Loomis — Interim / Quarterly Report 2010

Apr 29, 2010

Interim report for January–March 2010

Continued margin improvement

• Revenue decreased during the period to MSEK 2,771 (3,187). Organic growth was –3 percent (–1).
• Operating income (EBITA)1) amounted to MSEK 181 (185), of which exchange rate effects comprised MSEK –22, and the operating margin was 6.5 percent (5.8).
• Income before taxes amounted to MSEK 149 MSEK (150) and net income after tax was MSEK 104 (105).
• Earnings per share before dilution were SEK 1.43 (1.44), and Earnings per share after dilution were SEK 1.38 (1.44).
• Cash flow from operating activities amounted to MSEK 159 (95), which is equivalent to 88 percent (51) of operating income (EBITA).
• Operations in France were restructured, in order to create a more efficient organization.

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets.

Comments by the President and CEO

During the first quarter, the cash handling market continued to stabilize in Europe and, to a certain extent, in the USA. It is, however, too early to speak of a recovery following the marked economic downturn.

Loomis' operating income, including negative exchange rate effects, was largely unchanged compared to the first quarter of 2009 and amounted to MSEK 181 (185), while operating income excluding exchange rate effects showed an improvement of approximately 10 percent. The operating margin, which is our most important financial key ratio, increased to 6.5 percent from 5.8 percent, as a consequence of a significantly more balanced cost base, compared with one year ago. Cash flow has also improved significantly compared with the first quarter of 2009, thanks, first and foremost, to a better balance between cash flow and seasonal variations in revenue, and amounted to 88 percent of the operating income.

Our volumes in Europe were stable in comparison with the first quarter of 2009, while they decreased slightly in the USA. One should bear in mind that the effects of the recession were already being noted in Europe by the first quarter of 2009.

Also, in the USA, a number of contracts that were up for tender have been lost during the quarter. The reason for this was our continued strategy to prioritize price and profitability over volume. Even though it can be tempting in the short-term to lower margins in order to retain contracts, I am convinced that our strategy is correct in the long run. This is confirmed by the fact that we have improved the operating margin by around 2 percentage points to 7 percent in the USA, compared with the first quarter of 2009. This is despite revenues being impacted by negative organic growth of around 6 percent, explained, equally, by the loss of contracts, the effects of the recession, and technical developments. This latter refers to the reduced revenues from the conversion of bank ATMs for the electronic scanning and registering of checks. A consequence of this is a reduced number of service visits, leading to reduced volumes for Loomis. These conversions have now, for the most part, been undertaken.

The change program, which has been successful across the larger part of the Group during the last few years, has not functioned satisfactorily in the French subsidiary and the operations are under review under a new management team.

As we are well on the way to achieving a balance between expenses and the scope of operations, through increased efficiency at our 370 branch offices, amongst other things, I am of the opinion that we have good premises for meeting our most important short-term financial goal for 2010: an operating margin of 8 percent.

Lars Blecko President and CEO

Loomis offers safe and effective solutions for the distribution, handling and recycling of cash for banks, retailers and other commercial companies via an international network of more than 370 branch offices in 12 European countries and in the USA. The Group has approximately 20,000 employees and annual revenues of SEK 12 billion. Loomis is a Mid-Cap listed Company on the NASDAQ OMX Stockholm.

The Group in brief

Statement of income	2010	2009		2009
(MSEK)	Jan–Mar	Jan–Mar	Change (%)	Full-year
Revenue	2,771	3,187	–13	11,989
Operating income (EBITA)1)	181	185	–2	837
Earnings per share before dilution, SEK	1.43	1.44		6.85
Earnings per share after dilution, SEK	1.38	1.44		6.85
Key ratios
Organic growth, %	–3	–1		–3
Operating margin, %	6.5	5.8		7.0
Cash flow from operating activities as % of
operating income (EBITA)	88	51		94
1) Earnings Before Interest, Tax and Amortization of acquisitions-related intangible fixed assets.

Revenue and operating income

January–March 2010

Revenue in the first quarter amounted to MSEK 2,771 (3,187), corresponding to a reduction of 13 percent in comparison with the same period in the previous year. Organic growth in revenue (adjusted for exchange rate effects, acquisitions and divestitures) amounted to –3 percent, primarily as a result of the weaker economic climate, which led, among other things, to customers, in certain markets, reducing the number of stops. This has also resulted in a decrease in consumption and, as a consequence, lower volumes. The fuel surcharges which Loomis passes on to its customers have had a marginal impact on the Group's organic growth during the first quarter. General price increases in line with expected salary increases have been undertaken during the quarter.

Operating income (EBITA) decreased to MSEK 181 (185), including exchange rate effects of MSEK –22. The operating margin was 6.5 percent (5.8). The continuous work to reduce costs and improve efficiency at under-performing branch offices, combined with the implementation of a flatter organization giving rise to reductions in administrative costs, has improved the margin, in spite of a negative organic growth. The continuation of a low staff turnover has also had a positive impact on income. Operating income (EBIT) decreased to MSEK 177 (181).

Financial net amounted to MSEK –27, compared to MSEK –31 during the first quarter of 2008. This change is a result of a lower average net debt.

Income before taxes amounted to MSEK 149 (150), whilst net income after tax was MSEK 104 (105). The tax rate for the current period is 30 percent (30).

Cash flow

January–March 2010

Cash flow from operating activities of MSEK 159 (95) was equivalent to 88 percent (51) of operating income (EBITA). An increase in the number of customer credit days from the previous quarter had a negative impact on cash flow. As a whole, cash flow from operating activities improved, partly as a consequence of measures taken with the aim of achieving a better balance between payments and the seasonal variations in revenue.

Cash flow from operations amounted to MSEK 212 (184) and from investing activities to MSEK –126 (–168). Cash flow from financing activities amounted to MSEK 37 (–190).

The cash flow effect from items affecting comparability and acquisition-related restructuring costs amounted to MSEK –4 (–2).

Net investments in fixed assets for the period amounted to MSEK 116 (168), which can be compared with the depreciation of fixed assets, MSEK 178 (198). Of total investments for the period, investments in vehicles and security equipment, which comprise the two major categories of recurring maintenance investments, amounted to MSEK 63 (74).

Capital employed

Capital employed amounted to MSEK 4,916 (5,028 per December 31, 2009). The return on capital employed amounted to 17 percent (17 per December 31, 2009).

Shareholders' equity and financing

Shareholders' equity amounted to MSEK 3,140 (3,129 per December 31, 2009). The return on shareholders' equity was 16 percent (16 per December 31, 2009). The equity ratio was 37 percent (38 per December 31, 2009). Net debt amounted to MSEK 1,776 (1,899 per December 31, 2009).

Significant events during the period

In January 2010, Loomis' subsidiary in the USA, Loomis Armored US, Inc., acquired the assets and customer contracts of Hammond Services in the state of Idaho. Customer contracts refer to customers based in Idaho and Montana and the acquisition will provide annual sales amounting to approximately TUSD 750. Loomis will also take on a limited number of employees. The acquired operations are consolidated from January 2010.

On March 1, 2010, Michel Tresch was appointed Operational Director of Loomis France. The former Country President, Christian Lerognon, has left his post with immediate effect. The change is part of a process aimed at making Loomis France a more efficient organization. Georges López Periago, Country President for Loomis' Spanish subsidiary, has, moreover, been appointed as Interim Country President for Loomis France.

In March 2010, Loomis' subsidiary in the USA, Loomis Armored US, Inc., acquired the assets and customer contracts of 1st Armored, Inc. in the state of Michigan. The customer contracts refer to customers in Michigan and the acquisition will provide annual sales of approximately MUSD 1. Loomis will also take on 1st Armored's employees. The acquired operations are consolidated in Loomis from April 2010.

Number of full-time employees

The average number of full-time employees during 2009 was 18,178 (19,361). No significant change has occurred during the first quarter of 2010. The ongoing cost-saving program has primarily reduced the number of overtime hours and extra employees, but has also entailed a reduction in the number of regular employees.

Segments

Loomis Europe	2010	2009		2009
(MSEK)	Jan–Mar	Jan–Mar	Change (%)	Full-year
Revenue	1,765	1,932	–9	7,618
Organic growth, %	–1	–2		–2
Operating income (EBITA)1)	135	147	–8	691
Operating margin, %	7.6	7.6		9.1
1) Earnings Before Interest, Tax and Amortization of acquisition-related intangible fixed assets.

Europe

Revenue and Operating income

January – March 2010

Revenue amounted to MSEK 1,765 (1,932), which is equivalent to a decrease of 9 percent compared to the previous year. Organic growth (adjusted for exchange rate effects, acquisitions and divestitures) amounted to –1 percent. The negative organic growth was primarily an effect of the downturn in the economy which, among other things, resulted in

customers within certain markets reducing the number of stops. General price increases in line with expected wage increases have compensated for these negative effects, to a certain extent. Several markets show signs of stabilization, and a number of markets remain largely unaffected by the current state of the economy.

Operating income (EBITA) amounted to MSEK 135 (147). The operating margin for the period was unchanged compared to the previous year, and amounted to 7.6 percent.

Loomis USA	2010	2009		2009
(MSEK)	Jan–Mar	Jan–Mar	Change (%)	Full-year
Revenue	1,006	1,255	–20	4,372
Organic growth, %	–6	2		–4
Operating income (EBITA)1)	70	67	5	251
Operating margin, %	7.0	5.3		5.7

USA

Revenue and Operating income

January – March 2010

Compared with the same period in the previous year, revenue in the USA decreased by 20 percent to MSEK 1,006 (1,255) during the first quarter. Organic growth (adjusted for exchange rate changes and acquisitions) amounted to –6 percent, mainly due to lost contracts, technical developments and the current economic recession. Lost contracts are to a great extent a consequence of Loomis' strategy to prioritize price and profitability over volume. Technical developments refer to the conversion of bank ATMs to electronically scan and register checks. A consequence of this is a reduced number of service visits, with the corresponding reduction in volumes. The majority of these conversions of bank ATMs have now been carried out. The general price increases which have been carried out during the year have compensated for these negative effects, to a certain extent. The change in fuel prices has had a marginal impact on organic growth during the period.

Operating income (EBITA) increased to MSEK 70 (67). The operating margin for the period was 7.0 percent (5.3), an improvement of 1.7 percentage points compared to the previous year. The work regarding cost-savings and efficiency improvements which was undertaken during 2009 has contributed to the improved margin, despite the negative effect of lower revenue. The strong measures which were undertaken to address falling revenues have, among other things, involved the implementation of a flatter organization, which has resulted in a reduction of administrative costs, and have also included work with route planning and other efficiency improvement measures. These measures, combined, have resulted in fewer overtime hours and a reduction in the number of employees.

Risks and Uncertainties

Operational Risks

Operational risks are risks associated with the day-to-day operations and the services offered by the Company to its customers. These risks can result in negative consequences when the services performed do not meet the established requirements and result in loss of property, damage to property or personal injury.

Loomis' strategy for operational risk management is based on two fundamental principles:

• No loss of life.

• Balance between profitability and risk of theft and robbery.

Although the risk of robbery is unavoidable in cash handling, Loomis continually endeavors to minimize this risk. The most vulnerable situations are at the roadside, in the vehicles and during counting.

Loomis' operations are insured, implying that the maximum cost of each theft or robbery incident is limited to the deductible amount, as stipulated in the insurance cover.

The Parent Company, Loomis AB, is deemed not to have any significant operational risks, as the Company does not engage in operations, other than the conventional control of subsidiaries and the management of certain Group matters.

The major risks deemed to apply to the Parent Company refer to fluctuations in exchange rates, particularly as regards USD and EUR, increased interest rates and the risk of possible write-down requirements.

Factors of uncertainty

Specific uncertainties for 2010 relate to the effects of France restructuring, as well as uncertainties related to the current economic recession.

The economic trend during the first quarter has impacted certain countries and geographic markets, and it cannot be ruled out that revenue and income for 2010 may be further impacted.

An economic downturn has both positive and negative effects on the market for cash handling services. Positive effects include an increase in the proportion of cash purchases compared with credit card purchases, and lower rates of employee turnover. Negative effects include the increased risk of robbery, reduced consumption and an increased risk of bad debt losses. Among the negative effects, an increased risk of robbery and reduced consumption are the most notable.

Seasonal Variations

The Company's earnings fluctuate across the seasons, which should be taken into consideration when making assessments on the basis of interim financial information. The primary reason for these seasonal variations is that the need for cash handling services increases during the vacation period, July–August, and during holidays at the end of the year, i.e. in November–December.

Parent Company

Summary Statement of Income	2010	2009	2009
(MSEK)	Jan–Mar	Jan–Mar	Full-year
Gross income	61	66	215
Operating income (EBIT)	40	44	148
Income after financial items	56	78	490
Net income for the period	41	58	358
Summary Balance Sheet	2010	2009	2009
(MSEK)	Mar 31	Mar 31	Dec 31
Fixed assets	6,731	7,220	6,823
Current assets	1,000	480	1,000
Total assets	7,731	7,699	7,823
Shareholders' equity	4,662	4,554	4,609
Liabilities	3,069	3,145	3,215
Total shareholders' equity and liabilities	7,731	7,699	7,823

The Parent Company of the Group does not conduct operating activities, but is comprised of the Group management and central functions. The number of employees at the head office was 14 during the first quarter of 2010.

The Parent Company's revenue refers, primarily, to franchise fees and other revenues from subsidiaries. The change in income is primarily related to a reduction in net financial items.

The Parent Company's fixed assets are comprised primarily of shares in subsidiaries and loan receivables with subsidiaries. Liabilities are primarily comprised of interestbearing liabilities.

The Swedish Tax Agency has refused a number of deductions related to Loomis AB's costs for the LCM operations, and the case has been appealed at the Administrative Courts. Any negative outcome in these matters will only have a cash flow effect on the Parent Company and the Loomis AB Group.

Other significant events

For critical estimates and assessments and contingent liabilities, refer to pages 44 and 69 in the annual report for 2009.

Accounting Principles

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

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The main accounting principles according to IFRS, which comprise the accounting standards for the preparation of this interim report, can be found in Note 2 on pages 38–43 of the 2009 Annual Report.

The impact on the Group of the new and revised standards and interpretations coming into effect on 1 January 2010 are described in Note 2, on page 38–39 of the published

As no material changes have taken place compared with the information presented in the 2009 annual report, no further comments regarding such matters have been presented in this interim report.

2009 Annual Report. The revised standards affecting the consolidated accounts are IFRS 3 (Revised), "Business Combination" and IAS 27 (Amendment), "Consolidated and Separate Financial Statements". The new accounting principles have been applied from 1 January 2010, without the recalculation of comparative figures for previous years.

The Parent Company's financial reports have been prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Accounting for Legal Entities. The main accounting principles for the Parent Company can be found in Note 36 on page 75 of the 2009 Annual Report.

Outlook for 2010

The Company deems the premises for reaching the previously communicated goal of an operating margin of 8 percent during 2010 as good.

Stockholm April 29, 2010

Lars Blecko President and CEO

This report has not been the subject to review by the Company's auditors.

Statement of income	2010	2009		2009	2008
(MSE K)	Jan–Mar	Jan–Mar	Change (%)	Full-year	Full-year
Revenue, continuing operations	2,771	3,160	–12	11,934	10,899
Revenue, acquisitions, net	0	28		55	360
Total revenue	2,771	3,187	–13	11,989	11,258
Production expenses	–2,150	–2,507		–9,374	–8,800
Gross income	621	681	–9	2,615	2,459
Selling and Administrative expenses	–440	–495		–1,778	–1,711
Operating income before amortization (EBITA)1)	181	185	–2	837	748
Amortization of acquisition-related intangible assets	–4	–4		–17	–15
Operating income (EBIT)	177	181	–3	821	733
Net financial items	–27	–31		–115	–164
Income before taxes	149	150	–0	706	569
Income tax	–45	–45		–206	–145
Net income for the period2)	104	105	–0	500	424
Key ratios
Organic growth, %	–3	–1		–3	3
Gross margin, %	22.4	21.4		21.8	21.8
Operating margin before amortization, %	6.5	5.8		7.0	6.6
Selling and Administrative expenses
as % of total revenue	–15.9	–15.5		–14.8	–15.2
Net margin, %	3.8	3.3		4.2	3.8

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. The item also excludes acquisition-related restructuring costs and other items affecting comparability. 2) Net income for the period is entirely attributable to the Parent Company's shareholders.

Statement of comprehensive income	2010	2009	2009	2008
(MSE K)	Jan–Mar	Jan–Mar	Full-year	Full-year
Net income for the period	104	105	500	424
Actuarial gains and losses after tax	–40	–44	–49	44
Translation differences (exchange rate differences)	–49	103	–150	348
Cash flow hedges after tax	–4	–3	–6	–
Other comprehensive income for the year, net after tax	–94	56	–205	392
Total comprehensive income for the period1)	11	161	295	816

1) The comprehensive income for the period is entirely attributable to the Parent Company's shareholders.

Data per share1)	2010	2009	2009	2008
(SEK)	Jan–Mar	Jan–Mar	Full-year	Full-year
Earnings per share before dilution	1.43	1.44	6.85	5.80
Earnings per share after dilution2)	1.38	1.44	6.85	n/a
Earnings per share, fully diluted3)	1.38	1.39	6.62	n/a
Dividend	–	–	2.25	n/a
Number of outstanding shares (millions)	73.0	73.0	73.0	73.0
Average number of outstanding shares (millions)	73.0	73.0	73.0	73.0

1) During 2008, the share structure of Loomis AB was changed as a result of a reverse split (1:5). Earnings per share have been adjusted to reflect this change.

2) The average price per share during the first quarter of 2010 amounted SEK 87.49.

3) Earnings per share, fully diluted, show the earnings per share as if all outstanding warrants had been converted into shares. At full dilution, the number of outstanding shares would amount to 75.6 million.

Balance Sheet	2010	2009	2009	2008
(MSE K)	Mar 31	Mar 31	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	2,739	3,100	2,760	2,965
Acquisition-related intangible assets	73	76	65	79
Other intangible assets	36	46	41	49
Tangible fixed assets	2,738	3,026	2,878	2,967
Non-interest-bearing financial fixed assets	367	340	343	319
Interest-bearing financial fixed assets	45	51	46	60
Total fixed assets	5,999	6,638	6,132	6,439
Current assets
Non-interest-bearing current assets	1,931	2,139	1,631	1,851
Interest-bearing financial current assets	3	112	3	355
Liquid funds	500	352	387	268
Total current assets	2,433	2,603	2,020	2,474
TOTAL ASSETS	8,432	9,241	8,153	8,913
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity1)	3,140	3,159	3,129	2,976
Long-term liabilities
Interest-bearing long-term liabilities	1,276	64	1,480	72
Non-interest-bearing provisions	857	864	820	808
Total long-term liabilities	2,133	929	2,299	880
Current liabilities
Income tax liabilities	191	235	171	209
Non-interest-bearing current liabilities	1,920	2,020	1,699	1,860
Interest-bearing current liabilities	1,048	2,899	855	2,987
Total current liabilities	3,159	5,154	2,725	5,057
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	8,432	9,241	8,153	8,913
Key ratios
Equity ratio, %	37	34	38	33

1) Shareholders' equity is entirely attributable to the Parent Company's shareholders.

Additional information
Intangible assets		Mar 31, 2010			Mar 31, 2009			Dec 31, 2009
		Acquisition			Acquisition			Acquisition
(MSE K)	Goodwill	related	Other	Goodwill	related	Other	Goodwill	related	Other
Opening balance	2,760	65	41	2,965	79	49	2,965	79	49
Acquisitions/ investments	–	15	2	–	–	3	–	7	20
Amortization/ impairment	–	–4	–4	–	–4	–5	–	–17	–24
Divestitures	–	–	–	–	–	–	–	–	–0
Translation difference	–21	–3	–2	134	1	0	–205	–4	–2
Reclassifications	–	–	–0	–	–	–0	–	–	–2
Closing balance	2,739	73	36	3,100	76	46	2,760	65	41

Change in shareholders' equity	2010	2009	2009	2008
(MSE K)	Jan–Mar	Jan–Mar	Full-year	Full-year
Opening shareholders' equity	3,129	2,976	2,976	1,505
Actuarial gains and losses after tax	–40	–44	–49	44
Translation differences	–49	103	–150	348
Cash flow hedges after taxes	–4	–3	–6	–
Total income/expenses reported directly in shareholders' equity	–94	56	–205	392
Net income for the period	104	105	500	424
Comprehensive income for the period	11	161	295	816
Shareholders' contribution received	–	–	–	900
Dividend paid to Parent Company's shareholders	–	–	–164	–245
Issue of warrants	–	22	22	–
Closing shareholders' equity	3,140	3,159	3,129	2,976

Statement of cash flows	2010	2009	2009	2008
(MSE K)	Jan–Mar	Jan–Mar	Full-year	Full-year
Income before taxes	149	150	706	569
Items not affecting cash flow, items affecting comparability and acquisition-related restructuring costs	206	232	880	396
Financial items received/paid.	–31	–38	–109	–168
Income tax paid	–27	–39	–147	–6
Change in accounts receivable	–63	15	85	79
Change in other operating capital employed	–21	–135	–82	–231
Cash flows from operations	212	184	1,333	640
Cash flows from investing activities	–126	–168	–813	–879
Cash flows from financing activities	37	–190	–747	641
Cash flow for the period	123	–174	–226	402
Liquid funds at beginning of the period	387	623	623	203
Translation differences in liquid funds	–10	15	–10	19
Liquid funds at end of period1)	500	465	387	623

1) Interest-bearing financial current assets with maturity dates within 90 days were included in liquid funds in December 2008 and March 2009.

Statement of cash flows	2010	2009	2009	2008
(MSE K)	Jan–Mar	Jan–Mar	Full-year	Full-year
Additional information
Operating income before amortization (EBITA)1)	181	185	837	748
Depreciation	178	198	752	675
Change in accounts receivable	–63	15	85	79
Change in other operating capital employed	–21	–135	–82	–231
Cash flow from operating activites before investments	275	263	1,592	1,271
Investments in fixed assets, net	–116	–168	–803	–829
Cash flow from operating activities	159	95	789	442
Financial items received/paid	–31	–38	–109	–168
Income tax paid	–27	–39	–147	–6
Non-restricted cash flow	100	18	533	268
Cash flow effect of items affecting comparability and
acquisition-related restructuring costs	–4	–2	–3	–457
Divestiture of operations	–	–	–	1
Acquisition of operations	–10	–	–9	–52
Dividend paid	–	–	–164	–245
Group contributions paid	–	–	–	–182
Shareholders' contribution received	–	–	–	900
Repayments of leasing liabilities	–2	–8	–38	–43
Change in interest-bearing net debt excluding liquid funds	39	–183	–545	210
Cash flow for the period	123	–174	–226	402
Key ratios
Cash flow from operating activities as % of operating income
before amortization (EBITA)	88	51	94	59
Capital expenditure in relation to depreciation	0.7	0.9	1.1	1.2
Capital expenditure in % of total revenue	4.2	5.3	6.7	7.4

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. This item also excludes acquisition-related restructuring costs and other items affecting comparability.

Segment overview	2010	2009	2009	2008
(MSE K)	Jan–Mar	Jan–Mar	Full-year	Full-year
Europe
Income	1,765	1,932	7,618	7,320
Organic growth, %	–1	–2	–2	2
Operating income before amortization (EBITA) 1)	135	147	691	644
Operating margin before amortization, %	7.6	7.6	9.1	8.8
USA
Income	1,006	1,255	4,372	3,938
Organic growth, %	–6	2	–4	6
Operating income before amortization (EBITA)1)	70	67	251	197
Operating margin before amortization, %	7.0	5.3	5.7	5.0
Other2)
Revenue	–	–	–	–
Operating income before amortization (EBITA) 1)	–24	–29	–104	–93
Group total
Revenue	2,771	3,187	11,989	11,258
Organic growth, %	–3	–1	–3	3
Operating income before amortization (EBITA) 1)	181	185	837	748
Operating margin before amortization, %	6.5	5.8	7.0	6.6

Segment overview – By quarter	2010		2009				2008
(MSE K)	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun Jan–Mar		Oct–Dec	Jul–Sep		Apr–Jun Jan–Mar
Europe
Revenue	1,765	1,892	1,891	1,902	1,932	1,931	1,855	1,773	1,761
Organic growth, %	–1	–1	–2	–4	–2	1	2	3	1
Operating income before amortization (EBITA) 1)	135	186	203	154	147	199	175	139	131
Operating margin before amortization, %	7.6	9.8	10.7	8.1	7.6	10.3	9.4	7.8	7.4
USA
Revenue	1,006	988	1,013	1,115	1,255	1,176	981	896	885
Organic growth, %	–6	–6	–7	–4	2	4	9	7	4
Operating income before amortization (EBITA) 1)	70	71	55	58	67	66	52	48	31
Operating margin before amortization, %	7.0	7.1	5.4	5.2	5.3	5.6	5.3	5.3	3.5
Other 2)
Revenue	–	–	–	–	–	–	–	–	–
Operating income before amortization (EBITA) 1)	–24	–20	–25	–30	–29	–26	–22	–24	–22
Group total
Revenue	2,771	2,880	2,904	3,018	3,187	3,107	2,836	2,669	2,647
Organic growth, %	–3	–3	–4	–4	–1	2	4	4	2
Operating income before amortization (EBITA) 1)	181	237	233	183	185	239	205	163	141
Operating margin before amortization, %	6.5	8.2	8.0	6.1	5.8	7.7	7.2	6.1	5.3

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. This item also excludes acquisition-related restructuring costs and other items affecting comparability. 2) The category Other consists of the Parent Company's costs and certain other Group items.

Quarterly data	2010		2009			2008
(MSE K)	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar
Statement of income
Revenue	2,771	2,880	2,904	3,018	3,187	3,107	2,836	2,669	2,647
Gross income	621	643	648	643	681	673	647	579	560
Operating income before amortization (EBITA)1)	181	237	233	183	185	239	205	163	141
Operating income after amortization,
before items affecting comparability and
acquisition-related restructuring expenses	177	233	229	179	181	235	202	159	136
Key ratios
Operating margin before amortization, %	6.5	8.2	8.0	6.1	5.8	7.7	7.2	6.1	5.3
Cash flow
Current activities	212	537	306	306	184	428	517	–102	–203
Investing activities	–126	–274	–153	–218	–168	–292	–205	–263	–119
Financing activities	37	–296	–4	–257	–190	301	–329	374	295
Cash flow for the period	123	–32	149	–169	–174	436	–17	9	–27
Capital employed and financing
Operating capital employed	2,150	2,231	2,319	2,358	2,480	2,353	2,091	2,037	2,069
Goodwill	2,739	2,760	2,713	2,959	3,100	2,965	2,666	2,416	2,392
Acquisition-related intangible assets	73	65	68	77	76	79	74	67	70
Other operating capital	–46	–27	1	45	–49	–45	76	170	–308
Operating capital	4,916	5,028	5,101	5,439	5,607	5,351	4,907	4,690	4,222
Key ratios
Operating capital employed as % of revenue	19	19	19	19	21	21	19	18	18
Operating capital as a % of revenue	42	42	42	45	48	48	45	42	38
Net debt	1,776	1,899	2,131	2,447	2,448	2,375	2,399	3,333	2,942
Shareholders' equity	3,140	3,129	2,970	2,992	3,159	2,976	2,508	1,357	1,280

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. This item also excludes acquisition-related restructuring costs and other items affecting comparability.

Statement of income – By quarter	2010	2009				2008
(MSE K)	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar
Revenue, continuing operations	2,771	2,879	2,901	2,994	3,160	3,081	2,796	2,521	2,500
Revenue, acquisitions, net	0	1	3	23	28	26	40	148	147
Total revenue	2,771	2,880	2,904	3,018	3,187	3,107	2,836	2,669	2,647
Production expenses	–2,150	–2,237	–2,256	–2,375	–2,507	–2,434	–2,189	–2,090	–2,086
Gross income	621	643	648	643	681	673	647	579	560
Selling and Administrative expenses	–440	–407	–415	–460	–495	–433	–441	–416	–420
Operating income before
amortization (EBITA)1)	181	237	233	183	185	239	205	163	141
Amortization of acquisition-related
intangible assets	–4	–4	–4	–4	–4	–4	–3	–3	–4
Operating income (EBIT)	177	233	229	179	181	235	202	159	136
Net financial items	–27	–26	–26	–31	–31	–43	–45	–40	–36
Income before taxes	149	206	202	148	150	192	157	119	101
Income tax	–45	–56	–61	–44	–45	–78	–73	38	–33
Net income for the period2)	104	150	142	103	105	115	84	157	68
Key ratios
Organic growth, %	–3	–3	–4	–4	–1	2	4	4	2
Gross margin, %	22.4	22.3	22.3	21.3	21.4	21.6	22.8	21.7	21.2
Selling and Administrative expenses
as % of Total revenue	–15.9	–14.1	–14.3	–15.3	–15.5	–14.0	–15.6	–15.6	–15.9
Operating margin before amortization	6.5	8.2	8.0	6.1	5.8	7.7	7.2	6.1	5.3
Net margin, %	3.8	5.2	4.9	3.4	3.3	3.7	3.0	5.9	2.6
Earnings per share before dilution (SEK)	1.43	2.06	1.94	1.42	1.44	1.57	1.15	2.15	0.93

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. The items also excludes acquisition-related restructuring costs and other items affecting comparability. 2) Income for the period is entirely attributable to the Parent Company's shareholders.

Balance Sheet – By quarter	2010	2009			2008
(MSE K)	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
ASSETS
Fixed assets
Goodwill	2,739	2,760	2,713	2,959	3,100	2,965	2,666	2,416	2,392
Acquisition-related intangible assets	73	65	68	77	76	79	74	67	70
Other intangible assets	36	41	39	47	46	49	45	44	41
Tangible fixed assets	2,738	2,878	2,754	2,995	3,026	2,967	2,674	2,501	2,388
Non-interest-bearing financial
fixed assets	367	343	323	371	340	319	322	339	266
Interest-bearing financial fixed assets	45	46	86	83	51	60	60	152	150
Total fixed assets	5,999	6,132	5,983	6,532	6,638	6,439	5,840	5,518	5,307
Current assets
Non-interest-bearing current assets	1,931	1,631	1,843	2,030	2,139	1,851	2,030	2,007	1,988
Interest-bearing financial current assets	3	3	1	11	112	355	1,068	–	369
Liquid funds1)	500	387	414	305	352	268	174	177	166
Total current assets	2,433	2,020	2,259	2,346	2,603	2,474	3,271	2,183	2,522
TOTAL ASSETS	8,432	8,153	8,242	8,878	9,241	8,913	9,112	7,701	7,830
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders equity2)	3,140	3,129	2,970	2,992	3,159	2,976	2,508	1,357	1,280
Long-term liabilities
Interest-bearing long-term liabilities	1,276	1,480	1,450	1,563	64	72	69	79	91
Non-interest-bearing provisions	857	820	720	864	864	808	852	770	671
Total long-term liabilities	2,133	2,299	2,170	2,427	929	880	921	849	761
Current liabilities
Tax liabilities	191	171	162	162	235	209	170	134	99
Non-interest-bearing current liabilities	1,920	1,699	1,757	2,014	2,020	1,860	1,882	1,779	2,153
Interest-bearing current liabilities	1,048	855	1,183	1,283	2,899	2,987	3,632	3,583	3,537
Total current liabilities	3,159	2,724	3,102	3,459	5,154	5,057	5,683	5,496	5,789
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	8,432	8,153	8,242	8,878	9,241	8,913	9,112	7,701	7,830
Key ratios
Equity ratio, %	37	38	36	34	34	33	28	18	16

1) Liquid funds include cash pools as of December 2008. Cash pools previously formed a portion of internal financing from Securitas and were therefore netted against other internal financing. 2) Shareholders' equity is entirely attributable to the Parent Company's shareholders.

Cash flow – By quarter	2010	2009 2008
(MSE K)	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar
Additional information
Operating profit before
amortization (EBITA)1)	181	237	233	183	185	239	205	163	141
Depreciation	178	175	184	196	198	187	169	162	157
Change in accounts receivable	–63	132	–62	–0	15	172	17	–33	–77
Change in other operating
capital employed	–21	15	13	24	–135	–84	175	64	–385
Cash flow from operating activities
before investments	275	559	368	402	263	514	566	355	–164
Investments in fixed assets, net	–116	–274	–153	–209	–168	–292	–196	–222	–119
Cash flow from operating activities	159	286	215	193	95	222	370	133	–283
Financial items received/paid	–31	–25	–31	–15	–38	–45	–45	–42	–36
Income tax paid	–27	3	–31	–81	–39	–16	12	–6	4
Free cash flow	100	264	154	98	18	161	337	85	–315
Cash flow effect of items affecting comparability and acquisition-related
restructuring costs	–4	–0	–0	–1	–2	–25	–15	–410	–7
Divestiture operations	–	–	–	–	–	–	1	–	–
Acquisition of operations	–10	–	–	–9	–	–	–11	–41	–
Dividend paid	–	–	–	–164	–	–	–	–	–245
Group contributions paid	–	–	–	–	–	–	–	–	–182
Shareholders' contribution received	–	–	–	–	–	500	400	–	–
Repayments leasing liabilities	–2	–6	–12	–12	–8	–1	–8	–12	–22
Change in interest-bearing
net debt excluding liquid funds	39	–290	8	–80	–183	–199	–720	386	743
Cash flow for the period	123	–32	149	–169	–174	436	–17	9	–27
Key ratios
Cash flow from operating activities
as % of operating income before amortization (EBITA)	88	121	93	106	51	93	180	82	n/a

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. The item also excludes acquisition-related restructuring costs and other items affecting comparability.

Key ratios	2010	2009	2009	2008
	Jan–Mar	Jan–Mar	Full-year	Full-year
Operating margin before amortization, %	6.5	5.8	7.0	6.6
Cash flow from operating activities as % of operating income
before amortization (EBITA)	88	51	94	59
Return on capital employed, %	17	14	17	14
Organic growth, %	–3	–1	–3	3
Total growth, %	–13	20	6	–1
Earnings per share before dilution, SEK	1.43	1.44	6.85	5.80
Equity ratio, %	37	34	38	33
Net debt, MSE K	1,776	2,448	1,899	2,375

Definitions

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

Cash flow for the period before financial items, income tax, items affecting comparability, acquisitions and divestitures of operations and financing activities, as a percentage of operating income before amortization (EBITA).

Return on capital employed, %

Operating income before amortization (EBITA) (rolling 12 months) as a percentage of the closing balance of capital employed.

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 income.

Earnings per share

Net income for the period in relation to the number of shares outstanding at the end of the period.

Calculation for Jan–Mar 2010: 104 / 73,011,780 x 1,000,000 = 1.43

Operating income before amortization (EBITA)

Earnings before interest, taxes and amortization of acquisition-related intangible fixed assets, acquisitionrelated restructuring expenses and other items affecting comparability.

Operating margin before amortization

Earnings before interest, taxes and amortization of acquisition-related intangible fixed assets, acquisition-related restructuring expenses and other items affecting comparability, as a percentage of revenue.

Operating income after amortization (EBIT)

Earnings before interest and tax.

Return on equity

Net income for the period (rolling 12 months) as a percentage of the closing balance of shareholders' equity.

Net margin

Net income for the period after tax as a percentage of total revenue.

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.

Information meeting

An information meeting will be held on April 30, 2010 (09:30 CET). This meeting will be held at Hallvarsson & Halvarsson, Sveavägen 20, Stockholm.

To listen to the meeting proceedings by telephone (and to participate in the question and answer session), please register in advance by using the following link: https://eventreg2.conferencing.com/webportal3/reg.html?Acc=441461&Conf=201209 and follow the instructions, or by calling +46 (0)8 505 201 14 or +44 (0)207 162 0177, code 861096. The meeting can also be viewed online at www.loomis.com/investors-and-media/presentations.

A recording of the webcast will be available at www.loomis.com/webbsändningar after the information meeting, and a telephone recording of the meeting will be available until midnight on May 14 on telephone number +46(0)8 505 203 33 and +44 (0)207 031 4064, code 861096.

Future reporting and meetings

Interim report January–June 30 July 2010 Interim report January–September 5 November 2010 Full-year report January–December 10 February 2011

For further information:

Lars Blecko, CEO +46 (0)70 641 49 10, e-mail: lars.blecko@loomis.com

Questions can also be sent to: ir@loomis.com. Refer also to the Loomis website: www.loomis.com

Loomis AB discloses information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. This information was submitted for publication on Thursday, April 29, 2010 at 14:00 (CET).

Loomis AB (publ.) Corporate Identity Number 556620-8095, Box 902, SE-170 09 Solna Telephone: +46 8-522 920 00, Fax: +46 8-522 920 10 www.loomis.com