Loomis — Interim / Quarterly Report 2021

Nov 3, 2021

Interim Report January – September 2021

Q3 2021

• Revenue SEK 5,135 million (4,709). Real growth 11 percent (–7) of which organic growth 6 percent (–9).
• Operating income (EBITA)1) SEK 581 million (517) and operating margin 11.3 percent (11.0). Excluding Loomis Pay, the operating margin amounted to 12.0 percent (11.5).
• Income before tax SEK 437 million (361) and income after tax SEK 297 million (246).
• Earnings per share before dilution SEK 3.96 (3.27) and after dilution SEK 3.95 (3.27).
• Cash flow from operating activities2) SEK 555 million (587), equivalent to 96 percent (114) of operating income (EBITA).
• During the period 554,985 own shares were repurchased.

Nine months 2021

• Revenue SEK 14,397 m (14,277). Real growth 8 percent (–8) of which organic growth was 4 percent (–10).
• Operating income (EBITA)1) SEK 1,367 million (1,308) and operating margin 9.5 percent (9.2) Excluding Loomis Pay, the operating margin amounted to 10.2 percent (9.4)
• Income before tax SEK 1,045 million (893) and income after tax SEK 746 million (613).
• Earnings per share before and after dilution SEK 9.92 (8.15).
• Cash flow from operating activities2) SEK 1,187 million (1,856), equivalent to 87 percent (142) of operating income (EBITA).
• Dividend, for 2020, of SEK 6.00 per share (5.50) was distributed during the second quarter.
• The ongoing coronavirus pandemic had, during the first quarter this year, a negative impact on revenue and operating income compared to the first quarter 2020. During the second and third quarter this year, the overall impact on revenue and operating margin, from the pandemic, was lower compared to the corresponding quarters 2020.

KEY RATIOS

	2021	2020		2021	2020		2020
				Nine	Nine
SEK m	Quarter 3	Quarter 3	Change (%)	months	months	Change (%)	Full year
Revenue	5,135	4,709	9.1	14,397	14,277	0.8	18,813
Of which:
Organic growth	267	–478	5.7	558	–1,494	3.9	–1,968
Acquisitions and divestments	243	68	5.2	611	244	4.3	326
Exchange rate effects	–85	–373	–1.8	–1,049	–175	–7.3	–589
Total growth	426	–783	9.1	121	–1,426	0.8	–2,231
Operating income (EBITA)1)	581	517		1,367	1,308		1,775
Operating margin (EBITA), %1)	11.3	11.0		9.5	9.2		9.4
Operating income (EBIT)	489	414		1,191	1,054		1,304
Earnings before tax	437	361		1,045	893		1,096
Profit for the period	297	246		746	613		716
Earnings per share before dilution, SEK	3.96	3.27		9.92	8.15		9.52
Tax rate, %	32	32		29	31		35
Cash flow from operating activities2)	555	587		1,187	1,856		2,218
Cash flow from operating activities as % of operat ing income (EBITA)2)	96	114		87	142		125

1) Earnings Before Interest, Taxes, 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. See also under "Alternative performance measures" on pages 22–23 and "Definitions" on page 24.

An explanation and reconciliation of alternative performance measures can be found on pages 22–23 of this report.

Comments by the President and CEO

New business opportunities when the society is opening up

The measures implemented in society to reduce the effects of the pandemic are yielding results. More and more countries are easing their restrictions and many of them have removed restrictions altogether. The conditions are now good for an increase in travel and tourism as well. In our assessment, experience gained from the pandemic will, in many countries, drive outsourcing of cash management services (CMS) and ATM services to providers such as Loomis. Our customers will be able to reduce their costs and their risks if Loomis performs these services instead. SafePoint in the USA has reported good organic growth for a long time and we are now investing further to expand SafePoint in the European market.

We have learned a lot since the outbreak of the pandemic. Loomis's operations are today significantly more efficient than they were in 2019. The cost-saving actions we have taken will continue to benefit us in the future. The service levels we have provided for our customers have remained high during the pandemic and there is good potential for us to further increase our market share.

Improved growth and higher operating margin

In the third quarter the Group's real growth amounted to 11 percent (–7), of which organic growth made up 6 percent (–9). The Group's operating margin (EBITA %) in the third quarter amounted to 11.3 percent (11.0). The effects of the pandemic are not as extensive today and this has had a positive overall impact on both our growth and operating margin. As anticipated, Loomis Pay had a negative impact on income. Excluding Loomis Pay, the operating margin amounted to 12.0 percent (11.5).

The positive development in our US operations continues. Revenue growth, in local currency, was in the third quarter almost 14 percent. The growth is above all driven by continued good development of Safe-Point. Revenue from SafePoint increased during the quarter by nearly 20 percent.

The operating margin in USA in the third quarter amounted to 14.5 percent (15.5). The positive development of the operating margin, which we have seen during a long period of time, was temporarily reduced. It is worth noting that in absolute terms the operating income exceeded the 2020 operating income, despite a slightly lower margin. The lower operating margin is above all due to the current challenges in the US labor market. In order for Loomis to maintain a high level of service, the amount of overtime has been increased on a temporary basis.

Segment Europe was hit hard by the extensive lockdowns in previous periods, but the situation is now improving significantly. The spread of the delta variant of the virus held back the pace of recovery during the summer, but we now believe that our European markets will be able to grow again as restrictions are lifted and travel can start again. The steps we took early on to compensate for the temporary lower volumes are now showing clear results. The operating margin in the third quarter in Europe was 11.1 percent, an improvement of 1.7 percentage points compared to the third quarter of 2020.

Our ambitious Loomis Pay initiative is making progress. Our goal for Loomis Pay is to be the most complete payment option in the market.

Patrik Andersson President and CEO

Revenue, SEK billion

*Refers to the period October 1, 2020 – September 30, 2021.

Operating margin (EBITA), %

Annual dividend, %

The segments

Revenue, operating income and number of full-time employees

SEGMENT EUROPE

	2021	2020	2021	2020	R12	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Twelve months	Full year
Revenue	2,688	2,526	7,412	7,420	9,780	9,788
Sales growth, %	6.4	–16.4	–0.2	–13.3	–5.7	–14.9
of which organic growth, %	–1.1	–14.1	–3.5	–15.0	–7.2	–15.4
of which acquisitions / divestments, %	9.4	2.1	7.9	3.1	6.3	2.9
of which exchange rate effects, %	–1.9	–4.4	–4.6	–1.4	–4.8	–2.5
Real growth, %	8.3	–12.0	4.4	–11.9	–0.8	–12.4
Operating income (EBITA)	300	238	516	443	661	588
Operating margin, %	11.1	9.4	7.0	6.0	6.8	6.0
Number of full-time employees	14,000	14,100	13,800	14,100	13,800	13,900

SEGMENT USA

	2021	2020	2021	2020	R12	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Twelve months	Full year
Revenue	2,473	2,201	7,055	6,914	9,239	9,098
Sales growth, %	12.4	–12.0	2.0	–4.2	–1.1	–5.6
of which organic growth, %	13.8	–2.5	12.0	–3.1	9.0	–2.2
of which acquisitions / divestments, %	0.3	0.1	0.3	–0.4	0.3	–0.2
of which exchange rate effects, %	–1.7	–9.6	–10.3	–0.7	–10.4	–3.2
Real growth, %	14.1	–2.5	12.3	–3.4	9.3	–2.4
Operating income (EBITA)	359	340	1,085	1,043	1,467	1,425
Operating margin, %	14.5	15.5	15.4	15.1	15.9	15.7
Number of full-time employees	9,500	9,500	9,000	9,400	9,400	9,100

SEGMENT LOOMIS PAY

	2021	2020	2021	2020	R12	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Twelve months	Full year
Revenue	3	3	6	3	10	7
Sales growth, %	15.7	n/a	116.0	n/a	244.2	n/a
of which organic growth, %	18.0	n/a	18.0	n/a	18.0	n/a
of which acquisitions / divestments, %	0.0	n/a	100.3	n/a	228.6	n/a
of which exchange rate effects, %	–2.4	n/a	–2.4	n/a	–2.4	n/a
Real growth, %	18.0	n/a	118.4	n/a	246.6	n/a
Operating income (EBITA)	–36	–22	–101	–38	–131	–68
Operating margin, %	n/a	n/a	n/a	n/a	n/a	n/a

Revenue and earnings

Q3 2021

Group – revenue

Revenue for the quarter amounted to SEK 5,135 million (4,709). Real growth was 11 percent (–7), of which organic growth was 6 percent (–9). Revenue was above all positively affected by higher sales in the USA and the acquisitions in Finland and Switzerland.

Segment Europe – revenue

Revenue for the quarter amounted to SEK 2,688 million (2,526). Real growth, which amounted to 8 percent (–12), was positively affected by revenue attributable to the acquisitions of Automatia in Finland in December 2020 and of the cash handling operations of Swiss Post in May this year. Organic growth was –1 percent (–14). The spread of the delta variant of the virus held back the pace of recovery during the summer, which resulted in consolidated organic sales being largely the same as in the corresponding quarter in 2020.

Segment USA – revenue

Revenue amounted to SEK 2,473 million (2,201) and real growth was 14 percent (–2). Organic growth amounted to 14 percent (–3). Operations in the US continued to show good growth. All offerings grew in general, with volume increases in particular for SafePoint and ATM services. Revenue for the quarter from Safe-Point accounted for around 18 percent (17) of the segment's total revenue. Revenue from CMS during the quarter amounted to 34 percent (34) of the segment's total revenue.

Segment Loomis Pay – revenue

Revenue amounted to SEK 3 million (3). The offering is now available in both the Danish and Swedish markets and the goal is to roll out the service in more markets. The dialogue with customers, the building up of local sales organizations and continued development of the service offering are priorities. As previously communicated, the target is revenue in excess of SEK 3 billion per year within five years.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 581 million (517) and the operating margin was 11.3 percent (11.0). The exchange rate effect on operating income during the quarter was around SEK –12 million.

Segment Europe – operating income (EBITA)

The operating income (EBITA) amounted to SEK 300 million (238) and the operating margin was 11.1 percent (9.4). The steps taken early on to compensate for the temporary lower volumes in connection with the outbreak of the pandemic are now showing clear results. During the quarter several of Loomis's European companies received government grants totaling around SEK 7 million (49), mainly to provide relief for furloughed employees.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 359 million (340) and the operating margin was 14.5 percent (15.5). The lower operating margin is above all due to the current challenges in the US labor market. In order for Loomis to maintain a high level of service, the amount of overtime has been increased on a temporary basis which has resulted in a slightly higher cost level.

Segment Loomis Pay – operating income (EBITA)

The operating income (EBITA) amounted to SEK –36 million (–22). Loomis Pay is expected to reach positive operating income in 2023. From now until 2023 further investments will be made in product development and other activities relating to Loomis Pay. The assessment is that around SEK 100 million, net per year, will be expensed in the income statement.

Group – other

The operating income (EBIT) for the quarter amounted to SEK 489 million (414), which includes amortization of acquisitionrelated intangible assets of SEK –31 million (–26), acquisitionrelated costs of SEK –9 million (–37) and items affecting comparability of SEK –52 million (–40). The items affecting comparability in the third quarter of this year relate to goodwill impairment within the European segment. The previous year's item affecting comparability was largely related to restructuring costs.

Income before tax of SEK 437 million (361) includes a net financial expense of SEK –51 million (–53), including a loss on monetary net assets.

The tax expense for the quarter amounted to SEK –140 million (–115), which represents a tax rate of 32 percent (32). The higher tax rate compared with previous periods in 2021 is mainly due to goodwill impairment, which is not tax-deductible. Adjusted for the impairment effect, the tax rate was around 29 percent.

Earnings per share before dilution amounted to SEK 3.96 (3.27) and after dilution SEK 3.95 (3.27).

Revenue and earnings

Nine months 2021

Group – revenue

Revenue for the period amounted to SEK 14,397 million (14,277). Real growth was 8 percent (–8), of which organic growth was 4 percent (–10). Revenue was negatively affected in the first quarter of this year by the pandemic. In the second quarter of this year volumes began to recover, both in the USA and Europe, as restrictions were eased. The recovery continued in the third quarter in the USA but came to a standstill in Europe due to the spread of the delta variant. Acquisitions in Sweden, Finland and Switzerland had a positive impact on revenue.

Segment Europe – revenue

Revenue for the period amounted to SEK 7,412 million (7,420). Real growth, which amounted to 4 percent (–12), was positively affected by revenue attributable to the acquisitions of Nokas Värdehantering AB in Sweden in June 2020, Automatia in Finland in December 2020 and the cash handling operations of Swiss Post in May this year. Organic growth was –4 percent (–15).

Segment USA – revenue

Revenue amounted to SEK 7,055 million (6,914) and real growth was 12 percent (–3). Organic growth amounted to 12 percent (–3). Volumes in the US market have recovered gradually as restrictions have been lifted. The negative effects of the spread of the pandemic have had a significantly lower impact in the USA than in Europe. This is mainly due to the structure of the customer portfolios. In the USA a larger share of revenue than in Europe is not volume dependent. Fixed revenue from, for example, Safe-Point and financial institutions is significantly higher in the USA than in Europe. Revenue for the period from SafePoint accounted for around 18 percent (17) of the segment's total revenue. The share of revenue from CMS during the period amounted to 34 percent (34) of the segment's total revenue. See also comments on page 5.

Segment Loomis Pay – revenue

Revenue amounted to SEK 6 million (3). In the first quarter Loomis Pay was launched in the Swedish market and the offering is now available in both the Danish and Swedish markets. See also comments on page 5.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 1,367 million (1,308) and the operating margin was 9.5 percent (9.2). The exchange rate effect on operating income during the period was around SEK –137 million.

Segment Europe – operating income (EBITA)

The operating income (EBITA) amounted to SEK 516 million (443) and the operating margin was 7.0 percent (6.0). During the first quarter the operating income was negatively affected by the pandemic but in the second quarter volumes began to recover, which had a positive effect on the operating margin. In the third quarter it was primarily the measures implemented in 2020 to adapt costs to lower volumes that yielded results. During the period several of Loomis's European companies received government grants totaling around SEK 42 million (129), mainly to provide relief for furloughed employees.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 1,085 million (1,043) and the operating margin was 15.4 percent (15.1). A more profitable customer portfolio, higher revenue from SafePoint and ATMs, and efficiency improvement programs at the branches continued to contribute to the improved profitability. See also comments on page 5.

Segment Loomis Pay – operating income (EBITA)

The operating income (EBITA) amounted to SEK –101 million (–38). Cost levels are developing according to plan and Loomis Pay is expected to achieve positive operating income in 2023. From now until 2023 further investments will be made in product development and other activities relating to Loomis Pay. See also comments on page 5.

Group – other

The operating income (EBIT) for the period amounted to SEK 1,191 million (1,054), which includes amortization of acquisitionrelated intangible assets of SEK –95 million (–81), acquisitionrelated costs of SEK –29 million (–88) and items affecting comparability of SEK –52 million (–86). The item affecting comparability relates to goodwill impairment for an entity within the European segment. The items affecting comparability in the previous year are mainly impairment of goodwill and costs relating to restructuring within Segment Europe.

Income before tax of SEK 1,045 million (893) includes a net financial expense of SEK –146 million (–161), including loss of monetary net assets relating to a currency adjustment in Argentina.

The tax expense for the quarter amounted to SEK –299 million (–280), which represents a tax rate of 29 percent (31). See also comments on page 5.

Earnings per share before and after dilution amounted to SEK 9.92 SEK (8.15).

Cash flow and investments

Nine months 2021

Cash flow from operating activities, excluding the effects of IFRS 16, amounted to SEK 1,187 million (1,856), equivalent to 87 percent (142) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –703 million (–731), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 916 million (978). Investments made during the period were mainly in buildings, vehicles, machinery and equipment. Investments in relation to depreciation (including IFRS 16) for the period amounted to 0.5 (0.5).

Capital employed and financial position

Capital employed

The total capital employed as of September 30, 2021 amounted to SEK 16,517 million (16,097 as of September 30, 2020), which represents 87 percent (82) of revenue. Return on capital employed amounted to 11 percent (12).

Shareholders' equity and financing

Shareholders' equity increased during the nine-month period by SEK 820 million and amounted to SEK 9,593 million as of September 30, 2021 (8,773 as of December 31, 2020). The increase is largely explained by translation differences of SEK 608 million, net profit for the period of SEK 746 million and actuarial gains of SEK 106 million. The dividend of SEK 451 million and funds used to repurchase shares reduced shareholders' equity. The return on shareholders' equity was 9 percent (10) and the equity ratio was 34 percent (37).

During the period debt of SEK 1,376 million maturing within 12 months was reclassified from long-term to short-term loan. Net debt amounted to SEK 6,925 million as of September 30, 2021 (6,245 as of September 30, 2020) and net debt/EBITDA was 1.88 (1.60 as of September 30, 2020).

As of September 30, 2021, total long-term loan facilities amounted to around SEK 7.1 billion and total short-term loan facilities to around SEK 1.4 billion. Unutilized credit facilities amounted to around SEK 4.3 billion on September 30, 2021, of which SEK 1.8 billion was used as back-up for outstanding commercial papers. Available liquid funds amounted to around SEK 2.1 billion (see Note 7).

Other events

Significant events during the period

Loomis's Annual General Meeting was held on May 6, 2021. For decisions made at the 2021 AGM, please refer to the press release from May 6, 2021 which is available on Loomis's website, www. loomis.com.

On August 30 Loomis AB announced that a Danish court had issued an appealable decision against Loomis. As previously reported, in 2018 a competitor filed a lawsuit against Loomis AB's Danish subsidiary relating to alleged competition law infringements in the Danish market. The decision relates to practices applied and agreements entered into between 2014 and 2016. Loomis has appealed the decision since Loomis is of the firm opinion that Loomis has acted in compliance with relevant laws. The court has in its decision not considered the question of damages as this is only expected to be addressed in a separate process after the appeal process has been finalized. The competitor´s total claim is DKK 228 million plus interest. Loomis is not reporting any provision in the balance sheet for this case as the criteria for provisions, under IAS 37, are not considered to be met.

Acquisitions January – September 2021

In March 2021 Loomis AB announced that, through its wholly owned subsidiary Loomis Schweiz AG (Loomis Switzerland), it had entered into an agreement to acquire the operations of limited liability company SecurePost AG (SecurePost), a subsidiary of Die Schweizerische Post AG (Swiss Post). The acquisition was in the form of a transfer of assets and liabilities, whereby Loomis Switzerland acquired all of the operations of SecurePost, including customer contracts, employees and operational assets. New commercial agreements with other legal entities within Swiss Post have been signed and became effective upon closing of the transaction, which took place on May 3, 2021. The enterprise value, i.e. the purchase price payable on a debt-free basis, amounted to around CHF 17.5 million.

SecurePost had a nationwide presence in Switzerland and around 440 employees. In 2020 its operations generated revenue of around CHF 66 million. In addition to traditional cash in transit (CIT) and cash management services (CMS), SecurePost brings an installed base of around 1,300 smart safes (SafePoint) which will be integrated into Loomis Switzerland's existing Safe-Point portfolio.

The acquired operations are reported within Segment Europe and consolidated into Loomis's accounts as of May 3, 2021. The acquisition was not subject to any regulatory approvals and the purchase price was paid on closing.

At the time of the acquisition the operating margin (EBITA) was negative. The operating margin is expected to be marginally

positive for full-year 2022 after some of the anticipated synergies have been realized. Once the business is fully integrated, over the next two years, the acquired volumes are expected to achieve profitability, equivalent to around four times EBITA after synergies. Including transaction and integration costs, the acquisition is expected to have a negative impact on Loomis's earnings per share for 2021. From full-year 2022 the initial negative impact is expected to have been recovered and the effect of the acquisition on Loomis's earnings per share is expected to be positive, compared the pre-transaction level. For further information, see Note 5.

Other

On June 3 Loomis announced the appointment of Stellan Abrahamsson as Chief Risk Officer for the Loomis Group and that he will assume the position on March 1, 2022. In addition to extensive experience in financial risk management from various positions in the banking and insurance industries, Stellan has served as Senior Group Supervisor at Finansinspektionen (Sweden's financial supervisory authority). He will be a member of Loomis Group Management and will report to the President and CEO of Loomis Group.

On July 8 it was announced that Loomis AB has signed a fiveyear credit agreement for a total of around EUR 265 million. This is a syndicated, revolving credit facility of USD 140 million, SEK 945 million and EUR 55 million. The loan will replace an existing revolving credit facility maturing in June 2022. The loan may be used to finance working capital and investments, and for other corporate purposes.

On July 22 it was announced that the Board of Directors of Loomis AB had decided to use the authorization granted by the 2021 Annual General Meeting to repurchase own shares to align Loomis's capital structure with the Company's capital requirements. A total of 554,985 shares have been repurchased for around SEK 150 million. Loomis total holdings of own shares are 608,782 shares. The total number of issued shares, including the Company's holdings of own shares, is 75,279,829.

Events after the end of the period

On October 7 it was announced that the following representatives for Loomis AB's shareholders will be members of the Nomination Committee ahead of the 2022 Annual General Meeting: Elisabet Jamal Bergström, appointed by SEB Fonder and Chair of the Nomination Committee, Bernard Horn, appointed by Polaris Capital Management, Peter Lundkvist, appointed by Tredje AP-fonden, Jacob Lundgren, appointed by Andra AP-fonden and Robin Nestor, appointed by Lannebo Fonder. The Company's Chair, Alf Göransson, has convened the Nomination Committee to its first meeting and will also be co-opted to the Committee.

Loomis Pay keeps expanding to new markets. In October Loomis has signed a cooperation agreement, in Norway, with Aera (Aera Payment & Identification AS). Aera is a joint venture between

leading Norwegian retailers NorgesGruppen and Coop, and strong within identification for payments and digital payment services in the enterprise segment. The agreement is beneficial for both Loomis and Aera. Loomis will, for example, quickly get access to Norwegian payment services such as BankAxept. The cooperation also enables Loomis and Aera to access each other's networks. Customers in Norway will be offered modern and cost efficient hardware and software for management of digital payments.

On October 20, Loomis was notified that the Chilean antitrust agency has filed a complaint in Chile against Loomis' Chilean subsidiary, and two of Loomis' competitor companies in the Chilean market, for involvement in an illegal cartel. The authority has requested that Loomis is ordered to pay a fine of USD 6.4 million. The court proceedings are expected to commence during 2022. Loomis takes all accusations of violations of the law very seriously but will also respond to all allegations. Loomis does not provide for this case in the balance sheet as the criteria for provisions, according to IAS 37, are not considered to be met.

On November 2 it was announced that the Board of Directors of Loomis AB has resolved to exercise the authorization, granted by the annual general meeting 2021, to repurchase own shares to adapt Loomis' capital structure to the company's capital requirements. The Board resolved that the repurchase may commence on November 4, 2021, end not later than on January 4, 2022, and comprise an amount up to a maximum of SEK 200 million.

Financial reports

CONSOLIDATED STATEMENT OF INCOME

	Note	2021	2020	2021	2020	R12	2020
SEK m		Quarter 3	Quarter 3	Nine months	Nine months	Twelve months	Full year
Revenue		4,892	4,641	13,786	14,000	18,241	18,454
Revenue, acquisitions		243	68	611	277	694	359
Total revenue	3,4	5,135	4,709	14,397	14,277	18,934	18,813
Production expenses		–3,705	–3,489	–10,566	–10,699	–13,882	–14,015
Gross income		1,431	1,220	3,832	3,578	5,052	4,798
Selling and administration expenses		–850	–702	–2,465	–2,270	–3,219	–3,024
Operating income (EBITA)		581	517	1,367	1,308	1,833	1,775
Amortization of acquisition-related intangible assets		–31	–26	–95	–81	–122	–109
Acquisition-related costs and revenue	5	–9	–37	–29	–88	–104	–163
Items affecting comparability	6	–52	–40	–52	–86	–166	–200
Operating income (EBIT)		489	414	1,191	1,054	1,441	1,304
Financial income		15	3	49	19	61	31
Financial expenses		–54	–49	–157	–161	–207	–211
Loss on monetary net assets/liabilities		–12	–7	–38	–19	–47	–28
Income before taxes		437	361	1,045	893	1,248	1,096
Income tax		–140	–115	–299	–280	–400	–380
Net income for the period1)		297	246	746	613	849	716
Earnings per share, SEK
Earnings per share before dilution		3.96	3.27	9.92	8.15	11.29	9.52
Earnings per share after dilution		3.95	3.27	9.92	8.15	11.29	9.52
Number of shares
Number of outstanding shares (million)		74.7	75.2	74.7	75.2	74.7	75.2
Average number of outstanding shares before dilu tion (million)		75.1	75.2	75.2	75.2	75.2	75.2
Average number of outstanding shares after dilution (million)		75.2	75.2	75.2	75.2	75.2	75.2

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2021	2020	2021	2020	R12	2020
Quarter 3	Quarter 3	Nine months	Nine months	Twelve months	Full year
297	246	746	613	849	716
–128	–52	106	–77	180	–3
286	–258	608	–286	–333	–1,227
–28	36	–55	19	45	119
130	–273	659	–343	–108	–1,110
427	–27	1,405	270	741	–394

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

CONSOLIDATED BALANCE SHEET

Note	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
ASSETS
Fixed assets
Goodwill 5	6,913	7,177	6,884
Acquisition-related intangible assets 5	730	475	486
Other intangible assets	391	247	269
Buildings and land	953	1,012	942
Machinery and equipment	4,250	4,420	4,158
Right-of-use assets	2,916	2,759	2,645
Contract assets	149	159	139
Deferred tax assets	429	498	476
Pension plan assets	282	205	304
Interest-bearing financial fixed assets	454	395	361
Other long-term receivables	285	196	231
Total fixed assets	17,752	17,542	16,894
Current assets
Accounts receivable	2,655	2,409	2,199
Other current receivables	218	161	156
Current tax assets	398	529	290
Prepaid expenses and accrued income	638	608	488
Interest-bearing financial current assets	41	53	67
Liquid funds 7	6,124	5,464	4,802
Total current assets	10,074	9,223	8,002
TOTAL ASSETS	27,826	26,765	24,896
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 9
Share capital	376	376	376
Other capital contributed	4,594	4,594	4,594
Other reserves	764	1,184	344
Retained earnings including net income for the year	3,859	3,695	3,458
Non-controlling interest	–	1	1
Total shareholders' equity	9,593	9,850	8,773
Long-term liabilities
Interest-bearing non-current lease liabilities	2,291	2,199	2,105
Loans payable	4,704	5,120	5,723
Deferred tax liabilities	511	550	402
Provisions for claims reserves	461	433	389
Provisions for pensions and similar commitments	756	854	834
Other provisions	103	100	106
Other long-term liabilities	153	165	110
Total long-term liabilities	8,977	9,421	9,669
Current liabilities
Interest-bearing current lease liabilities	654	558	546
Loans payable	1,440	239	199
Accounts payable	592	571	600
Provisions for claims reserves	233	360	187
Current tax liabilities	193	198	184
Liabilities, cash processing operations	3,627	3,150	2,468
Accrued expenses and prepaid income	1,842	1,706	1,514
Other provisions	54	103	186
Other current liabilities	621	609	570
Total current liabilities	9,257	7,494	6,454
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	27,826	26,765	24,896

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2021	2020	2020
SEK m	Nine months	Nine months	Full year
Opening balance	8,773	9,592	9,592
Actuarial gains and losses after tax	106	–77	–3
Exchange rate differences	608	–286	–1,227
Hedging of net investments, net of tax	–55	19	119
Total other comprehensive income	659	–343	–1,110
Net income for the period	746	613	716
Total comprehensive income1)	1,405	270	–394
Dividend paid to Parent Company's shareholders	–451	–	–414
Share-related remuneration	8	–12	–11
Acquisition of own shares	–141	–	–
Non-controlling interest	–1	0	0
Closing balance	9,593	9,850	8,773

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

CONSOLIDATED STATEMENT OF CASH FLOWS

		2021	2020	2021	2020	2020
SEK m	Note	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Operations
Income before taxes		437	361	1,045	893	1,096
Depreciation and amortization		517	487	1,506	1,514	1,979
Other items not affecting cash flow		91	117	89	262	390
Financial items received		8	9	21	20	24
Financial items paid		–56	–57	–165	–171	–231
Income tax paid		–87	–159	–336	–419	–483
Change in accounts receivable		–216	–285	–358	171	268
Change in other operating capital employed and other items		183	226	22	174	–52
Cash flow from operations		877	699	1,825	2,444	2,993
Investing activities
Investments in fixed assets		–287	–192	–707	–766	–1,014
Disposals of fixed assets		1	22	5	35	28
Acquisitions of operations	5	–	–125	–161	–308	–853
Cash flow from investing activities		–286	–296	–864	–1,039	–1,839
Financing activities
Dividend paid		–	–	–451	–	–414
Acquisition of own shares		–141	–	–141	–	–
Issuance of commercial papers and other long-term borrowing		150	–	868	1,500	2,181
Redemption of commercial papers and other long-term borrowing		–	–508	–460	–1,968	–1,968
Change in other interest-bearing net debt		–114	–10	–735	–482	–420
Cash flow from financing activities		–106	–518	–919	–950	–621
Cash flow for the period		485	–114	41	455	533
Liquid fund at beginning of the period1)		1,634	2,212	2,056	1,655	1,655
Translation differences in liquid funds		24	–26	46	–38	–132
Liquid funds at end of period1)		2,143	2,072	2,143	2,072	2,056

1) Excluding liquid funds within cash processing operations. See also Note 7 Liquid funds.

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

	2021	2020	2021	2020	R12	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Twelve months	Full year
Operating income (EBITA)1)	564	503	1,319	1,266	1,771	1,718
Depreciation1)	308	318	916	978	1,204	1,266
Change in accounts receivable	–216	–285	–358	171	–261	268
Change in other operating capital employed and other items1)	184	222	13	172	–207	–48
Cash flow from operating activities before investments	841	758	1,889	2,587	2,506	3,204
Investments in fixed assets, net	–286	–170	–703	–731	–958	–986
Cash flow from operating activities	555	587	1,187	1,856	1,549	2,218
Financial items paid and received1)	–26	–25	–77	–77	–109	–109
Income tax paid	–87	–159	–336	–419	–399	–483
Free cash flow	442	404	775	1,360	1,040	1,626
Cash flow effect of items affecting comparability	–4	0	–73	–1	–111	–39
Acquisition of operations	–	–125	–161	–308	–707	–853
Acquisition-related costs and revenue, paid and received2)	–18	–13	–65	–71	–135	–141
Dividend paid	–	–	–451	–	–865	–414
Acquisition of own shares	–141	–	–141	–	–141	–
Issuance of commercial papers and other long-term borrowing	150	–	868	1,500	1,549	2,181
Redemption of commercial papers and other long-term borrowing	–	–508	–460	–1,968	–460	–1,968
Change in other interest-bearing net debt1)	56	129	–249	–57	–51	141
Cash flow for the period	485	–114	41	455	119	533

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 (IFRIC).

This interim report has been prepared according to IAS 34 Interim Financial Reporting. The most important accounting principles according to IFRS, which are the accounting standards used in the preparation of this interim report, are described in the 2020 Annual Report.

New or changed standards and interpretations that entered into force on January 1, 2021 are not expected to have any material effect on the Group's financial statements.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 97–98 and 128 of the 2020 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.

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 are risks both in terms of circumstances pertaining to Loomis itself and 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.
• Credit risk pertaining to financial and commercial activities.
• Financing risk relating to the Company's capital requirements.
• Liquidity risk associated with short-term solvency.
• Capital risk pertaining to the capital structure.
• Price risk regarding changes in raw material prices (mainly fuel).

The financial risks are described in more detail in Note 22 in the 2020 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 and the ongoing pandemic during the first nine months of 2021 impacted certain geographic areas negatively and Loomis's revenue and earnings were adversely affected as a result.

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 2021 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2020 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

	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total
SEK m			Quarter 3 2021					Quarter 3 2020
Cash in transit (CIT)	1,569	1,516	–	–	3,085	1,537	1,360	–	–	2,896
Cash management services (CMS)	710	840	–	–	1,550	669	748	–	–	1,417
International	198	94	–	–	292	205	76	–	–	281
Other (FX etc.)	194	11	3	–	208	108	5	3	–	115
Revenue, internal	17	12	–	–29	–	7	13	–	–20	–
Total revenue	2,688	2,473	3	–29	5,135	2,526	2,201	3	–20	4,709
Timing of revenue recognition, external
At a point in time	531	83	1	–	615	370	75	–	–	445
Over time	2,140	2,378	2	–	4,520	2,149	2,112	3	–	4,264
Total external revenue	2,671	2,461	3	–	5,135	2,518	2,188	3	–	4,709

	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total
			Nine months					Nine months
SEK m			2021					2020
Cash in transit (CIT)	4,275	4,349	–	–	8,624	4,483	4,307	–	–	8,790
Cash management services (CMS)	1,884	2,390	–	–	4,275	1,902	2,324	–	–	4,226
International	625	249	–	–	874	581	239	–	–	820
Other (FX etc.)	583	35	6	–	624	423	14	3	–	440
Revenue, internal	44	31	–	–76	–	31	29	–	–60	–
Total revenue	7,412	7,055	6	–76	14,397	7,420	6,914	3	–60	14,277
Timing of revenue recognition, external
At a point in time	1,438	237	2	–	1,677	1,114	237	–	–	1,352
Over time	5,930	6,787	4	–	12,721	6,275	6,647	3	–	12,925
Total external revenue	7,368	7,024	6	–	14,397	7,389	6,885	3	–	14,277

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2021	2020	2021	2020	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
USA	2,473	2,201	7,055	6,914	9,098
France	720	799	2,009	2,266	2,962
Spain	359	348	986	1,002	1,327
Switzerland	383	229	917	685	908
UK	253	239	681	805	1,028
Other countries and eliminations	947	893	2,750	2,605	3,490
Total revenue	5,135	4,709	14,397	14,277	18,813

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. The Loomis Pay payment platform was introduced in autumn 2020 and will be rolled out country by country. The Loomis Pay segment is supervised by a segment 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, Loomis Pay and Group-wide functions. Presidents for the segments are responsible for following up the segments' operating income before amortization of acquisition-related 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.

REVENUE

			2020					2021
SEK m	Q1	Q2	Q3		Q4 Full year	Q1	Q2	Q3		Q4 Full year
Region Europe	2,842	2,052	2,526	2,368	9,788	2,268	2,456	2,688	–	–
Region USA	2,507	2,206	2,201	2,184	9,098	2,234	2,348	2,473	–	–
Loomis Pay	–	–	3	4	7	2	1	3	–	–
Group-wide functions1)	–	–	–	–	–	–	–	–	–	–
Eliminations	–20	–20	–20	–19	–79	–21	–25	–29	–	–
Total revenue	5,329	4,239	4,709	4,537	18,813	4,483	4,779	5,135	–	–

OPERATING INCOME (EBITA)

			2020					2021
SEK m	Q1	Q2	Q3		Q4 Full year	Q1	Q2	Q3		Q4 Full year
Region Europe	276	–71	238	144	588	69	148	300	–	–
Region USA	371	332	340	382	1,425	363	363	359	–	–
Loomis Pay	–	–16	–22	–30	–68	–32	–33	–36	–	–
Group-wide functions1)	–58	–44	–38	–30	–171	–42	–51	–42	–	–
Eliminations	–	–	–	–	–	–	–	–	–
Operating income (EBITA)	589	202	517	467	1,775	358	428	581	–	–

1) The Group-wide functions segment (formerly segment Other) has been restated for Q2, Q3 and Q4 2020 with amounts relating to Loomis Pay, which is reported as a separate segment as from Q1 2021.

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Nine months 2021
Revenue	6,826	7,032	3	–	–76	13,786
Revenue, acquisitions	585	23	3	–	–	611
Total revenue	7,412	7,055	6	–	–76	14,397
Production expenses	–5,718	–4,895	–22	–6	76	–10,566
Gross income	1,693	2,160	–16	–6	–	3,832
Selling and administrative expenses	–1,177	–1,074	–85	–128	–	–2,465
Operating income (EBITA)	516	1,085	–101	–134	–	1,367
Amortization of acquisition-related intangible assets	–84	–10	0	–	–	–95
Acquisition-related costs	–21	–2	–	–7	–	–29
Items affecting comparability	–52	–	–	–	–	–52
Operating income (EBIT)	359	1,074	–101	–141	–	1,191
Net financial items	–	–	–	–108	–	–108
Loss on monetary net assets/liabilities	–	–	–	–38	–	–38
Income before taxes	359	1,074	–101	–287	–	1,045

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Nine months 2020
Revenue	7,148	6,912	–	–	–60	14,000
Revenue, acquisitions	272	2	3	–	–	277
Total revenue	7,420	6,914	3	–	–60	14,277
Production expenses	–5,883	–4,855	–40	–	80	–10,699
Gross income	1,537	2,058	–38	–	20	3,578
Selling and administrative expenses	–1,094	–1,015	0	–141	–20	–2,270
Operating income (EBITA)	443	1,043	–38	–141	–	1,308
Amortization of acquisition-related intangible assets	–66	–15	0	–	–	–81
Acquisition-related costs	–67	–2	–7	–12	–	–88
Items affecting comparability	–86	–	–	–	–	–86
Operating income (EBIT)	225	1,027	–45	–153	–	1,054
Net financial items	–	–	–	–142	–	–142
Loss on monetary net assets/liabilities	–	–	–	–19	–	–19
Income before taxes	225	1,027	–45	–314	–	893

SEGMENT OVERVIEW BALANCE SHEET

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Europe
Assets	10,854	10,647	10,543
Liabilities	6,514	6,253	5,344
USA
Assets	10,343	9,955	9,079
Liabilities	1,761	1,632	1,494
Other 1)
Assets	6,629	6,163	5,274
Liabilities	9,958	9,030	9,285
Shareholders' equity	9,593	9,850	8,773
Group total
Assets	27,826	26,765	24,896
Liabilities	18,233	16,915	16,123
Shareholders' equity	9,593	9,850	8,773

1) Segment Other includes of Group-wide functions and Loomis Pay.

NOTE 5 – ACQUISITIONS

	Consolidated as of	Segment	Acquired share1) %	Annual revenue SEK m	Number of employees	Purchase price SEK m	Goodwill SEK m	Acquisition related intangible assets SEK m	Other acquired net assets SEK m
Opening balance, January 1, 2021							6,884	486
Acquisition of SecurePost AG4)	May	Europe	n/a	6082)	440	1613)	545)	102	5
Total acquisitions January – September 2021							54	102	5
Adjustment of final acquisition analyses6)							–250	236	13
Goodwill impairment within the European segment							–52	–
Amortization of acquisition related intangible assets							–	–95
Exchange rate differences							277	1
Closing balance September 30, 2021							6,913	730

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

2) Estimated annual revenue 2020.

3) The enterprise value, i.e. the purchase price payable on a debt free basis, on the acquisition date amounted to around SEK 161 million.

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

5) Goodwill arising in connection with the acquisition is primarily attributable to market and synergy effects.

6) Refers to adjustment of the final acquisition analysis from the acquisition of Automatia Pankkiautomaatit Oy as well as from one smaller acquisition completed in 2020.

Acquisition of Automatia Pankkiautomaatit Oy, Finland

Final acquisition analysis from the acquisition of Automatia Pankkiautomaatit OY was established during the first quarter of 2021. The acquisition balance was adjusted in accordance to the table below.

Summarized balance sheet from the acquisition of Automatia Pankkiautomaatit Oy at the date of acquisition, December 2, 2020.

SEK m	Preliminary acquisition balance	Final acquisition balance
Intangible assets	31	267
Tangible assets	94	94
Accounts receivable and other receivables	27	27
Liquid funds	210	210
Interest-bearing liabilities	–15	–15
Accounts payable and other operating liabilities	–49	–49
Deferred tax liability	–	–47
Net identifiable assets and liabilities	297	487
Purchase price paid	545	545
Goodwill	248	58

Acquisition of SecurePost AG, Switzerland

Loomis AB has acquired the operations of SecurePost AG, Switzerland, through the wholly owned subsidiary Loomis Schweiz AG. The acquisition took form in a transfer of assets and liabilities. A preliminary balance sheet is presented in the table below.

Summarized balance sheet from the acquisition of assets and liabilities of SecurePost AG at the date of acquisition, May 3, 2021.

SEK m	Preliminary acquisition balance
Intangible assets	102
Funds in cash processing operations	406
Financing of funds in cash processing operations	–406
Other assets and liabilities	5
Net identifiable assets and liabilities	107
Purchase price paid	161
Goodwill	54

The acquisition has, as from the time of acquisition up to September 30, 2021, contributed approximately SEK 250 million to total revenue and approximately SEK –14 million to net income. If the acquisition had been completed on January 1, 2021, Loomis estimates the Group's total revenue would have been affected by approximately SEK 439 million and net income by SEK –25 million. Total transaction costs for the acquisition amounted to approximately SEK 7 million and have been recognized on the line Acquisition related costs.

NOTE 6 – ITEMS AFFECTING COMPARABILITY

	2021	2020	2021	2020	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Restructuring costs within the European segment	–	–49	–	–49	–162
Goodwill impairment within the European segment	–52	–	–52	–46	–46
Provisions/resolutions regarding legal processes	–	9	–	9	9
Total items affecting comparability	–52	–40	–52	–86	–200

NOTE 7 – LIQUID FUNDS

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Liquid funds	6,124	5,464	4,802
Adjusted for inventory of cash at the cash processing operations	–2,533	–2,200	–2,134
Adjusted for prepayments from customers	–1,447	–1,193	–612
Liquid funds excluding funds for cash processing activities	2,143	2,072	2,056

NOTE 8 – TRANSACTIONS WITH RELATED PARTIES

Transactions between Loomis and related parties are described in Note 30 of the 2020 Annual Report. There have been no transactions with related parties during the period that have materially impacted the Company's earnings and financial position.

NOTE 9 – NUMBER OF SHARES AS OF SEPTEMBER 30, 2021

	No. of shares		No. of votes Quota value	SEK m
Shares	75,279,829	75,279,829	5	376
Total no. of shares	75,279,829	75,279,829		376
Total treasury shares1)	–608,782	–608,782
Total no. of outstanding shares	74,671,047	74,671,047

1) The number of treasury shares increased during the period by 554,985 due to the share repurchase program previously decided upon and communicated.

NOTE 10 – CONTINGENT LIABILITIES, GROUP

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Guarantees and other commitments	2,303	2,309	2,191

KEY RATIOS

	2021	2020	2021	2020	R12	2020
			Nine	Nine	Twelve
	Quarter 3	Quarter 3	months	months	months	Full year
Real growth, %	10.8	–7.5	8.2	–8.0	4.0	–7.8
Organic growth, %	5.7	–8.7	3.9	–9.5	0.5	–9.4
Total growth, %	9.1	–14.3	0.8	–9.1	–3.5	–10.6
Gross margin, %	27.9	25.9	26.6	25.1	26.7	25.5
Selling and administration expenses in % of total revenue	–16.5	–14.9	–17.1	–15.9	–17.0	–16.1
Operating margin (EBITA), %	11.3	11.0	9.5	9.2	9.7	9.4
Tax rate, %	32	32	29	31	32	35
Net margin, %	5.8	5.2	5.2	4.3	4.5	3.8
Return on shareholders' equity, %	8.8	10.4	8.8	10.4	8.8	8.2
Return on capital employed, %	11.1	12.4	11.1	12.4	11.1	11.5
Equity ratio, %	34.5	36.8	34.5	36.8	34.5	35.2
Liquid funds excluding funds within cash processing operations (SEK m)	2,143	2,072	2,143	2,072	2,143	2,056
Net debt (SEK m)	6,925	6,245	6,925	6,245	6,925	6,619
Net debt/EBITDA	1.88	1.60	1.88	1.60	1.88	1.82
Cash flow from operating activities as % of operating income (EBITA)1)	96	114	87	142	84	125
Investments in relation to depreciation	0.6	0.4	0.5	0.5	0.5	0.5
Investments as a % of total revenue	5.6	3.6	4.9	5.1	5.1	5.2
Earnings per share before dilution, SEK	3.96	3.27	9.92	8.15	11.29	9.52
Shareholders' equity per share before dilution, SEK	127.75	130.94	127.75	130.94	127.75	116.62
Cash flow from operating activities per share before dilution, SEK	11.67	9.29	24.27	32.49	31.56	39.79
Dividend per share, SEK	–	–	6.00	–	11.50	5.50
Number of outstanding shares (millions)	74.7	75.2	74.7	72.2	74.7	75.2
Average number of outstanding shares before dilution (millions)	75.1	75.2	75.2	75.2	75.2	75.2

1) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2021	2020	2020
SEK m	Nine months	Nine months	Full year
Revenue	428	278	444
Operating income (EBIT)	230	118	238
Income after financial items	297	138	461
Net income for the period	330	114	400

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The increase in net income is mainly due to higher levels of invoicing for this income (SEK 150 million), higher dividends from subsidiaries (SEK 39 million) and repayment of income tax from previous years.

PARENT COMPANY SUMMARY BALANCE SHEET

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Fixed assets	12,881	12,287	12,687
Current assets	1,746	1,391	1,318
Total assets	14,627	13,678	14,005
Shareholders' equity	4,933	5,273	5,147
Liabilities	9,693	8,405	8,858
Total shareholders' equity and liabilities	14,627	13,678	14,005

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

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Guarantees and other commitments	5,416	5,113	4,585

Alternative performance measures

Use of alternative performance measures

To support Group Management and other stakeholders to analyze the Group's financial performance, Loomis reports certain performance measures that are not defined by IFRS. Group Management believes that this information facilitates analysis of the Group's performance. The Loomis Group primarily uses the following alternative performance measures (see also Definitions on page 24 for a full list of measures):

• Real growth and Organic growth in sales
• Operating income (EBITA) and Operating margin (EBITA), %
• Cash flow from operating activities as % of operating income (EBITA)
• Net debt and Net debt/EBITDA
• Equity ratio, %
• Capital employed and Return on capital employed
• Return on shareholders' equity

Real growth and Organic growth in sales

Since Loomis generates most of its revenue in currencies other than the reporting currency (i.e. Swedish kronor, SEK) and exchange rates have historically proved to be relatively volatile, and since the Group has made a number of acquisitions, sales growth is presented both as exchange rate adjusted and adjusted for both exchange rate fluctuations and effects from acquisitions. This makes it possible to analyze and explain growth excluding exchange rate effects and acquisitions.

2021 2020 SEK m Quarter 3 Quarter 3 Growth Growth,% Recognized revenue 5,135 4,709 426 9.1 Organic growth 267 5.7 Revenue, acquisitions 243 5.2 Real growth 511 10.8 Exchange rate effects –85 –1.8

	2021	2020
SEK m	Nine months	Nine months		Growth Growth,%
Recognized revenue	14,397	14,277	121	0.8
Organic growth			558	3.9
Revenue, acquisitions			611	4.3
Real growth			1,170	8.2
Exchange rate effects			–1,049	–7.3

Cash flow from operating activities as % of operating income (EBITA)

Loomis's main measure of cash flow (cash flow from operating activities) focuses on the current cash flow from operating activities based on EBITA adding back amortization/depreciation and the effect of changes in accounts receivable, as well as changes in other working capital and other items. Cash flow from operating activities reflects the cash flow that the operating activities generate before payments of financial items, income tax, items affecting comparability, acquisitions and divestments, as well as dividends and changes in the Group's net debt. Cash flow from operating activities as a percentage of operating income (EBITA) illustrates the cash conversion that Loomis has, i.e. how recognized earnings have resulted in cash flow.

Loomis provides an alternative presentation of cash flow which includes cash flow from operating activities adjusted for the impact of IFRS 16 Leases. This is presented on page 12 of this report.

Operating income (EBITA) and Operating margin (EBITA), %

Loomis's internal control of operating activities is focused on the operating income that is created within and can be impacted by local operating activities. For this reason Loomis has chosen to focus on earnings and margins before interest, taxes, amortization of acquisition-related intangible fixed assets, acquisition-related costs and revenue, and items affecting comparability.

	2021	2020	2021	2020	2020
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Operating income (EBIT)	489	414	1,191	1,054	1,304
Adding back items affecting comparability	52	40	52	86	200
Adding back acquisition-related costs and revenue	9	37	29	88	163
Adding back amortization of acquisition-related intangible assets	31	26	95	81	109
Operating income (EBITA)	581	517	1,367	1,308	1,775
Calculation of operating margin (EBITA), %
EBITA	581	517	1,367	1,308	1,775
Total revenue	5,135	4,709	14,397	14,277	18,813
EBITA/Total revenue, %	11.3	11.0	9.5	9.2	9.4

Net debt and Net debt/EBITDA

Net debt is an important concept to understand a company's financing structure and leverage. Net debt is the net of interestbearing liabilities and assets, and is used together with shareholders' equity to finance the Group's capital employed. Loomis excludes funds within cash processing operations and financing of funds within cash processing operations (so-called stock funding) from the definition of net debt. The financial leverage is measured by calculating net debt as percentage of operating income after adding back amortization and depreciation, i.e. net debt/EBITDA.

Reconciliation of Net debt and calculation of Net debt/EBITDA

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Short-term loans	1,440	239	199
Long-term loans	4,704	5,120	5,723
Total loans payable	6,143	5,359	5,922
Liquid funds excluding funds in cash processing operations	2,143	2,072	2,056
Other interest-bearing assets	495	447	428
Financial net debt	3,505	2,840	3,438
Lease liabilities	2,945	2,757	2,651
Pension liabilities, net	474	649	530
Net debt	6,925	6,245	6,619

	2021	2020	2020
SEK m	Quarter 3	Quarter 3	Full year
Operating income (EBITA), R12	1,833	2,001	1,775
Adding back depreciation/ amortization, R12	1,849	1,909	1,871
EBITDA, R12	3,682	3,910	3,645
Net debt/EBITDA (number of times)	1.88	1.60	1.82

Equity ratio, %

The equity ratio is a measure that show the ratio of equity financing in relation to the company's total assets. The measure is used as an indication of financial strength and resilience to losses.

Reconciliation equity ratio, %

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Shareholders' equity	9,593	9,850	8,773
Total assets	27,826	26,795	24,896
Equity ratio, %	34.5	36.8	35.2

Capital employed and Return on capital employed, % Capital employed is a measure of how much capital is tied up in operating activities and that is therefore expected to generate returns in the form of operating income. Capital employed is equivalent to the sum of all financing in the form of net debt and shareholders' equity. Loomis includes funds within cash processing operations and financing of funds within cash processing operations (so-called stock funding) in the definition of capital employed.

Reconciliation of capital employed and return on capital employed, %

	2021	2020	2020
SEK m	Sep 30	Sep 30	Dec 31
Fixed assets
Goodwill	6,913	7,177	6,884
Acquisition-related intangible assets	730	475	486
Other intangible assets	391	247	269
Buildings and land	953	1,012	942
Machinery and equipment	4,250	4,420	4,158
Right-of-use assets	2,916	2,759	2,645
Other operating fixed assets1)	863	853	846
Current assets
Accounts receivable	2,655	2,409	2,199
Other operating current assets2)	1,255	1,298	934
Funds in cash processing operations	3,980	3,392	2,746
Long-term liabilities
Deferred tax liability	–511	–550	–402
Provisions for claims reserves	–461	–433	–389
Other provisions	–103	–100	–106
Other long-term liabilities	–153	–165	–110
Current liabilities
Accounts payable	–592	–571	–600
Liabilities in cash processing operations	–3,627	–3,150	–2,468
Accrued expenses and prepaid income	–1,842	–1,706	–1,514
Other operating current liabilities3)	–1,101	–1,270	–1,127
Capital employed	16,517	16,097	15,392
Operating income (EBITA), R12	1,833	2,001	1,775
Return on capital employed, %	11.1	12.4	11.5

1) Includes the items "Contract assets", "Deferred tax assets" and "Other long-term receivables".

2) Includes the items "Other current receivables", "Current tax assets", and "Prepaid expenses and accrued income".

3) Includes the items "Provisions for claims reserves", "Current tax liabilities, "Other provisions" and "Other current liabilities".

Return on shareholders' equity

Return on shareholders' equity is an important concept to understand a company's return on the capital that the shareholders have injected and earned. The return is calculated as earnings for the period (rolling 12 months) as a percent of the closing balance for shareholders' equity.

	2021	2020	2020
SEK m	Quarter 3 Quarter 3		Full year
Net income for the period, R12	849	1,021	716
Shareholders' equity	9,593	9,850	8,773
Return on equity, %	8.8	10.4	8.2

Definitions

Gross margin, %	Gross income as a percentage of total revenue.
Operating income (EBITA)	Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
Operating margin (EBITA), %	Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability, as a percentage of revenue.
Operating income (EBITDA)	Earnings Before Interest, Taxes, Depreciation, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
Operating income (EBIT)	Earnings Before Interest and Tax.
Items affecting comparability	Items affecting comparability are reported events and transactions whose impact are important to note when the period's results are compared with previous periods, such as capital gains and capital losses from divestments of significant cash generating units, material write-downs or other significant items affecting comparability.
Real growth, %	Increase in revenue for the period, adjusted for changes in exchange rates, as a percentage of the previous year's revenue.
Organic growth, %	Increase in revenue for the period, adjusted for acquisition/divestitures and changes in exchange rates, as a percentage of the previous year's revenue adjusted for divestitures.
Total growth, %	Increase in revenue for the period as a percentage of the previous year's revenue.
Net margin, %	Net income for the period after tax as a percentage of total revenue.
Earnings per share before dilution	Net income for the period in relation to the average number of outstanding shares during the period.
Earnings per share after dilution	Net income for the period in relation to the average number of outstanding shares after dilution during the period.
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 before and 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.
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.
Capital employed	Shareholders' equity with the addition of net debt.
Net debt	Interest-bearing liabilities less interest-bearing assets and liquid funds excluding funds for cash processing activities.
R12	Rolling 12 months.
n/a	Not applicable.

Outlook 2021

The company is not providing any forecast information for 2021.

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 faced by the Parent Company and the companies in the Group.

Stockholm, November 3, 2021

Patrik Andersson President and CEO

Review Report

Introduction

We have reviewed the interim report for Loomis AB (publ) for the period January 1 – September 30, 2021. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a

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

Conclusion

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

Stockholm, November 3, 2021

Deloitte AB

Peter Ekberg Authorized Public Accountant

Loomis in brief

Vision

Managing cash in society.

Financial targets 2018–2021

• 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 23,000 people and had revenue in 2020 of approximately SEK 19 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.

Telephone conference and audio cast

A telephone conference will be held on November 3, 2021 at 09:00 a.m. (CET).

To follow the conference call via telephone and to participate in the question and answer session, please call: UK: + 44 333 300 9261 USA: + 1 646 722 4957 Sweden: + 46 8 566 426 93

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

Full-year report	January – December	February 3, 2022
Interim Report	January – March	May 4, 2022
Interim Report	January – June	July 22, 2022
Interim Report	January – September	October 28, 2022

For further information

Anders Haker, Chief Investor Relations Officer +1 281 795 8580, e-mail: anders.haker@loomis.com Refer also to the Loomis website: www.loomis.com

This information is information that Loomis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 a.m. (CET) on November 3, 2021.

Loomis AB (publ.) Corporate Identity Number 556620-8095, PO Box 702, SE-101 33 Stockholm, Sweden. Telephone: +46 8-522 920 00, www.loomis.com