Loomis — Earnings Release 2023

Jul 21, 2023

Historically high revenues and strong operating income

• Revenue for the second quarter was SEK 7,072 million (6,217). Real growth was 8.3 percent (17.7) of which organic growth was 7.7 percent (16.1).
• Operating income (EBITA) for the quarter was SEK 752 million (620) and operating margin (EBITA) was 10.6 percent (10.0).
• Operating income (EBIT) before items affecting comparability for the quarter was SEK 709 million (539) and operating margin (EBIT) before items affecting comparability was 10.0 percent (8.7).
• Income before taxes for the quarter was SEK 552 million (438) and net income was SEK 357 million (296).
• Earnings per share before dilution for the quarter were SEK 5.02 (4.02) and after dilution 5.01 (4.02).
• Cash flow from operating activities amounted to SEK 273 million (644) in the quarter, equivalent to 36 percent (104) of operating income (EBITA).
• Loomis takes strategic step by entering into an agreement to acquire Cima S.p.A.

2023	2022		2023	2022		2022
Quarter 2	Quarter 2	Change (%)	Six months	Six months	Change (%)	Full year
7,072	6,217	13.8	13,884	11,844	17.2	25,315
479	769	7.7	1,141	1,424	9.6	2,847
38	76	0.6	60	245	0.5	285
339	593	5.4	839	913	7.1	2,460
855	1,438		2,040	2,582		5,592
752	620		1,469	1,136		2,735
10.6	10.0		10.6	9.6		10.8
709	539		1,376	1,002		2,555
10.0	8.7		9.9	8.5		10.1
552	438		1,095	844		2,172
357	296		760	591		1,602
5.02	4.02		10.66	8.02		21.93
35	32		31	30		26
273	644		992	821		2,316
36	104		68	72		85

KEY RATIOS

Explanation and reconciliation of alternative performance measures can be found on pages 21–22 of this report and under Definitions on page 23.

Continued strong demand

For the first quarter ever, Loomis reported revenues above SEK 7 billion, with organic growth for all segments. The operating profit (EBITA) increased to SEK 752 million (620), corresponding to a margin of 10.6 percent (10.0). The margin was positively impacted by increased volumes, higher efficiencies and price adjustments but was offset by continued inflationary pressure and recruitment-related costs.

Organic growth across segments

Segment Europe and Latin America delivered a quarter with high revenues and achieved a strong organic growth of 8.3 percent. The operating profit increased to SEK 353 million (309), corresponding to a margin of 10.4 percent (10.3). We have been aiming to compensate the higher cost base we have experienced over the latest year through price increases and efficiencies and while we are seeing the effect come through, we are still experiencing the time lag that comes from continued inflation.

Segment USA continued to grow at a strong rate, with an organic growth of 6.6 percent for the quarter. Revenues reached a record high SEK 3,697 million (3,246) with growth across all business lines. Our automated solutions with Safe-Point continue to take market share in the US and recorded the tenth consecutive quarter in a row with double-digit organic growth. We have continuously increased the work force to support our growth, and the related costs for recruitment and

training impacted the margin for the quarter. The operating profit increased to SEK 515 million (429), corresponding to a margin of 13.9 percent (13.2).

When it comes to Loomis Pay, we are now seeing that our efforts in the recent quarters are paying off in terms of both increased revenues and transaction volumes. Revenues in the second quarter increased markedly in all three markets, both sequentially and compared to the previous year. Notably transaction volumes increased by 74 percent in the second quarter compared to the previous year and 59 percent compared to the previous quarter, and we recorded SEK 1.1 billion in transaction volumes. I am pleased to share that we have more than doubled the number of live and transacting customers since the beginning of the year.

Exciting journey ahead

We have taken a significant step in expanding our offer of automated solutions by entering into an agreement to acquire Cima S.p.A, an Italian-based developer of automated cash handling devices that recognize, count, process, validate and secure cash notes and coins. Cima brings a proven track record of innovation and R&D within cash automation and perfectly complements Loomis in terms of technological solutions. The combination of Cima's expertise and know-how with our core operations and digital offer secures our ability to innovate and continue to deliver customer-oriented solutions at the forefront. Furthermore, we will expand on Cima's geographical footprint and gain access to new markets. I look forward to welcoming the Cima team into the Loomis Group and embarking on this exciting journey of growth and innovation.

Sustainability linked to business needs

In line with our ambitions to be the most sustainable business partner, we are constantly looking for new innovations – both large and small – that we can implement to minimize our environmental impact. One such initiative is the implementation

+7.7% Organic growth Q2

+21% EBITA growth Q2

of solar mats on our vehicles to maintain the health of our vehicle battery systems. I am proud to share that we have been awarded the Environmental Project of the Year Award from the British Security Industry Association for this innovation. It is truly a strength that within our decentralized organization we are finding local initiatives to reduce our carbon footprint that are also interlinked with the business needs.

Ensuring an inclusive society

I strongly believe that everyone should be included in the payment ecosystem – using whichever payment method they wish or are able to use. Access to cash is crucial for many groups in society. At Loomis we provide a vital service by ensuring cash accessibility, therefore contributing to equality and inclusion. In June the European Commission adopted a legislative proposal on the legal tender of euro banknotes and coins, to safeguard the role of Euro cash. This proposal clarifies that cash must be accepted as a means of payment and accessible for citizens and businesses. We of course welcome this initiative and remain dedicated to supporting central banks in ensuring that cash is readily available and that payment flows are functioning in society.

Stockholm, 21 July 2023

Aritz Larrea President and CEO

Revenue and income – Group

Quarter 2 2023

Revenue for the quarter amounted to record high SEK 7,072 million (6,217). Real growth was 8.3 percent (17.7), of which organic growth was 7.7 percent (16.1). Revenues increased across all segments. Revenues also increased for all business lines with notable continued growth for SafePoint volumes as well as the foreign exchange (FXGS) business.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 35 percent (34) of the Group's total revenue, of which revenues from SafePoint were 14 percent (13) of the total revenue and the corresponding proportion for ATMs was 21 percent (21).

The operating income (EBITA) amounted to SEK 752 million (620) and the operating margin was 10.6 percent (10.0). The exchange rate effect on operating income during the quarter was approximately SEK 46 million (80).

For segment information, see pages 4–7.

The operating income (EBIT) before items affecting comparability for the quarter amounted to SEK 709 million (539), which includes amortization of acquisition related intangible assets of SEK –38 million (–34) and acquisition-related costs of SEK –5 million (–46). The operating income included items affecting comparability amounting to SEK –13 million related to restructuring in segment Europe and Latin America. The previous year included items affecting comparability of SEK −23 million.

Net financial expenses increased to SEK –144 million (–78) in the quarter, mainly due to higher interest rates. The net financial expenses included losses on monetary net assets amounting to –28 million (–41) originating from Turkey and Argentina.

Income before tax amounted to SEK 552 million (438).

The tax expense for the quarter was SEK –195 million (–142).

Earnings per share before dilution amounted to 5.02 (4.02).

Six months 2023

Revenue for the period amounted to SEK 13,884 million (11,844). Real growth was 10.1 percent (18.0), of which organic growth was 9.6 percent (15.4). Revenues increased across all segments. Revenues also increased for all business lines with notable continued growth for Safe-Point volumes as well as the foreign exchange (FXGS) business.

Recurring revenue increased in the period. Revenue from SafePoint and ATM amounted to 35 percent (34) of the Group's total revenue, of which revenues from SafePoint were 14 percent (13) of the total revenue and the corresponding proportion for ATMs was 21 percent (21).

The operating income (EBITA) amounted to SEK 1,469 million (1,136) and the operating margin was 10.6 percent (9.6). The exchange rate effect on operating income during the period was approximately SEK 102 million (116).

For segment information, see pages 4–7.

The operating income (EBIT) before items affecting comparability for the period amounted to SEK 1,376 million (1,002), which includes amortization of acquisition related intangible assets of SEK –72 million (–69) and acquisitionrelated costs of SEK –20 million (–65). The operating income included items affecting comparability amounting to SEK –24 million related to restructuring in segment Europe and Latin America. The previous year included items affecting comparability of SEK −23 million.

Net financial expenses increased to SEK –257 million (–134) in the period, mainly due to higher interest rates. The net financial expenses included losses on monetary net assets amounting to –51 million (–64) originating from Turkey and Argentina.

Income before tax amounted to SEK 1,095 million (844).

The tax expense for the first six months was SEK –335 million (–253).

Earnings per share before dilution amounted to 10.66 (8.02).

Revenue, SEK billion

Operating margin (EBITA), %

Operating margin (EBITA) rolling 12 months

Revenue by business line, Q2

Revenue by business line, R12

The segments

Revenue, operating income and number of full-time employees

EUROPE AND LATIN AMERICA

2023	2022	2023	2022		2022
Quarter 2	Quarter 2	Six months	Six months	R12	Full year
3,396	3,007	6,646	5,803	13,097	12,255
12.9	22.5	14.5	22.9	16.7	20.4
8.3	16.8	9.6	15.8	10.5	14.3
–	2.1	–	4.3	0.1	2.0
4.6	3.5	4.9	2.8	6.1	4.1
8.3	18.9	9.6	20.1	10.6	16.3
353	309	662	551	1,428	1,317
10.4	10.3	10.0	9.5	10.9	10.7
14,500	14,200	14,400	14,100	14,700	14,300

USA

	2023	2022	2023	2022		2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Revenue	3,697	3,246	7,295	6,108	14,398	13,211
Sales growth, %	13.9	38.3	19.4	33.3	29.4	37.0
-of which organic growth, %	6.6	15.7	9.5	15.3	12.0	15.0
-of which acquisitions / divestments, %	1.2	1.0	1.0	0.9	0.9	0.9
-of which exchange rate effects, %	6.1	21.6	9.0	17.0	16.6	21.1
Real growth, %	7.8	16.7	10.4	16.3	12.9	15.9
Operating income (EBITA)	515	429	1,015	800	2,037	1,822
Operating margin, %	13.9	13.2	13.9	13.1	14.1	13.8
Number of full-time employees	10,900	10,500	10,900	10,500	10,700	10,500

LOOMIS PAY

	2023	2022	2023	2022		2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Revenue	12	5	19	9	31	21
Transaction volume	1,068	614	1,740	969	3,094	2,322
Sales growth, %	115	355	111	199	98	92
-of which organic growth, %	109	342	105	191	92	86
-of which acquisitions / divestments, %	–	–	–	–	–	–
-of which exchange rate effects, %	6	13	6	7	6	6
Real growth, %	109	342	105	191	92	86
Operating income (EBITA)	–53	–52	–107	–101	–184	–178
Operating margin, %	n/a	n/a	n/a	n/a	n/a	n/a

Revenue and income – Europe and Latin America

Quarter 2 2023

Revenue for the quarter amounted to SEK 3,396 million (3,007). Real growth was 8.3 percent (18.9). Organic growth was 8.3 percent (16.8), where both volume and price contributed to the growth.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 27 percent (25) of the segment's total revenue, of which revenue from SafePoint amounted to 7 percent (7) of the revenue. The corresponding proportion for ATMs was 20 percent (18). The FXGS business line grew a reported 45 percent in the quarter.

The operating income (EBITA) amounted to SEK 353 million (309) and the operating margin increased slightly to 10.4 percent (10.3). The margin was positively impacted by increased volumes, higher efficiencies and price adjustments but was offset by continued inflationary pressure.

The announced restructuring plan is progressing as planned. Related costs in the quarter amounted to SEK −13 million.

Six months 2023

Revenue for the period amounted to SEK 6,646 million (5,803). Real growth was 9.6 percent (20.1). Organic growth was 9.6 percent (15.8), where both volume and price contributed to the growth.

Recurring revenue increased in the period. Revenue from SafePoint and ATM amounted to 27 percent (25) of the segment's total revenue, of which revenue from SafePoint amounted to 7 percent (7) of the revenue. The corresponding proportion for ATMs was 20 percent (18). The FXGS business line grew a reported 40 percent in the period.

The operating income (EBITA) amounted to SEK 662 million (551) and the operating margin increased to 10.0 percent (9.5). The margin was positively impacted by increased volumes, higher efficiencies and price adjustments but was offset by continued inflationary pressure.

During the first quarter of 2023, a restructuring plan was initiated. The total expected restructuring costs to be taken during 2023 are approximately EUR −5 million, of which SEK −24 million were taken in the first six months. The majority of the restructuring is related to operations in Germany.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q2

Revenue by business line, R12

Revenue and income – USA

Quarter 2 2023

Revenue amounted to SEK 3,697 million (3,246) and real growth was 7.8 percent (16.7). Organic growth amounted to 6.6 percent (15.7). Similar to previous quarters, the operations in USA continued to show good volume growth. Revenue from all offerings grew with high growth for SafePoint in particular. Increased prices also contributed to the organic growth. The acquisition of AIB Express Logistics, which was closed during February, contributed to 1.2 percent of the total growth.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 43 percent (42) of the segment's total revenue, of which revenue from SafePoint accounted for 21 percent (18) of the segment's revenue, and ATMs accounted for 23 percent (23).

The operating income (EBITA) amounted to SEK 515 million (429) and the operating margin was 13.9 percent (13.2). The margin was positively affected by the increased volumes, but negatively by overtime as well as recruitment and training-related costs.

Six months 2023

Revenue amounted to SEK 7,295 million (6,108) and real growth was 10.4 percent (16.3). Organic growth amounted to 9.5 percent (15.3). Similar to previous quarters, the operations in USA continued to show good volume growth. Revenue from all offerings grew with high growth for SafePoint in particular. Increased prices also contributed to the organic growth. The acquisition of AIB Express Logistics, which was closed during February, contributed to 1.0 percent of the total growth.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 43 percent (42) of the segment's total revenue, of which revenue from SafePoint accounted for 20 percent (19) of the segment's revenue, and ATMs accounted for 23 percent (24).

The operating income (EBITA) amounted to SEK 1,015 million (800) and the operating margin was 13.9 percent (13.1). The margin was positively affected by the increased volumes, but negatively by overtime as well as recruitment and training-related costs.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q2

Revenue by business line, R12

Revenue and income – Loomis Pay

Quarter 2 2023

Revenue amounted to SEK 12 million (5) in the second quarter, with a strong organic growth of 109 percent compared to the previous year. The sequential growth, compared to the previous quarter, was also strong across all three markets.

Transaction volumes in the quarter grew 74 percent compared to the previous year and 59 percent compared to the previous quarter. Transaction volumes amounted to SEK 1,068 million for the second quarter.

The operating income (EBITA) amounted to SEK –53 million (–52).

Six months 2023

Revenue amounted to SEK 19 million (9) in the period, and the organic growth amounted to 105 percent compared to the same period in the previous year. Transaction volumes in the period grew 80 percent compared to the previous year.

The near-term priority for Loomis Pay is to focus on growing the business in existing markets and further increase sales.

The operating income (EBITA) amounted to SEK –107 million (–101).

Revenue, SEK million

Transaction volumes, SEK million

Sustainability

Sustainability is an integrated part of Loomis' business. The sustainability agenda rests on three sustainability dimensions: environment, social, and governance - with the short-term focus foremost on reducing the carbon footprint, work-related injuries and being an inclusive company and responsible business partner.

In line with the ambition to be the most sustainable business partner, Loomis is constantly looking for new innovations to implement – both large and small – that not only minimize the environmental impact, but which are also beneficial to the business.

One such initiative is the use of ultra thin solar mats on our operational vehicles to maintain the health of the vehicle battery systems. This solution has been installed in 30 vehicles so far and is now standard in build for new vehicles in the UK.

In June, Loomis was awarded the Environmental Project of the Year Award from the British Security Industry Association

for this innovation. At a local and global level, Loomis will continue to partner with suppliers to find innovative solutions to lead the transformation of the industry.

As announced in February, Loomis has ordered 150 electric armored vehicles (EVs) for the US market. The first vehicles have been delivered and the EVs are expected to be entered into operations gradually from the third quarter.

Carbon emissions, tCO2e Scope1

Cash flow and investments

January – June 2023

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 992 million (821), equivalent to 68 percent (72) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –867 million (–626), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 703 million (669). Investments made during the period were mainly in buildings, vehicles, machinery and equipment. Investments in relation to depreciation (including IFRS 16) for the period amounted to 0.7 (0.6).

Capital employed and financial position

Capital employed

The total capital employed as of June 30, 2023 amounted to SEK 21,694 million (19,948 as of December 31, 2022), which is equivalent to approximately 79 percent (86) of revenue. Return on capital employed amounted to 15.1 percent (13.3).

Shareholders' equity and financing

Shareholders' equity increased during the year by SEK 674 million, amounting to SEK 13,139 million as of June 30, 2023 (12,465 as of December 31, 2022). The increase is largely explained by translation differences of SEK 855 million, net profit for the period of SEK 760 million, payment of dividend of SEK 853 million and share repurchase of SEK 200 million. The return on shareholders' equity was 14.0 percent (12.2) and the equity ratio was 35.0 percent (37.6).

Net debt amounted to SEK 8,555 million as of June 30, 2023 (7,484 as of December 31, 2022) and net debt/EBITDA amounted to 1.55 (1.50 as of December 31, 2022).

As of June 30, 2023 the long-term loan facilities totaled SEK 10.5 billion and the short-term loan facilities totaled SEK 1.8 billion. Unutilized loan facilities amounted to SEK 6.2 billion, of which SEK 1.2 billion are used as back-up for outstanding commercial papers. Available liquid funds amounted to approximately SEK 2.6 billion (see Note 7).

Other events

Significant events during the period

On January 27 it was announced that Loomis AB has signed a three-year agreement for a syndicated, revolving credit facility for the amount of EUR 150 million. The facility replaces an existing revolving credit facility maturing in January 2024 and can be extended for an additional one plus one year. The facility can be used for financing of working capital, investments and other general corporate purposes.

On February 1 it was announced that Loomis signed an agreement with Xos, Inc for the delivery of 150 electric armored vehicles for the US market. The ordered vehicles will be delivered and entered into operations gradually during the year from the second half of 2023.

On March 24 it was announced that Kristian Ackeby has decided to resign from his role as Loomis' Chief Financial Officer and member of Group Management for a new assignment outside of Loomis. Kristian Ackeby continues in his current role until a successor is in place, however, will leave his role not later than during the third quarter 2023.

On March 30 it was announced that Loomis AB has signed an agreement for a syndicated, Term Loan facility of EUR 90 million. The facility has a tenor of up to two years. The facility can be used for financing of working capital, investments, and other general corporate purposes.

Loomis AB has through the repurchase program that was resolved and communicated on February 1, 2023 repurchased 586,000 shares. Loomis AB's holding of own shares thereby amounts to 4,208,782 shares, corresponding to 5.59% of the outstanding shares in the company.

On May 4 2023, Loomis AB held its Annual General Meeting. For information on the decisions made by the Annual General Meeting please refer to the Annual General Meeting section on Loomis' website, www.loomis.com.

On May 12 it was announced that Loomis AB had issued an additional SEK 1,000 million of sustainability-linked bonds and repurchased SEK 174 million of bonds originally maturing in September 2023. The bonds were issued with four-year maturity with maturity date on the 19th of May 2027. SEK 650 million of the new bonds have a floating interest rate of 3-month Stibor plus 1.95 percentage points and SEK 350 million have a yearly fixed rate coupon at 4.923%. The proceeds will be used for general corporate purposes and to refinance loans. The new bonds were listed on Nasdaq Stockholm Sustainable Bond List.

Other events during the period

On 9 January Erik Zingmark assumed the position as Head of Loomis Pay, succeeding Kristoffer Labuc who left Loomis to pursue his career outside the group. Erik brings extensive experience from the financial industry, most recently from the position as Head of Transaction Banking at Nordea.

In January Loomis signed an agreement to acquire AIB Express Logistics, a third-party shipping provider of valuables. The company, which is primarily based in the US, had a total revenue of more than SEK 100 million in 2021 and approximately 20 employees. Closing was completed in February 2023. The acquired business is a part of the Segment USA.

Loomis has signed an agreement to acquire the remaining shares of MoMo Holding, a Spanish-based fintech company with an e-money license. The completion of the acquisition is subject to customary regulatory approval. The acquisition will further complement Loomis' digital capabilities and offer for automated solutions.

As of June 1, Erik Åslund is appointed Chief Legal Officer and member of Group Management. Erik was previously Loomis AB's Head of Legal, reporting to the Chief Financial Officer. Sara Björkman, Chief Compliance Officer and member of Group Management, has chosen to resign and will during the third quarter leave Loomis for a position outside the Loomis Group. Loomis will in connection with her departure make a change to the organizational structure whereby the compliance function is placed under the Chief Legal Officer.

Loomis has received a claim relating to the acquisition of Loomis' Turkish subsidiary, that was completed in 2015. Loomis is of the opinion that it has acted in compliance with the share purchase agreement and is disputing the claim. 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.

Significant events after the end of the period

On July 18 it was announced that Loomis AB has entered into an agreement to acquire 100 percent of Cima S.p.A. from Milano Investments S.p.A. Cima is a technology-driven developer of automated cash handling devices that recognize, count, process, secure cash notes and coins. The company has extensive experience within cash handling automation with a strong focus on R&D. The Italian-based Group has a global customer base and approximately 120 employees. The Group has a track record of strong financial performance and in 2022 had revenue of approximately EUR 66 million.

The initial purchase price amounts to EUR 132 million on a cash and debt free basis, with a potential earn-out of maximum EUR 17.5 million based on the EBITDA outcome for the financial year of 2024. The acquisition of Cima strengthens Loomis' offer of automated solutions in line with the communicated strategy to add new technology and competencies to complement the existing business. The business will be reported within the Safe-Point (Automated Solutions) business line and consolidated into Loomis as of closing of the transaction. Closing is expected during the fourth quarter.

Financial reports

CONSOLIDATED INCOME STATEMENT

Note	2023	2022	2023	2022	2023	2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Revenue 3,4	7,072	6,217	13,884	11,844	27,354	25,315
Production expenses	–5,378	–4,579	–10,384	–8,761	–20,163	–18,540
Gross income	1,694	1,638	3,500	3,083	7,191	6,775
Selling and administration expenses	–980	–1,052	–2,103	–2,016	–4,239	–4,152
Other income and expenses	–6	–46	–21	–65	–23	–67
Items affecting comparability 6	–13	–23	–24	–23	–24	–23
Operating income (EBIT)	696	516	1,352	979	2,905	2,532
Financial income	37	36	72	60	150	137
Financial expenses	–153	–73	–278	–130	–500	–351
Loss on monetary net assets/liabilities	–28	–41	–51	–64	–133	–146
Income before taxes	552	438	1,095	844	2,422	2,172
Income tax	–195	–142	–335	–253	–651	–570
Net income for the period1)	357	296	760	591	1,771	1,602
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses, net of tax	121	237	121	442	–321	189
Items that may be reclassified to the statement of income
Translation differences	765	1,237	855	1,570	–624	2,004
Revaluation of participation in associated companies	–	10	–63	10	–136	11
Hedging of net investments, net of tax	–	–95	–	–119	119	–189
Other comprehensive income and expenses for the period, net after tax	886	1,390	913	1,904	–963	2,015
Total comprehensive income and expenses for
the period2)	1,242	1,685	1,673	2,495	808	3,617
Earnings per share, SEK
Earnings per share before dilution	5.02	4.02	10.66	8.02	24.64	21.93
Earnings per share after dilution	5.01	4.02	10.65	8.02	24.61	21.92
Number of shares
Number of outstanding shares (million)	71.1	73.0	71.1	73.0	71.1	71.7
Average number of outstanding shares before dilution (million)	71.1	73.5	71.3	73.7	71.9	73.0
Average number of outstanding shares after dilution (million)	71.2	73.6	71.4	73.7	71.9	73.1

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

2) Comprehensive income is entirely attributable to the owners of the Parent company.

CONSOLIDATED BALANCE SHEET

Note	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
ASSETS
Fixed assets
Goodwill	8,737	7,884	8,075
Intangible assets	1,103	1,072	1,021
Buildings and land	1,199	1,084	1,139
Machinery and equipment	5,452	4,848	5,018
Right-of-use assets	4,116	3,563	3,763
Contract assets	284	201	254
Deferred tax assets	351	400	388
Pension plan assets	359	391	245
Interest-bearing financial fixed assets	359	629	557
Other long-term receivables	366	351	327
Total fixed assets	22,327	20,425	20,788
Current assets
Accounts receivable	3,517	3,290	3,311
Other current receivables	386	316	309
Current tax assets	351	313	303
Prepaid expenses and accrued income	1,192	967	851
Interest-bearing financial current assets	353	50	14
Liquid funds 7	9,397	5,817	6,203
Total current assets	15,197	10,753	10,992
TOTAL ASSETS	37,524	31,177	31,780
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 9
Share capital	376	376	376
Other capital contributed	4,594	4,594	4,594
Other reserves	1,977	2,152	2,122
Retained earnings including net income for the year	6,191	4,616	5,372
Non-controlling interest	–	1	–
Total shareholders' equity	13,139	11,737	12,465
Long-term liabilities
Interest-bearing non-current lease liabilities	3,277	2,831	2,987
Loans payable	5,784	6,595	4,270
Deferred tax liabilities	482	506	487
Provisions for claims reserves	565	504	472
Provisions for pensions and similar commitments	509	361	560
Other provisions	144	167	144
Other long-term liabilities	249	185	162
Total long-term liabilities	11,010	11,148	9,082
Current liabilities
Interest-bearing current lease liabilities	997	813	879
Loans payable	1,658	288	1,867
Accounts payable	893	822	859
Provisions for claims reserves	181	270	327
Current tax liabilities	200	206	212
Liabilities, cash processing operations	6,597	3,285	3,453
Accrued expenses and prepaid income	2,048	1,866	1,906
Other provisions	40	39	53
Other current liabilities	762	702	676
Total current liabilities	13,375	8,292	10,233
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	37,524	31,177	31,780

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2023	2022	2022
SEK m	Six months	Six months	Full year
Opening balance	12,465	10,063	10,063
Actuarial gains and losses after tax	121	442	189
Exchange rate differences	855	1,570	2,004
Revaluation of participation in associated companies	–63	10	11
Hedging of net investments, net of tax	–	–119	–189
Total other comprehensive income	913	1,904	2,015
Net income for the period	760	591	1,602
Total comprehensive income1)	1,674	2,495	3,617
Dividend paid to Parent Company's shareholders	–853	–628	–628
Share-related remuneration	53	7	12
Acquisition of own shares	–200	–200	–600
Non-controlling interest	–	–	–
Closing balance	13,139	11,737	12,465

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

CONSOLIDATED STATEMENT OF CASH FLOWS

	2023	2022	2023	2022	2022
SEK m Note	Quarter 2	Quarter 2	Six months	Six months	Full year
Operations
Income before taxes	552	438	1,095	845	2,172
Depreciation and amortization	709	582	1,348	1,144	2,361
Other items not affecting cash flow	157	97	286	141	352
Financial items received	45	12	72	26	84
Financial items paid	–176	–68	–288	–137	–379
Income tax paid	–323	–257	–301	–375	–592
Change in accounts receivable	–156	–309	–173	–349	–319
Change in other operating capital employed and other items	–203	293	–155	6	–34
Cash flow from operations	605	789	1,883	1,300	3,645
Investing activities
Investments in fixed assets	–552	–338	–915	–661	–1,426
Disposals of fixed assets	45	33	47	34	54
Acquisitions of operations	–	–	–223	–	–
Cash flow from investing activities	–507	–304	–1,092	–626	–1,372
Financing activities
Dividend paid	–853	–628	–853	–628	–628
Acquisition of own shares	–	–200	–200	–200	–600
Issuance of bonds	1,000	600	1,000	600	600
Issuance of commercial papers and other long-term borrowing	1,154	1,725	2,670	3,030	4,867
Redemption of commercial papers and other long-term borrowing	–1,467	–1,460	–2,224	–2,825	–5,388
Change in other interest-bearing net debt	– 173	–212	–757	–492	–1,004
Cash flow from financing activities	– 338	–175	– 364	–514	–2,153
Cash flow for the period	–241	310	428	160	121
Liquid fund at beginning of the period1)	2,939	1,884	2,264	2,009	2,009
Translation differences in liquid funds	–100	87	–93	112	134
Liquid funds at end of period1)	2,598	2,281	2,598	2,281	2,264

1) Excluding liquid funds within cash processing operations. See also Note 6 Liquid funds.

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

	2023	2022	2023	2022	2023	2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Operating income (EBITA)1)	725	600	1,416	1,097	2,967	2,648
Depreciation1)	345	338	703	669	1,393	1,359
Change in accounts receivable	–156	–309	–173	–349	–143	–319
Change in other operating capital employed and other items1)	–134	320	–87	31	–125	–7
Cash flow from operating activities before investments	781	948	1,858	1,447	4,092	3,681
Investments in fixed assets, net	–508	–304	–867	–626	–1,609	–1,365
Cash flow from operating activities	273	644	992	821	2,487	2,316
Financial items paid and received1)	–100	–29	–155	–60	–278	–183
Income tax paid	–323	–257	–301	–375	–517	–592
Free cash flow	–151	358	536	386	1,691	1,541
Cash flow effect of items affecting comparability	–3	–2	–10	–4	–19	–13
Acquisition of operations	–	–	–223	–	–223	–
Acquisition–related costs and revenue, paid and received2)	–3	–49	–6	–78	–15	–86
Dividend paid	–853	–628	–853	–628	–853	–628
Acquisition of own shares	–	–200	–200	–200	–599	–600
Issuance of bonds	1,000	600	1,000	600	1,000	600
Issuance of commercial papers and other long–term borrowing	1,154	1,725	2,670	3,030	4,507	4,867
Redemption of commercial papers and other long–term borrowing	–1,467	–1,460	–2,224	–2,825	–4,787	–5,388
Change in other interest–bearing net debt1)	82	–35	–262	–122	– 313	–173
Cash flow for the period	–241	310	428	160	388	121

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 2022 Annual Report.

Translation of foreign subsidiaries

In connection with changing the group reporting system, the practical methodology for translation of foreign subsidiaries' reporting has been changed as follows. Income statements for foreign subsidiaries are converted to the period's average exchange rate, in contrast to previously when the respective month's income statement was converted to the exchange rate on the last day of the month. The change in methodology can have a certain impact on the conversion effect, which will have an impact during the quarter when the change takes place. The balance sheets are translated as before at the exchange rate on the balance sheet date.

New or changed standards and interpretations that entered into force on January 1, 2023 are not expected to have any material effect on the Group's financial statements.

Loomis has applied the IAS 29 Financial Reporting in Hyperinflationary Economies for the operations in Turkey and Argentina.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 95 and 123 of the 2022 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 Risk management and key risks

Sound risk management is one of Loomis' most important success factors. Given Loomis' history and the nature of the service offering, the Company has extensive experience in managing risk and takes a structured and proactive approach throughout the organization, at both the local and central levels. Well-managed risk can create opportunities and add value to the business, while risk that is not efficiently managed can cause negative incidents and losses.

Loomis' risk management is an ongoing and iterative process. The risk environment changes over time and it is therefore necessary to continuously revisit, update and identify new risks. Risk management routines are integrated into the Group's business planning and performance monitoring. Significant processes are documented and any material risks associated with a specific process are identified and defined in a risk register. The annual risk assessment and the resulting risk register are coordinated and maintained at Group level.

Loomis is exposed to strategic, operational, legal and compliance, environment as well as financial risks. There are risks that pertain to Loomis itself and the industry as well as risks that are more general in nature. Risks that have been identified to be of key significance include payment market changes, data privacy, health and safety, attracting and retaining employees, internal fraud and corruption, information security, physical security, environment and climate, compliance, money laundering and financial risks.

For further information on risks, risk management and opportunities, see pages 74–78 of Loomis' Annual and Sustainability Report 2022.

Factors of uncertainty

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 2023 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the Annual and Sustainability Report 2022 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 BY BUSINESS LINE

	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total
SEK m			Quarter 2 2023					Quarter 2 2022
Cash in transit (CIT)	1,257	1,384	−	−	2,641	1,116	1,242	−	−	2,358
Cash management services (CMS)	736	556	−	−	1,292	686	507	−	−	1,193
ATM	671	840	−	−	1,512	546	757	−	−	1,303
SafePoint (Automated Solutions)	238	763	−	−	1,001	206	600	−	−	806
International	298	151	−	−	449	286	110	−	−	396
FXGS	162	−	−	−	162	112	−	−	−	112
Loomis Pay	−	−	12	−	12	−	−	5	−	5
Revenue, other and internal	34	3	−	–33	4	55	30	−	–42	43
Total revenue	3,396	3,697	12	–33	7,072	3,007	3,246	5	–42	6,217
Timing of revenue recognition, external
At a point in time	684	112	1	−	797	630	117	2	−	749
Over time	2,697	3,566	11	−	6,275	2,353	3,111	4	−	5,468
Total external revenue	3,381	3,679	12	−	7,072	2,983	3,228	6	–	6,217

	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total
SEK m			Six months 2023					Six months 2022
Cash in transit (CIT)	2,463	2,743	−		5,206	2,171	2,297	−	−	4,468
Cash management services (CMS)	1,467	1,076	−		2,543	1,322	953	−	−	2,275
ATM	1,305	1,676	−		2,981	1,055	1,456	−	−	2,511
SafePoint (Automated Solutions)	470	1,494	−		1,963	407	1,137	−	−	1,543
International	573	271	−		843	531	209	−	−	740
FXGS	284	−	−		284	203	−	−	−	203
Loomis Pay	−	−	19	−	19	−	−	9	−	9
Revenue, other and internal	84	36	−	–76	44	114	57	−	–76	95
Total revenue	6,646	7,295	19	–76	13,884	5,803	6,108	9	–76	11,844
Timing of revenue recognition, external
At a point in time	1,337	222	4	−	1,567	1,195	225	3	−	1,423
Over time	5,269	7,037	15	−	12,316	4,563	5,853	6	−	10,422
Total external revenue	6,606	7,259	19	−	13,884	5,758	6,078	9	–	11,844

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2023	2022	2023	2022	2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	Full year
USA	3,669	3,246	7,239	6,108	13,086
France	942	809	1,838	1,549	3,342
Switzerland	447	421	868	827	1,648
Spain	433	377	843	729	1,543
UK	284	296	552	573	1,145
Sweden	222	194	420	384	760
Other countries	1,075	873	2,124	1,674	3,791
Total revenue	7,072	6,217	13,884	11,844	25,315

External revenue is reported per significant geographical market.

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. 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 and Latin America, 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

		2022				2023
					Full					Full
SEK m	Q1	Q2	Q3	Q4	year	Q1	Q2	Q3	Q4	year
Europe and Latin America	2,796	3,007	3,244	3,207	12,255	3,250	3,396	–	–	–
USA	2,862	3,246	3,542	3,561	13,211	3,598	3,697	–	–	–
Loomis Pay	3	5	6	6	21	7	12	–	–	–
Group-wide functions	–	–	–	–	–	–	–	–	–	–
Eliminations	–34	–42	–53	–44	–173	–43	–34	–	–	–
Total revenue	5,627	6,217	6,739	6,731	25,315	6,812	7,072	–	–	–

OPERATING INCOME (EBITA)

			2022			2023
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	242	309	435	330	1,317	309	353	–	–	–
USA	371	429	488	534	1,822	500	515	–	–	–
Loomis Pay	–49	–52	–36	–41	–178	–54	–53	–	–	–
Group-wide functions	–49	–66	–42	–69	–226	–38	–63	–	–	–
Operating income (EBITA)	516	620	845	754	2,735	717	752	–	–	–

OPERATING INCOME (EBIT)

Full Q4 year
– –
– –
– –
– –
– –
– –
– –

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Six months 2023
Revenue	6,646	7,236	19	–	–76	13,825
Revenue, acquisitions	–	59	–	–	–	59
Total revenue	6,646	7,295	19	–	–76	13,884
Production expenses	–5,064	–5,263	–58	–	–	–10,384
Gross income	1,582	2,032	–39	–	–76	3,500
Selling and administrative expenses	–982	–1,027	–68	–102	76	–2,103
Other income and expenses	–14	–3	–1	–3	–	–20
Items affecting comparability	–24	–	–	–	–	–24
Operating income (EBIT)	563	1,001	–108	–105	–	1,352
Net financial items	–	–	–	–206	–	–206
Loss on monetary net assets/liabilities	–	–	–	–51	–	–51
Income before taxes	563	1,001	–108	–362	–	1,095

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m		Six months 2022
Revenue	5,601	6,066	9	–	–76	11,599
Revenue, acquisitions	203	43	–	–	–	245
Total revenue	5,803	6,108	9	–	–76	11,844
Production expenses	–4,350	–4,456	–27	–3	76	–8,761
Gross income	1,453	1,652	–18	–3	–	3,083
Selling and administrative expenses	–958	–860	–83	–115	–	–2,016
Other income and expenses	–60	–4	–	–2	–	–65
Items affecting comparability	–	–	–	–23	–	–23
Operating income (EBIT)	435	788	–101	–143	–	979
Net financial items	–	–	–	–70	–	–70
Loss on monetary net assets/liabilities	–	–	–	–64	–	–64
Income before taxes	435	788	–101	–277	–	844

SEGMENT OVERVIEW BALANCE SHEET

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Europe and Latin America
Assets	15,308	11,851	15,809
Liabilities	12,343	5,991	6,513
USA
Assets	16,267	13,250	13,814
Liabilities	3,308	1,921	1,894
Other 1)
Assets	5,949	6,076	2,156
Liabilities	8,734	11,258	10,908
Shareholders' equity	13,139	11,737	12,465
Group total
Assets	37,524	31,177	31,780
Liabilities	24,385	19,440	19,315
Shareholders' equity	13,139	11,737	12,465

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, 2023							8,075	583
Acquisition of AIB Express Logistics4)	February	USA	100	1282)	20	3073)	185)	97	28
Total acquisitions January – June 2023							185	97	28
Amortization of acquisition-related intangible assets							–	–70
Exchange rate differences							477	54
Closing balance June 30, 2023							8,737	663

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

2) Annual revenue 2022.

3) The enterprise value, i.e. the purchase price payable on a debt free basis, on the acquisition date amounted to around SEK 307 million for AIB Express Logistics.

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.

Acquisition of AIB Express Logistics, USA

Loomis AB has acquired the shares in AIB Express Logistics, USA, through the wholly owned subsidiary Loomis International US LLC. A preliminary balance sheet is presented in the table below.

Summarized balance sheet from the acquisition of assets and liabilities of AIB Express at the date of acquisition, February 1, 2023.

SEK m	Preliminary acquisition balance
Intangible assets	97
Tangible assets	–
Cash and cash equivalents	12
Financial assets and liabilities	–1
Other assets and liabilities	15
Net identifiable assets and liabilities	122
Purchase price paid	222
Deferred purchase price	85
Goodwill	185

The acquisition has, as from the time of acquisition up to June 30, 2023, contributed approximately SEK 59 million to total revenue and approximately SEK 13 million to net income. Total transaction costs for the acquisition amounted to approximately SEK 2 million and have been recognized on the line Other income and expenses.

NOTE 6 – ITEMS AFFECTING COMPARABILITY

	2023	2022	2023	2022	2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	Full year
Restructuring costs within the European segment	–13	–	–24	–	–
Provision for remuneration cost in connection with change of CEO	–	–23	–	–23	–23
Total items affecting comparability	–13	–23	–24	–23	–23

NOTE 7 – LIQUID FUNDS

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Liquid funds	9,397	5,817	6,203
Adjusted for inventory of cash at the cash processing operations	–3,847	–2,894	–2,956
Adjusted for prepayments from customers	–2,952	–643	–984
Liquid funds excluding funds for cash processing activities	2,598	2,281	2,264

NOTE 8 – TRANSACTIONS WITH RELATED PARTIES

Transactions between Loomis and related parties are described in Note 30 of the 2022 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 JUNE 30, 2023

	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)	–4,208,782	–4,208,782
Total no. of outstanding shares	71,071,047	71,071,047

1) During the period 586.000 shares was added to the treasury shares.

NOTE 10 – CONTINGENT LIABILITIES, GROUP

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Guarantees and other commitments	2,644	2,514	2,602

KEY RATIOS

	2023	2022	2023	2022	2023	2022
	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Real growth. %	8.3	17.7	10.1	18.0	11.7	15.9
Organic growth. %	7.7	16.1	9.6	15.4	11.2	14.4
Total growth. %	13.8	30.1	17.2	27.9	22.6	28.4
Gross margin. %	24.0	26.3	25.2	26.0	26.3	26.8
Selling and administration expenses in % of total revenue	–13.9	–16.9	–15.1	–17.0	–15.5	–16.4
Operating margin (EBITA). %	10.6	10.0	10.6	9.6	11.2	10.8
Tax rate. %	35.4	32.5	30.6	30.0	26.9	26.2
Net margin. %	5.0	4.8	5.5	5.0	6.5	6.3
Return on shareholders' equity. %	14.0	12.1	14.0	12.1	14.0	13.7
Return on capital employed. %	15.1	13.3	15.1	13.3	15.1	14.5
Equity ratio. %	35.0	37.6	35.0	37.6	35.0	39.2
Liquid funds excluding funds within cash processing operations (SEK m)	2,598	2,281	2,598	2,281	2,598	2,264
Net debt (SEK m)	8,555	7,538	8,555	7,538	8,555	7,484
Net debt/EBITDA	1.55	1.73	1.55	1.73	1.55	1.50
Cash flow from operating activities1) as % of operating income (EBITA)	36	104	68	72	81	85
Investments in relation to depreciation	0.8	0.6	0.7	0.6	0.7	0.6
Investments as a % of total revenue	7.2	4.9	6.3	5.3	5.9	5.4
Earnings per share before dilution. SEK	5.01	4.02	10.65	8.02	24.63	21.93
Shareholders' equity per share before dilution. SEK	184.87	159.61	184.87	159.61	184.87	172.98
Cash flow from operating activities per share before dilution. SEK	8.51	10.73	26.38	18.25	58.78	49.88
Dividend per share. SEK	12.00	8.50	12.00	8.50	12.00	8.50
Number of outstanding shares (millions)	71.1	73.0	71.1	73.0	71.1	71.7
Average number of outstanding shares before dilution (millions)	71.1	73.5	71.3	73.7	71.9	73.0

1) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2023	2022	2022
SEK m	Quarter 2	Quarter 2	Full year
Revenue	245	391	812
Operating income (EBIT)	106	152	339
Income after financial items	1,881	326	1,855
Net income for the period	1,869	327	1,868

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The higher net income in 2023 is mainly due to dividends from subsidiaries amounting to SEK 1,823 million.

PARENT COMPANY SUMMARY BALANCE SHEET

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Fixed assets	13,171	12,868	11,994
Current assets	2,924	2,073	3,169
Total assets	16,095	14,941	15,163
Shareholders' equity	5,922	3,979	5,126
Untaxed reserves	6	15	6
Long-term liabilities	5,818	6,619	4,302
Short-term liabilities	4,349	4,328	5,729
Total shareholders' equity and liabilities	16,095	14,941	15,163

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. During the first half of the year, shares have been bought back similar as in 2022. A dividend has been made to shareholders.

CONTINGENT LIABILITIES, PARENT COMPANY

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Guarantees and other commitments	7,932	5,714	6,942

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 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

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

Loomis' 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 in the section Financial Reports in this report.

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.

	2023	2022
SEK m	Quarter 2 Quarter 2			Growth Growth, %
Recognized revenue	7,072	6,217	855	13.8
Organic growth			479	7.7
Revenue, acquisitions			38	0.6
Real growth			517	8.3
Exchange rate effects			339	5.4

	2023	2022
	Six	Six
SEK m	months	months		Growth Growth, %
Recognized revenue	13,884	11,844	2,040	17.2
Organic growth			1,141	9.6
Revenue, acquisitions			60	0.5
Real growth			1,201	10.1
Exchange rate effects			839	7.1

Operating income (EBIT) before items affecting comparability, Operating income (EBITA) and Operating margin (EBITA), %

Loomis' 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.

	2023	2022	2023	2022	2022
SEK m	Quarter 2	Quarter 2	Six months	Six months	Full year
Operating income (EBIT)	696	516	1,352	978	2,532
Adding back items affecting comparability	13	23	24	23	23
Operating income (EBIT) before items affecting comparability	709	539	1,376	1,002	2,555
Adding back acquisition-related costs	6	46	21	65	67
Adding back amortization of acquisition-related intangible assets	38	34	72	69	113
Operating income (EBITA)	752	620	1,469	1,136	2,735
Calculation of operating margin (EBITA), %
EBITA	752	620	1,469	1,136	2,735
Total revenue	7,072	6,217	13,884	11,844	25,315
EBITA/Total revenue, %	10.6	10.0	10.6	9.6	10.8

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

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Short-term loans	1,658	288	1,867
Long-term loans	5,784	6,595	4,270
Total loans payable	7,442	6,883	6,137
Liquid funds excluding funds in cash processing operations	–2,598	–2,281	–2,264
Other interest-bearing assets	–712	–679	–571
Financial net debt	4,132	3,924	3,302
Lease liabilities	4,274	3,644	3,866
Pension net, assets (-) liabilities (+)	149	–30	315
Net debt	8,555	7,538	7,484

	2023	2022	2022
SEK m	Quarter 2 Quarter 2		Full year
Operating income (EBITA), R12	3,068	2,311	2,735
Adding back depreciation/amortization, R12	2,449	2,051	2,249
EBITDA, R12	5,517	4,362	4,984
Net debt/EBITDA (number of times)	1.55	1.73	1.50

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, %

	2023	2022	2022
SEK m	Jun 30	Jun 30	Dec 31
Shareholders' equity	13,139	11,737	12,465
Total assets	37,524	31,177	31,780
Equity ratio, %	35.0	37.6	39.2

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, %

SEK m Jun 30 Jun 30 Dec 31 Fixed assets Goodwill 8,737 7,884 8,075 Acquisition-related intangible assets 663 704 678 Other intangible assets 440 369 343 Buildings and land 1,199 1,084 1,139 Machinery and equipment 5,452 4,848 5,018 Right-of-use assets 4,116 3,563 3,763 Other operating fixed assets1) 1,001 952 970 Current assets Accounts receivable 3,517 3,290 3,311 Other operating current assets2) 1,930 1,595 1,463 Funds in cash processing operations 6,799 3,537 3,940 Long-term liabilities Deferred tax liability –482 –506 –487 Provisions for claims reserves –565 –504 –472 Other provisions –144 –166 –144 Other long-term liabilities –249 –185 –162 Current liabilities Accounts payable –893 –822 –859 Liabilities in cash processing operations –6,597 –3,285 –3,453 Accrued expenses and prepaid income –2,048 –1,866 –1,906 Other operating current liabilities3) –1,183 –1,217 –1,269 Capital employed 21,694 19,275 19,948 Capital employed (average) 20,262 17,403 18,896 Operating income (EBITA), R12 3,068 2,311 2,735 Return on capital employed, %4) 15.1 13.3 14.5	2023	2022	2022

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.

4) Return on capital employed is calculated on average capital employed, R12. Previous periods have been recalculated.

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) in relation to average shareholders' equity for the period.

2023	2022	2022
		Full year
1,771	1,247	1,602
12.660	10,310	11,682
14.0	12.1	13.7
		Quarter 2 Quarter 2

1) Return on equity is calculated on average equity, R12. Previous periods have been recalculated.

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.
Operating income (EBIT before items affecting comparability)	Earnings before interest, tax and items affecting comparability.
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 share	Cash flow for the period from operations in relation to the number of shares after dilution.
Investments in relation to depreciation	Investments in fixed assets, net, for the period, in relation to depreciation, including 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 average balance of shareholders' equity.
Return on capital employed, %	Operating income (EBITA) (rolling 12 months) as a percentage of the average 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.
Net debt/EBITDA	Net debt as percentage of operating income after reversal of depreciations and amortizations.
R12	Rolling 12 months.
Scope 1	Green House Gas (GHG) emissions from sources that an organization own or controls directly.
Scope 2	Green House Gas (GHG) emissions that an organization causes indirectly when the energy it purchases, and uses is produced.
n/a	Not applicable.
Other	Amounts in tables and other combined amounts have been rounded off on an individual basis. Minor differences due to this rounding-off, may, therefore, appear in the totals.

Outlook 2023

The company is not providing any forecast information for 2023.

The undersigned confirm that this interim report provides a fair and true overview of the Parent Company's and the Group's operations, financial position and results, and describes any significant risks and uncertainties faced by the Parent Company and the companies in the Group.

Stockholm, July 21, 2023

Alf Göransson Chairman of the Board

Cecilia Daun Wennborg Board member

Johan Lundberg Board member

Santiago Galaz Board member Jeanette Almberg Board member

Liv Forhaug Board member

Lars Blecko Board member

Chalanja Henningsson Board member employee representative

Aritz Larrea President and CEO

This interim report has not been subject to a review by the company's auditors.

Loomis in brief

Vision

Managing cash in society.

Financial targets 2022–2024

• Revenue: Average currency-adjusted growth of 5–8 percent per year
• Operating margin EBITA: 12–14 percent for 2024

Sustainability targets 2022–2024

• Reduce carbon emissions by 15 percent compared to 2019. Refers to scope 1&2 in total
• Reduction of the occupational injury frequency by 15 percent compared to 2021

Dividend policy

• 40–60 percent of the result for the year

Telephone conference and audio cast

A telephone conference will be held on July 21, 2023 at 09:00 a.m. (CEST).

To follow the conference call via telephone and participate in Q&A session please call (local call); United Kingdom: +44 (0) 161 2508 206 USA: +1 (0) 561 771 1427 Sweden: +46 (0)8 505 100 39 International: +39 02 304 64 867

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.

Upcoming reporting dates

Interim Report Full-Year Report January – September 2023 January – December 2023

October 26, 2023 January 31, 2024

For further information

Jenny Boström, Head of Sustainability and IR, +46 (0)79 006 45 92 , e-mail: jenny.bostrom@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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 a.m. (CEST) on July 21, 2023.

Operations

Loomis offers secure and effective comprehensive solutions for managing payments, including the distribution, handling, storage and recycling of cash and other valuables. Loomis' customers are mainly financial institutions and retailers. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employed around 25,000 people at the end of 2022 and had revenue in 2022 of more than SEK 25 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.