Annual Report • Feb 10, 2014
Annual Report
Open in ViewerOpens in native device viewer
Full Year Report January–December 2013
OCTOBER–DECEMBER 2013
JANUARY–DECEMBER 2013
Organic sales growth was 1 percent and reflected the challenging macroeconomic situation prevailing in the US and Europe, affecting especially the security markets in France, Portugal and Spain. Fragile signs of macroeconomic recovery in Europe and the US have not yet been reflected in security market growth. Latin America continued to show strong organic sales growth.
The quarter-on-quarter improvement trend continued, although it was hampered by the weak security market and slow organic sales growth. The operating margin improved compared with the preceding year, mainly driven by various restructuring and cost-saving actions taken in 2012. We achieved cost savings in accordance with our restructuring plan.
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 fourth quarter of 2013 was 8 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 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–December summary 2 |
|
|---|---|
| Group development 4 | |
| Development in the Group's business segments 6 |
|
| Cash flow 9 | |
| Capital employed and financing 10 |
|
| Acquisitions 11 | |
| Divestitures 12 | |
| Other significant events 13 | |
| Change in Group Management 13 |
|
| Risks and uncertainties 14 | |
| Parent Company operations 15 |
|
| Accounting principles 16 | |
| Review report 18 | |
| Consolidated financial statements 19 |
|
| Segment overview 23 | |
| Notes 24 | |
| Parent Company 27 | |
| Definitions 27 | |
Financial information .......... 28
Comparatives have been restated for the business segments and the Group due to the organizational changes that took place in the Group as of January 1, 2013, and adoption of IAS 19 (revised). Further information can be found in the section Accounting principles on page 16 and in note 8.
| Quarter | Change, % | Full year | Change, % | |||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 2013 | Q4 2012 | Total | Real | 2013 | 2012 | Total | Real |
| Sales | 16 725 | 16 751 | 0 | 2 | 65 700 | 66 458 | –1 | 2 |
| Organic sales growth, % | 1 | 0 | 1 | 0 | ||||
| Operating income before amortization |
879 | 741 | 19 | 20 | 3 329 | 3 027 | 10 | 13 |
| Operating margin, % | 5.3 | 4.4 | 5.1 | 4.6 | ||||
| Amortization and impairment of acquisition related intangible assets |
–81 | –70 | –274 | –297 | ||||
| Acquisition related costs | –7 | 0 | –27 | –49 | ||||
| Items affecting comparability | - | –424 | - | –424 | ||||
| Operating income after amortization |
791 | 247 | 220 | 225 | 3 028 | 2 257 | 34 | 38 |
| Financial income and expenses | –86 | –148 | –385 | –573 | ||||
| Income before taxes | 705 | 99 | 612 | 624 | 2 643 | 1 684 | 57 | 61 |
| Net income for the period | 495 | 67 | 639 | 654 | 1 856 | 1 175 | 58 | 62 |
| Earnings per share, SEK | 1.35 | 0.19 | 611 | 643 | 5.07 | 3.22 | 57 | 62 |
| EPS, adjusted for IAC and impairment losses, SEK |
1.35 | 1.01 | 34 | 36 | 5.07 | 4.11 | 23 | 27 |
| Cash flow from operating activities, % | 140 | 231 | 97 | 106 | ||||
| Free cash flow | 983 | 1 538 | 2 088 | 2 086 | ||||
| Free cash flow to net debt ratio | - | - | 0.22 | 0.21 |
Comparatives have been restated due to the adoption of IAS 19 (revised).
Earnings per share amounted to SEK 5.07 (3.22), an increase of 57 percent compared to last year. Adjusted also for items affecting comparability and impairment losses earnings per share increased 23 percent. Real change of earnings per share, adjusted for items affecting comparability and impairment losses, was 27 percent due to the strengthening of the Swedish krona during 2013.
Free cash flow to net debt was 0.22 (0.21).
The Annual General Meeting of Securitas AB will be held on Monday, May 5, 2014 at 16.00 p.m. CET at Hilton Stockholm Slussen Hotel, Guldgränd 8, Stockholm. Refer to www.securitas.com/ Corporate Governance for more information regarding the AGM 2014. The Annual Report 2013 of Securitas AB will be published on www.securitas.com on April 14, 2014.
The Board of Directors proposes a dividend for 2013 of SEK 3.00 (3.00) per share. The total proposed dividend amounts to 52 percent of free cash flow. Thursday, May 8, 2014 is proposed as record date for the dividend.
The Board proposes 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 to be able to adjust the capital structure. Refer to Other Significant Events on page 13 for further information.
| Organic sales growth | Operating margin | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q4 | Full year | Q4 | Full year | ||||||
| % | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| Security Services North America | –2 | 1 | 0 | 1 | 5.4 | 5.1 | 5.2 | 4.7 | |
| Security Services Europe | 1 | 0 | 0 | 1 | 6.1 | 4.6 | 6.0 | 5.1 | |
| Security Services Ibero-America | 5 | –4 | 4 | –3 | 4.7 | 5.5 | 5.2 | 5.3 | |
| Group | 1 | 0 | 1 | 0 | 5.3 | 4.4 | 5.1 | 4.6 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013 and adoption of IAS 19 (revised).
Group quarterly Group quarterly sales development
Organic sales growth, %
Group quarterly operating income Group quarterly operating income development
Sales amounted to MSEK 16 725 (16 751) and organic sales growth was 1 percent (0). The Group's organic sales growth was mainly supported by Argentina, Turkey and the business unit federal government services in the US. France, Spain and the five guarding regions in the US hampered organic sales growth. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 2 percent (1).
Security solutions and technology sales run rate in the fourth quarter was 8 percent of Group sales.
Operating income before amortization was MSEK 879 (741) which, adjusted for changes in exchange rates, represented an improvement of 20 percent.
The Group's operating margin was 5.3 percent (4.4). The improvement was due to the restructuring and cost savings program initiated in 2012, but the comparatives were also weak due to year-end adjustments and one-off costs in Security Services Europe last year. Security Services North America and Security Services Europe improved the operating margin compared to last year while Security Services Ibero-America's operating margin declined, primarily negatively impacted by Spain but also by Argentina and Peru. The total price adjustments in the Group were slightly behind wage cost increases.
Amortization of acquisition related intangible assets amounted to MSEK –81 (–70).
Acquisition related costs were MSEK –7 (0). For further information refer to note 4.
Financial income and expenses amounted to MSEK –86 (–148).
Income before taxes was MSEK 705 (99). The real change adjusted for items affecting comparability, which last year amounted to MSEK –424, was 37 percent.
The Group's tax rate was 29.8 percent (32.6). The tax rate for the previous year before tax on items affecting comparability was 29.8 percent.
Net income was MSEK 495 (67). Earnings per share amounted to SEK 1.35 (0.19).
Sales amounted to MSEK 65 700 (66 458) and organic sales growth was 1 percent (0). Key contributors to the organic sales growth were Argentina, Germany, Turkey and the business unit federal government services in the US, while main negative impact derived from France, Spain, the United Kingdom and the five guarding regions in the US. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 2 percent (4).
Operating income before amortization was MSEK 3 329 (3 027) which, adjusted for changes in exchange rates, represented an improvement of 13 percent.
The Group's operating margin was 5.1 percent (4.6), where the restructuring and cost savings program was the key reason behind the improvement. Security Services Ibero-America showed a slight decline in the operating margin, while Security Services Europe and Security Services North America improved. However, harsh macroeconomic conditions and a weak security market growth have had a negative impact on the operating result improvement. The total price adjustments in the Group were slightly lower compared to wage cost increases.
Amortization and impairment of acquisition related intangible assets amounted to MSEK –274 (–297), of which impairment losses constitute MSEK 0 (–26).
Acquisition related costs were MSEK –27 (–49). For further information refer to note 4.
Financial income and expenses amounted to MSEK –385 (–573).
Income before taxes was MSEK 2 643 (1 684). The real change adjusted for items affecting comparability and impairment losses, which last year amounted to MSEK –450, was 27 percent.
The Group's tax rate was 29.8 percent (30.2). The tax rate for the previous year before nondeductible impairment losses and tax on items affecting comparability was 29.7 percent.
Net income was MSEK 1 856 (1 175). Earnings per share amounted to SEK 5.07 (3.22).
6
Quarterly sales Quarterly sales development
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 109 000 employees and 640 branch managers.
| Quarter | Change, % | Full year | Change, % | |||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 2013 | Q4 2012 | Total | Real | 2013 | 2012 | Total | Real |
| Total sales | 5 724 | 5 935 | –4 | –2 | 22 841 | 23 539 | –3 | 0 |
| Organic sales growth, % | –2 | 1 | 0 | 1 | ||||
| Share of Group sales, % | 34 | 35 | 35 | 35 | ||||
| Operating income | ||||||||
| before amortization | 308 | 301 | 2 | 4 | 1 177 | 1 113 | 6 | 9 |
| Operating margin, % | 5.4 | 5.1 | 5.2 | 4.7 | ||||
| Share of Group operating income, % | 35 | 41 | 35 | 37 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013 and adoption of IAS 19 (revised).
The organic sales growth was –2 percent (1), with a negative effect from the five guarding regions where a few customer contracts were lost. However, the new sales were strong in the quarter with customer contracts won in the business units federal government services and critical infrastructure. Measures have been taken in order to strengthen the sales organization focusing on national contracts, which is expected to pay off in 2014.
The operating margin was 5.4 percent (5.1), an improvement mainly driven by the business unit federal government services due to the turnaround in 2013. The effect from the restructuring and cost savings program initiated in 2012 had a smaller positive impact compared to previous quarters, as part of the fourth quarter effect 2013 was already in the comparatives.
The Swedish krona exchange rate strengthened versus the U.S. dollar and thus had a negative effect on the operating result in Swedish kronor. The real change was 4 percent in the quarter.
The organic sales growth was 0 percent (1). The positive impact from the business units federal government services, critical infrastructure and Pinkerton Corporate Risk Management was offset by negative impact from the loss of a few customer contracts in the five guarding regions.
The operating margin was 5.2 percent (4.7). Improvements were seen mainly in the five guarding regions as a result of the restructuring and cost savings program. Improvements were also seen in the business unit federal government services. The operating margin was hampered by a weak development in the business units aerospace/defense and healthcare.
The Swedish krona exchange rate strengthened versus the U.S. dollar and thus had a negative effect on the operating result in Swedish kronor. The real change was 9 percent in the period.
The client retention rate was 86 percent (90). The employee turnover rate in the business segment was 49 percent (53).
Quarterly operating income development Quarterly operating income development
Security Services Europe provides specialized guarding, security solutions and technology in 27 countries. The organization has in total 120 000 employees and over 800 branch managers.
| Quarter | Change, % | Full year | Change, % | |||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 2013 | Q4 2012 | Total | Real | 2013 | 2012 | Total | Real |
| Total sales | 8 443 | 8 236 | 3 | 2 | 32 716 | 32 741 | 0 | 1 |
| Organic sales growth, % | 1 | 0 | 0 | 1 | ||||
| Share of Group sales, % | 50 | 49 | 50 | 49 | ||||
| Operating income before amortization |
513 | 375 | 37 | 36 | 1 954 | 1 673 | 17 | 18 |
| Operating margin, % | 6.1 | 4.6 | 6.0 | 5.1 | ||||
| Share of Group operating income, % | 58 | 51 | 59 | 55 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013 and adoption of IAS 19 (revised).
Organic sales growth was 1 percent (0), strongly supported by Turkey. The United Kingdom turned to positive organic sales growth and showed 1 percent (–5). The impact from the negative organic sales growth in France of –3 percent (–9) was compensated by Germany. In Norway, organic sales growth was burdened by reductions in existing customer contracts and lower extra sales.
The operating margin was 6.1 percent (4.6), where the restructuring and cost savings program was the main contributor to the improvement. The operating margin in Sweden improved due to operational efficiencies and in the United Kingdom it was positively affected by a successful price increase campaign and the implementation of restructuring measures during the second and third quarter. The comparatives were weak in the segment as the fourth quarter last year was negatively affected by certain one-off costs in a number of countries and by year-end adjustments in the UK.
The Swedish krona exchange rate weakened versus the euro and thus had a positive effect on the operating result in Swedish kronor. The real change was 36 percent in the quarter.
Organic sales growth was 0 percent (1). Main negative impact stemmed from France with –6 percent (–6) followed by the United Kingdom with –3 percent (–2). The Nordic countries had lower organic sales growth compared to last year, due to Norway and Sweden. Germany and Turkey supported organic sales growth.
The operating margin was 6.0 percent (5.1). The improvement was to a large extent a result of the successful implementation of the restructuring and cost savings program. The operating margin in Sweden improved due to operational efficiencies and the comparatives were weak as one-off costs were recognized in the fourth quarter last year. The price and wage balance in the business segment was negative in the period however balanced by reduced social costs and operational improvements. The period was burdened by restructuring costs of MSEK –28 in the United Kingdom, which were offset by the divestment of a part of the home alarm business in Belgium and the Netherlands.
The Swedish krona exchange rate strengthened versus the euro and thus had a negative effect on the operating result in Swedish kronor. The real change was 18 percent in the period.
The client retention rate was 92 percent (91). The employee turnover was 27 percent (25).
Operating margin, %
Quarterly sales development
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 58 000 employees and 190 branch managers.
| Quarter | Change, % | Full year | Change, % | |||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Q4 2013 | Q4 2012 | Total | Real | 2013 | 2012 | Total | Real |
| Total sales | 2 334 | 2 365 | –1 | 7 | 9 266 | 9 341 | –1 | 6 |
| Organic sales growth, % | 5 | –4 | 4 | –3 | ||||
| Share of Group sales, % | 14 | 14 | 14 | 14 | ||||
| Operating income | ||||||||
| before amortization | 109 | 129 | –16 | –6 | 480 | 496 | –3 | 6 |
| Operating margin, % | 4.7 | 5.5 | 5.2 | 5.3 | ||||
| Share of Group operating income, % | 12 | 17 | 14 | 16 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013.
Organic sales growth was 5 percent (–4). Organic sales growth in Latin America was 22 percent (21), primarily driven by price increases in Argentina. Spain continued to impact negatively, showing –11 percent (–19), mainly due to customer contract losses. The improvement in Spain related to increased sales of technology and security solutions contracts.
The operating margin was 4.7 percent (5.5). The decline related mainly to Spain with negative leverage from volume losses, bad debt and to less year-end releases of employee related accruals compared to 2012. Last year, the operating margin in Argentina was supported by higher retroactive price increases. The operating margin in Peru declined slightly due to one-off adjustments.
In December 2013, the Spanish government introduced a number of additional labor related taxes, which are estimated to have a negative cost impact in 2014 of MEUR –7 in addition to any collective bargaining agreement on ordinary wage adjustments. Based on the new Spanish labor legislation from 2012, measures have been initiated to change material aspects of the Spanish labor agreement in order to mitigate the imposed cost increases. The final outcome of this process is expected by the end of the first quarter 2014.
The Swedish krona exchange rate strengthened and thus had a negative effect on the operating result in Swedish kronor. Especially the Argentinian peso had a weak development against the Swedish krona which impacted the operating result and the operating margin negatively. The real change in the segment was –6 percent in the quarter.
Organic sales growth was 4 percent (–3), explained by the Latin American countries with a strong organic sales growth of 23 percent (21), primarily due to price increases in Argentina. Colombia showed a strong development with double digit organic sales growth, as did Uruguay and Costa Rica. Organic sales growth was negative in the Iberian countries, showing –12 percent (–16) in Spain in the period.
The operating margin was 5.2 percent (5.3). The operating margin in Spain was supported by the effects from the restructuring and cost savings program. Increased sales within security solutions and technology and the outcome of the collective bargaining agreement impacted positively, while portfolio losses, bad debt and increased social payroll taxes had a hampering effect. Last year, the operating margin was supported by a repayment of old outstanding accounts receivables from public sector customers in Spain. The operating margin in Latin America was burdened by primarily Argentina where effects from a high inflation as well as restructuring costs were the main reasons.
The Swedish krona exchange rate strengthened and thus had a negative effect on the operating result in Swedish kronor. Especially the Argentinian peso had a weak development against the Swedish krona which impacted the operating result negatively by MSEK –37. The real change in the segment was 6 percent in the period.
The client retention rate was 87 percent (83). The employee turnover was 30 percent (33).
Quarterly operating income development income development
2013
Operating margin, %
Securitas AB
Operating income before amortization amounted to MSEK 879 (741). Net investments in noncurrent tangible and intangible assets amounted to MSEK 8 (–26).
Changes in accounts receivable were MSEK 143 (505) with a slight decrease of Days of Sales Outstanding (DSO) compared to September. Changes in other operating capital employed were MSEK 205 (493).
Cash flow from operating activities amounted to MSEK 1 235 (1 713), equivalent to 140 percent (231) of operating income before amortization.
Financial income and expenses paid amounted to MSEK –48 (–58). Current taxes paid amounted to MSEK –204 (–117).
Free cash flow was MSEK 983 (1 538), equivalent to 177 percent (314) of adjusted income.
Cash flow from investing activities, acquisitions, was MSEK –97 (–81).
Cash flow from items affecting comparability was MSEK –37 (–163), whereof MSEK –35 (–152) was related to the cost savings program, MSEK –2 (–10) was related to overtime compensation in Spain and MSEK 0 (–1) was related to premises in Germany.
Cash flow from financing activities was MSEK 464 (–982).
Cash flow for the period was MSEK 1 313 (312).
Operating income before amortization amounted to MSEK 3 329 (3 027). Net investments in noncurrent tangible and intangible assets amounted to MSEK 142 (–93).
Changes in accounts receivable were MSEK 1 (206). Last year changes in accounts receivable were supported by the repayment of old outstanding accounts receivables from public sector customers in Spain. Changes in other operating capital employed were MSEK –242 (61).
Cash flow from operating activities amounted to MSEK 3 230 (3 201), equivalent to 97 percent (106) of operating income before amortization.
Financial income and expenses paid amounted to MSEK –532 (–532). Current taxes paid amounted to MSEK –610 (–583).
Free cash flow was MSEK 2 088 (2 086), equivalent to 93 percent (108) of adjusted income.
Cash flow from investing activities, acquisitions, was MSEK –295 (–677).
Cash flow from items affecting comparability was MSEK –307 (–194), whereof MSEK –88 (0) was related to the payment to Deutsche Bank in Germany, which was disclosed in the full year report 2012, MSEK –205 (–152) was related to the cost savings program, MSEK –12 (–38) was related to overtime compensation in Spain and MSEK –2 (–4) was related to premises in Germany.
Cash flow from financing activities was MSEK –2 271 (1 222).
Cash flow for the period was MSEK –785 (2 437).
| MSEK | |
|---|---|
| Jan 1, 2013 | –9 865 |
| Free cash flow | 2 088 |
| Acquisitions | –295 |
| IAC payments | –307 |
| Dividend paid | –1 095 |
| Change in net debt | 391 |
| Translation and | |
| revaluation | –136 |
| Dec 31, 2013 | –9 610 |
The Group's operating capital employed was MSEK 3 181 (2 582) corresponding to 5 percent of sales (4) adjusted for the full year sales figures of acquired units.
Acquisitions decreased operating capital employed by MSEK –22 during the year.
The annual impairment test of all Cash Generating Units (CGU), which is required under IFRS, took place during the third quarter 2013 in conjunction with the business plan process for 2014. None of the CGUs tested for impairment had a carrying amount that exceeded the recoverable amount. Consequently no impairment losses have been recognized in 2013. In 2012, impairment losses of goodwill and other acquisition related intangible assets amounting to MSEK –26 were recognized.
Acquisitions increased consolidated goodwill by MSEK 151. Adjusted for translation differences of MSEK –64, total goodwill for the Group amounted to MSEK 14 362 (14 275).
Free cash flow/Net debt Free cash flow/net debt
Acquisitions have increased acquisition related intangible assets by MSEK 131. After amortization of MSEK –274 and translation differences of MSEK –43, acquisition related intangible assets amounted to MSEK 1 316 (1 502).
The Group's total capital employed was MSEK 18 991 (18 467). The translation of foreign capital employed to Swedish kronor decreased the Group's capital employed by MSEK –92.
The return on capital employed was 18 percent (14).
The Group's net debt amounted to MSEK 9 610 (9 865). Acquisitions and acquisition related payments increased the Group's net debt by MSEK 295, of which purchase price payments accounted for MSEK 257, assumed net debt for MSEK –17 and acquisition related costs paid accounted for MSEK 55. The Group's net debt increased by MSEK 146 due to the translation of net debt in foreign currency to Swedish kronor.
A dividend of MSEK 1 095 (1 095) was paid to the shareholders in May 2013.
The free cash flow to net debt ratio amounted to 0.22 (0.21).
The main capital market instruments drawn as of the end of December 2013 were twelve bonds issued under the Group's Euro Medium Term Note Program. These include an MUSD 85 floating rate private placement and a MEUR 350 Eurobond. The MUSD 85 private placement was issued on October 30, 2013 and matures on October 30, 2019. The Eurobond was issued on November 22, 2013 at a coupon of 2.625 percent. This bond matures on February 22, 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 year 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 7.9 (4.9).
Shareholders' equity amounted to MSEK 9 381 (8 602). The translation of foreign assets and liabilities into Swedish kronor decreased shareholders' equity by MSEK –238 after taking into account net investment hedging of MSEK –202 and MSEK –36 before net investment hedging. Refer to the statement of comprehensive income on page 19 for further information.
The total number of outstanding shares amounted to 365 058 897 as of December 31, 2013.
| Business | Included | Acquired | Annual | Enter - prise |
Acq. related intangible |
||
|---|---|---|---|---|---|---|---|
| Company | segment 1) | from | share 2) | sales 3) | value 4) Goodwill | assets | |
| Opening balance | 14 275 | 1 502 | |||||
| Selectron, Uruguay 7) | Security Services Ibero-America |
Feb 1 | 100 | 27 | 12 | 14 | 8 |
| ISS Facility Services, the Netherlands |
Security Services Europe |
Jul 5 | - | 315 | 9 | 3 | 45 |
| ISS Facility Services, Denmark |
Security Services Europe |
Sep 1 | - | 30 | 13 | - | 13 |
| Rentsec and Vamsa, South Africa 7) |
Other | Oct 1 | 100 | 25 | 1 | 42 | 18 |
| Tehnomobil, Croatia 7) 8) | Security Services Europe |
Nov 1 | 65 | 65 | 21 | 44 | 24 |
| Other acquisitions 5) 7) | 82 | 184 | 48 | 23 | |||
| Total acquisitions January–December 2013 | 544 | 240 | 1516) | 131 | |||
| Amortization of acquisition related intangible assets | - | –274 | |||||
| Exchange rate differences | –64 | –43 | |||||
| Closing balance | 14 362 | 1 316 |
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.
8) No non-controlling interests have been accounted for since Securitas has an option to buy the remaining shares and the seller has an option to sell the remaining shares. Consequently, 100 percent of the company is consolidated.
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 22. Transaction costs and revaluation of deferred considerations can be found in note 4 on page 24.
Securitas has acquired all shares in the monitoring and installation company Selectron in Uruguay. Selectron has 90 employees. The company has a strong presence in the financial and retail customer segments.
Securitas has acquired the commercial security services business contracts and assets of ISS Facility Services in the Netherlands. ISS' security services operation in the Netherlands has 800 employees. The acquisition was approved by the competitions authorities in the Netherlands on July 5, 2013 and was consolidated in Securitas as of July 5, 2013.
Securitas has acquired the commercial security services business contracts and assets and some stand-alone receptionist services of ISS Facility Services in Denmark with approximately 50 employees.
Securitas AB
Full Year Report, January–December 2013
Securitas has acquired all shares in the security solutions companies Rentsec and Vamsa in South Africa with 50 employees. The companies focus on remote video surveillance and strengthen Securitas position in South Africa as an integrated security solutions provider.
Securitas has acquired 65 percent of the shares in the security solutions company Tehnomobil in Croatia. The purchase of the remaining 35 percent of the shares is agreed to take place at the end of 2015. Tehnomobil has 60 employees. The company is the largest integrator of security systems in Croatia and offers a wide range of technical services, such as video surveillance, fire and gas detections, intrusion detection, access control and parking systems. Tehnomobil has a national footprint, with the head office in Zagreb.
Securitas and Securitas Direct Verisure have agreed that Securitas Direct Verisure acquires part of Securitas home alarm business in Belgium and the Netherlands. Net total purchase price was approximately MSEK 70 (MEUR 8.1).
The divestment provides Securitas an opportunity to focus on its core home alarm business to the high end residential segment, and further develop partnerships with certain partners with a broad customer base where Securitas will continue to offer services in monitoring and intervention. The net capital gain is included in operating income before amortization and was recognized in the third quarter of 2013. The cash proceeds from the transaction was classified as cash flow from operating activities.
For critical estimates and judgments, items affecting comparability, provisions and contingent liabilities refer to pages 84–85, 98–99 and pages 115–117 in the Annual Report 2012. 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.
The Spanish tax authority has in connection with an audit of Securitas Spain, challenged a tax exemption for the demerger of the Spanish Systems company in connection with the Securitas AB's distribution of the shares in Securitas Systems AB to its shareholders and listing on the Stockholm Stock Exchange in 2006.
Securitas has appealed the tax assessment received in July 2013 to the court, Tribunal Económico Administrativo Central. If finally upheld by Spanish courts, the resolution by the Spanish tax authorities would result in tax of MEUR 19, including interest up to December 31, 2013.
Securitas believes it has acted in accordance with applicable law and will defend its position in court. It may take a long time until a final judgment is made.
On August 1, 2013 the last major outstanding legal issue in the September 11 case involving Globe and other defendants was decided by a Court in New York, USA. In its judgment the Court dismissed plaintiffs claim for damages from Globe and the other defendants for the destruction of the World Trade Center properties. The plaintiff has filed its notice of appeal of the judgment.
Erik-Jan Jansen, Chief Operating Officer of Security Services Europe, will leave Securitas on April 1, 2014 for a President and CEO position at an international company. Erik-Jan Jansen joined Securitas in 1996 and has been a member of Securitas Group Management since 2008.
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 2012.
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 results may differ from these estimates and judgments under different circumstances and conditions.
For the forthcoming twelve-month period, the financial impact of certain previously recognized items affecting comparability, provisions and contingent liabilities, as described in the Annual Report for 2012 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 870 (992) and mainly relates to license fees and other income from subsidiaries.
Financial income and expenses amounted to MSEK 104 (2 792). The decrease in financial income and expenses compared to last year is mainly explained by lower dividends from subsidiaries.
Income before taxes amounted to MSEK 703 (3 498).
The Parent Company's non-current assets amounted to MSEK 38 043 (38 119) and mainly comprise shares in subsidiaries of MSEK 37 183 (37 156). Current assets amounted to MSEK 5 675 (6 440) of which liquid funds amounted to MSEK 2 008 (25). The increase in liquid funds is mainly due to the issuance of the MEUR 350 Eurobond in November.
Shareholders' equity amounted to MSEK 25 052 (25 545). A dividend of MSEK 1 095 (1 095) was paid to the shareholders in May 2013.
The Parent Company's liabilities amounted to MSEK 18 666 (19 014) and mainly consist of interest-bearing debt.
For further information, refer to the Parent Company's condensed financial statements on page 27.
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 75 to 81 in the Annual Report for 2012. The accounting principles are also available on the Group's website www.securitas.com under the section Investor Relations – Financials – 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 2012.
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 2012.
Due to organizational changes within the Group, segment comparatives have been restated as of January 1, 2013 as described below.
Security Services North America has been affected by operations within security consulting in the Netherlands that have been moved from the segment Other to Pinkerton Corporate Risk Management within Security Services North America. The previous segments Security Services Europe and Mobile and Monitoring have been merged into one segment named Security Services Europe. Furthermore, operations in Spain and Portugal have been moved from the previous segment Mobile and Monitoring to Security Services Ibero-America, while operations within security consulting in Belgium have been moved from the segment Other to Security Services Europe.
The organizational changes have impacted the distribution of sales and operating result between the business segments as well as the elimination of intra-group sales but have not had any impact on the total sales, organic sales growth, operating income nor operating margin for the Securitas Group.
IAS 1 (amended) has been be adopted by Securitas as of the financial year 2013. The amendments to the standard require the items in other comprehensive income to be split into two categories: items that will not be reclassified to the statement of income and items that subsequently may be reclassified to the statement of income. Taxes are disclosed separately for each category. For further information refer to the statement of comprehensive income and note 7.
IAS 19 (revised) has been adopted by Securitas as of the financial year 2013. The impact on the Group from the revised standard is that interest cost and expected return on assets have been replaced by a net interest cost which is calculated by applying the discount rate to the net defined benefit obligation (or asset). Further, past service costs are recognized immediately instead of being accrued over the vesting period. The effect on the Group's financial statements is that the costs recognized for 2011 and 2012 related to defined benefits to employees have increased. The actual benefits and the cash contributions for these plans are not impacted by IAS 19 (revised).
When restating the comparative years 2012 and 2011 the increase of these costs are MSEK –58 before taxes and MSEK –37 after taxes for 2012. For 2011 the increase is MSEK –50 before taxes and MSEK –30 after taxes. The increase in costs affects production expenses as well as selling and administrative expenses in operating income. For further information refer to note 8.
According to IAS 19 (revised) it is no longer possible to apply the so called corridor method. Since Securitas has not applied the corridor method, this change has no effect on the Group's financial statements
None of the other published standards and interpretations that are mandatory for the Group's financial year 2013 has had any impact on the Group's financial statements.
IFRS 10 Consolidated Financial statements, IFRS 11 Joint arrangements and IFRS 12 Disclosures of interests in other entities came into force January 1, 2013. They will be applied by companies within the EU for financial years beginning January 1, 2014 or later. These standards will thus be 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, February 10, 2014
Alf Göransson President and Chief Executive Officer
Translation of the Swedish original
Report of Review of Interim Financial Information prepared in accordance with IAS 34 and chapter 9 of the Annual Accounts Act.
We have reviewed this report for the period January 1, 2013 to December 31, 2013 for Securitas AB. The board of directors and the President and CEO 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.
We conducted our review in accordance with the International Standard on Review Engagements IRSE 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.
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, February 10, 2014 PricewaterhouseCoopers AB
Peter Nyllinge Authorised Public Accountant
| MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Sales | 16 553.9 | 16 523.5 | 65 017.5 | 64 039.8 | 58 995.6 |
| Sales, acquired business | 171.4 | 227.4 | 682.6 | 2 418.4 | 5 061.5 |
| Total sales | 16 725.3 | 16 750.9 | 65 700.1 | 66 458.2 | 64 057.1 |
| Organic sales growth, %1) | 1 | 0 | 1 | 0 | 3 |
| Production expenses * | –13 740.1 | –14 026.5 | –54 276.6 | –55 364.5 | –52 983.9 |
| Gross income* | 2 985.2 | 2 724.4 | 11 423.5 | 11 093.7 | 11 073.2 |
| Selling and administrative expenses * | –2 110.8 | –1 987.3 | –8 112.4 | –8 081.5 | –7 810.0 |
| Other operating income 2) | 3.3 | 4.0 | 13.5 | 12.8 | 74.3 |
| Share in income of associated companies 3) | 1.6 | 0.4 | 4.4 | 2.7 | –2.4 |
| Operating income before amortization* | 879.3 | 741.5 | 3 329.0 | 3 027.7 | 3 335.1 |
| Operating margin, %* | 5.3 | 4.4 | 5.1 | 4.6 | 5.2 |
| Amortization and impairment of acquisition related intangible assets | –80.9 | –69.8 | –273.7 | –297.1 | –218.2 |
| Acquisition related costs 4) | –7.6 | –0.5 | –26.8 | –49.5 | –193.5 |
| Items affecting comparability 5) | - | –424.3 | - | –424.3 | – |
| Operating income after amortization* | 790.8 | 246.9 | 3 028.5 | 2 256.8 | 2 923.4 |
| Financial income and expenses 6) | –85.6 | –147.7 | –385.0 | –573.0 | –493.0 |
| Income before taxes* | 705.2 | 99.2 | 2 643.5 | 1 683.8 | 2 430.4 |
| Net margin, %* | 4.2 | 0.6 | 4.0 | 2.5 | 3.8 |
| Current taxes | –238.7 | –104.6 | –708.6 | –526.4 | –680.1 |
| Deferred taxes * | 28.5 | 72.3 | –79.3 | 17.2 | –41.6 |
| Net income for the period* | 495.0 | 66.9 | 1 855.6 | 1 174.6 | 1 708.7 |
| Whereof attributable to: | |||||
| Equity holders of the Parent Company* | 493.9 | 67.8 | 1 852.5 | 1 174.2 | 1 705.8 |
| Non-controlling interests | 1.1 | –0.9 | 3.1 | 0.4 | 2.9 |
| Earnings per share before dilution (SEK) * | 1.35 | 0.19 | 5.07 | 3.22 | 4.67 |
| Earnings per share after dilution (SEK) * | 1.35 | 0.19 | 5.07 | 3.22 | 4.67 |
| MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Net income for the period* | 495.0 | 66.9 | 1 855.6 | 1 174.6 | 1 708.7 |
| 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* | 48.1 | 47.7 | 243.0 | –111.7 | –237.1 |
| Total items that will not be reclassified to the statement of income* 7) | 48.1 | 47.7 | 243.0 | –111.7 | –237.1 |
| Items that subsequently may be reclassified to the statement of income | |||||
| Cash flow hedges net of tax | 1.0 | 1.8 | 4.7 | 7.1 | 3.2 |
| Net investment hedges net of tax | –82.1 | –47.7 | –202.3 | –9.7 | 36.1 |
| Translation differences * | 161.9 | 82.2 | –36.1 | –550.1 | –132.5 |
| Total items that subsequently may be reclassified to the statement of | |||||
| income* 7) | 80.8 | 36.3 | –233.7 | –552.7 | –93.2 |
| Other comprehensive income for the period* 7) | 128.9 | 84.0 | 9.3 | –664.4 | –330.3 |
| Total comprehensive income for the period* | 623.9 | 150.9 | 1 864.9 | 510.2 | 1 378.4 |
| Whereof attributable to: | |||||
| Equity holders of the Parent Company* | 622.9 | 152.2 | 1 863.9 | 510.4 | 1 376.1 |
| Non-controlling interests | 1.0 | –1.3 | 1.0 | –0.2 | 2.3 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
Notes 1–7 refer to pages 24–27.
| Operating cash flow MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Operating income before amortization* | 879.3 | 741.5 | 3 329.0 | 3 027.7 | 3 335.1 |
| Investments in non-current tangible and intangible assets | –230.9 | –264.9 | –804.0 | –1 039.2 | –1 009.8 |
| Reversal of depreciation | 238.7 | 238.1 | 945.6 | 946.1 | 902.0 |
| Change in accounts receivable | 143.3 | 504.8 | 1.0 | 205.4 | –722.6 |
| Change in other operating capital employed* | 204.6 | 493.4 | –241.5 | 60.8 | –397.3 |
| Cash flow from operating activities | 1 235.0 | 1 712.9 | 3 230.1 | 3 200.8 | 2 107.4 |
| Cash flow from operating activities, %* | 140 | 231 | 97 | 106 | 63 |
| Financial income and expenses paid | –48.4 | –57.9 | –532.0 | –531.9 | –475.1 |
| Current taxes paid | –203.8 | –116.6 | –610.4 | –583.3 | –763.9 |
| Free cash flow | 982.8 | 1 538.4 | 2 087.7 | 2 085.6 | 868.4 |
| Free cash flow, %* | 177 | 314 | 93 | 108 | 40 |
| Cash flow from investing activities, acquisitions | –96.5 | –80.8 | –294.7 | –677.3 | –1 882.0 |
| Cash flow from items affecting comparability | –37.2 | –163.4 | –307.5 | –193.8 | –23.7 |
| Cash flow from financing activities | 463.6 | –982.6 | –2 270.5 | 1 222.7 | 968.9 |
| Cash flow for the period | 1 312.7 | 311.6 | –785.0 | 2 437.2 | –68.4 |
| Cash flow MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
| Cash flow from operations | 1 152.5 | 1 620.8 | 2 529.0 | 2 833.4 | 1 674.5 |
| Cash flow from investing activities | –303.4 | –326.6 | –1 043.5 | –1 618.9 | –2 711.8 |
| Cash flow from financing activities | 463.6 | –982.6 | –2 270.5 | 1 222.7 | 968.9 |
| Cash flow for the period | 1 312.7 | 311.6 | –785.0 | 2 437.2 | –68.4 |
| Change in net debt MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
| Opening balance | –10 293.1 | –11 110.6 | –9 864.6 | –10 348.8 | –8 208.9 |
| Cash flow for the period | 1 312.7 | 311.6 | –785.0 | 2 437.2 | –68.4 |
| Change in loans | –463.6 | 982.6 | 1 175.3 | –2 317.9 | –2 064.1 |
| Change in net debt before revaluation and translation differences | 849.1 | 1 294.2 | 390.3 | 119.3 | –2 132.5 |
| Revaluation of financial instruments 6) | 2.2 | 2.3 | 10.9 | 10.6 | 7.5 |
| Translation differences | –168.0 | –50.5 | –146.4 | 354.3 | –14.9 |
| Change in net debt | 683.3 | 1 246.0 | 254.8 | 484.2 | –2 139.9 |
| Closing balance | –9 609.8 | –9 864.6 | –9 609.8 | –9 864.6 | –10 348.8 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
Note 6 refers to page 25.
| MSEK | Dec 31, 2013 | Sep 30, 2013 | Dec 31, 2012 | Sep 30, 2012 | Dec 31, 2011 |
|---|---|---|---|---|---|
| Operating capital employed* | 3 180.9 | 3 469.4 | 2 581.5 | 3 687.6 | 3 145.8 |
| Operating capital employed as % of sales | 5 | 5 | 4 | 6 | 5 |
| Return on operating capital employed, %* | 116 | 91 | 91 | 95 | 116 |
| Goodwill | 14 361.9 | 14 087.6 | 14 275.4 | 14 200.9 | 14 727.4 |
| Acquisition related intangible assets | 1 315.6 | 1 335.3 | 1 501.9 | 1 500.4 | 1 574.1 |
| Shares in associated companies | 132.7 | 97.2 | 108.0 | 105.3 | 108.2 |
| Capital employed* | 18 991.1 | 18 989.5 | 18 466.8 | 19 494.2 | 19 555.5 |
| Return on capital employed, %* | 18 | 15 | 14 | 17 | 17 |
| Net debt | –9 609.8 | –10 293.1 | –9 864.6 | –11 110.6 | –10 348.8 |
| Shareholders' equity* | 9 381.3 | 8 696.4 | 8 602.2 | 8 383.6 | 9 206.7 |
| Net debt equity ratio, multiple | 1.02 | 1.18 | 1.15 | 1.33 | 1.12 |
| MSEK | Dec 31, 2013 | Sep 30, 2013 | Dec 31, 2012 | Sep 30, 2012 | Dec 31, 2011 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Non-current assets | |||||
| Goodwill | 14 361.9 | 14 087.6 | 14 275.4 | 14 200.9 | 14 727.4 |
| Acquisition related intangible assets | 1 315.6 | 1 335.3 | 1 501.9 | 1 500.4 | 1 574.1 |
| Other intangible assets | 325.2 | 313.7 | 368.1 | 351.9 | 330.5 |
| Tangible non-current assets | 2 269.4 | 2 253.7 | 2 377.7 | 2 345.5 | 2 361.8 |
| Shares in associated companies | 132.7 | 97.2 | 108.0 | 105.3 | 108.2 |
| Non-interest-bearing financial non-current assets * | 1 996.7 | 2 030.5 | 2 170.7 | 2 035.3 | 2 044.7 |
| Interest-bearing financial non-current assets | 150.9 | 146.2 | 224.3 | 190.5 | 189.5 |
| Total non-current assets* | 20 552.4 | 20 264.2 | 21 026.1 | 20 729.8 | 21 336.2 |
| Current assets | |||||
| Non-interest-bearing current assets | 12 575.5 | 12 837.0 | 12 434.1 | 13 133.8 | 12 802.6 |
| Other interest-bearing current assets | 59.5 | 17.6 | 116.3 | 76.8 | 19.6 |
| Liquid funds | 4 049.8 | 2 731.6 | 4 880.7 | 4 564.6 | 2 507.4 |
| Total current assets | 16 684.8 | 15 586.2 | 17 431.1 | 17 775.2 | 15 329.6 |
| TOTAL ASSETS* | 37 237.2 | 35 850.4 | 38 457.2 | 38 505.0 | 36 665.8 |
| MSEK | Dec 31, 2013 | Sep 30, 2013 | Dec 31, 2012 | Sep 30, 2012 | Dec 31, 2011 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||||
| Shareholders' equity | |||||
| Attributable to equity holders of the Parent Company* | 9 365.3 | 8 679.4 | 8 588.3 | 8 379.5 | 9 204.1 |
| Non-controlling interests | 16.0 | 17.0 | 13.9 | 4.1 | 2.6 |
| Total shareholders' equity* | 9 381.3 | 8 696.4 | 8 602.2 | 8 383.6 | 9 206.7 |
| Equity ratio, % | 25 | 24 | 22 | 22 | 25 |
| Long-term liabilities | |||||
| Non-interest-bearing long-term liabilities | 487.3 | 392.9 | 409.3 | 415.7 | 532.1 |
| Interest-bearing long-term liabilities | 11 509.8 | 7 692.0 | 9 099.9 | 10 480.9 | 8 576.8 |
| Non-interest-bearing provisions * | 2 463.8 | 2 523.8 | 2 887.0 | 3 138.0 | 3 120.8 |
| Total long-term liabilities* | 14 460.9 | 10 608.7 | 12 396.2 | 14 034.6 | 12 229.7 |
| Current liabilities | |||||
| Non-interest-bearing current liabilities and provisions | 11 034.8 | 11 048.8 | 11 472.8 | 10 625.2 | 10 740.9 |
| Interest-bearing current liabilities | 2 360.2 | 5 496.5 | 5 986.0 | 5 461.6 | 4 488.5 |
| Total current liabilities | 13 395.0 | 16 545.3 | 17 458.8 | 16 086.8 | 15 229.4 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES* | 37 237.2 | 35 850.4 | 38 457.2 | 38 505.0 | 36 665.8 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
| Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 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, 2013/2012/2011 | 8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 | 8 935.4 | 3.1 | 8 938.5 |
| Effect of change in accounting principle IAS 191) | - | - | - | - | - | - | 1.2 | - | 1.2 |
| Opening balance adjusted in accordance with new accounting principle |
8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 | 8 936.6 | 3.1 | 8 939.7 |
| Total comprehensive income for the period | 1 863.9 | 1.0 | 1 864.9 | 510.43) | –0.2 | 510.23) | 1 376.1 | 2.3 | 1 378.4 |
| Transactions with non-controlling interests | –2.0 | 1.1 | –0.9 | –35.0 | 11.5 | –23.5 | - | –2.8 | –2.8 |
| Share based incentive scheme | 10.3 | - | 10.32) | 4.0 | - | 4.0 | –13.4 | - | –13.4 |
| 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 December 31, 2013/2012/2011 | 9 365.3 | 16.0 | 9 381.3 | 8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 |
1) Refers to net impact after taxes of adoption of IAS 19 (revised).
2) Refers to a swap agreement in Securitas AB shares of MSEK –52.7, hedging the share portion of Securitas share based incentive scheme 2012,
and share based remuneration for the Group's participants in the share based incentive scheme 2013 of MSEK 63.0.
3) Restated as an effect of a change in accounting principle IAS 19 (revised).
| SEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Share price, end of period | 68.35 | 56.70 | 68.35 | 56.70 | 59.40 |
| Earnings per share before dilution 1, 2, 5) | 1.35 | 0.19 | 5.07 | 3.22 | 4.67 |
| Earnings per share before dilution and before items affecting comparability 1, 2, 5) | 1.35 | 1.014) | 5.07 | 4.114) | 4.67 |
| Dividend | - | - | 3.006) | 3.00 | 3.00 |
| P/E-ratio after dilution and before items affecting comparability | - | - | 13 | 144) | 13 |
| Share capital (SEK) | 365 058 897 | 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 | 365 058 897 |
| Average number of shares outstanding 3) | 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 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) Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
6) Proposed dividend.
| Security | Security | Security | ||||
|---|---|---|---|---|---|---|
| MSEK | Services North America |
Services Europe |
Services Ibero-America |
Other | Eliminations | Group |
| Sales, external | 22 834 | 32 716 | 9 266 | 884 | - | 65 700 |
| Sales, intra-group | 7 | - | - | 2 | –9 | - |
| Total sales | 22 841 | 32 716 | 9 266 | 886 | –9 | 65 700 |
| Organic sales growth, % | 0 | 0 | 4 | - | - | 1 |
| Operating income before amortization | 1 177 | 1 954 | 480 | –282 | - | 3 329 |
| of which share in income of associated companies | 1 | 0 | - | 3 | - | 4 |
| Operating margin, % | 5.2 | 6.0 | 5.2 | - | - | 5.1 |
| Amortization and impairment of acquisition related | ||||||
| intangible assets 1) | –33 | –147 | –70 | –24 | - | –274 |
| Acquisition related costs | 0 | –24 | –9 | 6 | - | –27 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating income after amortization | 1 144 | 1 783 | 401 | –300 | - | 3 028 |
| Financial income and expenses | - | - | - | - | - | –385 |
| Income before taxes | - | - | - | - | - | 2 643 |
| 1)Amortization and impairment of acquisition related intangible assets | ||||||
| Amortization of acquisition related intangible assets | –33 | –147 | –70 | –24 | - | –274 |
| Impairment losses of acquisition related intangible assets | - | - | - | - | - | - |
| Total | –33 | –147 | –70 | –24 | - | –274 |
| Security Services |
Security Services |
Security Services |
||||
|---|---|---|---|---|---|---|
| MSEK | North America 2) | Europe 2) | Ibero-America 2) | Other 2) | Eliminations 2) | Group 2) |
| Sales, external | 23 535 | 32 738 | 9 341 | 844 | - | 66 458 |
| Sales, intra-group | 4 | 3 | - | 0 | –7 | - |
| Total sales | 23 539 | 32 741 | 9 341 | 844 | –7 | 66 458 |
| Organic sales growth, % | 1 | 1 | –3 | - | - | 0 |
| Operating income before amortization | 1 113 | 1 673 | 496 | –255 | - | 3 027 |
| of which share in income of associated companies | - | - | - | 3 | - | 3 |
| Operating margin, % | 4.7 | 5.1 | 5.3 | - | - | 4.6 |
| Amortization and impairment of acquisition related | ||||||
| intangible assets 1) | –34 | –169 | –71 | –23 | - | –297 |
| Acquisition related costs | 8 | –18 | –42 | 3 | - | –49 |
| Items affecting comparability | –74 | –296 | –50 | –4 | - | –424 |
| Operating income after amortization | 1 013 | 1 190 | 333 | –279 | - | 2 257 |
| Financial income and expenses | - | - | - | - | - | –573 |
| Income before taxes | - | - | - | - | - | 1 684 |
| 1)Amortization and impairment of acquisition related intangible assets | ||||||
| Amortization of acquisition related intangible assets | –34 | –143 | –71 | –23 | - | –271 |
| Impairment losses of acquisition related intangible assets | - | –26 | - | - | - | –26 |
| Total | –34 | –169 | –71 | –23 | - | –297 |
2) Comparatives have been restated. Refer to note 8 for further information.
The calculation of organic sales growth (and the specification of currency changes on operating income and income before taxes) is specified below:
| MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Oct–Dec % | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec % |
|---|---|---|---|---|---|---|
| Total sales | 16 725 | 16 751 | 0 | 65 700 | 66 458 | –1 |
| Acquisitions/divestitures | –171 | –10 | –683 | –12 | ||
| Currency change from 2012 | 283 | - | 1 975 | - | ||
| Organic sales | 16 837 | 16 741 | 1 | 66 992 | 66 446 | 1 |
| Operating income | 879 | 741 | 19 | 3 329 | 3 027 | 10 |
| Currency change from 2012 | 13 | - | 96 | - | ||
| Currency adjusted operating income | 892 | 741 | 20 | 3 425 | 3 027 | 13 |
| Income before taxes | 705 | 99 | 612 | 2 643 | 1 684 | 57 |
| Currency change from 2012 | 12 | - | 69 | - | ||
| Currency adjusted income before taxes | 717 | 99 | 624 | 2 712 | 1 684 | 61 |
Other operating income 2013 and 2012 consists in its entirety of trade mark fees from Securitas Direct AB.
Other operating income for the full year 2011 mainly comprises dividend of MSEK 29.3 from the Group's disposed joint venture Securitas Direct S.A. in Switzerland and a capital gain from the disposal of this company of MSEK 20.3. It also comprises trade mark fees from Securitas Direct AB of MSEK 10.1 and other items MSEK 14.6.
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 | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Walsons Services PVT Ltd | 0.5 | 0.0 | 1.6 | 0.2 | –4.3 |
| Long Hai Security | 0.5 | 0.4 | 2.2 | 2.5 | 1.9 |
| Other associated companies | 0.6 | - | 0.6 | - | - |
| Share in income of associated companies included in operating income | |||||
| before amortization | 1.6 | 0.4 | 4.4 | 2.7 | –2.4 |
| MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Restructuring and integration costs | –13.5 | –8.8 | –25.8 | –62.2 | –135.3 |
| Transaction costs | –7.3 | –4.0 | –10.9 | –17.2 | –65.1 |
| Revaluation of deferred considerations | 13.2 | 12.3 | 9.9 | 29.9 | 6.9 |
| Acquisition related costs | –7.6 | –0.5 | –26.8 | –49.5 | –193.5 |
| MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Recognized in the statement of income | |||||
| Restructuring costs | - | –458.0 | - | –458.0 | - |
| Spain – overtime compensation | - | 22.7 | - | 22.7 | - |
| Germany – discontinued operations | - | 11.0 | - | 11.0 | - |
| Total recognized in the statement of income | - | –424.3 | - | –424.3 | - |
| Cash flow impact | |||||
| Restructuring payments | –34.7 | –152.4 | –205.0 | –152.4 | - |
| Spain – overtime compensation | –2.0 | –10.6 | –12.0 | –37.9 | –17.5 |
| Germany – Deutsche Bank | - | - | –88.5 | - | - |
| Germany – premises | –0.5 | –0.4 | –2.0 | –3.5 | –4.5 |
| Other items affecting comparability | - | - | - | - | –1.7 |
| Total cash flow impact | –37.2 | –163.4 | –307.5 | –193.8 | –23.7 |
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 | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Recognized in the statement of income | |||||
| Revaluation of financial instruments | 0.9 | –0.1 | 0.5 | 1.0 | 3.1 |
| Deferred tax | –0.2 | 0.0 | –0.1 | –0.3 | –0.8 |
| Impact on net income | 0.7 | –0.1 | 0.4 | 0.7 | 2.3 |
| Recognized in the statement of comprehensive income | |||||
| Cash flow hedges | 1.3 | 2.4 | 10.4 | 9.6 | 4.4 |
| Deferred tax | –0.3 | –0.6 | –2.2 | –2.5 | –1.2 |
| Adjustment of opening balance deferred taxes | - | - | –3.5 | - | - |
| Cash flow hedges net of tax | 1.0 | 1.8 | 4.7 | 7.1 | 3.2 |
| Total revaluation before tax | 2.2 | 2.3 | 10.9 | 10.6 | 7.5 |
| Total deferred tax | –0.5 | –0.6 | –5.8 | –2.8 | –2.0 |
| Total revaluation after tax | 1.7 | 1.7 | 5.1 | 7.8 | 5.5 |
The methods and assumptions used by the Group in estimating the fair value of the financial instruments are described in note 6 in the Annual Report 2012. Further information regarding the accounting principles for financial instruments are described in note 2 in the Annual Report 2012.
There have been no transfers between any of the the valuation levels during the period.
| MSEK | Quoted market prices |
Valuation techniques using observable market data |
Valuation techniques using non-observable market data |
Total |
|---|---|---|---|---|
| December 31, 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 |
| December 31, 2012 | ||||
| Financial assets at fair value through profit or loss | - | 105.6 | - | 105.6 |
| Financial liabilities at fair value through profit or loss | - | –48.4 | - | –48.4 |
| Derivatives designated for hedging with positive fair value | - | 102.0 | - | 102.0 |
| Derivatives designated for hedging with negative fair value | - | –10.9 | - | –10.9 |
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 2012.
| Dec 31, 2013 | Dec 31, 2012 | |||
|---|---|---|---|---|
| MSEK | Carrying value | Fair value | Carrying value | Fair value |
| Short-term loan liabilities | - | - | 4 302.4 | 4 355.7 |
| Long-term loan liabilities | 9 283.9 | 9 376.4 | 6 030.2 | 6 109.8 |
| Total financial instruments by category | 9 283.9 | 9 376.4 | 10 332.6 | 10 465.5 |
| Type | Currency | Facility amount (million) |
Available amount (million) |
Maturity |
|---|---|---|---|---|
| EMTN FRN private placement | EUR | 45 | 0 | 2014 |
| 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 | 4 250 | n/a |
| MSEK | Oct–Dec 2013 | Oct–Dec 2012 | Jan–Dec 2013 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|---|
| Deferred tax on remeasurements of defined benefit pension plans * | –13.8 | –27.5 | –115.2 | 37.3 | 116.1 |
| Deferred tax on cash flow hedges | –0.3 | –0.6 | –5.7 | –2.5 | –1.2 |
| Deferred tax on net investment hedges | 23.2 | 17.0 | 34.1 | 3.5 | –12.9 |
| Deferred tax on other comprehensive income | 9.1 | –11.1 | –86.8 | 38.3 | 102.0 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
The tables below show restated comparative figures for the business segments and for the Securitas Group. The restatement is done to reflect the organizational changes in the Group that took place on January 1, 2013 and to consider the impact from the adoption of IAS 19 (revised) that took place on the same date.
Security Services North America has been affected by operations within security consulting in the Netherlands that have been moved from the segment Other to Pinkerton Corporate Risk Management within Security Services North America. The previous segments Security Services Europe and Mobile and Monitoring have been merged into one segment named Security Services Europe. Furthermore, operations in Spain and Portugal have been moved from the previous segment Mobile and Monitoring to Security Services Ibero-America, while operations within security consulting in Belgium have been moved from the segment Other to Security Services Europe.
When restating the comparative years 2012 and 2011 due to the adoption of IAS 19 (revised), the increase of costs are MSEK –58 before taxes and MSEK –37 after taxes for 2012. For 2011 the increase was MSEK –50 before taxes and MSEK –30 after taxes. The increase in costs affects production expenses as well as selling and administrative expenses in operating income. The distribution of this impact between the business segments and for the Securitas Group as a whole is disclosed in the tables below. The line "of which impact from adoption of IAS 19 (revised)" shows the increase in cost compared to the previous version of IAS 19.
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
|---|---|---|---|---|---|---|---|---|
| Security Services North America | ||||||||
| Total sales | 22 415 | 5 686 | 6 069 | 11 755 | 5 849 | 17 604 | 5 935 | 23 539 |
| Organic sales growth, % | 4 | 1 | 1 | 1 | –1 | 0 | 1 | 1 |
| Operating income before amortization | 1 236 | 251 | 266 | 517 | 295 | 812 | 301 | 1 113 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | –38 | –10 | –11 | –21 | –11 | –32 | –11 | –43 |
| Operating margin, % | 5.5 | 4.4 | 4.4 | 4.4 | 5.0 | 4.6 | 5.1 | 4.7 |
| Security Services Europe | ||||||||
| Total sales | 31 589 | 8 056 | 8 341 | 16 397 | 8 108 | 24 505 | 8 236 | 32 741 |
| Organic sales growth, % | 0 | 1 | 2 | 1 | 2 | 1 | 0 | 1 |
| Operating income before amortization | 1 674 | 405 | 389 | 794 | 504 | 1 298 | 375 | 1 673 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | –12 | –4 | –4 | –8 | –3 | –11 | –4 | –15 |
| Operating margin, % | 5.3 | 5.0 | 4.7 | 4.8 | 6.2 | 5.3 | 4.6 | 5.1 |
| Security Services Ibero-America | ||||||||
| Total sales | 9 420 | 2 329 | 2 339 | 4 668 | 2 308 | 6 976 | 2 365 | 9 341 |
| Organic sales growth, % | 10 | 2 | –5 | –2 | –6 | –3 | –4 | –3 |
| Operating income before amortization | 597 | 117 | 121 | 238 | 129 | 367 | 129 | 496 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | - | - | - | - | - | - | - | - |
| Operating margin, % | 6.3 | 5.0 | 5.2 | 5.1 | 5.6 | 5.3 | 5.5 | 5.3 |
| Other | ||||||||
| Total sales | 642 | 195 | 222 | 417 | 211 | 628 | 216 | 844 |
| Organic sales growth, % | - | - | - | - | - | - | - | - |
| Operating income before amortization | –172 | –53 | –59 | –112 | –79 | –191 | –64 | –255 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | - | - | - | - | - | - | - | - |
| Operating margin, % | - | - | - | - | - | - | - | - |
| Eliminations | ||||||||
| Total sales | –9 | –2 | –1 | –3 | –3 | –6 | –1 | –7 |
| Group | ||||||||
| Total sales | 64 057 | 16 264 | 16 970 | 33 234 | 16 473 | 49 707 | 16 751 | 66 458 |
| Organic sales growth, % | 3 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Operating income before amortization | 3 335 | 720 | 717 | 1 437 | 849 | 2 286 | 741 | 3 027 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | –50 | –14 | –15 | –29 | –14 | –43 | –15 | –58 |
| Operating margin, % | 5.2 | 4.4 | 4.2 | 4.3 | 5.2 | 4.6 | 4.4 | 4.6 |
| MSEK | Jan–Dec 2013 | Jan–Dec 2012 |
|---|---|---|
| License fees and other income | 870.2 | 991.6 |
| Gross income | 870.2 | 991.6 |
| Administrative expenses | –538.5 | –779.8 |
| Operating income | 331.7 | 211.8 |
| Financial income and expenses | 104.2 | 2 792.1 |
| Income after financial items | 435.9 | 3 003.9 |
| Appropriations | 267.1 | 494.4 |
| Income before taxes | 703.0 | 3 498.3 |
| Taxes | –7.2 | –56.6 |
| Net income for the period | 695.8 | 3 441.7 |
| MSEK | Dec 31, 2013 | Dec 31, 2012 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Shares in subsidiaries | 37 183.0 | 37 156.3 |
| Shares in associated companies | 112.1 | 112.1 |
| Other non-interest-bearing non-current assets | 238.9 | 233.7 |
| Interest-bearing financial non-current assets | 509.4 | 616.8 |
| Total non-current assets | 38 043.4 | 38 118.9 |
| Current assets | ||
| Non-interest-bearing current assets | 359.9 | 1 770.4 |
| Other interest-bearing current assets | 3 307.6 | 4 645.1 |
| Liquid funds | 2 007.7 | 24.9 |
| Total current assets | 5 675.2 | 6 440.4 |
| TOTAL ASSETS | 43 718.6 | 44 559.3 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity | ||
| Restricted equity | 7 727.7 | 7 727.7 |
| Non-restricted equity | 17 323.9 | 17 817.7 |
| Total shareholders' equity | 25 051.6 | 25 545.4 |
| Long-term liabilities | ||
| Non-interest-bearing long-term liabilities/provisions | 160.7 | 113.4 |
| Interest-bearing long-term liabilities | 11 405.3 | 8 983.0 |
| Total long-term liabilities | 11 566.0 | 9 096.4 |
| Current liabilities | ||
| Non-interest-bearing current liabilities | 310.5 | 684.0 |
| Interest-bearing current liabilities | 6 790.5 | 9 233.5 |
| Total current liabilities | 7 101.0 | 9 917.5 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 43 718.6 | 44 559.3 |
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 February 10, 2014 at 09:30 a.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, 08:00 a.m. | Interim Report January–March 2014 |
|---|---|
| May 5, 2014, 16:00 p.m. | Annual General Meeting 2014 |
| 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 services 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 more than 300 000 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 08.00 a.m. (CET) on Monday, February 10, 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
Corporate registration
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.