Loomis — Interim / Quarterly Report 2020

May 6, 2020

Interim Report January – March 2020

January – March 2020

• Revenue SEK 5,329 million (5,006). Real growth 2 percent (5) of which organic growth 0 percent (2).
• Operating income (EBITA)1) SEK 589 million (564) and operating margin 11.0 percent (11.3).
• Income before tax SEK 490 million (509) and income after tax SEK 365 million (379).
• Earnings per share before and after dilution SEK 4.85 (5.04).
• Cash flow from operating activities2) SEK 768 million (30), equivalent to 134 percent (5) of operating income (EBITA)2).
• As previously communicated the Board of Directors has decided to withdraw the dividend proposal for 2019 of SEK 11 per share and intends for the final dividend decision to be made at an extraordinary shareholders' meeting when it is possible to assess the consequences of the coronavirus pandemic.
• The ongoing pandemic had an overall limited negative impact on revenue and operating income during the quarter.

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability. 2) Cash flow from operating activities excluding the effects of IFRS 16. The adoption of IFRS 16 has therefore had no net impact on cash flow from operating activities according to Loomis's definition. See also under Definitions on page 23.

KEY RATIOS

	2020	2019		2019
SEK m	Jan–Mar	Jan–Mar	Change (%)	Full year
Revenue	5,329	5,006	6	21,044
Of which:
Organic growth	0	88	0	443
Acquisitions and divestments	90	115	2	535
Exchange rate effects	233	317	5	898
Total growth	323	520	6	1,876
Operating income (EBITA)1)	589	564	4	2,601
Operating margin (EBITA), %1)	11.0	11.3		12.4
Operating income (EBITA)	544	558	–3	2,422
Earnings before tax	490	509	–4	2,210
Net income for the period	365	379	–4	1,646
Earnings per share, SEK1)	4.85	5.04	–4	21.88
Tax rate, %	25	25		26
Cash flow from operating activities2)	768	30		2,057
Cash flow from operating activities as % of operating income (EBITA)2)	134	5		81

1) For information on the effects of IFRS 16, see Note 8.

2) Cash flow from operating activities excluding the effects of IFRS 16. The adoption of IFRS 16 has therefore had no net impact on cash flow from operating activities according to Loomis's definition. See also under Definitions on page 23.

Comments by the President and CEO

Similar to the world around us, Loomis's current situation is of course very much characterized by the ongoing coronavirus pandemic. We have a very important function to fill when society faces serious challenges. The payment system is dependent on the cash market working efficiently and we are doing our utmost to ensure that we can continue supporting our customers with cash handling services. All of our branches in more than 20 markets are in operation. The safety of our employees is the top priority and we are carefully following the advice of local public health agencies. Routines are in place to minimize the risk of our employees contracting or spreading the virus at our workplaces. Accordingly, among other things, we have informed our employees about the importance of avoiding personal contact, keeping a safe distance from the nearest person, wearing gloves, frequent hand washing and staying at home if they have symptoms. No business travel is taking place. Meetings are instead being held remotely. During these difficult times our employees have shown fantastic loyalty and they deserve a lot of credit for Loomis's ability to continue providing our customers with high quality services.

False rumors have been spread saying that cash is a source of transfer of the virus. Several medical experts engaged by, among others, the European Central Bank (ECB) and Bundesbank, have spoken out and denied that the virus can be spread by cash. The WHO has also been clear that it has never communicated that cash presents a risk of spreading the virus.

During the first quarter of this year the

impact of the pandemic on Loomis was limited. It was not until the latter part of March that the effects became visible. During the first quarter Loomis was negatively affected to a slightly greater extent in Europe than in the USA. This is in line with the spread of the pandemic in general. In April the negative effects of the pandemic on the Group's revenues increased and they were around 25 percent lower compared with April 2019. The revenues declined to a higher degree in Europe than in USA.

At the end of March the Board of Directors decided to withdraw the proposal for the 2019 dividend of SEK 11 per share. The Board also announced that the final dividend decision is expected to be made at an extraordinary shareholders' meeting later in the year when it is possible to better assess the consequences of the coronavirus pandemic.

Retail volumes have, of course, been negatively affected by the actions the authorities in our markets have decided to take, but at the same time we saw in March a temporary increase in revenue from grocery retail and ATM services. We are also taking a number of steps to make Loomis more financially resilient. All capital expenditures that can be postponed will have to wait and in several of our markets we have unfortunately been forced to furlough or give notice of termination to employees. A large percentage of our costs are variable and our ambition is to offset the reduced volumes as far as possible by quickly reducing expenses. I want to emphasis that Loomis has a strong financial position and, in addition, we have also increased our liquidity buffer by signing a new loan of SEK 1,200 million.

In many of our markets we have in a short space of time managed to advance our positions. There are many good examples. In Spain, for example, we are offering new solutions to our financial customers and this has already had a positive impact on our revenue. In the USA we have signed new customer contracts when other providers have found it difficult to deliver services. Within our international business we are also seeing a higher level of interest as

Loomis' financial targets

Revenue SEK 24 billion 2021

Annual dividend, %

40–60% of the Group's net income

* The Board of Directors has decided to withdraw the proposal for the 2019 dividend to the 2020 AGM. The Board intends to convene an extraordinary shareholders' meeting for the purpose of deciding on the dividend when the business climate and market conditions will hopefully have stabilized and it will be possible to assess the consequences of the coronavirus pandemic.

Operating margin (EBITA), %

precious metal transportation has increased since the pandemic took hold. Interest in gold as an investment normally increases when stock market values go down. Our swift actions have opened up new opportunities and these will to some extent compensate for the generally lower volumes in retail business.

We started the quarter by signing two attractive acquisitions. In January an agreement was signed to purchase Nokas's Swedish cash handing operations and in February we announced that we had reached an agreement to acquire Automatia in Finland. These operations provide a good complement to Loomis's business. In Sweden we are securing higher volumes and we will be better able to increase our service offering in the long term. The acquisition of Automatia in Finland is an exciting investment in ATM services. The acquisition expands our knowledge base and the company provides us with experience in operation and maintenance of ATMs as well as digital payment systems. Both acquisitions are in line with our strategic plan.

In the first quarter the Group's real growth amounted to 2 percent (5), of which organic growth made up 0 percent (2). The positive growth that our European operations generated in 2019 continued in the first two months of the year, but slowed down in March when the pandemic began to grow. The effects of the pandemic on our US operations were not noticeable until the end of March and this resulted in positive organic growth in the USA for the quarter as a whole. Revenue from SafePoint in the USA continued to develop well, rising by around 12 percent for the quarter.

One factor in the ability to deliver highquality services to our customers is our focus on profitability in the customer portfolio. We remain selective when we enter into new contracts and in the short term this may have a negative impact on organic growth. This is the case in all markets – both Europe and the USA.

The Group's operating margin (EBITA) amounted to 11.0 percent (11.3). The negative effects of the pandemic as a whole have lowered the operating margin.

In the USA a more profitable customer portfolio in combination with higher revenue from SafePoint, as well as efficiency improvement programs at the branches, are the main reasons for the continued strong earnings.

In Europe several countries are contributing with higher operating margins. Our French company, CPOR, had a successful quarter in which precious metal operations in particular contributed to the increased revenue. The integration in France of the operations we acquired in the summer of 2019 remained intense during the first two months of the year but is now proceeding at a slightly slower pace. Due to the impact of the pandemic we have determined that it will take slightly longer than planned to fully realize the synergies. We should reach the full effect in late 2020 or early 2021. Our German operations developed according to plan in January and February but was affected by the pandemic thereafter. Efficiency improvement programs continue in Germany and will be intensified when the negative effects of the pandemic on society are reduced.

I am convinced that Loomis will come out strong of this difficult situation, that we and the world around us find ourselves in. I would in particularly like to thank all of Loomis's employees for their very strong commitment to our company at this difficult time.

Patrik Andersson President and CEO

The segments

SEGMENT EUROPE – REVENUE AND OPERATING INCOME

	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Revenue	2,842	2,711	11,629	11,498
Real growth, %	2	6	7	8
Organic growth, %	–2	2	1	2
Operating income (EBITA)1)	276	293	1,413	1,429
Operating margin, %	9.7	10.8	12.1	12.4
Number of full-time employees	15,100	14,900	15,400	15,300

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

SEGMENT USA – REVENUE AND OPERATING INCOME

	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Revenue	2,507	2,310	9,835	9,639
Real growth, %	1	2	2	2
Organic growth, %	2	2	3	3
Operating income (EBITA)1)	371	321	1,422	1,372
Operating margin, %	14.8	13.9	14.5	14.2
Number of full-time employees	9,600	10,400	9,600	9,600

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

Revenue and earnings

January – March 2020

Group – revenue

Revenue for the quarter amounted to SEK 5,329 million (5,006). Real growth was 2 percent (5), of which organic growth made up 0 percent (2).

Segment Europe – revenue

Revenue for the quarter amounted to SEK 2,842 million (2,711). The real growth of 2 percent (6) was positively affected by revenue attributable to the acquisition of Prosegur Cash's French operations in July 2019. Organic growth was –2 percent (2). Operations developed well during the first two months of the year when several countries were still experiencing positive organic growth. In March the ongoing coronavirus pandemic negatively affected revenue and, accordingly, the organic growth for the quarter as a whole was negative.

Segment USA – revenue

Revenue amounted to SEK 2,507 million (2,310) and organic growth was 2 percent (2). The real growth amounted to 1 percent (2). During the quarter the increase in the number of SafePoint units installed was the main factor for the positive organic growth, but the growth rate for CIT and CMS in the USA was also positive compared with the corresponding period in 2019. Revenue for the quarter from SafePoint accounted for 17 percent (15) of the segment's total revenue. The change in fuel fees, which Loomis passes on to its customers, did not have a significant impact on organic growth for the quarter. The negative effects of the spread of the pandemic had less of an effect in the USA than in Europe as the virus started spreading slightly later in North America compared to in Europe.

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

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 589 million (564) and the operating margin was 11.0 percent (11.3). At comparable exchange rates the earnings development was around SEK –5 million.

Segment Europe – operating income (EBITA)

The operating income (EBITA) amounted to SEK 276 million (293) and the operating margin was 9.7 percent (10.8). In France, the precious metal operations of CPOR developed well during the quarter. Interest in gold and other precious metals as investments normally increases at times of uncertainty in the global economy. The quarter as a whole saw a lower operating margin as the impact on the pandemic on volumes in the two last weeks of March became evident. The acquisition in France, in July 2019, was dilutive to operating margin.

Segment USA– operating income (EBITA)

The operating income (EBITA) amounted to SEK 371 million (321) and the operating margin was 14.8 percent (13.9). Higher revenue from SafePoint, a more profitable customer portfolio, as well as efficiency improvement programs at the branches, were the main drivers for the continued strong operating performance.

Other

The operating income (EBIT) for the quarter amounted to SEK 544 million (558), which includes amortization of acquisitionrelated intangible assets of SEK –27 million (–25), acquisitionrelated costs of SEK –18 million (–15) and items affecting comparability of SEK 0 million (33). The item in 2019 of SEK 33 million is reported capital gains from the divestment of the art logistics and storage operations.

Income before tax of SEK 490 million (509) includes a net financial expense of SEK –54 million (–49).

The tax expense for the quarter amounted to SEK –125 million (–130), which represents a tax rate of 25 percent (25).

Earnings per share after dilution amounted to SEK 4.85 (5.04).

Cash flow and capital expenditures

January – March 2020

Cash flow from operating activities, excluding effects from IFRS 16, amounted to SEK 768 million (30), equivalent to 134 percent (5) of operating income (EBITA).

Net capital expenditures in fixed assets during the period amounted to SEK –386 million (–317), which can be compared to depreciation (excluding the IFRS 16 impact) of SEK 336 million (305). Capital expenditures were mainly invested in buildings, vehicles, machinery and equipment during the period. Investments in relation to depreciation for the period amounted to 1.2 (1.0). For the effects of IFRS 16, see Note 8.

Capital employed and financial position

Capital employed

Loomis's total capital employed as of March 31, 2020 amounted to SEK 17,796 million (16,924 as of December 31, 2019), which represents 83 percent (80) of revenue. Return on capital employed amounted to 15 percent (15).

Shareholders' equity and financing

Shareholders' equity increased in the first quarter by SEK 1,146 million to SEK 10,738 million as of March 31, 2020 (9,592 as of 31 December 2019). Net income for the period of SEK 365 million, translation differences of SEK 818 million and actuarial gains of SEK 110 million increased shareholders' equity by SEK 1,293 million. Share related compensations of SEK –34 million as well as hedging of net investments of SEK –114 million reduced shareholders' equity by SEK –148. The return on shareholders' equity was 15 percent (17 on December 31, 2019) and the equity ratio was 39 percent (36).

Net debt amounted to SEK 7,058 million as of March 31, 2020 (7,332 as of December 31, 2019) and the net debt/EBITDA amounted to 1.56 (1.65 as of December 31, 2019).

As of March 31, 2020, total long-term loan facilities amounted to approximately SEK 8.4 billion. Unutilized loan facilities amounted to approximately SEK 4.1 billion on March 31, 2020, of which 1.6 billion was used as back-up for outstanding commercial papers. Available cash and bank assets amounted to around SEK 2.2 billion (see Note 6). In addition to the above the Company signed a two-year credit agreement in April 2020 of SEK 1.2 billion. See page 8 for more information.

Other events

Significant events during the period

In March 2020 the Board of Directors of Loomis AB decided to withdraw the proposal of a dividend for 2019 of SEK 11 per share and at the same time announced that the intention is for the final dividend decision to be made at an extraordinary shareholders' meeting later in the year when it is possible to assess the consequences of the pandemic.

The Board of Directors has decided to propose that a resolution be passed at the 2020 Annual General Meeting regarding a new incentive scheme (Incentive Scheme 2020). Similar to Incentive Scheme 2019, the proposed incentive scheme (Incentive Scheme 2020) will involve two thirds of the variable remuneration being paid out in cash the year after it is earned. The remaining one third will be in the form of Class B shares in Loomis AB to be allotted to the participants at the beginning of 2022. The allotment of shares is contingent upon the employee still being employed by the Loomis Group on the last day of February 2022, 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 principle of performance measurement and other general principles already being applied in the existing Incentive Scheme will continue to apply. Loomis AB will not issue any new shares or similar instruments for this Incentive Scheme. To enable Loomis to allot the 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 shares in its own name and transfer them to the Incentive Scheme 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. To read the Board's full incentive scheme proposal, refer to the notice of the AGM on www.loomis.com.

Acquisitions during the period

In January 2020 Loomis AB announced that, through the wholly owned subsidiary Loomis Sverige AB (Loomis Sweden), it had entered into an agreement to acquire all of the shares in the limited liability company Nokas Värdehantering AB (Nokas Värdehantering), a subsidiary of Nokas Kontandthåntering AS in Norway. The enterprise value, i.e. the purchase price payable on a debt free basis, is around SEK 80 million. Nokas Värdehantering has around 220 employees and its net revenue over the 12-month period ending in September 2019 was around SEK 215 million. The company's current operating margin, EBITA, is negative. The acquired operations will be reported within Segment Europe and consolidated into Loomis's accounts as of the closing of the transaction. Nokas Värdehantering and Loomis Sweden are both payment institutions under the supervision of the Swedish Financial Supervisory Authority (SFSA) and Loomis Sweden must therefore undergo an ownership assessment performed by

the SFSA. The acquisition will be completed on condition that the SFSA approves Loomis Sweden as the owner. The purchase price is payable on closing. Including integration costs, the acquisition is expected to have a negative impact on Loomis's earnings per share for 2020. Thereafter, the acquired operations are expected to show a profit. Nokas CMS AB, a subsidiary of Nokas Värdehantering which has an ATM business in the Nordic region, is not part of the transaction and will remain part of the Nokas Group.

In February 2020 Loomis entered into an agreement to acquire all of the shares in Automatia Pankkiautomaatit Oy (Automatia) from its current owners Danske Bank, Nordea and OP Financial Group. The enterprise value, i.e. the purchase price payable on a debt-free basis, is approximately EUR 42 million. Automatia operates Finland's largest ATM business, under the Otto brand, but also offers cash supply services to bank branches, service boxes for retail and a digital platform for realtime payments. Automatia has around 30 employees. Its net revenue over the 12-month period ending in December 2019 was around EUR 42 million. Under the acquisition agreement, the sellers will sign long-term service agreements and will therefore also remain significant customers of Automatia. The acquired operations will be reported within Segment Europe and consolidated into Loomis's accounts as of closing of the transaction. The transaction is contingent upon approval from the Finnish competition and consumer protection agency and from other relevant authorities. The acquisition will be completed following approval, which is expected to be in the third quarter of 2020. The purchase price is payable on closing. Including integration costs, the acquisition is expected to have a marginally positive impact on Loomis's operating margin, EBITA, and on profit per share for 2020.

Events after the end of the period

In April 2020 it was announced that Loomis AB had signed a two-year credit agreement of SEK 1,200 million. It is in the form of a term loan and matures in April 2022. The arrangers of the loan are Danske Bank A/S, and Nordea Bank Abp. The loan may be used to finance working capital, capital expenditures and other purposes.

Loomis Foreign Exchange AS in Norway (Loomis FX) has in the recent year strengthened its organization and processes to address the shortcomings revealed by the investigations described in 2019. Loomis FX is in dialogue with the Norwegian financial supervisory authority (Finanstilsynet) and a statement is expected to be received in the second quarter of this year.

Kristoffer Wadman, who currently holds the position as Chief Innovation Officer, will leave the Group management team and become Marketing Director for Loomis's initiatives within digital payment platforms.

Financial reports in brief

CONSOLIDATED STATEMENT OF INCOME

	Note	2020	2019	R12	2019
SEK m		Jan–Mar	Jan–Mar		Full year
Revenue, continuing operations		5,213	4,883	20,741	20,411
Revenue, acquisitions		116	123	626	633
Total revenue	3,4	5,329	5,006	21,367	21,044
Production expenses		–3,921	–3,665	–15,466	–15,210
Gross income		1,408	1,341	5,901	5,833
Selling and administration expenses		–820	–777	–3,276	–3,233
Operating income (EBITA)1)		5897)	5647)	2,625	2,6017)
Amortization of acquisition-related intangible assets		–27	–25	–103	–101
Acquisition-related costs and revenue		–182)	–152)	–105	–101
Items affecting comparability		–	333)	–11	234)
Operating income (EBIT)		544	558	2,407	2,422
Net financial items		–477)	–437)	–182	–1787)
Loss on monetary net assets/liabilities		–6	–6	–35	–34
Income before taxes		490	509	2,191	2,210
Income tax		–125	–130	–559	–564
Net income for the period5)		3657)	3797)	1,632	1,6467)
KEY RATIOS
Real growth, %		2	5	4	5
Organic growth, %		0	2	2	2
Operating margin (EBITA), %		11.07)	11.37)	12.3	12.47)
Tax rate, %		25	25	26	26
Earnings per share before and after dilution, SEK6)		4.857)	5.047)	21.70	21.887)

1) Earnings Before Interest, Taxes and 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 – March 2020 consist of transaction costs of SEK –16 million (–10), restructuring costs of SEK –14 million (0), integration

costs of SEK 0 million (–5) and remeasurement of previously recognized deferred considerations of SEK 12 million (0). Of the transaction costs of SEK –16 million, SEK –16 million is for acquisitions in progress for the period January – March 2020, SEK 0 million is for completed acquisitions and SEK 0 million pertains to discontinued acquisitions. 3) The item affecting comparability of SEK 33 million relates to reported capital gains from the divestment of the fine art storage and logistics operations, Artcare.

4) The item affecting comparability of SEK 23 million relates to reported capital gains of SEK 35 million from the divestment of the fine art storage and logistics operation, Artcare, and costs of SEK –12 million related to the allegations of money laundering put forward in the spring of 2019.

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

6) For further information please refer to page 21.

7) For information regarding the IFRS 16 impact, see Note 8.

STATEMENT OF COMPREHENSIVE INCOME

	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Net income for the period	365	379	1,632	1,646
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	110	–145	168	–87
Items that may be reclassified to the statement of income
Exchange rate differences1)	818	350	889	421
Hedging of net investments, net of tax	–114	–47	–141	–74
Other comprehensive income and expenses for
the period, net after tax	814	158	916	260
Total comprehensive income for the period2)	1,180	537	2,549	1,906

1) Includes effects of hyperinflation in Argentina. As of March 31, 2020 the consumer price index in Argentina, National CPI, was 303.1 with the base period as December 2016. The SEK/ARS rate as of December 31, 2019 was 0.1554 and as of March 31, 2020, 0.1567.

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

BALANCE SHEET

	Note	2020	2019	2019
SEK m		Mar 31	Mar 31	Dec 31
ASSETS
Fixed assets
Goodwill	5	7,586	6,718	7,094
Acquisition-related intangible assets	5	477	510	478
Other intangible assets		218	183	208
Tangible fixed assets		6,189	5,371	5,822
Right-of-use assets	8	2,996	2,955	2,911
Other non-interest-bearing fixed assets		910	638	817
Interest-bearing financial fixed assets1)		725	355	565
Total fixed assets		19,101	16,730	17,893
Current assets
Non-interest-bearing current assets2)		3,993	3,625	3,536
Interest-bearing financial current assets1)		6	40	61
Liquid funds	6	4,700	4,420	5,073
Total current assets		8,699	8,086	8,670
TOTAL ASSETS		27,800	24,816	26,563
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	10	10,738	8,961	9,592
Long-term liabilities
Interest-bearing long-term lease liabilities	8	2,372	2,349	2,313
Other interest-bearing long-term liabilities		6,865	5,085	6,711
Non-interest-bearing provisions		1,291	1,024	1,117
Total long-term liabilities		10,529	8,458	10,141
Current liabilities
Tax liabilities		242	243	199
Non-interest-bearing current liabilities		3,248	2,940	3,022
Liabilities, cash processing operations		2,287	2,672	3,021
Interest-bearing current lease liabilities	8	585	521	560
Other interest-bearing current liabilities		171	1,020	29
Total current liabilities		6,533	7,397	6,831
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		27,800	24,816	26,563
KEY RATIOS
Return of shareholders' equity, %		15	18	17
Return of capital employed, %	7	153)	143)	153)
Equity ratio, %		39	36	36
Net debt	7	7,0583)	7,4093)	7,3323)
Net debt/EBITDA		1.563)	2.043)	1.653)

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) During the fourth quarter of 2019, Loomis changed the reporting of inventory of cash at the cash processing operations, see Note 1. The comparative figures have been adjusted as a result of this change.

3) For information excluding the IFRS 16 impact, see Note 8.

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Opening balance	9,592	8,422	8,961	8,422
Actuarial gains and losses after tax	110	–145	168	–87
Exchange rate differences1)	818	350	889	421
Hedging of net investments, net of tax	–114	–47	–141	–74
Total other comprehensive income	814	158	916	260
Net income for the period	365	379	1,632	1,646
Total comprehensive income2)	1,180	537	2,549	1,906
Dividend paid to Parent Company's shareholders	–	–	–750	–750
Share-related remuneration	–34	2	–22	14
Non-controlling interest	0	1	–1	0
Closing balance	10,738	8,961	10,738	9,592

1) Includes effects of hyperinflation in Argentina. As of March 31, 2020 the consumer price index in Argentina, National CPI, was 303.1 with the base period as December 2016. The SEK/ARS rate as of December 31, 2019 was 0.1554 and as of March 31, 2020, 0.1567.

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

CONSOLIDATED STATEMENT OF CASH FLOWS

Note	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Operations
Income before taxes	490	509	2,191	2,210
Items not affecting cash flow	559	471	2,226	2,138
Financial items received	8	7	37	36
Financial items paid	–61	–50	–258	–247
Income tax paid	–135	–123	–653	–641
Change in accounts receivable	98	–87	35	–150
Change in other operating capital employed and other items	147	–422	585	17
Cash flow from operations	1,106	304	4,163	3,362
Investing activities
Investments in fixed assets	–394	–319	–1,783	–1,709
Disposals of fixed assets	7	2	71	66
Divestments of operations	–	38	–	38
Acquisitions of operations	–	–2	–382	–384
Cash flow from investing activities	–386	–281	–2,094	–1,989
Financing activities
Dividend paid	–	–	–750	–750
Change in interest-bearing net debt excluding liquid funds	–273	–210	–404	–341
Issuance of bonds	–	–	2,795	2,795
Amortization of bonds	–	–	–1,000	–1,000
Change in commercial papers issued and other long-term borrowing	24	25	–1,754	–1,753
Cash flow from financing activities	–249	–185	–1,113	–1,049
Cash flow for the period	470	–162	957	325
Liquid fund at beginning of the period	1,655	1,308	1,170	1,308
Translation differences in liquid funds	79	24	77	22
Liquid funds at end of period 6	2,204	1,170	2,204	1,655

	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Operating income (EBITA)1)	573	551	2,570	2,548
Depreciation1)	336	305	1,295	1,265
Change in accounts receivable	98	–87	35	–150
Change in other operating capital employed and other items1)	148	–422	607	37
Cash flow from operating activities before investments	1,154	347	4,507	3,700
Investments in fixed assets, net	–386	–317	–1,713	–1,643
Cash flow from operating activities	768	30	2,794	2,057
Financial items paid and received1)	–26	–18	–114	–106
Income tax paid	–135	–123	–653	–641
Free cash flow	607	–111	2,027	1,310
Cash flow effect of items affecting comparability	0	0	–11	–12
Divestment of operations	–	38	–	38
Acquisition of operations	–	–2	–382	–384
Acquisition-related costs and revenue, paid and received2)	–33	–19	–90	–75
Dividend paid	–	–	–750	–750
Change in interest-bearing net debt excluding liquid funds1)	–127	–92	121	155
Issuance of bonds	–	–	2,795	2,795
Amortization of bonds	–	–	–1,000	–1,000
Change in commercial papers issued and
other long-term borrowing	24	25	–1,754	–1,753
Cash flow for the period	470	–162	957	325
KEY RATIOS
Cash flow from operating activities as % of operating income (EBITA)1)	134	5	109	81
Investments in relation to depreciation1)	1.2	1.0	1.3	1.3
Investments as a % of total revenue	7.2	6.3	8.0	7.8

CONSOLIDATED STATEMENT OF CASH FLOWS EXCLUDING THE IFRS 16 IMPACT, ADDITIONAL INFORMATION

1) Excluding the IFRS 16 impact.

2) Refers to the cash flow effect of acquisition-related transaction-, restructuring and integration costs.

Notes

NOTE 1 – 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 1–25, and the pages 1–8 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 97–105 of the 2019 Annual Report.

Reporting of cash at the cash processing operations

Loomis' operations involve the transportation of cash and other valuables based on customer contracts in place. If stipulated in the customer contract, the transported cash is processed at Loomis' cash centers. The cash that is received by Loomis is on consignment unless otherwise agreed with the customer. Consignment stocks of cash are accounted for by the other parties and not by Loomis.

In cases where Loomis, according to the customer contract, assumes ownership of the cash received, it is reported as inventory of cash. These inventories are financed by specific credit facilities and prepayments from customers. The credit facilities and prepayments are only used for this purpose.

CASH PROCESSING OPERATIONS:

	2020	2019
SEK m	Mar 31	Mar 31
Inventory of cash1)	1,796	2,226
Prepayments from customers	700	1,023
Liabilities related to prepayments from customers and liabilities to customers	–1,310	–1,345
Credit facility related to cash processing operations	–977	–1,328
Funds within cash processing opera tions (net)	209	577

1) Excluding consignment stocks of money.

As a consequence of the changed accounting principle regarding funds in the cash processing operations, which is described in Note 2 of the 2019 Annual Report, Loomis has retroactively reclassified earlier periods according to the following table:

SEK m	March 31, 2019 Reported	Reclassi fication	March 31, 2019 Adjusted
Current assets
Liquid funds	1,170	3,250	4,420
Other current receivables	695	–577	1181)
Current liabilities
Liabilities, cash processing operations	–	2,672	2,672

1) Included in Non-interest-bearing current assets.

The reclassification has had no impact on Loomis' net debt. Interest expense for the above-mentioned credit facilities is still reported under "Production expenses" and not as a net financial expense as it relates to financing of operating activities/inventory of cash. The adjustment has therefore had no impact on operating income, operating margin or earnings per share before and after dilution.

Even though inventories of cash are disposable deposits, they are entirely separated from Loomis' other liquid funds and cash flow, and according to internal guidelines they are not used in Loomis' other operations or business. In the cash flow statement inventories if cash are therefore reported net against the above-mentioned credit facilities and prepayments from customers. The reclassification in the balance sheet has therefore no impact on the Group's cash flow.

Reconciliation of liquid funds according to the consolidated balance sheet as of March 31 (after the above reclassification) against liquid funds in the Group's cash flow statement is as follows:

	2020	2019
SEK m	Mar 31	Mar 31
Liquid funds according to the Group's balance sheet	4,700	4,420
– Adjusted for inventory of cash at the cash processing operations	–1,796	–2,226
– Adjusted for prepayments from custo mers	–700	–1,023
Liquid funds according to the Group's cash flow statement	2,204	1,170

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 105–107 and 134 of the 2019 Annual Report. There have been no other significant changes compared to what is described in the Annual Report.

Parent Company – Loomis AB

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 are described in Note 37 on page 138 of the 2019 Annual Report.

NOTE 2 – RISKS AND UNCERTAINTIES Risks

Loomis' operations, which include cash in transit, cash management services and international valuables logistics, involve Loomis assuming the customer's risks associated with managing, transporting and storing cash, precious metals and valuables. Loomis has established routines and processes to identify, take action to mitigate and monitor risks. Risks are assessed based on two criteria: the likelihood that an event will occur and the severity of the consequences for the business if the event should occur. There 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 that should therefore be taken into account when making assessments based on full-year 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 purchases and payments.
• 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 and other criminal activity.
• 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 risks: In its operations, Loomis is exposed to risk associated with financial instruments such as liquid funds, accounts receivable, accounts payable and loans. The risks relating to these instruments are mainly:

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

The financial risks are described in more detail in Note 6 in the 2019 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 during 2019 impacted certain geographic areas negatively, and it cannot be ruled out that Loomis' revenue and earnings for 2020 may be negatively impacted as a result.

As a consequence of the outbreak of the coronavirus (COVID-19), the authorities in many markets have initiated measures that have lowered demand in retail business in these countries. The Company's revenue and earnings in the first quarter of 2020 were negatively impacted and this trend is expected to continue until the development of the pandemic slows and retail businesses in the countries where Loomis operates can start to grow again. Loomis is monitoring events carefully and taking steps to minimize or eliminate the impact on the Group's operations. Loomis is following the guidelines issued by the Public Health Agency of Sweden, the WHO, ECDC (European Centre for Disease Prevention and Control) and the CDC in the USA.

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, and 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 or other conditions.

In 2020 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2019 Annual report and where applicable under the heading "Critical estimates and assessments" in Note 1 of this report, 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.

NOTE 3 – REVENUE DISTRIBUTION

		Elimina				Elimina
	Europe	USA	tions	Total	Europe	USA	tions	Total
SEK m		Jan–Mar 2020				Jan–Mar 2019
Cash in transit (CIT)	1,682	1,565	–	3,247	1,631	1,457	–	3,088
Cash management services (CMS)	747	846	–	1,593	741	753	–	1,494
International	207	82	–	289	181	87	–	268
Other	195	5	–	199	152	4	–	156
Revenue, internal	11	9	–20	0	7	9	–15	0
Total revenue	2,842	2,507	–20	5,329	2,711	2,310	–15	5,006
Timing of revenue recognition, external
At a point in time	426	81	–	507	403	82	–	486
Over time	2,405	2,417	–	4,822	2,301	2,219	–	4,521
Total external revenue	2,831	2,498	–	5,329	2,704	2,301	–	5,006

	Europe	USA	Eliminations	Total
SEK m		Jan–Dec 2019
Cash in transit (CIT)	6,856	5,946	–	12,802
Cash management services (CMS)	3,172	3,288	–	6,460
International	812	333	–	1,145
Other	619	17	–	636
Revenue, internal	39	53	–92	–
Total revenue	11,498	9,639	–92	21,044
Timing of revenue recognition, external
At a point in time	1,566	311	–	1,877
Over time	9,893	9,274	–	19,167
Total external revenue	11,459	9,585	–	21,044

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2020	2019	2019
SEK m	Jan–Mar	Jan–Mar	Jan–Dec
USA	2,507	2,310	9,639
France	854	728	3,166
Spain	396	371	1,632
UK	375	387	1,562
Other countries and eliminations	1,197	1,210	5,047
Total revenue	5,329	5,006	21,044

NOTE 4 – SEGMENT OVERVIEW

Loomis has operations in a number of countries, with country presidents being responsible for each country. Segment presidents supervise operations in a number of countries and also support the respective country president. Operating segments are reported in accordance with the internal Loomis reporting, submitted to Loomis' CEO who has been identified as the most senior executive decision-maker within Loomis. Loomis has the following segments: Europe, USA, and Other. Presidents for the segments Europe and USA are responsible for following up the segments' operating income before amortization of acquisitionrelated intangible assets, acquisition-related costs and revenue and items affecting comparability (EBITA), according to the manner in which Loomis reports its consolidated statement of income. This then forms the basis for how the CEO monitors development, allocates resources etc. Loomis has therefore chosen this structure for its segment reporting.

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	Other1)	Eliminations	Total
SEK m	Jan–Mar 2020	Jan–Mar 2020	Jan–Mar 2020	Jan–Mar 2020	Jan–Mar 2020
Revenue, continuing operations	2,726	2,507	–	–20	5,213
Revenue, acquisitions	116	–	–	–	116
Total revenue	2,842	2,507	–	–20	5,329
Production expenses	–2,176	–1,767	–	23	–3,921
Gross income	667	739	–	3	1,408
Selling and administrative expenses	–391	–369	–58	–3	–820
Operating income (EBITA)	276	371	–58	–	589
Amortization of acquisition-related intangible assets	–21	–5	–	–	–27
Acquisition-related costs	–18	–1	0	–	–18
Items affecting comparability	–	–	–	–	–
Operating income (EBIT)	237	365	–58	–	544
Net financial items	–	–	–47	–	–47
Loss on monetary net assets/liabilities	–	–	–6	–	–6
Income before taxes	237	365	–112	–	490

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

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	Other1)	Eliminations	Total
SEK m	Jan–Mar 2019	Jan–Mar 2019	Jan–Mar 2019	Jan–Mar 2019	Jan–Mar 2019
Revenue, continuing operations	2,590	2,309	–	–15	4,883
Revenue, acquisitions	122	1	–	–	123
Total revenue	2,711	2,310	–	–15	5,006
Production expenses	–2,034	–1,655	–	23	–3,665
Gross income	678	655	–	8	1,341
Selling and administrative expenses	–385	–334	–49	–8	–777
Operating income (EBITA)	293	321	–49	–	564
Amortization of acquisition-related intangible assets	–20	–5	–	–	–25
Acquisition-related costs	–8	–	–7	–	–15
Items affecting comparability	332)	–	–	–	332)
Operating income (EBIT)	299	316	–56	–	558
Net financial items	–	–	–43	–	–43
Loss on monetary net assets/liabilities	–	–	–6	–	–6
Income before taxes	299	316	–106	–	509

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

2) The item affecting comparability of SEK 33 million relates to reported capital gains from the divestment of the fine art storage and logistics operations, Artcare.

SEGMENT OVERVIEW STATEMENT OF INCOME, ADDITIONAL INFORMATION

	2020	2019	R12	2019
SEK m	Jan–Mar	Jan–Mar		Full year
Europe
Operating income (EBITA)	276	293	1,413	1,429
Operating margin (EBITA), %	9.7	10.8	12.1	12.4
USA
Operating income (EBITA)	371	321	1,422	1,372
Operating margin (EBITA), %	14.8	13.9	14.5	14.2
Other 1)
Revenue	–	–	–	–
Operating income (EBITA)	–58	–49	–209	–200
Eliminations
Revenue	–20	–15	–97	–92
Operating income (EBITA)	–	–	–	–
Group total
Operating income (EBITA)	589	564	2,625	2,601
Operating margin (EBITA), %	11.0	11.3	12.3	12.4

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

SEGMENT OVERVIEW BALANCE SHEET

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Europe
Assets	11,700	10,545	11,234
Liabilities	3,107	2,683	3,009
USA
Assets	10,965	9,444	9,965
Liabilities	1,031	893	1,012
Other 1)
Assets	5,135	4,827	5,364
Liabilities	12,924	12,279	12,950
Shareholder's equity	10,738	8,961	9,592
Group total
Assets	27,800	24,816	26,563
Liabilities	17,062	15,855	16,971
Shareholder's equity	10,738	8,961	9,592

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

NOTE 5 – ACQUISITIONS

In January 2020 Loomis AB announced that, through the wholly owned subsidiary Loomis Sverige AB (Loomis Sweden), it had entered into an agreement to acquire all of the shares in the limited liability company Nokas Värdehantering AB (Nokas Värdehantering), a subsidiary of Nokas Kontandthåntering AS in Norway. The enterprise value, i.e. the purchase price payable on a debt free basis, is around SEK 80 million. The acquired operations will be consolidated into Loomis's accounts as of the closing of the transaction. The acquisition will be completed on condition that the Swedish Financial Supervisory Authority (SFSA)

approves Loomis Sweden as the owner.

In February 2020 Loomis entered into an agreement to acquire all of the shares in Automatia Pankkiautomaatit Oy (Automatia) from its current owners Danske Bank, Nordea and OP Financial Group. The enterprise value, i.e. the purchase price payable on a debt-free basis, is around EUR 42 million. The acquired operations will be consolidated into Loomis's accounts on closing of the transaction. The transaction is contingent upon approval from the Finnish competition and consumer protection agency and from the relevant authorities.

NOTE 6 – LIQUID FUNDS

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Liquid funds	4,700	4,420	5,073
– Adjusted for inventory of cash at the cash processing operations	–1,796	–2,226	–2,384
– Adjusted for prepayments from customers	–700	–1,023	–1,034
Liquid funds excluding funds for cash processing activities	2,204	1,170	1,655

NOTE 7 – CAPITAL EMPLOYED AND FINANCING

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Operating capital employed	9,628	9,227	9,238
Goodwill	7,586	6,718	7,094
Acquisition-related intangible assets	477	510	478
Other capital employed	105	–85	114
Capital employed	17,796	16,370	16,924
Net debt	7,0581)	7,409	7,332
Shareholders' equity	10,738	8,961	9,592
Key ratios
Return on capital employed, %	15	14	15
Return on equity, %	15	18	17
Equity ratio, %	39	36	36
Net debt/EBITDA	1.56	2.04	1.65

1) For information regarding the IFRS 16 impact, see Note 8.

NET DEBT

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Liquid funds excluding funds for cash processing activities	2,204	1,170	1,655
Interest-bearing financial fixed assets	725	355	565
Interest-bearing financial current assets	6	40	61
Interest-bearing lease liabilities	–2,957	–2,871	–2,873
Other interest-bearing long-term liabilities	–6,865	–5,085	–6,711
Other interest-bearing current liabilities	–171	–1,020	–29
Net debt	–7,058	–7,409	–7,332

NOTE 8 – LEASES

Loomis has applied IFRS 16 since January 1, 2019. The Group is using the simplified transition method, modified retroactively, and has therefore not restated the comparative figures. For further information about IFRS 16, please see Note 2 of the 2019 Annual Report.

Impact

As a result of the introduction of IFRS 16 the operating income (EBITA) is charged with depreciation of right-of-use assets instead of an operating lease expense. In addition, the increased lease liability is negatively impacting net financial expense. See also the tables below.

Right-of-use assets, which are reported on a separate line in the balance sheet, amounted to SEK 2,996 million as of March 31, 2020 (2,955). Buildings account for 74 percent (79) of total rightof-use assets. The lease liability as of March 31, 2020 totaled SEK 2,957 million (2,870), of which the long-term lease liability amounts to SEK 2,372 million (2,349) and the short-term lease

liability to SEK 585 million (521). The long-term and short-term lease liabilities are recognized as interest-bearing long-term lease liabilities and interest-bearing short-term lease liabilities respectively in the balance sheet.

As of March 31 2020, the costs relating to short-term leases (lease term of 12 months or less) amounted to SEK 9 million (7) and leases for which the underlying asset has a low value (<USD 5,000) amounted to SEK 2 million (6).

Outcomes for Loomis' key ratios are presented below both including and excluding the impact of IFRS 16 as of March 31, 2020:

	Including IFRS 16	Excluding IFRS 16
	Mar 31, 2020	Mar 31, 2020
Net debt	7,058	4,191
Net debt/EBITDA	1.56	1.08
Return on capital employed, %	15	17

	Including IFRS 16	Excluding IFRS 16	Including IFRS 16	Excluding IFRS 16	Including IFRS 16	Excluding IFRS 16
SEK m	Jan–Mar 2020	Jan–Mar 2020	Jan–Mar 2019	Jan–Mar 2019	Jan–Dec 2019	Jan–Dec 2019
Operating income, EBITDA	1,083	909	999	856	4,435	3,813
Depreciation	494	336	435	305	1,834	1,265
Operating income, EBITA	589	573	564	551	2,601	2,548
Operating margin, EBITA, %	11.0	10.8	11.3	11.0	12.4	12.1
Net financial items	–47	–21	–43	–19	–178	–73
Net income for the period	365	374	379	388	1,646	1,685
Earnings per share	4.85	4.97	5.04	5.16	21.88	22.40
Investments in relation to depreciation	0.8	1.2	0.7	1.0	0.9	1.3

NOTE 9 – TRANSACTIONS WITH RELATED PARTIES

Transactions between Loomis and related parties are described in Note 7 of the 2019 Annual Report. As previously communicated, board member Lars Blecko provides consulting services to Loomis Armored US LLC. pursuant to an existing agreement between Loomis Armored US LLC and a company owned by him. Board member Johan Lundberg has also been asked to provide consulting services as of January 1, 2020. There have been no transactions with related parties during the period that have materially impacted the Company's earnings and financial position.

NOTE 10 – NUMBER OF SHARES AS OF MARCH 31, 2020

Votes	No. of shares	No. of votes Quota value		SEK m
1	75,279,829	75,279,829	5	376
	75,279,829	75,279,829		376
1	–53,797	–53,797
	75,226,032	75,226,032

1) The number of treasury shares has remained unchanged during the period and has not affected shareholders' equity.

NOTE 11 – CONTINGENT LIABILITIES, GROUP

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Securities and guarantees	2,2331)	1,6801)	2,0141)
Other contingent liabilities	–	–	–
Total contingent liabilities	2,233	1,680	2,014

1) Excluding intra-group contingent liabilities.

OTHER INFORMATION – KEY RATIOS

	2020	2019	R12	2019
	Jan–Mar	Jan–Mar		Full year
Real growth, %	2	5	4	5
Organic growth, %	0	2	2	2
Total growth, %	6	12	9	10
Gross margin, %	26.4	26.8	27.6	27.7
Selling and administration expenses in % of total revenue	–15.4	–15.5	–15.3	–15.4
Operating margin (EBITA), %	11.02)	11.32)	12.3	12.42)
Tax rate, %	25	25	26	26
Net margin, %	6.9	7.6	7.6	7.8
Return of shareholders' equity, %	15	18	15	17
Return of capital employed, %	152)	14	15	15
Equity ratio, %	39	36	39	36
Net debt (SEK m)	7,0582)	7,409	7,058	7,332
Net debt/EBITDA	1.562)	2.04	1.56	1.65
Cash flow from operating activities as % of operating income (EBITA)3)	134	31	109	81
Investments in relation to depreciation3)	0.82)	0.72)	0.9	0.92)
Investments as a % of total revenue	7.2	6.3	8.0	7.8
Earnings per share before and after dilution, SEK1)	4.852)	5.042)	21.70	21.882)
Shareholders' equity per share before and after dilution, SEK	142.74	119.12	142.74	127.51
Cash flow from operating activities per share after dilution, SEK	14.70	4.04	55.35	44.69
Dividend per share, SEK	–	–	10.00	10.00
Number of outstanding shares (millions)	75.2	75.2	75.2	75.2
Average number of outstanding shares (millions)1)	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. 2) For information on key ratios excluding the IFRS 16 impact, see Note 8.

3) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2020	2019	2019
SEK m	Jan–Mar	Jan–Mar	Full year
Revenue	163	145	631
Operating income (EBIT)	98	94	374
Income after financial items	–61	20	733
Net income for the period	–47	15	692

The Parent Company's revenue consists mainly of license fees and other revenue from subsidiaries. The decrease in net income in 2020 is mainly due to a weaker SEK against USD and CHF. This decline does not affect the Group's earnings.

PARENT COMPANY SUMMARY BALANCE SHEET

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Fixed assets	11,956	11,285	11,571
Current assets	1,736	1,382	1,671
Total assets	13,693	12,667	13,242
Shareholders' equity1)	5,100	5,260	5,158
Liabilities	8,593	7,407	8,084
Total shareholders' equity and liabilities	13,693	12,667	13,242

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

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.

CONTINGENT LIABILITIES, PARENT COMPANY

	2020	2019	2019
SEK m	Mar 31	Mar 31	Dec 31
Guaranteed committed bank facilities	4,749	4,112	4,401
Other contingent liabilities	18	26	44
Total contingent liabilities	4,767	4,138	4,444

Definitions

Use of key ratios not defined in IFRS

The Loomis Group's accounts are prepared in accordance with IFRS. See page 13 for more information on accounting principles. Only a few key ratios are defined in IFRS. As of the beginning of the second quarter of 2016 Loomis is applying the new guidelines for Alternative Performance Measures issued by ESMA (European Securities and Markets Authority). Briefly, an alternative performance measure is a financial measurement of historical or future earnings development, financial position or cash flow not defined or specified in IFRS. To assist management and other stakeholders in their analysis of the Group's performance, Loomis is reporting certain performance measures not defined by IFRS. Group Management believes that this data will facilitate an analysis of the Group's performance. This data supplements the IFRS information and does not replace the performance measures defined in IFRS. Loomis' definitions of measures 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 ex change 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: Jan–Mar 2020: 365/75,226,032 x 1,000,000 = 4.85. Jan–Mar 2019: 379/75,226,032 x 1,000,000 = 5.04.
Earnings per share after dilution	Calculation for: Jan–Mar 2020: 365/75,226,032 x 1,000,000 = 4.85. Jan–Mar 2019: 379/75,226,032 x 1,000,000 = 5.04.
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, excluding the IFRS 16 impact.
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)	Operating income, EBITA, (excluding IFRS 16), adjusted for depreciation (excluding IFRS 16), change in accounts receivable and other items (excluding IFRS 16) as well as net investments in fixed assets as a percentage of operating income, EBITA, (excluding IFRS 16).
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 capi tal employed.

Equity ratio, %	Shareholders' equity as a percentage of total assets.
Capital employed	Shareholders' equity with the addition of net debt. Calculation as per March 31, 2020: 10,738 + 7,058 = 17,796. March 31, 2019: 8,961 + 7,409 = 16,370.
Net debt	Interest-bearing liabilities less interest-bearing assets and liquid funds excluding funds for cash processing activities.
R12	Rolling 12 months (April 2019 up to and including March 2020).
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.

Outlook 2020

The company is not providing any forecast information for 2020.

Stockholm, May 6, 2020

Patrik Andersson President and CEO Board member

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

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 operators. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employs around 25,000 people and had revenue in 2019 of SEK 21 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.

Telephone conference and audio cast

A telephone conference will be held on May 7, 2020 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: 0 844 822 8902 USA: 1 917 720 0181 Sweden: +46 8 566 184 30

Provide conference ID number: Loomis, 4627887.

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

Interim report Interim report January – June January – September July 24, 2020 November 5, 2020

Loomis' Annual General meeting will be held on May 6, 2020 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 03.00 p.m. (CEST) on May 6, 2020.