Loomis — Interim / Quarterly Report 2018

Jul 25, 2018

Interim Report January – June 2018

• Revenue SEK 4,808 million (4,346). Real growth 7 percent (2) and organic growth 3 percent (2).
• Operating income (EBITA)1) SEK 509 million (517) and operating margin 10.6 percent (11.9).
• Income before taxes SEK 553 million (463) and income after taxes SEK 411 million (332).
• Earnings per share before and after dilution was SEK 5.47 (4.41).
• Cash flow from operating activities SEK 456 million (437), equivalent to 90 percent (85) of operating income (EBITA).

April – June 2018 January – June 2018

• Revenue 9,294 SEK million (8,625). Real growth 8 percent (2) and organic growth 3 percent (2).
• Operating income (EBITA)1) SEK 981 million (979) and operating margin 10.6 percent (11.3).
• Income before taxes SEK 977 million (868) and income after taxes SEK 729 million (622).
• Earnings per share before and after dilution SEK 9.69 (8.26).
• Cash flow from operating activities SEK 726 million (752), equivalent to 74 percent (77) 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

Annual dividend, % 40–60% of the Group's net income

Operating margin (EBITA), %

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 Group's real growth for the second quarter of 2018 amounted to 7 percent (2) and the organic growth was 3 percent (2). USA continues to act as an engine for the organic growth, but many countries in the European segment are also experiencing high growth. Organic growth remains high in Argentina and Turkey, but Spain, Portugal and Austria have also made a positive contribution. Organic growth is currently more challenging in France and Sweden. We expect the situation in France to gradually improve in the second half of this year. I am happy to report that we have made several key acquisitions in the second quarter. The acquisition of CPoR in France will enable us to expand our offering relating to foreign currencies in one of the world's largest tourist markets, and as a result of our acquisition of Compañía Chilena de Valores in Chile, our share of the Chilean cash handling market will exceed 30 percent.

The Group's operating margin (EBITA) was lower in the second quarter than in the same quarter in 2017, amounting to 10.6 percent (11.9). In the same way as in the first quarter this year, the ongoing restructuring programs in France and Sweden have had a negative effect on the operating margin due to significant costs involved in adapting operations to the changed market situations.

We are continuing to increase our share of the US market and we are seeing good organic growth both in cash in transit (CIT) and in cash management services (CMS). The continuing outsourcing trend among banks is increasing our volumes at the same time as the number of installed SafePoint units is growing. We believe that our strong customer focus and our highly ambitious quality strategy continue to be key contributing factors in sustaining our strong growth. Organic growth in the quarter amounted to 7 percent (5). Revenue from our SafePoint concept increased during the quarter by around 18 percent, compared with the corresponding period in 2017. In the second quarter this year we installed just over 1,300 new units, making a total of around 25,000 units installed at our customers' locations. The

operating margin in USA amounted to 13.1 percent (13.0). Our business model, which involves constant and ongoing efficiency improvement at our branches, continues to yield results, at the same time as revenue from our high-margin products in CMS and SafePoint is contributing to positive market development. Our aim is to continue to grow in the USA and we are investing in several areas of our business to handle increased volumes. Our sales organization is growing and we are also expanding our support organization within customer service and IT.

The organic growth in Segment Europe amounted to -1 percent (1). Similar to the first quarter, the positive development we have witnessed in many countries is continuing to result in good growth. But, as we reported earlier, the development in Sweden and France is more challenging. The replacement of bank notes and coins in Sweden was largely completed in the third quarter of 2017 and this has negatively affected organic growth in the second quarter of this year. We previously reported that in summer 2017 our volumes went down in France among some of our larger customers. Competition in the French market is tough and we are expecting growth in France to remain challenging for the remainder of 2018, although development will gradually improve. The operating margin in Segment Europe during the quarter was 10.7 percent (13.1). The lower operating margin is in large part related to the French and Swedish operations where significant restructuring programs are ongoing. We expect these programs to reach their full effect at the end of 2018. The lower operating margin is in part also due to the fact that in the first quarter this year we acquired a business in Germany which currently is experiencing lower profitability than the European average.

In Segment International organic growth was 3 percent (-8). The operating margin was slightly lower than in the corresponding period last year, amounting to 6.9 percent (7.5). Demand for cross-border transportation of bank notes and precious metals remained low during the quarter, but we believe that we have seen the end of the negative market trend of the past few years. Our storage operations continue to develop in a positive direction, although this has not been able to fully compensate for the margin development in our CIT operations.

The implementation of our new strategy plan is in full swing. The progress on our Centers of Excellence in Stockholm (innovation), Madrid (CIT/CMS) and Houston (SafePoint/retail customer solutions) is according to plan. Of course there is still much work to do and we are continuing to work towards reaching our strategic and financial targets for 2021.

Patrik Andersson President and CEO

The Group and the segments in brief

	2018	2017	2018	2017	2017	R12
SEK m	Apr – Jun	Apr – Jun	Jan–Jun	Jan–Jun	Full year
Group total
Revenue	4,808	4,346	9,294	8,625	17,228	17,897
Real growth, %	7	2	8	2	3	6
Organic growth, %	3	2	3	2	2	3
Operating income (EBITA)1)	509	517	981	979	2,093	2,095
Operating margin, %	10.6	11.9	10.6	11.3	12.1	11.7
Earnings per share before dilution, SEK2)	5.47	4.41	9.69	8.26	18.99	20.42
Earnings per share after dilution, SEK	5.47	4.41	9.69	8.26	18.99	20.42
Cash flow from operating activities as % of operating income (EBITA)	90	85	74	77	84	83
Segment
Europe
Revenue	2,459	2,198	4,798	4,303	8,728	9,222
Real growth, %	8	7	8	6	5	5
Organic growth, %	–1	1	–1	1	0	–1
Operating income (EBITA)1)	263	287	488	527	1,175	1,135
Operating margin, %	10.7	13.1	10.2	12.3	13.5	12.3
USA
Revenue	2,126	1,945	4,066	3,911	7,688	7,843
Real growth, %	7	5	8	5	6	7
Organic growth, %	7	5	8	5	6	7
Operating income (EBITA)1)	277	252	549	500	1,009	1,058
Operating margin, %	13.1	13.0	13.5	12.8	13.1	13.5
International
Revenue	239	221	461	445	878	894
Real growth, %	5	–38	4	–35	–24	–1
Organic growth, %	3	–8	1	–3	–6	–3
Operating income (EBITA)1)	17	17	34	27	61	68
Operating margin, %	6,9	7,5	7,3	6,0	6,9	7,6

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 is used to calculate earnings per share before dilution, was 75,226,032 for all periods above. The number of treasury shares was 53,797 for all periods above.

Operating margin (EBITA) Operating margin (EBITA)

Operating margin(EBITA) rolling 12 months

Operating margin (EBITA) per quarter

Revenue and earnings

	2018	2017	2018	2017	2017	R12
SEK m	Apr – Jun	Apr – Jun	Jan–Jun	Jan–Jun	Full year
Revenue	4,808	4,346	9,294	8,625	17,228	17,897
Operating income (EBITA)1)	509	517	981	979	2,093	2,095
Operating income (EBIT)	575	489	1,025	921	1,992	2,095
Income before taxes	553	463	977	868	1,882	1,991
Net income for the period	411	332	729	622	1,428	1,536
KEY RATIOS
Real growth, %	7	2	8	2	3	6
Organic growth, %	3	2	3	2	2	3
Operating margin (EBITA), %	10.6	11.9	10.6	11.3	12.1	11.7
Tax rate, %	26	28	25	28	24	23
Earnings per share after dilution, SEK	5.47	4.41	9.69	8.26	18.99	20.42

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

April – June 2018

Revenue for the quarter amounted to SEK 4,808 million (4,346). Organic growth was 3 percent (2) and real growth was 7 percent (2). Similar to previous periods, organic growth is mainly attributable to continued good growth primarily in the USA. Revenue also increased in several countries in the European segment, where Spain, Turkey, Argentina, Portugal and Austria showed good growth. The organic growth was adversely affected during the quarter by development in Sweden and France. The acquisitions made in Finland, Chile and Germany in 2017 and 2018 had a positive impact on real growth.

The operating income (EBITA) amounted to SEK 509 million (517) and the operating margin was 10.6 percent (11.9). At comparable exchange rates the drop in income was around SEK 21 million. The ongoing restructuring programs in France and Sweden, combined with the acquisition in Germany in 2018, are the main explanations for the lower margin. The restructuring programs that are ongoing are expected to reach their full effect at the end of 2018. In the USA an increased number of installed SafePoint units, economies of scale from increased CMS volumes and improved efficiency in both CIT and CMS have had a positive impact on the operating margin.

The operating income (EBIT) for the quarter amounted to SEK 575 million (489). Amortization of acquisition-related intangible assets for the quarter amounted to SEK –22 million (–14) and acquisition-related costs amounted to SEK –10 million (–14). An item affecting comparability of SEK 98 million (0) was reported during the quarter. The item consists primarily of a positive nonrecurring 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.

Income before taxes of SEK 553 million (463) includes a net financial expense of SEK –23 million (–26).

The tax expense for the quarter amounted to SEK –141 million (–131), which represents a tax rate of 26 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 5.47 (4.41).

January – June 2018

Revenue for the six-month period amounted to SEK 9,294 million (8,625). Sustained good growth in the USA, Turkey and Argentina was the main explanation for the organic growth of 3 percent (2). Growth in the USA is largely explained by a sustained increase in CMS outsourcing from the banks as well as continued increase in SafePoint revenue. Growth in Turkey and Argentina is mainly attributable to increased CIT volumes. Organic growth for the Group as a whole was also positively impacted by increased sales in a number of European countries such as Spain, Portugal and Austria. Organic growth was adversely affected during the period by development in Sweden and France. The acquisitions made in Finland, Chile and Germany had a positive impact on real growth of 8 percent (2).

The operating income (EBITA) amounted to SEK 981 million (979) while the operating margin fell to 10.6 percent (11.3). At comparable exchange rates the income improvement was around SEK 11 million. Considerable restructuring programs are ongoing in France and Sweden to handle new market situations and are the main reason for the decline in profitability. More installed SafePoints in the USA and growing CMS volumes in the USA have not been able to compensate for lower operating margins in some of the European markets for the Group as a whole.

The operating income (EBIT) for the period amounted to SEK 1,025 million (921), which includes amortization of acquisitionrelated intangible assets of SEK –39 million (–29), acquisitionrelated costs of SEK –15 million (–29) and an item 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 a revaluation of the UK pension obligation as well as impairment of goodwill in two operations within the European segment.

Income before taxes of SEK 977 million (868) includes a net financial expense of SEK –48 million (–53).

The tax expense for the period amounted to SEK –248 million (–247), 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 9.69 (8.26).

The segments

EUROPE

	2018	2017	2018	2017	2017	R12
SEK m	Apr – Jun	Apr – Jun	Jan–Jun	Jan–Jun	Full year
Revenue	2,459	2,198	4,798	4,303	8,728	9,222
Real growth, %	8	7	8	6	5	5
Organic growth, %	–1	1	–1	1	0	–1
Operating income (EBITA)1)	263	287	488	527	1,175	1,135
Operating margin, %	10.7	13.1	10.2	12.3	13.5	12.3

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

Revenue and operating income – Segment Europe April – June 2018

Revenue for Segment Europe for the quarter amounted to SEK 2,459 million (2,198) and organic growth was –1 percent (1). Spain, Portugal, Argentina, Turkey and Austria all showed good organic growth. Sweden completed its replacement of bank notes and coins in the third quarter of 2017 and this had a negative impact on organic growth during the quarter. Volumes are expected to continue to fall slightly in the Nordic countries as a whole. Organic growth in France initially developed in a negative direction in the second quarter of 2017 due to the increasingly tough competitive climate there. Volumes in France have been falling since then and we expect growth in France to gradually recover in the second half of the year. The real growth of 8 percent (7) includes revenue generated by the operations acquired over the past 12 months in Finland, Chile and Germany.

The operating income (EBITA) amounted to SEK 263 million (287) and the operating margin was 10.7 percent (13.1). 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 the lower volumes there and the full effect of this is expected to be reached at the end of 2018. Similar programs are in progress in the Nordic countries to adapt operations to slightly lower volumes.

January – June 2018

Revenue for Segment Europe for the period amounted to SEK 4,798 million (4,303) and organic growth was –1 percent (1). Spain, Argentina and Turkey were primarily the countries demonstrating good organic growth in the first six 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 8 percent (6) includes revenue relating to the acquisitions in Finland, Chile and Germany.

The operating income (EBITA) amounted to SEK 488 million (527) and the operating margin fell to 10.2 percent (12.3). The decline in profitability is explained by the extensive restructuring program ongoing in France and in a number of the Nordic countries to handle a new market situation. Furthermore, the operating margin was negatively affected by the acquired German operation, which is currently experiencing a lower profitability than the European average.

USA

	2018	2017	2018	2017	2017	R12
SEK m	Apr – Jun	Apr – Jun	Jan–Jun	Jan–Jun	Full year
Revenue	2,126	1,945	4,066	3,911	7,688	7,843
Real growth, %	7	5	8	5	6	7
Organic growth, %	7	5	8	5	6	7
Operating income (EBITA)1)	277	252	549	500	1,009	1,058
Operating margin, %	13.1	13.0	13.5	12.8	13.1	13.5

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

Revenue and operating income – Segment USA

April – June 2018

Revenue for Segment USA for the quarter amounted to SEK 2,126 million (1,945) and both real growth and organic growth amounted to 7 percent (5). Growth increased during the quarter, both in CIT and in CMS. Increased revenue from ATM replenishment was the main driver for the CIT development whereas more installed SafePoints is mainly explaining the CMS growth. Increased outsourcing volumes from banks was also a contributing growth factor. 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 277 million (252) and the operating margin was 13.1 percent (13.0). 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 aim is to continue the expansion in the USA and operational adjustments are ongoing in order to handle increased volumes. The sales organization is growing and we are also expanding our support organization within customer service and IT.

January – June 2018

Revenue for Segment USA for the first six months amounted to SEK 4,066 million (3,911) and both real and organic growth amounted to 8 percent (5). 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 for the period. Changes in fuel fees, which Loomis passes on to its customers, had a positive effect on organic growth by 1 percentage point, 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 549 million (500) and the operating margin was 13.5 percent (12.8). 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.

INTERNATIONAL

	2018	2017	2018	2017	2017	R12
SEK m	Apr – Jun	Apr – Jun	Jan–Jun	Jan–Jun	Full year
Revenue	239	221	461	445	878	894
Real growth, %	5	–38	4	–35	–24	–1
Organic growth, %	3	–8	1	–3	–6	–3
Operating income (EBITA)1)	17	17	34	27	61	68
Operating margin, %	6.9	7.5	7.3	6.0	6.9	7.6

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

Revenue and operating income – Segment International April – June 2018

Revenue for Segment International amounted to SEK 239 million compared to SEK 221 million for the second quarter the previous year and real growth was 5 percent (–38). The previous year's negative real growth was related to the divested general cargo operations. Demand for cross-border transportation of bank notes and precious metals remained low during the quarter, but we believe that the negative market trend we have seen in recent years has now ended. The organic growth amounted to 3 percent (–8).

The operating income (EBITA) amounted to SEK 17 million (17) and the operating margin was 6.9 percent (7.5). 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 – June 2018

Revenue for Segment International amounted to SEK 461 million compared to SEK 445 million for the corresponding period the previous year and organic growth was 1 percent (–3). The real growth amounted to 4 percent (–35). The previous year's negative real growth was related to the divested general cargo operations.

The operating profit (EBITA) amounted to SEK 34 million (27) and the operating margin for the period was 7.3 percent (6.0). The margin improvement is mainly explained by good growth in the precious metals storage operations.

Cash flow

STATEMENT OF CASH FLOWS

	2018	2017	2018	2017	2017	R12
SEK m	Apr – Jun	Apr – Jun	Jan–Jun	Jan–Jun	Full year
Operating income (EBITA)1)	509	517	981	979	2,093	2,095
Depreciation	300	285	585	578	1,124	1,132
Change in accounts receivable	–108	–85	–37	–50	–165	–151
Change in other working capital and other items	65	–1	–137	–227	–145	–55
Cash flow from operating activities before investments	765	715	1,393	1,279	2,908	3,021
Investments in fixed assets, net	–310	–278	–666	–527	–1,152	–1,291
Cash flow from operating activities	456	437	726	752	1,756	1,730
Financial items paid and received	–14	–24	–30	–43	–111	–98
Income tax paid	–226	–218	–302	–283	–403	–423
Free cash flow	215	196	394	426	1,242	1,209
Cash flow effect of items affecting comparability	0	0	0	0	–1	–1
Acquisition of operations	–191	–	–353	–34	–467	–786
Acquisition-related costs/revenue, paid/received2)	–9	–16	–20	–46	–80	–54
Dividend paid	–677	–602	–677	–602	–602	–677
Change in interest-bearing net debt excl. liquid funds	–203	–201	–246	–182	–117	–181
Change in commercial papers issued and other long-term borrowing	898	324	947	286	231	892
Cash flow for the period	32	–299	45	–151	207	403
Liquid funds at beginning of period	867	806	839	663	663	492
Exchange rate differences in liquid funds	13	–15	28	–20	–31	16
Liquid funds at end of period	912	492	912	492	839	912
KEY RATIOS
Cash flow from operations as a % of operating income (EBITA)	90	85	74	77	84	83
Investments in relation to depreciation	1.0	1.0	1.1	0.9	1.0	1.1
Investments as a % of total revenue	6.4	6.4	7.2	6.1	6.7	7.2

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability. 2) Refers to acquisition-related transaction, restructuring and integration costs.

Cash flow

April – June 2018

Cash flow from operating activities of SEK 456 million (437) corresponded to 90 percent (85) of the operating income (EBITA).

Net investments in fixed assets for the quarter amounted to SEK 310 million (278), which can be compared to depreciation of fixed assets of SEK 300 million (285). Investments of SEK 154 million (117) were made during the quarter in vehicles, safety equipment and SafePoint. An additional SEK 88 million (105) was invested in buildings, machinery and similar equipment.

The income tax paid in the quarter was SEK 226 million compared to SEK 218 million for the corresponding quarter the previous year.

January – June 2018

Cash flow from operating activities was SEK 726 million (752), equivalent to 74 percent (77) of operating income (EBITA). Similar to previous years, the change in cash flow from changes in other working capital and other items was negative in the first half of the year because large payments for items such as personnel costs and insurance premiums are normally made during this period. Positive cash flow changes relating to changes in working capital normally occur during the latter part of the year.

Net investments in fixed assets for the period amounted to SEK 666 million (527), which can be compared to depreciation of fixed assets of SEK 585 million (578). Investments of SEK 253 million (249) were made during the period in vehicles, safety equipment and SafePoint. An additional SEK 233 million (179) was invested in buildings, machinery and similar equipment.

The income tax paid in the period was SEK 302 million compared to SEK 283 million for the corresponding period the previous year.

Capital employed and financing

CAPITAL EMPLOYED AND FINANCING

	2018	2017	2017
SEK m	Jun 30	Jun 30	Dec 31
Operating capital employed	5,583	4,748	4,866
Goodwill	6,254	5,469	5,615
Acquisition-related intangible assets	448	249	349
Other capital employed	35	112	30
Capital employed	12,320	10,578	10,860
Net debt	4,584	4,217	3,823
Shareholders' equity	7,736	6,361	7,037
Key ratios
Return on capital employed, %	17	19	19
Return on equity, %	20	21	20
Equity ratio, %	44	44	46
Net debt/EBITDA	1.42	1.32	1.19

Capital employed

Capital employed amounted to SEK 12,320 million (10,860 as of December 31, 2017). Return on capital employed amounted to 17 percent (19 as of December 31, 2017).

Equity and financing

Shareholders' equity amounted to SEK 7,736 million (7,037 as of December 31, 2017). The return on shareholders' equity was 20 percent (20 as of December 31, 2017) and the equity ratio was 44 percent (46 as of December 31, 2017). The increase in shareholders' equity is mainly due to the net income of SEK 729 million for the period and to an increase in the Group's net assets in foreign currencies due to the weak SEK development. Shareholders' equity for the period was reduced by a dividend to shareholders of SEK 677 million.

Net debt amounted to SEK 4,584 million (3,823 as of December 31, 2017). The net debt/EBITDA ratio amounted to 1.42 (1.19 as of December 31, 2017) and is affected by completed acquisitions and dividend.

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)	407)	58	48
Acquisition of Compañía Chilena de Valores S.A.6)	June	Europe	100	952)	1,000	2484)	1798)	51	18
Other acquisitions6)	January/ February	International/ Europe	100	463)	28	165)	238)	0	–7
Other9)							–11	–	–
Total acquisitions January – June 2018							231	109	59
Amortization of acquisition related intangible assets							–	–39
Impairment							–5110)	–
Exchange rate differences							459	29
Closing balance June 30, 2018							6,254	448

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 for the following entities: Loomis Czech Republic and Loomis Belgium.

Acquisitions January – June 2018

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 around SEK 171 million. The acquired operations are reported in Segment Europe and are 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 marginal negative impact on Loomis' earnings per share for 2018.

In January and February Loomis made two small acquisitions, one in Segment International and one in Segment Europe. The total enterprise value for both acquisitions was around SEK 23 million. The acquisitions are not expected to have any material 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 (FX) but also offers physical gold for investment purposes. The FX services include wholesale purchase and sale of bank notes to banks and currency exchange offices, currency purchase and sale to bank branches as well as secure transportation of bank notes to and from bank branches in France and other French-speaking regions. The company's head office is in Paris, France and there are branches

in Lyon, Marseille and Nice. The enterprise value 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 closing of the transaction. The closing date is expected to take place in the fourth quarter of 2018 and is 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 closing of the transaction. The closing took place on June 27, 2018 and USD 22 million of the purchase price was paid on closing. The acquisition is expected to have a marginal positive impact on Loomis' earnings per share for 2018.

Other events and number of full-time employees

Significant events during the period

The Annual General Meeting on May 3, 2018 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 to participants in the form of Class B shares in Loomis AB allotted 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. 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, it is proposed that Loomis AB enters into a share swap agreement with a third party under which the third party will acquire the Loomis shares in its own name and transfer them to the participants. 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.

Other events during the period

Kristoffer Wadman took up the position of Chief Innovation Officer at the beginning of June. In February this year Loomis announced that Anders Haker, the current CFO, will take on a new role as Chief Investor Relations Officer in the third quarter this year and that Kristian Ackeby will take over as CFO in the third quarter. Kristoffer Wadman has joined and Kristian Ackeby will join Group Management.

Other events after the balance sheet date

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

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

Number of full-time employees

The average number of full-time employees for the rolling twelve-month period was around 23,600 (22,800 for the full year 2017). Of these, around 13,100 employees work within Segment Europe, around 10,100 within Segment USA and around 400 are employed within Segment International.

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 pro-cesses 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 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
• 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 six 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 con-sumption 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 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 vacation periods and in connection with public holidays and holiday periods.

Parent Company

SUMMARY STATEMENT OF INCOME

	2018	2017	2017
SEK m	Jan–Jun	Jan–Jun	Full year
Revenue	270	254	512
Operating income (EBIT)	159	161	324
Income after financial items	288	567	1,012
Net income for the year	295	504	880

SUMMARY BALANCE SHEET

	2018	2017	2017
SEK m	Jun 30	Jun 30	Dec 31
Fixed assets	10,122	9,461	9,791
Current assets	1,630	1,000	973
Total assets	11,751	10,461	10,765
Shareholders' equity1)	4,773	4,782	5,158
Liabilities	6,978	5,679	5,607
Total shareholders' equity and liabilities	11,751	10,461	10,765

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

The Group's 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 period was 21 (17).

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

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 12 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 1–31, and pages 1–15 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 to 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 SafePoint 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 Safe-Point 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 the IFRS 16 implementation is ongoing. Loomis will implement the new standard from January 1, 2019 and the modified retrospective method will be used.

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.

Outlook for 2018

The Company is not providing any forecast information for 2018.

The undersigned confirm that this interim report provides a fair and true 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 25, 2018

Alf Göransson Chairman of the Board

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

	2018	2017	2018	2017	2017	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Revenue, continuing operations	4,603	4,222	8,876	8,385	16,824	16,485	17,315
Revenue, acquisitions	206	124	418	240	404	315	582
Total revenue	4,808	4,346	9,294	8,625	17,228	16,800	17,897
Production expenses	–3,584	–3,176	–6,907	–6,349	–12,533	–12,493	–13,091
Gross income	1,225	1,169	2,387	2,276	4,695	4,307	4,806
Selling and administration expenses	–716	–652	–1,406	–1,297	–2,602	–2,417	–2,711
Operating income (EBITA)1)	509	517	981	979	2,093	1,890	2,095
Amortization of acquisition-related intangible assets	–22	–14	–39	–29	–55	–62	–65
Acquisition-related costs and revenue	–10	–14	–152)	–292)	–47	–56	–33
Items affecting comparability	983)	–	983)	–	–	814)	98
Operating income (EBIT)	575	489	1,025	921	1,992	1,852	2,095
Net financial items	–23	–26	–48	–53	–109	–117	–104
Income before taxes	553	463	977	868	1,882	1,735	1,991
Income tax	–141	–131	–248	–247	–454	–477	–456
Net income for the period5)	411	332	729	622	1,428	1,258	1,536
KEY RATIOS
Real growth, %	7	2	8	2	3	5	6
Organic growth, %	3	2	3	2	2	5	3
Operating margin (EBITA), %	10.6	11.9	10.6	11.3	12.1	11.2	11.7
Tax rate, %	26	28	25	28	24	27	23
Earnings per share before dilution, SEK6)	5.47	4.41	9.69	8.26	18.99	16.73	20.42
Earnings per share after dilution, SEK	5.47	4.41	9.69	8.26	18.99	16.73	20.42

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 2018, refer to transaction costs of SEK –11 million (–4), restructuring costs of SEK –3 million (–13) and integration costs of SEK –1 million (–12). Transaction costs for the period January–June 2018 amount to SEK –2 million for acquisitions in progress, to SEK –6 million for completed acquisitions and to SEK –3 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.

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

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

	2018	2017	2018	2017	2017	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Net income for the period	411	332	729	622	1,428	1,258	1,536
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	–26	30	56	2	17	–183	70
Items that may be reclassified to the statement of income
Exchange rate differences	505	–315	764	–404	–631	402	536
Hedging of net investments, net of tax	–98	87	–138	114	179	–159	–75
Effect from IFRS 15	–	–	–15	–	–	–	–15
Other comprehensive income and expenses for the period, net after tax	381	–198	666	–288	–435	61	519
Total comprehensive income for the period1)	792	134	1,396	333	993	1,319	2,055

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

BALANCE SHEET

	2018	2017	2017	2016
SEK m	Jun 30	Jun 30	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	6,254	5,469	5,615	5,626
Acquisition-related intangible assets	448	249	349	261
Other intangible assets	103	109	102	114
Tangible fixed assets	5,360	4,575	4,689	4,709
Non-interest-bearing financial fixed assets	434	446	459	454
Interest-bearing financial fixed assets1)	444	81	96	80
Total fixed assets	13,043	10,929	11,311	11,245
Current assets
Non-interest-bearing current assets2)	3,430	3,077	2,952	2,907
Interest-bearing financial current assets1)	20	96	62	54
Liquid funds	912	492	839	663
Total current assets	4,362	3,665	3,852	3,624
TOTAL ASSETS	17,405	14,594	15,164	14,869
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity3)	7,736	6,361	7,037	6,647
Long-term liabilities
Interest-bearing long-term liabilities	5,796	4,280	4,745	3,972
Non-interest-bearing provisions	748	710	630	729
Total long-term liabilities	6,544	4,990	5,376	4,701
Current liabilities
Tax liabilities	156	135	180	122
Non-interest-bearing current liabilities	2,805	2,502	2,496	2,645
Interest-bearing current liabilities	164	606	75	754
Total current liabilities	3,125	3,243	2,751	3,521
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	17,405	14,594	15,164	14,869
KEY RATIOS
Return of shareholders' equity, %	20	21	20	19
Return of capital employed, %	17	19	19	18
Equity ratio, %	44	44	46	45
Net debt	4,584	4,217	3,823	3,929
Net debt/EBITDA	1.42	1.32	1.19	1.31

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 SHAREHOLDERS' EQUITY

	2018	2017	2017	2016	R12
SEK m	Jan–Jun	Jan–Jun	Full year	Full year
Opening balance	7,037	6,647	6,647	5,843	6,361
Actuarial gains and losses after tax	56	2	17	–183	70
Exchange rate differences	764	–404	–631	402	536
Hedging of net investments, net of tax	–138	114	179	–159	–72
Effect from IFRS 15	–15	–	–	–	–15
Total other comprehensive income	666	–288	–435	61	519
Net income for the period	729	622	1,428	1,258	1,536
Total comprehensive income	1,396	333	993	1,319	2,055
Dividend paid to Parent Company's shareholders	–677	–602	–602	–527	–677
Share-related remuneration	–20	–18	–1	11	–3
Closing balance	7,736	6,361	7,037	6,647	7,736

NUMBER OF SHARES AS OF JUNE 30, 2018

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

CONTINGENT LIABILITIES

	2018	2017	2017	2016
SEK m	Jun 30	Jun 30	Dec 31	Dec 31
Securities and guarantees	3,625	3,224	3,235	3,262
Other contingent liabilities	41	11	11	14
Total contingent liabilities	3,666	3,235	3,246	3,276

CONTINGENT LIABILITIES, PARENT COMPANY

	2018	2017	2017	2016
SEK m	Jun 30	Jun 30	Dec 31	Dec 31
Guaranteed committed bank facilities	1,514	1,244	1,270	1,802
Other contingent liabilities	1,981	1,824	1,816	1,298
Total contingent liabilities	3,495	3,068	3,085	3,100

STATEMENT OF CASH FLOWS

	2018	2017	2018	2017	2017	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Income before taxes	553	463	977	868	1,882	1,735	1,991
Items not affecting cash flow, items affecting compa rability and acquisition-related costs1)	233	299	539	599	1,143	1,117	1,083
Income tax paid	–226	–218	–302	–283	–403	–326	–423
Change in accounts receivable	–108	–85	–37	–50	–165	–53	–151
Change in other operating capital employed and other items	65	–1	–137	–227	–145	192	–55
Cash flow from operations	515	458	1,040	907	2,313	2,665	2,446
Cash flow from investment activities	–500	–278	–1,019	–561	–1,619	–1,175	–2,077
Cash flow from financing activities	18	–479	24	–497	–487	–1,510	34
Cash flow for the period	32	–299	45	–151	207	–20	403
Liquid funds at beginning of the period	867	806	839	663	663	654	492
Translation differences in liquid funds	13	–15	28	–20	–31	28	16
Liquid funds at end of period	912	492	912	492	839	663	912

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

STATEMENT OF CASH FLOWS, ADDITIONAL INFORMATION

	2018	2017	2018	2017	2017	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Operating income (EBITA)	509	517	981	979	2,093	1,890	2,095
Depreciation	300	285	585	578	1,124	1,105	1,132
Change in accounts receivable	–108	–85	–37	–50	–165	–53	–151
Change in other operating capital employed and other items	65	–1	–137	–227	–145	192	–55
Cash flow from operating activities before investments	765	715	1,393	1,279	2,908	3,134	3,021
Investments in fixed assets, net	–310	–278	–666	–527	–1,152	–1,120	–1,291
Cash flow from operating activities	456	437	726	752	1,756	2,013	1,730
Financial items paid and received	–14	–24	–30	–43	–111	–117	–98
Income tax paid	–226	–218	–302	–283	–403	–326	–423
Free cash flow	215	196	394	426	1,242	1,570	1,209
Cash flow effect of items affecting comparability	0	0	0	0	–1	138	–1
Acquisition of operations1)	–191	–	–353	–34	–467	–201	–786
Acquisition-related costs and revenue, paid and received2)	–9	–16	–20	–46	–80	–17	–54
Dividend paid	–677	–602	–677	–602	–602	–527	–677
Change in interest-bearing net debt excluding liquid funds	–203	–201	–246	–182	–117	–168	–181
Change in commercial papers issued and other long-term borrowing	898	324	947	286	231	–816	892
Cash flow for the period	32	–299	45	–151	207	–20	403
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	90	85	74	77	84	107	83
Investments in relation to depreciation	1.0	1.0	1.1	0.9	1.0	1.0	1.1
Investments as a % of total revenue	6.4	6.4	7.2	6.1	6.7	6.7	7.2

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.

SEGMENT OVERVIEW REVENUE

January – June 2018 (SEK m)	Europe	USA	International	Other	Eliminations	Total
Cash in transit (CIT)	3,190	2,657	–	–	–	5,847
Cash management services (CMS)	1,441	1,358	–	–	–	2,799
International	–	–	453	–	–	453
Other	147	48	–	–	–	195
Revenue, internal	20	3	8	–	–31	–
Total revenue	4,798	4,066	461	–	–31	9,294
Timing of revenue recognition, external
At a point in time	480	40	355	–	–	875
Over time	4,299	4,022	98	–	–	8,419

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	International	Other1)	Eliminations	Total
SEK m	Jan – Jun 2018	Jan – Jun 2018	Jan – Jun 2018	Jan – Jun 2018	Jan – Jun 2018	Jan – Jun 2018
Revenue, continuing operations	4,390	4,066	451	–	–31	8,876
Revenue, acquisitions	408	–	9	–	–	418
Total revenue	4,798	4,066	461	–	–31	9,294
Production expenses	–3,645	–2,935	–373	–	46	–6,907
Gross income	1,153	1,132	87	–	16	2,387
Selling and administrative expenses	–665	–583	–54	–89	–16	–1,406
Operating income (EBITA)	488	549	34	–89	–	981
Amortization of acquisition-related intangible assets	–25	–7	–8	–	–	–39
Acquisition-related costs	–7	0	–	–9	–	–15
Items affecting comparability	982)	–	–	–	–	98
Operating income (EBIT)	555	542	26	–98	–	1,025

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.

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, ADDITIONAL INFORMATION

	2018	2017	2018	2017	2017	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Europe
Revenue	2,459	2,198	4,798	4,303	8,728	8,384	9,222
Real growth, %	8	7	8	6	5	3	5
Organic growth, %	–1	1	–1	1	0	0	–1
Operating income (EBITA)	263	287	488	527	1,175	1,119	1,135
Operating margin (EBITA), %	10.7	13.1	10.2	12.3	13.5	13.4	12.3
USA
Revenue	2,126	1,945	4,066	3,911	7,688	7,325	7,843
Real growth, %	7	5	8	5	6	12	7
Organic growth, %	7	5	8	5	6	11	7
Operating income (EBITA)	277	252	549	500	1,009	842	1,058
Operating margin (EBITA), %	13.1	13.0	13.5	12.8	13.1	11.5	13.5
International1)
Revenue	239	221	461	445	878	1,149	894
Real growth, %	5	–38	4	–35	–24	–17	–1
Organic growth, %	3	–8	1	–3	–6	0	–3
Operating income (EBITA)	17	17	34	27	61	77	68
Operating margin (EBITA), %	6.9	7.5	7.3	6.0	6.9	6.7	7.6
Other 2)
Revenue	–	–	–	–	–	–	–
Operating income (EBITA)	–49	–39	–89	–75	–152	–149	–166
Eliminations
Revenue	–14	–18	–31	–35	–66	–58	–62
Operating income (EBITA)	–	–	–	–	–	–	–
Group total
Revenue	4,808	4,346	9,294	8,625	17,228	16,800	17,897
Real growth, %	7	2	8	2	3	5	6
Organic growth, %	3	2	3	2	2	5	3
Operating income (EBITA)	509	517	981	979	2,093	1,890	2,095
Operating margin (EBITA), %	10.6	11.9	10.6	11.3	12.1	11.2	11.7

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

	2018	2017	2018	2017	2017	2016	R12
SEK m	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Previous year's revenue	4,346	4,147	8,625	8,179	16,800	16,097	17,246
Organic growth1)	118	80	253	196	397	731	454
Acquired revenue	206	124	418	240	404	315	582
Divestments	–	–124	–	–239	–239	–257	–
Real growth	324	80	671	197	562	789	1,036
Change in foreign currency	138	119	–2	249	–134	–86	–385
Revenue for the period	4,808	4,346	9,294	8,625	17,228	16,800	17,897

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

KEY RATIOS

	2018	2017	2018	2017	2017	2016	R12
	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Full year	Full year
Real growth, %	7	2	8	2	3	5	6
Organic growth, %	3	2	3	2	2	5	3
Total growth, %	11	5	8	5	3	4	4
Gross margin, %	25.5	26.9	25.7	26.4	27.3	25.6	26.9
Selling and administration expenses in % of total revenue	–14.9	–15.0	–15.1	–15.0	–15.1	–14.4	–15.1
Operating margin (EBITA), %	10.6	11.9	10.6	11.3	12.1	11.2	11.7
Tax rate, %	26	28	25	28	24	27	23
Net margin, %	8.6	7.6	7.8	7.2	8.3	7.5	8.6
Return of shareholders' equity, %	20	21	20	21	20	19	20
Return of capital employed, %	17	19	17	19	19	18	17
Equity ratio, %	44	44	44	44	46	45	44
Net debt (SEK m)	4,584	4,217	4,584	4,217	3,823	3,929	4,584
Net debt/EBITDA	1.42	1.32	1.42	1.32	1.19	1.31	1.42
Cash flow from operating activities as % of operating income (EBITA)	90	85	74	77	84	107	83
Investments in relation to depreciation	1.0	1.0	1.1	0.9	1.0	1.0	1.1
Investments as a % of total revenue	6.4	6.4	7.2	6.1	6.7	6.7	7.2
Earnings per share before dilution, SEK1)	5.47	4.41	9.69	8.26	18.99	16.73	20.42
Earnings per share after dilution, SEK	5.47	4.41	9.69	8.26	18.99	16.73	20.42
Shareholders' equity per share after dilution, SEK	102.84	84.56	102.84	84.56	93.55	88.36	102.84
Cash flow from operating activities per share after dilution, SEK	6.85	6.09	13.82	12.06	30.75	35.43	32.51
Dividend per share, SEK	9.00	8.00	9.00	8.00	8.00	7.00	9.00
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

		2018	2017				2016
SEK m	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun
Revenue, continuing operations	4,603	4,274	4,285	4,154	4,222	4,163	4,305	4,126	4,088
Revenue, acquisitions	206	212	73	92	124	116	115	75	59
Total revenue	4,808	4,486	4,358	4,246	4,346	4,279	4,421	4,200	4,147
Production expenses	–3,584	–3,323	–3,150	–3,034	–3,176	–3,172	–3,210	–3,075	–3,121
Gross income	1,225	1,162	1,208	1,211	1,169	1,106	1,211	1,126	1,026
Selling and administration expenses	–716	–690	–664	–641	–652	–645	–668	–598	–582
Operating income (EBITA)	509	472	544	570	517	462	543	528	444
Amortization of acquisition-related intangible assets	–22	–17	–15	–12	–14	–15	–15	–15	–16
Acquisition-related costs and revenue1)	–10	–6	–8	–10	–14	–15	–15	–32	–3
Items affecting comparability	982)	–	–	–	–	–	–	813)	–
Operating income (EBIT)	575	450	522	549	489	432	512	561	424
Net financial items	–23	–25	–26	–30	–26	–27	–35	–28	–26
Income before taxes	553	425	496	518	463	405	477	533	398
Income tax	–141	–107	–60	–147	–131	–115	–135	–141	–112
Net income for the period	411	318	436	371	332	290	342	391	286
KEY RATIOS
Real growth, %	7	8	3	5	2	3	4	2	8
Organic growth, %	3	3	2	3	2	3	4	3	6
Operating margin (EBITA), %	10.6	10.5	12.5	13.4	11.9	10.8	12.3	12.6	10.7
Tax rate, %	26	25	12	28	28	28	28	27	28
Earnings per share after dilution (SEK)	5.47	4.22	5.79	4.93	4.41	3.85	4.55	5.20	3.81

1) Acquisition-related costs and revenue for the period January–June 2018, refer to transaction costs of SEK –11 million (–4), restructuring costs of SEK –3 million (–13) and integration costs of SEK –1 million (–12). Transaction costs for the period January–June 2018 amount to SEK –2 million for acquisitions in progress, to SEK –6 million for completed acquisitions and to SEK –3 million for discontinued acquisitions.

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.

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

BALANCE SHEET – BY QUARTER

	2018		2017				2016
SEK m	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
ASSETS
Fixed assets
Goodwill	6,254	5,838	5,615	5,420	5,469	5,647	5,626	5,474	5,459
Acquisition-related intangible assets	448	405	349	300	249	267	261	282	318
Other intangible assets	103	104	102	97	109	109	114	115	118
Tangible fixed assets	5,360	5,121	4,689	4,495	4,575	4,693	4,709	4,582	4,294
Non interest-bearing financial fixed assets	434	476	459	437	446	467	454	653	559
Interest-bearing financial fixed assets	444	115	96	87	81	81	80	96	88
Total fixed assets	13,043	12,059	11,311	10,836	10,929	11,263	11,245	11,202	10,836
Current assets
Non interest-bearing current assets	3,430	3,174	2,952	3,024	3,077	3,049	2,907	2,954	2,987
Interest-bearing financial current assets	20	14	62	20	96	22	54	26	32
Liquid funds	912	867	839	872	492	806	663	507	700
Total current assets	4,362	4,056	3,852	3,916	3,665	3,877	3,624	3,487	3,719
TOTAL ASSETS	17,405	16,115	15,164	14,752	14,594	15,140	14,869	14,690	14,555
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	7,736	7,647	7,037	6,576	6,361	6,820	6,647	5,926	5,633
Long-term liabilities
Interest-bearing long-term liabilities	5,796	4,764	4,745	4,196	4,280	4,042	3,972	5,141	5,499
Non interest-bearing provisions	748	767	630	714	710	738	729	768	752
Total long-term liabilities	6,544	5,530	5,376	4,909	4,990	4,781	4,701	5,910	6,251
Current liabilities
Tax liabilities	156	195	180	122	135	178	122	117	136
Non interest-bearing current liabilities	2,805	2,563	2,496	2,487	2,502	2,564	2,645	2,464	2,397
Interest-bearing current liabilities	164	179	75	657	606	796	754	273	138
Total current liabilities	3,125	2,937	2,751	3,266	3,243	3,539	3,521	2,854	2,672
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	17,405	16,115	15,164	14,752	14,594	15,140	14,869	14,690	14,555
KEY RATIOS
Return of shareholders' equity, %	20	19	20	20	21	19	19	21	20
Return of capital employed, %	17	18	19	20	19	18	18	17	17
Equity ratio, %	44	47	46	45	44	45	45	40	39
Net debt	4,584	3,947	3,823	3,873	4,217	3,930	3,929	4,784	4,817
Net debt/EBITDA	1.42	1.23	1.19	1.20	1.32	1.27	1.31	1.65	1.68

CASH FLOW – BY QUARTER

		2018	2017				2016
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)	509	472	544	570	517	462	543	528	444
Depreciation	300	285	273	273	285	293	286	278	269
Change in accounts receivable	–108	71	15	–129	–85	35	78	–74	–43
Change in other operating capital employed and other items	65	–202	39	43	–1	–226	261	87	164
Cash flow from operating activities before investments	765	628	871	757	715	564	1,168	818	834
Investments in fixed assets, net	–310	–357	–389	–236	–278	–249	–301	–282	–321
Cash flow from operating activities	456	271	482	522	437	315	867	536	513
Financial items paid and received	–14	–16	–41	–27	–24	–20	–49	–23	–24
Income tax paid	–226	–76	–53	–67	–218	–65	–57	–99	–118
Free cash flow	215	179	388	427	196	230	762	414	372
Cash flow effect of items affecting comparability	0	0	0	0	0	0	1	138	0
Acquisition of operations1)	–191	–162	–254	–179	–	–34	–23	–175	–2
Acquisition-related costs / revenue, paid /received2)	–9	–10	–16	–18	–16	–30	–11	4	–3
Dividend paid	–677	–	–	–	–602	–	–	–	–527
Change in interest-bearing net debt excl. liquid funds	–203	–42	–126	191	–201	19	–189	–55	33
Change in commercial papers issued and other long-term borrowing	898	49	–25	–30	324	–38	–394	–530	158
Cash flow for the period	32	12	–34	392	–299	147	146	–204	31
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)	90	57	89	91	85	68	160	102	116
Investments in relation to depreciation	1.0	1.3	1.4	0.9	1.0	0.9	1.0	1.0	1.2
Investments as a % of total revenue	6.4	8.0	8.9	5.6	6.4	5.8	6.8	6.7	7.7

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.

SEGMENT OVERVIEW STATEMENT OF INCOME – BY QUARTER

		2018	2017		2016
SEK m	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun
Europe
Revenue	2,459	2,340	2,225	2,199	2,198	2,105	2,214	2,162	2,035
Real growth, %	8	9	2	4	7	6	4	2	2
Organic growth, %	–1	–1	–1	0	1	1	0	0	1
Operating income (EBITA)	263	224	297	350	287	240	324	335	262
Operating margin (EBITA), %	10.7	9.6	13.4	15.9	13.1	11.4	14.6	15.5	12.9
USA
Revenue	2,126	1,940	1,925	1,852	1,945	1,966	1,968	1,826	1,774
Real growth, %	7	8	7	8	5	6	9	10	14
Organic growth, %	7	8	7	8	5	6	8	9	13
Operating income (EBITA)	277	272	267	242	252	248	239	208	199
Operating margin (EBITA), %	13.1	14.0	13.9	13.1	13.0	12.6	12.1	11.4	11.2
International2)
Revenue	239	222	223	210	221	224	252	231	348
Real growth, %	5	2	–8	–7	–38	–32	–30	–38	6
Organic growth, %	3	0	–8	–7	–8	2	6	–2	6
Operating income (EBITA)	17	17	19	15	17	10	20	22	19
Operating margin (EBITA), %	6.9	7.7	8.6	7.1	7.5	4.6	8.1	9.3	5.5
Other 3)
Revenue	–	–	–	–	–	–	–	–	–
Operating income (EBITA)	–49	–41	–40	–37	–39	–37	–40	–36	–36
Eliminations
Revenue	–14	–16	–15	–16	–18	–17	–13	–19	–10
Operating income (EBITA)	–	–	–	–	–	–	–	–	–
Group total
Revenue	4,808	4,486	4,358	4,246	4,346	4,279	4,421	4,200	4,147
Real growth, %	7	8	3	5	2	3	4	2	8
Organic growth, %	3	3	2	3	2	3	4	3	6
Operating income (EBITA)	509	472	544	570	517	462	543	528	444
Operating margin (EBITA), %	10.6	10.5	12.5	13.4	11.9	10.8	12.3	12.6	10.7

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

	2018		2017				2016
SEK m	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
Europe
Assets	7,816	7,209	6,550	6,171	6,019	5,898	5,701	5,780	5,330
Liabilities	2,337	2,267	2,259	2,297	2,266	2,337	2,365	2,540	2,159
USA
Assets	7,191	6,506	6,301	6,266	6,375	6,652	6,719	6,482	6,371
Liabilities	879	696	700	573	607	568	733	574	622
International1)
Assets	1,303	1,271	1,167	1,182	1,247	1,278	1,241	1,242	1,460
Liabilities	252	234	220	220	237	253	216	236	398
Other 2)
Assets	1,095	1,129	1,146	1,133	953	1,312	1,208	1,186	1,394
Liabilities	6,201	5,271	4,948	5,086	5,123	5,162	4,908	5,414	5,743
Shareholder's equity	7,736	7,647	7,037	6,576	6,361	6,820	6,647	5,926	5,633
Group total
Assets	17,405	16,115	15,164	14,752	14,594	15,140	14,869	14,690	14,555
Liabilities	9,669	8,468	8,127	8,176	8,233	8,320	8,222	8,764	8,922
Shareholder's equity	7,736	7,647	7,037	6,576	6,361	6,820	6,647	5,926	5,633

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

	2018			2017				2016
SEK m	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun
Cash flow
Operations	515	525	761	645	458	449	1,051	692	690
Investment activities	–500	–519	–643	–414	–278	–283	–323	–311	–324
Financing activities	18	7	–151	161	–479	–18	–582	–585	–335
Cash flow for the period	32	12	–34	392	–299	147	146	–204	31
Capital employed and financing
Operating capital employed	5,583	5,374	4,866	4,708	4,748	4,799	4,615	4,806	4,526
Goodwill	6,254	5,838	5,615	5,420	5,469	5,647	5,626	5,474	5,459
Acquisition-related intangible assets	448	405	349	300	249	267	261	282	318
Other capital employed	35	–23	30	21	112	37	74	148	146
Capital employed	12,320	11,594	10,860	10,450	10,578	10,750	10,576	10,710	10,450
Net debt	4,584	3,947	3,823	3,873	4,217	3,930	3,929	4,784	4,817
Shareholders' equity	7,736	7,647	7,037	6,576	6,361	6,820	6,647	5,926	5,633
Key ratios
Return of shareholders' equity, %	20	19	20	20	21	19	19	21	20
Return of capital employed, %	17	18	19	20	19	18	18	17	17
Equity ratio, %	44	47	46	45	44	45	45	40	39
Net debt/EBITDA	1.42	1.23	1.19	1.20	1.32	1.27	1.31	1.65	1.68

KEY RATIOS – BY QUARTER

		2018	2017			2016
	Apr–Jun	Jan–Mar	Dec 31	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun
Real growth, %	7	8	3	5	2	3	4	2	8
Organic growth, %	3	3	2	3	2	3	4	3	6
Total growth, %	11	5	–1	1	5	6	7	1	5
Gross margin, %	25.5	25.9	27.7	28.5	26.9	25.9	27.4	26.8	24.7
Selling and administration expenses in % of total revenue	–14.9	–15.4	–15.2	–15.1	–15.0	–15.1	–15.1	–14.2	–14.0
Operating margin (EBITA), %	10.6	10.5	12.5	13.4	11.9	10.8	12.3	12.6	10.7
Tax rate, %	26	25	12	28	28	28	28	27	28
Net margin, %	8.6	7.1	10.0	8.7	7.6	6.8	7.7	9.3	6.9
Return of shareholders' equity, %	20	19	20	20	21	19	19	21	20
Return of capital employed, %	17	18	19	20	19	18	18	17	17
Equity ratio, %	44	47	46	45	44	45	45	40	39
Net debt (SEK m)	4,584	3,947	3,823	3,873	4,217	3,930	3,929	4,784	4,817
Net debt/EBITDA	1.42	1.23	1.19	1.20	1.32	1.27	1.31	1.65	1.68
Cash flow from operating activities as % of operating income (EBITA)	90	57	89	91	85	68	160	102	116
Investments in relation to depreciation	1.0	1.3	1.4	0.9	1.0	0.9	1.0	1.0	1.2
Investments as a % of total revenue	6.4	8.0	8.9	5.6	6.4	5.8	6.8	6.7	7.7
Earnings per share before dilution, SEK1)	5.47	4.22	5.79	4.93	4.41	3.85	4.55	5.20	3.81
Earnings per share after dilution, SEK	5.47	4.22	5.79	4.93	4.41	3.85	4.55	5.20	3.81
Shareholders' equity per share after dilution, SEK	102.84	101.66	93.55	87.42	84.56	90.66	88.36	78.77	74.88
Cash flow from operations per share after dilu tion, SEK	6.85	6.98	10.11	8.58	6.09	5.97	13.97	9.20	9.17
Dividend per share, SEK	9.00	–	–	–	8.00	–	–	–	7.00
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 16 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

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 2018: 411/75,226,032 x 1,000,000 = 5.47 Apr–Jun 2017: 332/75,226,032 x 1,000,000 = 4.41 Jan–Jun 2018: 729/75,226,032 x 1,000,000 = 9.69 Jan–Jun 2017: 622/75,226,032 x 1,000,000 = 8.26

Earnings per share after dilution

Calculation for:

Apr–Jun 2018: 411/75,226,032 x 1,000,000 = 5.47 Apr–Jun 2017: 332/75,226,032 x 1,000,000 = 4.41 Jan–Jun 2018: 729/75,226,032 x 1,000,000 = 9.69 Jan–Jun 2017: 622/75,226,032 x 1,000,000 = 8.26 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 2017 up to and including June 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

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

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 July 26, 2018 at 09:00 a.m. (CEST).

To follow the conference call via telephone and to participate in the question and answer session, please call: UK: 08445718892 USA: 1 631 510 7495 Sweden: +46 8 506 921 80

Provide conference ID number: Loomis, 8591755.

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

Interim report January – September November 2, 2018 Full-year report January – December January 30, 2019

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 3.00 p.m. (CEST) on July 25, 2018.

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