Loomis — Annual Report 2021

Feb 3, 2022

Full-Year Report January – December 2021

Q4 2021

• Revenue SEK 5,325 m (4,537). Real growth 15 percent (–7) of which organic growth 11 percent (–9).
• Operating income (EBITA)1) SEK 594 million (467) and operating margin 11.2 percent (10.3). Excluding Loomis Pay, the operating margin amounted to 12.1 percent (11.0)
• Income before tax SEK 500 million (203) and income after tax SEK 359 million (103).
• Earnings per share before and after dilution SEK 4.82 (1.37).
• Cash flow from operating activities2) SEK 433 million (362), equivalent to 73 percent (78) of operating income (EBITA).
• The ongoing coronavirus pandemic had, overall, less negative impact on revenue and operating income compared to the fourth quarter 2020.
• During the period 825,000 own shares were repurchased.

Full year 2021

• Revenue SEK 19,723 m (18,813). Real growth 10 percent (–8) of which organic growth 6 percent (–9).
• Operating income (EBITA)1) SEK 1,961 million (1,775) and operating margin 9.9 percent (9.4) Excluding Loomis Pay, the operating margin amounted to 10.7 percent (9.8)
• Income before tax SEK 1,545 million (1,096) and income after tax SEK 1,104 million (716).
• Earnings per share before dilution SEK 14.74 (9.52) and after dilution SEK 14.73 (9.52).
• Cash flow from operating activities2) SEK 1,620 million (2,218), equivalent to 83 percent (125) of operating income (EBITA).
• The ongoing coronavirus pandemic had, during the first quarter this year, a negative impact on revenue and operating income compared to the first quarter 2020. During the remainder of 2021, the overall impact on revenue and operating margin, from the pandemic, was lower compared to the corresponding quarters 2020.
• Dividend, for 2020, of SEK 6.00 per share (5.50) was distributed during the second quarter. The Board of Directors proposes a dividend, for 2021, of SEK 8.50 per share (6.00).
• During 2021 a total of 1,379,985 own shares were repurchased.

	2021	2020		2021	2020
SEK m	Quarter 4	Quarter 4	Change (%)	Twelve months	Twelve months	Change (%)
Revenue	5,325	4,537	17.4	19,723	18,813	4.8
Of which:
Organic growth	474	–475	10.5	1,045	–1,968	5.6
Acquisitions and divestments	204	82	4.5	815	326	4.3
Exchange rate effects	111	–412	2.4	–950	–589	–5.1
Total growth	788	–805	17.4	909	–2,231	4.8
Operating income (EBITA)1)	594	467		1,961	1,775
Operating margin (EBITA), %1)	11.2	10.3		9.9	9.4
Operating income (EBIT)	547	250		1,738	1,304
Earnings before tax	500	203		1,545	1,096
Profit for the period	359	103		1,104	716
Earnings per share before dilution, SEK	4.82	1.37		14.74	9.52
Tax rate, %	28	49		28	35
Cash flow from operating activities2)	433	362		1,620	2,218
Cash flow from operating activities as % of operating income (EBITA)2)	73	78		83	125

KEY RATIOS

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability. 2) Cash flow from operating activities excluding the effects of IFRS 16. See also under "Alternative performance measures" on pages 22–23 and "Definitions" on page 24.

An explanation and reconciliation of alternative performance measures can be found on pages 22–23 of this report.

Comments by the President and CEO

The positive trend continues

We are optimistic about 2022. Throughout 2021 the pandemic had a negative impact on travel and tourism, and we anticipate good growth opportunities when the situation in society is further normalized. Experiences from the pandemic are, in many countries, driving outsourcing of cash management services (CMS) and ATM services to providers such as Loomis. Our customers can reduce their costs and their risks if Loomis performs these services instead. In the USA SafePoint has shown good organic growth for a long time and now ambitious activities are under way in the European market to increase SafePoint sales revenue.

Despite the fact that the Omicron variant caused another surge in the spread in the fourth quarter, our business continues to develop in a positive direction. In the fourth quarter revenue within our US operations exceeded the level in quarter 4 2019 by 14 percent and in Europe, organic revenue amounted to 90 percent of the 2019 level. The corresponding figure for Europe was 85 percent for the third quarter 2021. It's also gratifying that development was the strongest in December – both in the USA and in Europe.

Significantly improved growth and higher operating margin

In the fourth quarter the Group's real growth amounted to 15 percent (–7), of which organic growth was 11 percent (–9). The Group's operating margin (EBITA %) amounted to 11.2 percent (10.3) in the

fourth quarter. As expected, Loomis Pay negatively impacted income, and excluding Loomis Pay, the operating margin amounted to 12.1 percent (11.0).

The positive growth in our US operations continues, with revenue growth in the fourth quarter of just over 13 percent in local currency. The growth is above all driven by continued good development of SafePoint. Revenue from SafePoint increased during the quarter by just over 18 percent.

The operating margin in USA in the fourth quarter amounted to 14.2 percent (17.5). Similar to the third quarter, the operating margin was lower than in previous quarters due to the structural challenges that currently exist in the US labor market. The amount of overtime has therefore temporarily increased as maintaining a high level of service for the customers is a priority.

Segment Europe was hit hard by the extensive lock downs that have taken place since the pandemic broke out. After the summer of 2021 the situation started to improve and this positive trend continued in the fourth quarter. The steps Loomis took early on to compensate for the temporary reduction in volumes continued to yield clear results. The operating margin for the European operations in the fourth quarter exceeded the operating margin for quarter 3, which is normally the strongest quarter of the year in Europe. The operating margin in the fourth quarter in Europe was 11.9 percent, an improvement of 5.8 percentage points compared to quarter 4 2020.

Our ambitious Loomis Pay initiative is making progress. The goal is to rollout Loomis Pay in additional markets during 2022 and for Loomis Pay to be the most complete payment option in the market.

We are also looking forward to meeting all of our stakeholders at the upcoming Capital Markets Day on 23 March.

Patrik Andersson President and CEO

Revenue, SEK billion

Operating margin (EBITA), %

Annual dividend, %

The segments

Revenue, operating income and number of full-time employees

SEGMENT EUROPE

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Revenue	2,766	2,368	10,178	9,788
Sales growth, %	16.8	–19.5	3.9	–14.9
of which organic growth, %	8.3	–16.6	–0.5	–15.4
of which acquisitions / divestments, %	8.5	2.4	8.0	2.9
of which exchange rate effects, %	0.0	–5.3	–3.6	–2.5
Real growth, %	16.8	–14.2	7.5	–12.4
Operating income (EBITA)	330	144	846	588
Operating margin, %	11.9	6.1	8.3	6.0
Number of full-time employees	14,000	13,900	13,900	13,900

SEGMENT USA

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Revenue	2,587	2,184	9,643	9,098
Sales growth, %	18.5	–9.9	6.0	–5.6
of which organic growth, %	13.2	0.3	12.3	–2.2
of which acquisitions / divestments, %	0.1	0.3	0.3	–0.2
of which exchange rate effects, %	5.1	–10.5	–6.6	–3.2
Real growth, %	13.4	0.6	12.6	–2.4
Operating income (EBITA)	367	382	1,452	1,425
Operating margin, %	14.2	17.5	15.1	15.7
Number of full-time employees	10,200	9,000	9,300	9,100

SEGMENT LOOMIS PAY

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Revenue	5	4	11	7
Sales growth, %	26.6	n/a	65.8	n/a
of which organic growth, %	27.3	n/a	23.4	n/a
of which acquisitions / divestments, %	0.0	n/a	44.0	n/a
of which exchange rate effects, %	–0.8	n/a	–1.5	n/a
Real growth, %	27.3	n/a	67.3	n/a
Operating income (EBITA)	–48	–30	–149	–68
Operating margin, %	n/a	n/a	n/a	n/a

Revenue and earnings

Quarter 4 2021

Group – revenue

Revenue for the quarter amounted to SEK 5,325 million (4,537). Real growth was 15 percent (–7), of which organic growth was 11 percent (–9). Revenues were primarely positively affected by higher sales in both Europe and the USA, and by acquisitions in Finland and Switzerland.

Segment Europe – revenue

Revenue for the quarter amounted to SEK 2,766 million (2,368). Real growth, which amounted to 17 percent (–14), was positively affected by revenue attributable to the acquisitions of Automatia in Finland in December 2020 and of the cash handling operations of Swiss Post in May 2021. Organic growth was 8 percent (–17). Despite the spread of the Omicron variant of the virus, organic revenue growth increased during the quarter. Volumes were negatively impacted to a greater degree in the fourth quarter of 2020 when stricter restrictions were introduced in large parts of Europe.

Segment USA – revenue

Revenue amounted to SEK 2,587 million (2,184) and real growth was 13 percent (1). Organic growth amounted to 13 percent (0). Operations in the US continued to show good growth. All offerings grew, with volume increases in particular for SafePoint and ATM services. Revenue for the quarter from SafePoint accounted for around 19 percent (18) of the segment's total revenue. Revenue from CMS during the quarter amounted to 34 percent (34) of the segment's total revenue.

Segment Loomis Pay – revenue

Revenue amounted to SEK 5 million (4). In the fourth quarter Loomis Pay was also launched in the Norwegian market through an agreement with Aera. For additional information, see page 8 in the interim report for the third quarter 2021. The offering is currently available in the Danish, Swedish and Norwegian markets, and the ambition is to rollout Loomis Pay in more markets. Dialogue with customers, building up of local sales organizations and continued development of the service offering are prioritized areas. As previously communicated, the target is annual revenue in excess of SEK 3 billion by 2025.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 594 million (467) and the operating margin was 11.2 percent (10.3). The exchange rate effect on operating income during the quarter was approximately SEK 20 million.

Segment Europe – operating income (EBITA)

The operating income (EBITA) amounted to SEK 330 million (144) and the operating margin was 11.9 percent (6.1). Increased revenue combined with the steps that Loomis took early on, to compensate for the temporary reduction in volumes, after the pandemic broke are providing clear results. During the quarter several of Loomis's European companies received government grants for a total of around SEK 3 million (18), mainly to provide relief for furloughed employees.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 367 million (382) and the operating margin was 14.2 percent (17.5). The lower operating margin is above all due to the current challenges in the US labor market. In order for Loomis to maintain a high level of service, the amount of overtime has been increased on a temporary basis, which has resulted in a slightly higher cost level. The operating income in the fourth quarter of 2020 was positively impacted by non-recurring items. Excluding these items, the operating margin amounted to 16.3 percent.

Segment Loomis Pay – operating income (EBITA)

The operating income (EBITA) amounted to SEK –48 million (–30). Loomis Pay is expected to achieve positive operating income in 2023. Until 2023, further investments will be made in product development and other activities relating to Loomis Pay. The assessment is that around SEK 100 million, net per year, will be expensed in the income statement.

Group – other

The operating income (EBIT) for the quarter amounted to SEK 547 million (250), which includes amortization of acquisitionrelated intangible assets of SEK –31 million (–28) and acquisition-related costs of SEK –15 million (–75). The acquisitionrelated costs for the fourth quarter of 2020 mainly consisted of costs relating to the integration of acquired operations in France and Sweden. The previous year also includes items affecting comparability of SEK –114 million, which mainly relate to restructuring costs within the British operations.

Income before tax of SEK 500 million (203) includes a net financial expense, including a loss on monetary net assets, of SEK –48 million (–46).

The tax expense for the quarter amounted to SEK –141 million (–100), which represents a tax rate of 28 percent (49). In the fourth quarter of 2020, tax was affected by acquisition-related costs, which were not deductible for tax purposes, and the pretax profit was, in relative terms, lower than normal in countries with a lower tax rate.

Earnings per share before and after dilution amounted to SEK 4.82 (1.37).

Revenue and earnings

Full year 2021

Group – revenue

Revenue for the period amounted to SEK 19,723 million (18,813). Real growth was 10 percent (–8), of which organic growth was 6 percent (–9). Revenue was negatively affected in the first quarter of the year by the pandemic. In the second quarter volumes began to recover both in the USA and Europe as restrictions were eased. The recovery continued in the third quarter in the USA but came to a standstill in Europe due to the spread of the Delta variant. Revenue developed in a positive direction in the fourth quarter – both in Europe and the USA. Acquisitions in Sweden, Finland and Switzerland also contributed to higher revenue.

Segment Europe – revenue

Revenue for the period amounted to SEK 10,178 million (9,788). Real growth, which amounted to 8 percent (–12), was positively affected by revenue attributable to the acquisitions of Nokas Värdehantering AB in Sweden in June 2020, Automatia in Finland in December 2020 and the cash management operations of Swiss Post in May of 2021. Organic growth was –1 percent (–15).

Segment USA – revenue

Revenue amounted to SEK 9,643 million (9,098) and real growth was 13 percent (–2). Organic growth amounted to 12 percent (–2). Volumes in the US market have recovered gradually as restrictions have been lifted. The negative effects of the spread of the pandemic have had a significantly lower impact in the USA than in Europe. This is mainly due to the structure of the customer portfolios. In the USA a larger share of the revenue than in Europe is not volume dependent. Fixed revenue from, for example, SafePoint and financial institutions is significantly higher in the USA than in Europe. Revenue for the period from SafePoint accounted for around 18 percent (17) of the segment's total revenue. The share of revenue from CMS during the period amounted to 34 percent (34) of the segment's total revenue. See also the comments on page 5.

Segment Loomis Pay – revenue

Revenue amounted to SEK 11 million (7). In the first quarter Loomis Pay was launched in the Swedish market and in the fourth quarter in the Norwegian market. The offering is now available in Denmark, Sweden and Norway. See also the comments on page 5.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 1,961 million (1,775) and the operating margin was 9.9 percent (9.4). The exchange rate effect on operating income during the period was approximately SEK –115 million.

Segment Europe – operating income (EBITA)

The operating income (EBITA) amounted to SEK 846 million (588) and the operating margin was 8.3 percent (6.0). During the first quarter the operating income was negatively affected by the pandemic but in the second quarter volumes began to recover, which had a positive effect on the operating margin. In the third quarter it was primarily the measures implemented in 2020 to adapt costs to lower volumes that yielded results. The positive trend continued in the fourth quarter. During the period several of Loomis's European companies received government grants for a total of around SEK 46 million (147), mainly to provide relief for furloughed employees.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 1,452 million (1,425) and the operating margin was 15.1 percent (15.7). A more profitable customer portfolio, higher revenue from SafePoint and ATMs, and efficiency improvement programs at the branches continued to contribute to good profitability. Profitability in the third and fourth quarters was negatively impacted by the structural challenges in the US labor market. See also the comments on page 5.

Segment Loomis Pay – operating income (EBITA)

The operating income (EBITA) amounted to SEK –149 million (–68). Cost levels are developing according to plan and Loomis Pay is expected to reach positive operating income in 2023. Until 2023, further investments will be made in product development and other activities relating to Loomis Pay. See also the comments on page 5.

Group – other

The operating income (EBIT) for the period amounted to SEK 1,738 million (1,304), which includes amortization of acquisitionrelated intangible assets of SEK –126 million (–109), acquisitionrelated costs of SEK –45 million (–163) and items affecting comparability of SEK –52 million (–200). The item affecting comparability relates to goodwill impairment for an entity within the European segment. The items affecting comparability in the previous year are mainly impairment of goodwill and costs relating to restructuring within Segment Europe. Acquisition-related costs in 2020 are mainly related to acquisitions in France and Sweden.

Income before tax of SEK 1,545 million (1,096) includes a net financial expense of SEK –194 million (–207), including loss of monetary net assets relating to currency adjustment in Argentina.

The tax expense for the quarter amounted to SEK –440 million (–380), which represents a tax rate of 28 percent (35). See also the comments on page 5.

Earnings per share before dilution amounted to SEK 14.74 (9.52) and after dilution SEK 14.73 (9.52).

Cash flow and investments

January – December 2021

Cash flow from operating activities, excluding effects from IFRS 16, amounted to SEK 1,620 million (2,218), equivalent to 83 percent (125) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –1,156 million (–986), which can be compared to depreciation (excluding the IFRS 16 effects) of SEK 1,240 million (1,266). Investments made during the period were mainly in buildings, vehicles, machinery and equipment. Investments in relation to depreciation (excluding IFRS 16) for the period amounted to 0.9 (0.8).

Capital employed and financial position

Capital employed

Total capital employed as of December 31, 2021 amounted to SEK 17,070 million (15,392 as of 31 December 2020), which is equivalent to around 87 percent (82) of revenue. Return on capital employed amounted to 12 percent (12).

Shareholders' equity and financing

Shareholders' equity increased in 2021 by SEK 1,290 million to SEK 10,063 million as of December 31, 2021 (8,773 as of December 31, 2020). The increase is largely explained by translation differences of SEK 981 million, net profit for the period of SEK 1,104 million and actuarial gains of SEK 87 million. The dividend of SEK 451 million and funds used to repurchase shares, SEK 350 million, reduced the shareholders' equity. The return on shareholders' equity was 11 percent (8) and the equity ratio was 37 percent (35).

Net debt amounted to SEK 7,007 million as of December 31, 2021 (6,619 as of December 31, 2020) and the net debt/EBITDA amounted to 1.81 (1.82 as of December 31, 2020).

As of December 31, 2021, total long-term loan facilities amounted to around SEK 8.3 billion and total short-term loan facilities to around SEK 0.4 billion. Unutilized credit facilities amounted to around SEK 4.5 billion on December 31, 2021, of which 1.7 billion was used as back-up for outstanding commercial papers. Available liquid funds amounted to around SEK 2.0 billion (see Note 7).

Other events

Significant events during the period

Loomis's Annual General Meeting was held on May 6, 2021. For decisions made at the 2021 AGM, see the press release from May 6, 2021 which is available on Loomis's website, www.loomis. com.

On August 30 Loomis AB announced that a Danish court had issued an appealable decision against Loomis. As previously reported, in 2018 a competitor filed a lawsuit against Loomis AB's Danish subsidiary relating to alleged competition law infringements in the Danish market. The decision relates to practices applied and agreements entered into between 2014 and 2016. Loomis has appealed the decision since Loomis is of the firm opinion that Loomis has acted in compliance with relevant laws. The court has in its decision not considered the question of damages as this is only expected to be addressed in a separate process after the appeal process has been finalized. The competitor´s total claim is DKK 228 million plus interest. Loomis is not reporting any provision in the balance sheet for this case as the criteria for provisions, under IAS 37, are not considered to be met.

Acquisitions January – December 2021

In March 2021 Loomis AB announced that, through its wholly owned subsidiary Loomis Schweiz AG (Loomis Switzerland), it had entered into an agreement to acquire the operations of limited liability company SecurePost AG (SecurePost), a subsidiary of Die Schweizerische Post AG (Swiss Post). The acquisition was in the form of a transfer of assets and liabilities, whereby Loomis Switzerland acquired all of the operations of SecurePost, including customer contracts, employees and operational assets. New commercial agreements with other legal entities within Swiss Post have been signed and became effective upon closing of the transaction, which took place on May 3, 2021. The enterprise value, i.e. the purchase price payable on a debt-free basis, amounted to approximately CHF 17.5 million.

SecurePost had a nationwide presence in Switzerland and around 440 employees. In 2020 its operations generated revenue of around CHF 66 million. In addition to traditional cash in transit (CIT) and cash management services (CMS), SecurePost brings an installed base of around 1,300 smart safes (SafePoint) which will be integrated into Loomis Switzerland's existing Safe-Point portfolio.

The acquired operations are reported within Segment Europe and consolidated into Loomis's accounts as of May 3, 2021. The acquisition was not subject to any regulatory approvals and the purchase price was paid on closing.

At the time of the acquisition the operating margin (EBITA) was negative. The operating margin was marginally positive for 2021 as some of the anticipated synergies were realized. Once the business is fully integrated, over the next two years, the acquired volumes are expected to reach a profitability, equivalent to a purchase price multiple of around four times EBITA, after synergies. Including transaction and integration costs, the acquisition had a negative impact on Loomis's earnings per share for 2021. As of full-year 2022 the initial negative impact is expected to have been recovered and the effect of the acquisition on Loomis's earnings per share is expected to be positive, compared to the

pre-transaction level. For further information, see Note 5.

Other

On June 3 Loomis announced the appointment of Stellan Abrahamsson as Chief Risk Officer for the Loomis Group and that he will assume the position on March 1, 2022. In addition to extensive experience in financial risk management from various positions in the banking and insurance industries, Stellan has served as Senior Group Supervisor at Finansinspektionen (Sweden's financial supervisory authority). He will be a member of Loomis Group Management and will report to the President and CEO of Loomis Group.

On July 8 it was announced that Loomis AB had signed a fiveyear credit agreement for a total of around EUR 265 million. It is a syndicated, revolving credit facility of USD 140 million, SEK 945 million and EUR 55 million. The loan replaces an existing revolving credit facility maturing in June 2022. The loan may be used to finance working capital and investments, and for other corporate purposes.

On two occasions, July 22 and November 2, it was announced that the Board of Directors of Loomis AB had decided to use the authorization granted by the 2021 Annual General Meeting to repurchase own shares to adapt Loomis's capital structure to the Company's capital requirements. A total of 1,379,985 shares were repurchased for around SEK 350 million. The company's holding of own shares thereby amounts to 1,433,782 shares, as of December 31, 2021. The total amount of shares in the company, including the company's own shares, amount to 75,279,829.

On October 7 it was announced that the following representatives for Loomis AB's shareholders will be members of the Nomination Committee ahead of the 2022 Annual General Meeting: Elisabet Jamal Bergström, appointed by SEB Fonder and chair of the Nomination Committee, Bernard Horn, appointed by Polaris Capital Management, Peter Lundkvist, appointed by Tredje AP-fonden, Jacob Lundgren, appointed by Andra AP-fonden and Robin Nestor, appointed by Lannebo Fonder. The Company's Chairman, Alf Göransson, has convened the Nomination Committee to its first meeting and will also be co-opted to the Committee.

On October 20, Loomis was notified that the Chilean antitrust agency had filed a complaint in Chile against Loomis' Chilean subsidiary and two of Loomis' competitor companies in the Chilean market for involvement in an illegal cartel. The authority has requested that Loomis be ordered to pay a fine of USD 6.4 million. The court proceedings are expected to commence during 2022. Loomis takes all accusations of violations of the law very seriously but will also respond to all allegations. Loomis is not reporting any provision in the balance sheet for this case as the criteria for provisions under IAS 37 are not considered to be met.

On November 24 it was announced that Loomis AB had issued

SEK 1,200 million of sustainability-linked bonds. Loomis has linked the bonds to a sustainability target of a reduction in Loomis's absolute carbon emissions of 20 percent by 2025, compared with the 2019 level. The bonds have a five-year maturity and mature on November 30, 2026. The interest on the bonds is variable and based on three months' Stibor plus 1.35 percentage points. The proceeds will be used for operating activities and to refinance loans. The bonds are listed on Nasdaq Stockholm Sustainable Bond List.

Events after the end of the period

On January 1, 2022, Loomis made a change in the organizational structure whereby the mergers and acquisition (M&A) function was placed under the Chief Financial Officer. In connection with this change, Johannes Bäckman, who was previously Head of M&A and a member of Group Management, left Loomis.

Financial reports

CONSOLIDATED STATEMENT OF INCOME

Note	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Revenue	5,122	4,454	18,908	18,454
Revenue, acquisitions	204	82	815	359
Total revenue 3,4	5,325	4,537	19,723	18,813
Production expenses	–3,800	–3,316	–14,366	–14,015
Gross income	1,525	1,220	5,357	4,798
Selling and administration expenses	–931	–754	–3,396	–3,024
Operating income (EBITA)	594	467	1,961	1,775
Amortization of acquisition-related intangible assets	–31	–28	–126	–109
Acquisition-related costs and revenue 5	–15	–75	–45	–163
Items affecting comparability 6	–	–114	–52	–200
Operating income (EBIT)	547	250	1,738	1,304
Financial income	23	12	71	31
Financial expenses	–53	–50	–209	–211
Loss on monetary net assets/liabilities	–18	–9	–56	–28
Income before taxes	500	203	1,545	1,096
Income tax	–141	–100	–440	–380
Net income for the period1)	359	103	1,104	716
Earnings per share, SEK
Earnings per share before dilution	4.82	1.37	14.74	9.52
Earnings per share after dilution	4.82	1.37	14.73	9.52
Number of shares
Number of outstanding shares (million)	73.8	75.2	73.8	75.2
Average number of outstanding shares before dilu tion (million)	74.3	75.2	74.9	75.2
Average number of outstanding shares after dilution (million)	74.4	75.2	75.0	75.2

1) Net income for the period is entirely attributable to the owners of the Parent Company.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Net income for the period	359	103	1,104	716
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	–19	74	87	–3
Items that may be reclassified to the statement of income
Exchange rate differences	373	–941	981	–1,227
Hedging of net investments, net of tax	–35	100	–90	119
Other comprehensive income and expenses for the period, net after tax	320	–767	978	–1,110
Total comprehensive income for the period1)	678	–664	2,083	–394

1) Total comprehensive income is entirely attributable to the owners of the Parent Company.

CONSOLIDATED BALANCE SHEET

Note	2021	2020
SEK m	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill 5	7,185	6,884
Acquisition-related intangible assets 5	734	486
Other intangible assets	413	269
Buildings and land	970	942
Machinery and equipment	4,463	4,158
Right-of-use assets	3,008	2,645
Contract assets	164	139
Deferred tax assets	449	476
Pension plan assets	225	304
Interest-bearing financial fixed assets	466	361
Other long-term receivables	273	231
Total fixed assets	18,349	16,894
Current assets
Accounts receivable	2,686	2,199
Other current receivables	236	156
Current tax assets	263	290
Prepaid expenses and accrued income	527	488
Interest-bearing financial current assets	13	67
Liquid funds 7	5,156	4,802
Total current assets	8,880	8,002
TOTAL ASSETS	27,228	24,896
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 9
Share capital	376	376
Other capital contributed	4,594	4,594
Other reserves	894	344
Retained earnings including net income for the year	4,199	3,458
Non-controlling interest	–	1
Total shareholders' equity	10,063	8,773
Long-term liabilities
Interest-bearing non-current lease liabilities	2,348	2,105
Loans payable	5,636	5,723
Deferred tax liabilities	436	402
Provisions for claims reserves	451	389
Provisions for pensions and similar commitments	724	834
Other provisions	118	106
Other long-term liabilities	126	110
Total long-term liabilities	9,839	9,669
Current liabilities
Interest-bearing current lease liabilities	701	546
Loans payable	311	199
Accounts payable	687	600
Provisions for claims reserves	231	187
Current tax liabilities	274	184
Liabilities, cash processing operations	2,818	2,468
Accrued expenses and prepaid income	1,689	1,514
Other provisions	45	186
Other current liabilities	569	570
Total current liabilities	7,326	6,454
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	27,228	24,896

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2021	2020
SEK m	Full year	Full year
Opening balance	8,773	9,592
Actuarial gains and losses after tax	87	–3
Exchange rate differences	981	–1,227
Hedging of net investments, net of tax	–90	119
Total other comprehensive income	978	–1,110
Net income for the period	1,104	716
Total comprehensive income1)	2,083	–394
Dividend paid to Parent Company's shareholders	–451	–414
Share-related remuneration	9	–11
Acquisition of own shares	–350	–
Non-controlling interest	–1	0
Closing balance	10,063	8,773

1) Total comprehensive income is entirely attributable to the owners of the Parent Company.

CONSOLIDATED STATEMENT OF CASH FLOWS

	2021	2020	2021	2020
SEK m Note	Quarter 4	Quarter 4	Full year	Full year
Operations
Income before taxes	500	203	1,545	1,096
Depreciation and amortization	521	465	2,027	1,979
Other items not affecting cash flow	52	128	141	390
Financial items received	9	5	29	24
Financial items paid	–58	–59	–223	–231
Income tax paid	–39	–64	–375	–483
Change in accounts receivable	17	97	–341	268
Change in other operating capital employed and other items	–67	–226	–45	–52
Cash flow from operations	933	549	2,758	2,993
Investing activities
Investments in fixed assets	–455	–248	–1,162	–1,014
Disposals of fixed assets	1	–7	6	28
Acquisitions of operations	–68	–545	–230	–853
Cash flow from investing activities	–522	–801	–1,386	–1,839
Financing activities
Dividend paid	–	–414	–451	–414
Acquisition of own shares	–208	–	–350	–
Issuance of bonds	1,200	–	1,200	–
Issuance of commercial papers and other long-term borrowing	–	681	868	2,181
Redemption of commercial papers and other long-term borrowing	–1,477	–	–1,937	–1,968
Change in other interest-bearing net debt	–84	62	–819	–420
Cash flow from financing activities	5 –570 329 –1,489 –159 78 –117 2,143 2,072 2,056 25 –94 71 2,009 2,056 2,009		–621
Cash flow for the period				533
Liquid fund at beginning of the period1)				1,655
Translation differences in liquid funds				–132
Liquid funds at end of period1)				2,056

1) Excluding liquid funds within cash processing operations. See also Note 7 Liquid funds.

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Operating income (EBITA)1)	577	452	1,896	1,718
Depreciation1)	325	288	1,240	1,266
Change in accounts receivable	17	97	–341	268
Change in other operating capital employed and other items1)	–32	–220	–19	–48
Cash flow from operating activities before investments	887	617	2,776	3,204
Investments in fixed assets, net	–454	–255	–1,156	–986
Cash flow from operating activities	433	362	1,620	2,218
Financial items paid and received1)	–27	–32	–104	–109
Income tax paid	–39	–64	–375	–483
Free cash flow	366	266	1,141	1,626
Cash flow effect of items affecting comparability	–3	–38	–76	–39
Acquisition of operations	–68	–545	–230	–853
Acquisition-related costs and revenue, paid and received2)	–8	–69	–73	–141
Dividend paid	–	–414	–451	–414
Acquisition of own shares	–208	–	–350	–
Issuance of bonds	1,200	–	1,200	–
Issuance of commercial papers and other long-term borrowing	–	681	868	2,181
Redemption of commercial papers and other long-term borrowing	–1,477	–	–1,937	–1,968
Change in other interest-bearing net debt1)	10	198	–209	141
Cash flow for the period	–159	78	–117	533

CONSOLIDATED STATEMENT OF CASH FLOWS EXCLUDING THE IFRS 16 IMPACT, ADDITIONAL INFORMATION

1) Excluding the IFRS 16 impact.

2) Refers to the cash flow effect of acquisition-related transaction-, restructuring and integration costs.

Notes

NOTE 1 – ACCOUNTING PRINCIPLES

The Group's financial reports are prepared in accordance with the International Financial Reporting Standards (IAS/IFRS, as adopted by the European Union) issued by the International Accounting Standards Board, and statements issued by the IFRS Interpretations Committee (IFRIC).

This interim report has been prepared according to IAS 34 Interim Financial Reporting. The most important accounting principles according to IFRS, which are the accounting standards used in the preparation of this interim report, are described in the 2020 Annual Report.

New or changed standards and interpretations that entered into force on January 1, 2021 are not expected to have any material effect on the Group's financial statements.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 97–98 and 128 of the 2020 Annual Report. There have been no other significant changes compared to what is described in the Annual Report.

Parent Company – Loomis AB

The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities.

NOTE 2 – RISKS AND UNCERTAINTIES

Risks

Loomis' operations, which include cash in transit, cash management services and international valuables logistics, involve Loomis assuming the customer's risks associated with managing, transporting and storing cash, precious metals and valuables. Loomis has established routines and processes to identify, take action to mitigate and monitor risks. Risks are assessed based on two criteria: the likelihood that an event will occur and the severity of the consequences for the business if the event should occur. There are risks both in terms of circumstances pertaining to Loomis itself and the industry as a whole, as well as risks that are more general in nature. Certain risks are outside of Loomis' control.

Below is a description of some of the most significant risks and uncertainties that may have a negative impact on Loomis' operations, financial position and results, and that should therefore be taken into account when making assessments based on full-year or interim information. The risks described below are not in any particular order of significance.

Operational risks: Operational risks are risks associated with the day-to-day operations and the services offered by the Company

to its customers. Some of the most significant risks Loomis has identified are:

• IT-related risks, such as operational disruptions and extended stoppages of systems linked to operating activities, as well as risks linked to installation of new systems.
• Risk of changed behavioral patterns relating to purchases and payments.
• Customer-related risks, such as the risk of loss of certain customers as well as significant changes in the banking sector.
• Competition risk, such as Loomis' ability to develop competitive offerings.
• Employee risk, such as a high staff turnover.
• Risk of robbery and other criminal activity.
• Risk of internal theft and/or failing cash reconciliation routines at cash centers.
• Risk associated with the implementation of acquisitions, such as difficulties integrating new operations and employees, as well as the anticipated benefits of a certain acquisition not being realized or being only partially realized.

Financial risks: In its operations, Loomis is exposed to risk associated with financial instruments such as liquid funds, accounts receivable, accounts payable and loans. The risks relating to these instruments are mainly:

• Interest rate risk associated with liquid funds and loans.
• Exchange rate risk associated with transactions and translation of shareholder's equity.
• Credit risk pertaining to financial and commercial activities.
• Financing risk relating to the Company's capital requirements.
• Liquidity risk associated with short-term solvency.
• Capital risk pertaining to the capital structure.
• Price risk regarding changes in raw material prices (mainly fuel).

The financial risks are described in more detail in Note 22 in the 2020 Annual Report.

Legal risks: Through its operations Loomis is exposed to legal risks such as:

• Risk of disputes and legal action.
• Risk associated with the application of existing laws, other regulations and changes in legislation.

Factors of uncertainty

The economic trends and the ongoing pandemic during 2021 impacted certain geographic areas negatively and Loomis's revenue and earnings were adversely affected as a result.

Changes in general economic conditions and market trends have various effects on demand for cash handling services. These include the ratio of cash purchases to credit card purchases, changes in consumption levels, the risk of robbery and bad debt losses, and the staff turnover rate.

The preparation of financial reports requires the Board of Directors and Group Management to make estimates and assessments. Estimates and assessments affect both the income statement and the balance sheet as well as the information disclosed on things like contingent liabilities. Actual outcomes may deviate from these estimates and assessments depending on other circumstances or other conditions.

In 2021 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2020 Annual report and where applicable under the heading "Critical estimates and assessments" in

Note 1 of this report, may deviate from the financial assessments and provisions made by management. This may impact the Group's profitability and financial position.

Seasonal variations

Loomis' earnings fluctuate across the seasons and this should be taken into consideration when making assessments based on interim financial information. The primary reason for these seasonal variations is that the need for cash handling services increases during the vacation periods and in connection with public holidays.

NOTE 3 – REVENUE DISTRIBUTION

	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total
SEK m			Quarter 4 2021					Quarter 4 2020
Cash in transit (CIT)	1,601	1,573	–	–	3,174	1,440	1,324	–	–	2,764
Cash management services (CMS)	717	884	–	–	1,601	616	750	–	–	1,366
International	217	107	–	–	324	187	85	–	–	272
Other (FX etc.)	210	12	5	–	226	118	13	4	–	135
Revenue, internal	22	12	–	–33	–	7	12	–	–19	–
Total revenue	2,766	2,587	5	–33	5,325	2,368	2,184	4	–19	4,537
Timing of revenue recognition, external
At a point in time	532	97	2	–	631	380	84	–	–	465
Over time	2,213	2,479	3	–	4,694	1,981	2,089	3	–	4,072
Total external revenue	2,744	2,576	5	–	5,325	2,361	2,173	3	–	4,537

	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total
SEK m			Full year 2021					Full year 2020
Cash in transit (CIT)	5,876	5,922	–	–	11,798	5,923	5,632	–	–	11,555
Cash management services (CMS)	2,601	3,274	–	–	5,875	2,518	3,074	–	–	5,592
International	843	356	–	–	1,199	768	324	–	–	1,092
Other (FX etc.)	792	47	11	–	850	541	27	7	–	574
Revenue, internal	66	43	–	–109	–	38	41	–	–79	–
Total revenue	10,178	9,643	11	–109	19,723	9,788	9,098	7	–79	18,813
Timing of revenue recognition, external
At a point in time	1,969	334	4	–	2,307	1,495	322	1	–	1,817
Over time	8,143	9,266	7	–	17,415	8,255	8,735	6	–	16,996
Total external revenue	10,112	9,600	11	–	19,723	9,750	9,057	7	–	18,813

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
USA	2,587	2,184	9,643	9,098
France	729	696	2,737	2,962
Spain	359	325	1,345	1,327
Switzerland	404	223	1,320	908
UK	260	223	941	1,028
Other countries and eliminations	986	886	3,737	3,490
Total revenue	5,325	4,537	19,723	18,813

NOTE 4 – SEGMENT OVERVIEW

Loomis has operations in a number of countries, with country presidents being responsible for each country. Segment presidents supervise operations in a number of countries and also support the respective country president. The Loomis Pay payment platform was introduced in autumn 2020 and will be rolled out country by country. The Loomis Pay segment is supervised by a segment president. Operating segments are reported in accordance with the internal Loomis reporting, submitted to Loomis' CEO who has been identified as the most senior executive decision-maker within Loomis. Loomis has the following segments: Europe, USA, Loomis Pay and Group-wide functions. Presidents for the segments are responsible for following up the segments' operating income before amortization of acquisition-related intangible assets, acquisition-related costs and revenue and items affecting comparability (EBITA), according to the manner in which Loomis reports its consolidated statement of income. This then forms the basis for how the CEO monitors development, allocates resources etc. Loomis has therefore chosen this structure for its segment reporting.

REVENUE

			2020					2021
SEK m	Q1	Q2	Q3		Q4 Full year	Q1	Q2	Q3		Q4 Full year
Region Europe	2,842	2,052	2,526	2,368	9,788	2,268	2,456	2,688	2,766	10,178
Region USA	2,507	2,206	2,201	2,184	9,098	2,234	2,348	2,473	2,587	9,643
Loomis Pay	–	–	3	4	7	2	1	3	5	11
Group-wide functions1)	–	–	–	–	–	–	–	–	–	–
Eliminations	–20	–20	–20	–19	–79	–21	–25	–29	–33	–109
Total revenue	5,329	4,239	4,709	4,537	18,813	4,483	4,779	5,135	5,325	19,723

OPERATING INCOME (EBITA)

			2020					2021
SEK m	Q1	Q2	Q3		Q4 Full year	Q1	Q2	Q3		Q4 Full year
Region Europe	276	–71	238	144	588	69	148	300	330	846
Region USA	371	332	340	382	1,425	363	363	359	367	1,452
Loomis Pay	–	–16	–22	–30	–68	–32	–33	–36	–48	–149
Group-wide functions1)	–58	–44	–38	–30	–171	–42	–51	–42	–55	–189
Eliminations	–	–	–	–	–	–	–	–	–
Operating income (EBITA)	589	202	517	467	1,775	358	428	581	594	1,961

1) The Group-wide functions segment (formerly segment Other) has been restated for Q2, Q3 and Q4 2020 with amounts relating to Loomis Pay, which is reported as a separate segment as from Q1 2021.

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Full year 2021
Revenue	9,392	9,617	8	–	–109	18,908
Revenue, acquisitions	786	26	3	–	–	815
Total revenue	10,178	9,643	11	–	–109	19,723
Production expenses	–7,697	–6,724	–49	–5	109	–14,366
Gross income	2,481	2,919	–38	–5	–	5,357
Selling and administrative expenses	–1,635	–1,466	–111	–184	–	–3,396
Operating income (EBITA)	846	1,452	–149	–189	–	1,961
Amortization of acquisition-related intangible assets	–113	–12	–1	–	–	–126
Acquisition-related costs	–35	–2	–	–8	–	–45
Items affecting comparability	–52	–	–	–	–	–52
Operating income (EBIT)	646	1,439	–150	–198	–	1,738
Net financial items	–	–	–	–138	–	–138
Loss on monetary net assets/liabilities	–	–	–	–56	–	–56
Income before taxes	646	1,439	–150	–391	–	1,545

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Full year 2020
Revenue	9,446	9,088	–	–	–79	18,454
Revenue, acquisitions	342	10	7	–	–	359
Total revenue	9,788	9,098	7	–	–79	18,813
Production expenses	–7,735	–6,312	–74	–	106	–14,015
Gross income	2,053	2,786	–68	–	27	4,798
Selling and administrative expenses	–1,465	–1,361	0	–171	–27	–3,024
Operating income (EBITA)	588	1,425	–68	–171	–	1,775
Amortization of acquisition-related intangible assets	–89	–20	0	–	–	–109
Acquisition-related costs	–128	–6	–7	–21	–	–163
Items affecting comparability	–197	–	–	–3	–	–200
Operating income (EBIT)	174	1,400	–75	–195	–	1,304
Net financial items	–	–	–	–180	–	–180
Loss on monetary net assets/liabilities	–	–	–	–28	–	–28
Income before taxes	174	1,400	–75	–402	–	1,096

SEGMENT OVERVIEW BALANCE SHEET

	2021	2020
SEK m	Dec 31	Dec 31
Europe
Assets	10,837	10,543
Liabilities	5,621	5,344
USA
Assets	10,874	9,079
Liabilities	1,654	1,494
Other 1)
Assets	5,517	5,274
Liabilities	9,890	9,285
Shareholders' equity	10,063	8,773
Group total
Assets	27,228	24,896
Liabilities	17,165	16,123
Shareholders' equity	10,063	8,773

1) Segment Other includes of Group-wide functions and Loomis Pay.

NOTE 5 – ACQUISITIONS

	Consolidated as of	Segment	Acquired share1) %	Annual revenue SEK m	Number of employees	Purchase price SEK m	Goodwill SEK m	Acquisition related intangible assets SEK m	Other acquired net assets SEK m
Opening balance, January 1, 2021							6,884	486
Acquisition of SecurePost AG4)	May	Europe	n/a	6082)	440	1613)	545)	102	5
Acquisition of ATM Response, Inc.4)	December	USA	n/a	722)	0	1043)	785)	23	3
Total acquisitions January – December 2021							132	125	8
Adjustment of final acquisition analyses6)							–250	236	13
Goodwill impairment within the European segment							–52	–
Amortization of acquisition-related intangible assets							–	–126
Exchange rate differences							471	13
Closing balance December 31, 2021							7,185	734

1) Refers to share of votes. In acquisitions of assets and liabilities, no share of votes is indicated.

2) Estimated annual revenue 2020.

3) The enterprise value, i.e. the purchase price payable on a debt free basis, on the acquisition date amounted to around SEK 161 million for SecurePost AG and to around SEK 104 million for ATM Response, Inc.

4) The acquisition analysis is preliminary and subject to final adjustment no later than one year from the acquisition date.

5) Goodwill arising in connection with the acquisition is primarily attributable to market and synergy effects.

6) Refers to adjustment of the final acquisition analysis from the acquisition of Automatia Pankkiautomaatit Oy as well as from one smaller acquisition completed in 2020.

Acquisition of Automatia Pankkiautomaatit Oy, Finland

Final acquisition analysis from the acquisition of Automatia Pankkiautomaatit OY was established during the first quarter of 2021. The acquisition balance was adjusted in accordance to the table below.

Summarized balance sheet from the acquisition of Automatia Pankkiautomaatit Oy at the date of acquisition, December 2, 2020.

SEK m	Preliminary acquisition balance	Final acquisition balance
Intangible assets	31	267
Tangible assets	94	94
Accounts receivable and other receivables	27	27
Liquid funds	210	210
Interest-bearing liabilities	–15	–15
Accounts payable and other operating liabilities	–49	–49
Deferred tax liability	–	–47
Net identifiable assets and liabilities	297	487
Purchase price paid	545	545
Goodwill	248	58

Acquisition of SecurePost AG, Switzerland

Loomis AB has acquired the operations of SecurePost AG, Switzerland, through the wholly owned subsidiary Loomis Schweiz AG. The acquisition took form in a transfer of assets and liabilities. A preliminary balance sheet is presented in the table below.

Summarized balance sheet from the acquisition of assets and liabilities of SecurePost AG at the date of acquisition, May 3, 2021.

SEK m	Preliminary acquisition balance
Intangible assets	102
Tangible assets	24
Funds in cash processing operations	406
Financing of funds in cash processing operations	–406
Other assets and liabilities	–19
Net identifiable assets and liabilities	107
Purchase price paid	161
Goodwill	54

The acquisition has, as from the time of acquisition up to December 31, 2021, contributed approximately SEK 403 million to total revenue and approximately SEK –9 million to net income. If the acquisition had been completed on January 1, 2021, Loomis estimates the Group's total revenue would have been affected by approximately SEK 592 million and net income by SEK –20 million. Total transaction costs for the acquisition amounted to approximately SEK 7 million and have been recognized on the line Acquisition related costs.

NOTE 6 – ITEMS AFFECTING COMPARABILITY

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Restructuring costs within the European segment	–	–114	–	–162
Goodwill impairment within the European segment	–	–	–52	–46
Provisions/resolutions regarding legal processes	–	–	–	9
Total items affecting comparability	–	–114	–52	–200

NOTE 7 – LIQUID FUNDS

	2021	2020
SEK m	Dec 31	Dec 31
Liquid funds	5,156	4,802
Adjusted for inventory of cash at the cash processing operations	–2,537	–2,134
Adjusted for prepayments from customers	–609	–612
Liquid funds excluding funds for cash processing activities	2,009	2,056

NOTE 8 – TRANSACTIONS WITH RELATED PARTIES

Transactions between Loomis and related parties are described in Note 30 of the 2020 Annual Report. There have been no transactions with related parties during the period that have materially impacted the Company's earnings and financial position.

NOTE 9 – NUMBER OF SHARES AS OF DECEMBER 31, 2021

	No. of shares	No. of votes Quota value		SEK m
Shares	75,279,829	75,279,829	5	376
Total no. of shares	75,279,829	75,279,829		376
Total treasury shares1)	–1,433,782	–1,433,782
Total no. of outstanding shares	73,846,047	73,846,047

1) The number of treasury shares increased during the period by 1,379,985 due to the share repurchase program previously decided upon and communicated.

NOTE 10 – CONTINGENT LIABILITIES, GROUP

	2021	2020
SEK m	Dec 31	Dec 31
Guarantees and other commitments	2,411	2,191

KEY RATIOS

	2021	2020	2021	2020
	Quarter 4	Quarter 4	Full year	Full year
Real growth, %	14.9	–7.4	9.9	–7.8
Organic growth, %	10.5	–8.9	5.6	–9.4
Total growth, %	17.4	–15.1	4.8	–10.6
Gross margin, %	28.6	26.9	27.2	25.5
Selling and administration expenses in % of total revenue	–17.5	–16.6	–17.2	–16.1
Operating margin (EBITA), %	11.2	10.3	9.9	9.4
Tax rate, %	28	49	28	35
Net margin, %	6.7	2.3	5.6	3.8
Return on shareholders' equity, %	11.0	8.2	11.0	8.2
Return on capital employed, %	11.5	11.5	11.5	11.5
Equity ratio, %	37.0	35.2	37.0	35.2
Liquid funds excluding funds within cash processing operations (SEK m)	2,009	2,056	2,009	2,056
Net debt (SEK m)	7,007	6,619	7,007	6,619
Net debt/EBITDA	1.81	1.82	1.81	1.82
Cash flow from operating activities as % of operating income (EBITA)1)	73	78	83	125
Investments in relation to depreciation	0.9	0.6	0.6	0.5
Investments as a % of total revenue	8.5	5.6	5.9	5.2
Earnings per share before dilution, SEK	4.82	1.37	14.74	9.52
Shareholders' equity per share before dilution, SEK	135.35	116.62	135.35	116.62
Cash flow from operating activities per share before dilution, SEK	12.55	7.30	36.79	39.79
Dividend per share, SEK	–	5.50	6.00	5.50
Number of outstanding shares (millions)	73.8	75.2	73.8	75.2
Average number of outstanding shares before dilution (millions)	74.3	75.2	74.9	75.2

1) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2021	2020
SEK m	Full year	Full year
Revenue	574	444
Operating income (EBIT)	281	238
Income after financial items	25	461
Net income for the period	64	400

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The decrease in net income in 2021 is mainly due to a write-down of shares in one subsidiary within the European operations.

PARENT COMPANY SUMMARY BALANCE SHEET

	2021	2020
SEK m	Dec 31	Dec 31
Fixed assets	12,634	12,687
Current assets	1,554	1,318
Total assets	14,188	14,005
Shareholders' equity	4,459	5,147
Liabilities	9,729	8,858
Total shareholders' equity and liabilities	14,188	14,005

The Parent Company's fixed assets consist mainly of shares in subsidiaries and loan receivables from subsidiaries. The liabilities are mainly external liabilities and liabilities to subsidiaries.

CONTINGENT LIABILITIES, PARENT COMPANY

	2021	2020
SEK m	Dec 31	Dec 31
Guarantees and other commitments	5,610	4,585

Alternative performance measures

Use of alternative performance measures

To support Group Management and other stakeholders to analyze the Group's financial performance, Loomis reports certain performance measures that are not defined by IFRS. Group Management believes that this information facilitates analysis of the Group's performance. The Loomis Group primarily uses the following alternative performance measures (see also Definitions on page 24 for a full list of measures):

• Real growth and Organic growth in sales
• Operating income (EBITA) and Operating margin (EBITA), %
• Cash flow from operating activities as % of operating income (EBITA)
• Net debt and Net debt/EBITDA
• Equity ratio, %
• Capital employed and Return on capital employed
• Return on shareholders' equity

Real growth and Organic growth in sales

Since Loomis generates most of its revenue in currencies other than the reporting currency (i.e. Swedish kronor, SEK) and exchange rates have historically proved to be relatively volatile, and since the Group has made a number of acquisitions, sales growth is presented both as exchange rate adjusted and adjusted for both exchange rate fluctuations and effects from acquisitions. This makes it possible to analyze and explain growth excluding exchange rate effects and acquisitions.

	2021	2020
SEK m	Quarter 4 Quarter 4			Growth Growth, %
Recognized revenue	5,325	4,537	788	17.4
Organic growth			474	10.5
Revenue, acquisitions			204	4.5
Real growth			678	14.9
Exchange rate effects			111	2.4
	2021	2020
SEK m	Full year	Full year		Growth Growth, %
Recognized revenue	19,723	18,813	909	4.8
Organic growth			1,045	5.6

Cash flow from operating activities as % of operating income (EBITA)

Revenue, acquisitions 815 4.3 Real growth 1,859 9.9 Exchange rate effects –950 –5.1

Loomis's main measure of cash flow (cash flow from operating activities) focuses on the current cash flow from operating activities based on EBITA adding back amortization/depreciation and the effect of changes in accounts receivable, as well as changes in other working capital and other items. Cash flow from operating activities reflects the cash flow that the operating activities generate before payments of financial items, income tax, items affecting comparability, acquisitions and divestments, as well as dividends and changes in the Group's net debt. Cash flow from operating activities as a percentage of operating income (EBITA) illustrates the cash conversion that Loomis has, i.e. how recognized earnings have resulted in cash flow.

Loomis provides an alternative presentation of cash flow which includes cash flow from operating activities adjusted for the impact of IFRS 16 Leases. This is presented on page 12 of this report.

Operating income (EBITA) and Operating margin (EBITA), %

Loomis's internal control of operating activities is focused on the operating income that is created within and can be impacted by local operating activities. For this reason Loomis has chosen to focus on earnings and margins before interest, taxes, amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability.

	2021	2020	2021	2020
SEK m	Quarter 4	Quarter 4	Full year	Full year
Operating income (EBIT)	547	250	1,738	1,304
Adding back items affecting comparability	–	114	52	200
Adding back acquisition-related costs and revenue	15	75	45	163
Adding back amortization of acquisition-related intangible assets	31	28	126	109
Operating income (EBITA)	594	467	1,961	1,775
Calculation of operating margin (EBITA), %
EBITA	594	467	1,961	1,775
Total revenue	5,325	4,537	19,723	18,813
EBITA/Total revenue, %	11.2	10.3	9.9	9.4

Net debt and Net debt/EBITDA

Net debt is an important concept to understand a company's financing structure and leverage. Net debt is the net of interestbearing liabilities and assets, and is used together with shareholders' equity to finance the Group's capital employed. Loomis excludes funds within cash processing operations and financing of funds within cash processing operations (so-called stock funding) from the definition of net debt. The financial leverage is measured by calculating net debt as percentage of operating income after adding back amortization and depreciation, i.e. net debt/EBITDA.

Reconciliation of Net debt and calculation of Net debt/EBITDA

	2021	2020
SEK m	Dec 31	Dec 31
Short-term loans	311	199
Long-term loans	5,636	5,723
Total loans payable	5,947	5,922
Liquid funds excluding funds in cash processing operations	2,009	2,056
Other interest-bearing assets	479	428
Financial net debt	3,458	3,438
Lease liabilities	3,049	2,651
Pension liabilities, net	499	530
Net debt	7,007	6,619

	2021	2020
SEK m	Full year	Full year
Operating income (EBITA), R12	1,961	1,775
Adding back depreciation/amortization, R12	1,901	1,871
EBITDA, R12	3,862	3,645
Net debt/EBITDA (number of times)	1.81	1.82

Equity ratio, %

The equity ratio is a measure that show the ratio of equity financing in relation to the company's total assets. The measure is used as an indication of financial strength and resilience to losses.

Reconciliation equity ratio, %

	2021	2020
SEK m	Dec 31	Dec 31
Shareholders' equity	10,063	8,773
Total assets	27,228	24,896
Equity ratio, %	37.0	35.2

Capital employed and Return on capital employed, %

Capital employed is a measure of how much capital is tied up in operating activities and that is therefore expected to generate returns in the form of operating income. Capital employed is equivalent to the sum of all financing in the form of net debt and shareholders' equity. Loomis includes funds within cash processing operations and financing of funds within cash processing operations (so-called stock funding) in the definition of capital employed.

Reconciliation of capital employed and return on capital employed, %

	2021	2020
SEK m	Dec 31	Dec 31
Fixed assets
Goodwill	7,185	6,884
Acquisition-related intangible assets	734	486
Other intangible assets	413	269
Buildings and land	970	942
Machinery and equipment	4,463	4,158
Right-of-use assets	3,008	2,645
Other operating fixed assets1)	885	846
Current assets
Accounts receivable	2,686	2,199
Other operating current assets2)	1,025	934
Funds in cash processing operations	3,146	2,746
Long-term liabilities
Deferred tax liability	–436	–402
Provisions for claims reserves	–451	–389
Other provisions	–118	–106
Other long-term liabilities	–126	–110
Current liabilities
Accounts payable	–687	–600
Liabilities in cash processing operations	–2,818	–2,468
Accrued expenses and prepaid income	–1,689	–1,514
Other operating current liabilities3)	–1,119	–1,127
Capital employed	17,070	15,392
Operating income (EBITA), R12	1,961	1,775
Return on capital employed, %	11.5	11.5

1) Includes the items "Contract assets", "Deferred tax assets" and "Other long-term receivables".

2) Includes the items "Other current receivables", "Current tax assets", and "Prepaid expenses and accrued income".

3) Includes the items "Provisions for claims reserves", "Current tax liabilities, "Other provisions" and "Other current liabilities".

Return on shareholders' equity

Return on shareholders' equity is an important concept to understand a company's return on the capital that the shareholders have injected and earned. The return is calculated as earnings for the period (rolling 12 months) as a percent of the closing balance for shareholders' equity.

	2021	2020
SEK m	Full year	Full year
Net income for the period, R12	1,104	716
Shareholders' equity	10,063	8,773
Return on equity, %	11.0	8.2

Definitions

Gross margin, %	Gross income as a percentage of total revenue.
Operating income (EBITA)	Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
Operating margin (EBITA), %	Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability, as a percentage of revenue.
Operating income (EBITDA)	Earnings Before Interest, Taxes, Depreciation, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
Operating income (EBIT)	Earnings Before Interest and Tax.
Items affecting comparability	Items affecting comparability are reported events and transactions whose impact are important to note when the period's results are compared with previous periods, such as capital gains and capital losses from divestments of significant cash generating units, material write-downs or other significant items affecting comparability.
Real growth, %	Increase in revenue for the period, adjusted for changes in exchange rates, as a percentage of the previous year's revenue.
Organic growth, %	Increase in revenue for the period, adjusted for acquisition/divestitures and changes in exchange rates, as a percentage of the previous year's revenue adjusted for divestitures.
Total growth, %	Increase in revenue for the period as a percentage of the previous year's revenue.
Net margin, %	Net income for the period after tax as a percentage of total revenue.
Earnings per share before dilution	Net income for the period in relation to the average number of outstanding shares during the period.
Earnings per share after dilution	Net income for the period in relation to the average number of outstanding shares after dilution during the period.
Cash flow from operations per	Cash flow for the period from operations in relation to the number of shares after dilution.
share
Investments in relation to depreciation	Investments in fixed assets, net, for the period, in relation to depreciation, excluding the IFRS 16 impact.
Investments as a % of total revenue	Investments in fixed assets, net, for the period, as a percentage of total revenue.
Shareholders' equity per share	Shareholders' equity in relation to the number of shares before and after dilution.
Cash flow from operating activities as % of operating income (EBITA)	Operating income, EBITA, (excluding IFRS 16), adjusted for depreciation (excluding IFRS 16), change in accounts receivable and other items (excluding IFRS 16) as well as net investments in fixed assets as a percentage of operating income, EBITA.
Return on equity, %	Net income for the period (rolling 12 months) as a percentage of the closing balance of shareholders' equity.
Return on capital employed, %	Operating income (EBITA) (rolling 12 months) as a percentage of the closing balance of capital employed.
Equity ratio, %	Shareholders' equity as a percentage of total assets.
Capital employed	Shareholders' equity with the addition of net debt.
Net debt	Interest-bearing liabilities less interest-bearing assets and liquid funds excluding funds for cash processing activities.
R12	Rolling 12 months.
n/a	Not applicable.

Stockholm, February 3, 2022

Patrik Andersson President and CEO

Review Report

Introduction

We have reviewed the interim report for Loomis AB (publ) for the period January 1 – December 31, 2021. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information 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 has a

different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

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

Stockholm, February 3, 2022

Deloitte AB

Peter Ekberg Authorized Public Accountant

Loomis in brief

Vision

Managing cash in society.

Financial targets 2018–2021

• Dividend: 40–60 percent of net income.

Sustainability targets

• Zero workplace injuries.

• Decrease carbon emission by 30 percent by 2021.
• Decrease plastic volumes by 30 percent by 2021.

Operations

Loomis offers secure and effective comprehensive solutions for the distribution, handling, storage and recycling of cash and other valuables. Loomis' customers are banks, retailers and other operators. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employed around 24,000 people at the end of 2021 and had revenue in 2021 of approximately SEK 20 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.

Telephone conference and audio cast

A telephone conference will be held on February 3, 2022 at 09:00 a.m. (CET).

To follow the conference call via telephone and to participate in the question and answer session, please call: UK: + 44 333 300 9268 USA: + 1 631 913 1422, PIN: 14006042# Sweden: + 46 8 566 427 04

The audio cast can be followed at our website www.loomis.com (follow "Financial presentation").

A recorded version of the audio cast will be available at www.loomis.com (follow "Financial presentation") after the telephone conference.

Future reporting

Interim Report	January – March	May 4, 2022
Interim Report	January – June	July 22, 2022
Interim Report	January – September	October 28, 2022

Loomis' Annual Report for 2021 will be available at www.loomis.com in April 2022. Loomis' Annual General meeting will be held on May 4, 2022 in Stockholm.

For further information

Anders Haker, Chief Investor Relations Officer +1 281 795 8580, e-mail: anders.haker@loomis.com Refer also to the Loomis website: www.loomis.com

This information is information that Loomis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 a.m. (CET) on February 3, 2022.

Loomis AB (publ.) Corporate Identity Number 556620-8095, PO Box 702, SE-101 33 Stockholm, Sweden. Telephone: +46 8-522 920 00, www.loomis.com