Changes in other operating capital employed were MSEK –541 (–602).
Cash flow from operating activities amounted to MSEK 57 (153), equivalent to 8 percent (20) of operating income before amortization.
Financial income and expenses paid amounted to MSEK –184 (–159), with the current quarter impacted by the timing of payment of interest coupons on three bond loans. Current taxes paid amounted to MSEK –104 (–117).
Free cash flow was MSEK –231 (–123), equivalent to –45 percent (–26) of adjusted income.
Cash flow from investing activities, acquisitions, was MSEK –24 (–50).
Cash flow from items affecting comparability was MSEK –19 (–165), whereof MSEK –18 (–73) was related to the cost savings program, MSEK –1 (–4) was related to overtime compensation in Spain and MSEK 0 (–88) was related to payment to Deutsche Bank in Germany.
Cash flow from financing activities was MSEK –1 227 (2 132).
Cash flow for the period was MSEK –1 501 (1 794).
| MSEK | |
|---|---|
| Jan 1, 2014 | –9 610 |
| Free cash flow | –231 |
| Acquisitions | –24 |
| IAC payments | –19 |
| Change in net debt | –274 |
| Translation and revaluation |
–48 |
| Mar 31, 2014 | –9 932 |
The Group's operating capital employed was MSEK 3 789 (3 181 as of December 31, 2013) corresponding to 6 percent of sales (5 as of December 31, 2013) adjusted for the full year sales figures of acquired units.
Acquisitions decreased operating capital employed by MSEK –1 during the period.
Acquisitions increased consolidated goodwill by MSEK 6. Adjusted for translation differences of MSEK –39, total goodwill for the Group amounted to MSEK 14 329 (14 362 as of December 31, 2013).
Acquisitions have increased acquisition related intangible assets by MSEK 10. After amortization of MSEK –61 and translation differences of MSEK –17, acquisition related intangible assets amounted to MSEK 1 248 (1 316 as of December 31, 2013).
Free cash flow/Net debt Free cash flow/net debt
The Group's total capital employed was MSEK 19 501 (18 991 as of December 31, 2013). The translation of foreign capital employed to Swedish kronor decreased the Group's capital employed by MSEK –82.
The return on capital employed was 17 percent (18 as of December 31, 2013).
The Group's net debt amounted to MSEK 9 932 (9 610 as of December 31, 2013). Acquisitions and acquisition related payments increased the Group's net debt by MSEK 24, of which purchase price payments accounted for MSEK 21 and acquisition related costs paid accounted for MSEK 3. The Group's net debt increased by MSEK 48 due to the translation of net debt in foreign currency to Swedish kronor.
The free cash flow to net debt ratio amounted to 0.20 (0.20).
The main capital market instruments drawn as of the end of March 2014 were eleven bonds issued under the Group's Euro Medium Term Note Program, with maturity dates between September 2014 and February 2021. Securitas has access to committed bank financing through a Revolving Credit Facility (RCF), which comprises two respective tranches of MUSD 550 and MEUR 420 (MUSD 1 100 in total). At the end of the quarter there was no drawing, leaving the full amount available. The Group also has access to a MSEK 5 000 Swedish Commercial Paper Program for short-term borrowing needs. Further information regarding financial instruments and credit facilities is provided in note 6.
Securitas has ample liquidity headroom under the committed credit facilities in line with established policies, which combined with the strong free cash flow generation means that the future liquidity requirements for the Company's operations are met.
Standard and Poor's rating for Securitas is BBB with stable outlook. The Group's liquidity position is regarded as strong.
The interest cover ratio amounted to 9.2 (5.0).
Shareholders' equity amounted to MSEK 9 569 (9 381 as of December 31, 2013). The translation of foreign assets and liabilities into Swedish kronor decreased shareholders' equity by MSEK –130 after taking into account net investment hedging of MSEK –32 and MSEK –98 before net investment hedging. Refer to the statement of comprehensive income on page 13 for further information.
The total number of outstanding shares amounted to 365 058 897 as of March 31, 2014.
| Company | Business segment 1) |
Included from |
Acquired share 2) |
Annual sales 3) |
Enter - prise |
value 4) Goodwill | Acq. related intangible assets |
|---|---|---|---|---|---|---|---|
| Opening balance | 14 362 | 1 316 | |||||
| Other acquisitions 5) 7) | 16 | 20 | 6 | 10 | |||
| Total acquisitions January–March 2014 | 16 | 20 | 66) | 10 | |||
| Amortization of acquisition related intangible assets | - | –61 | |||||
| Exchange rate differences | –39 | –17 | |||||
| Closing balance | 14 329 | 1 248 |
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: EKS Technik, Germany, Sensormatic, Turkey, Consultora Videco, Argentina and Selectron, Uruguay. Related also to deferred considerations paid in Austria, Croatia, Argentina, Uruguay and Indonesia.
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 –4. Total deferred considerations, short-term and long-term, in the Group's balance sheet amount to MSEK 525.
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 16. Transaction costs and revaluation of deferred considerations can be found in note 4 on page 18.
For critical estimates and judgments, items affecting comparability, provisions and contingent liabilities refer to the Annual Report 2013. 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.
In order to be able to contribute to shareholder value, the Board considers it beneficial for the company to be able to adjust the company's capital structure as appropriate at each point in time. The Board has therefore decided to propose to the Annual General Meeting on May 5, 2014, that the Board be authorized to be able to resolve on the acquisition of the company's shares for a period until the next Annual General Meeting, up to a maximum of ten (10) percent of the issued shares in the company. For this purpose, the Board intends to propose that any shares that have been repurchased as per such an authorization be cancelled.
Åsa Thunman, Senior Vice President General Counsel and Group Risk Manager, will leave Securitas in the end of September 2014 to become Executive Vice President and General Counsel of Sandvik. Åsa Thunman joined Securitas in 2009 and has been a member of Securitas Group Management since 2011.
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 2013.
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 nine-month period, the financial impact of certain previously recognized items affecting comparability, provisions and contingent liabilities, as described in the Annual Report for 2013 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.
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.
The Parent Company's income amounted to MSEK 218 (221) and mainly relates to license fees and other income from subsidiaries.
Financial income and expenses amounted to MSEK 341 (46). The increase of financial income and expenses compared to last year is mainly explained by dividends from subsidiaries. Income before taxes amounted to MSEK 457 (99).
The Parent Company's non-current assets amounted to MSEK 38 152 (38 043 as of December 31, 2013) and mainly comprise shares in subsidiaries of MSEK 37 217 (37 183 as of December 31, 2013). Current assets amounted to MSEK 5 023 (5 675 as of December 31, 2013) of which liquid funds amounted to MSEK 1 086 (2 008 as of December 31, 2013).
Shareholders' equity amounted to MSEK 25 478 (25 052 as of December 31, 2013).
The Parent Company's liabilities amounted to MSEK 17 697 (18 666 as of December 31, 2013) and mainly consist of interest-bearing debt.
For further information, refer to the Parent Company's condensed financial statements on page 20.
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 71 to 77 in the Annual Report for 2013. The accounting principles are also available on the Group's website www.securitas.com under the section Investor Relations – 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 123 in the Annual Report for 2013.
There have been no other changes than the changes described below 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 2013.
IFRS 10 Consolidated Financial statements, IFRS 11 Joint arrangements and IFRS 12 Disclosures of interests in other entities have been adopted by Securitas as of the financial year 2014. They are assessed to have no material impact on the Group's financial statements.
None of the other published standards and interpretations that are mandatory for the Group's financial year 2014 is assessed to have any impact on the Group's financial statements.
Stockholm, May 5, 2014
Alf Göransson President and Chief Executive Officer
This report has not been reviewed by the company's auditors.
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Sales | 15 995.2 | 15 674.4 | 65 017.5 | 64 039.8 |
| Sales, acquired business | 116.0 | 185.7 | 682.6 | 2 418.4 |
| Total sales | 16 111.2 | 15 860.1 | 65 700.1 | 66 458.2 |
| Organic sales growth, %1) | 2 | 0 | 1 | 0 |
| Production expenses | –13 342.9 | –13 166.1 | –54 276.6 | –55 364.5 |
| Gross income | 2 768.3 | 2 694.0 | 11 423.5 | 11 093.7 |
| Selling and administrative expenses | –2 034.3 | –1 948.7 | –8 112.4 | –8 081.5 |
| Other operating income 2) | 3.8 | 3.5 | 13.5 | 12.8 |
| Share in income of associated companies 3) | 0.4 | 0.7 | 4.4 | 2.7 |
| Operating income before amortization | 738.2 | 749.5 | 3 329.0 | 3 027.7 |
| Operating margin, % | 4.6 | 4.7 | 5.1 | 4.6 |
| Amortization and impairment of acquisition related intangible assets | –61.5 | –64.0 | –273.7 | –297.1 |
| Acquisition related costs 4) | –4.1 | –8.2 | –26.8 | –49.5 |
| Items affecting comparability 5) | - | – | - | –424.3 |
| Operating income after amortization | 672.6 | 677.3 | 3 028.5 | 2 256.8 |
| Financial income and expenses 6) | –80.9 | –135.8 | –385.0 | –573.0 |
| Income before taxes | 591.7 | 541.5 | 2 643.5 | 1 683.8 |
| Net margin, % | 3.7 | 3.4 | 4.0 | 2.5 |
| Current taxes | –147.9 | –135.9 | –708.6 | –526.4 |
| Deferred taxes | –28.4 | –25.5 | –79.3 | 17.2 |
| Net income for the period | 415.4 | 380.1 | 1 855.6 | 1 174.6 |
| Whereof attributable to: | ||||
| Equity holders of the Parent Company | 414.1 | 379.9 | 1 852.5 | 1 174.2 |
| Non-controlling interests | 1.3 | 0.2 | 3.1 | 0.4 |
| Earnings per share before dilution (SEK) | 1.13 | 1.04 | 5.07 | 3.22 |
| Earnings per share after dilution (SEK) | 1.13 | 1.04 | 5.07 | 3.22 |
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Net income for the period | 415.4 | 380.1 | 1 855.6 | 1 174.6 |
| 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 | –31.6 | 90.4 | 243.0 | –111.7 |
| Total items that will not be reclassified to the statement of income 7) | –31.6 | 90.4 | 243.0 | –111.7 |
| Items that subsequently may be reclassified to the statement of income | ||||
| Cash flow hedges net of tax | –0.6 | –0.8 | 4.7 | 7.1 |
| Net investment hedges net of tax | –32.4 | 45.8 | –202.3 | –9.7 |
| Translation differences | –97.6 | –240.5 | –36.1 | –550.1 |
| Total items that subsequently may be reclassified to the statement of income 7) | –130.6 | –195.5 | –233.7 | –552.7 |
| Other comprehensive income for the period 7) | –162.2 | –105.1 | 9.3 | –664.4 |
| Total comprehensive income for the period | 253.2 | 275.0 | 1 864.9 | 510.2 |
| Whereof attributable to: | ||||
| Equity holders of the Parent Company | 252.0 | 275.8 | 1 863.9 | 510.4 |
| Non-controlling interests | 1.2 | –0.8 | 1.0 | –0.2 |
Notes 1–7 refer to pages 18–19.
13
| Operating cash flow MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Operating income before amortization | 738.2 | 749.5 | 3 329.0 | 3 027.7 |
| Investments in non-current tangible and intangible assets | –258.4 | –193.9 | –804.0 | –1 039.2 |
| Reversal of depreciation | 233.6 | 234.3 | 945.6 | 946.1 |
| Change in accounts receivable | –116.0 | –34.9 | 1.0 | 205.4 |
| Change in other operating capital employed | –540.9 | –602.3 | –241.5 | 60.8 |
| Cash flow from operating activities | 56.5 | 152.7 | 3 230.1 | 3 200.8 |
| Cash flow from operating activities, % | 8 | 20 | 97 | 106 |
| Financial income and expenses paid | –183.7 | –158.9 | –532.0 | –531.9 |
| Current taxes paid | –103.9 | –117.0 | –610.4 | –583.3 |
| Free cash flow | –231.1 | –123.2 | 2 087.7 | 2 085.6 |
| Free cash flow, % | –45 | –26 | 93 | 108 |
| Cash flow from investing activities, acquisitions | –23.6 | –50.2 | –294.7 | –677.3 |
| Cash flow from items affecting comparability | –19.4 | –165.4 | –307.5 | –193.8 |
| Cash flow from financing activities | –1 227.3 | 2 132.4 | –2 270.5 | 1 222.7 |
| Cash flow for the period | –1 501.4 | 1 793.6 | –785.0 | 2 437.2 |
| Cash flow MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
| Cash flow from operations | 4.6 | –111.3 | 2 529.0 | 2 833.4 |
| Cash flow from investing activities | –278.7 | –227.5 | –1 043.5 | –1 618.9 |
| Cash flow from financing activities | –1 227.3 | 2 132.4 | –2 270.5 | 1 222.7 |
| Cash flow for the period | –1 501.4 | 1 793.6 | –785.0 | 2 437.2 |
| Change in net debt MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
| Opening balance | –9 609.8 | –9 864.6 | –9 864.6 | –10 348.8 |
| Cash flow for the period | –1 501.4 | 1 793.6 | –785.0 | 2 437.2 |
| Change in loans | 1 227.3 | –2 132.4 | 1 175.3 | –2 317.9 |
| Change in net debt before revaluation and translation differences | –274.1 | –338.8 | 390.3 | 119.3 |
| Revaluation of financial instruments 6) | –0.5 | 2.3 | 10.9 | 10.6 |
| Translation differences | –47.7 | 140.3 | –146.4 | 354.3 |
| Change in net debt | –322.3 | –196.2 | 254.8 | 484.2 |
| Closing balance | –9 932.1 | –10 060.8 | –9 609.8 | –9 864.6 |
Note 6 refers to page 19.
| MSEK | Mar 31, 2014 | Dec 31, 2013 | Mar 31, 2013 | Dec 31, 2012 |
|---|---|---|---|---|
| Operating capital employed | 3 788.9 | 3 180.9 | 3 304.6 | 2 581.5 |
| Operating capital employed as % of sales | 6 | 5 | 5 | 4 |
| Return on operating capital employed, % | 95 | 116 | 89 | 91 |
| Goodwill | 14 328.9 | 14 361.9 | 14 053.7 | 14 275.4 |
| Acquisition related intangible assets | 1 247.7 | 1 315.6 | 1 417.8 | 1 501.9 |
| Shares in associated companies | 135.5 | 132.7 | 109.2 | 108.0 |
| Capital employed | 19 501.0 | 18 991.1 | 18 885.3 | 18 466.8 |
| Return on capital employed, % | 17 | 18 | 14 | 14 |
| Net debt | –9 932.1 | –9 609.8 | –10 060.8 | –9 864.6 |
| Shareholders' equity | 9 568.9 | 9 381.3 | 8 824.5 | 8 602.2 |
| Net debt equity ratio, multiple | 1.04 | 1.02 | 1.14 | 1.15 |
| MSEK | Mar 31, 2014 | Dec 31, 2013 | Mar 31, 2013 | Dec 31, 2012 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 14 328.9 | 14 361.9 | 14 053.7 | 14 275.4 |
| Acquisition related intangible assets | 1 247.7 | 1 315.6 | 1 417.8 | 1 501.9 |
| Other intangible assets | 328.0 | 325.2 | 340.5 | 368.1 |
| Tangible non-current assets | 2 335.3 | 2 269.4 | 2 330.6 | 2 377.7 |
| Shares in associated companies | 135.5 | 132.7 | 109.2 | 108.0 |
| Non-interest-bearing financial non-current assets | 1 963.6 | 1 996.7 | 2 088.3 | 2 170.7 |
| Interest-bearing financial non-current assets | 223.3 | 150.9 | 165.3 | 224.3 |
| Total non-current assets | 20 562.3 | 20 552.4 | 20 505.4 | 21 026.1 |
| Current assets | ||||
| Non-interest-bearing current assets | 13 199.9 | 12 575.5 | 12 901.2 | 12 434.1 |
| Other interest-bearing current assets | 110.1 | 59.5 | 36.4 | 116.3 |
| Liquid funds | 2 552.0 | 4 049.8 | 6 640.0 | 4 880.7 |
| Total current assets | 15 862.0 | 16 684.8 | 19 577.6 | 17 431.1 |
| TOTAL ASSETS | 36 424.3 | 37 237.2 | 40 083.0 | 38 457.2 |
| MSEK | Mar 31, 2014 | Dec 31, 2013 | Mar 31, 2013 | Dec 31, 2012 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | ||||
| Attributable to equity holders of the Parent Company | 9 551.7 | 9 365.3 | 8 811.4 | 8 588.3 |
| Non-controlling interests | 17.2 | 16.0 | 13.1 | 13.9 |
| Total shareholders' equity | 9 568.9 | 9 381.3 | 8 824.5 | 8 602.2 |
| Equity ratio, % | 26 | 25 | 22 | 22 |
| Long-term liabilities | ||||
| Non-interest-bearing long-term liabilities | 463.0 | 487.3 | 410.6 | 409.3 |
| Interest-bearing long-term liabilities | 10 246.7 | 11 509.8 | 8 504.7 | 9 099.9 |
| Non-interest-bearing provisions | 2 450.2 | 2 463.8 | 2 709.8 | 2 887.0 |
| Total long-term liabilities | 13 159.9 | 14 460.9 | 11 625.1 | 12 396.2 |
| Current liabilities | ||||
| Non-interest-bearing current liabilities and provisions | 11 124.7 | 11 034.8 | 11 235.6 | 11 472.8 |
| Interest-bearing current liabilities | 2 570.8 | 2 360.2 | 8 397.8 | 5 986.0 |
| Total current liabilities | 13 695.5 | 13 395.0 | 19 633.4 | 17 458.8 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 36 424.3 | 37 237.2 | 40 083.0 | 38 457.2 |
| Mar 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 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, 2014/2013/2012 | 9 365.3 | 16.0 | 9 381.3 | 8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 |
| Total comprehensive income for the period | 252.0 | 1.2 | 253.2 | 1 863.9 | 1.0 | 1 864.9 | 510.4 | –0.2 | 510.2 |
| Transactions with non-controlling interests | - | - | - | –2.0 | 1.1 | –0.9 | –35.0 | 11.5 | –23.5 |
| Share based incentive scheme | –65.6 | - | –65.61) | 10.3 | - | 10.3 | 4.0 | - | 4.0 |
| Dividend paid to the shareholders of the Parent Company |
- | - | - | –1 095.2 | - | –1 095.2 | –1 095.2 | - | –1 095.2 |
| Closing balance March 31/December 31, 2014/2013/2012 |
9 551.7 | 17.2 | 9 568.9 | 9 365.3 | 16.0 | 9 381.3 | 8 588.3 | 13.9 | 8 602.2 |
1) Refers to a swap agreement in Securitas AB shares, hedging the share portion of Securitas share based incentive scheme 2013.
| SEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Share price, end of period | 74.95 | 61.35 | 68.35 | 56.70 |
| Earnings per share before dilution 1, 2) | 1.13 | 1.04 | 5.07 | 3.22 |
| Earnings per share before dilution and before items affecting comparability 1, 2) | 1.13 | 1.04 | 5.07 | 4.114) |
| Dividend | - | - | 3.005) | 3.00 |
| P/E-ratio after dilution and before items affecting comparability | - | - | 13 | 144) |
| Share capital (SEK) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
| Number of shares outstanding 3) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
| Average number of shares outstanding 3) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
1) There are no convertible debenture loans. Consequently there is no difference between earnings per share before and after dilution.
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) There are no convertible debenture loans. Consequently there is no difference between number of shares before and after dilution.
4) Calculated excluding items affecting comparability as well as impairment of goodwill and other acquisition related intangible assets.
5) Proposed dividend.
| Security | Security | Security | ||||
|---|---|---|---|---|---|---|
| MSEK | Services North America |
Services Europe |
Services Ibero-America |
Other | Eliminations | Group |
| Sales, external | 5 557 | 8 175 | 2 157 | 222 | - | 16 111 |
| Sales, intra-group | 2 | 0 | - | 0 | –2 | - |
| Total sales | 5 559 | 8 175 | 2 157 | 222 | –2 | 16 111 |
| Organic sales growth, % | 1 | 1 | 7 | - | - | 2 |
| Operating income before amortization | 277 | 423 | 97 | –59 | - | 738 |
| of which share in income of associated companies | –1 | 0 | - | 1 | - | 0 |
| Operating margin, % | 5.0 | 5.2 | 4.5 | - | - | 4.6 |
| Amortization of acquisition related intangible assets | –6 | –36 | –15 | –4 | - | –61 |
| Acquisition related costs | - | –2 | –2 | 0 | - | –4 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating income after amortization | 271 | 385 | 80 | –63 | - | 673 |
| Financial income and expenses | - | - | - | - | - | –81 |
| Income before taxes | - | - | - | - | - | 592 |
| Security Services |
Security Services |
Security Services |
||||
|---|---|---|---|---|---|---|
| MSEK | North America | Europe | Ibero-America | Other | Eliminations | Group |
| Sales, external | 5 533 | 7 818 | 2 290 | 219 | - | 15 860 |
| Sales, intra-group | 2 | - | - | - | –2 | - |
| Total sales | 5 535 | 7 818 | 2 290 | 219 | –2 | 15 860 |
| Organic sales growth, % | 0 | 0 | 1 | - | - | 0 |
| Operating income before amortization | 274 | 407 | 125 | –57 | - | 749 |
| of which share in income of associated companies | - | - | - | 1 | - | 1 |
| Operating margin, % | 5.0 | 5.2 | 5.5 | - | - | 4.7 |
| Amortization of acquisition related intangible assets | –8 | –34 | –17 | –5 | - | –64 |
| Acquisition related costs | - | –7 | –1 | 0 | - | –8 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating income after amortization | 266 | 366 | 107 | –62 | - | 677 |
| Financial income and expenses | - | - | - | - | - | –136 |
| Income before taxes | - | - | - | - | - | 541 |
The calculation of organic sales growth (and the specification of currency changes on operating income and income before taxes) is specified below:
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Mar % |
|---|---|---|---|
| Total sales | 16 111 | 15 860 | 2 |
| Acquisitions/divestitures | –116 | –11 | |
| Currency change from 2013 | 101 | - | |
| Organic sales | 16 096 | 15 849 | 2 |
| Operating income | 738 | 749 | –1 |
| Currency change from 2013 | 11 | - | |
| Currency adjusted operating income | 749 | 749 | 0 |
| Income before taxes | 592 | 541 | 9 |
| Currency change from 2013 | 7 | - | |
| Currency adjusted income before taxes | 599 | 541 | 11 |
Other operating income consists in its entirety of trade mark fees from Securitas Direct AB.
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.
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Walsons Services PVT Ltd | 0.5 | 0.4 | 1.6 | 0.2 |
| Long Hai Security | 0.4 | 0.3 | 2.2 | 2.5 |
| Other associated companies | –0.5 | - | 0.6 | - |
| Share in income of associated companies included in operating income before amortization | 0.4 | 0.7 | 4.4 | 2.7 |
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Restructuring and integration costs | 0.0 | –8.8 | –25.8 | –62.2 |
| Transaction costs | –1.1 | –2.3 | –10.9 | –17.2 |
| Revaluation of deferred considerations | –3.0 | 2.9 | 9.9 | 29.9 |
| Acquisition related costs | –4.1 | –8.2 | –26.8 | –49.5 |
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Recognized in the statement of income | ||||
| Restructuring costs | - | - | - | –458.0 |
| Spain – overtime compensation | - | - | - | 22.7 |
| Germany – discontinued operations | - | - | - | 11.0 |
| Total recognized in the statement of income | - | - | - | –424.3 |
| Cash flow impact | ||||
| Restructuring payments | –17.8 | –72.6 | –205.0 | –152.4 |
| Spain – overtime compensation | –1.2 | –3.8 | –12.0 | –37.9 |
| Germany – Deutsche Bank | - | –88.5 | –88.5 | - |
| Germany – premises | –0.4 | –0.5 | –2.0 | –3.5 |
| Total cash flow impact | –19.4 | –165.4 | –307.5 | –193.8 |
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 | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Recognized in the statement of income | ||||
| Revaluation of financial instruments | 0.2 | –1.1 | 0.5 | 1.0 |
| Deferred tax | 0.0 | 0.2 | –0.1 | –0.3 |
| Impact on net income | 0.2 | –0.9 | 0.4 | 0.7 |
| Recognized in the statement of comprehensive income | ||||
| Cash flow hedges | –0.7 | 3.4 | 10.4 | 9.6 |
| Deferred tax | 0.1 | –0.7 | –2.2 | –2.5 |
| Adjustment of opening balance deferred taxes | - | –3.5 | –3.5 | - |
| Cash flow hedges net of tax | –0.6 | –0.8 | 4.7 | 7.1 |
| Total revaluation before tax | –0.5 | 2.3 | 10.9 | 10.6 |
| Total deferred tax | 0.1 | –4.0 | –5.8 | –2.8 |
| Total revaluation after tax | –0.4 | –1.7 | 5.1 | 7.8 |
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 2013. Further information regarding the accounting principles for financial instruments is disclosed in note 2 in the Annual Report 2013.
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 |
|---|---|---|---|---|
| March 31, 2014 | ||||
| Financial assets at fair value through profit or loss | - | 33.6 | - | 33.6 |
| Financial liabilities at fair value through profit or loss | - | –59.8 | - | –59.8 |
| Derivatives designated for hedging with positive fair value | - | 135.6 | - | 135.6 |
| Derivatives designated for hedging with negative fair value | - | –1.3 | - | –1.3 |
| December 31, 2013 | ||||
| Financial assets at fair value through profit or loss | - | 59.5 | - | 59.5 |
| Financial liabilities at fair value through profit or loss | - | –50.5 | - | –50.5 |
| Derivatives designated for hedging with positive fair value | - | 41.9 | - | 41.9 |
| Derivatives designated for hedging with negative fair value | - | –7.8 | - | –7.8 |
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 2013.
| Mar 31, 2014 | Dec 31, 2013 | |||
|---|---|---|---|---|
| MSEK | Carrying value | Fair value | Carrying value | Fair value |
| Short-term loan liabilities | 409.5 | 404.9 | - | - |
| Long-term loan liabilities | 9 026.8 | 9 164.3 | 9 284.2 | 9 376.4 |
| Total financial instruments by category | 9 436.3 | 9 569.2 | 9 284.2 | 9 376.4 |
| Type | Currency | Facility amount (million) |
Available amount (million) |
Maturity |
|---|---|---|---|---|
| EMTN FRN private placement | SEK | 500 | 0 | 2014 |
| EMTN FRN private placement | SEK | 500 | 0 | 2014 |
| EMTN 3.45% fixed | SEK | 400 | 0 | 2015 |
| EMTN FRN private placement | SEK | 600 | 0 | 2015 |
| EMTN FRN private placement | USD | 62 | 0 | 2015 |
| EMTN FRN private placement | USD | 40 | 0 | 2015 |
| Multi Currency Revolving Credit Facility | USD equivalent | 1 100 | 1 100 | 2016 |
| 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 Eurobond, 2.625% fixed | EUR | 350 | 0 | 2021 |
| Commercial Paper (uncommitted) | SEK | 5 000 | 5 000 | n/a |
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|---|---|
| Deferred tax on remeasurements of defined benefit pension plans | 14.0 | –45.2 | –115.2 | 37.3 |
| Deferred tax on cash flow hedges | 0.1 | –4.2 | –5.7 | –2.5 |
| Deferred tax on net investment hedges | 9.1 | –12.9 | 34.1 | 3.5 |
| Deferred tax on other comprehensive income | 23.2 | –62.3 | –86.8 | 38.3 |
| MSEK | Jan–Mar 2014 | Jan–Mar 2013 |
|---|---|---|
| License fees and other income | 217.9 | 221.3 |
| Gross income | 217.9 | 221.3 |
| Administrative expenses | –114.2 | –89.4 |
| Operating income | 103.7 | 131.9 |
| Financial income and expenses | 341.2 | 46.3 |
| Income after financial items | 444.9 | 178.2 |
| Appropriations | 12.5 | –79.0 |
| Income before taxes | 457.4 | 99.2 |
| Taxes | –3.0 | –3.9 |
| Net income for the period | 454.4 | 95.3 |
| MSEK | Mar 31, 2014 | Dec 31, 2013 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Shares in subsidiaries | 37 217.4 | 37 183.0 |
| Shares in associated companies | 112.1 | 112.1 |
| Other non-interest-bearing non-current assets | 244.5 | 238.9 |
| Interest-bearing financial non-current assets | 578.2 | 509.4 |
| Total non-current assets | 38 152.2 | 38 043.4 |
| Current assets | ||
| Non-interest-bearing current assets | 557.2 | 359.9 |
| Other interest-bearing current assets | 3 379.8 | 3 307.6 |
| Liquid funds | 1 085.8 | 2 007.7 |
| Total current assets | 5 022.8 | 5 675.2 |
| TOTAL ASSETS | 43 175.0 | 43 718.6 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity | ||
| Restricted equity | 7 727.7 | 7 727.7 |
| Non-restricted equity | 17 750.1 | 17 323.9 |
| Total shareholders' equity | 25 477.8 | 25 051.6 |
| Long-term liabilities | ||
| Non-interest-bearing long-term liabilities/provisions | 158.2 | 160.7 |
| Interest-bearing long-term liabilities | 10 145.6 | 11 405.3 |
| Total long-term liabilities | 10 303.8 | 11 566.0 |
| Current liabilities | ||
| Non-interest-bearing current liabilities | 674.2 | 310.5 |
| Interest-bearing current liabilities | 6 719.2 | 6 790.5 |
| Total current liabilities | 7 393.4 | 7 101.0 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 43 175.0 | 43 718.6 |
Operating income before amortization (rolling 12 months) plus interest income (rolling 12 months) in relation to interest expenses (rolling 12 months).
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 (rolling 12 months) in relation to closing balance net debt.
Operating capital employed as a percentage of total sales adjusted for the full-year sales of acquired entities.
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.
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 in relation to shareholders' equity.
Analysts and media are invited to participate in a telephone conference on May 5, 2014 at 14:00 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: +1 855 753 2230 Sweden: +46 (0) 8 505 564 74 United Kingdom: +44 (0) 203 364 5374
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/webcasts. A recorded version of the audio cast will be available at www.securitas.com/webcasts after the telephone conference.
Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, + 46 10 470 3011
| May 5, 2014, 16:00 p.m. | Annual General Meeting 2014 The AGM will take place at Hilton Hotel Slussen in Stockholm at 16.00 p.m. |
|---|---|
| August 5, 2014, 08:00 a.m. | Interim Report January–June 2014 |
| November 4, 2014, 08:00 a.m. | Interim Report January–September 2014 |
For further information regarding Securitas IR activities, refer to www.securitas.com/Investor Relations/Financial Calendar
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 310 000 people in 52 countries. Securitas is listed in the Large Cap segment at NASDAQ OMX Stockholm.
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.
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 p.m. (CET) on Monday, May 5, 2014.
P.O. Box 12307 SE-102 28 Stockholm Sweden Tel +46 10 470 3000 Fax +46 10 470 3122 www.securitas.com Visiting address: Lindhagensplan 70
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