Loomis — Interim / Quarterly Report 2011

Jul 29, 2011

INTERIM report

January – June 2011

Managing cash in society.

This is a translation of the original Swedish Interim Report. In the event of differences between the English translation and the Swedish original, the Swedish Interim Report shall prevail.

Organic growth

• Revenue during the period amounted to MSEK 5,210 (5,577). Organic growth was 1 percent (–2).
• Operating income (EBITA)1) amounted to MSEK 374 (379), of which exchange rate effects comprised MSEK – 47, and the operating margin was 7.2 percent (6.8).
• Income before taxes amounted to MSEK 249 (316) and net income after tax was MSEK 168 (207).
• Earnings per share before dilution were SEK 2.31 (2.84), and Earnings per share after dilution were SEK 2.23 (2.74).
• Cash flow from operating activities amounted to MSEK 190 (481), which is equivalent to 51 percent (127) of operating income (EBITA).

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

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 centers of operation in 14 European countries and in the USA. The Group has approximately 20,000 employees and annual revenues of SEK 11 billion. Loomis is a Mid-Cap listed Company on the NASDAQ OMX Stockholm.

Comments by the President and CEO

»For the first time since we

became a listed company, we have

experienced positive organic growth

during one individual quarter.«

Operating income, EBITA, amounted to MSEK 374 (379) during the first half-year, including negative exchange rate effects of MSEK 47, which demonstrates a real improvement of MSEK 42 compared to the same period during the previous year. The operating margin improved to 7.2 percent compared to 6.8 percent during the first six-month period of 2010. The margin for the rolling 12-month period amounts to 8.2 percent, which shows that we have started on the journey to our next long-term margin goal, an operating margin of 10 percent by 2014, at the latest.

For the first time since we became a listed company, we have experienced a positive organic growth during one individual quarter. The organic growth during the second quarter amounted to 2 percent for the Group whereas the organic growth in Europe and USA amounted to 3 percent and 0 percent, respectively. Changes in fuel surcharges had a positive impact of 2 percent on the organic growth in the USA.

The operating margin for the Group amounted to 7.3 (7.0) percent during the second quarter.

The operating margin in Europe increased to 8.8 percent compared to 8.1 percent for the corresponding period during the previous year. The improvement in Europe is primarily attributable to the positive development of the restructuring work in France, which began in spring 2010 and is continuing according to plan. During the first half-year, we have taken measures such as closing approximately 10 percent of the branches, with the aim of increasing synergies and to reduce the risk exposure. Of all the markets in Europe in which we operate, the French market is the one that has been most vulnerable to heavy robberies in recent years. The margin for the quarter has, however, been negatively affected by costs for efficiency improvements in the Spanish operations necessitated by the structural changes in the Spanish banking sector. These structural changes have entailed that a large number of bank offices which were previously customers of Loomis have been closed, which has resulted in a reduction in our number of stops and, consequently, our volumes. The reduction in volumes was primarily attributable to the first quarter of the year.

In the USA, the operating margin for the second quarter amounted to 6.9 percent (7.6). The margin has been affected by costs attributable to the comprehensive work towards integrating the operations acquired from Pendum. The ongoing integration comprises, among other things, adjustments for the optimization of routes and the harmonization of internal routines. The work will be completed, to a large degree, during the month of August and has, thus far, proceeded as planned.

Operating income, EBIT, amounted to MSEK 114 for the second quarter, compared to MSEK 193 for the second quarter of 2010. Operating income, EBIT, for the second quarter has been negatively impacted by an item affecting comparability of MSEK –53, related to incorrect valuation of assets and liabilities in prior years in our Austrian subsidiary, as well as to acquisition-related costs of MSEK –23, which are mainly related to the acquisition in the USA.

During the quarter, we have announced the acquisition of 60 percent of the shares in the Turkish cash handling company, Erk Armored. The operations were taken over on July 1 this year.

The two acquisitions undertaken during the first half-year are both clear examples of the acquisition strategy which we announced at the end of 2010. The strategy states that our acquisitions will fall into two categories. We will either make acquisitions on existing, often relatively mature markets, where the acquisition strengthens our position and further complements our existing services, such as the acquisition of Pendum, or conduct acquisitions on new markets with low levels of consolidation and maturity, thereby offering high potential for organic growth, such as the acquisition of Erk Armored. The market in Turkey is fragmented and we see very positive potential for growth in excess of 10 percent per year.

Lars Blecko

President and CEO

The Group in Brief

	2011	2010	2011	2010	2010	R12
MSEK	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	2,683	2,806	5,210	5,577	11,033	10,665
Operating income (EBITA)1)	195	198	374	379	882	877
Earnings per share before dilution, SEK	0.89	1.41	2.31	2.84	6.80	6.27
Earnings per share after dilution, SEK	0.86	1.36	2.23	2.74	6.57	6.05
Key ratios
Real growth, %	7	–1	4	–2	–1	2
Organic growth, %	2	–1	1	–2	–1	0
Operating margin, %	7.3	7.0	7.2	6.8	8.0	8.2
Cash flow from operating activities as % of operating income (EBITA)	58	163	51	127	106	74

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

Operating margin (EBITA)

Operating margin (EBITA) per quarter

Operating margin (EBITA) rulling 12 months

Revenue and operating income

April – June 2011

Revenue in the second quarter amounted to MSEK 2,683 (2,806). Organic growth in revenue (adjusted for exchange rate effects, acquisitions and divestitures) amounted to 2 percent. The positive organic growth seen in the majority of the European countries was partly offset by a negative organic growth both in the Spanish market and in the USA. The negative organic growth in the Spanish market, which is a result of the ongoing structural changes within the banking sector, declined during the second quarter when compared with the negative growth seen during the first quarter. The negative organic growth in the USA can mainly be attributed to the effect of previously lost contracts which have now been terminated. Lost contracts are, to a great extent, a consequence of Loomis' strategy to prioritize price and profitability over volume. The fuel surcharges which Loomis passes on to its customers have had a positive impact of 1 percent on the Group's organic growth. Price increases in line with wage increases have been undertaken during the quarter.

Operating income (EBITA) amounted to MSEK 195 compared with MSEK 198 during the second quarter of 2010. The deviation includes exchange rate effects of MSEK –24. The operating margin amounted to 7.3 percent (7.0). The continuous, Group-wide work to reduce costs and improve efficiency contributed to the improved margin, as well as the restructuring work in France, initiated during the first quarter of 2010 and continuing during 2011, has continued to provide results. The operating margin was, however, negatively impacted by the ongoing integration of the cash handling operations acquired from Pendum. The integration is continuing in a satisfactory manner.

Staff turnover during the second quarter has remained at an acceptable level.

Operating income (EBIT) amounted to MSEK 114 (193), including acquisition-related costs of MSEK –23 and an item affecting comparability of MSEK –53. The item affecting comparability, which has been communicated prior to the publishing of this interim report, derives from previous periods and is related to incorrect valuation of assets and liabilities in the Austrian subsidiary. For further information, see page 7.

Financial net amounted to MSEK –16, compared to MSEK –26 during the second quarter of 2010. The improvement is primarily a result of the more beneficial conditions of the new loan facilities, which were signed during the first half of 2011.

Income before taxes amounted to MSEK 98 (167), whilst net income after taxes was MSEK 65 (103). The tax rate for the period was 33 percent (38). The tax rate for the second quarter 2010 was negatively impacted by a new tax legislation in France, as well as by a provision for tax audits which were ongoing throughout the Group during at that time.

January – June 2011

Revenue in the first half-year amounted to MSEK 5,210 (5,577) and the organic growth in revenue (adjusted for exchange rate effects, acquisitions and divestitures) amounted to 1 percent. The majority of the European countries showed a positive organic growth which was, however, partly offset by a negative organic growth both in the Spanish market and in the USA. The negative organic growth in the Spanish market is attributable to the ongoing structural changes within the banking sector, while the negative organic growth in the USA is mainly attributable to previously lost contracts, which have now been terminated. Lost contracts are, to a great extent, a consequence of Loomis' strategy to prioritize price and profitability over volume. The organic growth for the Group was positively impacted by 1 percent due to an increase in the fuel surcharges which Loomis passes on to its customers. Price increases in line with wage increases have been undertaken during the first six months of the year.

Operating income (EBITA) amounted to MSEK 374 ( MSEK 379). The deviation includes exchange rate effects of MSEK –47. The operating margin amounted to 7.2 percent compared with 6.8 percent for the corresponding period during the previous year. The continuous work to reduce costs and improve efficiency within the Group contributed to the improved margin. Furthermore, the margin was impacted by the restructuring work in France, initiated during the first quarter of 2010 and continuing during 2011, continuing to provide results. The ongoing integration of the cash handling operations acquired from Pendum has, however, impacted the operating margin negatively. The integration is continuing in a satisfactory manner.

Staff turnover during the first half-year has remained at an acceptable level.

Operating income (EBIT) amounted to MSEK 281 (370), including acquisition-related costs of MSEK –31 and an item affecting comparability of MSEK –53. The item affecting comparability, which has been communicated prior to the publishing of this interim report, derives from previous periods and is related to incorrect valuation of assets and liabilities in the Austrian subsidiary. For further information, see page 7.

Financial net amounted to MSEK –32, compared to MSEK –54 during the first half-year of 2010. Lower average net debt and the more beneficial conditions of the new loan facilities which were signed during the first half of 2011, are the main reasons behind the improvement.

Income before taxes amounted to MSEK 249 (316), whilst net income after taxes was MSEK 168 (207). The tax rate for the period was 32 percent (34).

Cash flow

April–June 2011

Cash flow from operating activities of MSEK 113 (323) corresponded to 58 percent (163) of operating income (EBITA).

Cash flow from operations amounted to MSEK 221 (407) and from investing activities amounted to MSEK –856 (–177). Cash flow from financing activities amounted to MSEK 567 (–430). Cash flow for the period includes a shareholder dividend of MSEK 256.

The cash flow effect from items affecting comparability amounted to MSEK 0 (–1).

Net investments in fixed assets for the period amounted to MSEK 195 (168), which can be compared with the depreciation of fixed assets of MSEK 159 (177). Investments in vehicles and security equipment, which comprise the two major categories of recurring maintenance investments, amounted to MSEK 103 (101).

January–June 2011

Cash flow from operating activities of MSEK 190 (481) corresponded to 51 percent (127) of operating income (EBITA). Cash flow for the period has been affected by the settlement of a VAT liability attributable to the operations of LCM, which were liquidated during 2008. For further information regarding this matter, see below.

Cash flow from operations amounted to MSEK 281 (620) and from investing activities amounted to MSEK –979 (–304). Cash flow from financing activities amounted to MSEK 612 (–393).

The cash flow has been negatively impacted by the settlement of the VAT and income tax liabilities, amounting to MSEK 18 and MSEK 55 respectively, attributable to the liquidation of the operations of LCM, in accordance with the ruling of the County Administrative Court. Provisions had previously been made for the amounts paid to the Swedish Tax Agency and, therefore, the payment has not impacted earnings for the period. These cases are described in the Annual Report for 2010.

The cash flow effect from items affecting comparability amounted to MSEK –1 (–6).

Net investments in fixed assets for the period amounted to MSEK 312 (284), which can be compared with the depreciation of fixed assets of MSEK 320 (355). Investments in vehicles and security equipment, which comprise the two major categories of recurring maintenance investments, amounted to MSEK 141 (164).

Capital employed

Capital employed amounted to MSEK 5,314 (4,555 per December 31, 2010). The return on capital employed amounted to 17 percent (19 per December 31, 2010).

Shareholders' equity and financing

Shareholders' equity amounted to MSEK 2,977 (3,123 per December 31, 2010). The return on shareholders' equity was 15 percent (16 per December 31, 2010). The equity ratio was 36 percent (41 per December 31, 2010). Net debt amounted to MSEK 2,337 (1,432 per December 31, 2010).

Acquisitions

January–June 2011

Company		Country Segment	Consoli dated from	Acquired share (%)1)	Annual revenue (LOC)	Number of em ployees	Purchase price	Goodwill	Acquisition related intangible assets	Other capital employed
Opening balance								2,582	87
Pendum	USA	USA	May,1	n/a	1002)	1,500	6233)	515	72	36
Total acquisitions January–June								515	72	36
Amortization of acquisition-related intangible assets								–	–9
Exchange rate differences								–56	4
Closing balance								3,041	154

1) Refers to voting rights in the form of share purchase agreements. For asset deals, no voting rights are stated.

2) Estimated annual revenue translated to SEK as per acquisition date amounted to MSEK 599.

3) Acquisition cost paid, translated to SEK as per acquisition date.

Acquisition during January – June 2011

In March 2011, Loomis' subsidiary in the USA, Loomis Armored US, LLC, acquired the assets and customer contracts attributable to the cash handling operations of the American company, Pendum LLC. The acquired operations, which were taken over on April 30, 2011, and which were consolidated as of May 1, are comprised of the replenishment and management of approximately 43,000 ATMs across the USA. The acquisition analysis is subject to final adjustment up to one year after the date of acquisition.

Acquisition after the end of the reporting period

In May 2011, Loomis AB reached an agreement to acquire 60 percent of the shares in the Turkish cash handling company, Erk Armored. Erk Armored covers large parts of Turkey and has annual revenue of approximately MSEK 60. Loomis will take on approximately 220 employees. As part of the acquisition, Loomis has the possibility to acquire the remaining 40 percent of the company in the future. The acquired operations are consolidated by Loomis from July 1, 2011. The work towards determinating the acquisition analysis is ongoing.

Other significant events during the period

In February 2011, Loomis AB signed a new five-year loan facility, which matures in 2016 and is for MUSD 150 and MSEK 1,000. The new facility replaces the existing facility which was raised in conjunction with the listing on the stock market in 2008.

As a part of Loomis' environmental work, Loomis' Danish subsidiary, Loomis Danmark A/S, will use electrically powered Cash in Transit vehicles in a pilot project. Loomis' ambition is for all Cash in Transit to retailers in the Copenhagen region to be carried out with electrically powered vehicles. If the project proves to be a success, Loomis intends to purchase more electrically powered vehicles, for operations both in Denmark and in other countries in which the Group operates. The pilot project means that Loomis will be the world's first Cash Handling Services company to make full scale use of electric vehicles for Cash in Transit.

In April, the Board of Directors of Loomis AB determined, on the basis of the authorization resolved upon by the Annual General Meeting in 2010, to repurchase the Company's own Class B shares on the NASDAQ OMX Stockholm. This authorization refers to the incentive scheme adopted by the Annual General Meeting on April 29, 2010 (Incentive Scheme 2010) and covers the number of the Company's own Class B shares which might be transferred to participants in the Incentive Scheme 2010. During the period April 18, 2011 to April 21, 2011, Loomis AB repurchased 119,464 Class B shares.

In accordance with the Board of Directors' proposal, the Annual General Meeting resolved to introduce an incentive scheme (Incentive Scheme 2011), which corresponds to the scheme adopted by the Annual General Meeting in 2010. In accordance with the existing incentive scheme, the proposed incentive scheme entails that two thirds of the variable remuneration are paid out in cash during the year after the bonus was earned. For the remaining third, Loomis AB repurchases shares that will be allotted to the employees on June 30, 2013 at the latest.

In May, Loomis AB signed a new three-year loan facility. The new loan matures in 2014 and is for MUSD 100, which will be used for general corporate purposes.

The result for the second quarter includes an item affecting comparability amounting to MSEK – 53, which relates to previous periods' incorrect valuation of assets and liabilities. The item is related to mismanagement of the Austrian subsidiary. The mismanagement has been ongoing and the incorrect valuation has been accumulated for many years. The incorrect valuation is not related to the operational handling of the customers' money but involve the financial reporting. As a result of the discovery of the incorrect valuation, the entire management team in Austria has been replaced. An internal investigation is ongoing and legal actions are currently being evaluated.

Number of full-time employees

The average number of full-time employees during 2010 was 18,466 and, for the rolling twelve month period ending in June 2011, the number of full-time employees was 18,593. Completed acquisitions in the Czech Republic and in the USA have increased the number of full-time employees, while ongoing cost saving programs have, primarily, reduced the number of overtime hours and extra employees, but have also included a reduction in the number of regular employees.

Segment –Europe

Loomis europe

	2011	2010	2011	2010	2010	R12
MSE K	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	1,713	1,749	3,343	3,514	7,024	6,853
Real growth, %	4	0	3	0	0	2
Organic growth, %	3	0	2	0	0	1
Operating income EBITA)1)	151	142	292	277	689	705
Operating margin, %	8.8	8.1	8.7	7.9	9.8	10.3

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

Revenue and operating income

April–June

Revenue during the second quarter amounted to MSEK 1,713 compared to MSEK 1,749 for the corresponding period during the previous year. Organic growth (adjusted for exchange rate effects, acquisitions and divestitures) amounted to 3 percent (0). The positive organic growth seen in the majority of the European countries during the second quarter was partly offset by negative organic growth in the Spanish market. The negative organic growth in the Spanish market, which is a result of the ongoing structural changes within the banking sector, declined during the second quarter when compared with the negative growth seen during the first quarter. These structural changes have entailed that a large number of bank offices which were previously customers of Loomis have been closed during 2010 and the beginning of 2011, which has resulted in decreased revenue due to the number of stops being reduced. The continuous work with price increases in line with wage increases has continued successfully during the quarter.

Operating income (EBITA) amounted to MSEK 151 (142) and the operating margin was 8.8 percent (8.1). The improvement by 0.7 percentage points is primarily attributable to the positive development of earnings within a number of larger markets, including France, where the restructuring work, initiated during the first quarter of 2010 and continuing during 2011, continues to provide results. However, operating income has been negatively impacted by costs attributable to the closure of branches in France and costs attributable to efficiency measures undertaken in the Spanish operations, as a result of the ongoing changes in the Spanish banking market.

January–June

Revenue during the first half-year amounted to MSEK 3,343 compared to MSEK 3,514 for the corresponding period during previous year and the organic growth (adjusted for exchange rate effects, acquisitions and divestitures) amounted to 2 percent (0). The majority of the European countries showed a positive organic growth which was, however, partly offset by a negative organic growth in the Spanish market. The negative organic growth, which is a result of the ongoing structural changes within the Spanish banking sector, declined during the latter part of the period. As a result of the structural changes, a large number of bank offices, which were previously customers of Loomis, have been closed during 2010 and the beginning of 2011. The reduction in bank offices has resulted in decreased revenue due to the number of stops being reduced. During the first half-year, the continuous work with price increases in line with wage increases has continued successfully.

Operating income (EBITA) amounted to MSEK 292 (277) and the operating margin increased to 8.7 percent (7.9). The improvement of the margin by 0.8 percentage points is mainly attributable to a positive earnings development within a number of the larger markets. In France, the restructuring work, initiated during the first quarter of 2010 and continuing during 2011, continues to provide positive results. With the aim of increasing synergies, a number of branches in France have been closed during the period. The costs associated with the closure of these branches have negatively impacted operating income during the first half-year. Furthermore, the operating income has been negatively affected by costs attributable to efficiency measures undertaken in the Spanish operations, as a result of the changes in the Spanish banking market.

Segment –USA

Loomis USA

	2011	2010	2011	2010	2010	R12
MSEK	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	971	1,057	1,867	2,063	4,009	3,812
Real growth, %	13	–3	7	–4	–3	3
Organic growth, %	0	–3	0	–4	–3	–1
Operating income EBITA)1)	67	80	131	150	296	276
Operating margin, %	6.9	7.6	7.0	7.3	7.4	7.2

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affceting comparability.

Revenue and operating income

April–June

Revenue during the second quarter amounted to MSEK 971 compared to MSEK 1,057 for the corresponding period during the previous year. Organic growth (adjusted for exchange rate effects, acquisitions and divestitures) amounted to 0 percent (–3). Increased fuel surcharges had a positive impact on organic growth of 2 percent during the quarter. The underlying negative development in the USA is, primarily, attributable to the effect of previously lost contracts, which have now been terminated. The lost contracts are, to a great extent, a consequence of Loomis' strategy to prioritize price and profitability over volume.

Operating income (EBITA) amounted to MSEK 67 (80) and the operating margin for the period was 6.9 percent (7.6). The operating margin for the quarter was negatively impacted by the ongoing integration of the cash handling operations acquired from Pendum. The integration is continuing in a satisfactory manner.

January–June

Revenue during the first half-year amounted to MSEK 1,867 compared to MSEK 2,063 for the corresponding period during the previous year and the organic growth (adjusted for exchange rate effects, acquisitions and divestitures) amounted to 0 percent (–4). The organic growth for the period was positively impacted by 2 percent due to increased fuel surcharges. The underlying negative organic growth is mainly attributable to previously lost contracts, which have now been terminated. Lost contracts are, to a great extent, a consequence of Loomis' strategy to prioritize price and profitability over volume. Price increases which have been carried out have, to some degree, compensated for the negative effects.

Operating income (EBITA) amounted to MSEK 131 (150) and the operating margin for the period was 7.0 percent (7.3). The operating margin was negatively impacted by the ongoing integration of the cash handling operations acquired from Pendum. The negative effects of this integration were, however, partly offset by the positive results now being seen from the cost savings and efficiency improvements undertaken in 2009 and 2010. The integration of the operations aquired from Pendum is continuing in a satisfactory manner.

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 factors of uncertainty for the second half of 2011 are the continued integration of the cash handling operations acquired in the USA in April 2011, the structural changes within the Spanish banking sector and the effects of the efficiency improvement work which continues in the French operations.

The economic trend during the first half of 2011 impacted certain countries and geographic markets negatively, and it cannot be ruled out that revenue and income for the remainder of 2011 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 staff 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

	2011	2010	2010
MSEK	Jan–Jun	Jan–Jun	Full year
Gross income	117	122	222
Operating income (EBIT)	73	78	138
Income after financial items	161	112	427
Net income for the period	133	82	321

SUMMARY BALANCE SHEET

	2011	2010	2010
MSEK	Jun 30	Jun 30	Dec 31
Fixed assets	6,545	6,914	6,438
Current assets	1,515	1,012	963
Total assets	8,060	7,926	7,401
Shareholders' equity1)	4,587	4,597	4,718
Liabilities	3,473	3,330	2,683
Total shareholders' equity and liabilities	8,060	7,926	7,401

1) As at June 30, 2011, the company had 119.464 class B shares in own custody. The shares are to be alloted to the employees in accordance with the Incentive Scheme 2010.

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 during the first half-year was 16.

The Parent Company's revenue refers, primarily, to franchise fees and other revenues from subsidiaries. The change in results refers primarily to a capital gain on an intra-Group sale of a subsidiary and 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 interest-bearing liabilities.

The Swedish Tax Agency has rejected a number of deductions related to Loomis AB's costs for the LCM operations. The Tax Agency's decision was appealed at the County Administrative Court, which, in January 2011, rejected the appeal. This ruling by the County Administrative Court was appealed during the first quarter. These cases are described in the Annual Report for 2010. The negative outcome in these matters has not impacted earnings during the first half-year but has had a cash flow effect on the Parent Company and the Group, as the extension period for the payment of the additional tax expired in conjunction with the ruling of the County Administrative Court.

Other significant events

For critical estimates and assessments and contingent liabilities, refer to pages 49 and 76 in the annual report for 2010. As no other material changes have taken place compared with the information presented in the Annual Report, no further comments regarding such matters have been presented in this interim report.

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 43 – 48 of the Annual Report for 2010.

As from January 1, 2011, Loomis AB reports acquisitionrelated costs attributable to transaction expenses, revaluation of contingent consideration, restructuring and/or integration of acquired operations in the Group as a separate item in the income statement. Restructuring costs are expenses reported in accordance with the specific criteria for provisions for restructuring. Provisions for restructuring are made when a detailed formal plan of action is in place and a wellfounded expectation has been created by the parties concerned. No provisions are made for future operating losses.

Restructuring costs may be expenses for various activities necessary in the preparation for the integration of the acquired operations within the Group, for example, severance pay, provisions for leased premises which will not be utilized or leased at a loss, as well as other lease agreements which cannot be cancelled and will not be utilized. Integration costs normally consist of activities which cannot be reported as provisions. Such activities may include a change of brand name (new logo on buildings, vehicles, uniforms, etc.) but may also be personnel costs related to, for example, training, recruitment, relocation and travel, certain customerrelated costs and other costs related to the adaptation of the acquired operations to Loomis' format. The following criteria must also be fulfilled for costs to be classified as integration costs: i) The cost must not have been applicable had the acquisition not taken place, and ii) The cost is attributable to a project which Company management have identified and monitored, either as a stage in the integration program implemented in conjunction with the acquisition or as a direct result of an immediate review after the acquisition.

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 82 of the Annual Report for 2010.

Outlook for 2011

The Company does not provide forecast information for 2011.

The undersigned hereby certify that this interim report provides a true and fair view of the Parent Company's and the Group's operations, financial position and income, and describes significant risks and uncertainties to which the Parent Company and those companies included in the Group are exposed.

Stockholm, July 29, 2011

Alf Göransson Chairman of the Board of Directors Ulrik Svensson Board member Signhild Arnegård Hansen Board member

Marie Ehrling Board member

Jan Svensson Board member

Lars Blecko President and CEO

Review Report

We have reviewed this report for the period day month 1 January 2011 to 30 June 2011 for Loomis AB. The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in

accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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

Stockholm, July 29, 2011

PricewaterhouseCoopers AB

Patrik Adolfson Authorized Public Accountant

Statement OF INCOME

	2011	2010	2011	2010	2010	R12
MSEK	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue, continuing operations	2,548	2,804	5,037	5,575	10,990	10,452
Revenue, acquisitions	135	2	172	2	43	213
Total revenue	2,683	2,806	5,210	5,577	11,033	10,665
Production expenses	–2,100	–2,186	–4,090	–4,336	–8,516	–8,270
Gross income	584	620	1,119	1,241	2,516	2,395
Selling and administration expenses	–389	–422	–746	–862	–1,634	–1,517
Operating income before amortization (EBITA)1)	195	198	374	379	882	877
Amortization of acquisition-related intangible assets	–5	–5	–9	–9	–17	–16
Acquisition-related costs2	–23	0	–31	0	0	–31
Items affecting comparability	–53	–	–53	–	–	–53
Operating income (EBIT)	114	193	281	370	866	777
Net financial items	–16	–26	–32	–54	–107	–86
Income before taxes	98	167	249	316	759	692
Income tax	–32	–64	–81	–109	–262	–234
Net income for the period 3)	65	103	168	207	496	457
Key ratios
Real growth, %	7	–1	4	–2	–1	2
Organic growth, %	2	–1	1	–2	–1	0
Gross margin, %	21.8	22.1	21.5	22.2	22.8	22.5
Selling and administration expenses as % of total revenue	–14.5	–15.0	–14.3	–15.5	–14.8	–14.2
Operating margin before amortization, %	7.3	7.0	7.2	6.8	8.0	8.2
Net margin, %	2.4	3.7	3.2	3.7	4.5	4.3

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

2) Acquisition-related costs are reported as a separate item as from 2011 and, for the period January – June 2011, refer to transaction costs of MSEK 9 (0), restructuring costs of MSEK 1 (0) and integration costs of MSEK 21 (0). Transaction costs for the period January – June 2011 amount to MSEK 0 for acquisitions in progress, to MSEK 9 for completed acquisitions and to MSEK 0 for discontinued acquisitions.

3) Net income for the period is entirely attributable to the Parent Company's shareholders.

Statement of comprehensive income

	2011	2010	2010	R12
MSEK	Jan–Jun	Jan–Jun	Full year
Net income for the period	168	207	496	457
Actuarial gains and losses after tax	–2	–114	–94	17
Exchange rate differences	–53	56	–224	–333
Cash flow hedges after tax	2	–4	–1	5
Other comprehensive income and expenses for the period, net after tax	–53	–61	–320	–312
Total comprehensive income for the period1)	115	146	177	146

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

Data per share

	2011	2010	2011	2010	2010	R12
SEK	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Earnings per share before dilution	0.89	1.41	2.31	2.84	6.80	6.27
Earnings per share after dilution1)	0.86	1.36	2.23	2.74	6.57	6.05
Earnings per share, fully diluted2)	0.86	1.36	2.23	2.74	6.57	6.05
Dividend	3.50	2.65	3.50	2.65	2.65	3.50
Number of outstanding shares (millions)	73.0	73.0	73.0	73.0	73.0	73.0
Average number of outstanding shares (millions)	73.0	73.0	73.0	73.0	73.0	73.0

1) The average price per share during the second quarter of 2011 amounted to SEK 94.29. For the first six-month period the corresponding figure was SEK 94.94 and for the rolling 12 month period the corresponding figure was SEK 89.12.

2) 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

	2011	2010	2010	2009
MSEK	Jun 30	Jun 30	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	3,041	2,883	2,582	2,760
Acquisition-related intangible assets	154	69	87	65
Other intangible assets	70	67	66	41
Tangible fixed assets	2,646	2,768	2,610	2,878
Non-interest-bearing financial fixed assets	371	416	345	343
Interest-bearing financial fixed assets	59	53	29	46
Total fixed assets	6,340	6,256	5,719	6,132
Current assets
Non-interest-bearing current assets	1,858	1,858	1,585	1,631
Interest-bearing financial current assets	2	3	19	3
Liquid funds	170	311	259	387
Total current assets	2,031	2,171	1,863	2,020
TOTAL A SSETS	8,371	8,428	7,582	8,153
SHAREHOL DERS' EQUITY AN D LIA BILITIE S
Shareholders' equity1)	2,977	3,089	3,123	3,129
Long-term liabilities
Interest-bearing long-term liabilities	2,496	1,349	629	1,480
Non-interest-bearing provisions	864	988	879	820
Total long-term liabilities	3,360	2,337	1,507	2,299
Current liabilities
Tax liabilities	114	248	166	171
Non-interest-bearing current liabilities	1,848	1,910	1,675	1,699
Interest-bearing current liabilities	72	844	1,110	855
Total current liabilities	2,033	3,002	2,951	2,725
TOTAL SHAREHOL DERS' EQUITY AN D LIA BILITIE S	8,371	8,428	7,582	8,153
Key ratios
Equity ratio, %	36	37	41	38

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

ADDITIONAL information iNTANGIBLE ASSETS

		Jun 30, 2011		Jun 30, 2010			Dec 31, 2010
MSEK	Goodwill	Acquisition related	Other	Goodwill	Acquisition related	Other	Goodwill	Acquisition related	Other
Opening balance	2,582	87	66	2,760	65	41	2,760	65	41
Acquisitions/Investments	515	72	8	–	16	2	35	45	18
Amortization/Impairment	–	–9	–8	–	–9	–9	–	–17	–17
Divestitures	–	–	–	–	–	–0	–	–	–0
Exchange rate differences	–56	4	–1	124	–3	–2	–213	–6	–4
Reclassifications	–	–	5	–	–	35	–	–	29
Closing balance	3,041	154	70	2,883	69	67	2,582	87	66

CHANGE IN SHAREHOLDERS' EQUITY

	2011	2010	2010	R12
MSEK	Jan – Jun	Jan – Jun	Full year
Opening balance	3,123	3,129	3,129	3,089
Actuarial gains and losses after tax	–2	–114	–94	17
Exchange rate differences	–53	56	–224	–333
Cash flow hedges after tax	2	–4	–1	5
Total other comprehensive income	–53	–61	–320	–312
Net income for the period	168	207	496	457
Total comprehensive income	115	146	177	146
Dividend paid to Parent Company's shareholders	–256	–193	–193	–256
Share-related remuneration1)	–6	8	11	–2
Closing balance	2,977	3,089	3,123	2,977

1) Including re-purchase of warrants. As at June 30, 2011 Loomis had 100,054 warrants in own custody.

Statement of cash flows

	2011	2010	2011	2010	2010	R12
MSEK	Apr – Jun	Apr – Jun	Jan – Jun	Jan – Jun	Full year
Income before taxes	98	167	249	316	759	692
Items not affecting cash flow, items affecting comparability and acquisition-related costs	256	206	444	412	805	837
Financial items paid and received	–9	–23	–34	–55	–107	–86
Income tax paid	–79	–58	–186	–85	–261	–362
Change in accounts receivable	22	52	2	–12	–39	–25
Change in other operating capital employed	–67	65	–195	44	115	–123
Cash flow from operations	221	407	281	620	1,271	932
Cash flow from investment activities	–856	–177	–979	–304	–790	–1,465
Cash flow from financing activities	567	–430	612	–393	–586	419
Cash flow for the period	–68	–200	–87	–77	–104	–114
Liquid funds at beginning of the period	234	500	259	387	387	311
Translation differences in liquid funds	5	11	–2	1	–23	–27
Liquid funds at end of period	170	311	170	311	259	170

Statement of cash flows, Additional information

	2011	2010	2011	2010	2010	R12
MSEK	Apr – Jun	Apr – Jun	Jan – Jun	Jan – Jun	Full year
Operating income before amortization (EBITA)1)	195	198	374	379	882	877
Depreciation	159	177	320	355	687	652
Change in accounts receivable	22	52	2	–12	–39	–25
Change in other operating capital employed	–67	65	–195	44	115	–123
Cash flow from operating activities before investments	308	490	501	765	1,645	1,381
Investments in fixed assets, net	–195	–168	–312	–284	–708	–735
Cash flow from operating activities	113	323	190	481	938	646
Financial items paid and received	–9	–23	–34	–55	–107	–86
Income tax paid	–79	–58	–186	–85	–261	–362
Free cash flow	26	241	–30	341	569	198
Cash flow effect of items affecting comparability	–0	–1	–1	–6	–6	–1
Acquisition of operations2)	–660	–10	–667	–20	–82	–730
Dividend paid	–256	–193	–256	–193	–193	–256
Repayments of leasing liabilities	4	–5	1	–7	–17	–9
Change in interest-bearing net debt excluding liquid funds	818	–232	866	–193	–375	683
Cash flow for the period	–68	–200	–87	–77	–104	–114
Key ratios
Cash flow from operating activities as % of operating income before amortization (EBITA)	58	163	51	127	106	74
Investments in relation to depreciation	1.2	0.9	1.0	0.8	1.0	1.1
Investments in % of total revenue	7.3	6.0	6.0	5.1	6.4	6.9

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

2) As from January 1, 2011, Acquisition of operations include the cash flow effect of acquisiton-related costs.

Segment overview

	2011	2010	2011	2010	2010	R12
MSEK	Apr – Jun	Apr – Jun	Jan – Jun	Jan – Jun	Full year
Europe
Revenue	1,713	1,749	3,343	3,514	7,024	6,853
Real growth, %	4	0	3	0	0	2
Organic growth, %	3	0	2	0	0	1
Operating income before amortization (EBITA)1)	151	142	292	277	689	705
Operating margin before amortization, %	8.8	8.1	8.7	7.9	9.8	10.3
USA
Revenue	971	1,057	1,867	2,063	4,009	3,812
Real growth, %	13	–3	7	–4	–3	3
Organic growth, %	0	–3	0	–4	–3	–1
Operating income before amortization (EBITA)1)	67	80	131	150	296	276
Operating margin before amortization, %	6.9	7.6	7.0	7.3	7.4	7.2
Other 2)
Revenue	–	–	–	–	–	–
Operating income before amortization (EBITA)1)	–23	–24	–49	–48	–102	–103
Group total
Revenue	2,683	2,806	5,210	5,577	11,033	10,665
Real growth, %	7	–1	4	–2	–1	2
Organic growth, %	2	–1	1	–2	–1	0
Operating income before amortization (EBITA)1)	195	198	374	379	882	877
Operating margin before amortization, %	7.3	7.0	7.2	6.8	8.0	8.2

Segment overview – By quarter

		2011		2010		2009
MSEK							Apr – Jun Jan – Mar Oct – Dec Jul – Sep Apr – Jun Jan – Mar Oct – Dec Jul – Sep Apr – Jun
Europe
Revenue	1,713	1,630	1,733	1,777	1,749	1,765	1,892	1,891	1,902
Real growth, %	4	1	1	1	0	–1	–1	–2	–3
Organic growth, %	3	0	0	1	0	–1	–1	–2	–4
Operating income before amortization (EBITA)1)	151	141	198	215	142	135	186	203	154
Operating margin before amortization, %	8.8	8.7	11.4	12.1	8.1	7.6	9.8	10.7	8.1
USA
Revenue	971	896	958	987	1,057	1,006	988	1,013	1,115
Real growth, %	13	1	0	–2	–3	–6	–6	–7	–4
Organic growth, %	0	–1	–1	–3	–3	–6	–6	–7	–4
Operating income before amortization (EBITA)1)	67	63	67	78	80	70	71	55	58
Operating margin before amortization, %	6.9	7.1	7.0	7.9	7.6	7.0	7.1	5.4	5.2
Other 2)
Revenue	–	–	–	–	–	–	–	–	–
Operating income before amortization (EBITA)1)	–23	–26	–33	–21	–24	–24	–20	–25	–30
Group total
Revenue	2,683	2,526	2,691	2,765	2,806	2,771	2,880	2,904	3,018
Real growth, %	7	1	0	0	–1	–3	–3	–4	–3
Organic growth, %	2	0	0	0	–1	–3	–3	–4	–4
Operating income before amortization (EBITA)1)	195	179	232	271	198	181	237	233	183
Operating margin before amortization, %	7.3	7.1	8.6	9.8	7.0	6.5	8.2	8.0	6.1

1) Earnings Before Interest, Tax, Amortization of acquisitions-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

2) The category Other consists of the Parent Company's costs and certain other Group items.

Quarterly data

	2011		2010				2009
MSEK	Apr – Jun	Jan – Mar	Oct – Dec	Jul – Sep	Apr – Jun	Jan – Mar	Oct – Dec	Jul – Sep	Apr – Jun
Statement of Income
Revenue	2,683	2,526	2,691	2,765	2,806	2,771	2,880	2,904	3,018
Gross income	584	535	631	644	620	621	643	648	643
Operating income before amortization (EBITA)1)	195	179	232	271	198	181	237	233	183
Operating income (EBIT)	114	168	229	267	193	177	233	229	179
Key ratios
Operating margin before amortization, %	7.3	7.1	8.6	9.8	7.0	6.5	8.2	8.0	6.1
Cash flow
Current activities	221	60	328	323	407	212	537	306	306
Investment activities	–856	–123	–323	–163	–177	–126	–274	–153	–218
Financing activities	567	45	–121	–71	–430	37	–296	–4	–257
Cash flow for the period	–68	–19	–116	89	–200	123	–32	149	–169
Capital employed and financing
Operating capital employed	2,049	1,975	1,929	1,829	2,026	2,150	2,231	2,319	2,358
Goodwill	3,041	2,465	2,582	2,565	2,883	2,739	2,760	2,713	2,959
Acquisition-related intangible assets	154	81	87	70	69	73	65	68	77
Other operating capital	71	46	–43	–40	–63	–46	–27	1	45
Operating capital	5,314	4,567	4,555	4,424	4,915	4,916	5,028	5,101	5,439
Key ratios
Operating capital employed as % of revenue	19	18	17	16	18	19	19	19	19
Capital employed as a % of revenue	50	42	41	39	43	42	42	42	45
Net debt	2,337	1,418	1,432	1,454	1,826	1,776	1,899	2,131	2,447
Shareholders' equity	2,977	3,149	3,123	2,970	3,089	3,140	3,129	2,970	2,992

1) Earnings Before Interest, Tax, Amortization of acquisitions-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

Statement of income – by quarter

	2011		2010				2009
MSEK	Apr – Jun	Jan – Mar	Oct – Dec	Jul – Sep	Apr – Jun	Jan – Mar	Oct – Dec	Jul – Sep	Apr – Jun
Revenue, continuing operations	2,548	2,489	2,656	2,759	2,804	2,771	2,879	2,901	2,994
Revenue, acquisitions	135	37	35	6	2	0	1	3	23
Total revenue	2,683	2,526	2,691	2,765	2,806	2,771	2,880	2,904	3,018
Production expenses	–2,100	–1,991	–2,060	–2,120	–2,186	–2,150	–2,237	–2,256	–2,375
Gross income	584	535	631	644	620	621	643	648	643
Selling and administration expenses	–389	–357	–399	–373	–422	–440	–407	–415	–460
Operating income before amortization (EBITA)1)	195	179	232	271	198	181	237	233	183
Amortization of acquisition-related intangible assets	–5	–4	–4	–4	–5	–4	–4	–4	–4
Acquisition-related costs2)	–23	–7	0	0	0	0	e/t	e/t	e/t
Items affecting comparability	–53	–	–	–	–	–	–	–	–
Operating income (EBIT)	114	168	229	267	193	177	233	229	179
Net financial items	–16	–16	–30	–23	–26	–27	–26	–26	–31
Income before taxes	98	152	199	244	167	149	206	202	148
Income tax	–32	–49	–66	–87	–64	–45	–56	–61	–44
Net income for the period3)	65	103	133	157	103	104	150	142	103
Key ratios
Real growth, %	7	1	0	0	–1	–3	–3	–4	–3
Organic growth, %	2	0	0	0	–1	–3	–3	–4	–4
Gross margin, %	21.8	21.2	23.5	23.3	22.1	22.4	22.3	22.3	21.3
Selling and administration expenses as % of total revenue	–14.5	–14.1	–14.8	–13.5	–15.0	–15.9	–14.1	–14.3	–15.3
Operating margin before amortization, %	7.3	7.1	8.6	9.8	7.0	6.5	8.2	8.0	6.1
Net margin, %	2.4	4.1	4.9	5.7	3.7	3.8	5.2	4.9	3.4
Earnings per share before dilution (SEK)	0.89	1.41	1.82	2.14	1.41	1.43	2.06	1.94	1.42

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

2) Acquisition-related costs are reported as a separate item as from 2011 and, for the period January – June 2011, refer to transaction costs of MSEK 9 (0), restructuring costs of MSEK 1 (0) and integration costs of MSEK 21 (0). Transaction costs for the period January – June 2011 amount to MSEK 0 for acquisitions in progress, to MSEK 9 for completed acquisitions and to MSEK 0 for discontinued acquisitions.

3) Net income for the period is entirely attributable to the Parent Company's shareholders.

Balance Sheet – by quarter

	2011			2010				2009
MSEK	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
ASSETS
Fixed assets
Goodwill	3,041	2,465	2,582	2,565	2,883	2,739	2,760	2,713	2,959
Acquisition-related intangible assets	154	81	87	70	69	73	65	68	77
Other intangible assets	70	68	66	60	67	36	41	39	47
Tangible fixed assets	2,646	2,490	2,610	2,550	2,768	2,738	2,878	2,754	2,995
Non interest-bearing financial fixed assets	371	342	345	428	416	367	343	323	371
Interest-bearing financial fixed assets	59	78	29	28	53	45	46	86	83
Total fixed assets	6,340	5,525	5,719	5,701	6,256	5,999	6,132	5,983	6,532
Current assets
Non interest-bearing current assets	1,858	1,677	1,585	1,613	1,858	1,931	1,631	1,843	2,030
Interest-bearing financial current assets	2	9	19	7	3	3	3	1	11
Liquid funds	170	234	259	379	311	500	387	414	305
Total current assets	2,031	1,920	1,863	1,998	2,171	2,433	2,020	2,259	2,346
TOTAL A SSETS	8,371	7,444	7,582	7,699	8,428	8,432	8,153	8,242	8,878
SHAREHOL DERS' EQUITY AN D LIA BILI TIE S
Shareholders' equity1)	2,977	3,149	3,123	2,970	3,089	3,140	3,129	2,970	2,992
Long-term liabilities
Interest-bearing long-term liabilities	2,496	1,644	629	1,307	1,349	1,276	1,480	1,450	1,563
Non interest-bearing provisions	864	799	879	981	988	857	820	720	864
Total long-term liabilities	3,360	2,444	1,507	2,288	2,337	2,133	2,299	2,170	2,427
Current liabilities
Tax liabilities	114	89	166	213	248	191	171	162	162
Non interest-bearing current liabilities	1,848	1,668	1,675	1,666	1,910	1,920	1,699	1,757	2,014
Interest-bearing current liabilities	72	95	1,110	562	844	1,048	855	1,183	1,283
Total current liabilities	2,033	1,851	2,951	2,441	3,002	3,159	2,724	3,102	3,459
TOTAL SHAREHOL DERS' EQUITY AND LIA BILITIE S	8,371	7,444	7,582	7,699	8,428	8,432	8,153	8,242	8,878
Key ratios
Equity ratio, %	36	42	41	39	37	37	38	36	34

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

Cash flow – By quarter

	2011		2010					2009
MSEK	Apr – Jun	Jan – Mar	Oct – Dec	Jul – Sep	Apr – Jun	Jan – Mar	Oct – Dec	Jul – Sep	Apr – Jun
Additional information
Operating income before amortization (EBITA)1)	195	179	232	271	198	181	237	233	183
Depreciation	159	162	163	169	177	178	175	184	196
Change in accounts receivable	22	–20	21	–48	52	–63	132	–62	–0
Change in other operating capital employed	–67	–128	44	27	65	–21	15	13	24
Cash flow from operating activities before investments	308	193	460	420	490	275	559	368	402
Investments in fixed assets, net	–195	–116	–263	–161	–168	–116	–274	–153	–209
Cash flow from operating activities	113	77	198	259	323	159	286	215	193
Financial items paid and received	–9	–25	–25	–28	–23	–31	–25	–31	–15
Income tax paid	–79	–108	–107	–68	–58	–27	3	–31	–81
Free cash flow	26	–56	66	162	241	100	264	154	98
Cash flow effect of items affecting comparability	–0	–0	–0	–0	–1	–4	–0	–0	–1
Acquisition of operations2)	–660	–7	–61	–2	–10	–10	–	–	–9
Dividend paid	–256	–	–	–	–193	–	–	–	–164
Repayments of leasing liabilities	4	–4	–2	–8	–5	–2	–6	–12	–12
Change in interest-bearing net debt excl liquid funds	818	49	–119	–64	–232	39	–290	8	–80
Cash flow for the period	–68	–19	–116	89	–200	123	–32	149	–169
Key ratios
Cash flow from operating activities as % of operating income before amortization (EBITA)	58	43	85	95	163	88	121	93	106

1) Earnings Before Interest, Tax, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and Items affecting comparability.

2) As from January 1, 2011, Acquisition of operations include the cash flow effect of acquisiton-related costs.

Key ratios

	2011	2010	2011	2010	2010	R12
	Apr – Jun	Apr – Jun	Jan – Jun	Jan – Jun	Full year
Operating margin before amortization, %	7.3	7.0	7.2	6.8	8.0	8.2
Cash flow from operating activities as % of operating income before amortization (EBITA)	58	163	51	127	106	74
Return on capital employed, %	17	17	17	17	19	17
Real growth, %	7	–1	4	–2	–1	2
Organic growth, %	2	–1	1	–2	–1	0
Total growth, %	–4	–7	–7	–10	–8	–6
Earnings per share before dilution, SEK	0.89	1.41	2.31	2.84	6.80	6.27
Equity ratio, %	36	37	36	37	41	36
Net debt, MSEK	2,337	1,826	2,337	1,826	1,432	2,337

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.

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.

Earnings per share before dilution

Net income for the period in relation to the number of shares outstanding at the end of the period. Calculation for: Apr –Jun 2011: 65/73,011,780 x 1,000,000 = 0.89 Jan –Jun 2011: 168/73,011,780 x 1,000,000 = 2.31

Earnings per share after dilution

Calculation for: Apr –Jun 2011: 65/75,566,780 x 1,000,000 = 0.86 Jan –Jun 2011: 168/75,566,780 x 1,000,000 = 2,23

Earnings per share fully dilutied

Calculation for:

Apr –Jun 2011: 65/75,566,780 x 1,000,000 = 0.86 Jan –Jun 2011: 168/75,566,780 x 1,000,000 = 2.23

Operating income before amortization (EBITA)

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

Operating margin before amortization

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

Operating income after amortization (EBIT)

Earnings before interest and tax.

R12

Rolling 12-months period (July 2010 up to and including June 2011).

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 July 29, 2011 (09:30 a.m. 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=007175&Conf=205007 and follow the instructions, or by calling +46 (0)8 505 201 14 or +44 (0)207 1620 177.

The meeting can also be viewed online at www.loomis.com/investors/reports&presentations

A recording of the webcast will be available at www.loomis.com/investors/ reports&presentations after the information meeting, and a telephone recording of the meeting will be available until midnight August 12, 2011 on telephone number +46(0)8 505 203 33 and +44 (0)20 7031 4064, code 898941.

Future reporting

Interim report January – September November 8, 2011 Full year report January – December February 2, 2012

For further information

Lars Blecko, CEO +46 (0)70 641 49 10, e-mail: lars.blecko@loomis.com Marcus Hagegård, VP Finance +46 (0)76 843 20 30, e-mail:marcus.hagegard@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 Friday, July 29, 2011 at 8:00 a.m (CET).

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