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Loomis Earnings Release 2022
2940_iss_2022-03-23_ee7233da-0b0c-4c82-80b5-97c899368748.pdf
Earnings Release
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Press release
Loomis announces new targets and presents strategy for 2022 – 2024
At the Capital Markets Day, which is held in a digital format today, Loomis announces new targets and presents an updated strategy under the heading "At the Centre of the Payment Ecosystem".
The strategy means that Loomis will move further up the value chain by: 1) accelerating the core business, 2) increased focus on services with recurring revenue, 3) combining physical and digital customer offerings, 4) being the leading player in the market within ESG and 5) continuing to develop the Loomis model.
Loomis' dividend policy, stating that 40 – 60 percent of annual net earnings should be distributed to the shareholders, is unchanged.
The targets in brief for the strategy period
Financial targets
- Revenue: Average real growth of 5-8 percent per year
- Operating margin (EBITA): 12-14 percent for 2024
Sustainability targets
- Reduced carbon dioxide emissions by 15 percent compared to 2019. Refers to scope 1 & 2 combined
- Reduction of the work injury rate by 15 percent compared to 2021
Revenue
No specific revenue targets are set for the various business lines, and previously communicated ambitions regarding ATMs, physical foreign exchange (FX) and Loomis Pay should be seen as an integral part of the real growth of 5-8 percent per year. Loomis prioritizes growth in four areas where the potential is high:
- services with recurring revenue. This primarily applies to SafePoint, both in the USA and in Europe, as well as expanded service offerings for ATMs. The work regarding ATMs is conducted through separate centers of excellence in Europe and in the USA
- continued expansion of Loomis Pay in existing markets. Loomis Pay will be rolled out in at least one market in continental Europe in 2022
- continued acquisitions within the core business in existing markets and acquisitions of relevant technology that support Loomis' service offerings
- continued efforts to drive outsourcing of cash management services (CMS) in all markets
Operating margin
Loomis' margin expansion is based on:
• faster rate of increase in revenue from services with higher operating margin, such as SafePoint and ATMs, but CMS and FX will also contribute
Loomis offers safe and effective comprehensive solutions for the distribution, handling, storage and recycling of cash and other valuables. Loomis customers are banks, merchants and other operators. Loomis operates through an international network of more than 400 branches in more than 20 countries. Loomis employs around 24,000 people and had revenue in 2021 of approximately SEK 19.7 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.
- lower cost base in Europe and in the US through the measures implemented following the pandemic in 2020 and 2021
- continued efficiency work at Loomis' more than 400 branches
- continued development of pricing models
Reduced carbon dioxide emissions by 15 percent compared to 2019 for scope 1 & 2
Carbon dioxide emissions are reduced by:
- increasing the proportion of vehicles powered by electricity
- increased investments in technical tools that contribute to more environmentally friendly driving behavior
- increased proportion of fossil-free fuel
- a gradual transition to lighter vehicles
Reduction of the work injury rate by 15 percent compared to 2021
The number of lost working days is reduced by:
- education
- investments in technical tools that contribute to a safer work environment
"Loomis has a strong position in the international market and we will further strengthen it. We are at the forefront of technical development. Our customers to a large extent demand even more advanced technical solutions and this opens up good opportunities for our advanced and environmentally friendly services such as SafePoint and Loomis Pay", says Loomis' President and CEO Patrik Andersson.
This press release is also available on the company's website, www.loomis.com.
March 23, 2022
For further information, please contact:
| Patrik Andersson | Kristian Ackeby | Anders Haker |
|---|---|---|
| President and CEO | Chief Financial Officer | Chief Investor Relations Officer |
| Mobile: +46 76 111 34 00 | Mobile: +46 70 569 69 98 | Mobile: +1 281 795 8580 |
| E-mail: [email protected] | [email protected] | [email protected] |
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 persons set out above, at 8.30 a.m. CET on March 23, 2022.