Loomis — Interim / Quarterly Report 2018

Nov 2, 2018

Interim Report January–September 2018

July – September 2018

• Revenue SEK 4,918 million (4,246). Real growth 8 percent (5) and organic growth 2 percent (3).
• Operating income (EBITA)1) SEK 626 million (570) and operating margin 12.7 percent (13.4)
• Income before taxes SEK 565 million (518) and income after taxes SEK 422 million (371).
• Earnings per share before and after dilution SEK 5.61 (4.93).
• Cash flow from operating activities SEK 430 million (522), equivalent to 69 percent (91) of operating income (EBITA).

January – September 2018

• Revenue SEK 14,212 million (12,870). Real growth 8 percent (3) and organic growth 3 percent (3).
• Operating income (EBITA)1) SEK 1,608 million (1,549) and operating margin 11.3 percent (12.0)
• Income before taxes SEK 1,542 million (1,387) and income after taxes SEK 1,151 million (993).
• Earnings per share before and after dilution SEK 15.30 (13.19).
• Cash flow from operating activities SEK 1,156 million (1,274), equivalent to 72 percent (82) 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.

KEY RATIOS

	2018	2017		2018	2017
	Jul–Sep	Jul–Sep	Change (%)	Jan–Sep	Jan–Sep	Change (%)
Revenue	4,918	4,246	16	14,212	12,870	10
Of which:
Organic growth	100	122	2	353	318	3
Acquisitions and divestments	239	92	6	657	93	5
Exchange rate effects	333	-168	8	332	80	3
Total growth	672	46	16	1,342	491	10
Operating income (EBIT)	626	570	10	1,608	1,549	4
Operating margin (EBITA), %	12.7	13.4		11.3	12.0
Operating income (EBITA)	592	549	8	1,618	1,470	10
Earnings before tax	565	518	9	1,542	1,387	11
Net income	422	371	14	1,151	993	16
Earnings per share, SEK	5.61	4.93	14	15.30	13.19	16
Tax rate, %	25	28		25	28
Cash flow from operating activities	430	522	-18	1,156	1,274	-9
Cash flow from operating activities as % of operating income (EBITA)	69	91		72	82

Comments by the President and CEO

Real growth for the third quarter 2018 remained strong, amounting to 8 percent (5), while our organic growth was 2 percent (3). Organic growth in the USA is continuing and many European countries are also making a positive contribution. We have advanced our positions in several important markets in Europe and made great progress with respect to new customer contracts in countries like Belgium and Norway. Our SafePoint concept is growing in significance and is a high priority in both the USA and Europe.

The Group's operating margin (EBITA %) in the third quarter amounted to 12.7 percent (13.4). The restructuring programs in France and Sweden have progressed well, but they had a negative effect on the operating margin for the quarter. I am however pleased to see that the operating margin in France improved in the third quarter compared to the second quarter this year. After the completion of the programs in France and Sweden, we expect the necessary conditions to be in place for both of these countries to increase their operating margins again. We should be

able to see positive effects of the programs already in the fourth quarter this year. The integration of our recent acquisitions in Latin America is progressing according to plan and is making a positive contribution to the operating income.

Part of the lower operating margin in Europe – around 0.6 percentage points – is due to the acquisition in Germany in the first quarter this year, which is currently having lower profitability than the European average. We expect the operating margin of the acquired German operations to improve in 2019.

In the USA the outsourcing trend among banks is continuing and resulting in increased volumes. In addition, revenue from our SafePoint concept grew by almost 20 percent during the quarter. We believe that our strong customer focus and our high ambitions for quality continue to be key contributing factors in sustaining our strong growth. The operating margin in the USA was on a par with the corresponding quarter in 2017. The main focus of our US operations is to continue to increase our market share, and multiple activities are ongoing to retain our good growth in the US.

I am happy to report that organic growth is continuing in Segment International, amounting to 5 percent (-7) during the quarter. The operating margin was on a par with the corresponding period the previous year. Our ambition is to be able to increase volumes and improve the segment's operating margin over time.

Patrik Andersson President and CEO

Loomis' financial targets

Revenue

SEK 24 billion 2021

Annual dividend, %

40–60% of the Group's net income

Operating margin (EBITA), % 12–14%

Revenue and earnings

July – September 2018

Revenue for the quarter amounted to SEK 4,918 million (4,246). The real growth was 8 percent (5) and the organic growth was 2 percent (3). The acquisitions made in Finland, Chile and Germany in 2017 and 2018 had a positive impact on real growth. Similar to previous periods this year, organic growth is mainly attributable to continued good growth in the USA. Sales also increased in several countries in the European segment, where Spain, Turkey, Argentina, Belgium and Austria showed good growth. The organic growth was adversely affected during the quarter by the development in Sweden and France.

The operating income (EBITA) amounted to SEK 626 million (570) and the operating margin was 12.7 percent (13.4). At comparable exchange rates the income improvement was approximately SEK 15 million. The lower volumes in France and Sweden combined with the ongoing restructuring programs in these countries are the main explanations for the lower profitability. Furthermore, the operating margin was negatively impacted by the acquisition in Germany in 2018.

The operating income (EBIT) for the quarter amounted to SEK 592 million (549). Amortization of acquisition-related intangible assets for the quarter amounted to SEK –22 million (–12) and acquisition-related costs amounted to SEK –12 million (–10). The increase in amortization of acquisition-related intangible assets is related to the acquisitions made in Finland, Germany and Chile over the past twelve months.

Income before tax of SEK 565 million (518) includes a net financial expense of SEK –24 million (–30) and a monetary loss on net assets/liabilities of SEK –4 million (0).

The tax expense for the quarter amounted to SEK –142 million (–147), which represents a tax rate of 25 percent (28). The US tax reform passed in December 2017 had a positive effect on the tax rate for the period.

Earnings per share after dilution amounted to SEK 5.61 (4.93).

January – September 2018

Revenue for the nine-month period amounted to SEK 14,212 million compared to SEK 12,870 million for the corresponding period the previous year. The acquisitions made in Finland, Chile and Germany have affected real growth positively, and similar to recent quarters, sustained good growth in the USA, Turkey and Argentina have been strong contributing factors in the organic growth.

The operating income (EBITA) amounted to SEK 1,608 (1,549) million and the operating margin improved to 11.3 percent (12.0). At comparable exchange rates the income improvement was around SEK 26 million. Since the second quarter of 2017, restructuring programs have been under way in France and Sweden to handle new market situations. The costs for these programs are the main explanations for the decline in profitability.

The operating income for the period (EBIT) amounted to SEK 1,618 million (1,470), which includes amortization of acquisitionrelated intangible assets of SEK –61 million (–40), acquisitionrelated costs of SEK –27 million (–39) and an item positively affecting comparability of SEK 98 million (0). The item affecting comparability consists primarily of a positive non-recurring item of SEK 178 million relating to revaluation of the UK pension obligations, as well as impairment of goodwill in two operations within the European segment.

Income before taxes of SEK 1,542 million (1,387) includes a net financial expense of SEK –72 million (–83) and a monetary loss of net assets/liabilities of SEK –4 million (0).

The tax expense for the period amounted to SEK –391 million (–394), which represents a tax rate of 25 percent (28). The US tax reform passed in December 2017 had a positive effect on the tax rate for the period.

Earnings per share after dilution amounted to SEK 15.30 (13.19).

Segment Europe – Revenue and operating income

EUROPE

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue	2,523	2,199	7,321	6,503	8,728	9,546
Real growth, %	10	4	9	6	5	7
Organic growth, %	–1	0	–1	1	0	–1
Operating income (EBITA)1)	362	350	849	878	1,175	1,147
Operating margin, %	14.3	15.9	11.6	13.5	13.5	12.0
Number of full-time employees	14,000	12,700	13,700	12,600	12,500	13,800

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

Segment Europe

July – September 2018

Revenue for the quarter amounted to SEK 2,523 million (2,199) and organic growth was –1 percent (0). Spain, Argentina, Turkey, Belgium and Austria all showed good organic growth. The replacement of bank notes and coins in Sweden was ongoing in the third quarter of 2017 and this had a negative impact on organic growth for the quarter. It is expected that volumes will continue to fall slightly in the Nordic countries as a whole. Organic growth in France started to develop in a negative direction in the second quarter of 2017 due to the increased competitive market situation. Volumes in France started to level out during the quarter and have now stabilized. The real growth of 10 percent (4) includes revenue generated by the operations acquired over the past 12 months in Finland, Chile and Germany.

The operating income (EBITA) amounted to SEK 362 million (350) and the operating margin was 14.3 percent (15.9). The lower margin is explained by lower volumes, mainly in France and Sweden, as well as the acquisition in Germany in 2018. A restructuring program is ongoing in France to compensate for lower volumes, and the full effect is expected to be reached at the end of 2018. Similar programs are under way in the Nordic countries to adapt operations to the current market situations.

January – September 2018

Revenue for Segment Europe for the period amounted to SEK 7,321 million (6,503) and organic growth was –1 percent (1). Spain, Argentina, Turkey, Belgium, Austria and Portugal were primarily the countries demonstrating good organic growth in the first nine months of the year, while lower volumes in France and in the Nordic countries offset the positive organic growth for the segment as a whole. The real growth of 9 percent (6) includes revenue relating to the acquisitions in Finland, Chile and Germany.

The operating income (EBITA) amounted to SEK 849 million (878) and the operating margin fell to 11.6 percent (13.5). The decline in profitability is explained by the extensive restructuring program ongoing in France since the summer of 2017 but also due to measures taken in a number of the Nordic countries in order to handle a new market situation. Furthermore, the operating margin was negatively affected by the acquired German operation, which is currently generating a lower profitability than the European average.

Segment USA – Revenue and operating income

USA

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue	2,162	1,852	6,228	5,763	7,688	8,153
Real growth, %	6	8	7	6	6	7
Organic growth, %	6	8	7	6	6	7
Operating income (EBITA)1)	285	242	834	742	1,009	1,101
Operating margin, %	13.2	13.1	13.4	12.9	13.1	13.5
Number of full-time employees	10,100	10,100	10,100	10,000	9,900	10,100

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

Segment USA

July – September 2018

Revenue in the USA amounted to SEK 2,162 million (1,852) and both real growth and organic growth amounted to 6 percent (8). Growth increased during the quarter, both in CIT and in CMS. Increased revenue from ATM replenishment was the main driver of CIT development, while an increase in the number of installed SafePoint units explains a large portion of the CMS growth. A sustained outsourcing trend among banks also contributed to the growth. Revenue for the quarter from SafePoint amounted to 13 percent (12) of the segment's total revenue. Changes in fuel fees, which Loomis passes on to its customers, had a marginally positive effect on organic growth for the quarter, but did not significantly affect the operating income. The share of revenue from CMS during the quarter amounted to 34 percent (33) of the segment's total revenue.

The operating income (EBITA) amounted to SEK 285 million (242) and the operating margin was 13.2 percent (13.1). As in previous quarters, the main explanations for the slightly improved operating margin are the increased number of installed SafePoint units, economies of scale achieved due to increased CMS volumes and the constant efforts to improve efficiency which continue to yield results. The ambition is to continue to expand in the USA, and adaptions of the operations are ongoing to handle increased volumes. In the short term these activities may, however, have a slightly negative effect on the operating margin.

January – September 2018

Revenue for Segment USA for the period amounted to SEK 6,228 million (5,763) and both real and organic growth amounted to 7 percent (6). The growth is the result of increased revenue in both CIT and CMS. Growth in CMS is largely explained by the sustained increase in SafePoint revenue, which accounted for 13 percent (12) of the segment's total revenue. Changes in fuel fees, which Loomis passes on to its customers, had a marginal positive effect on organic growth, but did not significantly affect the operating income. The share of revenue from CMS for the period amounted to 34 percent (33) of the segment's total revenue.

The operating income (EBITA) amounted to SEK 834 million (742) and the operating margin was 13.4 percent (12.9). The improved profitability is explained by the increased number of installed SafePoint units, economies of scale from increased CMS volumes and the constant efforts to improve efficiency, which continue to yield results.

Segment International – Revenue and operating income

INTERNATIONAL

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue	247	210	707	655	878	930
Real growth, %	7	–7	5	–29	–24	2
Organic growth, %	5	–7	2	–5	–6	–1
Operating income (EBITA)1)	18	15	51	42	61	70
Operating margin, %	7.2	7.1	7.3	6.4	6.9	7.6
Number of full-time employees	370	390	380	390	380	370

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

Segment International

July – September 2018

Revenue for Segment International amounted to SEK 247 million, compared to SEK 210 million for the third quarter the previous year, and real growth was 7 percent (–7). During the quarter, demand for cross-border transportation of bank notes and precious metals improved mainly in the South American market while in other markets it remained low. Globally, we believe that we have seen the end of the negative market trend of the past few years. The organic growth amounted to 5 percent (–7).

The operating income (EBITA) amounted to SEK 18 million (15) and the operating margin for the period was 7.2 percent (7.1). The margins in precious metals storage operations continue to grow slightly, while margin development in cross-border transportation of bank notes and precious metals is negatively impacting the operating margin development for the segment as a whole.

January – September 2018

Revenue for Segment International amounted to SEK 707 million compared to SEK 655 million for the corresponding period the previous year and organic growth was 2 percent (–5). The real growth amounted to 5 percent (–29). The previous year's negative real growth was related to the divested general cargo operations. The divestment was effected in 2016.

The operating income (EBITA) amounted to SEK 51 million (42) and the operating margin for the period was 7.3 percent (6.4). The margin improvement is mainly explained by good growth in the precious metals storage operations.

Other significant events

Significant events during the period

The Annual General Meeting on May 3 voted in favor of the Board's proposal to introduce an incentive scheme (Incentive Scheme 2018). Similar to Incentive Scheme 2017, the new incentive scheme involves two thirds of variable remuneration being paid out in cash the year after it is earned. The remaining one third will be paid out in the form of Class B shares in Loomis AB allotted to the participants at the beginning of 2020. The allotment of shares is contingent upon the employee still being employed by the Loomis Group on the last day of February 2020, 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. Loomis AB will not issue any new shares or similar instruments in connection with this Incentive Scheme. The Incentive Scheme will enable around 350 key individuals within Loomis to become shareholders in Loomis AB over time. This will increase employee commitment to Loomis' development for the benefit of all shareholders. For full terms and conditions, see www.loomis.com.

An extraordinary shareholders' meeting on September 5 voted in favor of the Board's proposal to establish a long-term saving share-based incentive scheme ("LTIP 2018-2021"). The main aspect of the LTIP 2018-2021 scheme is that each participant is required to make an investment in Loomis Class B shares ("Saving Shares"). The Saving Shares may be acquired by the participant making a cash investment by purchasing Class B shares in Loomis on Nasdaq Stockholm. An estimated 58 key individuals will be included in LTIP 2018-2021 and will thereby be entitled to receive, free of charge, so-called performance shares on condition that (i) the participant remains employed until 28 February 2022 ("the Vesting Period"), (ii) the participant does not sell any Saving Shares before the end of the Vesting Period, and (iii) the performance target has been met. The performance target that must be met relates to the accumulated development of earnings per share (EPS) during the period 1 January 2018 – 31 December 2021. In connection with the publication of the year-end report for the year 2021, it will be determined whether the performance target has been met. For full terms and conditions, see www.loomis.com.

The extraordinary shareholders' meeting further voted in favor of the Board's proposal to amend the Articles of Association by introducing a conversion provision under which shareholders holding Class A shares may request to have their shares converted to Class B shares. Conversion requests are to be submitted to the Board of Directors and the Company must then report the conversion without delay to the Swedish Companies Registration Office for registration.

Acquisitions during the period

On January 17, 2018 Loomis announced its acquisition of all of the shares in the limited partnership company KÖTTER Geld und Wertdienste SE & Co. KG ("KGW"). KGW offers domestic cash handling services and its head office is in Essen, Germany. The enterprise value amounted to approximately SEK 171 million. The acquired operations are reported in Segment Europe and were consolidated into Loomis' accounts as of the closing date, January 22, 2018. The purchase price was paid on closing. After acquisition and integration costs, the acquisition is expected to have a marginally negative impact on Loomis' earnings per share for 2018.

On June 4, 2018 Loomis announced that it had entered into an agreement to acquire 100 percent of the shares in the French company CPoR Devises (CPoR). CPoR is a French credit institution that primarily offers foreign currency, but also offers physical gold for investment purposes. The enterprise value, i.e. the purchase price payable on a debt free basis, is around EUR 70 million, equivalent to around SEK 700 million. CPoR has around 130 employees and its annual revenue for 2017 was approximately EUR 37.5 million. The acquired operations will be reported in Segment Europe and consolidated into Loomis as of transaction closing date. Closing is expected to take place in the fourth quarter of 2018, pending local works council procedures and approval from ACPR, the French financial market regulator. The purchase price is payable upon closing. The acquisition is not expected to have a material impact on Loomis' earnings per share for 2018.

On June 27 Loomis announced the acquisition of 100 percent of the shares in the Chilean company Compañía Chilena de Valores S.A. (CCV). CCV operates in the cash handing market and is based in Valparaiso, Chile. The acquired operations are reported in Segment Europe as of the transaction closing date, which was June 27, 2018. USD 22 million of the purchase price was paid on closing. The acquisition is expected to have a marginally positive impact on Loomis' earnings per share for 2018.

Other events during the period

Kristoffer Wadman took up the position of Chief Innovation Officer at the beginning of June. In February this year it was announced that Loomis CFO, Anders Haker, would take on a new role as Chief Investor Relations Officer in the third quarter this year and that Kristian Ackeby would take over as CFO in the third quarter. Kristoffer Wadman and Kristian Ackeby are now members of Group Management.

Loomis' Danish subsidiary was informed at the beginning of July that a competitor had filed a lawsuit with a Danish court. The amount in the lawsuit is DKK 125 million and the suit relates mainly to alleged misuse of a dominant position in the Danish market. Loomis is of the opinion that it has acted in compliance with the laws in effect and has contested the lawsuit.

Argentina has been considered a hyperinflationary economy since July 1 and, accordingly, Loomis applies the standard IAS 29 'Financial Reporting in Hyperinflationary Economies'. The financial statements for the subsidiary in Argentina have therefore been adjusted for inflation to reflect the changes in purchasing power. The inflation adjustments have been made in accordance with the Argentine consumer price index, National CPI. Since the Loomis Group's reporting currency is SEK and thus not a currency in a hyperinflationary economy, the comparative figures have not been adjusted. The losses on monetary net assets/ liabilities for the period January 1, 2018–June 30, 2018 have been recorded on the line "Exchange rate differences" in other comprehensive income and amounted to SEK –6 million. The corresponding loss for the third quarter amounted to SEK –4

million and has been recorded in the statement of income statement on the line "Loss on monetary net assets/liabilities." The exchange rate used as of September 30, 2018 to convert ARS to SEK was 0.2232.

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 other 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 is risk both in terms of circumstances pertaining to Loomis itself or the industry as a whole, as well as 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 that 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 fullyear or interim 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 risks, such as operational disruptions and extended stoppages of systems linked to operating activities, as well as risks linked to installation of new systems.
• Risk of changed behavioral patterns relating to purchasing and payment.
• Customer-related risks, 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 cash 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 being only partially realized.

Financial risk: 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 risks associated with transactions and translation of shareholder's equity.

In July 2018 it was announced that Loomis had entered into a partnership with Sonect AG. Sonect is based in Switzerland and offers a smartphone app that enables individuals to withdraw cash from their bank account at stores without using a debit or credit card.

• 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 2017 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, other regulations and changes in legislation.

Factors of uncertainty

The economic trends in the first nine months of 2018 impacted certain geographic areas negatively, and it cannot be ruled out that Loomis' revenue and income for the remainder of 2018 may be negatively impacted as a result of this. Changes in general economic conditions and market trends have various effects on demand for cash handling services. 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 2018 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2017 Annual report and where applicable under the heading "Critical estimates and assessments" on page 10, 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 vacation periods and in connection with public holidays and holiday periods.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 77–78 and 103 of the 2017 Annual Report. Except for goodwill assessments in certain European countries and the legal case in Denmark, disclosed on page 8 in this report, there have been no other significant changes compared to what is described in the Annual 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 1–22, and pages 1–11 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 68–76 of the 2017 Annual Report.

To supplement the description provided in Note 2 of the 2017 Annual Report regarding IFRS 15 and its impact on Loomis, the Company would like provide the additional information below. As a result of the implementation of IFRS 15 the opening balance sheet total as of January 1, 2018 increased by SEK 131 million. The asset increase is mainly related to completed sales of Safe-Point units that were previously recognized as revenue, but which are now defined as a contract asset and depreciated over the term of the customer contract. Contract assets are recognized in the balance sheet on the line "Tangible fixed assets." The

increase on the liabilities side is largely for the payments received for the abovementioned sold SafePoint units. These contract liabilities are recognized on the lines "Non-interest-bearing current assets" and "Non-interest-bearing provisions." The total effect on equity as a result of the IFRS 15 implementation was a reduction in shareholders' equity of SEK 15 million.

IFRS 16 Leases is effective as of January 1, 2019. The implementation of the new standard will have an impact on the financial statements of the Group. More information regarding IFRS 16 can be found in Note 2 of the 2017 Annual Report. An assessment of the impact of implementation of the new standard is ongoing. Loomis will implement the new standard from January 1, 2019 and the modified retrospective method will be used.

As of July 1, 2018 Loomis has implemented IAS 29 Financial reporting in hyperinflationary economies, for the operations in Argentina.

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 108 of the 2017 Annual Report.

Transactions with related parties

Information about transactions between Loomis and related parties can be found in note 7 page 83 of the 2017 Annual Report.

Outlook 2018

The company is not providing any forecast information for 2018.

Stockholm, November 2, 2018

Patrik Andersson President and CEO Board member

Review Report

Introduction

We have reviewed the interim report for Loomis AB (publ) for the period January 1 - September 30, 2018. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information 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 has a

different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

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

Stockholm, November 2, 2018

Deloitte AB

Peter Ekberg Authorized Public Accountant

CONSOLIDATED STATEMENT OF INCOME

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Revenue, continuing operations	4,678	4,154	13,555	12,538	16,824	17,840
Revenue, acquisitions	239	92	657	332	404	730
Total revenue	4,918	4,246	14,212	12,870	17,228	18,569
Production expenses	–3,594	–3,034	–10,501	–9,383	–12,533	–13,651
Gross income	1,323	1,211	3,710	3,487	4,695	4,918
Selling and administration expenses	–697	–641	–2,102	–1,938	–2,602	–2,766
Operating income (EBITA)1)	626	570	1,608	1,549	2,093	2,152
Amortization of acquisition-related intangible assets	–22	–12	–61	–40	–55	–76
Acquisition-related costs and revenue	–12	–10	–272)	–392)	–47	–35
Items affecting comparability	–	–	983)	–	–	98
Operating income (EBIT)	592	549	1,618	1,470	1,992	2,139
Net financial items	–24	–30	–72	–83	–109	–98
Loss on monetary net assets/liabilities	–4	–	–4	–	–	–4
Income before taxes	565	518	1,542	1,387	1,882	2,038
Income tax	–142	–147	–391	–394	–454	–451
Net income for the period4)	422	371	1,151	993	1,428	1,587
KEY RATIOS
Real growth, %	8	5	8	3	3	7
Organic growth, %	2	3	3	3	2	2
Operating margin (EBITA), %	12.7	13.4	11.3	12.0	12.1	11.6
Tax rate, %	25	28	25	28	24	22
Earnings per share before dilution, SEK5)	5.61	4.93	15.30	13.19	18.99	21.10
Earnings per share after dilution, SEK	5.61	4.93	15.30	13.19	18.99	21.10

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–September 2018, refer to transaction costs of SEK –18 million (–5), restructuring costs of SEK –4 million (–17) and integration costs of SEK –5 million (–17). Transaction costs for the period January–September 2018 amount to SEK –7 million for acquisitions in progress, to SEK –7 million for completed acquisitions and to SEK –4 million for discontinued acquisitions.

3) Items affecting comparability of SEK 98 million consists primarily of a positive non-recurring item of SEK 178 million relating to a revaluation of the UK pension obligation as well as impairment of goodwill in two operations within the European segment that took place during the second quarter.

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

5) For further information please refer to page 19.

STATEMENT OF COMPREHENSIVE INCOME

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Net income for the period	422	371	1,151	993	1,428	1,587
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	110	25	166	28	17	154
Items that may be reclassified to the statement of income
Exchange rate differences1)	–117	–268	647	–672	–631	687
Hedging of net investments, net of tax	5	78	–132	192	179	–145
Other comprehensive income and expenses for the period, net after tax	–1	–164	680	–452	–435	696
Total comprehensive income for the period2)	421	207	1,831	541	993	2,283

1) Includes effects of hyperinflation in Argentina.

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

CONSOLIDATED BALANCE SHEET

	2018	2017	2017
SEK m	Sep 30	Sep 30	Dec 31
ASSETS
Fixed assets
Goodwill	6,182	5,420	5,615
Acquisition-related intangible assets	427	300	349
Other intangible assets	107	97	102
Tangible fixed assets	5,337	4,495	4,689
Non-interest-bearing financial fixed assets	433	437	459
Interest-bearing financial fixed assets1)	558	87	96
Total fixed assets	13,044	10,836	11,311
Current assets
Non-interest-bearing current assets2)	3,437	3,024	2,952
Interest-bearing financial current assets1)	67	20	62
Liquid funds	794	872	839
Total current assets	4,298	3,916	3,852
TOTAL ASSETS	17,341	14,752	15,164
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity3)	8,098	6,576	7,037
Long-term liabilities
Interest-bearing long-term liabilities	5,502	4,196	4,745
Non-interest-bearing provisions	798	714	630
Total long-term liabilities	6,301	4,909	5,376
Current liabilities
Tax liabilities	198	122	180
Non-interest-bearing current liabilities	2,694	2,487	2,496
Interest-bearing current liabilities	51	657	75
Total current liabilities	2,943	3,266	2,751
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	17,341	14,752	15,164
KEY RATIOS
Return of shareholders' equity, %	20	20	20
Return of capital employed, %	18	20	19
Equity ratio, %	47	45	46
Net debt	4,135	3,873	3,823
Net debt/EBITDA	1.25	1.20	1.19

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 96 and Note 23 in the Annual report 2017.

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

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2018	2017	2017	R12
SEK m	Jan–Sep	Jan–Sep	Full year
Opening balance	7,037	6,647	6,647	6,576
Effect of change in accounting principle IFRS 15	–15	–	–	–15
Effect of IAS 29	2	–	–	2
Opening balance adjusted in accordance with new accounting principles	7,024	6,647	6,647	6,564
Actuarial gains and losses after tax	166	28	17	154
Exchange rate differences1)	647	–672	–631	687
Hedging of net investments, net of tax	–132	192	179	–145
Total other comprehensive income	680	–452	–435	696
Net income for the period	1,151	993	1,428	1,587
Total comprehensive income	1,831	541	993	2,283
Dividend paid to Parent Company's shareholders	–677	–602	–602	–677
Share-related remuneration	–81	–9	–1	–72
Closing balance	8,098	6,576	7,037	8,098

1) Includes effects of hyperinflation in Argentina.

NUMBER OF SHARES AS OF SEPTEMBER 30, 2018

	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, GROUP

	2018	2017	2017
SEK m	Sep 30	Sep 30	Dec 31
Securities and guarantees	3,995	3,291	3,235
Other contingent liabilities	12	11	11
Total contingent liabilities	4,007	3,302	3,246

CONSOLIDATED STATEMENT OF CASH FLOWS

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Income before taxes	565	518	1,542	1,387	1,882	2,038
Items not affecting cash flow, items affecting comparability and acquisition-related costs1)	316	281	855	879	1,143	1,119
Income tax paid	–41	–67	–344	–350	–403	–397
Change in accounts receivable	–131	–129	–168	–180	–165	–153
Change in other operating capital employed and other items	–18	43	–155	–184	–145	–116
Cash flow from operations	690	645	1,730	1,552	2,313	2,491
Cash flow from investment activities	–347	–414	–1,367	–976	–1,619	–2,010
Cash flow from financing activities	–449	161	–424	–336	–487	–576
Cash flow for the period	–106	392	–61	241	207	–95
Liquid funds at beginning of the period	912	492	839	663	663	872
Translation differences in liquid funds	–12	–12	17	–32	–31	17
Liquid funds at end of period	794	872	794	872	839	794

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

CONSOLIDATED STATEMENT OF CASH FLOWS, ADDITIONAL INFORMATION

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Operating income (EBITA)	626	570	1,608	1,549	2,093	2,152
Depreciation	300	273	885	851	1,124	1,158
Change in accounts receivable	–131	–129	–168	–180	–165	–153
Change in other operating capital employed and other items	–18	43	–155	–184	–145	–116
Cash flow from operating activities before investments	777	757	2,170	2,037	2,908	3,041
Investments in fixed assets, net	–347	–236	–1,014	–763	–1,152	–1,403
Cash flow from operating activities	430	522	1,156	1,274	1,756	1,638
Financial items paid and received	–29	–27	–59	–70	–111	–100
Income tax paid	–41	–67	–344	–350	–403	–397
Free cash flow	360	427	753	854	1,242	1,141
Cash flow effect of items affecting comparability	0	0	–1	–1	–1	–1
Acquisition of operations	–	–179	–353	–213	–467	–607
Acquisition-related costs and revenue, paid and received1)	–16	–18	–36	–64	–80	–52
Dividend paid	–	–	–677	–602	–602	–677
Change in interest-bearing net debt excluding liquid funds	–192	191	–437	10	–117	–564
Change in commercial papers issued and other long-term borrowing	–257	–30	690	256	231	665
Cash flow for the period	–106	392	–61	241	207	–95
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	69	91	72	82	84	76
Investments in relation to depreciation	1.2	0.9	1.1	0.9	1.0	1.2
Investments as a % of total revenue	7.1	5.6	7.1	5.9	6.7	7.6

1) Refers to acquisition-related transaction- restructuring- and integration costs.

Other information

SEGMENT OVERVIEW REVENUE

	Europe	USA	International	Other	Eliminations	Total
SEK m	Jan – Sep 2018	Jan – Sep 2018		Jan – Sep 2018 Jan – Sep 2018	Jan – Sep 2018 Jan – Sep 2018
Cash in transit (CIT)	4,821	4,058	–	–	–	8,879
Cash management services (CMS)	2,214	2,094	–	–	–	4,308
International	–	–	697	–	–	697
Other	257	71	–	–	–	328
Revenue, internal	30	5	10	–	–45	–
Total revenue	7,321	6,228	707	–	–45	14,212
Timing of revenue recognition, external
At a point in time	733	60	547	–	–	1,340
Over time	6,559	6,163	150	–	–	12,872
Total external revenue	7,292	6,223	697	–	–	14,212

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	International	Other1)	Eliminations	Total
SEK m	Jan – Sep 2018	Jan – Sep 2018	Jan – Sep 2018	Jan – Sep 2018	Jan – Sep 2018	Jan – Sep 2018
Revenue, continuing operations	6,679	6,228	692	–	–45	13,555
Revenue, acquisitions	642	–	15	–	–	657
Total revenue	7,321	6,228	707	–	–45	14,212
Production expenses	–5,489	–4,507	–573	–	67	–10,501
Gross income	1,832	1,721	134	–	23	3,710
Selling and administrative expenses	–983	–887	–83	–126	–23	–2,102
Operating income (EBITA)	849	834	51	–126	–	1,608
Amortization of acquisition related intangible assets	–39	–10	–12	–	–	–61
Acquisition-related costs	–14	–1	–	–13	–	–27
Items affecting comparability	982)	–	–	–	–	98
Operating income (EBIT)	894	823	40	–139	–	1,618

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

2) Items affecting comparability of SEK 98 million consists primarily of a positive non-recurring item of SEK 178 million relating to a revaluation of the UK pension obligation as well as impairment of goodwill in two operations within the European segment that took place during the second quarter.

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	International	Other1)	Eliminations	Total
SEK m	Jan – Sep 2017	Jan – Sep 2017	Jan – Sep 2017	Jan – Sep 2017	Jan – Sep 2017	Jan – Sep 2017
Revenue, continuing operations	6,171	5,763	655	–	–51	12,538
Revenue, acquisitions	332	–	–	–	–	332
Total revenue	6,503	5,763	655	–	–51	12,870
Production expenses	–4,719	–4,201	–537	–	73	–9,383
Gross income	1,784	1,562	118	–	22	3,487
Selling and administrative expenses	–906	–820	–77	–113	–22	–1,938
Operating income (EBITA)	878	742	42	–113	–	1,549
Amortization of acquisition related intangible assets	–18	–10	–12	–	–	–40
Acquisition-related costs	–34	–1	–	–4	–	–39
Operating income (EBIT)	825	731	30	–116	–	1,470

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

SEGMENT OVERVIEW STATEMENT OF INCOME, ADDITIONAL INFORMATION

	2018	2017	2018	2017	2017	R12
SEK m	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Europe
Operating income (EBITA)	362	350	849	878	1,175	1,147
Operating margin (EBITA), %	14.3	15.9	11.6	13.5	13.5	12.0
USA
Operating income (EBITA)	285	242	834	742	1,009	1,101
Operating margin (EBITA), %	13.2	13.1	13.4	12.9	13.1	13.5
International
Operating income (EBITA)	18	15	51	42	61	70
Operating margin (EBITA), %	7.2	7.1	7.3	6.4	6.9	7.6
Other 1)
Revenue	–	–	–	–	–	–
Operating income (EBITA)	–37	–37	–126	–113	–152	–166
Eliminations
Revenue	–14	–16	–45	–51	–66	–60
Operating income (EBITA)	–	–	–	–	–	–
Group total
Operating income (EBITA)	626	570	1,608	1,549	2,093	2,152
Operating margin (EBITA), %	12.7	13.4	11.3	12.0	12.1	11.6

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

SEGMENT OVERVIEW BALANCE SHEET

	2018	2017	2017
SEK m	Sep 30	Sep 30	Dec 31
Europe
Assets	7,889	6,171	6,550
Liabilities	2,317	2,297	2,259
USA
Assets	7,165	6,266	6,301
Liabilities	812	573	700
International
Assets	1,315	1,182	1,167
Liabilities	265	220	220
Other 1)
Assets	972	1,133	1,146
Liabilities	5,849	5,086	4,948
Shareholder's equity	8,098	6,576	7,037
Group total
Assets	17,341	14,752	15,164
Liabilities	9,243	8,176	8,127
Shareholder's equity	8,098	6,576	7,037

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

CAPITAL EMPLOYED AND FINANCING

	2018	2017	2017
SEK m	Sep 30	Sep 30	Dec 31
Operating capital employed	5,716	4,708	4,866
Goodwill	6,182	5,420	5,615
Acquisition-related intangible assets	427	300	349
Other capital employed	–93	21	30
Capital employed1)	12,233	10,450	10,860
Net debt	4,135	3,873	3,823
Shareholders' equity	8,098	6,576	7,037
Key ratios
Return on capital employed, %	18	20	19
Return on equity, %	20	20	20
Equity ratio, %	47	45	46
Net debt/EBITDA	1.25	1.20	1.19

1) In the third quarter Loomis prepared long-term business plans and in connection with this process, an impairment test was carried out to determine if impairment was indicated in any of the Group's cash-generating units. None of the cash-generating units had a book value exceeding its recoverable amount, and therefore no goodwill impairment has been recorded in the third quarter.

ACQUISITIONS

	Consolidated as of	Segment	Acquired share1) %	Annual revenue SEK m	Number of employees	Purchase price SEK m	Good will SEK m	Acquisition related intangible assets SEK m	Other acquired net assets SEK m
Opening balance, January 1, 2018							5,615	349
Acquisition of KÖTTER Geld- und Wertdienste SE & CO. KG6)	January	Europe	100	4432)	800	1464)	517)	47	48
Acquisition of Compañía Chilena de Valores S.A.6)	June	Europe	100	952)	1,000	2484)	1778)	51	20
Other acquisitions6)	January/ February	International/ Europe	100	463)	28	165)	238)	–	–7
Other9)							–29	18	–
Total acquisitions January – September 2018							222	116	61
Amortization of acquisition related intangible assets							–	–61
Impairment							–5110)	–
Exchange rate differences							396	23
Closing balance September 30, 2018							6,182	427

1) Refers to share of votes. In acquisitions of assets and liabilities, no share of votes is indicated.

2) Annual revenue in 2017 translated to SEK million on the acquisition date.

3) Annual revenue translated to SEK million on the acquisition date.

4) The enterprise value on the acquisition date amounted to around SEK 171 million for KGW and around SEK 250 million for CCV.

5) The enterprise value on the acquisition date amounted to around SEK 23 million.

6) The acquisition analysis is preliminary and subject to final adjustment no later than one year from the acquisition date. Complete IFRS 3 disclosures and not disclosed since the completed acquisitions are not deemed to materially impact the Group's statement of income or financial position.

7) Goodwill arising in connection with the acquisition is primarily attributable to markets, synergy effects and expansion of services. Any impairment is not tax deductible.

8) Goodwill arising in connection with the acquisition is primarily attributable to market and synergy effects. Any impairment is not tax deductible.

9) From an updated acquisition analysis from the previous year for the following unit: Wagner Seguridad Custodia y Transporte de Valores.

10) Relates to impairment recognized during the second quarter for the following entities: Loomis Czech Republic and Loomis Belgium.

KEY RATIOS

	2018	2017	2018	2017	2017	R12
	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full year
Real growth, %	8	5	8	3	3	7
Organic growth, %	2	3	3	3	2	2
Total growth, %	16	1	10	4	3	7
Gross margin, %	26.9	28.5	26.1	27.1	27.3	26.5
Selling and administration expenses in % of total revenue	–14.2	–15.1	–14.8	–15.1	–15.1	–14.9
Operating margin (EBITA), %	12.7	13.4	11.3	12.0	12.1	11.6
Tax rate, %	25	28	25	28	24	22
Net margin, %	8.6	8.7	8.1	7.7	8.3	8.5
Return of shareholders' equity, %	20	20	20	20	20	20
Return of capital employed, %	18	20	18	20	19	18
Equity ratio, %	47	45	47	45	46	47
Net debt (SEK m)	4,135	3,873	4,135	3,873	3,823	4,135
Net debt/EBITDA	1.25	1.20	1.25	1.20	1.19	1.25
Cash flow from operating activities as % of operating income (EBITA)	69	91	72	82	84	76
Investments in relation to depreciation	1.2	0.9	1.1	0.9	1.0	1.2
Investments as a % of total revenue	7.1	5.6	7.1	5.9	6.7	7.6
Earnings per share before dilution, SEK1)	5.61	4.93	15.30	13.19	18.99	21.10
Earnings per share after dilution, SEK	5.61	4.93	15.30	13.19	18.99	21.10
Shareholders' equity per share after dilution, SEK	107.64	87.42	107.64	87.42	93.55	107.64
Cash flow from operating activities per share after dilution, SEK	9.18	8.58	23.00	20.64	30.75	33.12
Dividend per share, SEK	–	–	9.00	8.00	8.00	9.00
Number of outstanding shares (millions)	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

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.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2018	2017	2017
SEK m	Jan–Sep	Jan–Sep	Full year
Revenue	414	372	512
Operating income (EBIT)	262	237	324
Income after financial items	608	868	1,012
Net income for the year	593	770	880

The Parent Company's revenue consists mainly of license fees and other revenue from subsidiaries. The slightly lower net income for the period is primarily explained by exchange rate losses on loans in foreign currency, which are related to investments in subsidiaries.

PARENT COMPANY SUMMARY BALANCE SHEET

	2018	2017	2017
SEK m	Sep 30	Sep 30	Dec 31
Fixed assets	10,096	9,638	9,791
Current assets	1,471	971	973
Total assets	11,567	10,609	10,765
Shareholders' equity1)	5,003	5,047	5,158
Liabilities	6,565	5,562	5,607
Total shareholders' equity and liabilities	11,567	10,609	10,765

1) The number of Class B treasury shares was 53,797 for all periods above.

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

CONTINGENT LIABILITIES, PARENT COMPANY

	2018	2017	2017
SEK m	Sep 30	Sep 30	Dec 31
Guaranteed committed bank facilities	1,370	1,273	1,270
Other contingent liabilities	2,491	1,773	1,816
Total contingent liabilities	3,860	3,046	3,085

Definitions

Use of key ratios not defined in IFRS

The Loomis Group's accounts are prepared in accordance with IFRS. See page 10 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 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 2.

Gross margin, %	Gross income as a percentage of total revenue.
Operating income (EBITA)	Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
Operating margin (EBITA), %	Earnings Before Interest, Taxes, Amortization of acquisition-related 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.
Items affecting comparability	Items affecting comparability are reported events and transactions whose impact are important to note when the period's results are compared with previous periods, such as capital gains and capital losses from divestments of significant cash generating units, material write-downs or other significant items affecting comparability.
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: Jul–Sep 2018: 422/75,226,032 x 1,000,000 = 5.61. Jul–Sep 2017: 371/75,226,032 x 1,000,000 = 4.93. Jan–Sep 2018: 1,151/75,226,032 x 1,000,000 = 15.30. Jan– Sep 2017: 993/75,226,032 x 1,000,000 = 13.19
Earnings per share after dilution	Calculation for: Jul–Sep 2018: 422/75,226,032 x 1,000,000 = 5.61. Jul–Sep 2017: 371/75,226,032 x 1,000,000 = 4.93. Jan–Sep 2018: 1,151/75,226,032 x 1,000,000 = 15.30. Jan–Sep 2017: 993/75,226,032 x 1,000,000 = 13.19
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, acquisi tions 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 (October 2017 up to and including September 2018).
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 2018-2021

• Revenue: SEK 24 billion by 2021.
• Operating margin (EBITA): 12–14 percent.
• Dividend: 40–60 percent of net income.

Sustainability targets

• Zero workplace injuries.
• Decrease carbon emission by 30 percent by 2021.
• Decrease plastic volumes by 30 percent by 2021.

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 2017 of SEK 17.2 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.

Telephone conference and audio cast

A telephone conference will be held on November 2, 2018 at 09:00 a.m. (CET).

To follow the conference call via telephone and to participate in the question and answer session, please call: UK: 08448228902 USA: 19177200181 Sweden: +46 8 56618430

Provide conference ID number: Loomis, 2356678.

The audio cast can be followed at our website www.loomis.com (follow "Financial presentation").

A recorded version of the audio cast will be available at www.loomis.com (follow "Financial presentation") after the telephone conference.

Future reporting and meeting

Full-year report January – December January 30, 2019

Interim report January – March April 25, 2019 Interim report January – June July 25, 2019 Interim report January – September November 1, 2019

Loomis' Annual Report for 2018 will be available at www.loomis.com in April 2019. Loomis' Annual General meeting will be held on May 8, 2019 in Stockholm.

For further information

Anders Haker, Chief Investor Relations Officer +1 281 795 8580, 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 person set out above, at 08.00 a.m. (CET) on November 2, 2018.