Loomis — Interim / Quarterly Report 2013

Feb 4, 2014

January–December 2013

Managing cash in society.

October – December 2013

• n Revenue SEK 2,928 million (2,852). Real growth 3 percent (2) and organic growth 3 percent (0).
• n Operating income (EBITA)1) SEK 295 million (310) and operating margin 10.1 percent (10.9).
• n Income before taxes SEK 274 million (321) and income after taxes SEK 197 million (222).
• n Earnings per share before dilution SEK 2.62 (3.04) and SEK 2.62 after dilution (2.93).
• n Cash flow from operating activities SEK 321 million (313), equivalent to 109 percent (101) of operating income (EBITA).

Financial goals

January – December 2013

• n Revenue SEK 11,364 million (11,360). Real growth 2 percent (3) and organic growth 2 percent (0).
• n Operating income (EBITA)1) SEK 1,099 million (1,019) and operating margin 9.7 percent (9.0).
• n Income before taxes SEK 1,038 million (932) and income after taxes SEK 736 million (650).
• n Earnings per share before dilution SEK 9.83 (8.90) and SEK 9.78 after dilution (8.60).
• n Cash flow from operating activities SEK 957 million (860), equivalent to 87 percent (84) of operating income (EBITA).
• n Proposed dividend SEK 5.00 (4.50) per share.

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

Operating margin (EBITA) 10 percent by 2014, at the latest 0 4 8 12 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Goal Operating margin (EBITA) per quarter Operating margin (EBITA) rolling 12 months % 2011 2012 2013

Annual dividend

40–60 % of the Group's net income

*Dividend proposal for the 2014 Annual General Meeting.

Comments by the President and CEO

The trend of annual improvement in our operating margin is continuing.

The Group's operating income for 2013 amounted to SEK 1,099 million (1,019), while the operating margin increased to 9.7 percent (9.0). The positive trend of increased operating margins is continuing and if we look at the profitability improvement over the past five years, our operating margin is up 2.7 percentage points. Our operating margin improved in 2013 mainly due to continued efforts to improve efficiency at our branches. An increase in the proportion of revenue from cash management services in the USA and numerous new contracts in Europe have also contributed to our improved operating income.

In addition to positive growth in operating income, earnings per share were up by 10 percent amounting to SEK 9.83 (8.90). Cash flow from operating activities remained strong, amounting to SEK 957 million (860), equivalent to 87 percent (84) of operating income (EBITA).

In summary, I can report that 2013 was our most successful year since the listing in 2008 both in terms of operating margin and net income.

In my third quarter comments I wrote that we had started working on further developing our long-term plan for Loomis. We will continue to work on our efficiency improvements, which have proven to be successful, at the same time as we will increase our focus on growth-promoting activities. My colleagues and I are enthusiastic about persuing the successful development of Loomis.

Jarl Dahlfors President and CEO

First and foremost, I can report that the trend of annual improvement in our operating margin is continuing and that we are well on the way to achieving our operating margin goal of 10 percent in 2014. I am also happy to report organic growth of 2 percent for the year in both Europe and the USA. In 2012 the organic growth for both segments was 0 percent.

The Group's operating income (EBITA) for the fourth quarter amounted to SEK 295 million (310) and the operating margin was 10.1 percent (10.9). Adjusted for a positive non-recurring item of SEK 25 million reported in the USA in the fourth quarter of 2012 relating to the revaluation of medical and casualty provisions, the operating margin for the fourth quarter of 2013 was 0.1 percentage points better than the previous year.

In Europe the operating income was SEK 219 million (219) and the operating margin was 12.0 percent (12.4). The slightly lower margin is mainly due to costs incurred in the quarter linked to the contract with DNB in Norway which went into effect on September 1. The DNB contract is the single largest contract signed since Loomis was listed on the stock exchange in 2008. Furthermore, the cost of risk for the quarter was slightly higher than in the fourth quarter the previous year. During the quarter we acquired the cash handling operations of G4S in Slovakia, making us the market leader in that country. The acquisition is in line with our strategy to be number one or two in the markets where we operate. The integration process is going well and we look forward to developing the acquired business.

In the USA our operating income amounted to SEK 107 million (125) while our operating margin was 9.8 percent (11.5). After adjustment for the above-mentioned non-recurring item, the operating margin was 9.2 percent for the corresponding quarter the previous year. The improved results can mainly be attributed to our continuous efforts to improve efficiency and to increased revenue from our cash management services.

The Group and the segments in brief

	2013	2012	2013	2012
SEK m	Oct–Dec	Oct–Dec	Full year	Full year
Group total
Revenue	2,928	2,852	11,364	11,360
Real growth, %	3	2	2	3
Organic growth, %	3	0	2	0
Operating income (EBITA)1)	295	310	1,099	1,019
Operating margin, %	10.1	10.9	9.7	9.0
Earnings per share before dilution, SEK	2.622)	3.043)	9.832)	8.903)
Earnings per share after dilution, SEK	2.62	2.93	9.78	8.60
Cash flow from operating activities as a % of operating income (EBITA)	109	101	87	84
Segment
Europe
Revenue	1,831	1,762	7,005	6,955
Real growth, %	3	2	2	2
Organic growth, %	3	0	2	0
Operating income (EBITA)1)	219	219	794	736
Operating margin, %	12.0	12.4	11.3	10.6
USA
Revenue	1,097	1,091	4,359	4,405
Real growth, %	2	1	2	5
Organic growth, %	2	0	2	0
Operating income (EBITA)1)	107	125	414	400
Operating margin, %	9.8	11.5	9.5	9.1

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

2) The average number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 75,279,829 for the period October – December 2013 and 74,838,476 for the period January – December 2013. The average number includes 121,863 shares that are being held as treasury shares as of December 31, 2013 for Loomis' Incentive Scheme 2012. In accordance with agreements, the shares will be allotted to employees in the future.

3) The average number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 73,011,780, which includes 132,318 shares that were held as treasury shares as of December 31, 2012. The treasury shares were for Loomis' Incentive Scheme 2011 and have, in accordance with agreements, been allotted to employees.

Operating margin (EBITA)

Operating margin (EBITA) rolling 12 months

Operating margin (EBITA)

Operating margin (EBITA) per quarter

Revenue and income

	2013	2012	2013	2012
SEK m	Oct–Dec	Oct–Dec	Full year	Full year
Revenue	2,928	2,852	11,364	11,360
Operating income (EBITA)1)	295	310	1,099	1,019
Operating income (EBIT)	286	333	1,085	988
Income before taxes	274	321	1,038	932
Net income for the period	197	222	736	650
Key ratios
Real growth, %	3	2	2	3
Organic growth, %	3	0	2	0
Operating margin, %	10.1	10.9	9.7	9.0

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

October – December 2013

Revenue for the quarter amounted to SEK 2,928 million compared to SEK 2,852 million for the corresponding period the previous year. Both real growth and organic growth amounted to 3 percent (2 and 0 respectively). The growth is mainly explained by the contracts signed in Sweden at the end of 2012 and in Norway in 2013, and by increased revenue from cash management services (CMS) in the USA.

Operating income (EBITA) amounted to SEK 295 million, compared to SEK 310 million for the corresponding period the previous year. At comparable exchange rates the negative change was SEK 16 million. A non-recurring item of SEK 25 million relating to the revaluation of medical and casualty provisions in the USA had a positive effect on operating income for the fourth quarter of 2012. After adjustment for the non-recurring item, the operating margin for the fourth quarter of 2012 amounted to 10.0 percent, while the operating margin for the current quarter was 10.1 percent.

The operating income for the quarter (EBIT) amounted to SEK 286 million (333) and includes acquisition-related costs of SEK –2 million (30). The fourth quarter of 2012 included a positive item of SEK 33 million for a repayment installment of the purchase price for Pendum's cash handling operations.

Income before taxes of SEK 274 million (321) includes a net financial expense of SEK –12 million (–11).

The tax expense for the quarter amounted to SEK 77 million (99) and represents a tax rate of 28 percent (31).

January – December 2013

Revenue for the full year amounted to SEK 11,364 million (11,360) and both real growth and organic growth amounted to 2 percent (3 and 0 respectively). Revenue was positively affected by new assignments that started in both Europe and the USA in the latter part of 2012 and in 2013, but this was partially offset by the decline in revenue following the cancelation of low profitability contracts in France and the UK in 2012.

The operating income (EBITA) amounted to SEK 1,099 (1,019) million and the operating margin improved to 9.7 percent (9.0). At comparable exchange rates the income improvement was SEK 92 million. The continuous Group-wide efforts to achieve improved efficiency, positive organic growth and an increase in the proportion of revenue from cash management services are the main explanations for the positive earnings growth.

The Group's staff turnover remained at an acceptable level of 22 percent (22).

Operating income (EBIT) amounted to SEK 1,085 million (988), which includes acquisition-related costs and revenue totaling SEK 28 million (–18) and an item affecting comparability of SEK –14 million (16). The acquisition-related item of SEK 28 million includes a repayment installment of SEK 41 million (33) of the purchase price for Pendum's cash handling operations and the item affecting comparability is to a large extent attributable to a write-down of the book value of an operation within the European segment.

Income before taxes of SEK 1,038 million (932) includes a net financial expense of –47 SEK million (–56). The improvement is mainly attributable to lower average net debt and lower interest rate levels. Due to the inclusion of the defined benefit pension liability in net debt from the beginning of 2013, the net financial position was negatively affected by SEK –9 million.

The tax expense for the year amounted to SEK 302 million (282), which represents a tax rate of 29 percent (30).

The segments

LOOMIS EUROPE

	2013	2012	2013	2012
SEK m	Oct–Dec	Oct–Dec	Full year	Full year
Revenue	1,831	1,762	7,005	6,955
Real growth %	3	2	2	2
Organic growth, %	3	0	2	0
Operating income (EBITA)1)	219	219	794	736
Operating margin, %	12.0	12.4	11.3	10.6

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

Revenue and operating income – Europe October – December 2013

Revenue for the fourth quarter amounted to SEK 1,831 million (1,762) and both real growth and organic growth amounted to 3 percent (2 and 0 respectively). The growth is mainly explained by the contracts signed in Sweden at the end of 2012 and the contract signed in Norway in 2013.

Operating income (EBITA) amounted to SEK 219 million (219) and the operating margin amounted to 12.0 percent (12.4). Start-up costs relating to the implementation of the DNB contract won in Norway negatively affected the current quarter's operating income. Also, the European segment has not had the same favorable development in cost of risk as in the corresponding period the previous year.

January – December 2013

Revenue for the European segment for 2013 amounted to SEK 7,005 million (6,955). Real growth amounted to 2 percent (2) and organic growth to 2 percent (0). The growth is mainly explained by the contracts signed in Sweden at the end of 2012 and the contract won in Norway in 2013 but also, to some extent, by the contracts won in Turkey in 2013. Growth for the period was negatively affected by the cancellation of low profitability contracts in the UK and France in 2012 and by somewhat lower volumes in parts of southern Europe.

Operating income (EBITA) for the year amounted to SEK 794 million (736) and the operating margin was 11.3 percent (10.6). Most of the European countries had a positive earnings growth in 2013, although the Nordic countries made the biggest contribution to the profitability improvement. The previous year's operating income was negatively affected by restructuring costs associated with cancelled contracts in France and the UK. The contracts were cancelled due to low profitability. The operating income in 2012 was also negatively affected by a non-recurring cost of SEK 16 million relating to a dispute lost in Denmark.

LOOMIS USA

	2013	2012	2013	2012
SEK m	Oct–Dec	Oct–Dec	Full year	Full year
Revenue	1,097	1,091	4,359	4,405
Real growth %	2	1	2	5
Organic growth, %	2	0	2	0
Operating income (EBITA)1)	107	125	414	400
Operating margin, %	9.8	11.5	9.5	9.1

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

Revenue and operating income – USA October – December 2013

Revenue for the fourth quarter in the US segment amounted to SEK 1,097 million (1,091) and both real growth and organic growth were 2 percent (1 and 0 respectively). The growth is mainly explained by increased revenue from cash management services (CMS), which accounted for 28 percent (26) of the segment's total revenue. In 2013 a number of large CMS contracts were signed and are now fully operational and having a positive effect on revenue.

Operating income (EBITA) for the quarter was SEK 107 million (125) and the operating margin was 9.8 percent (11.5). A non-recurring item of SEK 25 million relating to the revaluation of medical and casualty provisions in the USA had a positive effect on the operating income for the fourth quarter of 2012. After adjustment for the non-recurring item, the operating margin for the fourth quarter of 2012 amounted to 9.2 percent. The improvement is mainly explained by the fact that most branches are continuing to report positive earnings growth, which is a result of the ongoing focus on cutting costs and improving efficiency. Also, the proportion of CMS in relation to total revenue continues to increase.

January – December 2013

Revenue for the full year amounted to SEK 4,359 million compared to SEK 4,405 million in 2012. Both real growth and organic growth amounted to 2 percent (5 and 0 respectively). Increased revenue from CMS is the main explanation for the growth.

Operating income (EBITA) amounted to SEK 414 million (400) and the operating margin was 9.5 percent (9.1). The operating margin was also positively affected by continuous efforts to cut costs and improve efficiency, which are yielding results. As a result, most branches are continuing to experience positive earnings growth. The margin improvement was also helped by the fact that revenue from cash management services continued to increase and for the full year 2013 amounted to 27 percent (24) of the segment's total revenue.

Cash flow

STATEMENT OF CASH FLOWS

	2013	2012	2013	2012
SEK m	Oct–Dec	Oct–Dec	Full year	Full year
Operating income (EBITA)1)	295	310	1,099	1,019
Depreciation	195	179	758	717
Change in accounts receivable	42	51	6	54
Change in other operating working capital and other items	51	–5	–186	–182
Cash flow from operating activities before investments	582	534	1,677	1,607
Investments in fixed assets, net	–262	–222	–720	–747
Cash flow from operating activities	321	313	957	860
Financial items paid and received	–12	–11	–49	–63
Income tax paid	–69	–70	–319	–252
Free cash flow	239	232	590	545
Cash flow effect of items affecting comparability	–4	–0	–7	–10
Acquisition of operations2)	–19	–3	–29	–289
Acquisition-related costs and revenue, paid and received3)	–	29	40	–10
Dividend paid	–	–	–338	–273
Repayment of leasing liabilities	–16	–0	–40	–21
Change in interest-bearing net debt excl. liquid funds	–259	–142	–264	34
Cash flow for the period	–60	116	–48	–24
Liquid funds at beginning of the period	388	264	380	413
Translation differences in liquid funds	5	0	1	–8
Liquid funds at end of the period	333	380	333	380
KEY RATIOS
Cash flow from operations as a % of operating income (EBITA)	109	101	87	84
Investments in relation to depreciation	1.3	1.2	1.0	1.0
Investments as a % of total revenue	8.9	7.8	6.3	6.6

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

2) Acquisition of operations includes the cash flow effect of acquisition-related costs.

3) Refers to acquisition-related restructuring and integration costs. During the first quarter of 2013 and the fourth quarter of 2012 repayment installments of the purchase price for Pendum's cash handling operations were received in the amounts of SEK 41 million and SEK 33 million respectively.

Cash flow

October – December 2013

Cash flow from operating activities was SEK 321 million (313), equivalent to 109 percent (101) of operating income (EBITA).

The cash flow effect of the change in other working capital and other items, as well as changes in accounts receivable, amounted to SEK 93 million (46).

Net investments in fixed assets during the period amounted to SEK 262 million (222), which can be compared to depreciation of fixed assets of SEK 195 million (179). During the period, investments of SEK 159 million (98) were made in vehicles and security equipment, which are the two main categories of recurring maintenance investments.

January – December 2013

Cash flow from operating activities of SEK 957 million (860) amounted to 87 percent (84) of operating income (EBITA).

The cash flow effect of the change in other working capital and other items, as well as changes in accounts receivable, amounted to SEK –180 million (–128).

Net investments in fixed assets during the period amounted to SEK 720 million (747), which can be compared to depreciation of fixed assets of SEK 758 million (717). Investments were made during the period of SEK 442 million (290) in vehicles and security equipment, which are two of the main categories of recurring maintenance investments.

Cash flow from paid and received acquisition-related costs and revenue had a positive effect of SEK 41 million (33) from a repayment installment of the purchase price for Pendum's cash handling operations.

Cash flow for the period includes a dividend to shareholders of SEK 338 million (273).

Capital employed

Capital employed amounted to SEK 6,290 million (6,070 as of December 31, 2012). Return on capital employed amounted to 17 percent (17 as of December 31, 2012).

Shareholders' equity and financing

Shareholders' equity amounted to SEK 4,165 million (3,595 as of December 31, 2012). Shareholders' equity increased during the year by SEK 164 million as a result of a new issue of 2,268,049 Class B shares. The new share issue was related to the conclusion of Loomis' warrant subscription program 2009/2013. The return on shareholders' equity was 18 percent (18 as of December 31, 2012) and the equity ratio was 45 percent (40 as of December 31, 2012).

Net debt amounted to SEK 2,125 million (2,475 as of December 31, 2012). The net debt was affected in the second quarter of 2013 by a dividend to shareholders of SEK 338 million (273).

Acquisitions

		Country Segment	Date of consolida tion	Acquired share (%)1)	Annual revenue, LOC m2)	Number of em ployees	Pur chase price3) SEK m	Good will, SEK m	Acquisi tion related intangible assets, SEK m	Other capital em ployed, SEK m
Opening balance January 1, 2013								3,317	153
G4S Cash Solutions (SK) a.s.5)	Slovakia		Europe December 2	100	7	269	18	04)	–	18
Total acquisitions January– December								0	–	18
Amortization of acquisition related intangible assets								–	–28
Exchange rate differences								29	1
Closing balance December 31, 2013								3,346	126

1) Refers to voting rights.

2) Estimated annual revenue translated to SEK as per acquisition date amounted to approximately SEK 60 million.

3) Purchase price, translated to SEK as per acquisition date.

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

5) The acquisition analysis is subject to final adjustment up to one year after the acquisition date.

Acquisitions January – December 2013

In December 2013 Loomis acquired the shares in G4S Cash Solutions (SK) a.s. The acquisition makes Loomis the market leader in Slovakia. The business was consolidated by Loomis as of December 2, 2013.

Significant events and number of full-time employees

Significant events during the period

In January 2013, it was announced that Jarl Dahlfors, Executive Vice President and Regional President USA, had been appointed as President and CEO of Loomis. Jarl Dahlfors took up the post on September 1, 2013, taking over from Lars Blecko who took up the position as Executive Vice President and Regional President USA on the same date.

In February 2013, Loomis' UK subsidiary signed a partnership agreement with NCR whereby NCR will take over ATM technical service operations in the UK. Under the agreement Loomis will purchase services from NCR in order to continue to offer its bank customers high quality service for their ATMs. The partnership creates competitive benefits and enables Loomis to provide a unique offering of combined services which brings opportunities for new business in the UK. In total, approximately 150 technicians will have a new employer, although they will still be serving some of the same customers.

In February 2013 Loomis completed a first issue under a commercial paper program. The program enables Loomis to issue commercial papers up to a total of SEK 1,500 million. The commercial papers may be issued with a term to maturity of up to 12 months. The commercial paper program supplements Loomis' core financing, diversifies the Company's debt structure and allows for more flexibility in the management of debt and liquidity. The program has had a positive impact on the Group's net financial expense for 2013.

In March 2013 it was announced that Loomis' warrant subscription program 2009/2013 was about to be concluded. As a result of the conclusion process, the number of Class B shares increased in March by 2,219,479 and Loomis AB received SEK 160 million in connection with the new share issue. In July 2013 the warrant subscription program was concluded, resulting in an increase in the number of Class B shares of 48,570 and an additional SEK 4 million for Loomis AB. As of December 31, 2013, Loomis AB's share capital was SEK 376,399,145. The number of shares in the Company is 75,279,829 of which 3,428,520 are Class A shares carrying ten votes each, and 71,851,309 are Class B shares carrying one vote each. The total number of votes in Loomis AB (publ) after the conclusion of the warrant program is 106,136,509. The subscription period for the shares was March 1 to May 31, 2013 and the subscription price was SEK 72.50 per share.

In March 2013 negotiations were concluded concerning a possible additional repayment of the purchase price for the acquisition of Pendum's cash handling operation. The negotiations resulted in a payment to Loomis of an additional USD 6.3 million (around SEK 41 million) in the first quarter of 2013. Similar to the first repayment of USD 4.9 million (around SEK 33 million) which was received in the fourth quarter of 2012, this repayment was also reported as acquisition-related revenue. Acquisition-related revenue is not included in operating income (EBITA). Combined, the repayments amount to USD 11.2 million (around SEK 74 million).

During the period March 20 – 22, 2013 and as of May 16, 2013, Loomis' AB repurchased a total of 71,869 Class B shares. The repurchased shares constitute a portion of the shares that will later be transferred to participants in Incentive Scheme 2012. As of December 31, 2013, Loomis AB held 121,863 Class B treasury shares.

In April 2013 Loomis' US subsidiary secured a contract with one of USA's largest banks to take over its cash management operations at four locations, including two of the bank's major units in Houston and San Diego. Under this assignment the bank branches' cash will be processed at Loomis' cash centers instead of in the banks' own vaults. The assignment began in June 2013 and has an annual order value of approximately USD 7 million. The order value for 2013 amounts to approximately USD 3 million.

At the Annual General Meeting on May 6, 2013 Ingrid Bonde and Cecilia Daun Wennborg were elected as new board members. The 2013 Annual General Meeting also voted in favor of the Board's proposal to introduce an incentive scheme (Incentive Scheme 2013) which will involve two thirds of the participants' variable remuneration being paid out in cash in the year after it is earned, with the remaining one third being in the form of Class B shares in Loomis AB which will be allotted at the beginning of 2015. To enable Loomis to allot these shares, the Annual General Meeting resolved that Loomis AB will enter into a share swap agreement with a third party under which the third party will acquire the Loomis shares in its own name and transfer them to the incentive scheme participants.

In May 2013 it was announced that Loomis' Turkish subsidiary had signed a three-year agreement with HSBC for cash in transit and cash management services. Under the agreement, which initially covers a three-year period, Loomis will provide cash to approximately 260 bank branches and approximately 470 ATMs in 16 cities. The agreement means that Loomis, for the first time, will be responsible for the entire cash management operation for a large customer in Turkey. It also represents an important step for Loomis towards being a nationwide operator in Turkey. It was also announced that Loomis' Turkish subsidiary had won several prestigious contracts in 2013, including a two-year contract with Istanbul Ulasim, Istanbul's subway system. Under this agreement, Loomis will supply ticket machines and turnstiles along five subway lines with cash and will also be responsible for cash processing. The Turkish subsidiary has also secured an expanded contract with ING in Turkey. The renewed contract covers more than 200 of ING's bank branches and spans three years. The combined annual contract value for HSBC, Istanbul Ulasim and ING is approximately SEK 40 million.

In June 2013 Loomis' Norwegian subsidiary was appointed by DNB, Norway's largest bank, to manage all of the bank's cash handling services in Norway. The assignment covers cash in transit (CIT), cash management services (CMS) and responsibility for managing 880 machines, more than 300 of which are ATMs. The contract covers a period of three years and includes an option for DNB to extend the contract for an additional two years. The total annual contract value is expected to exceed NOK 100 million and the contract went into effect on September 1, 2013. The contract, which is strategically important and makes Loomis the market leader in Norway, is the single largest contract the Group has secured since the Company was listed on the stock exchange in 2008.

In November 2013 it was announced that Johannes Bäckman, Head of Growth, and Patrik Högberg, Regional President Nordic Countries, have joined Loomis Group management.

Number of full-time employees

The average number of full-time employees for 2013 was 19,442 (19,448). The ongoing cost-saving programs have primarily reduced the number of overtime hours and temporary employees, but have also reduced 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.

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 relate to fluctuations in exchange rates, particularly as regards USD and EUR, increased interest rates and the risk of possible impairment of assets.

Financial risks

Loomis is exposed to risk associated with financial instruments, such as liquid funds, accounts receivable, accounts payable and loans. The risks related to these instruments are, primarily, the following:

• Interest rate risks associated with liquid funds and loans
• Exchange rate risks associated with transactions and recalculation of shareholder's equity
• Financial risks relating to the Company's capital requirements
• Liquidity risks associated with short-term solvency
• Credit risks attributable to financial and commercial activities
• Capital risks attributable to the capital structure
• Price risks associated with changes in raw material prices (primarily fuel)

Factors of uncertainty

The economic trend in 2013 impacted certain countries and geographic areas negatively, and it cannot be ruled out that revenue and income for 2014 may be impacted.

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 and this should be taken into consideration when making assessments on the basis of interim financial information. The main reason for these seasonal variations is that the need for cash handling services increases during the summer vacation period, July and August, and during the holiday season at the end of the year, i.e. November and December.

Parent Company

SUMMARY STATEMENT OF INCOME

	2013	2012	2011
SEK m	Full year	Full year	Full year
Gross profit	292	199	195
Operating income (EBIT)	154	73	107
Income after financial items	609	73	333
Net income for the period	494	16	211

SUMMARY BALANCE SHEET

	2013	2012	2011
SEK m	Dec 31	Dec 31	Dec 31
Fixed assets	7,426	7,355	7,578
Current assets	541	475	692
Total assets	7,967	7,830	8,271
Shareholders' equity	4,8321)	4,5072)	4,6543)
Liabilities	3,134	3,323	3,617
Total shareholders' equity and liabilities	7,967	7,830	8,271

1) As of December 31, 2013 there were 121,863 Class B treasury shares held for subsequent allotment to employees in accordance with Incentive Scheme 2012. 2) As of December 31, 2012 there were 132,318 Class B treasury share held for subsequent allotment to employees in accordance with Incentive Scheme 2011. 3) As of December 31, 2011 there were 124,109 Class B treasury shares held for subsequent allotment to employees in accordance with Incentive Scheme 2010.

The Parent Company does not engage in any operating activities. It is only involved in Group management and support functions. The average number of full-time employees at the head office in 2013 was 18 (17).

The Parent Company's revenue mainly comes from franchise fees and other revenue from subsidiaries. The change in income after financial items is mainly explained by the writedown in 2012 of the book value of the shares in the UK subsidiary in the amount of SEK 468 million. The write-down was made to bring the carrying amounts in the Parent Company in line with the book value in the Group and for this reason the write-down had no effect on the Group's statement of income or balance sheet.

The Parent Company's fixed assets consist mainly of shares in subsidiaries and loan receivables from subsidiaries. The liabilities are mainly interest-bearing liabilities.

Other significant events

For critical estimates and assessments as well as contingent liabilities, please refer to pages 53 and 80 of the 2012 Annual Report. As there have been no other significant changes to the events described in the Annual Report, no further comments have been made on these matters in this year-end report.

Accounting principles

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

This year-end report has been prepared according to IAS 34 Interim Financial Reporting. The most important accounting principles according to IFRS, which are the accounting standards used in the preparation of this year-end report, are described in Note 2 on pages 47–52 of the 2012 Annual Report.

As of January 1, 2013, the Group is applying the EU-adopted amended standard IAS 19 Employee Benefits. The amendment means that past service costs are recognized immediately. Interest expenses and the expected return on plan assets are replaced by net interest calculated applying the discount rate based on the net surplus or net deficit in the defined benefit plan. For years prior to 2013 the impact is not expected to amount to significant amounts. The costs relating to defined-benefit compensation are expected to increase by around SEK 10 million annually before tax. The Group's accounts have also been affected by a reclassification of the pension liability to an interest-bearing liability which is included in the net debt. As a result of this reclassification, the net interest is recognized as a financial expense.

The issued commercial papers are categorized as long-term liabilities. Previous periods have been restated accordingly.

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 most important accounting principles with respect to the Parent Company can be found in Note 36 on page 86 of the 2012 Annual Report.

Outlook for 2014

The Company is not providing any forecast information for 2014.

Stockholm, February 4, 2014

Jarl Dahlfors President and CEO

Report of Review of Interim Financial Information

(translation of the Swedish original)

Report of Review of year-end Financial Information prepared in accordance with IAS 34 and Chapter 9 of the Annual Accounts Act.

Introduction

We have reviewed this report for the period 1 January 2013 to 31 December 2013 for Loomis AB (publ.). The board of directors and the CEO are responsible for the preparation and presentation of this year-end report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this year-end report based on our review.

Scope of Review

We conducted our review in accordance with the Swedish Standard on Review Engagements ISRE 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.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the year-end 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, February 4, 2014

PricewaterhouseCoopers AB

Patrik Adolfson Authorized Public Accountant

STATEMENT OF INCOME

	2013	2012	2013	2012	2011
SEK m	Oct–Dec	Oct–Dec	Full year	Full year	Full year
Revenue, continuing operations	2,923	2,798	11,321	10,983	10,441
Revenue, acquisitions	5	55	43	376	532
Total revenue	2,928	2,852	11,364	11,360	10,973
Production expenses	–2,238	–2,150	–8,730	–8,781	–8,556
Gross income	690	702	2,634	2,579	2,417
Selling and administration expenses	–395	–393	–1,534	–1,560	–1,506
Operating income (EBITA)1)	295	310	1,099	1,019	912
Amortization of acquisition-related intangible assets	–7	–7	–28	–28	–21
Acquisition-related costs and revenue2)	–2	30	28	–18	–42
Items affecting comparability	–	–	–143)	164)	–445)
Operating income (EBIT)	286	333	1,085	988	805
Net financial items	–12	–11	–47	–56	–62
Income before taxes	274	321	1,038	932	743
Income tax	–77	–99	–302	–282	–230
Net income for the period6)	197	222	736	650	513
KEY RATIOS
Real growth, %	3	2	2	3	7
Organic growth, %	3	0	2	0	1
Gross margin, %	23.6	24.6	23.2	22.7	22.0
Selling and administration expenses as % of total revenue	–13.5	–13.8	–13.5	–13.7	–13.7
Operating margin (EBITA), %	10.1	10.9	9.7	9.0	8.3
Tax rate, %	28	31	29	30	31
Net margin, %	6.7	7.8	6.5	5.7	4.7

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

2) Acquisition-related costs and revenue for the period January – December 2013, refer to transaction costs of SEK –6 million (–9), restructuring costs of SEK –6 million (–42) and integration costs of

SEK –1 million (0) as well as a repayment installment of the purchase price attributable to the cash handling operations of Pendum in the amount of SEK 41 million (33). Transaction costs for the period January – December 2013 amount to SEK 0 million for acquisitions in progress, to SEK –6 million for completed acquisitions and to SEK 0 million for discontinued acquisitions.

3) Items affecting comparability, SEK –14 million is to a large extent attributable to a write-down of book values in an operation within the European segment.

4) Items affecting comparability refers to a reversal of part of the provision of SEK 59 million which was made in 2007, attributable to overtime compensation in Spain. In total, SEK 25 million has been reversed.

5) Of the items affecting comparability, SEK –53 million refers to incorrect valuation of assets and liabilities in the Austrian subsidiary, and SEK 9 million refers to a reversal of part of the provision of SEK 59 million which was made in 2007, attributable to overtime compensation in Spain.

6) Net income for the period is entirely attributable to the owners of the Parent Company.

STATEMENT OF COMPREHENSIVE INCOME

	2013	2012	2011
SEK m	Full year	Full year	Full year
Net income for the period	736	650	513
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	–9	–34	–30
Items that may be reclassified to the statement of income
Exchange rate differences	17	–144	43
Cash flow hedges	–	3	4
Other revaluation2)	–	–	–
Other comprehensive income and expenses for the period, net after tax	8	–175	17
Total comprehensive income for the period1)	744	474	530

1) Comprehensive income for the period is entirely attributable to the owners of the Parent Company.

2) Relates to revaluation of a contingent consideration for the acquisition of Pendum's cash handling operations. A repayment installment of SEK 33 million was received in Q4 2012 and has been recycled to the statement of income, and an additional repayment installment of SEK 41 million was received in Q1 2013 and has been recycled to the statement of income, which is why the impact on other comprehensive income is nil. Negotiations have been concluded and no further repayments will be received.

BALANCE SHEET

	2013	2012	2011
SEK m	Dec 31	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	3,346	3,317	3,281
Acquisition-related intangible assets	126	153	155
Other intangible assets	93	93	82
Tangible fixed assets	2,972	2,865	2,887
Non-interest-bearing financial fixed assets2)	447	414	458
Interest-bearing financial fixed assets1) 2)	61	66	65
Total fixed assets	7,045	6,907	6,927
Current assets
Non-interest-bearing current assets	1,879	1,689	1,728
Interest-bearing financial current assets1)	10	10	1
Liquid funds	333	380	413
Total current assets	2,222	2,079	2,142
TOTAL ASSETS	9,267	8,986	9,069
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity3)	4,165	3,595	3,397
Long-term liabilities
Interest-bearing long-term liabilities2)	1,849	2,883	2,998
Non-interest-bearing provisions2)	674	663	642
Total long-term liabilities	2,523	3,547	3,640
Current liabilities
Tax liabilities	80	74	169
Non-interest-bearing current liabilities	1,819	1,722	1,837
Interest-bearing current liabilities	680	48	25
Total current liabilities	2,579	1,845	2,032
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	9,267	8,986	9,069
KEY RATIOS
Return of shareholders' equity, %	18	18	15
Equity ratio, %	45	40	37

1) All derivatives are recognized at fair value on the balance sheet date in accordance with IFRS.

2) As of the beginning of the 2013 financial year the defined benefit pension obligation is included in net debt. To reflect this change the comparative figures have been adjusted.

3) Shareholders' equity in its entirety is attributable to the owners of the Parent Company.

DATA PER SHARE

	2013	2012	2013	2012	2011
SEK	Oct–Dec	Oct–Dec	Full year	Full year	Full year
Earnings per share before dilution	2.621)	3.042)	9.831)	8.902)	7.033)
Earnings per share after dilution	2.62	2.93	9.78	8.60	6.79
Shareholders' equity per share after dilution	55.32	47.57	55.32	47.57	44.96
Cash flow from operating activities per share after dilution	6.60	5.95	17.29	16.40	15.92
Dividend	–	–	4.50	3.75	3.50
Number of outstanding shares (millions)	75.3	73.0	75.3	73.0	73.0
Average number of outstanding shares (millions)	75.31)	73.02)	74.81)	73.02)	73.03)

1) The average number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 75,279,829 for the period October – December 2013 and 74,838,476 for the period January – December 2013. The average number of outstanding shares includes 121,863 shares that are being held as treasury shares as of December 31, 2013. The treasury shares are for Loomis' Incentive Scheme 2012 and will, in accordance with agreements, be allotted to employees in the future.

2) The average number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 73,011,780, which includes 132,318 shares that were held as treasury shares as of December 31, 2012. The treasury shares were for Loomis' Incentive Scheme 2011 and have, in accordance with agreements, been allotted to employees.

3) The average number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 73,011,780, which includes 124,109 shares that were held as treasury shares as of December 31, 2011. The treasury shares were for Loomis' Incentive Scheme 2010 and have, in accordance with agreements, been allotted to employees.

ADDITIONAL INFORMATION INTANGIBLE ASSETS

		Dec 31, 2013		Dec 31, 2012			Dec 31, 2011
SEK m	Goodwill	Acquisition related	Other	Goodwill	Acquisition related	Other	Goodwill	Acquisition related	Other
Opening balance	3,317	153	93	3,281	155	82	2,582	87	66
Acquisitions/Investments	0	–	21	217	29	32	569	79	23
Amortization/Impairment	–	–28	–21	–	–28	–19	–	–21	–16
Exchange rate differences	29	1	0	–181	–3	–1	130	10	1
Reclassifications	–	–	–	–	–	–1	–	–	8
Closing balance	3,346	126	93	3,317	153	93	3,281	155	82

CHANGE IN SHAREHOLDERS' EQUITY

	2013	2012	2011
SEK m	Full year	Full year	Full year
Opening balance	3,595	3,397	3,123
Actuarial gains and losses after tax	–9	–34	–30
Exchange rate differences	17	–144	43
Cash flow hedges	–	3	4
Total other comprehensive income	8	–175	17
Net income for the period	736	650	513
Total comprehensive income	744	474	530
Dividend paid to Parent Company's shareholders	–338	–273	–256
Share-related remuneration1)	0	–4	–1
New share issue related to warrants	164	–	–
Other revaluation2)	–	–	–
Closing balance	4,165	3,595	3,397

1) Including the repurchase of warrants.

2) Relates to a revaluation of a contingent consideration for the acquisition of Pendum's cash handling operations. A repayment installment of SEK 33 million was received in Q4 2012 and has been recycled to the statement of income, and an additional repayment installment of SEK 41 million was received in Q1 2013 and has been recycled to the statement of income, which is why the impact on other comprehensive income is nil. No further repayments relating to Pendum will be received.

STATEMENT OF CASH FLOWS

	2013	2012	2013	2012	2011
SEK m	Oct–Dec	Oct–Dec	Full year	Full year	Full year
Income before taxes	274	321	1,038	932	743
Items not affecting cash flow, items affecting comparability and acquisition-related costs	198	153	762	687	763
Income tax paid	–69	–70	–319	–252	–274
Change in accounts receivable	42	51	6	54	28
Change in other operating working capital and other items	51	–5	–186	–182	–58
Cash flow from operations	496	450	1,302	1,239	1,203
Cash flow from investment activities	–281	–192	–709	–1,003	–1,533
Cash flow from financing activities	–275	–142	–641	–261	480
Cash flow for the period	–60	116	–48	–24	150
Liquid funds at beginning of the period	388	264	380	413	259
Translation differences in liquid funds	5	0	1	–8	3
Liquid funds at end of the period	333	380	333	380	413
KEY RATIOS
Cash flow from operations per share after dilution, SEK	6.60	5.95	17.29	16.40	15.92

STATEMENT OF CASH FLOWS, ADDITIONAL INFORMATION

	2013	2012	2013	2012	2011
SEK m	Oct–Dec	Oct–Dec	Full year	Full year	Full year
Operating income (EBITA)1)	295	310	1,099	1,019	912
Depreciation	195	179	758	717	658
Change in accounts receivable	42	51	6	54	28
Change in other operating working capital and other items	51	–5	–186	–182	–58
Cash flow from operating activities before investments	582	534	1,677	1,607	1,540
Investments in fixed assets, net	–262	–222	–720	–747	–840
Cash flow from operating activities	321	313	957	860	700
Financial items paid and received	–12	–11	–49	–63	–62
Income tax paid	–69	–70	–319	–252	–274
Free cash flow	239	232	590	545	364
Cash flow effect of items affecting comparability	–4	–0	–7	–10	–1
Acquisition of operations2)	–19	–3	–29	–289	–667
Acquisition-related costs and revenue, paid and received3)	–	29	40	–10	–26
Dividend paid	–	–	–338	–273	–256
Repayments of leasing liabilities	–16	–0	–40	–21	–6
Change in interest-bearing net debt excluding liquid funds	–259	–142	–264	34	741
Cash flow for the period	–60	116	–48	–24	150
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	109	101	87	84	77
Investments in relation to depreciation	1.3	1.2	1.0	1.0	1.3
Investments as a % of total revenue	8.9	7.8	6.3	6.6	7.7

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

2) Acquisition of operations includes the cash flow effect of acquisition-related costs. 3) Refers to acquisition-related restructuring and integration costs. During the first quarter of 2013 and the fourth quarter of 2012 repayment installments of the purchase price for Pendum's cash handling operations were received in the amounts of SEK 41 million and SEK 33 million respectively.

SEGMENT OVERVIEW STATEMENT OF INCOME

	2013	2012	2013	2012	2011
SEK m	Oct–Dec	Oct–Dec	Full year	Full year	Full year
Europe
Revenue	1,831	1,762	7,005	6,955	6,934
Real growth, %	3	2	2	2	3
Organic growth, %	3	0	2	0	2
Operating income (EBITA)1)	219	219	794	736	714
Operating margin (EBITA), %	12.0	12.4	11.3	10.6	10.3
USA
Revenue	1,097	1,091	4,359	4,405	4,039
Real growth, %	2	1	2	5	12
Organic growth, %	2	0	2	0	0
Operating income (EBITA)1)	107	125	414	400	295
Operating margin (EBITA), %	9.8	11.5	9.5	9.1	7.3
Other 2)
Revenue	–	–	–	–	–
Operating income (EBITA)1)	–32	–34	–109	–117	–97
Group total
Revenue	2,928	2,852	11,364	11,360	10,973
Real growth, %	3	2	2	3	7
Organic growth, %	3	0	2	0	1
Operating income (EBITA)1)	295	310	1,099	1,019	912
Operating margin (EBITA), %	10.1	10.9	9.7	9.0	8.3

SEGMENT OVERVIEW STATEMENT OF INCOME – BY QUARTER

	2013			2012	2011
SEK m	Oct–Dec		Jul–Sep Apr–Jun Jan–Mar Oct–Dec					Jul–Sep Apr–Jun Jan–Mar Oct–Dec
Europe
Revenue	1,831	1,800	1,733	1,641	1,762	1,710	1,764	1,720	1,778
Real growth, %	3	4	2	–1	2	0	2	5	4
Organic growth, %	3	4	2	–3	0	–2	–2	3	3
Operating income (EBITA)1)	219	246	181	148	219	206	158	152	204
Operating margin (EBITA), %	12.0	13.7	10.4	9.0	12.4	12.1	9.0	8.8	11.5
USA
Revenue	1,097	1,098	1,099	1,065	1,091	1,077	1,134	1,102	1,104
Real growth, %	2	4	2	0	1	–1	3	18	17
Organic growth, %	2	4	2	0	0	–2	–1	3	1
Operating income (EBITA)1)	107	87	127	93	125	92	95	88	89
Operating margin (EBITA), %	9.8	7.9	11.6	8.7	11.5	8.5	8.4	8.0	8.1
Other 2)
Revenue	–	–	–	–	–	–	–	–	–
Operating income (EBITA)1)	–32	–22	–31	–23	–34	–26	–28	–28	–28
Group total
Revenue	2,928	2,897	2,832	2,706	2,852	2,788	2,898	2,822	2,881
Real growth, %	3	4	2	–1	2	0	3	9	8
Organic growth, %	3	4	2	–2	0	–2	–1	3	2
Operating income (EBITA)1)	295	311	276	218	310	272	225	212	266
Operating margin (EBITA), %	10.1	10.7	9.8	8.0	10.9	9.8	7.8	7.5	9.2

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

2) The category Other consists of the Parent Company's costs and certain other group-wide costs.

SEGMENT OVERVIEW BALANCE SHEET – BY QUARTER

		2013			2012				2011
SEK m	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31
Europe
Assets	4,399	4,229	4,177	3,974	4,107	4,077	4,302	4,328	3,988
Liabilities	1,588	1,517	1,491	1,372	1,553	1,496	1,583	1,653	1,598
USA
Assets	4,089	4,031	4,231	4,095	4,052	4,066	4,314	4,105	4,130
Liabilities	527	555	540	540	596	598	608	601	639
Other
Assets	779	759	619	990	827	838	802	921	951
Liabilities	2,988	3,033	3,159	3,268	3,242	3,515	3,886	3,653	3,434
Shareholder's equity	4,165	3,914	3,837	3,880	3,595	3,371	3,341	3,446	3,397
Group total
Assets	9,267	9,020	9,027	9,060	8,986	8,980	9,417	9,354	9,069
Liabilities	5,103	5,105	5,190	5,180	5,391	5,609	6,076	5,908	5,672
Shareholder's equity	4,165	3,914	3,837	3,880	3,595	3,371	3,341	3,446	3,397

QUARTERLY DATA

		2013 2012						2011
SEK m	Oct–Dec			Jul–Sep Apr–Jun Jan–Mar Oct–Dec			Jul–Sep Apr–Jun Jan–Mar Oct–Dec
Statement of Income
Revenue	2,928	2,897	2,832	2,706	2,852	2,788	2,898	2,822	2,881
Gross income	690	688	660	595	702	657	620	600	659
Operating income (EBITA)1)	295	311	276	218	310	272	225	212	266
Operating income (EBIT)	286	303	248	247	333	251	204	201	262
Key ratios
Operating margin (EBITA), %	10.1	10.7	9.8	8.0	10.9	9.8	7.8	7.5	9.2
Cash flow
Operations	496	407	302	96	450	538	128	123	504
Investment activities	–281	–184	–197	–47	–192	–230	–218	–363	–337
Financing activities	–275	–69	–490	192	–142	–244	–4	130	–68
Cash flow for the period	–60	154	–385	242	116	64	–94	–110	100
Key ratios
Cash flow from operations per share after dilution, SEK	6.60	5.40	4.02	1.28	5.95	7.12	1.70	1.63	6.67
Capital employed and financing
Operating capital employed	2,834	2,743	2,818	2,685	2,631	2,618	2,868	2,712	2,493
Goodwill	3,346	3,296	3,414	3,291	3,317	3,310	3,505	3,360	3,281
Acquisition-related intangible assets	126	131	142	144	153	159	172	163	155
Other operating capital	–16	–14	–62	–87	–31	2	33	–52	14
Capital employed	6,290	6,156	6,312	6,033	6,070	6,089	6,578	6,184	5,943
Key ratios
Operating capital employed as % of revenue	25	24	25	24	23	23	25	24	23
Capital employed as a % of revenue	55	55	56	54	53	53	57	55	54
Net debt	2,125	2,241	2,475	2,153	2,475	2,717	3,237	2,737	2,545
Shareholders' equity	4,165	3,914	3,837	3,880	3,595	3,371	3,341	3,446	3,397
Key ratios
Net debt/EBITDA	1.14	1.21	1.37	1.23	1.43	1.62	1.94	1.70	1.62

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

STATEMENT OF INCOME – BY QUARTER

		2013 2012					2011
SEK m	Oct–Dec Jul–Sep			Apr–Jun Jan–Mar Oct–Dec			Jul–Sep Apr–Jun Jan–Mar Oct–Dec
Revenue, continuing operations	2,923	2,897	2,832	2,668	2,798	2,734	2,787	2,665	2,723
Revenue, acquisitions	5	–	–	38	55	53	111	158	158
Total revenue	2,928	2,897	2,832	2,706	2,852	2,788	2,898	2,822	2,881
Production expenses	–2,238	–2,209	–2,172	–2,111	–2,150	–2,131	–2,278	–2,222	–2,223
Gross income	690	688	660	595	702	657	620	600	659
Selling and administration expenses	–395	–378	–384	–378	–393	–384	–395	–388	–393
Operating income (EBITA)1)	295	311	276	218	310	272	225	212	266
Amortization of acquisition-related intangible assets	–7	–7	–7	–7	–7	–8	–7	–6	–7
Acquisition-related costs and revenue2)	–2	–0	–7	36	30	–14	–30	–5	–6
Items affecting comparability	–	–	–143)	–	–	–	164)	–	95)
Operating income (EBIT)	286	303	248	247	333	251	204	201	262
Net financial items	–12	–9	–13	–13	–11	–18	–16	–11	–15
Income before taxes	274	294	236	234	321	234	188	190	247
Income tax	–77	–87	–69	–69	–99	–70	–56	–57	–67
Net income for the period6)	197	207	166	165	222	164	131	133	180
KEY RATIOS
Real growth, %	3	4	2	–1	2	0	3	9	8
Organic growth, %	3	4	2	–2	0	–2	–1	3	2
Gross margin, %	23.6	23.8	23.3	22.0	24.6	23.6	21.4	21.3	22.9
Selling and administration expenses as % of total revenue	–13.5	–13.0	–13.5	–14.0	–13.8	–13.8	–13.6	–13.7	–13.6
Operating margin (EBITA), %	10.1	10.7	9.8	8.0	10.9	9.8	7.8	7.5	9.2
Tax rate, %	28	29	29	29	31	30	30	30	27
Net margin, %	6.7	7.2	5.9	6.1	7.8	5.9	4.5	4.7	6.3
Earnings per share before dilution (SEK)	2.62	2.76	2.21	2.24	3.04	2.24	1.80	1.82	2.47

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

2) Acquisition-related costs and revenue for the period January - December 2013, refer to transaction costs of SEK –6 million (–9), restructuring costs of SEK –6 million (–42) and integration costs of SEK –1 million (0) as well as a repayment installment of the purchase price attributable to the cash handling operations of Pendum in the amount of SEK 41 million (33). Transaction costs for the period January – December 2013 amount to SEK 0 million for acquisitions in progress, to SEK –6 million for completed acquisitions and to SEK 0 million for discontinued acquisitions. 3) Items affecting comparability, SEK –14 million is to a large extent attributable to a write-down of book values in an operation within the European segment.

4) Items affecting comparability refers to a reversal of part of the provision of SEK 59 million which was made in 2007, attributable to overtime compensation in Spain. In total, SEK 25 million has been reversed.

5) Items affecting comparability refers to a reversal of part of the provision of SEK 59 million which was made in 2007, attributable to overtime compensation in Spain.

6) Net income for the period is entirely attributable to the owners of the Parent Company.

BALANCE SHEET – BY QUARTER

	2013				2012				2011
SEK m	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31
ASSETS
Fixed assets
Goodwill	3,346	3,296	3,414	3,291	3,317	3,310	3,505	3,360	3,281
Acquisition-related intangible assets	126	131	142	144	153	159	172	163	155
Other intangible assets	93	90	91	88	93	86	77	87	82
Tangible fixed assets	2,972	2,779	2,807	2,711	2,865	2,822	2,919	2,891	2,887
Non interest-bearing financial fixed assets1)	447	399	352	374	414	409	463	440	458
Interest-bearing financial fixed assets1)	61	71	86	67	66	65	63	143	65
Total fixed assets	7,045	6,766	6,892	6,674	6,907	6,850	7,198	7,084	6,927
Current assets
Non interest-bearing current assets	1,879	1,846	1,889	1,765	1,689	1,849	2,006	1,965	1,728
Interest-bearing financial current assets	10	19	3	1	10	17	3	7	1
Liquid funds	333	388	243	620	380	264	211	298	413
Total current assets	2,222	2,253	2,135	2,386	2,079	2,130	2,220	2,270	2,142
TOTAL ASSETS	9,267	9,020	9,027	9,060	8,986	8,980	9,417	9,354	9,069
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity2)	4,165	3,914	3,837	3,880	3,595	3,371	3,341	3,446	3,397
Long-term liabilities
Interest-bearing long-term liabilities1)	1,849	2,042	2,088	2,457	2,883	3,035	3,461	3,016	2,998
Non interest-bearing provisions1)	674	590	598	639	663	621	605	611	642
Total long-term liabilities	2,523	2,632	2,686	3,096	3,547	3,655	4,067	3,626	3,640
Current liabilities
Tax liabilities	80	88	89	86	74	214	176	192	169
Non interest-bearing current liabilities	1,819	1,708	1,696	1,615	1,722	1,710	1,782	1,920	1,837
Interest-bearing current liabilities	680	677	719	383	48	29	52	169	25
Total current liabilities	2,579	2,473	2,503	2,084	1,845	1,954	2,010	2,281	2,032
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	9,267	9,020	9,027	9,060	8,986	8,980	9,417	9,354	9,069
KEY RATIOS
Return of shareholders' equity, %	18	19	19	18	18	18	18	16	15
Return of capital employed, %	17	18	17	17	17	16	15	15	15
Shareholders' equity per share after dilution, SEK	55.32	52.00	50.97	51.54	47.57	44.62	44.21	45.61	44.96
Equity ratio, %	45	43	43	43	40	38	35	37	37

1) As of the beginning of the 2013 financial year the defined benefit pension obligation is included in net debt. To reflect this change the comparative figures have been adjusted.

2) Shareholders' equity is entirely attributable to the owners of the Parent Company.

CASH FLOW – BY QUARTER

		2013			2012				2011
SEK m	Oct–Dec		Jul–Sep Apr–Jun Jan–Mar Oct–Dec				Jul–Sep Apr–Jun Jan–Mar Oct–Dec
Additional information
Operating income (EBITA)1)	295	311	276	218	310	272	225	212	266
Depreciation	195	190	187	186	179	181	183	173	169
Change in accounts receivable	42	32	–63	–5	51	16	34	–47	54
Change in other operating working capital and other items	51	17	3	–256	–5	116	–174	–120	69
Cash flow from operating activities before investments	582	549	403	143	534	585	269	219	557
Investments in fixed assets, net	–262	–181	–192	–86	–222	–223	–142	–161	–323
Cash flow from operating activities	321	368	211	57	313	362	127	58	234
Financial items paid and received	–12	–11	–10	–15	–11	–26	–8	–18	–8
Income tax paid	–69	–131	–88	–31	–70	–9	–97	–76	–45
Free cash flow	239	227	112	11	232	328	22	–36	181
Cash flow effect of items affecting comparability	–4	–1	–1	–0	–0	–3	–7	–0	–0
Acquisition of operations2)	–19	–3	–5	–2	–3	–7	–76	–203	–13
Acquisition-related costs and revenue, paid and received3)	–	–0	–1	41	29	–9	–29	–1	–0
Dividend paid	–	–	–338	–	–	–	–273	–	–
Repayments of leasing liabilities	–16	–6	–9	–9	–0	–7	–5	–9	–3
Change in interest-bearing net debt excl. liquid funds	–259	–63	–142	201	–142	–237	274	139	–65
Cash flow for the period	–60	154	–385	242	116	64	–94	–110	100
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	109	119	76	26	101	133	56	27	88

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

2) Acquisition of operations includes the cash flow effect of acquisition-related costs.

3) Refers to acquisition-related restructuring and integration costs. During the first quarter of 2013 and the fourth quarter of 2012 repayment installments of the purchase price for Pendum's cash

handling operations were received in the amounts of SEK 41 million and SEK 33 million respectively.

KEY RATIOS

	2013	2012	2013	2012	2011
	Oct–Dec	Oct–Dec	Full year	Full year	Full year
Real growth, %	3	2	2	3	7
Organic growth, %	3	0	2	0	1
Total growth, %	3	–1	0	4	–1
Operating margin (EBITA), %	10.1	10.9	9.7	9.0	8.3
Earnings per share before dilution, SEK	2.62	3.04	9.83	8.90	7.03
Shareholders' equity per share after dilution, SEK	55.32	47.57	55.32	47.57	44.96
Cash flow from operating activities as % of operating income (EBITA), %	109	101	87	84	77
Cash flow from operations per share after dilution, SEK	6.60	5.95	17.29	16.40	15.92
Return of shareholders' equity, %	18	18	18	18	15
Equity ratio, %	45	40	45	40	37
Return on capital employed, %	17	17	17	17	15
Net debt, SEK m	2,125	2,475	2,125	2,475	2,545

Definitions

Operating income (EBITA)

Earnings Before Interest, Taxes, Amortization of acquisitionrelated intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.

Operating margin (EBITA), %

Earnings Before Interest, Taxes, Amortization of acquisitionrelated intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability, as a percentage of revenue.

Operating income (EBITDA)

Earnings Before Interest, Taxes, Depreciation, Amortization of acquisition-related intangible fixed assets, Acquisitionrelated costs and revenue and Items affecting comparability.

Operating income (EBIT)

Earnings Before Interest and Tax.

Real growth, %

Increase in revenue for the period, adjusted for changes in exchange rates, as a percentage of the previous year's revenue.

Organic growth, %

Increase in revenue for the period, adjusted for acquisition/ divestitures and changes in exchange rates, as a percentage of the previous year's revenue adjusted for divestitures.

Total growth, %

Increase in revenue for the period as a percentage of the previous year's revenue.

Net margin

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

Earnings per share before dilution

Net income for the period in relation to the average number of outstanding shares during the period. The average number of outstanding shares includes treasury shares which, according to agreements, will be allotted to employees in the future.

Calculation for:

Oct –Dec 2013: 197/75,279,829 x 1,000,000 = 2.62 Oct –Dec 2012: 222/73,011,780 x 1,000,000 = 3.04 Jan –Dec 2013: 736/74,838,476 x 1,000,000 = 9.83 Jan –Dec 2012: 650/73,011,780 x 1,000,000 = 8.90

Earnings per share after dilution

Calculation for:

Oct –Dec 2013: 197/75,279,829 x 1,000,000 = 2.62 Oct–Dec 2012: 222/75,566,780 x 1,000,000 = 2.93 Jan –Dec 2013: 736/75,279,829 x 1,000,000 = 9.78 Jan –Dec 2012: 650/75,566,780 x 1,000,000 = 8.60

Cash flow from operations per share

Cash flow for the period from operations in relation to the number of shares after dilution.

Shareholders' equity per share

Shareholders' equity in relation to the number of shares after dilution.

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 equity

Net income for the period as a percentage of the closing balance of shareholders' equity.

Return on capital employed, %

Operating income (EBITA) as a percentage of the closing balance of capital employed.

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.

Loomis in brief

Vision

Loomis' vision is to be the undisputed specialist at managing cash in society.

Business concept

Loomis' business concept is to create the most efficient flow of cash in society.

Strategies and Operational goals

Strategies

Cost effectiveness

• Price Price increase percentages to exceed wage increase percentages.
• Branch 85 percent of the branches to be profitable.
• Risk The cost of risk management to be below 4 percent of revenue.

Expansion

• Be number 1 or 2 in every market where Loomis operates.
• Controlled, acquisition-based expansion into new countries.
• Stronger market position in existing countries.

Product mix

• At least 30 percent of revenue to come from Cash Management Services.

Operational goals

• Good profitability and sustainable growth.

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 20,000 employees and annual revenue of SEK 11 billion. Loomis is a Mid-Cap listed company on the NASDAQ OMX Stockholm.

Information meeting

An information meeting will be held on February 4, 2014 09:30 a.m. (CEST). 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=214598 and follow the instructions, or by calling +46 (0)8 505 201 14 or +44 (0)207 1620 177 or +1 334 323 6203.

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 on February 18, 2014 on telephone number +46(0)8 505 203 33, +44 (0)20 7031 4064 and + 1 954 334 0342, access code 940888.

Future reporting and meetings

Interim report	January – March	May 6, 2014
Interim report	January – June	July 31, 2014
Interim report	January – September	November 6, 2014

Loomis' Annual General Meeting will be held on Tuesday, May 6, 2014 in Stockholm. Annual Report for 2013 will be available on www.loomis.com in April 2014.

For further information

Jarl Dahlfors, CEO +46 (0)70 607 20 51, e-mail: jarl.dahlfors@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 Tuesday, February 4, 2014 at 8.00 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