Loomis — Interim / Quarterly Report 2017

Jul 27, 2017

Interim report January – June 2017

• Revenue SEK 4,346 million (4,147). Real growth 2 percent (8) and organic growth 2 percent (6).
• Operating income (EBITA)1) SEK 517 million (444) and operating margin 11.9 percent (10.7).
• Income before taxes SEK 463 million (398) and income after taxes SEK 332 million (286).
• Earnings per share before and after dilution SEK 4.41 (3.81).
• Cash flow from operating activities SEK 437 million (513), equivalent to 85 percent (116) of operating income (EBITA).

April – June 2017 January – June 2017

• Revenue SEK 8,625 million (8,179). Real growth 2 percent (7) and organic growth 2 percent (6).
• Operating income (EBITA)1) SEK 979 million (819) and operating margin 11.3 percent (10.0).
• Income before taxes SEK 868 million (725) and income after taxes SEK 622 million (525).
• Earnings per share before and after dilution SEK 8.26 (6.98).
• Cash flow from operating activities SEK 752 million (609), equivalent to 77 percent (74) of operating income (EBITA).

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

Loomis' financial targets

Net debt/EBITDA

Revenue

Not exceeding 3.0

Annual dividend, %

40–60% of the Group's net income

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

The Loomis Model continues to create value for our stakeholders and provides us with a stable foundation for the future.

Loomis' positive development continued in the second quarter of 2017. Organic growth amounted to 2 percent (6), and the operating margin (EBITA) improved to 11.9 percent (10.7). The Loomis Model continues to create value for our stakeholders and provides us with a stable foundation for the future.

The organic growth in the USA continued during the second quarter and was 5 percent (13). We saw growth in both our cash in transit (CIT) and our cash management services (CMS) operations. In making a comparison with the previous year, I would like to point out that the organic growth was exceptionally high in 2016 as it was impacted by the implementation of the CMS contract with Bank of America. Our SafePoint concept continues to yield success, with an increase in revenue of more than 20 percent compared to the same period the previous year. During the quarter we installed a total of around 900 new SafePoint units, making the total installed in the first half of the year just over 1,600 units. We expect this installation rate to accelerate in the second half and we are still maintaining our target of installing at least 5,000 new units in the USA in 2017. During the quarter the operating margin in the USA increased to 13.0 percent (11.2). The improvement is mainly related to increased CMS volumes, the increased number of installed SafePoint units and the continuous efficiency improvement efforts at our branches, which are still yielding results.

Organic growth in the European segment amounted to 1 percent (1) and, similar to the previous quarter, we are seeing positive organic growth, particularly in Spain, Turkey and Argentina. As mentioned in the Q1 report, the Easter weekend was in April this year. This meant fewer business days, which had a negative impact on the second quarter compared to the same quarter in 2016. Fewer business days means fewer stops for CIT vehicles, which in turn means less cash to process at our cash centers. The negative organic growth we experienced in the UK in the last quarters has levelled out. Meanwhile, the ongoing replacement

of bank notes and coins in Sweden has had a positive effect on growth. The underlying volumes in the Nordic countries are, however, still declining slightly. Organic growth in France, which was negative during the quarter, was mainly affected by fewer business days, but also, to some extent by an increased competition in the market. The improved operating margin, which was 13.1 percent (12.9) is mainly explained by efficiency improvements and good cost control at our branches around Europe. I would also like to point out that the important ongoing measures in the UK continue to have a positive impact on both quality and profitability.

Segment International had organic growth for the quarter of –8 percent (6) and the segment's operating margin was 7.5 percent (5.5). Demand for cross-border transportation of bank notes and precious metals was low compared to the corresponding quarter the previous year. Our international operations are affected to a greater extent by macroeconomic factors than our other segments, which means that revenue and profitability can fluctuate more between individual quarters.

In summary I can say that the first half of 2017 has been strong and that we are well on our way to reaching the financial targets we set for the full year. On September 28 we will hold a capital markets day in London at which we will present an updated strategy and new financial targets. We look forward to having the opportunity to describe Loomis' next steps and to present our future opportunities. Loomis is in a strong position today and I look forward to leading the company on the journey towards further value creation for our shareholders and other stakeholders.

Patrik Andersson President and CEO

The Group and the segments in brief

	2017	2016	2017	2016	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Group total
Revenue	4,346	4,147	8,625	8,179	16,800	17,246
Real growth, %	2	8	2	7	5	3
Organic growth, %	2	6	2	6	5	3
Operating income (EBITA)1)	517	444	979	819	1,890	2,049
Operating margin, %	11.9	10.7	11.3	10.0	11.2	11.9
Earnings per share before dilution, SEK2)	4.41	3.81	8.26	6.98	16.73	18.01
Earnings per share after dilution, SEK	4.41	3.81	8.26	6.98	16.73	18.01
Cash flow from operating activities as % of operating income (EBITA)	85	116	77	74	107	105
Segment
Europe
Revenue	2,198	2,035	4,303	4,009	8,384	8,679
Real growth, %	7	2	6	3	3	5
Organic growth, %	1	1	1	1	0	0
Operating income (EBITA)1)	287	262	527	461	1,119	1,186
Operating margin, %	13.1	12.9	12.3	11.5	13.4	13.7
USA
Revenue	1,945	1,774	3,911	3,531	7,325	7,705
Real growth, %	5	14	5	15	12	7
Organic growth, %	5	13	5	13	11	7
Operating income (EBITA)1)	252	199	500	396	842	946
Operating margin, %	13.0	11.2	12.8	11.2	11.5	12.3
International
Revenue	221	348	445	666	1,149	929
Real growth, %	–38	6	–35	–2	–17	–34
Organic growth, %	–8	6	–3	–2	0	–1
Operating income (EBITA)1)	17	19	27	35	77	69
Operating margin, %	7.5	5.5	6.0	5.3	6.7	7.4

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability. 2) The number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, was for the period 75,226,032. The number of Class B treasury

was 53,797.

Operating margin (EBITA)

Operating margin(EBITA) rolling 12 months

Operating margin (EBITA)

Operating margin (EBITA) per quarter

Revenue and income

	2017	2016	2017	2016	2016	R 12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	4,346	4,147	8,625	8,179	16,800	17,246
Operating income (EBITA)1)	517	444	979	819	1,890	2,049
Operating income (EBIT)	489	424	921	779	1,852	1,995
Income before taxes	463	398	868	725	1,735	1,879
Net income for the period	332	286	622	525	1,258	1,355
KEY RATIOS
Real growth, %	2	8	2	7	5	3
Organic growth, %	2	6	2	6	5	3
Operating margin, %	11.9	10.7	11.3	10.0	11.2	11.9
Tax rate, %	28	28	28	28	27	28
Earnings per share after dilution, SEK	4.41	3.81	8.26	6.98	16.73	18.01

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

April – June 2017

Revenue for the quarter was SEK 4,346 million (4,147) and both organic and real growth amounted to 2 percent (6 and 8 respectively). The increase is mainly attributable to good growth in both CIT and CMS in the USA. Growth was also positively affected by increased sales in a number of European countries. This year the Easter weekend was in April and this had a negative effect on growth due to fewer business days in the quarter than in the corresponding period the previous year. Organic growth was negative in France, mainly due to fewer business days, but also, to some extent due to an increased competition in the market. Real growth was affected by the acquisitions implemented in Denmark and Belgium in 2016 and 2017 respectively and by the divestment in 2016 of the general cargo operations.

The operating income (EBITA) amounted to SEK 517 million (444) and the operating margin was 11.9 percent (10.7). At comparable exchange rates the income improvement was around SEK 58 million. The improved profitability is mainly explained by an increase in the number of installed SafePoint units, economies of scale resulting from increased CMS volumes and better efficiency within the CIT operations in the USA. Also, the continuous Groupwide efforts to improve efficiency are still yielding results in a number of European countries.

The operating income (EBIT) for the quarter amounted to SEK 489 million (424), which includes amortization of acquisitionrelated intangible assets of SEK –14 million (–16) and acquisitionrelated costs of SEK –14 million (–3). The acquisition-related costs are mainly restructuring and integration costs relating to the acquisition implemented in 2016 in Denmark.

Income before tax of SEK 463 million (398) includes a net financial expense of SEK –26 million (–26).

The tax expense for the quarter amounted to SEK –131 million (–112), which represents a tax rate of 28 percent (28).

Earnings per share after dilution amounted to SEK 4.41 (3.81).

January – June 2017

Revenue for the six-month period amounted to SEK 8,625 million compared to SEK 8,179 million for the corresponding period the previous year. Sustained good growth in the USA is the main explanation for the organic growth of 2 percent (6). Growth in CMS in the USA is to a large extent explained by a sustained increase in revenue from SafePoint. Organic growth for the Group as a whole was also positively affected by increased sales in a number of European countries. Real growth of 2 percent (7) was affected by acquisitions in Denmark and Belgium and by the divestment in 2016 of the general cargo operations.

The operating income (EBITA) amounted to SEK 979 million (819) and the operating margin improved to 11.3 percent (10.0). At comparable exchange rates the income improvement was around SEK 126 million. The improved profitability is mainly explained by an increase in the number of installed SafePoint units, economies of scale resulting from increased volumes in CMS and by better efficiency within the CIT operations in the USA. Profitability was also positively affected by the continuous Group-wide efforts to improve efficiency, which are still yielding results in a number of European countries.

The operating income (EBIT) for the period amounted to SEK 921 million (779), which includes amortization of acquisition-related intangible assets of SEK –29 million (–32) and acquisition-related costs of SEK –29 million (–9). The acquisition-related costs are mainly restructuring and integration costs relating to the acquisition implemented in 2016 in Denmark.

Income before tax of SEK 868 million (725) includes a net financial expense of SEK –53 million (–54).

The tax expense for the period amounted to SEK –247 million (–200), which represents a tax rate of 28 percent (28).

Earnings per share after dilution amounted to SEK 8.26 (6.98).

The segments

europe

	2017	2016	2017	2016	2016	R 12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	2,198	2,035	4,303	4,009	8,384	8,679
Real growth, %	7	2	6	3	3	5
Organic growth, %	1	1	1	1	0	0
Operating income (EBITA)1)	287	262	527	461	1,119	1,186
Operating margin, %	13.1	12.9	12.3	11.5	13.4	13.7

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 – Segment Europe April – June 2017

Revenue for Segment Europe for the quarter amounted to SEK 2,198 million (2,035) and organic growth was 1 percent (1). Spain, Argentina and Turkey were the main countries to demonstrate good organic growth, but the ongoing replacement of bank notes and coins in Sweden also had a positive impact on growth. The underlying volumes in the Nordic countries as a whole are, however, still declining slightly. The negative organic growth trend in the UK in the past few quarters has now levelled out. Growth for the segment was negatively affected by Easter 2017 falling in April, which meant fewer business days in the quarter compared to the same period the previous year. In France the organic growth was negative mainly due to the above-mentioned Easter effect, but also to some extent due to increased competition in the market. The real growth of 7 percent (2) includes revenue attributable to the Danish company BKS which was acquired in August 2016, as well as revenue relating to the Belgian company Cobelguard, acquired in January 2017.

The operating income (EBITA) amounted to SEK 287 million (262) and the operating margin was 13.1 percent (12.9). The improved profitability is explained by the continuous efforts to improve efficiency, which continued to yield results in a number of countries, including the UK. Profitability for the segment was, however, negatively affected by Easter 2017 falling in April, which meant there were fewer business days in the quarter compared to the same period the previous year.

January – June 2017

Revenue for Segment Europe amounted to SEK 4,303 million (4,009) and organic growth was 1 percent (1). Spain, Argentina and Turkey were the main countries demonstrating good organic growth during the first half of the year, while lower volumes in the Nordic countries to some extent offset the positive organic growth for the segment as a whole. At the beginning of 2017, growth in the UK was negatively impacted due to the fact that a few of the retail customers taken over in connection with the acquisition of Cardtronics' cash handling operations chose other suppliers. The effect of the lost contracts levelled out towards the end of the period. The real growth of 6 percent (3) includes revenue attributable to the Danish company BKS and the Belgian company Cobelguard which were acquired in August 2016 and January 2017 respectively.

The operating income (EBITA) amounted to SEK 527 million (461) and the operating margin improved to 12.3 percent (11.5). The improved profitability is explained by the continuous efforts to improve efficiency, which continue to yield results in several countries, including the UK. Profitability was also positively affected by the synergy effects realized within the Danish operations after the acquisition of BKS.

USA

	2017	2016	2017	2016	2016	R 12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	1,945	1,774	3,911	3,531	7,325	7,705
Real growth, %	5	14	5	15	12	7
Organic growth, %	5	13	5	13	11	7
Operating income (EBITA)1)	252	199	500	396	842	946
Operating margin, %	13.0	11.2	12.8	11.2	11.5	12.3

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 – Segment USA April – June 2017

Revenue in the USA for the quarter amounted to SEK 1,945 million (1,774) and both real growth and organic growth amounted to 5 percent (14 and 13 respectively). Growth in 2016 was greatly affected by revenue related to the CMS contract with Bank of America which was implemented incrementally in 2015. The growth for the quarter was explained by increased revenue in both CIT and CMS. Increased revenue from SafePoint is to a large extent explaining the CMS growth. SafePoint revenue for the quarter amounted to 12 percent of the segment's total revenue. Changes in fuel fees, which Loomis passes on to its customers, had a positive effect on organic growth for the quarter by 1 percentage point, but did not significantly affect the operating income.

The proportion of revenue from CMS during the quarter amounted to 33 percent (34) of the segment's total revenue.

The operating income (EBITA) amounted to SEK 252 million (199) and the operating margin was 13.0 percent (11.2). The main explanations for the improved operating margin are the increased number of installed SafePoint units, increased CMS volumes and the continuous efforts to improve efficiency, which are still yielding results. Profitability was also positively affected by good growth in CIT, which improved the efficiency in the CIT operations.

January – June 2017

Revenue for Segment USA for the first six months amounted to SEK 3,911 million (3,531) and both real and organic growth amounted to 5 percent (15 and 13 respectively). The growth is the result of increased revenue in both CIT and CMS. Growth in CMS is to a large extent explained by the continuing increase in revenue from SafePoint. Revenue from SafePoint for the period amounted to 12 percent of the segment's total revenue. Changes in fuel fees, which Loomis passes on to its customers, had a 1 percentage point positive effect on organic growth, but did not significantly affect the operating income.

The proportion of revenue from CMS amounted to 33 percent (34) of the segment's total revenue.

The operating income (EBITA) amounted to SEK 500 million (396) and the operating margin was 12.8 percent (11.2). The reasons for the improved profitability are the increased number of installed SafePoint units, economies of scale resulting from increased CMS volumes and the continuous efforts to improve efficiency, which continued to yield results. The profitability improvement is also explained by the good growth in CIT, which improved the efficiency in the CIT operations.

international

	2017	20162)	2017	20162)	20162)	R 122)
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Revenue	221	348	445	666	1,149	929
Real growth, %	–38	6	–35	–2	–17	–34
Organic growth, %	–8	6	–3	–2	0	–1
Operating income (EBITA)1)	17	19	27	35	77	69
Operating margin, %	7.5	5.5	6.0	5.3	6.7	7.4

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability. 2) The general cargo operations were divested as of July 1, 2016. The comparative figures have not been adjusted.

Revenue and operating income – Segment International April – June 2017

Revenue for Segment International amounted to SEK 221 million compared to SEK 348 million for the second quarter the previous year and real growth was –38 percent (–6). The lower revenue and the negative real growth is mainly explained by the fact that the comparative figures included revenue of SEK 124 million relating to the general cargo operations, which were divested on July 1, 2016. Due to macroeconomic factors, demand for cross-border transportation of bank notes and precious metals was relatively low compared to the corresponding quarter the previous year, and organic growth therefore amounted to –8 percent (6).

The operating income (EBITA) amounted to SEK 17 million (19) and the operating margin was 7.5 percent (5.5). The comparative figures for 2016 include the general cargo operations which were divested on July 1, 2016. The remaining operations have higher profitability than the divested operations.

January – June 2017

Revenue for Segment International amounted to SEK 445 million compared to SEK 666 million for the corresponding period the previous year and real growth was –35 percent (–2). The lower revenue and the negative real growth is mainly explained by the fact that the comparative figures included revenue of SEK 239 million relating to the general cargo operations which were divested on July 1, 2016. Organic growth amounted to –3 percent (–2) and is mainly explained by lower demand for cross-border transportation of bank notes and precious metals than in the corresponding period the previous year. Demand is greatly influenced by macroeconomic factors.

The operating income (EBITA) amounted to SEK 27 million (35) and the operating margin for the period was 6.0 percent (5.3). The improved margin is to some extent explained by the fact that the divested operations had lower profitability than the remaining operations. The lower demand compared to the previous year, primarily in the high-value transportation of bank notes and precious metals, has, however, had a negative impact on profitability.

Cash flow

STATEMENT OF CASH FLOWS

	2017	2016	2017	2016	2016	R 12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year
Operating income (EBITA)1)	517	444	979	819	1,890	2,049
Depreciation	285	269	578	540	1,105	1,142
Change in accounts receivable	–85	–43	–50	–57	–53	–47
Change in other working capital and other items	–1	164	–227	–155	192	121
Cash flow from operating activities before investments	715	834	1,279	1,147	3,134	3,266
Investments in fixed assets, net	–278	–321	–527	–538	–1,120	–1,110
Cash flow from operating activities	437	513	752	609	2,013	2,156
Financial items paid and received	–24	–24	–43	–45	–117	–115
Income tax paid	–218	–118	–283	–170	–326	–439
Free cash flow	196	372	426	394	1,570	1,602
Cash flow effect of items affecting comparability	0	0	0	0	138	138
Acquisition of operations2)	–	–2	–34	–3	–201	–232
Acquisition-related costs / revenue, paid / received3)	–16	–3	–46	–10	–17	–53
Dividend paid	–602	–527	–602	–527	–527	–602
Change in interest-bearing net debt excl. liquid funds	–201	33	–182	76	–168	–426
Change in commercial papers issued and other long-term borrowing	324	158	286	108	–816	–638
Cash flow for the period	–299	31	–151	38	–20	–209
Liquid funds at beginning of period	806	653	663	654	654	700
Exchange rate differences in liquid funds	–15	17	–20	8	28	1
Liquid funds at end of period	492	700	492	700	663	492
KEY RATIOS
Cash flow from operating activities as a % of operating income (EBITA)	85	116	77	74	107	105
Investments in relation to depreciation	1.0	1.2	0.9	1.0	1.0	1.0
Investments as a % of total revenue	6.4	7.7	6.1	6.6	6.7	6.4

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 up until December 2016, the cash flow effect of acquisition-related transaction costs.

3) Refers to acquisition-related restructuring and integration costs. As from 2017 this item includes acquisition-related transaction costs. For 2016, this item includes an escrow repayment for the acquisition of Cardtronics' cash handling operations in the UK in 2015.

Cash flow

April – June 2017

Cash flow from operating activities of SEK 437 million (513) amounted to 85 percent (116) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK 278 million (321), which can be compared to depreciation of fixed assets of SEK 285 million (269). Investments of SEK 117 million (188) were made during the period in vehicles, safety equipment and SafePoint. An additional SEK 105 million (80) was invested in buildings, machinery and similar equipment.

Income tax paid in the quarter was SEK 218 million compared to SEK 118 million for the corresponding quarter the previous year. The increase is mainly due to tax payments made in the US during the quarter.

Dividends were paid to shareholders in the amount of SEK 8 per share for a total of SEK 602 million during the quarter.

January – June 2017

Cash flow from operating activities was SEK 752 million (609), equivalent to 77 percent (74) of operating income (EBITA).

Similar to previous years, the effect on cash flow of the changes in other working capital and other items was negative in the first half of the year because large payments for items such as employee related expenses and insurance premiums are made during this period. Positive effects of changes in working capital on cash flow normally occur during the latter part of the year.

Net investments in fixed assets for the period amounted to SEK 527 million (538), which can be compared to depreciation of fixed assets of SEK 578 million (540). Investments of SEK 249 million (289) were made during the period in vehicles, safety equipment and SafePoint. An additional SEK 179 million (146) was invested in buildings, machinery and similar equipment.

SEK 602 million was paid out in dividends to the shareholders during the period.

Capital employed and financing

Capital employed and financing

	2017	2016	2016
SEK m	Jun 30	Jun 30	Dec 31
Operating capital employed	4,748	4,526	4,615
Goodwill	5,469	5,459	5,626
Acquisition-related intangible assets	249	318	261
Other capital employed	112	146	74
Capital employed	10,578	10,450	10,576
Net debt	4,217	4,817	3,929
Shareholders' equity	6,361	5,633	6,647
Key ratios
Return on capital employed, %	19	17	18
Return on shareholders' equity, %	21	20	19
Equity ratio, %	44	39	45
Net debt/EBITDA	1.32	1.68	1.31

Capital employed

Capital employed amounted to SEK 10,578 million (10,576 as of December 31, 2016). Return on capital employed amounted to 19 percent (18 as of December 31, 2016).

Equity and financing

Shareholders' equity amounted to SEK 6,361 million (6,647 as of December 31, 2016). The return on shareholders' equity was 21 percent (19 on December 31, 2016) and the equity ratio was 44 percent (45 as of December 31, 2016). Shareholders' equity was positively affected by net income for the period of SEK 622 million. Equity was however reduced by dividend to shareholders of SEK 602 million and by a strong SEK development, which decreased the value of the Group's net assets in foreign currencies.

Net debt amounted to SEK 4,217 million (3,929 as of December 31, 2016). The net debt/EBITDA ratio amounted to SEK 1.32 on June 30, 2017 (1.31 as of December 31, 2016).

Acquisitions

	Consolidated		Acquired share1)	Annual revenue	Number of	Purchase price	Goodwill	Acquisition related intangible assets	Other acquired net assets
	as of	Segment	%	SEK m	employees	SEK m	SEK m	SEK m	SEK m
Opening balance January 1, 2017							5,626	261
Acquisition of Cobelguard CIT NV4)	January 30	Europe	100	1142)	170	343)	725)	21	–58
Total acquisitions January–June 2017							72	21	–58
Amortization of acquisition-related intangible assets							–	–29
Translation differences							–229	–4
Closing balance June 30, 2017							5,469	249

1) Refers to shares of votes. For asset deals no share of votes is stated.

2) Annual revenue in 2016 translated to SEK million at the acquisition date.

3) Purchase price in a cash/debt free basis (Enterprise value) amounted to around SEK 114 million at the acquisition date.

4) The acquisition analysis is preliminary and subject to final adjustment no later than one year from the acquisition date.

5) Goodwill arising in connection with the acquisition is primarily attributable to geographic expansion. Any impairment is not tax deductible.

Acquisitions in January – June 2017

In January 2017 Loomis acquired all of the shares in the Belgian company Cobelguard CIT NV. Cobelguard conducts domestic cash handling services and is based in Ghent, Belgium. The enterprise value amounted to around EUR 12 million, equivalent to around SEK 114 million. In addition to the purchase price paid of SEK 34 million, the sellers have the right to deferred considerations maximized at EUR 5 million depending on future financial development. The maximum deferred consideration has been calculated at present value and the entire amount has been provided for. Cobelguard has around 170 employees and annual revenue in 2016 was around EUR 12 million. The acquired operations are reported in Segment Europe and were consolidated into Loomis' accounts as of the date the transaction was completed, January 30, 2017. The purchase price, excluding the deferred consideration, was paid on closing. As a result of restructuring and integration costs, the acquisition is expected to have a marginally negative impact on Loomis' earnings per share for 2017.

Significant events and number of full-time employees

Significant events during the period

The Annual General Meeting on May 4, 2017 voted in favor of the Board's proposal to introduce an Incentive Scheme (Incentive Scheme 2017). Similar to Incentive Scheme 2016, the incentive scheme involves two thirds of the variable remuneration being paid out in cash the year after it is earned. The remaining one third will be allotted to participants in the form of Class B shares in Loomis AB at the beginning of 2019. The allotment of shares is contingent upon the employee still being employed by the Loomis Group on the last day of February 2019, other than in cases where the employee has left his/her position due to retirement, death or a long-term illness, in which case the individual will retain the right to receive bonus shares. The principles for performance measurement and other general principles that already apply to existing Incentive Schemes will still apply. Loomis AB will not issue any new shares or similar instruments in connection with this Incentive Scheme. To enable Loomis to allot these shares, the AGM voted in favor of Loomis AB entering into a share swap agreement with a third party under which the third party will acquire the shares in its own name and transfer them to the participants. The Incentive Scheme will enable around 350 key individuals within the Loomis Group to become shareholders in Loomis AB over time. This will increase employee commitment to Loomis' development for the benefit of all shareholders.

Number of full-time employees

The average number of full-time employees for the rolling twelve-month period was 22,400 (22,000 for the full year 2016).

Risks and uncertainties

Risks

Loomis' operations, which include cash in transit, cash management services and international valuables logistics, involve Loomis' assuming the customer's risks associated with managing, transporting and storing cash, precious metals and valuables. Loomis has established routines and processes to identify, take action to mitigate and monitor risks. Risks are assessed based on two criteria: the likelihood that an event will occur and the severity of the consequences for the business if the event should occur. There are risks both in terms of circumstances pertaining to Loomis itself or the industry as a whole and risks that are more general in nature. Certain risks are outside of Loomis' control.

Below is a description of some of the most significant risks and uncertainties which may have a negative impact on Loomis' operations, financial position and results, and which should therefore be taken into account when making assessments based on full-year or interim financial information. The risks described below are not in any particular order of significance.

Operational risks: Operational risks are risks associated with the day-to-day operations and the services offered by the Company to its customers. Some of the most significant risks Loomis has identified are:

• IT-related risk, such as operational disruptions and extended stoppages of operational systems, as well as risk associated with the installation of new systems.
• Risk of changed behavioral patterns relating to purchases and payments.
• Customer-related risk, such as the risk of loss of certain customers as well as significant changes in the banking sector.
• Competition risk, such as Loomis' ability to develop competitive offerings.
• Employee risk, such as a high staff turnover.
• Risk of robbery.
• Risk of internal theft and/or failing reconciliation routines at cash centers.
• Risk associated with the implementation of acquisitions, such as difficulties integrating new operations and employees, as well as the anticipated benefits of a certain acquisition not being realized or only partially realized.

Financial risks: In its operations, Loomis is exposed to risk associated with financial instruments such as liquid funds, accounts receivable, accounts payable and loans. The risks relating to these instruments are mainly:

• Interest rate risk associated with liquid funds and loans.
• Exchange rate risk associated with transactions and translation of shareholder's equity.
• Financing risk relating to the Company's capital requirements.
• Liquidity risk associated with short-term solvency.
• Credit risk pertaining to financial and commercial activities.
• Capital risk pertaining to the capital structure.
• Price risk.

The financial risks are described in more detail in Note 6 in the 2016 Annual Report.

Legal risks: Through its operations, Loomis is exposed to legal risks such as:

• Risk of disputes and legal action.
• Risk associated with the application of existing laws or other regulations and changes in legislation.

Factors of uncertainty

The economic trend in the first half of 2017 may have impacted certain geographic areas negatively, and it cannot be ruled out that this may have a negative impact on Loomis' revenue and income for the remainder of 2017. Changes in general economic conditions have various effects on the cash handling services market. These include the ratio of cash purchases to credit card purchases, changes in consumption levels, the risk of robbery and bad debt losses, as well as the staff turnover rate.

The preparation of financial reports requires the Board of Directors and Group Management to make estimates and assessments. Estimates and assessments affect both the income statement and the balance sheet as well as the information disclosed on things like contingent liabilities. Actual outcomes may deviate from these estimates and assessments depending on other circumstances and other conditions.

In the upcoming six-month period the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2016 Annual report and where applicable under the heading "Other significant events" on page 15, may deviate from the financial assessments and provisions made by management. This may impact the Group's profitability and financial position.

Seasonal variations

Loomis' earnings fluctuate across the seasons and this should be taken into consideration when making assessments based on interim financial information. The primary reason for these seasonal variations is that the need for cash handling services increases during the summer vacation period and in connection with public holidays and holiday periods.

Parent Company

Summary statement of income

	2017	2016	2016
SEK m	Jan–Jun	Jan–Jun	Full year
Revenue	254	216	443
Operating income (EBIT)	161	138	279
Income after financial items	567	256	443
Net income for the period	504	243	513

summary balance sheet

	2017	2016	2016
SEK m	Jun 30	Jun 30	Dec 31
Fixed assets	9,461	9,555	9,564
Current assets	1,000	904	814
Total assets	10,461	10,459	10,378
Shareholders' equity1)	4,782	4,618	4,889
Liabilities	5,679	5,841	5,490
Total shareholders' equity and liabilities	10,461	10,459	10,378

1) The number of Class B treasury shares was 53,797.

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 during the first half of the year was 17 (21).

The Parent Company's revenue mainly consists of license fees and other revenue from subsidiaries. The improved result is mainly due to higher dividends from subsidiaries and exchange gains on loans in foreign currencies, relating to investments in subsidiaries.

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

Other significant events

For critical estimates and assessments as well as contingent liabilities, please refer to pages 67–68 and 93 of the 2016 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 interim 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 IFRS Interpretations Committee (formerly IFRIC).

This interim report has been prepared according to IAS 34 Interim Financial Reporting. The interim report is on pages 1–32, and pages 1–16 are thus an integrated part of this financial report.

The most important accounting principles according to IFRS, which are the accounting standards used in the preparation of this interim report, are described in Note 2 on pages 60–66 of the 2016 Annual Report.

The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The most important accounting principles applying to the Parent Company can be found in Note 36 on page 98 of the 2016 Annual Report.

Outlook for 2017

The Company is not providing any forecast information for 2017.

The undersigned confirm that this interim report provides a true and fair overview of the Parent Company's and the Group's operations, financial position and results, and describes any significant risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, July 27, 2017

Alf Göransson Chairman

Ingrid Bonde Board member Cecilia Daun Wennborg Board member

Gun Nilsson Board member

Jan Svensson Board member

Patrik Andersson President and CEO, board member

Jörgen Andersson Board member, employee representative

Sofie Nordén Board member, employee representative

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

Statement OF INCOME

	2017	2016	2017	2016	2016	2015	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Revenue, continuing operations	4,222	4,088	8,385	8,054	16,485	15,391	16,816
Revenue, acquisitions	124	59	240	125	315	706	430
Total revenue	4,346	4,147	8,625	8,179	16,800	16,097	17,246
Production expenses	–3,176	–3,121	–6,349	–6,209	–12,493	–12,163	–12,633
Gross income	1,169	1,026	2,276	1,970	4,307	3,934	4,612
Selling and administration expenses	–652	–582	–1,297	–1,151	–2,417	–2,231	–2,563
Operating income (EBITA)1)	517	444	979	819	1,890	1,703	2,049
Amortization of acquisition-related intangible assets	–14	–16	–29	–32	–62	–62	–59
Acquisition-related costs and revenue	–14	–3	–292)	–92)	–56	–79	–76
Items affecting comparability	–	–	–	–	813)	124)	81
Operating income (EBIT)	489	424	921	779	1,852	1,575	1,995
Net financial items	–26	–26	–53	–54	–117	–114	–116
Income before taxes	463	398	868	725	1,735	1,461	1,879
Income tax	–131	–112	–247	–200	–477	–392	–524
Net income for the period5)	332	286	622	525	1,258	1,069	1,355
Key ratios
Real growth, %	2	8	2	7	5	7	3
Organic growth, %	2	6	2	6	5	2	3
Operating margin (EBITA), %	11.9	10.7	11.3	10.0	11.2	10.6	11.9
Tax rate, %	28	28	28	28	27	27	28
Earnings per share before dilution, SEK6)	4.41	3.81	8.26	6.98	16.73	14.21	18.01
Earnings per share after dilution, SEK	4.41	3.81	8.26	6.98	16.73	14.21	18.01

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–June 2017, refer to transaction costs of SEK –4 million (–4), restructuring costs of SEK –13 million (–1) and integration costs of SEK –12 million (–4). Transaction costs for the period January–June 2017 amount to SEK –2 million for acquisitions in progress, to SEK –2 million for completed acquisitions and to SEK 0 million for discontinued acquisitions.

3) Items affecting comparability of SEK 81 million relates to a reported capital gain from the divestment of the general cargo operations.

4) Items affecting comparability of SEK 12 million relates to a reversal of part of the provision of SEK 59 million which was made in 2007 attributable to overtime compensation in Spain. 5) Net income for the period is entirely attributable to the owners of the Parent Company.

6) For further information please refer to page 23.

Statement of comprehensive income

	2017	2016	2017	2016	2016	2015	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Net income for the period	332	286	622	525	1,258	1,069	1,355
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	30	–98	2	–185	–183	46	5
Items that may be reclassified to the statement of income
Exchange rate differences	–315	266	–404	2	402	507	–4
Hedging of net investments, net of tax	87	–91	114	–18	–159	–198	–27
Other comprehensive income and expenses for the period, net after tax	–198	76	–288	–201	61	355	–26
Total comprehensive income for the period1)	134	363	333	323	1,319	1,424	1,329

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

Balance Sheet

	2017	2016	2016	2015
SEK m	Jun 30	Jun 30	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	5,469	5,459	5,626	5,437
Acquisition-related intangible assets	249	318	261	349
Other intangible assets	109	118	114	118
Tangible fixed assets	4,575	4,294	4,709	4,305
Non-interest-bearing financial fixed assets	446	559	454	572
Interest-bearing financial fixed assets1)	81	88	80	78
Total fixed assets	10,929	10,836	11,245	10,860
Current assets
Non-interest-bearing current assets2)	3,077	2,987	2,907	2,816
Interest-bearing financial current assets1)	96	32	54	84
Liquid funds	492	700	663	654
Total current assets	3,665	3,719	3,624	3,555
TOTAL ASSETS	14,594	14,555	14,869	14,415
SHAREHOL DERS' EQUITY AND LIA BILITIE S
Shareholders' equity3)	6,361	5,633	6,647	5,843
Long-term liabilities
Interest-bearing long-term liabilities	4,280	5,499	3,972	5,168
Non-interest-bearing provisions	710	752	729	806
Total long-term liabilities	4,990	6,251	4,701	5,974
Current liabilities
Tax liabilities	135	136	122	141
Non-interest-bearing current liabilities	2,502	2,397	2,645	2,384
Interest-bearing current liabilities	606	138	754	73
Total current liabilities	3,243	2,672	3,521	2,598
TOTAL SHAREHOL DERS' EQUITY AND LIA BILITIE S	14,594	14,555	14,869	14,415
Key ratios
Return of shareholders' equity, %	21	20	19	18
Return of capital employed, %	19	17	18	17
Equity ratio, %	44	39	45	41
Net debt	4,217	4,817	3,929	4,425
Net debt/EBITDA	1.32	1.68	1.31	1.60

1) As of the balance sheet date and in the comparative information, all derivatives are measured at fair value based on market data in accordance with IFRS.

2) Funds in the cash processing operations are reported net in the item "Non-interest-bearing current assets". For more information, please refer to page 85 and Note 23 in the Annual report 2016.

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

Change in shareholders' equity

	2017	2016	2016	2015	R12
SEK m	Jan–Jun	Jan–Jun	Full year	Full year
Opening balance	6,647	5,843	5,843	4,907	5,633
Actuarial gains and losses after tax	2	–185	–183	46	5
Exchange rate differences	–404	2	402	507	–4
Hedging of net investments, net of tax	114	–18	–159	–198	–27
Total other comprehensive income	–288	–201	61	355	–26
Net income for the period	622	525	1,258	1,069	1,355
Total comprehensive income	333	323	1,319	1,424	1,329
Dividend paid to Parent Company's shareholders	–602	–527	–527	–451	–602
Share-related remuneration	–18	–7	11	0	1
Revaluation of option liability with non-controlling interests1)	–	–	–	–37	–
Closing balance	6,361	5,633	6,647	5,843	6,361
1) Refers to Loomis Turkey.

NUMBER OF SHARES AS OF June 30, 2017

	Votes	No. of shares		No. of votes Quota value	SEK m
Class A shares	10	3,428,520	34,285,200	5	17
Class B shares	1	71,851,309	71,851,309	5	359
Total no. of shares		75,279,829	106,136,509		376
Total Class B treasury shares	1	–53,797	–53,797
Total no. of outstanding shares		75,226,032	106,082,712

CONTINGENT LIABILITiES

	2017	2016	2016	2015
SEK m	Jun 30	Jun 30	Dec 31	Dec 31
Securities and guarantees	3,224	2,896	3,262	2,617
Other contingent liabilities	11	14	14	13
Total contingent liabilities	3,234	2,910	3,276	2,630

CONTINGENT LIABILITIES, PARENT COMPANY

	2017	2016	2016	2015
SEK m	Jun 30	Jun 30	Dec 31	Dec 31
Guaranteed committed bank facilities	1,244	1,565	1,802	1,196
Other contingent liabilities	1,824	1,163	1,298	1,173
Total contingent liabilities	3,068	2,728	3,100	2,369

Statement of cash flows

	2017	2016	2017	2016	2016	2015	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Income before taxes	463	398	868	725	1,735	1,461	1,879
Items not affecting cash flow, items affecting com parability and acquisition-related costs1)	299	288	599	579	1,117	1,119	1,136
Income tax paid	–218	–118	–283	–170	–326	–341	–439
Change in accounts receivable	–85	–43	–50	–57	–53	–170	–47
Change in other operating capital employed and other items	–1	164	–227	–155	192	48	121
Cash flow from operations	458	690	907	921	2,665	2,118	2,651
Cash flow from investment activities	–278	–324	–561	–541	–1,175	–1,658	–1,195
Cash flow from financing activities	–479	–335	–497	–343	–1,510	–386	–1,665
Cash flow for the period	–299	31	–151	38	–20	74	–209
Liquid funds at beginning of the period	806	653	663	654	654	566	700
Translation differences in liquid funds	–15	17	–20	8	28	14	1
Liquid funds at end of period	492	700	492	700	663	654	492

1) Adjusted for the divestment of operations which is reported in investment activities.

Statement of cash flows, Additional information

	2017	2016	2017	2016	2016	2015	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Operating income (EBITA)	517	444	979	819	1,890	1,703	2,049
Depreciation	285	269	578	540	1,105	1,061	1,142
Change in accounts receivable	–85	–43	–50	–57	–53	–170	–47
Change in other operating capital employed and other items	–1	164	–227	–155	192	48	121
Cash flow from operating activities before investments	715	834	1,279	1,147	3,134	2,642	3,266
Investments in fixed assets, net	–278	–321	–527	–538	–1,120	–1,379	–1,110
Cash flow from operating activities	437	513	752	609	2,013	1,264	2,156
Financial items paid and received	–24	–24	–43	–45	–117	–118	–115
Income tax paid	–218	–118	–283	–170	–326	–341	–439
Free cash flow	196	372	426	394	1,570	805	1,602
Cash flow effect of items affecting comparability	0	0	0	0	138	–14	138
Acquisition of operations1)	–	–2	–34	–3	–201	–279	–232
Acquisition-related costs and revenue, paid and re ceived2)	–16	–3	–46	–10	–17	–52	–53
Dividend paid	–602	–527	–602	–527	–527	–451	–602
Change in interest-bearing net debt excluding liquid funds	–201	33	–182	76	–168	–258	–426
Issuance of bonds3)	–	–	–	–	–	549	–
Change in commercial papers issued and other long-term borrowing	324	158	286	108	–816	–225	–638
Cash flow for the period	–299	31	–151	38	–20	74	–209
Key ratios
Cash flow from operating activities as % of operat ing income (EBITA)	85	116	77	74	107	74	105
Investments in relation to depreciation	1.0	1.2	0.9	1.0	1.0	1.3	1.0
Investments as a % of total revenue	6.4	7.7	6.1	6.6	6.7	8.6	6.4

1) Acquisition of operations includes up until December 2016, the cash flow effect of acquisition-related transaction costs.

2) Refers to acquisition-related restructuring and integration costs. As from 2017 this item includes acquisition-related transaction costs. For 2016, this item includes an escrow repayment for the acquisition of Cardtronics' cash handling operations in the UK in 2015.

3) Bond issue according to Loomis' MTN program.

Segment overview statement of income

	Europe	USA	International	Other1)	Eliminations	Total
SEK m	Jan–Jun 2017	Jan–Jun 2017	Jan–Jun 2017	Jan–Jun 2017	Jan–Jun 2017	Jan–Jun 2017
Revenue, continuing operations	4,064	3,911	445	–	–35	8,385
Revenue, acquisitions	240	–	–	–	–	240
Total revenue	4,303	3,911	445	–	–35	8,625
Production expenses	–3,166	–2,867	–366	–	51	–6,349
Gross income	1,137	1,044	79	–	16	2,276
Selling and administrative expenses	–610	–544	–52	–75	–16	–1,297
Operating income (EBITA)	527	500	27	–75	–	979
Amortization of acquisition-related intangible assets	–14	–7	–8	–	–	–29
Acquisition-related costs	–25	–1	–	–3	–	–29
Operating income (EBIT)	488	492	19	–78	–	921

1) Segment Other consists of the Parent Company's costs and certain other group-wide costs.

Segment overview statement of income

	Europe	USA	International	Other1)	Eliminations	Total
SEK m	Jan–Jun 2016	Jan–Jun 2016	Jan–Jun 2016	Jan–Jun 2016	Jan–Jun 2016	Jan–Jun 2016
Revenue, continuing operations	3,934	3,481	666	–	–26	8,054
Revenue, acquisitions	75	50	–	–	–	125
Total revenue	4,009	3,531	666	–	–26	8,179
Production expenses	–3,018	–2,665	–572	–	46	–6,209
Gross income	990	866	94	–	20	1,970
Selling and administrative expenses	–530	–470	–59	–72	–20	–1,151
Operating income (EBITA)	461	396	35	–72	–	819
Amortization of acquisition-related intangible assets	–15	–7	–10	–	–	–32
Acquisition-related costs	–4	–1	–	–3	–	–9
Operating income (EBIT)	442	387	25	–75	–	779

1) Segment Other consists of the Parent Company's costs and certain other group-wide costs.

Segment overview STATEMENT OF INCOME, ADDITIONAL INFORMATION

	2017	2016	2017	2016	2016	2015	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Europe
Revenue	2,198	2,035	4,303	4,009	8,384	8,332	8,679
Real growth, %	7	2	6	3	3	4	5
Organic growth, %	1	1	1	1	0	1	0
Operating income (EBITA)	287	262	527	461	1,119	1,055	1,186
Operating margin (EBITA), %	13.1	12.9	12.3	11.5	13.4	12.7	13,7
USA
Revenue	1,945	1,774	3,911	3,531	7,325	6,428	7,705
Real growth, %	5	14	5	15	12	7	7
Organic growth, %	5	13	5	13	11	6	7
Operating income (EBITA)	252	199	500	396	842	692	946
Operating margin (EBITA), %	13.0	11.2	12.8	11.2	11.5	10.8	12.3
International1)
Revenue	221	348	445	666	1,149	1,419	929
Real growth, %	–38	6	–35	–2	–17	n/a	–34
Organic growth, %	–8	6	–3	–2	0	n/a	–1
Operating income (EBITA)	17	19	27	35	77	87	69
Operating margin (EBITA), %	7.5	5.5	6.0	5.3	6.7	6.1	7.4
Other 2)
Revenue	–	–	–	–	–	–	–
Operating income (EBITA)	–39	–36	–75	–72	–149	–131	–152
Eliminations
Revenue	–18	–10	–35	–26	–58	–82	–67
Operating income (EBITA)	–	–	–	–	–	–	–
Group total
Revenue	4,346	4,147	8,625	8,179	16,800	16,097	17,246
Real growth, %	2	8	2	7	5	7	3
Organic growth, %	2	6	2	6	5	2	3
Operating income (EBITA)	517	444	979	819	1,890	1,703	2,049
Operating margin (EBITA), %	11.9	10.7	11.3	10.0	11.2	10.6	11.9

1) As of July 1, 2016, the general cargo operations were divested. The comparative figures have not been adjusted.

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

ORGANIc and real growth

	2017	2016	2017	2016	2016	2015	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Previous year's revenue	4,147	3,944	8,179	7,786	16,097	13,510	16,490
Organic growth1)	80	237	196	443	731	306	484
Acquired revenue	124	59	240	125	315	706	430
Divestments	–124	–	–239	–	–257	–	–496
Real growth	80	296	197	568	789	1,012	418
Change in foreign currency	119	–93	249	–175	–86	1,575	338
Revenue for the period	4,346	4,147	8,625	8,179	16,800	16,097	17,246

1) For definition of organic growth, see page 30.

Key ratios

	2017	2016	2017	2016	2016	2015	R12
	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Real growth, %	2	8	2	7	5	7	3
Organic growth, %	2	6	2	6	5	2	3
Total growth,%	5	5	5	5	4	19	5
Gross margin,%	26.9	24.7	26.4	24.1	25.6	24.4	26.7
Selling and administration expenses in % of total revenue	–15.0	–14.0	–15.0	–14.1	–14.4	–13.9	–14.9
Operating margin (EBITA), %	11.9	10.7	11.3	10.0	11.2	10.6	11.9
Tax rate, %	28	28	28	28	27	27	28
Net margin, %	7.6	6.9	7.2	6.4	7.5	6.6	7.9
Return of shareholders' equity, %	21	20	21	20	19	18	21
Return of capital employed, %	19	17	19	17	18	17	19
Equity ratio, %	44	39	44	39	45	41	44
Net debt (SEK m)	4,217	4,817	4,217	4,817	3,929	4,425	4,217
Net debt/EBITDA	1.32	1.68	1.32	1.68	1.31	1.60	1.32
Cash flow from operating activities as % of operating income (EBITA)	85	116	77	74	107	74	105
Investments in relation to depreciation	1.0	1.2	0.9	1.0	1.0	1.3	1.0
Investments as a % of total revenue	6.4	7.7	6.1	6.6	6.7	8.6	6.4
Earnings per share before dilution, SEK1)	4.41	3.81	8.26	6.98	16.73	14.21	18.01
Earnings per share after dilution, SEK	4.41	3.81	8.26	6.98	16.73	14.21	18.01
Shareholders' equity per share after dilution, SEK	84.56	74.88	84.56	74.88	88.36	77.67	84.56
Cash flow from operating activities per share after dilution, SEK	6.09	9.17	12.06	12.25	35.43	28.15	35.24
Dividend per share, SEK	8.00	7.00	8.00	7.00	7.00	6.00	8.00
Number of outstanding shares (millions)	75.2	75.2	75.2	75.2	75.2	75.2	75.2
Average number of outstanding shares (millions)1)	75.2	75.2	75.2	75.2	75.2	75.2	75.2

1) The number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 75,226,032. The number of treasury shares amount to 53,797.

Statement of income – by quarter

		2017			2016		2015
SEK m	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun
Revenue, continuing operations	4,222	4,163	4,305	4,126	4,088	3,966	4,082	4,118	3,794
Revenue, acquisitions	124	116	115	75	59	66	62	49	150
Total revenue	4,346	4,279	4,421	4,200	4,147	4,032	4,144	4,167	3,944
Production expenses	–3,176	–3,172	–3,210	–3,075	–3,121	–3,087	–3,077	–3,134	–3,001
Gross income	1,169	1,106	1,211	1,126	1,026	944	1,067	1,033	943
Selling and administration expenses	–652	–645	–668	–598	–582	–569	–588	–550	–547
Operating income (EBITA)	517	462	543	528	444	376	479	483	397
Amortization of acquisition-related intangible assets	–14	–15	–15	–15	–16	–16	–16	–17	–14
Acquisition-related costs and revenue1)	–14	–15	–15	–32	–3	–5	–18	–9	–30
Items affecting comparability	–	–	–	812)	–	–	–	123)	–
Operating income (EBIT)	489	432	512	561	424	355	445	469	352
Net financial items	–26	–27	–35	–28	–26	–28	–30	–24	–32
Income before taxes	463	405	477	533	398	327	415	445	320
Income tax	–131	–115	–135	–141	–112	–88	–116	–116	–84
Net income for the period	332	290	342	391	286	239	299	329	236
Key ratios
Real growth, %	2	3	4	2	8	7	5	4	6
Organic growth, %	2	3	4	3	6	5	3	3	1
Operating margin (EBITA), %	11.9	10.8	12.3	12.6	10.7	9.3	11.6	11.6	10.1
Tax rate, %	28	28	28	27	28	27	28	26	26
Earnings per share after dilution (SEK)	4.41	3.85	4.55	5.20	3.81	3.17	3.97	4.37	3.14

1) Acquisition-related costs and revenue for the period January–June 2017, refer to transaction costs of SEK –4 million (–4), restructuring costs of SEK –13 million (–1) and integration costs of SEK –12 million (–4). Transaction costs for the period January–June 2017 amount to SEK –2 million for acquisitions in progress, to SEK –2 million for completed acquisitions and to SEK 0 million for discontinued acquisitions.

2) Items affecting comparability of SEK 81 million relates to a reported capital gain from the divestment of the general cargo operations.

3) Items affecting comparability of SEK 12 million relates to a reversal of part of the provision of SEK 59 million which was made in 2007 attributable to overtime compensation in Spain.

Balance Sheet – by quarter

	2017			2016				2015
SEK m	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
ASSETS
Fixed assets
Goodwill	5,469	5,647	5,626	5,474	5,459	5,286	5,437	5,439	5,232
Acquisition-related intangible assets	249	267	261	282	318	326	349	356	375
Other intangible assets	109	109	114	115	118	113	118	115	117
Tangible fixed assets	4,575	4,693	4,709	4,582	4,294	4,138	4,305	4,148	3,995
Non interest-bearing financial fixed assets	446	467	454	653	559	519	572	594	596
Interest-bearing financial fixed assets	81	81	80	96	88	77	78	69	69
Total fixed assets	10,929	11,263	11,245	11,202	10,836	10,458	10,860	10,720	10,385
Current assets
Non interest-bearing current assets	3,077	3,049	2,907	2,954	2,987	2,906	2,816	2,962	2,886
Interest-bearing financial current assets	96	22	54	26	32	98	84	66	78
Liquid funds	492	806	663	507	700	653	654	621	808
Total current assets	3,665	3,877	3,624	3,487	3,719	3,657	3,555	3,648	3,772
TOTAL ASSETS	14,594	15,140	14,869	14,690	14,555	14,115	14,415	14,368	14,157
SHAREHOL DERS' EQUITY AND LIA BILITIE S
Shareholders' equity	6,361	6,820	6,647	5,926	5,633	5,791	5,843	5,495	5,154
Long-term liabilities
Interest-bearing long-term liabilities	4,280	4,042	3,972	5,141	5,499	5,120	5,168	5,519	5,057
Non interest-bearing provisions	710	738	729	768	752	737	806	783	806
Total long-term liabilities	4,990	4,781	4,701	5,910	6,251	5,857	5,974	6,302	5,863
Current liabilities
Tax liabilities	135	178	122	117	136	145	141	99	135
Non interest-bearing current liabilities	2,502	2,564	2,645	2,464	2,397	2,220	2,384	2,395	2,295
Interest-bearing current liabilities	606	796	754	273	138	103	73	78	709
Total current liabilities	3,243	3,539	3,521	2,854	2,672	2,467	2,598	2,572	3,140
TOTAL SHAREHOL DERS' EQUITY AND LIA BILITIE S	14,594	15,140	14,869	14,690	14,555	14,115	14,415	14,368	14,157
Key ratios
Return of shareholders' equity, %	21	19	19	21	20	19	18	19	19
Return of capital employed, %	19	18	18	17	17	17	17	16	15
Equity ratio, %	44	45	45	40	39	41	41	38	36
Net debt	4,217	3,930	3,929	4,784	4,817	4,395	4,425	4,842	4,811
Net debt/EBITDA	1.32	1.27	1.31	1.65	1.68	1.57	1.60	1.83	1.91

Cash flow – By quarter

		2017			2016			2015
SEK m		Apr–Jun Jan– Mar Oct–Dec			Jul–Sep Apr–Jun Jan– Mar Oct–Dec				Jul–Sep Apr–Jun
Additional information
Operating income (EBITA)	517	462	543	528	444	376	479	483	397
Depreciation	285	293	286	278	269	271	264	273	266
Change in accounts receivable	–85	35	78	–74	–43	–14	53	–101	–141
Change in other operating capital employed and other items	–1	–226	261	87	164	–320	53	70	69
Cash flow from operating activities before investments	715	564	1,168	818	834	313	850	725	589
Investments in fixed assets, net	–278	–249	–301	–282	–321	–217	–465	–346	–383
Cash flow from operating activities	437	315	867	536	513	96	384	379	206
Financial items paid and received	–24	–20	–49	–23	–24	–22	–39	–22	–26
Income tax paid	–218	–65	–57	–99	–118	–53	–80	–112	–77
Free cash flow	196	230	762	414	372	22	265	245	102
Cash flow effect of items affecting comparability	0	0	1	138	0	0	–2	–2	–9
Acquisition of operations1)	–	–34	–23	–175	–2	–1	–15	–239	–4
Acquisition-related costs / revenue, paid /received2)	–16	–30	–11	4	–3	–7	–20	–12	–14
Dividend paid	–602	–	–	–	–527	–	–	–	–451
Change in interest-bearing net debt excl. liquid funds	–201	19	–189	–55	33	43	14	–27	–7
Issuance of bonds3)	–	–	–	–	–	–	549	–	–
Change in commercial papers issued and other long-term borrowing	324	–38	–394	–530	158	–50	–745	–149	519
Cash flow for the period	–299	147	146	–204	31	7	46	–185	136
Key ratios
Cash flow from operating activities as % of operating income (EBITA)	85	68	160	102	116	26	80	78	52
Investments in relation to depreciation	1.0	0.9	1.0	1.0	1.2	0.8	1.8	1.3	1.4
Investments as a % of total revenue	6.4	5.8	6.8	6.7	7.7	5.4	11.2	8.3	9.7

1) Acquisition of operations includes up until December 2016, the cash flow effect of acquisition-related transaction costs.

2) Refers to acquisition-related restructuring and integration costs. As from 2017 this item includes acquisition-related transaction costs. For the period July–September 2016, this item includes an escrow repayment for the acquisition of Cardtronics' cash handling operations in the UK in 2015.

3) Bond issue according to Loomis' MTN program.

Segment overview STATEMENT OF INCOME – By quarter

		2017			2016		2015
SEK m	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun
Europe
Revenue	2,198	2,105	2,214	2,162	2,035	1,974	2,113	2,179	2,058
Real growth, %	7	6	4	2	2	3	4	3	3
Organic growth, %	1	1	0	0	1	1	1	1	1
Operating income (EBITA)	287	240	324	335	262	199	295	312	251
Operating margin (EBITA), %	13.1	11.4	14.6	15.5	12.9	10.1	14.0	14.3	12.2
USA
Revenue	1,945	1,966	1,968	1,826	1,774	1,757	1,708	1,637	1,566
Real growth, %	5	6	9	10	14	16	11	7	5
Organic growth, %	5	6	8	9	13	14	10	7	5
Operating income (EBITA)	252	248	239	208	199	197	200	175	160
Operating margin (EBITA), %	13.0	12.6	12.1	11.4	11.2	11.2	11.7	10.7	10.2
International2)
Revenue	221	224	252	231	348	318	342	372	340
Real growth, %	–38	–32	–30	–38	6	–9	–12	1	n/a
Organic growth, %	–8	2	6	–2	6	–9	–12	1	n/a
Operating income (EBITA)	17	10	20	22	19	16	23	26	16
Operating margin (EBITA), %	7.5	4.6	8.1	9.3	5.5	5.1	6.8	6.9	4.7
Other 3)
Revenue	–	–	–	–	–	–	–	–	–
Operating income (EBITA)	–39	–37	–40	–36	–36	–36	–40	–30	–30
Eliminations
Revenue	–18	–17	–13	–19	–10	–17	–19	–21	–21
Operating income (EBITA)	–	–	–	–	–	–	–	–	–
Group total
Revenue	4,346	4,279	4,421	4,200	4,147	4,032	4,144	4,167	3,944
Real growth, %	2	3	4	2	8	7	5	4	6
Organic growth, %	2	3	4	3	6	5	3	3	1
Operating income (EBITA)	517	462	543	528	444	376	479	483	397
Operating margin (EBITA), %	11.9	10.8	12.3	12.6	10.7	9.3	11.6	11.6	10.1

1) As of July 1, 2016, the general cargo operations were divested. The comparative figures have not been adjusted.

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

SEGMENT OVERVIEW BALANCE SHEET – By quarter

	2017		2016				2015
SEK m	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
Europe
Assets	6,019	5,898	5,701	5,780	5,330	5,266	5,441	5,551	5,132
Liabilities	2,266	2,337	2,365	2,540	2,159	2,012	2,055	2,207	2,135
USA
Assets	6,375	6,652	6,719	6,482	6,371	5,996	6,117	5,938	5,730
Liabilities	607	568	733	574	622	459	626	553	542
International1)
Assets	1,247	1,278	1,241	1,242	1,460	1,427	1,424	1,478	1,642
Liabilities	237	253	216	236	398	353	311	388	388
Other 2)
Assets	953	1,312	1,208	1,186	1,394	1,426	1,433	1,401	1,653
Liabilities	5,123	5,162	4,908	5,414	5,743	5,500	5,580	5,725	5,938
Shareholder's equity	6,361	6,820	6,647	5,926	5,633	5,791	5,843	5,495	5,154
Group total
Assets	14,594	15,140	14,869	14,690	14,555	14,115	14,415	14,368	14,157
Liabilities	8,233	8,320	8,222	8,764	8,922	8,324	8,572	8,873	9,003
Shareholder's equity	6,361	6,820	6,647	5,926	5,633	5,791	5,843	5,495	5,154

1) As of July 1, 2016, the general cargo operations were divested. The comparative figures have not been adjusted.

2) Segment Other consists mainly of Group assets and liabilities that cannot be divided by segment.

Quarterly data

	2017		2016			2015
SEK m	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun
Cash flow
Operations	458	449	1,051	692	690	232	708	577	463
Investment activities	–278	–283	–323	–311	–324	–217	–480	–585	–387
Financing activities	–479	–18	–582	–585	–335	–7	–182	–176	61
Cash flow for the period	–299	147	146	–204	31	7	46	–185	136
Capital employed and financing
Operating capital employed	4,748	4,799	4,615	4,806	4,526	4,477	4,352	4,317	4,145
Goodwill	5,469	5,647	5,626	5,474	5,459	5,286	5,437	5,439	5,232
Acquisition-related intangible assets	249	267	261	282	318	326	349	356	375
Other capital employed	112	37	74	148	146	96	130	225	213
Capital employed	10,578	10,750	10,576	10,710	10,450	10,186	10,268	10,336	9,965
Net debt	4,217	3,930	3,929	4,784	4,817	4,395	4,425	4,842	4,811
Shareholders' equity	6,361	6,820	6,647	5,926	5,633	5,791	5,843	5,495	5,154
Key ratios
Return of shareholders' equity, %	21	19	19	21	20	19	18	19	19
Return of capital employed, %	19	18	18	17	17	17	17	16	15
Equity ratio, %	44	45	45	40	39	41	41	38	36
Net debt/EBITDA	1.32	1.27	1.31	1.65	1.68	1.57	1.60	1.83	1.91

Key ratios – By quarter

	2017		2016			2015
	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan– Mar	Oct–Dec	Jul–Sep	Apr–Jun
Real growth, %	2	3	4	2	8	7	5	4	6
Organic growth, %	2	3	4	3	6	5	3	3	1
Total growth, %	5	6	7	1	5	5	12	16	19
Gross margin,%	26.9	25.9	27.4	26.8	24.7	23.4	25.7	24.8	23.9
Selling and administration expenses in % of total revenue	–15.0	–15.1	–15.1	–14.2	–14.0	–14.1	–14.2	–13.2	–13.9
Operating margin (EBITA), %	11.9	10.8	12.3	12.6	10.7	9.3	11.6	11.6	10.1
Tax rate, %	28	28	28	27	28	27	28	26	26
Net margin, %	7.6	6.8	7.7	9.3	6.9	5.9	7.2	7.9	6.0
Return of shareholders' equity, %	21	19	19	21	20	19	18	19	19
Return of capital employed, %	19	18	18	17	17	17	17	16	15
Equity ratio, %	44	45	45	40	39	41	41	38	36
Net debt (SEK m)	4,217	3,930	3,929	4,784	4,817	4,395	4,425	4,842	4,811
Net debt/EBITDA	1.32	1.27	1.31	1.65	1.68	1.57	1.60	1.83	1.91
Cash flow from operating activities as % of operating income (EBITA)	85	68	160	102	116	26	80	78	52
Investments in relation to depreciation	1.0	0.9	1.0	1.0	1.2	0.8	1.8	1.3	1.4
Investments as a % of total revenue	6.4	5.8	6.8	6.7	7.7	5.4	11.2	8.3	9.7
Earnings per share before dilution, SEK1)	4.41	3.85	4.55	5.20	3.81	3.17	3.97	4.37	3.14
Earnings per share after dilution, SEK	4.41	3.85	4.55	5.20	3.81	3.17	3.97	4.37	3.14
Shareholders' equity per share after dilution, SEK	84.56	90.66	88.36	78.77	74.88	76.98	77.67	73.04	68.51
Cash flow from operations per share after dilu tion, SEK	6.09	5.97	13.97	9.20	9.17	3.08	9.42	7.66	6.15
Dividend per share, SEK	8.00	–	–	–	7.00	–	–	–	6.00
Number of outstanding shares (millions)	75.2	75.2	75.2	75.2	75.2	75.2	75.2	75.2	75.2
Average number of outstanding shares (millions)1)	75.2	75.2	75.2	75.2	75.2	75.2	75.2	75.2	75.2

1) The number of outstanding shares, which constitutes the basis for calculation of earnings per share before dilution, is 75,226,032. The number of treasury shares amount to 53,797.

Definitions

Use of key ratios not defined in IFRS

The Loomis Group's accounts are prepared in accordance with IFRS. See page 15 for more information on accounting principles. Only a few key ratios are defined in IFRS. As of the second quarter 2016, Loomis is applying the Alternative Performance Measures issued by ESMA (European Securities and Markets Authority). Briefly, an alternative key ratio is a financial measurement of historical or future earnings development, financial position or cash flow, not defined or specified in IFRS. To assist Group Management and other stakeholders in their analysis of the

Gross margin, %

Gross income as a percentage of total revenue.

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, Acquisition-related 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.

Calculation for:

Apr –Jun 2017: 332/75,226,032 x 1,000,000 = 4.41 Apr–Jun 2016: 286/75,226,032 x 1,000,000 = 3.81 Jan–Jun 2017: 622/75,226,032 x 1,000,000 = 8.26 Jan–Jun 2016: 525/75,226,032 x 1,000,000 = 6.98

Earnings per share after dilution

Calculation for:

Apr –Jun 2017: 332/75,226,032 x 1,000,000 = 4.41 Apr–Jun 2016: 286/75,226,032 x 1,000,000 = 3.81 Jan –Jun 2017: 622/75,226,032 x 1,000,000 = 8.26 Jan –Jun 2016: 525/75,226,032 x 1,000,000 = 6.98

Group's performance, Loomis is reporting certain key ratios not defined by IFRS. Group Management believes that this information will facilitate an analysis of the Group's performance. This data supplements the IFRS information and does not replace the key ratios defined in IFRS. Loomis' definitions of measurements not defined in IFRS may differ from definitions used by other companies. All of Loomis' definitions are included below. Key ratio calculations that cannot be checked against items in the statement of income and balance sheet can be found on page 23.

Cash flow from operations per share

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

Investments in relation to depreciation

Investments in fixed assets, net, for the period, in relation to depreciation.

Investments as a % of total revenue

Investments in fixed assets, net, for the period, as a percentage of total revenue.

Shareholders' equity per share

Shareholders' equity in relation to the number of shares 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 (rolling 12 months) as a percentage of the closing balance of shareholders' equity.

Return on capital employed, %

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

Equity ratio, %

Shareholders' equity as a percentage of total assets.

Net debt

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

R12

Rolling 12 months period (July 2016 up to and including June 2017).

n/a

Not applicable.

Other

Amounts in tables and other combined amounts have been rounded off on an individual basis. Minor differences due to this rounding-off, may, therefore, appear in the totals.

Loomis in brief

Vision

Managing cash in society.

Financial targets

• Revenue: SEK 17 billion by 2017.
• Operating margin (EBITA): 10–12 percent.
• Net debt/EBITDA: Max 3.0.
• Dividend: 40–60 percent of net income.

Operations

Loomis offers secure and effective comprehensive solutions for the distribution, handling, storage and recycling of cash and other valuables. Loomis' customers are banks, retailers and other companies. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employs around 24,000 people and had revenue in 2016 of SEK 16.8 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.

Information meeting

An information meeting will be held on July 27, 2017 at 09:30 a.m. (CEST). This meeting will be held at Sveavägen 20, 9th floor, Stockholm.

To listen to the meeting proceedings by telephone (and to participate in the question and answer session), please call: UK: 08444933800 USA: 1 631 510 7498 Sweden: +46 8 503 364 34

Provide conference ID number: Loomis, 42822116.

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 August 10, 2017 at 12:30 p.m. (CEST) on number: UK: 08443386600 USA: 1 631 510 7499

Sweden: +46 8 506 357 42

Conference ID number: Loomis, 42822116.

Future reporting

Interim report January – September November 8, 2017 Full-year report January – December January 30, 2018

For further information

Patrik Andersson, President and CEO +46 76 111 34 00, e-mail: patrik.andersson@loomis.com Anders Haker, CFO +46 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

This information is information that Loomis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 a.m. (CEST) on July 27, 2017.

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