Loomis — Interim / Quarterly Report 2012

Nov 9, 2012

INTERIM REPORT

January–September 2012

Managing cash in society.

The positive operating margin development continues

January–September 2012

• Revenue during the period amounted to MSEK 8,507 (8,092). Real growth amounted to 4 percent (6) and organic growth was 0 percent (1).
• Operating income (EBITA)1) amounted to MSEK 709 (646) of which exchange rate effects comprised MSEK –1. The operating margin was 8.3 percent (8.0).
• Income before taxes amounted to MSEK 611 (497) and net income after taxes was MSEK 428 (333).
• Earnings per share before dilution were SEK 5.86 (4.56), and earnings per share after dilution were SEK 5.66 (4.41).
• Cash flow from operating activities amounted to MSEK 547 (466), which is equivalent to 77 percent (72) of operating income (EBITA).

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

Loomis offers safe and effective comprehensive solutions for the distribution, handling and recycling of cash for banks, retailers and other commercial companies via an international network of almost 400 branches in 16 countries. The Group has approximately 20,000 employees and annual revenue of SEK 11 billion. Loomis is a Mid-Cap listed Company on the NASDAQ OMX Stockholm.

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.

Comments by the President and CEO

»During the third quarter, we have

successfully signed new contracts with large

volumes primarily in Sweden and in France.«

The operating income, EBITA, during the first nine months of 2012 was MSEK 709 (646), including exchange rate effects of MSEK –1. The improvement of MSEK 64 compared to the corresponding period in 2011 at comparable exchange rates, can primarily be attributed to the continuous work to improve efficiency within the Group. The operating income was negatively affected by a non-recurring cost of MSEK 16, due to a lost legal dispute in Denmark.

The operating margin for the Group for the nine-month period improved to 8.3 percent (8.0). For the third quarter, the margin was 9.8 percent (9.5), and, adjusted for the non-recurring cost in Denmark, the margin was 10.3 percent. The continuously improved margin development shows that we are well on our way to reach our margin target, an operating margin of 10 percent by 2014, at the latest. The operating margin in Europe improved to 10.0 percent (9.9) during the first nine months of the year. The improvement is primarily attributable to improved efficiency in France, as well as positive effects from the Efectivox acquisition in Spain. In the USA, the operating margin, which includes the positive effects that can be expected from the Pendum acquisition, was to 8.3 percent (7.0) for the nine-month period.

The organic growth of the Group has ceased during the last two quarters. This is primarily due to the termination of contracts with low profitability, mainly in France but also in the UK. As a consequence of the ongoing structural changes in the Spanish banking sector the weak market development in Spain has continued.

In the USA, we have lost approximately 15 percent of the volumes we took over through the acquisition of Pendum's cash handling operations in 2011. The lost volumes, which are a result of diversification amongst our customers, were expected at the time of the acquisition and a clause was therefore included in the purchase agreement, giving us the right to receive compensation for the loss of volumes during a specified period of time. Furthermore, Cash In Transit volumes have lately had a weak development in the USA. On a positive note, the proportion of CMS in the USA, i.e. comprehensive solutions for our customers' cash handling, is steadily increasing quarter-by-quarter. Loomis SafePoint®, one of the market's most advanced solutions for storage of cash in stores and restaurants, is heavily contributing to the positive development. This has, to some extent, balanced the weak organic growth in the USA, which was 0 percent (0) during the nine-month period. For the Group as a whole, the organic growth was 0 percent (1) during the first nine months of the year, and –2 percent (1) for the third quarter.

During the third quarter we have successfully signed new contracts with large volumes primarily in Sweden and in France. These contracts will begin and will contribute to growth during the fourth quarter. In Sweden, following the bankruptcy of Panaxia, we have signed new contracts with a total annual order value of approximately MSEK 120. In order to be able to handle the increased volumes, we will recruit and train new employees during the fourth quarter. As a result of the new, contracts Loomis has strengthened its leading position at the Swedish market.

Lars Blecko President and CEO

The Group and the segments in brief

	2012	2011	2012	2011	2011	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Group total
Revenue	2,788	2,882	8,507	8,092	10,973	11,389
Real growth, %	0	9	4	6	7	5
Organic growth, %	–2	1	0	1	1	0
Operating income (EBITA) 1)	272	273	709	646	912	975
Operating margin, %	9.8	9.5	8.3	8.0	8.3	8.6
Earnings per share before dilution, SEK	2.242)	2.263)	5.862)	4.563)	7.033)	8.332)
Earnings per share after dilution, SEK	2.17	2.18	5.66	4.41	6.79	8.04
Cash flow from operating activities as % of operating income (EBITA)	133	102	77	72	77	80
Segment
Europe
Revenue	1,710	1,813	5,193	5,156	6,934	6,971
Real growth, %	0	4	2	3	3	3
Organic growth, %	–2	2	0	2	2	1
Operating income (EBITA) 1)	206	218	517	510	714	721
Operating margin, %	12.1	12.0	10.0	9.9	10.3	10.3
USA
Revenue	1,077	1,069	3,314	2,935	4,039	4,418
Real growth, %	–1	18	6	11	12	9
Organic growth, %	–2	0	0	0	0	0
Operating income (EBITA)1)	92	75	275	206	295	364
Operating margin, %	8.5	7.0	8.3	7.0	7.3	8.2

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

2) The number of outstanding shares, which comprises the basis for calculation of earnings per share, amounts to 73,011,780, and includes 132,318 shares which, as a result of Loomis Incentive Scheme 2011, are held in own custody per September 30, 2012. According to agreements the shares held in own custody will be allotted to employees in the future.

3) The number of outstanding shares which comprises the basis for calculation of earnings per share amounts to 73,011,780, and included 124,109 shares held in own custody per September 30, 2011 and per December 31, 2011. The shares were held in own custody as a result of Loomis Incentive Scheme 2010 and have been allotted to employees in accordance with agreements

Operating margin (EBITA)

Operating margin (EBITA) per quarter

Operating margin (EBITA) rolling 12 months

Revenue and income

	2012	2011	2012	2011	2011	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue	2,788	2,882	8,507	8,092	10,973	11,389
Operating income (EBITA)1)	272	273	709	646	912	975
Operating income (EBIT)	251	262	656	543	805	917
Income before taxes	234	247	611	497	743	857
Net income for the period	164	165	428	333	513	608
Key ratios
Real growth, %	0	9	4	6	7	5
Organic growth, %	–2	1	0	1	1	0
Operating margin (EBITA), %	9.8	9.5	8.3	8.0	8.3	8.6

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

July – September 2012

Revenue in the third quarter amounted to MSEK 2,788, compared with MSEK 2,882 for the corresponding period in the previous year. Real growth for the quarter was 0 percent (9). The positive impact the completed acquisitions in the USA (Oregon Armored Services, "OAS"), Spain and Argentina had on real growth was offset by the termination of contracts in the USA (Pendum) and Europe earlier in the year. The terminated contracts are also the primary reason that organic growth amounted to –2 percent (1). Changes in the fuel surcharges which are passed on to the customers had no significant effect on the organic growth for the Group.

Operating income (EBITA) amounted to MSEK 272 (273) including exchange rate effects of MSEK –14. A lost legal dispute in Denmark negatively affected earnings with MSEK 20, of which MSEK 16 impacted operating income and MSEK 4 impacted financial net. Furthermore, operating income was negatively impacted by restructuring costs in order to prevent the over-capacity which would otherwise have arisen in the European operations as a consequence of the terminated contracts. The continuous work to improve efficiency within the Group continued to have a positive effect and contributed to the improvement of the operating margin for the quarter to 9.8 percent (9.5). Adjusted for the non-recurring cost in Denmark, the margin was 10.3 percent.

Operating income (EBIT) amounted to MSEK 251 MSEK (262) and includes acquisition-related costs of MSEK –14 (–5) which are primarily attributable to the acquisition of the Spanish company Efectivox.

Financial net amounted to MSEK –18 (–15) and includes interest expenses of MSEK 4 related to the lost legal dispute in Denmark. Income before taxes was MSEK 234 (247) and net income after taxes was MSEK 164 (165). The tax rate for the period was 30 percent (33).

January – September 2012

Revenue for the period amounted to MSEK 8,507 (8,092) and real growth was 4 percent (6). Real growth is primarily attributable to the acquisitions in the USA (Pendum) and Turkey during 2011 and in the USA (OAS), Spain and Argentina during 2012. Organic growth, which was 0 percent (1), was positively impacted by slightly strengthened market conditions. However, the organic growth was negatively impacted by reduced volumes as a consequence of terminated contracts in the USA and in Europe and by the ongoing structural changes in the Spanish banking sector. The Group's organic growth was not significantly impacted by changes in the fuel surcharges which are passed on to the customers. Price increases as a percentage of revenue exceeded wage increases in percent during the period.

Operating income (EBITA) amounted to MSEK 709 (646), of which exchange rate effects comprised MSEK –1, and the operating margin was 8.3 percent (8.0). The continuous work to improve efficiency within the Group, as well as the integration of Pendum's cash handling operations, contributed positively to the operating margin. The operating income was, however, negatively affected by costs related to restructuring in order to prevent the over-capacity which would otherwise have arisen in the operations, mainly in France but also in the UK, as a result of the terminated contracts. Furthermore, operating income was negatively impacted by costs of MSEK 16 related to the lost legal dispute in Denmark during the third quarter.

Staff turnover within the Group remained at an acceptable level and amounted to approximately 22 percent (21).

Operating income (EBIT) amounted to MSEK 656 (543) including acquisition-related costs of MSEK –49 (–35) and an item affecting comparability of MSEK 16 (–53). The acquisition-related costs are primarily attributable to the acquisition in Spain. The item affecting comparability relates to a reversal of a portion of a provision of MSEK 59 which was made during 2007 regarding overtime compensation in Spain.

Financial net amounted to MSEK –45 (–47) and income before taxes to MSEK 611 (497). Net income after taxes was MSEK 428 (333) and the tax rate amounted to 30 percent (33).

The Segments

LOOMIS EUROPE

	2012	2011	2012	2011	2011	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue	1,710	1,813	5,193	5,156	6,934	6,971
Real growth, %	0	4	2	3	3	3
Organic growth, %	–2	2	0	2	2	1
Operating income (EBITA)1)	206	218	517	510	714	721
Operating margin, %	12.1	12.0	10.0	9.9	10.3	10.3

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

Revenue and operating income – Europe

July–September

Revenue during the third quarter amounted to MSEK 1,710, compared with MSEK 1,813 for the corresponding period in the previous year. Real growth was 0 percent (4). The acquisitions in Spain and Argentina* completed during 2012 had a positive impact on real growth whereas lower volumes attributable to the termination of low-profitability contracts in France and in the UK had a negative impact. The terminated contracts are also the primary reason why organic growth amounted to –2 percent (2). Organic growth was also negatively affected by the ongoing structural changes in the Spanish banking sector. A favorable market, increased market shares and continued stability in pricing within the majority of the other European countries have partially offset the negative development.

Operating income (EBITA) for the quarter amounted to MSEK 206 (218). Despite the operating income was negatively impacted by the lost legal dispute in Denmark of MSEK 16 and by costs to prevent the over-capacity in the operations the operating margin increased to 12.1 percent (12.0). The over-capacity would otherwise have arisen in the operations, mainly in France but also in the UK, as a result of terminated contracts. Adjusted for the non-recurring cost in Denmark, the operating margin for the quarter was 13.0 percent. The improvement is a result of the Group's continuous work to improve efficiency and reduce costs and also to the fact that the restructuring work which is ongoing in France continues to provide positive results.

January–September

During the first nine months of the year, revenue in segment Europe amounted to MSEK 5,193 MSEK (5,156). The 2 percent (3) real growth during the period is primarily attributable to the acquisition in Turkey during 2011 and the acquisitions in Spain and Argentina* completed during 2012. Organic growth, which amounted to 0 percent (2), was positively impacted by a more favorable market situation and continued pricing stability in the majority of the European markets but was negatively impacted by the ongoing structural changes within the Spanish banking sector. Furthermore, real as well as organic growth were negatively impacted by the fact that a number of contracts with low profitability, primarily within the French Cash in Transit operations, were terminated earlier this year.

Operating income (EBITA) for the period amounted to MSEK 517 (510) and the operating margin amounted to 10.0 percent (9.9). The improvement is primarily attributable to the ongoing restructuring work in France and the Group's continuous work to improve efficiency and reduce costs have continued to provide positive results. The operating income was, however, negatively affected by costs to prevent the overcapacity which would otherwise have arisen in the operations, mainly in France but also in the UK, as a result of the terminated contracts. Furthermore, operating income for the period was negatively impacted by costs of MSEK 16 related to the lost legal dispute in Denmark during the third quarter.

^* Argentina is recognized in the European segment, as the operations are reported and monitored as a part of the European segment.

LOOMIS USA

	2012	2011	2012	2011	2011	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue	1,077	1,069	3,314	2,935	4,039	4,418
Real growth, %	–1	18	6	11	12	9
Organic growth, %	–2	0	0	0	0	0
Operating income (EBITA)1)	92	75	275	206	295	364
Operating margin, %	8.5	7.0	8.3	7.0	7.3	8.2

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

Revenue and operating income – USA

July–September

Revenue during the third quarter amounted to MSEK 1,077, compared with MSEK 1,069 for the corresponding period in the previous year. Real growth for the quarter was –1 percent (18) and organic growth was –2 percent (0). The development is due to a reduction of the volumes that were taken over in conjunction with the acquisition of Pendum's cash handling operations. The reduced volumes are due to a number of customers opting to use more than one provider of cash handling services. This scenario was expected at the time of acquisition and a clause was therefore included in the purchase agreement, giving Loomis the right to receive compensation for part of the lost volumes. Changes in the fuel surcharges which are passed on to the customers did not have a significant impact on the organic growth.

Operating income amounted to MSEK 92, compared with MSEK 75 for the corresponding period in the previous year, and the operating margin improved to 8.5 percent (7.0). The improvement is due to the fact that the ongoing work to reduce costs and improve efficiency has continued to provide positive results. The margin was also positively affected by an increase in the proportion of Cash Management Services (CMS) during the quarter.

January–September

Revenue for the period amounted to MSEK 3,314 (2,935). Real growth, which amounted to 6 percent (11), is mainly related to the acquisition of Pendum's cash handling operations completed during 2011. Organic growth for the period was 0 percent (0), and was negatively impacted by a number of customers, who had been taken over in conjunction with the acquisition of Pendum's cash handling operations, opted to diversify their providers of cash handling services. At the time of the acquisition, it was expected that the acquired volumes would be reduced during the year, which is why the agreement with the seller included a clause giving Loomis the right to receive compensation for part of the lost volumes. Changes in fuel surcharges which are passed on to the customers had a slight positive impact on organic growth.

Operating income for the first nine months of the year was MSEK 275 (206) and the operating margin was 8.3 percent, compared with 7.0 for the corresponding period in the previous year. The primary explanations for the improvement to the operating margin are the continuous work to improve efficiency and reduce costs and also the effect from the integration of the operations acquired from Pendum.

Cash flow

STATEMENT OF CASH FLOWS

	2012	2011	2012	2011	2011	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Operating income (EBITA)1)	272	273	709	646	912	975
Depreciation	181	169	537	489	658	706
Change in accounts receivable	16	–28	3	–26	28	57
Change in other operating capital employed and other items	116	68	–177	–126	–58	–108
Cash flow from operating activities before investments	585	482	1 073	983	1 540	1 629
Investments in fixed assets, net	–223	–205	–525	–517	–840	–848
Cash flow from operating activities	362	277	547	466	700	781
Financial items paid and received	–26	–21	–52	–54	–62	–60
Income tax paid	–9	–43	–182	–229	–274	–226
Free cash flow	328	213	313	183	364	495
Cash flow effect of items affecting comparability	–3	–0	–10	–1	–1	–10
Acquisition of operations2)	–7	–6	–286	–654	–667	–299
Paid acquisition-related costs3)	–9	–6	–39	–25	–26	–40
Dividend paid	–	–	–273	–256	–256	–273
Repayments of leasing liabilities	–7	–4	–21	–3	–6	–24
Change in interest-bearing net debt excluding liquid funds	–237	–60	176	807	741	110
Cash flow for the period	64	137	–140	51	150	–41
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	133	102	77	72	77	80
Investments in relation to depreciation	1.2	1.2	1.0	1.1	1.3	1.2
Investments as % of total revenue	8.0	7.1	6.2	6.4	7.7	7.4

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

2) As from January 1, 2011, Acquisition of operations includes the cash flow effect of acquisition-related costs. 3) Refers to acquisition-related restructuring and integration costs.

Cash flow July–September 2012

Cash flow from operating activities of MSEK 362 (277) corresponded to 133 percent (102) of operating income (EBITA).

A slight improvement in the number of customer credit days from the previous quarter had a positive impact on the cash flow. Furthermore, the lower level of capital tied up contributed to an improved cash flow compared to both the first and the second quarter of 2012.

Net investments in fixed assets for the period amounted to MSEK 223 (205), which can be compared with depreciation of fixed assets of MSEK 181 (169). Investments in vehicles and security equipment, which comprise the two major categories of recurring maintenance investments, amounted to MSEK 95 (85). In addition, investments of MSEK 48 (27) were made in Loomis SafePoint®.

Cash flow from the acquisition of operations amounted to MSEK –7 (–6) and is primarily related to the acquisition of OAS in the USA.

Cash flow January–September 2012

Cash flow from operating activities of MSEK 547 (466) corresponded to 77 percent (72) of operating income (EBITA).

The cash flow effect of changes in other operating capital employed and other items was –177 (–126).

Net investments in fixed assets for the period amounted to MSEK 525 (517), which can be compared with depreciation of fixed assets of MSEK 537 (489). Investments in vehicles and security equipment, which comprise the two major categories of recurring maintenance investments, amounted to MSEK 191 (226). Investment in Loomis SafePoint® for the period amounted to MSEK 107 (70).

Cash flow from acquisition of operations, which amounted to MSEK –286 (–654), is mainly related to the acquisitions of Efectivox in Spain, OAS in the USA and Vigencia in Argentina.

Cash flow for the period includes a dividend of MSEK 273 (256) paid to the shareholders.

Capital employed

Capital employed amounted to MSEK 5,786 (5,617 per December 31, 2011). Return on capital employed amounted to 17 percent (16 per December 31, 2011).

During the third quarter, long-term business plans were prepared, and in conjunction with this, impairment testing was undertaken on all of the Group's cash generating units. None of the cash generating units had a book value exceeding its recoverable amount; consequently no impairment of goodwill has been reported during 2012.

Shareholders' equity and financing

Shareholders' equity amounted to MSEK 3,371 (3,397 per December 31, 2011). Return on shareholders' equity was 18 percent (15 per December 31, 2011) and the equity ratio was 38 percent (37 per December 31, 2011). Net debt amounted to MSEK 2,415 (2,220 per December 31, 2011).

Acquisitions

Company		Country Segment	Date of consoli dation	Acquired share (%)1)	Annual revenue, MLOC2)	Number of em ployees	Pur chase price3) MSEK	Good will, MSEK	Acquisi tion related intangible assets, MSEK	Other ca pital em ployed, MSEK
Opening balance January 1, 2012								3,281	155
Oregon Armored Services Inc.7)	USA		USA January 1	100	6	75	50	324)	3	15
Efectivox7)	Spain	Europe	March 14	100	13	500	180	1235)	15	42
Vigencia7) 8)	Argentina	Europe	April 1	100	37	190	78	626)	11	5
Total acquisitions January– September								217	29	62
Amortization of acquisition related intangible assets								–	–21
Exchange rate differences								–188	–4
Closing balance September 30, 2012								3,310	159

1) Refers to voting rights. For assets deals, no voting rights are stated.

2) Estimated annual revenue translated to MSEK as per acquisition date amounted to approximately MSEK 40 for Oregon Armored Services, to approximately MSEK 130 for Efectivox and to approximately MSEK 60 for Vigencia.

3) Purchase price paid, translated to MSEK as per acquisition date. The reported purchase price includes a contingent consideration of approximately MSEK 16, which will be due for payment in 2015 if certain contractual criteria are achieved, e.g. sales volume and net income, as well as deferred payments of approximately MSEK 8 which will be due for payment during 2013. The contingent consideration is reported based on the best assessment in conjunction with the acquisitions and is equivalent to an achievement of 100% of the contractual criteria.

4) The reported goodwill is primarily attributable to achieving synergy effects. Any impairment losses are not tax deductible.

5) The reported goodwill is attributable to achieving geographic expansion and synergy effects. Any impairment losses are not tax deductible.

6) The reported goodwill is attributable to achieving geographic expansion. Any impairment losses are not tax deductible.

7) The acquisition analyses are subject to final adjustment up to one year after the acquisition date.

8) Argentina is recognized in the European segment, as the operations are reported and monitored as a part of the European segment.

Acquisitions during January – September 2012

In December 2011, it was announced that Loomis' USA subsidiary had signed an agreement to acquire the shares in Oregon Armored Service Inc. This acquisition has further strengthened Loomis' presence on the market in north-west USA.

In December 2011, it was announced that Loomis' Spanish subsidiary had signed an agreement to acquire the shares in the Spanish cash handling company, Efectivox. As a result of the structural changes within the Spanish banking sector in recent years, there is an increased demand for cash handling companies and banks to be able to operate on a nationwide basis. The acquisition allows Loomis to offer cash handling services throughout the entire of the Spanish mainland. At the time of the announcement, the acquisition required the approval of the Spanish Competition Authority, which was received during February 2012. The integration of the acquired operations was completed during the second quarter 2012 but certain acquisition-related costs negatively impacted earnings during the third quarter 2012.

In April 2012, it was announced that Loomis had signed an agreement regarding the acquisition of the Argentinean cash handling company, Vigencia. Vigencia, which conducts operations primarily in the Buenos Aires region, was taken over as of April 1, 2012. The acquisition is Loomis' first outside Europe and the USA and marks the beginning of the Group's presence in Latin America, which is part of Loomis' strategy.

Significant events and number of full-time employees

Significant events during the period January – September

In accordance with the decision taken in July 2011 by the Board of Directors of Loomis AB, on the basis of the authorization resolved upon by the Annual General Meeting in 2011, Loomis AB repurchased 57,876 Class B shares during the period March 28–30, 2012. The repurchased shares refer to the proportion of the shares that may be allotted, at a later date, to the participants of the Incentive Scheme 2011. As of March 31, 2012 the Company had 111,113 shares in own custody.

On April 2 and May 18, 2012, Loomis AB repurchased 17,205 Class B shares and 4,000 Class B shares, respectively, which may be allotted to the participants in the Incentive Scheme 2011. As of September 30, 2012, Loomis AB has 132,318 shares in own custody.

In April 2012, the Board of Directors of Loomis AB decided to propose to the Annual General Meeting 2012 to resolve on an incentive scheme (Incentive Scheme 2012) corresponding to the incentive scheme adopted by the Annual General Meeting in 2011. In accordance with the existing incentive scheme, the proposed incentive scheme will entail that two thirds of the variable remuneration are paid out in cash during the year after the bonus is earned. For the remaining third, Loomis AB will repurchase shares that will be allotted to the employees on June 30, 2014 at the latest.

On June 1, 2012, Anders Haker was appointed Chief Financial Officer (CFO) for the Group. Marcus Hagegård took office as CFO for Loomis' operations in the USA.

During the summer of 2012, Loomis' Swedish subsidiary signed a framework agreement with Swedbank. The agreement, which covers both CMS and CIT, means that Swedbank's customers have access to cash management services, transport logistics for cash and a nationwide network of service boxes. As a result of the assignment, which was initiated immediately, Loomis' position as the specialist in cash handling was strengthened further.

In September 2012, the Loomis Danish subsidiary lost a legal dispute with one of Denmark's major retail chains. The legal dispute has been on-going since early 2008, when Loomis terminated the supply contract between the parties as a consequence of non-payments from the customer. The total cost to Loomis, including Loomis' share of the fees for legal proceedings, amounted to MSEK 20, of which MSEK 16 negatively impacted operating income and MSEK 4 negatively impacted financial net during the third quarter of 2012.

As a result of changes in the Swedish cash handling industry, Loomis Swedish subsidiary has signed contracts with several new customers during September. The new contracts have an annual order value of approximately MSEK 120 and negotiations are underway with additional companies. The contracts, which cover cash handling services, are effective immediately and mean that Loomis' position as the specialist in cash handling on the Swedish market is strengthened further.

Loomis' subsidiary in the USA has during the third quarter signed several new contracts for the delivery of Loomis Safe-Point® units, including a contract with the automotive retailer Sonic Automotive. This contract represents a new customer segment, with good potential for future growth. In addition, the retail company, Ocean State Job Lot, has signed a contract for the delivery of Loomis SafePoint® to all of its stores. In total, these two contracts entail the installation of more than 200 Loomis SafePoint® units.

Number of full-time employees

The average number of full-time employees for the rolling twelve month period was 19,637 (19,511 for the full year 2011). Completed acquisitions have increased the average 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.

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 or 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 strives to minimize this risk. The most vulnerable situations are at the roadside, in the vehicles and during cash processing.

Loomis' operations are insured, meaning 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 impairment of assets.

Factors of uncertainty

Specific factors of uncertainty for 2012 are the integration of the operations acquired in Spain and Argentina during 2012, as well as the continued integration of the cash handling operations acquired in the USA and in Turkey during 2011 and the structural changes within the Spanish banking sector.

The economic trend during the first nine months of 2012 impacted certain countries and geographic markets negatively, and it cannot be ruled out that revenue and income may be impacted for the remainder of 2012.

Changes in general economic conditions can have various effects on the market for cash handling services, such as changes in the consumption level, the proportion of cash purchases compared with credit card purchases, the risk of robbery and bad debt losses as well as the rate of staff turnover.

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

	2012	2011	2011
MSEK	Jan–Sep	Jan–Sep	Full year
Gross income	208	177	195
Operating income (EBIT)	127	115	107
Income after financial items	–128	223	333
Net income for the period	–125	178	211

SUMMARY BALANCE SHEET

	2012	2011	2011
MSEK	Sep 30	Sep 30	Dec 31
Fixed assets	7,333	7,570	7,592
Current assets	487	765	692
Total assets	7,820	8,335	8,284
Shareholders' equity	4,3591)	4,7222)	4,6543)
Liabilities	3,461	3,613	3,631
Total shareholders' equity and liabilities	7,820	8,335	8,284

1) As of September 30, 2012 the Company had 132,318 Class B shares in own custody. The shares are to be allotted to the employees in accordance with the Incentive Scheme 2011. 2) As of September 30, 2011 the Company had 124,109 Class B shares in own custody. The shares were allotted to the employees in accordance with the Incentive Scheme 2010. 3) As of December 31, 2011 the Company had 124,109 Class B shares in own custody. The shares were allotted to the employees in accordance with the Incentive Scheme 2010.

The Parent Company's gross income refers, primarily, to franchise fees from subsidiaries.

Income after financial items amounted to MSEK –128 (223) and includes a write-down of MSEK 468 of the book value of shares in the UK subsidiary. This write-down has been carried out to ensure the consistency of the reported values in the Parent Company with the book value in the Group, for which reason the write-down has not affected the Group's income or balance sheet total. Income after financial items has also been impacted by dividends received from subsidiaries amounting to MSEK 216. The corresponding dividends for 2011 were reported as anticipated dividends in the yearend closing for 2010 and were not, therefore, accounted for in income for 2011.

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

The Parent Company of the Group comprises the Group management and central functions executing the strategic management of the Group. The average number of full-time employees at the head office during the first nine months was 17.

Other significant events

For critical estimates and assessments and contingent liabilities, refer to pages 53 and 80 in the 2011 Annual Report. 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 47 – 52 of the Annual Report for 2011.

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 86 of the Annual Report for 2011.

Outlook for 2012

The Company does not provide forecast information for 2012.

Stockholm, November 9, 2012

Lars Blecko President and CEO

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

STATEMENT OF INCOME

	2012	2011	2012	2011	2011	2010	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year	Full year
Revenue, continuing operations	2,734	2,681	8,186	7,718	10,441	10,990	10,909
Revenue, acquisitions	53	201	322	373	532	43	480
Total revenue	2,788	2,882	8,507	8,092	10,973	11,033	11,389
Production expenses	–2,131	–2,243	–6,631	–6,333	–8,556	–8,516	–8,853
Gross income	657	639	1,877	1,759	2,417	2,516	2,535
Selling and administration expenses	–384	–367	–1,167	–1,112	–1,506	–1,634	–1,561
Operating income (EBITA)1)	272	273	709	646	912	882	975
Amortization of acquisition-related intangible assets	–8	–6	–21	–15	–21	–17	–28
Acquisition-related costs2)	–14	–5	–49	–35	–42	0	–55
Items affecting comparability	–	–	163)	–534)	–444)	–	25
Operating income (EBIT)	251	262	656	543	805	866	917
Net financial items	–18	–15	–45	–47	–62	–107	–60
Income before taxes	234	247	611	497	743	759	857
Income tax	–70	–82	–183	–163	–230	–262	–249
Net income for the period5)	164	165	428	333	513	496	608
Key ratios
Real growth, %	0	9	4	6	7	–1	5
Organic growth, %	–2	1	0	1	1	–1	0
Gross margin, %	23.6	22.2	22.1	21.7	22.0	22.8	22.3
Selling and administration expenses as % of total
revenue	–13.8	–12.7	–13.7	–13.7	–13.7	–14.8	–13.7
Operating margin (EBITA), %	9.8	9.5	8.3	8.0	8.3	8.0	8.6
Tax rate, %	30	33	30	33	31	35	29
Net margin, %	5.9	5.7	5.0	4.1	4.7	4.5	5.3

1) Earnings Before Interest, Taxes, 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–September 2012, refer to transaction costs of MSEK 7 (9), restructuring costs of MSEK 42 (1) and integration costs of MSEK 0 (25). Transaction costs for the period January–September 2012 amount to MSEK 0 for acquisitions in progress, to MSEK 7 for completed acquisitions and to MSEK 0 for discontinued acquisitions. Restructuring costs of MSEK 42 are primarily attributable to the acquisition of Efectivox in Spain.

3) Items affecting comparability refers to a reversal of part of the provision of MSEK 59 which was made in 2007, attributable to overtime compensation in Spain. In total, MSEK 25 has been reversed. 4) Of the items affecting comparability, for the first nine-month period 2011 MSEK –53 refers to incorrect valuation of assets and liabilities in the Austrian subsidiary, and for the full year MSEK 9 are included referring to a reversal of part of the provision of MSEK 59 which was made in 2007, attributable to overtime compensation in Spain.

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

STATEMENT OF COMPREHENSIVE INCOME

	2012	2011	2011	2010	R12
MSEK	Jan–Sep	Jan–Sep	Full year	Full year
Net income for the period	428	333	513	496	608
Actuarial gains and losses after tax	–25	–42	–30	–94	–13
Exchange rate differences	–155	57	43	–224	–169
Cash flow hedges	3	3	4	–1	4
Other comprehensive income and expenses for the period, net after tax	–177	18	17	–320	–178
Total comprehensive income for the period1)	251	351	530	177	430

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

DATA PER SHARE

	2012	2011	2012	2011	2011	2010	R12
SEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year	Full year
Earnings per share before dilution	2.241)	2.262)	5.861)	4.562)	7.032)	6.80	8.331)
Earnings per share after dilution3)	2.17	2.18	5.66	4.41	6.79	6.57	8.04
Earnings per share, fully diluted4)	2.17	2.18	5.66	4.41	6.79	6.57	8.04
Dividend	–	–	3.75	3.50	3.50	2.65	3.75
Number of outstanding shares (millions)	73.01)	73.02)	73.01)	73.02)	73.02)	73.0	73.01)
Average number of outstanding shares (millions)	73.0	73.0	73.0	73.0	73.0	73.0	73.0

1) The number of outstanding shares, which comprises the basis for calcuation of earnings per share, amounts to 73,011,780 and includes 132,318 shares which, as a result of Loomis' Incentive Scheme 2011, are held in own custody per September 30, 2012. According to agreements the shares in own custody will be allotted to employees in the future.

2) The number of outstanding shares, which comprises the basis for calcuation of earnings per share, amounts to 73,011,780 and includes 124,109 shares held in own custody per September 30, 2011 and 124,109 shares held in own custody per December 31, 2011. The shares were held in own custody as a result of Loomis' Incentive Scheme 2010 and has been allotted to employees in accordance with agreements.

3) The average price per share during the third quarter of 2012 amounted to SEK 88.06. For the first nine-month period the corresponding figure was SEK 90.67 and for the rolling 12 month period the corresponding figure was SEK 89.95.

4) 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

	2012	2011	2011	2010
MSEK	Sep 30	Sep 30	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	3,310	3,276	3,281	2,582
Acquisition-related intangible assets	159	163	155	87
Other intangible assets	86	75	82	66
Tangible fixed assets	2,822	2,789	2,887	2,610
Non-interest-bearing financial fixed assets	412	407	459	345
Interest-bearing financial fixed assets	62	60	63	29
Total fixed assets	6,850	6,768	6,927	5,719
Current assets
Non-interest-bearing current assets	1,849	1,831	1,728	1,585
Interest-bearing financial current assets	17	1	1	19
Liquid funds	264	317	413	259
Total current assets	2,130	2,149	2,142	1,863
TOTAL ASSETS	8,980	8,917	9,069	7,582
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity1)	3,371	3,214	3,397	3,123
Long-term liabilities
Interest-bearing long-term liabilities	2,729	2,642	2,671	629
Non-interest-bearing provisions	926	953	969	879
Total long-term liabilities	3,655	3,595	3,640	1,507
Current liabilities
Tax liabilities	214	150	169	166
Non-interest-bearing current liabilities	1,710	1,901	1,837	1,675
Interest-bearing current liabilities	29	58	25	1,110
Total current liabilities	1,954	2,108	2,032	2,951
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	8,980	8,917	9,069	7,582
KEY RATIOS
Equity ratio, %	38	36	37	41

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

ADDITIONAL INFORMATION INTANGIBLE ASSETS

		Sep 30, 2012		Sep 30, 2011			Dec 31, 2011
MSEK	Goodwill	Acquisition related	Other	Goodwill	Acquisition related	Other	Goodwill	Acquisition related	Other
Opening balance	3,281	155	82	2,582	87	66	2,582	87	66
Acquisitions/Investments	217	29	20	554	79	15	569	79	23
Amortization/Impairment	–	–21	–14	–	–15	–12	–	–21	–16
Exchange rate differences	–188	–4	–2	140	12	2	130	10	1
Reclassifications	–	–	0	–	–	4	–	–	8
Closing balance	3,310	159	86	3,276	163	75	3,281	155	82

CHANGE IN SHAREHOLDERS' EQUITY

	2012	2011	2011	2010	R12
MSEK	Jan–Sep	Jan–Sep	Full year	Full year
Opening balance	3,397	3,123	3,123	3,129	3,214
Actuarial gains and losses after tax	–25	–42	–30	–94	–13
Exchange rate differences	–155	57	43	–224	–169
Cash flow hedges	3	3	4	–1	4
Total other comprehensive income	–177	18	17	–320	–178
Net income for the period	428	333	513	496	608
Total comprehensive income	251	351	530	177	430
Dividend paid to Parent Company's shareholders	–273	–256	–256	–193	–273
Share-related remuneration1)	–4	–5	–1	11	1
Closing balance	3,371	3,214	3,397	3,123	3,371

1) Including re-purchase of warrants. As per September 30, 2012 Loomis had 90,348 warrants in own custody.

STATEMENT OF CASH FLOWS

	2012	2011	2012	2011	2011	2010	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year	Full year
Income before taxes	234	247	611	497	743	759	857
Items not affecting cash flow, items affecting comparability and acquisition-related costs	181	173	535	584	763	697	713
Income tax paid	–9	–43	–182	–229	–274	–261	–226
Change in accounts receivable	16	–28	3	–26	28	–39	57
Change in other operating working capital and other items	116	68	–177	–126	–58	115	–108
Cash flow from operations	538	418	790	699	1,203	1,271	1,293
Cash flow from investment activities	–230	–217	–811	–1,196	–1,533	–790	–1,148
Cash flow from financing activities	–244	–64	–119	548	480	–586	–187
Cash flow for the period	64	137	–140	51	150	–104	–41
Liquid funds at beginning of the period	211	170	413	259	259	387	317
Translation differences in liquid funds	–11	10	–9	7	3	–23	–12
Liquid funds at end of period	264	317	264	317	413	259	264

STATEMENT OF CASH FLOWS, ADDITIONAL INFORMATION

	2012	2011	2012	2011	2011	2010	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year	Full year
Operating income (EBITA)1)	272	273	709	646	912	882	975
Depreciation	181	169	537	489	658	687	706
Change in accounts receivable	16	–28	3	–26	28	–39	57
Change in other operating working capital and other items	116	68	–177	–126	–58	115	–108
Cash flow from operating activities before investments	585	482	1,073	983	1,540	1,645	1,629
Investments in fixed assets, net	–223	–205	–525	–517	–840	–708	–848
Cash flow from operating activities	362	277	547	466	700	938	781
Financial items paid and received	–26	–21	–52	–54	–62	–107	–60
Income tax paid	–9	–43	–182	–229	–274	–261	–226
Free cash flow	328	213	313	183	364	569	495
Cash flow effect of items affecting comparability	–3	–0	–10	–1	–1	–6	–10
Acquisition of operations2)	–7	–6	–286	–654	–667	–82	–299
Acquisition-related costs paid3)	–9	–6	–39	–25	–26	–	–40
Dividend paid	–	–	–273	–256	–256	–193	–273
Repayments of leasing liabilities	–7	–4	–21	–3	–6	–17	–24
Change in interest-bearing net debt excluding liquid funds	–237	–60	176	807	741	–375	110
Cash flow for the period	64	137	–140	51	150	–104	–41
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	133	102	77	72	77	106	80
Investments in relation to depreciation	1.2	1.2	1.0	1.1	1.3	1.0	1.2
Investments in % of total revenue	8.0	7.1	6.2	6.4	7.7	6.4	7.4

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

2) Acquistion of operations includes from January 1, 2011 acquisition-related transaction costs.

3) Refers to acquisition-related restructuring and integration costs.

SEGMENT OVERVIEW

	2012	2011	2012	2011	2011	2010	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year	Full year
Europe
Revenue	1,710	1,813	5,193	5,156	6,934	7,024	6,971
Real growth, %	0	4	2	3	3	0	3
Organic growth, %	–2	2	0	2	2	0	1
Operating income (EBITA)1)	206	218	517	510	714	689	721
Operating margin (EBITA), %	12.1	12.0	10.0	9.9	10.3	9.8	10.3
USA
Revenue	1,077	1,069	3,314	2,935	4,039	4,009	4,418
Real growth, %	–1	18	6	11	12	–3	9
Organic growth, %	–2	0	0	0	0	–3	0
Operating income (EBITA)1)	92	75	275	206	295	296	364
Operating margin (EBITA), %	8.5	7.0	8.3	7.0	7.3	7.4	8.2
Other 2)
Revenue	–	–	–	–	–	–	–
Operating income (EBITA)1)	–26	–20	–82	–69	–97	–102	–110
Group total
Revenue	2,788	2,882	8,507	8,092	10,973	11,033	11,389
Real growth, %	0	9	4	6	7	–1	5
Organic growth, %	–2	1	0	1	1	–1	0
Operating income (EBITA)1)	272	273	709	646	912	882	975
Operating margin (EBITA), %	9.8	9,5	8.3	8,0	8.3	8.0	8.6

SEGMENT OVERVIEW – BY QUARTER

		2012			2011				2010
MSEK			Jul–Sep Apr–Jun Jan–Mar Oct–Dec			Jul–Sep Apr–Jun Jan–Mar Oct–Dec			Jul–Sep
Europe
Revenue	1,710	1,764	1,720	1,778	1,813	1,713	1,630	1,733	1,777
Real growth, %	0	2	5	4	4	4	1	1	1
Organic growth, %	–2	–2	3	3	2	3	0	0	1
Operating income (EBITA)1)	206	158	152	204	218	151	141	198	215
Operating margin (EBITA), %	12.1	9.0	8.8	11.5	12.0	8.8	8.7	11.4	12.1
USA
Revenue	1,077	1,134	1,102	1,104	1,069	971	896	958	987
Real growth, %	–1	3	18	17	18	13	1	0	–2
Organic growth, %	–2	–1	3	1	0	0	–1	–1	–3
Operating income (EBITA)1)	92	95	88	89	75	67	63	67	78
Operating margin (EBITA), %	8.5	8.4	8.0	8.1	7.0	6.9	7.1	7.0	7.9
Other 2)
Revenue	–	–	–	–	–	–	–	–	–
Operating income (EBITA)1)	–26	–28	–28	–28	–20	–23	–26	–33	–21
Group total
Revenue	2,788	2,898	2,822	2,881	2,882	2,683	2,526	2,691	2,765
Real growth, %	0	3	9	8	9	7	1	0	0
Organic growth, %	–2	–1	3	2	1	2	0	0	0
Operating income (EBITA)1)	272	225	212	266	273	195	179	232	271
Operating margin (EBITA), %	9.8	7.8	7.5	9.2	9.5	7.3	7.1	8.6	9.8

1) Earnings Before Interest, Taxes, 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

	2012			2011				2010
MSEK			Jul–Sep Apr–Jun Jan–Mar Oct–Dec				Jul–Sep Apr–Jun Jan–Mar Oct–Dec		Jul–Sep
Income Statement
Revenue	2,788	2,898	2,822	2,881	2,882	2,683	2,526	2,691	2,765
Gross income	657	620	600	659	639	584	535	631	644
Operating income (EBITA)1)	272	225	212	266	273	195	179	232	271
Operating income (EBIT)	251	204	201	262	262	114	168	229	267
Key ratios
Operating margin (EBITA), %	9.8	7.8	7.5	9.2	9.5	7.3	7.1	8.6	9.8
Cash flow
Operations	538	128	123	504	418	221	60	328	323
Investment activities	–230	–218	–363	–337	–217	–856	–123	–323	–163
Financing activities	–244	–4	130	–68	–64	567	45	–121	–71
Cash flow for the period	64	–94	–110	100	137	–68	–19	–116	89
Capital employed and financing
Operating capital employed	2,316	2,503	2,388	2,168	2,059	2,049	1,975	1,929	1,829
Goodwill	3,310	3,505	3,360	3,281	3,276	3,041	2,465	2,582	2,565
Acquisition-related intangible assets	159	172	163	155	163	154	81	87	70
Other operating capital	2	33	–52	14	38	71	46	–43	–40
Operating capital	5,786	6,214	5,859	5,617	5,536	5,314	4,567	4,555	4,424
Key ratios
Operating capital employed as % of revenue	20	22	21	20	19	19	18	17	16
Capital employed as a % of revenue	51	54	52	51	51	50	42	41	39
Net debt	2,415	2,873	2,413	2,220	2,322	2,337	1,418	1,432	1,454
Shareholders' equity	3,371	3,341	3,446	3,397	3,214	2,977	3,149	3,123	2,970

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

STATEMENT OF INCOME – BY QUARTER

		2012	2011			2010
MSEK			Jul–Sep Apr–Jun Jan–Mar Oct–Dec			Jul–Sep Apr–Jun Jan–Mar Oct–Dec			Jul–Sep
Revenue, continuing operations	2,734	2,787	2,665	2,723	2,681	2,548	2,489	2,656	2,759
Revenue, acquisitions	53	111	158	158	201	135	37	35	6
Total revenue	2,788	2,898	2,822	2,881	2,882	2,683	2,526	2,691	2,765
Production expenses	–2,131	–2,278	–2,222	–2,223	–2,243	–2,100	–1,991	–2,060	–2,120
Gross income	657	620	600	659	639	584	535	631	644
Selling and administration expenses	–384	–395	–388	–393	–367	–389	–357	–399	–373
Operating income (EBITA)1)	272	225	212	266	273	195	179	232	271
Amortization of acquisition-related intangible assets	–8	–7	–6	–7	–6	–5	–4	–4	–4
Acquisition-related costs2)	–14	–30	–5	–6	–5	–23	–7	0	0
Items affecting comparability	–	163)	–	94)	–	–534)	–	–	–
Operating income (EBIT)	251	204	201	262	262	114	168	229	267
Net financial items	–18	–16	–11	–15	–15	–16	–16	–30	–23
Income before taxes	234	188	190	247	247	98	152	199	244
Income tax	–70	–56	–57	–67	–82	–32	–49	–66	–87
Net income for the period5)	164	131	133	180	165	65	103	133	157
KEY RATIOS
Real growth, %	0	3	9	8	9	7	1	0	0
Organic growth, %	–2	–1	3	2	1	2	0	0	0
Gross margin, %	23.6	21.4	21.3	22.9	22.2	21.8	21.2	23.5	23.3
Selling and administration expenses as % of total revenue	–13.8	–13.6	–13.7	–13.6	–12.7	–14.5	–14.1	–14.8	–13.5
Operating margin (EBITA), %	9.8	7.8	7.5	9.2	9.5	7.3	7.1	8.6	9.8
Tax rate, %	30	30	30	27	33	33	32	33	36
Net margin, %	5.9	4.5	4.7	6.3	5.7	2.4	4.1	4.9	5.7
Earnings per share before dilution (SEK)	2.24	1.80	1.82	2.47	2.26	0.89	1.41	1.82	2.14

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–September 2012, refer to transaction costs of MSEK 7 (9), restructuring costs of MSEK 42 (1) and integration costs of MSEK 0 (25). Transaction costs for the period January–September 2012 amount to MSEK 0 for acquisitions in progress, to MSEK 7 for completed acquisitions and to MSEK 0 for discontinued acquisitions. Restructuring costs of MSEK 42 are primarily attributable to the acquisition of Efectivox in Spain.

3) Items affecting comparability refers to a reversal of part of the provision of MSEK 59 which was made in 2007, attributable to overtime compensation in Spain. In total, MSEK 25 has been reversed. 4) Of the items affecting comparability, in the second and fourth quarter 2011 respectively, MSEK –53 refers to incorrect valuation of assets and liabilities in the Austrian subsidiary, and MSEK 9 refers to a reversal of part of the provision of MSEK 59 which was made in 2007, attributable to overtime compensation in Spain.

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

BALANCE SHEET – BY QUARTER

		2012			2011		2010
MSEK	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30
ASSETS
Fixed assets
Goodwill	3,310	3,505	3,360	3,281	3,276	3,041	2,465	2,582	2,565
Acquisition-related intangible assets	159	172	163	155	163	154	81	87	70
Other intangible assets	86	77	87	82	75	70	68	66	60
Tangible fixed assets	2,822	2,919	2,891	2,887	2,789	2,646	2,490	2,610	2,550
Non interest-bearing financial fixed assets	412	463	442	459	407	371	342	345	428
Interest-bearing financial fixed assets	62	62	141	63	60	59	78	29	28
Total fixed assets	6,850	7,198	7,084	6,927	6,768	6,340	5,525	5,719	5,701
Current assets
Non interest-bearing current assets	1,849	2,006	1,965	1,728	1,831	1,858	1,677	1,585	1,613
Interest-bearing financial current assets	17	3	7	1	1	2	9	19	7
Liquid funds	264	211	298	413	317	170	234	259	379
Total current assets	2,130	2,220	2,270	2,142	2,149	2,031	1,920	1,863	1,998
TOTAL ASSETS	8,980	9,417	9,354	9,069	8,917	8,371	7,444	7,582	7,699
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity1)	3,371	3,341	3,446	3,397	3,214	2,977	3,149	3,123	2,970
Long-term liabilities
Interest-bearing long-term liabilities	2,729	3,096	2,689	2,671	2,642	2,496	1,644	629	1,307
Non interest-bearing provisions	926	971	937	969	953	864	799	879	981
Total long-term liabilities	3,655	4,067	3,626	3,640	3,595	3,360	2,444	1,507	2,288
Current liabilities
Tax liabilities	214	176	192	169	150	114	89	166	213
Non interest-bearing current liabilities	1,710	1,782	1,920	1,837	1,901	1,848	1,668	1,675	1,666
Interest-bearing current liabilities	29	52	169	25	58	72	95	1,110	562
Total current liabilities	1,954	2,010	2,281	2,032	2,108	2,033	1,851	2,951	2,441
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	8,980	9,417	9,354	9,069	8,917	8,371	7,444	7,582	7,699
KEY RATIOS
Equity ratio, %	38	35	37	37	36	36	42	41	39

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

CASH FLOW – BY QUARTER

		2012	2011				2010
MSEK		Jul–Sep Apr–Jun Jan–Mar Oct–Dec					Jul–Sep Apr–Jun Jan–Mar Oct–Dec		Jul–Sep
Additional information
Operating income (EBITA)1)	272	225	212	266	273	195	179	232	271
Depreciation	181	183	173	169	169	159	162	163	169
Change in accounts receivable	16	34	–47	54	–28	22	–20	21	–48
Change in other operating working capital and other items	116	–174	–120	69	68	–67	–128	44	27
Cash flow from operating activities before investments	585	269	219	557	482	308	193	460	420
Investments in fixed assets, net	–223	–142	–161	–323	–205	–195	–116	–263	–161
Cash flow from operating activities	362	127	58	234	277	113	77	198	259
Financial items paid and received	–26	–8	–18	–8	–21	–9	–25	–25	–28
Income tax paid	–9	–97	–76	–45	–43	–79	–108	–107	–68
Free cash flow	328	22	–36	181	213	26	–56	66	162
Cash flow effect of items affecting comparability	–3	–7	–0	–0	–0	–0	–0	–0	–0
Acquisition of operations2)	–7	–76	–203	–13	–6	–641	–7	–61	–2
Acquisition-related costs paid3)	–9	–29	–1	–0	–6	–19	–	–	–
Dividend paid	–	–273	–	–	–	–256	–	–	–
Repayments of leasing liabilities	–7	–5	–9	–3	–4	4	–4	–2	–8
Change in interest-bearing net debt excl liquid funds	–237	274	139	–65	–60	818	49	–119	–64
Cash flow for the period	64	–94	–110	100	137	–68	–19	–116	89
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	133	56	27	88	102	58	43	85	95

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

2) Acquisition of operations includes from January 1, 2011 acquisition-related transaction costs. 3) Refers to acquisition-related restructuring and integration costs.

KEY RATIOS

	2012	2011	2012	2011	2011	2010	R12
MSEK	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year	Full year
Operating margin (EBITA), %	9.8	9.5	8.3	8.0	8.3	8.0	8.6
Cash flow from operating activities as % of operating income (EBITA)	133	102	77	72	77	106	80
Return on capital employed, %	17	16	17	16	16	19	17
Real growth, %	0	9	4	6	7	–1	5
Organic growth, %	–2	1	0	1	1	–1	0
Total growth, %	–3	4	5	–3	–1	–8	7
Earnings per share before dilution, SEK	2.24	2.26	5.86	4.56	7.03	6.80	8.33
Equity ratio, %	38	36	38	36	37	41	38
Net debt, MSEK	2,415	2,322	2,415	2,322	2,220	1,432	2,415

Definitions

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

Return on capital employed, %

Operating income (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. Number of shares outstanding includes shares held in own custody which will be distributed to employees in the future.

Calculation for:

Jul–Sep 2012: 164/73,011,780 x 1,000,000 = 2.24 Jan –Sep 2012: 428/73,011,780 x 1,000,000 = 5.86

Earnings per share after dilution

Calculation for: Jul–Sep 2012: 164/75,566,780 x 1,000,000 = 2.17 Jan –Sep 2012: 428/75,566,780 x 1,000,000 = 5.66

Earnings per share fully diluted

Calculation for:

Jul–Sep 2012: 164/75,566,780 x 1,000,000 = 2.17 Jan –Sep 2012: 428/75,566,780 x 1,000,000 = 5.66

Operating income (EBITA)

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

Operating margin (EBITA), %

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

Operating income (EBIT)

Earnings before interest and tax.

R12

Rolling 12-months period (October 2011 up to and including September 2012).

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.

Net debt

Interest-bearing liabilities less interest-bearing assets and liquid funds.

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 November 9, 2012 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=209405 and follow the instructions, or by calling +44 (0)207 1620 177, +1 334 323 6203 or +46 (0)8 505 201 14.

The meeting can also be viewed online at www.loomis.com under section Investors, Reports & Presentations 2012.

A recording of the webcast will, when the information meeting has ended, be available at www.loomis.com under section Investors, Reports & Presentations 2012. A telephone recording of the meeting will be available until midnight on Novmber 23, 2012 on telephone number +44 (0)20 7031 4064 and +46(0)8 505 203 33, code 924 251.

Capital Markets Day

A Capital Markets Day will be held on November 14, 2012. The programme starts with lunch at 12:00 (GMT). The Capital Markets Day takes place at CPC, City Presentation Center, 4 Chiswell Street, London. To register at the event, please follow: http://invite.king-worldwide.com/_loomis/CMD2012/Default.htm

Future reporting and meetings

Year-end report	January – December	February 6, 2013
Interim report	January – March	May 6, 2013
Interim report	January – June	August 1, 2013
Interim report	January – September	November 6, 2013

Loomis´ Annual General Meeting will be held on Monday, May 6, 2013 in Stockholm. The Annual report for 2012 will be available at www.loomis.com in April 2013.

For further information

Lars Blecko, CEO +46 (0)70 641 49 10, e-mail: lars.blecko@loomis.com Anders Haker, CFO +46 (0)70 810 85 59, e-mail: anders.haker@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, November 9, 2012 at 08:00 a.m (CET).

Loomis AB (publ.) Corporate Identity Number 556620-8095, PO Box 702, SE-101 33 Stockholm, Sweden Telephone: +46 8-522 920 00, Fax: +46 8-522 920 10 www.loomis.com