Loomis — Interim / Quarterly Report 2021

May 6, 2021

Interim report January–March 2021

a

Quarter 1, 2021

• Revenue SEK 4,483 million (5,329). Real growth –6 percent (2) of which organic growth –9 percent (0).
• Operating income (EBITA)1) SEK 358 million (589) and operating margin 8.0 percent (11.0). Loomis Pay progresses according to plan and SEK 32 million was recorded as net costs. Excluding Loomis Pay, the operating margin was 8.7 percent (11.0).
• Income before tax SEK 269 million (490) and income after tax SEK 198 million (365).
• Earnings per share before and after dilution SEK 2.63 (4.85).
• Cash flow2) from operating activities SEK 342 million (768), equivalent to 96 percent (130) of operating profit (EBITA).
• The ongoing coronavirus pandemic had an overall negative impact on revenue and operating income during the quarter. Significant differences compared to the first quarter of 2020 are related to the pandemic.

KEY RATIOS

	2021	2020		2020
SEK m	Quarter 1	Quarter 1	Change (%)	Full year
Revenue	4,483	5,329	–15.9	18,813
Of which:
Organic growth	–461	0	–8.7	–1,968
Acquisitions and divestments	136	90	2.6	326
Exchange rate effects	–521	233	–9.8	–589
Total growth	–846	323	–15.9	–2,231
Operating income (EBITA)1)	358	589	–39	1,775
Operating margin (EBITA), %1)	8.0	11.0		9.4
Operating income (EBIT)	315	544	–42	1,304
Earnings before tax	269	490	–45	1,096
Profit for the period	198	365	–46	716
SEK earnings per share, SEK1)	2.63	4.85	–46	9.52
Tax rate, %	27	25		35
Cash flow from operating activities2)	342	768	–55	2,218
Cash flow from operating activities as % of operating income (EBITA)2)	96	130		125

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. See also under "Alternative performance measures" on pages 21–22 and "Definitions" on page 23.

An explanation and reconciliation of alternative performance measures can be found on pages 21–22 of this report.

Comments by the President and CEO

Impact of the pandemic

Once the vaccination programs, now under way in our communities, yield results, positive effects will gradually be realized for Loomis. Unlike much of last year, we feel that the optimism has returned in our business as the possibility of eased restrictions has improved.

Compared with the fourth quarter 2020, the impact on our operations in the first quarter this year was more extensive as many areas in multiple European countries were in lockdowns throughout the quarter. Our branches took comprehensive measures to reduce costs early on when the pandemic broke out and revenues were decreasing. We will continue to benefit from these measures once volumes return. Whether we are in a pandemic or not, the health and safety of our employees is our top priority and also essential in order to maintain a high level of access to our services and personnel. Since the pandemic broke out we have succeeded in keeping the virus away from our workplaces and in our contacts with the external environment.

Acquisition in Switzerland

At the end of March we announced an agreement reached by Loomis to acquire the cash handling operations of the Swiss Post. The revenue from these operations in 2020 was approximately CHF 66 million and the acquisition will allow us to further advance our positions in the Swiss market. Swiss Post's nationwide cash in transit (CIT) operations, cash management

services (CMS) and SafePoint portfolio provide a good complement to our own operations and will help us to develop our offering in all areas of the Swiss market.

Recent developments

In the first quarter the Group's real growth amounted to –6 percent (2), of which organic growth was –9 percent (0). The Group's operating margin (EBITA %) amounted to 8.0 percent (11.0). The operating margin has been negatively affected above all by the ongoing pandemic. Loomis pay progresses according to plan. Excluding Loomis Pay, the operating margin amounted to 8.7 percent (11.0).

The effects of the pandemic on our business that we experienced 2020 continued into the first quarter this year. The impact on our US operations was significantly lower than on our European operations. This is mainly due to a generally lower degree of lockdowns in the USA and the structure of our customer portfolios. In the USA we benefitted from the fact that a larger percentage of our revenue is based on fixed monthly fees. Fixed revenue from, for example, SafePoint and financial institutions is significantly higher in the USA than in Europe. In the US market our Safe-Point solution is experiencing sustained good development and rollout of the comprehensive agreement we signed with EG-US in the fourth quarter 2020 is progressing according to plan. Revenue from Safe-Point for the quarter in the USA increased by more than 11 percent, despite the ongoing pandemic. The operating margin in the USA in the first quarter amounted to 16.3 percent (14.8). It is fantastic to witness this positive development continuing quarter after quarter. Similar to previous years, a more profitable customer portfolio, higher revenue from SafePoint and efficiency improvements at our branches are the main contributing factors.

Segment Europe was hit hard by extensive lockdowns in the first quarter. However, the situation going forward will improve once the vaccination programs have the desired effect and communities open up again. The actions we have taken on the cost side will benefit us once volumes

Revenue, SEK billion

*Refers to the period April 1, 2020 – March 31, 2021.

Operating margin (EBITA), %

Annual dividend, %

the 2021 AGM.

increase. We are prepared to quickly adapt our operations when things return to normal in society.

The launch of Loomis Pay in Denmark began in October of last year. We are keeping up the pace and we have also been offering Loomis Pay in the Swedish market since February this year. The offer has been well received and several contracts have already been signed. Loomis Pay provides a solution to many of the challenges that merchants currently face in digital payment processes and also facilitates cash management. We intend to roll Loomis Pay out in more markets going forward. We have set challenging but realistic targets and we expect to generate revenue in excess of SEK 3 billion with a good operating margin within five years.

Upcoming Capital Markets Day

We are approaching the end of the strategy period that began in 2018 and cover the years 2018–2021. New targets for the next strategy period are currently being set and we intend to present our future focus and targets at an upcoming Capital Markets Day. Due to the ongoing pandemic the date has not yet been set. We look forward to being able to meet all of our stakeholders in person again.

Patrik Andersson President and CEO

The segments

Revenue, operating income and number of full-time employees

SEGMENT EUROPE

	2021	2020	2020
SEK m	Quarter 1	Quarter 1	Full year
Revenue	2,268	2,842	9,788
Sales growth, %	–20.2	4.7	–14.9
-of which organic growth, %	–18.7	–1.8	–15.4
-of which acquisitions / divestments, %	4.4	4.2	2.9
-of which exchange rate effects, %	–6.0	2.3	–2.5
Real growth, %	–14.2	2.4	–12.4
Operating income (EBITA)	69	276	588
Operating margin, %	3.0	9.7	6.0
Number of full-time employees	13,400	15,100	13,900

SEGMENT USA

	2021	2020	2020
SEK m	Quarter 1	Quarter 1	Full year
Revenue	2,234	2,507	9,098
Sales growth, %	–10.9	8.5	–5.6
-of which organic growth, %	2.8	2.2	–2.2
-of which acquisitions / divestments, %	0.3	–1.0	–0.2
-of which exchange rate effects, %	–14.0	7.3	–3.2
Real growth, %	3.1	1.2	–2.4
Operating income (EBITA)	363	371	1,425
Operating margin, %	16.3	14.8	15.7
Number of full-time employees	8,800	9,600	9,100

SEGMENT LOOMIS PAY

	2021	2020	2020
SEK m	Quarter 1	Quarter 1	Full year
Revenue	2	n/a	7
Sales growth, %	n/a	n/a	n/a
-of which organic growth, %	n/a	n/a	n/a
Real growth, %	n/a	n/a	n/a
Operating income (EBITA)	–32	n/a	–68
Operating margin, %	n/a	n/a	n/a

Revenue and earnings

Quarter 1, 2021

Group – revenue

Revenue for the quarter amounted to SEK 4,483 million (5,329). Real growth was –6 percent (2), of which organic growth was –9 percent (0). Most of the negative impact on revenue is due to the ongoing pandemic.

Segment Europe – revenue

Revenue for the quarter amounted to SEK 2,268 million (2,842). The real growth of –14 percent (2) was positively affected by revenue attributable to the acquisition of Nokas Värdehantering AB in Sweden in June 2020 and the acquisition of Automatia in Finland in December 2020. Organic growth was –19 percent (–2). Just as in most of 2020, the ongoing coronavirus pandemic has negatively affected revenue, and volumes have decreased significantly in most of the markets in Europe.

Segment USA – revenue

Revenue amounted to SEK 2,234 million (2,507) and real growth was 3 percent (1). Organic growth amounted to 3 percent (2). The US operations experienced a significantly lower negative impact from the pandemic than was the case 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, SafePoint and financial institutions is significantly higher in the USA than in Europe. Revenue for the quarter from SafePoint accounted for 18 percent (17) of the segment's total revenue.

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

Segment Loomis Pay – revenue

Revenue amounted to SEK 2 million (0). In the first quarter of 2021 Loomis Pay was rolled out in Sweden and is now available on both the Danish and Swedish markets. Loomis Pay was well received in both markets and revenue developed according to plan. As previously communicated, the target is revenue in excess of SEK 3 billion within five years.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 358 million (589) and the operating margin was 8.0 percent (11.0). The currency effect on operating income during the quarter was around SEK –66 million.

Segment Europe – operating income (EBITA)

The operating income (EBITA) amounted to SEK 69 million (276) and the operating margin was 3.0 percent (9.7). Just as in the second, third and fourth quarters of 2020, the impact of the pandemic on volumes in the first quarter of this year was clear, which resulted in a lower operating margin than the corresponding quarter in 2020. The activities carried out in 2020 to adapt costs to lower volumes continued to yield results. During the quarter several of Loomis's European companies received government grants, mainly to provide relief for furloughed employees. The total amount received was approximately SEK 26 million.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 363 million (371) and the operating margin was 16.3 percent (14.8). Many actions are contributing to the positive profitability development. The main factors that continue to promote good results are a more profitable customer portfolio, higher revenue from Safe-Point and efficiency improvement programs at the branches.

Segment Loomis Pay – operating income (EBITA)

The operating income (EBITA) amounted to SEK –32 million (0). 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 315 million (544), which includes amortization of acquisitionrelated intangible assets of SEK –33 million (–27) and acquisition-related costs of SEK –10 million (–18).

Income before tax of SEK 269 million (490) includes a net financial expense, including a loss on monetary net assets, of SEK –45 million (–54).

The tax expense for the quarter amounted to SEK –72 million (–125), which represents a tax rate of 27 percent (25).

Earnings per share before and after dilution amounted to SEK 2.63 (4.85).

Cash flow and investments

January – March 2021

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 342 million (768), equivalent to 96 percent (130) of operating income (EBITA).

Net investments in fixed assets during the period amounted to SEK –173 million (–386), which can be compared to depreciation (excluding the IFRS 16 effects) of SEK 306 million (336). Investments made during the period were mainly in buildings, vehicles, machinery and equipment. Investments in relation to depreciation for the period amounted to 0.4 (0.8).

Capital employed and financial position

Capital employed

The total capital employed as of March 31, 2021 was SEK 16,024 million (17,796 as of March 31, 2020), which represents 89 percent (83) of revenue. Return on capital employed amounted to 10 percent (15).

Shareholders' equity and financing

Shareholders' equity increased in the first quarter of 2021 by SEK 860 million to SEK 9,633 million as of March 31, 2021 (8,773 as of December 31, 2020). The change is largely explained by translation differences of SEK 542 million, net profit for the period of SEK 198 million and actuarial gains of SEK 167 million. The return on shareholders' equity was 6 percent (15) and the equity ratio was 38 percent (39).

Net debt amounted to SEK 6,391 million as of March 31, 2021 (7,058 as of December 31, 2020) and the net debt/EBITDA amounted to 1.89 (1.56).

As of March 31, 2021 the total long-term credit facilities amounted to around SEK 8.8 billion. Unutilized loan facilities amounted to around SEK 4.3 billion on March 31, 2021, of which 1.0 billion was used as back-up for outstanding commercial papers. Available liquid funds amounted to around SEK 1.9 billion (see Note 7).

Other events

Significant events during the period

The Board is proposing that the Annual General Meeting on May 6, 2021 vote in favor of establishing a new long-term incentive program ("LTIP 2021") for senior executives and a number of key individuals within Loomis Group. The proposal is based on the Board's assessment that the performance target for the long-term incentive program approved by an extraordinary shareholders' meeting in 2018 ("LTIP 2018–2021") will not be reached due to the ongoing

coronavirus pandemic, and accordingly no disbursements will be made under the program. The Board has also noted that two of Loomis's financial targets for 2018–2021 have been removed since the program began. This is also a consequence of the pandemic. The Board is proposing that LTIP 2021 be based on the same main terms and principles as LTIP 2018–2021, whereby: (i) investors must invest in shares in Loomis or allocate certain shares already earned, (ii) the participants must be employed within the Group for the duration of the program, and (iii) the outcome of LTIP 2021, in the form of so-called performance shares, is linked to a pre-determined performance target for growth in earnings per share being met. The purpose of LTIP 2021 is for the interests of executive management and other key individuals – a total of around 70 people – to coincide with those of other shareholders, thereby ensuring maximum, long-term value creation. The program is designed to create a long-term Group-wide focus on profit growth among the participants. It is also expected to make it easier for Loomis to recruit and retain senior executives and other key individuals. The Board of Directors intends to propose similar incentive programs to future Annual General Meetings.

To read the full LTIP 2021 proposal and other proposals by the Board to the 2021 AGM, please refer to the notice of the AGM, which is available on Loomis's website, www.loomis.com.

Acquisitions January – March 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, where 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 completion of the transaction. The enterprise value, i.e. the purchase price payable on a debt-free basis, amounted to around CHF 17.5 million.

SecurePost has a nationwide footprint 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 SafePoint portfolio.

The acquired operations are reported within Segment Europe and were consolidated into Loomis's accounts as of the closing of the transaction on May 3, 2021. The acquisition was not contingent upon approval from the authorities and the purchase price was payable on closing.

The current operating margin, EBITA, is negative and expected to be marginally positive on an integrated basis for 2022

following the partial realization of synergies. Once fully integrated over 2 years the acquired volumes are anticipated to reach profitability representing a post-synergy purchase multiple of approximately 4 times EBITA.

Including integration and transaction costs, the acquisition is expected to have a dilutive impact on the earnings per share of Loomis in 2021. From full-year 2022 the initial dilution is anticipated to be recovered and the acquisition accretive to pre-acquisition earnings per share.

Other

Events after the end of the period

There were no significant events after the closing day.

Financial reports

CONSOLIDATED STATEMENT OF INCOME

Note	2021	2020	R12	2020
			Twelve	Full year
				18,454
				359
				18,813
				–14,015
				4,798
	–744	–820	–2,948	–3,024
	358	589	1,544	1,775
	–33	–27	–115	–109
5	–10	–18	–155	–163
6	–	–	–200	–200
	315	544	1,075	1,304
	17	12	36	31
	–50	–59	–202	–211
	–12	–6	–33	–28
	269	490	876	1,096
	–72	–125	–327	–380
	198	365	549	716
	2.63	4.85	7.30	9.52
	75.2	75.2	75.2	75.2
	75.2	75.2	75.2	75.2
	75.2	75.2	75.2	75.2
	3,4	Quarter 1 4,346 136 4,483 –3,381 1,102	Quarter 1 5,213 116 5,329 –3,921 1,408	months 17,588 379 17,967 –13,476 4,491

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2021	2020	R12	2020
			Twelve
SEK m	Quarter 1	Quarter 1	months	Full year
Net income for the period	198	365	549	716
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses after tax	167	110	54	–3
Items that may be reclassified to the statement of income
Exchange rate differences	542	818	–1,503	–1,227
Hedging of net investments, net of tax	–45	–114	188	119
Other comprehensive income and expenses for the period, net after tax	663	814	–1,261	–1,110
Total comprehensive income for the period1)	861	1,180	–712	–394

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

CONSOLIDATED BALANCE SHEET

Note	2021	2020	2020
SEK m	Mar 31	Mar 31	Dec 31
ASSETS
Fixed assets
Goodwill 5	6,955	7,586	6,884
Acquisition-related intangible assets 5	696	477	486
Other intangible assets	284	218	269
Buildings and land	954	1,025	942
Machinery and equipment	4,222	5,164	4,158
Right-of-use assets	2,775	2,996	2,645
Contract assets	142	201	139
Deferred tax assets	498	487	476
Pension plan assets	476	481	304
Interest-bearing financial fixed assets	391	244	361
Other long-term receivables	246	222	231
Total fixed assets	17,640	19,101	16,894
Current assets
Accounts receivable	2,257	2,662	2,199
Other current receivables	185	178	156
Current tax assets	347	405	290
Prepaid expenses and accrued income	719	748	488
Interest-bearing financial current assets	38	6	67
Liquid funds 7	4,160	4,700	4,802
Total current assets	7,706	8,699	8,002
TOTAL ASSETS	25,346	27,800	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	839	2,133	344
Retained earnings including net income for the year	3,823	3,634	3,458
Non-controlling interest	1	1	1
Total shareholders' equity	9,633	10,738	8,773
Long-term liabilities
Interest-bearing non-current lease liabilities	2,204	2,372	2,105
Loans payable	5,369	5,948	5,723
Deferred tax liabilities	532	521	402
Provisions for claims reserves	415	489	389
Provisions for pensions and similar commitments	790	917	834
Other provisions	113	111	106
Other long-term liabilities	126	169	110
Total long-term liabilities	9,549	10,529	9,669
Current liabilities
Interest-bearing current lease liabilities	597	585	546
Loans payable	225	171	199
Accounts payable	589	648	600
Provisions for claims reserves	191	210	187
Current tax liabilities	215	242	184
Liabilities, cash processing operations	1,959	2,287	2,468
Accrued expenses and prepaid income	1,624	1,573	1,514
Other provisions	96	87	186
Other current liabilities	666	731	570
Total current liabilities	6,164	6,533	6,454
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	25,346	27,800	24,896

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2021	2020	2020
SEK m	Jan–Mar	Jan–Mar	Full year
Opening balance	8,773	9,592	9,592
Actuarial gains and losses after tax	167	110	–3
Exchange rate differences	542	818	–1,227
Hedging of net investments, net of tax	–45	–114	119
Total other comprehensive income	663	814	–1,110
Net income for the period	198	365	716
Total comprehensive income1)	861	1,180	–394
Dividend paid to Parent Company's shareholders	–	–	–414
Share-related remuneration	–1	–34	–11
Non-controlling interest	0	0	0
Closing balance	9,633	10,738	8,773

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

CONSOLIDATED STATEMENT OF CASH FLOWS

	2021	2020	2020
SEK m	Jan–Mar	Jan–Mar	Full year
Operations
Income before taxes	269	490	1,096
Depreciation and amortization	492	521	1,979
Other items not affecting cash flow	–26	39	390
Financial items received	7	8	24
Financial items paid	–52	–61	–231
Income tax paid	–83	–135	–483
Change in accounts receivable	34	98	268
Change in other operating capital employed and other items	–163	147	–52
Cash flow from operations	479	1,106	2,993
Investing activities
Investments in fixed assets	–174	–394	–1,014
Disposals of fixed assets	2	7	28
Acquisitions of operations	–	–	–853
Cash flow from investing activities	–173	–386	–1,839
Financing activities
Dividend paid	–	–	–414
Issuance of commercial papers	–	–	575
Redemption of commercial papers	–155	–375	–1,460
Change in other interest-bearing net debt	–371	126	678
Cash flow from financing activities	–526	–249	–621
Cash flow for the period	–219	470	533
Liquid fund at beginning of the period1)	2,056	1,655	1,655
Translation differences in liquid funds	52	79	–132
Liquid funds at end of period1)	1,888	2,204	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	R12	2020
			Twelve
SEK m	Jan–Mar	Jan–Mar	months	Full year
Operating income (EBITA)1)	342	573	1,487	1,718
Depreciation1)	306	336	1,236	1,266
Change in accounts receivable	34	98	204	268
Change in other operating capital employed and other items1)	–167	148	–362	–48
Cash flow from operating activities before investments	515	1,154	2,565	3,204
Investments in fixed assets, net	–173	–386	–772	–986
Cash flow from operating activities	342	768	1,792	2,218
Financial items paid and received1)	–23	–26	–106	–109
Income tax paid	–83	–135	–431	–483
Free cash flow	237	607	1,256	1,626
Cash flow effect of items affecting comparability	–54	0	–93	–39
Acquisition of operations	–	–	–853	–853
Acquisition-related costs and revenue, paid and received2)	–27	–33	–135	–141
Dividend paid	–	–	–414	–414
Issuance of commercial papers	–	–	575	575
Redemption of commercial papers	–155	–375	–1,240	–1,460
Change in other interest-bearing net debt1)	–220	272	747	1,239
Cash flow for the period	–219	470	–156	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 during the first quarter of 2021 impacted certain geographic areas negatively and Loomis's revenue and earnings were 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 and the Company's revenue and earnings were negatively impacted thereof. The negative impact of the coronavirus pandemic on revenue and earnings is expected to continue until the pandemic subsides, actions initiated in connection with the pandemic have been fully implemented and retail businesses in the countries

where Loomis operates begin 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 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 1 2021					Quarter 1 2020
Cash in transit (CIT)	1,290	1,394	–	–	2,684	1,682	1,565	–	–	3,247
Cash management services (CMS)	559	747	–	–	1,305	747	846	–	–	1,593
International	205	73	–	–	278	207	82	–	–	289
Other (FX etc)	202	12	2	–	216	195	5	–	–	199
Revenue, internal	12	9	–	–21	–	11	9	–	–20	–
Total revenue	2,268	2,234	2	–21	4,483	2,842	2,507	–	–20	5,329
Timing of revenue recognition, external
At a point in time	442	72	1	–	514	426	81	–	–	507
Over time	1,814	2,153	1	–	3,969	2,405	2,417	–	–	4,822
Total external revenue	2,256	2,225	2	–	4,483	2,831	2,498	–	–	5,329

	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total
SEK m			Full year 2020
Cash in transit (CIT)	5,923	5,632	–	–	11,555
Cash management services (CMS)	2,518	3,074	–	–	5,592
International	768	324	–	–	1,092
Other (FX etc)	541	27	7	–	574
Revenue, internal	38	41	–	–79	–
Total revenue	9,788	9,098	7	–79	18,813
Timing of revenue recognition, external
At a point in time	1,495	322	1	–	1,817
Over time	8,255	8,735	6	–	16,996
Total external revenue	9,750	9,057	7	–	18,813

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2021	2020	2020
SEK m	Quarter 1	Quarter 1	Full year
USA	2,234	2,507	9,098
France	655	854	2,962
Spain	303	396	1,327
UK	195	375	1,028
Switzerland	213	254	908
Other countries and eliminations	883	943	3,490
Total revenue	4,483	5,329	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	–	–	–	–
Region USA	2,507	2,206	2,201	2,184	9,098	2,234	–	–	–	–
Loomis Pay	–	–	3	4	7	2	–	–	–	–
Group-wide functions1)	–	–	–	–	–	–	–	–	–	–
Eliminations	–20	–20	–20	–19	–79	–21	–	–	–	–
Total revenue	5,329	4,239	4,709	4,537	18,813	4,483	–	–	–	–

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	–	–	–	–
Region USA	371	332	340	382	1,425	363	–	–	–	–
Loomis Pay	–	–16	–22	–30	–68	–32	–	–	–	–
Group-wide functions1)	–58	–44	–38	–30	–171	–42	–	–	–	–
Eliminations	–	–	–	–	–	–	–	–	–
Operating income (EBITA)	589	202	517	467	1,775	358	–	–	–	–

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

			Loomis	Group-wide
Quarter 1 2021	Europe	USA	Pay	functions	Eliminations	Total
SEK m
Revenue, continuing operations	2,142	2,226	–	–	–21	4,346
Revenue, acquisitions	126	9	2	–	–	136
Total revenue	2,268	2,234	2	–	–21	4,483
Production expenses	–1,831	–1,535	–34	–2	21	–3,381
Gross income	437	699	–32	–2	–	1,102
Selling and administrative expenses	–368	–336	0	–40	–	–744
Operating income (EBITA)	69	363	–32	–42	–	358
Amortization of acquisition-related intangible assets	–28	–5	0	–	–	–33
Acquisition-related costs	–2	–1	–	–7	–	–10
Items affecting comparability	–	–	–	–	–	–
Operating income (EBIT)	39	357	–33	–49	–	315
Net financial items	–	–	–	–33	–	–33
Loss on monetary net assets/liabilities	–	–	–	–12	–	–12
Income before taxes	39	357	–33	–94	–	269

SEGMENT OVERVIEW STATEMENT OF INCOME

			Loomis	Group-wide
Quarter 1 2020	Europe	USA	Pay	functions	Eliminations	Total
SEK m
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

SEGMENT OVERVIEW BALANCE SHEET

	2021	2020	2020
SEK m	Mar 31	Mar 31	Dec 31
Europe
Assets	10,755	11,700	10,543
Liabilities	4,800	5,406	5,344
USA
Assets	9,797	10,965	9,079
Liabilities	1,581	1,668	1,494
Other 1)
Assets	4,794	5,135	5,274
Liabilities	9,332	9,988	9,285
Shareholder's equity	9,633	10,738	8,773
Group total
Assets	25,346	27,800	24,896
Liabilities	15,713	17,062	16,123
Shareholder's equity	9,633	10,738	8,773

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

NOTE 5 – ACQUISITIONS

Acquisition of Automatia Pankkiautomaatit Oy, Finland

Final acquisition analysis from the acquisition of Automatia Pankkiautomaatit OY was received 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, as of the acquisition date 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 liabili ties	–49	–49
Deferred tax liability	–	–47
Net identifiable assets and liabilities	297	487
Purchase price paid	545	545
Deferred consideration	–	–
Goodwill	248	58

NOTE 6 – ITEMS AFFECTING COMPARABILITY

	2021	2020	2020
SEK m	Quarter 1	Quarter 1	Full year
Restructuring costs within the European segment	–	–	–162
Write-down of goodwill in an operation within the European segment	–	–	–46
Provisions/resolutions regarding legal processes	–	–	9
Total items affecting comparability	–	–	–200

NOTE 7 – LIQUID FUNDS

	2021	2020	2020
SEK m	Mar 31	Mar 31	Dec 31
Liquid funds	4,160	4,700	4,802
Adjusted for inventory of cash at the cash processing operations	–1,249	–1,796	–2,134
Adjusted for prepayments from customers	–1,022	–700	–612
Liquid funds excluding funds for cash processing activities	1,888	2,204	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 MARCH 31, 2021

	Votes	No. of shares		No. of votes Quota value	SEK m
Shares	1	75,279,829	75,279,829	5	376
Total no. of shares		75,279,829	75,279,829		376
Total treasury shares1)	1	–53,797	–53,797
Total no. of outstanding shares		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 10 – CONTINGENT LIABILITIES, GROUP

	2021	2020	2020
SEK m	Mar 31	Mar 31	Dec 31
Guarantees and other commitments	1,927	2,233	2,191

KEY RATIOS

	2021	2020	R12	2020
			Twelve
	Quarter 1	Quarter 1	months	Full year
Real growth, %	–6.1	1.8	–9.7	–7.8
Organic growth, %	–8.7	0.0	–11.4	–9.4
Total growth, %	–15.9	6.4	–15.9	–10.6
Gross margin, %	24.6	26.4	25.0	25.5
Selling and administration expenses in % of total revenue	–16.6	–15.4	–16.4	–16.1
Operating margin (EBITA), %	8.0	11.0	8.6	9.4
Tax rate, %	27	25	37	35
Net margin, %	4.4	6.9	3.1	3.8
Return on shareholders' equity, %	6	15	6	8
Return on capital employed, %	10	15	10	12
Equity ratio, %	38	39	38	35
Liquid funds excluding funds within cash processing operations (SEK m)	1,888	2,204	1,888	2,056
Net debt (SEK m)	6,391	7,058	6,391	6,619
Net debt/EBITDA	1.89	1.56	1.89	1.82
Cash flow from operating activities as % of operating income (EBITA)1)	96	130	116	125
Investments in relation to depreciation	0.4	0.8	0.4	0.5
Investments as a % of total revenue	3.8	7.2	4.3	5.2
Earnings per share before and after dilution, SEK2)	2.63	4.85	7.30	9.52
Shareholders' equity per share before and after dilution, SEK	128.06	142.74	128.06	116.62
Cash flow from operating activities per share after dilution, SEK	6.37	14.70	31.46	39.79
Dividend per share, SEK	–	–	5.50	5.50
Number of outstanding shares (millions)	75.2	75.2	75.2	75.2
Average number of outstanding shares (millions)2)	75.2	75.2	75.2	75.2

1) Excluding the IFRS 16 impact.

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

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2021	2020	2020
SEK m	Jan–Mar	Jan–Mar	Full year
Revenue	142	163	444
Operating income (EBIT)	85	98	241
Income after financial items	30	–61	464
Net income for the period	20	–47	400

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The higher result is mainly due to improved net financial income/expense and lower operating expenses, despite lower revenue from subsidiaries due to the coronavirus pandemic.

PARENT COMPANY SUMMARY BALANCE SHEET

2021	2020	2020
Mar 31	Mar 31	Dec 31
12,745	11,956	12,687
1,386	1,736	1,318
14,131	13,693	14,005
5,207	5,100	5,147
8,924	8,593	8,858
14,131	13,693	14,005

1) The number of 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

	2021	2020	2020
SEK m	Mar 31	Mar 31	Dec 31
Guarantees and other commitments	4,679	4,767	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 23 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
• 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 1 Quarter 1			Growth Growth,%
Recognized revenue	4,483	5,329	–846	–15.9
Organic growth			–461	–8.7
Revenue, acquisitions			136	2.6
Real growth			–325	–6.1
Exchange rate effects			–521	–9.8

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	2019	2020
SEK m	Quarter 1	Quarter 1	Full year
Operating income (EBIT)	315	544	1,304
Adding back items affecting comparability	–	–	200
Adding back acquisition-related costs and revenue	10	18	163
Adding back amortization of acquisition-related intangible assets	33	27	109
Operating income (EBITA)	358	589	1,775
Calculation of operating margin (EBITA), %
EBITA	358	589	1,775
Total revenue	4,483	5,329	18,813
EBITA/Total revenue, %	8.0	11.0	9.4

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.

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	Mar 31	Mar 31	Dec 31
Short-term loans	225	171	199
Long-term loans	5,369	5,948	5,723
Total loans payable	5,594	6,118	5,922
Liquid funds excluding funds in cash processing operations	1,888	2,204	2,056
Other interest-bearing assets	429	250	428
Financial net debt	3,276	3,665	3,438
Lease liabilities	2,801	2,957	2,651
Pension liabilities, net	314	436	530
Net debt	6,391	7,058	6,619

	2021	2020	2020
SEK m	Quarter 1	Quarter 1	Full year
Operating income (EBITA), R12	1,544	2,625	1,775
Adding back depreciation/ amortization, R12	1,836	1,892	1,871
EBITDA, R12	3,380	4,518	3,645
Net debt/EBITDA (number of times)	1.89	1.56	1.82

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	Mar 31	Mar 31	Dec 31
Fixed assets
Goodwill	6,955	7,586	6,884
Acquisition-related intangible assets	696	477	486
Other intangible assets	284	218	269
Buildings and land	954	1,025	942
Machinery and equipment	4,222	5,164	4,158
Right-of-use assets	2,775	2,996	2,645
Other operating fixed assets1)	886	910	846
Current assets
Accounts receivable	2,257	2,662	2,199
Other operating current assets2)	1,251	1,331	934
Funds in cash processing operations	2,271	2,496	2,746
Long-term liabilities
Deferred tax liability	–532	–521	–402
Provisions for claims reserves	–415	–489	–389
Other provisions	–113	–111	–106
Other long-term liabilities	–126	–169	–110
Current liabilities
Accounts payable	–589	–648	–600
Liabilities in cash processing operations	–1,959	–2,287	–2,468
Accrued expenses and prepaid income	–1,624	–1,573	–1,514
Other operating current liabilities3)	–1,169	–1,270	–1,127
Capital employed	16,024	17,796	15,392
Operating income (EBITA), R12	1,544	2,625	1,775
Return on capital employed, %	9.6	14.8	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 1 Quarter 1		Full year
Net income for the period, R12	549	1,632	716
Shareholders' equity	9,633	10,738	8,773
Return on equity, %	5.7	15.2	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.

Stockholm May 6, 2021

Patrik Andersson President and CEO

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

• 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 May 7, 2021 at 08:00 a.m. (CEST).

To follow the conference call via telephone and to participate in the question and answer session, please call: UK: + 44 333 300 9030 USA: + 1 833 823 0587 Sweden: +46 8 505 583 52

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 annual report

Interim report	January – June	July 23, 2021
Interim report	January – September	November 3, 2021

Loomis' Annual General meeting will be held on May 6, 2021 in Stockholm.

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 03.00 p.m. (CEST) on May 6, 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