Loomis — Earnings Release 2023

May 4, 2023

Record revenues and strong operating profit

• Revenue for the first quarter was SEK 6,812 million (5,627). Real growth was 12.1 percent (18.4) of which organic growth was 11.7 percent (14.6).
• Operating income (EBITA) for the quarter was SEK 717 million (516) and operating margin (EBITA) was 10.5 percent (9.2).
• Operating income (EBIT) before items affecting comparability for the quarter was SEK 667 million (463) and operating margin (EBIT) before items affecting comparability was 9.8 percent (8.2).
• Income before taxes for the quarter was SEK 543 million (406) and net income was SEK 403 million (295).
• Earnings per share before dilution for the quarter were SEK 5.64 (4.00) and after dilution 5.64 (4.00).
• Cash flow from operating activities amounted to SEK 719 million (177) in the quarter, equivalent to 100 percent (34) of operating income (EBITA).
• Loomis AB repurchased 586,000 own shares during the first quarter.

KEY RATIOS

	2023	2022		2022
SEK m	Quarter 1	Quarter 1	Change (%)	Full year
Revenue	6,812	5,627	21.1	25,315
Of which:
Organic growth	657	654	11.7	2,847
Acquisitions and divestments	22	169	0.4	285
Exchange rate effects	505	321	9.0	2,460
Total growth	1,185	1,144		5,592
Operating income (EBITA)	717	516		2,735
Operating margin (EBITA), %	10.5	9.2		10.8
Operating income (EBIT) before items affecting comparability	667	463		2,555
Operating margin (EBIT) before items affecting comparability, %	9.8	8.2		10.1
Income before tax	543	406		2,172
Profit for the period	403	295		1,602
Earnings per share before dilution, SEK	5.64	4.00		21.93
Tax rate, %	26	27		26
Cash flow from operating activities	719	177		2,316
Cash flow from operating activities as % of operating income (EBITA)	100	34		85

Explanation and reconciliation of alternative performance measures can be found on pages 20–21 of this report and under Definitions on page 22.

Strong start to the year with record revenues

Loomis reported record revenues with strong growth in all segments, supported by a double-digit organic growth. Higher volumes were the main driver but price increases also contributed to the organic growth. The operating profit (EBITA) increased to SEK 717 million (516), which is our highest operating profit for a first quarter. The operating margin (EBITA %) increased to 10.5 percent (9.2) and was positively impacted by increased volumes and price adjustments, but negatively by a higher cost base.

Record revenues across segments

Segment USA continued to grow at a strong rate, with an organic growth of 12.5 percent for the first quarter. Revenues reached a record high SEK 3,598 million (2,862) and we continue to increase our market share in USA. Revenues within all offerings increased with strong growth for SafePoint in particular, which reported a quarter with doubledigit organic growth for the ninth quarter in a row.

We have successfully hired more employees to support our growth, and the related costs for recruitment and training impacted the margin for the quarter. The operating profit increased to SEK 500 million (371), corresponding to a margin of 13.9 percent (13.0).

Segment Europe and Latin America also delivered a quarter with record revenues and double-digit organic growth. The operating profit increased to SEK 309 million (242), corresponding to a margin of 9.5 percent (8.7). The operating margin was affected by a higher cost base, where the impact of the annual price increases had not been fully realized in the quarter. The majority of the price negotiations have now been finalized, but we will likely continue to see a timing effect as long as inflation remains at this high level.

Loomis Pay also reported strong growth in the first quarter, with increased revenue in all three markets compared to both the previous year and quarter. Transaction volumes in the first quarter increased by 90 percent compared to the previous year. Loomis Pay is constantly evolving, and we are adding more advanced services to bring added-value to our customers. I am pleased that we now can offer 24-hour settlement also to our Spanish customers. We are strongly committed to further developing the Loomis Pay offer to meet our customers' needs even better.

Reducing our emissions

We have made a commitment to reduce the carbon emissions from our business while ensuring the safety of our employees and customers. The order for an additional 150 electric armored vehicles for the US market is an important step in achieving this. By significantly increasing the number of EVs in the US operations, we are on our way to both reducing our own emissions while maintaining our high security standards. The ordered vehicles will be delivered and entered into operations gradually from the second half of 2023.

Loomis stands strong

Although there are signs that inflation, energy prices and supply chains are stabilizing, the prevailent macroeconomic uncertainties are affecting society around us. We are closely monitoring how the

+12% Organic growth Q1

+39% EBITA growth Q1

changing environment may impact both our business and our customers and will adapt the operations as needed. We have had challenges in certain markets, including Germany where we are currently lossmaking. We have therefore initiated a restructuring plan within segment Europe and Latin America, which mainly impacts the German operations.

Equal access to cash and payments is an increasingly important issue globally and we are witnessing more discussions around the world on the importance of access to cash. We have a fundamental role in supporting central banks to ensure that cash is available and payment flows are functioning in society and, through our business, ensuring inclusion across communities.

Loomis delivered a strong first quarter despite the current challenges and I would like to thank our employees for their commitment and our customers for their trust in us. We have previously shown the strength of our business model even in times of macroeconomic uncertainty and I am confident that Loomis will continue to deliver going forward.

Stockholm, 4 May 2023

Aritz Larrea President and CEO

Revenue and income – Group

Quarter 1 2023

Revenue for the quarter amounted to record high SEK 6,812 million (5,627). Real growth was 12.1 percent (18.4), of which organic growth was 11.7 percent (14.6). 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 36 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 22 percent (21).

The operating income (EBITA) amounted to SEK 717 million (516) and the operating margin was 10.5 percent (9.2). The exchange rate effect on operating income during the quarter was approximately SEK 58 million (36).

For segment information, see pages 4–7.

The operating income (EBIT) before items affecting comparability for the quarter amounted to SEK 667 million (463), which includes amortization of acquisition related intangible assets of SEK –34 million (–34) and acquisition-related costs of SEK –15 million (–19). The operating income included items affecting comparability amounting to SEK –12 million related to restructuring in segment Europe and Latin America.

Net financial expenses increased to SEK –113 million (–56) in the quarter, mainly due to higher interest rates. A loss on monetary net assets also had an impact on net financial expenses. Income before tax amounted to SEK 543 million (406).

The tax expense for the quarter was SEK –140 million (–111).

Earnings per share before and after dilution amounted to 5.64 (4.00).

Revenue, SEK billion

Operating margin (EBITA), %

The segments

Revenue, operating income and number of full-time employees

EUROPE AND LATIN AMERICA

	2023	2022	2023	2022
SEK m	Quarter 1	Quarter 1	R12	Full year
Revenue	3,250	2,796	12,709	12,255
Sales growth, %	16.2	23.3	18.7	20.4
-of which organic growth, %	10.9	14.6	13.3	14.3
-of which acquisitions / divestments, %	–	6.6	0.5	2.0
-of which exchange rate effects, %	5.3	2.1	5.0	4.1
Real growth, %	10.9	21.2	13.7	16.3
Operating income (EBITA)	309	242	1,383	1,317
Operating margin, %	9.5	8.7	10.9	10.7
Number of full-time employees	14,300	14,000	14,200	14,300

USA

	2023	2022	2023	2022
SEK m	Quarter 1	Quarter 1	R12	Full year
Revenue	3,598	2,862	13,947	13,211
Sales growth, %	25.7	28.1	35.8	37.0
-of which organic growth, %	12.5	14.9	14.4	15.0
-of which acquisitions / divestments, %	0.8	0.9	0.8	0.9
-of which exchange rate effects, %	12.5	12.3	20.6	21.1
Real growth, %	13.2	15.8	15.2	15.9
Operating income (EBITA)	500	371	1,951	1,822
Operating margin, %	13.9	13.0	14.0	13.8
Number of full-time employees	10,900	10,600	10,600	10,500

LOOMIS PAY

	2023	2022	2023	2022
SEK m	Quarter 1	Quarter 1	R12	Full year
Revenue	7	3	25	21
Transaction volume	673	355	2,640	2,322
Sales growth, %	129.7	90.8	102.4	92.4
-of which organic growth, %	123.7	86.9	95.6	86.2
-of which acquisitions / divestments, %	–	–	–	–
-of which exchange rate effects, %	6.0	3.8	6.8	6.1
Real growth, %	123.7	86.9	95.6	86.2
Operating income (EBITA)	–54	–49	–183	–178
Operating margin, %	n/a	n/a	n/a	n/a

Revenue and income – Europe and Latin America

Quarter 1 2023

Revenue for the quarter amounted to SEK 3,250 million (2,796). Real growth, was 10.9 percent (21.2). Organic growth was 10.9 percent (14.6), 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 operating income (EBITA) amounted to SEK 309 million (242) and the operating margin was 9.5 percent (8.7). The operating margin was affected negatively by a higher cost base, where the impact of the annual price increases had not been fully realized in the quarter.

During the quarter, a restructuring plan was initiated. The expected restructuring costs to be taken during 2023 are approximately EUR −5 million, of which SEK −12 million were taken in the first quarter. The majority of the restructuring is related to operations in Germany.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q1

Revenue by business line, R12

Revenue and income – USA

Quarter 1 2023

Revenue amounted to SEK 3,598 million (2,862) and real growth was 13.2 percent (15.8). Organic growth amounted to 12.5 percent (14.9). 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 0.8 percent of the total growth.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 44 percent (43) 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 500 million (371) and the operating margin was 13.9 percent (13.0). The margin was positively affected by the increased volumes, but negatively by recruitment and training-related costs.

Cost for fuel amounted to 3 percent (3) of revenue.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q1

Revenue by business line, R12

Revenue and income – Loomis Pay

Quarter 1 2023

Revenue amounted to SEK 7 million (3), with growth in all markets compared to the previous year and transaction volumes grew 90 percent. Revenues also increased compared to the fourth quarter of 2022, despite the seasonality effects.

The Spanish sales team is in place since the end of the fourth quarter and there are transacting customers on the platform. Loomis Pay continued to develop the service and was able to start offering 24-hour settlement also to customers in Spain. The prioritized areas in the nearterm is to continue to build the local sales organizations in present markets as well as further develop the service offering.

The operating income (EBITA) amounted to SEK –54 million (–49).

Revenue, 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.

Integrity Line – every voice is heard Loomis has a zero tolerance for bribery and corruption. The anonymous whistle blower hotline, Loomis Integrity Line, has since 2010 been an important tool to promote and ensure compliance with Loomis' Code of Conduct. By using the line, employees can anonymously alert management on suspected unethical behavior at the workplace. Encouraging a culture where everyone can speak up and every voice is heard is key and therefore Loomis has continued to develop the Integrity Line. An updated version was introduced in the first quarter.

Reducing transport emissions

Loomis has continued to invest in lighter vehicles with high security features. As announced in February, Loomis has ordered 150 electric armored vehicles for the US market. These emission-free vehicles will be delivered and entered into operations gradually from the second half of 2023. In addition, Loomis has made a commitment to the New York City Department of Environmental Protection to be completely emission-free in New York City by the end of 2025.

These initiatives will ensure that Loomis can continue to decrease the emissions from transport going forward, even as the business grows.

Carbon emissions, tCO2e Scope1

Cash flow and investments

January – March 2023

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 719 million (177), equivalent to 100 percent (34) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –359 million (–322), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 357 million (331). 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 0.6 (0.6).

Capital employed and financial position

Capital employed

The total capital employed as of March 31, 2023 amounted to SEK 20,065 million (19,948 as of December 31, 2022), which is equivalent to approximately 76 percent (86) of revenue. Return on capital employed amounted to 15.1 percent (12.6).

Shareholders' equity and financing

Shareholders' equity increased during the year by SEK 231 million, amounting to SEK 12,696 million as of March 31, 2023 (12,465 as of December 31, 2022). The increase is largely explained by translation differences of SEK 90 million, net profit for the period of SEK 403 million, revaluation of participation in associated companies of SEK –63 million and share repurchase of SEK 200 million. The return on shareholders' equity was 14.0 percent (12.2) and the equity ratio was 37.2 percent (38.4).

Net debt amounted to SEK 7,369 million as of March 31, 2023 (7,484 as of December 31, 2022) and net debt/EBITDA amounted to 1.40 (1.50 as of December 31, 2022).

As of March 31, 2023 the long-term loan facilities totaled SEK 9.3 billion and the short-term loan facilities totaled SEK 2.0 billion. Unutilized loan facilities amounted to SEK 5.9 billion, of which SEK 1.5 billion are used as back-up for outstanding commercial papers. Available liquid funds amounted to approximately SEK 2.9 billion (see Note 6).

Other events

Significant 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.

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 during the first quarter. 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.

Other events during the period

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.

Financial reports

CONSOLIDATED INCOME STATEMENT

	Note	2023	2022	2023	2022
SEK m		Quarter 1	Quarter 1	R12	Full year
Revenue	3,4	6,812	5,627	26,499	25,315
Production expenses		–5,006	–4,181	–19,365	–18,540
Gross income		1,806	1,446	7,134	6,775
Selling and administration expenses		–1,123	–964	–4,311	–4,152
Other income and expenses		–15	–19	–63	–67
Items affecting comparability	5	–12	–	–35	–23
Operating income (EBIT)		656	463	2,725	2,532
Financial income		35	24	149	137
Financial expenses		–125	–57	–419	–351
Loss on monetary net assets/liabilities		–23	–23	–146	–146
Income before taxes		543	406	2,308	2,172
Income tax		–140	–111	–598	–570
Net income for the period1)		403	295	1,710	1,602
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses, net of tax		–	206	–17	189
Items that may be reclassified to the statement of income
Translation differences		90	333	1,762	2,004
Revaluation of participation in associated companies		–63	–	–52	11
Hedging of net investments, net of tax		–	–24	–164	–189
Other comprehensive income and expenses for the period, net after tax		28	514	1,529	2,015
Total comprehensive income and expenses for the
period2)		431	809	3,238	3,617
Earnings per share, SEK
Earnings per share before dilution		5.64	4.00	23.59	21.93
Earnings per share after dilution		5.64	4.00	23.58	21.92
Number of shares
Number of outstanding shares (million)		71.1	73.8	71.1	71.7
Average number of outstanding shares before dilution (million)		71.4	73.8	72.5	73.0
Average number of outstanding shares after dilution (million)		71.5	73.9	72.5	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	Mar 31	Mar 31	Dec 31
ASSETS
Fixed assets
Goodwill	8,302	7,334	8,075
Intangible assets	1,082	1,128	1,021
Buildings and land	1,143	1,040	1,139
Machinery and equipment	5,098	4,495	5,018
Right-of-use assets	3,822	3,225	3,763
Contract assets	255	171	254
Deferred tax assets	364	444	388
Pension plan assets	259	302	245
Interest-bearing financial fixed assets	785	481	557
Other long-term receivables	328	305	327
Total fixed assets	21,438	18,925	20,788
Current assets
Accounts receivable	3,343	2,778	3,311
Other current receivables	337	306	309
Current tax assets	262	287	303
Prepaid expenses and accrued income	1,336	845	851
Interest-bearing financial current assets	17	37	14
Liquid funds 6	7,412	5,157	6,203
Total current assets	12,706	9,409	10,992
TOTAL ASSETS	34,143	28,334	31,780
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 8
Share capital	376	376	376
Other capital contributed	4,594	4,594	4,594
Other reserves	2,012	1,207	2,122
Retained earnings including net income for the year	5,713	4,701	5,372
Total shareholders' equity	12,696	10,878	12,465
Long-term liabilities
Interest-bearing non-current lease liabilities	3,045	2,556	2,987
Loans payable	5,045	5,587	4,270
Deferred tax liabilities	437	479	487
Provisions for claims reserves	486	423	472
Provisions for pensions and similar commitments	563	548	560
Other provisions	126	155	144
Other long-term liabilities	207	142	162
Total long-term liabilities	9,909	9,890	9,082
Current liabilities
Interest-bearing current lease liabilities	904	733	879
Loans payable	1,812	259	1,867
Accounts payable	1,036	802	859
Provisions for claims reserves	310	219	327
Current tax liabilities	358	284	212
Liabilities, cash processing operations	4,312	2,805	3,453
Accrued expenses and prepaid income	1,962	1,699	1,906
Other provisions	53	41	53
Other current liabilities	793	723	676
Total current liabilities	11,539	7,567	10,233
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	34,143	28,334	31,780

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2023	2022	2022
SEK m	Quarter 1	Quarter 1	Full year
Opening balance	12,465	10,063	10,063
Actuarial gains and losses after tax	–	206	189
Exchange rate differences	90	333	2,004
Revaluation of participation in associated companies	–63	–	11
Hedging of net investments, net of tax	–	–24	–189
Total other comprehensive income	28	514	2,015
Net income for the period	403	295	1,602
Total comprehensive income1)	431	809	3,617
Dividend paid to Parent Company's shareholders	–	–	–628
Share-related remuneration	–	5	12
Acquisition of own shares	–200	–	–600
Non-controlling interest	–	–	–
Closing balance	12,696	10,878	12,465

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

CONSOLIDATED STATEMENT OF CASH FLOWS

		2023	2022	2022
SEK m	Note	Quarter 1	Quarter 1	Full year
Operations
Income before taxes		543	406	2,172
Depreciation and amortization		639	562	2,361
Other items not affecting cash flow		129	44	352
Financial items received		27	14	84
Financial items paid		–112	–70	–379
Income tax paid		22	–118	–592
Change in accounts receivable		–17	–41	–319
Change in other operating capital employed and other items		48	–287	–34
Cash flow from operations		1,279	511	3,645
Investing activities
Investments in fixed assets		–362	–323	–1,426
Disposals of fixed assets		1	1	54
Acquisitions of operations		–223	–	–
Cash flow from investing activities		–584	–322	–1,372
Financing activities
Dividend paid		–	–	–628
Acquisition of own shares		–200	–	–600
Issuance of bonds		–	–	600
Issuance of commercial papers and other long-term borrowing		1,516	1,305	4,867
Redemption of commercial papers and other long-term borrowing		–757	–1,365	–5,388
Change in other interest-bearing net debt		–585	–279	–1,004
Cash flow from financing activities		–26	–339	–2,153
Cash flow for the period		669	–150	121
Liquid fund at beginning of the period1)		2,264	2,009	2,009
Translation differences in liquid funds		7	24	134
Liquid funds at end of period1)		2,939	1,884	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
SEK m	Quarter 1	Quarter 1	R12	Full year
Operating income (EBITA)1)	691	497	2,842	2,648
Depreciation1)	357	331	1,385	1,359
Change in accounts receivable	–17	–41	–295	–319
Change in other operating capital employed and other items1)	47	–289	340	–7
Cash flow from operating activities before investments	1,078	499	4,272	3,681
Investments in fixed assets, net	–359	–322	–1,402	–1,365
Cash flow from operating activities	719	177	2,869	2,316
Financial items paid and received1)	–54	–30	–207	–183
Income tax paid	22	–118	–451	–592
Free cash flow	687	28	2,211	1,541
Cash flow effect of items affecting comparability	–6	–2	–17	–13
Acquisition of operations	–223	–	–223	–
Acquisition–related costs and revenue, paid and received2)	–4	–29	–73	–86
Dividend paid	–	–	–628	–628
Acquisition of own shares	–200	–	–799	–600
Issuance of bonds	–	–	600	600
Issuance of commercial papers and other long–term borrowing	1,516	1,305	5,078	4,867
Redemption of commercial papers and other long–term borrowing	–757	–1,365	–4,780	–5,388
Change in other interest–bearing net debt1)	–344	–87	–430	–173
Cash flow for the period	669	–150	939	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.

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

The covid-19 pandemic that broke out in early 2020 had a negative effect on the world economy during 2020 and 2021. The postpandemic economic recovery during 2022 coupled with geopolitical uncertainties have led to higher inflation and interest rates in many markets where Loomis operates. The exact impact that the changing macroeconomic situation will have is unforeseeable, but it cannot be ruled out that it may have a negative effect on Loomis' earnings and financial position.

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 1 2023					Quarter 1 2022
Cash in transit (CIT)	1,206	1,359	–	–	2,565	1,055	1,055	–	–	2,110
Cash management services (CMS)	731	520	–	–	1,252	636	446	–	–	1,082
ATM	634	835	–	–	1,469	508	699	–	–	1,208
SafePoint	232	730	–	–	962	201	536	–	–	737
International	275	120	–	–	395	245	99	–	–	344
FXGS	122	–	–	–	122	91	–	–	–	91
Loomis Pay	–	–	7	–	7	–	–	3	–	3
Revenue, other and internal	50	33	–	–43	39	59	27	–	–34	52
Total revenue	3,250	3,598	7	–43	6,812	2,796	2,862	3	–34	5,627
Timing of revenue recognition, external
At a point in time	652	109	3	–	765	565	108	1	–	674
Over time	2,572	3,471	4	–	6,047	2,209	2,742	2	–	4,953
Total external revenue	3,225	3,580	7	–	6,812	2,775	2,850	3	–	5,627

	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total
SEK m			Full year 2022
Cash in transit (CIT)	4,487	4,986	–	–	9,473
Cash management services (CMS)	2,815	2,030	–	–	4,845
ATM	2,255	3,107	–	–	5,363
SafePoint	838	2,521	–	–	3,359
International	1,099	439	–	–	1,539
FXGS	515	–	–	–	515
Loomis Pay	–	–	21	–	21
Revenue, other and internal	245	128	–	–173	200
Total revenue	12,255	13,211	21	–173	25,315
Timing of revenue recognition, external
At a point in time	2,578	473	8	–	3,059
Over time	9,579	12,664	13	–	22,256
Total external revenue	12,156	13,137	21	–	25,315

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2023	2022	2022
SEK m	Quarter 1	Quarter 1	Full year
USA	3,569	2,836	13,086
France	896	738	3,342
Switzerland	421	392	1,648
Spain	410	352	1,543
UK	269	272	1,145
Sweden	198	187	760
Other countries	1,049	850	3,791
Total revenue	6,812	5,627	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, acquisitionrelated 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	–	–	–	–
USA	2,862	3,246	3,542	3,561	13,211	3,598	–	–	–	–
Loomis Pay	3	5	6	6	21	7	–	–	–	–
Group-wide functions	–	–	–	–	–	–	–	–	–	–
Eliminations	–34	–42	–53	–44	–173	–43	–	–	–	–
Total revenue	5,627	6,217	6,739	6,731	25,315	6,812	–	–	–	–

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	–	–	–	–
USA	371	429	488	534	1,822	500	–	–	–	–
Loomis Pay	–49	–52	–36	–41	–178	–54	–	–	–	–
Group-wide functions	–49	–66	–42	–69	–226	–38	–	–	–	–
Operating income (EBITA)	516	620	845	754	2,735	717	–	–	–	–

OPERATING INCOME (EBIT)

			2022					2023
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	195	240	408	330	1,173	266	–	–	–	–
USA	366	423	482	530	1,800	495	–	–	–	–
Loomis Pay	–49	–52	–36	–41	–178	–54	–	–	–	–
Group-wide functions	–49	–71	–47	–73	–240	–40	–	–	–	–
Operating income (EBIT) before items affecting comparability	463	539	808	745	2,555	667	–	–	–	–
Items affecting comparability	–	–23	–	–	–23	–12	–	–	–	–
Operating income (EBIT)	463	516	808	745	2,532	656	–	–	–	–

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Quarter 1 2023
Revenue	3,250	3,576	7	–	–43	6,790
Revenue, acquisitions	–	22	–	–	–	22
Total revenue	3,250	3,598	7	–	–43	6,812
Production expenses	–2,447	–2,583	–20	–	43	–5,006
Gross income	803	1,015	–12	–	–	1,806
Selling and administrative expenses	–524	–520	–41	–38	–	–1,123
Other income and expenses	–14	–	–	–1	–	–15
Items affecting comparability	–12	–	–	–	–	–12
Operating income (EBIT)	254	495	–54	–40	–	656
Net financial items	–	–	–	–89	–	–89
Loss on monetary net assets/liabilities	–	–	–	–23	–	–23
Income before taxes	254	495	–54	–152	–	543

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Quarter 1 2022
Revenue	2,646	2,843	3	–	–34	5,458
Revenue, acquisitions	150	20	–	–	–	169
Total revenue	2,796	2,862	3	–	–34	5,627
Production expenses	–2,113	–2,088	–14	–	34	–4,181
Gross income	683	774	–11	–	–	1,446
Selling and administrative expenses	–471	–407	–38	–49	–	–964
Other income and expenses	–18	–1	–	–	–	–19
Items affecting comparability	–	–	–	–	–	–
Operating income (EBIT)	195	366	–49	–49	–	463
Net financial items	–	–	–	–33	–	–33
Loss on monetary net assets/liabilities	–	–	–	–23	–	–23
Income before taxes	195	366	–49	–105	–	406

SEGMENT OVERVIEW BALANCE SHEET

	2023	2022	2022
SEK m	Mar 31	Mar 31	Dec 31
Europe and Latin America
Assets	16,885	14,414	15,809
Liabilities	7,520	5,579	6,513
USA
Assets	14,124	11,550	13,814
Liabilities	2,073	1,716	1,894
Other 1)
Assets	3,134	2,370	2,156
Liabilities	11,854	10,161	10,908
Shareholders' equity	12,696	10,878	12,465
Group total
Assets	34,143	28,334	31,780
Liabilities	21,447	17,456	19,315
Shareholders' equity	12,696	10,878	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)	1905)	92	28
Total acquisitions January – March 2023							190	92	28
Amortization of acquisition-related intangible assets							–	–34
Exchange rate differences							37	5
Closing balance March 31, 2023							8,302	647

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	92
Tangible assets	–
Cash and cash equivalents	12
Financial assets and liabilities	–1
Other assets and liabilities	15
Net identifiable assets and liabilities	118
Purchase price paid	223
Deferred purchase price	85
Goodwill	190

The acquisition has, as from the time of acquisition up to March 31, 2023, contributed approximately SEK 22 million to total revenue and approximately SEK 6 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	2022
SEK m	Quarter 1	Quarter 1	Full year
Restructuring costs within the European segment	–12	–	–
Provision for remuneration cost in connection with change of CEO	–	–	–23
Total items affecting comparability	–12	–	–23

NOTE 7 – LIQUID FUNDS

	2023	2022	2022
SEK m	Mar 31	Mar 31	Dec 31
Liquid funds	7,412	5,157	6,203
Adjusted for inventory of cash at the cash processing operations	–3,130	–2,699	–2,956
Adjusted for prepayments from customers	–1,342	–574	–984
Liquid funds excluding funds for cash processing activities	2,939	1,884	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 MARCH 31, 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	Mar 31	Mar 31	Dec 31
Guarantees and other commitments	2,607	2,430	2,602

KEY RATIOS

	2023	2022	2023	2022
	Quarter 1	Quarter 1	R12	Full year
Real growth, %	12.1	18.4	14.3	15.9
Organic growth, %	11.7	14.6	13.6	14.4
Total growth, %	21.1	25.5	27.0	28.4
Gross margin, %	26.5	25.7	26.9	26.8
Selling and administration expenses in % of total revenue	–16.5	–17.1	–16.3	–16.4
Operating margin (EBITA), %	10.5	9.2	11.1	10.8
Tax rate, %	25.7	27.3	25.9	26.2
Net margin, %	5.9	5.2	6.5	6.3
Return on shareholders' equity, %	14.0	12.2	14.0	13.7
Return on capital employed, %	15.1	12.6	15.1	14.5
Equity ratio, %	37.2	38.4	37.2	39.2
Liquid funds excluding funds within cash processing operations (SEK m)	2,939	1,884	2,939	2,264
Net debt (SEK m)	7,369	6,979	7,369	7,484
Net debt/EBITDA	1.40	1.71	1.40	1.50
Cash flow from operating activities1) as % of operating income (EBITA)	100	34	98	85
Investments in relation to depreciation	0.6	0.6	0.6	0.6
Investments as a % of total revenue	5.3	5.7	5.3	5.4
Earnings per share before dilution, SEK	5.64	4.00	23.59	21.93
Shareholders' equity per share before dilution, SEK	177.70	147.30	182.41	172.98
Cash flow from operating activities per share before dilution, SEK	17.90	6.92	48.04	49.88
Dividend per share, SEK	–	–	8.50	8.50
Number of outstanding shares (millions)	71.1	73.8	71.1	71.7
Average number of outstanding shares before dilution (millions)	71.4	73.8	72.5	73.0

1) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2023	2022	2022
SEK m	Quarter 1	Quarter 1	Full year
Revenue	258	199	812
Operating income (EBIT)	143	96	339
Income after financial items	52	64	1,855
Net income for the period	27	53	1,868

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The lower net income in 2023 is related to an impairment of a financial asset.

PARENT COMPANY SUMMARY BALANCE SHEET

2023	2022	2022
Mar 31	Mar 31	Dec 31
12,882	12,773	11,994
3,234	1,620	3,169
16,116	14,393	15,163
4,953	4,532	5,126
6	15	6
5,077	5,612	4,302
6,080	4,234	5,729
16,116	14,393	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.

CONTINGENT LIABILITIES, PARENT COMPANY

2023	2022	2022
Mar 31	Mar 31	Dec 31
7,130	5,532	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
			Growth Growth, %
6,812	5,627	1,185	21.1
		657	11.7
		22	0.4
		680	12.1
		505	9.0
		Quarter 1 Quarter 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.

	Quarter 1	Quarter 1
SEK m			Full year
Operating income (EBIT)	656	463	2,532
Adding back items affecting comparability	12	–	23
Operating income (EBIT) before items affecting comparability	667	463	2,555
Adding back acquisition-related costs	15	19	67
Adding back amortization of acquisition-related intangible assets	34	34	113
Operating income (EBITA)	717	516	2,735
Calculation of operating margin (EBITA), %
EBITA	717	516	2,735
Total revenue	6,812	5,627	25,315
EBITA/Total revenue, %	10.5	9.2	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	Mar 31	Mar 31	Dec 31
Short-term loans	1,812	259	1,867
Long-term loans	5,045	5,587	4,270
Total loans payable	6,857	5,846	6,137
Liquid funds excluding funds in cash processing operations	–2,939	–1,884	–2,264
Other interest-bearing assets	–802	–518	–571
Financial net debt	3,116	3,444	3,302
Lease liabilities	3,948	3,290	3,866
Pension net, assets (-) liabilities (+)	304	245	315
Net debt	7,369	6,979	7,484

	2023	2022	2022
SEK m	Q1	Q1	Full year
Operating income (EBITA), R12	2,936	2,119	2,735
Adding back depreciation/amortization, R12	2,325	1,969	2,249
EBITDA, R12	5,261	4,088	4,984
Net debt/EBITDA (number of times)	1.40	1.71	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	Mar 31	Mar 31	Dec 31
Shareholders' equity	12,696	10,878	12,465
Total assets	34,143	28,334	31,780
Equity ratio, %	37.2	38.4	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, %

2023	2022	2022
Mar 31	Mar 31	Dec 31
8,302	7,334	8,075
740	708	678
342	420	343
1,143	1,040	1,139
5,098	4,495	5,018
3,822	3,225	3,763
947	920	970
3,343	2,778	3,311
1,934	1,438	1,463
4,472	3,273	3,940
–437	–479	–487
–486	–423	–472
–126	–155	–144
–207	–142	–162
–1,036	–802	–859
–4,312	–2,805	–3,453
–1,962	–1,699	–1,906
–1,513	–1,269	–1,269
20,065	17,856	19,948
19,495	16,753	18,896
2,936	2,119	2,735
15.1	12.6	14.5

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.

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
SEK m	Q1	Q1	Full year
Net income for the period, R12	1,710	1,202	1,602
Shareholders' equity (average)	12,208	9,889	11,682
Return on equity, %1)	14.0	12.2	13.7

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.

Stockholm, May 4, 2023

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 May 5, 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 Interim Report January – June 2023 January – September 2023 July 21, 2023 October 26, 2023

Loomis' Annual and Sustainability Report for 2022 is available on www.loomis.com. Loomis' Annual General meeting will be held on May 4, 2023 in Stockholm.

For further information

Jenny Boström, Head of Investor Relations +46 8 522 920 12, 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. The information was submitted for publication, through the agency of the contact person set out above, at 3.00 p.m. (CEST) on May 4, 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.