Loomis — Interim / Quarterly Report 2022

Oct 28, 2022

At the Centre of the Payment Ecosystem

Interim Report January – September 2022

Record quarter with continued improvement in operating margin

Comments on quarter 3

• Revenue for the quarter was SEK 6,739 million (5,135). Real growth was 15.9 percent (10.8) of which organic growth was 15.5 percent (5.7).
• Operating income (EBITA) for the period was SEK 845 million (581) and operating margin (EBITA) was 12.5 percent (11.3). Excluding Loomis Pay, the operating margin amounted to 13.1 percent (12.0).
• Operating income (EBIT) before items affecting comparability for the period was SEK 808 million (540) and operating margin (EBIT) before items affecting comparability was 12.0 percent (10.5).
• Income before taxes was SEK 708 million (437) and net income was SEK 503 million (297).
• Earnings per share before dilution were SEK 6.92 (3.96) and after dilution 6.91 (3.95).
• Cash flow from operating activities amounted to SEK 911 million (555), equivalent to 108 percent (96) of operating income (EBITA).
• Björn Züger took office as President and CEO of Loomis USA during the quarter
• Loomis AB repurchased 704,000 own shares during the third quarter and the Board of Directors has resolved to continue the repurchase of own shares that was initiated earlier this year.

	2022	2021		2022	2021		2021
SEK m	Quarter 3	Quarter 3	Change (%)	Nine months	Nine	months Change (%)	Full year
Revenue	6,739	5,135	31.2	18,584	14,397	29.1	19,723
Of which:
Organic growth	795	267	15.5	2,220	558	15.4	1,045
Acquisitions and divestments	23	243	0.4	268	611	1.9	815
Exchange rate effects	785	–85	15.3	1,698	–1,049	11.8	–950
Total growth	1,604	426	31.2	4,186	121	29.1	909
Operating income (EBITA)	845	581		1,981	1,367		1,961
Operating margin (EBITA), %	12.5	11.3		10.7	9.5		9.9
Operating income (EBIT) before items affecting comparability	808	540		1,810	1,243		1,790
Operating margin (EBIT) before items affecting comparability, %	12.0	10.5		9.7	8.6		9.1
Income before tax	708	437		1,552	1,045		1,545
Profit for the period	503	297		1,094	746		1,104
Earnings per share before dilution, SEK	6.92	3.96		14.91	9.92		14.74
Tax rate, %	29	32		30	29		28
Cash flow from operating activities	911	555		1,732	1,187		1,620
Cash flow from operating activities as % of operating income (EBITA)	108	96		87	87		83

KEY RATIOS

Explanation and reconciliation of alternative performance measures can be found on pages 21–22 of this report and under Definitions on page 23.

Highest operating profit ever and record revenues

Loomis achieved all-time high revenues and operating profit in the third quarter. Revenues in Europe and Latin America have returned to pre-pandemic levels with the opening of societies and increased tourism and travel. The automated solutions with SafePoint in the USA have continued to be successful. Loomis Pay transaction volumes continued to grow and the pilot project in Spain developed according to plan.

The record high revenue has been supported by continued strong organic growth across all geographies, which amounted to 15.5 percent (5.7) in the third quarter, as well as changes in exchange rates. The Group's operating margin (EBITA%) increased to 12.5 percent (11.3). The margin was positively impacted by increased volumes but slightly impacted by labor shortages as well as general supply chain issues. Excluding Loomis Pay, the operating margin reached 13.1 percent (12.0).

Solid performance across all geographies

Segment USA continued to grow at a strong rate during the quarter, with an organic growth of 15.2 percent (13.8). Revenues within all offerings grew and SafePoint in particular with an organic growth rate above 20 percent, and our view is that we continue to increase our market share in USA. The operating margin amounted to 13.8 percent (14.5) and it is encouraging that we sequentially see an improvement in margin compared to the first half of this year.

Segment Europe and Latin America delivered a strong quarter with record revenues and a sharp increase in margin. Consumers have returned to shops and restaurants, which in combination with the seasonality impact of increased travel and tourism has been positive for Loomis' business. The foreign exchange business grew markedly in the quarter and surpassed pre-pandemic levels. We achieved an organic growth of 16.4 percent (–1.1) and the operating margin increased to 13.4 percent (11.1).

It is positive to see that Loomis Pay transaction volumes in existing markets continued to increase in the quarter. The pilot in Spain is progressing according to plan and customer interactions confirm that we are on the right path. The largest Loomis Pay customer signed to date is a Spanish customer, which shows the potential with the Spanish market. Our initial focus is on customers in the Madrid area, and we look forward to the launch in the fourth quarter.

Transformation of vehicle fleet

Loomis remains committed to reducing emissions, and I am pleased to share that we now also have electric armored vehicles in New York City. Given the traffic situation, being able to serve our customers in Manhattan with zero emissions is an important milestone. Electric vehicles have also been put in operations in the UK and similar initiatives are underway throughout Europe.

As we renew our vehicle fleet, we are also switching to lighter vehicles with several added safety features. With our targeted initiatives throughout the organization, we are on track to both reducing our own emissions and helping our customers reach their targets while maintaining our high security standards for the safety of our employees.

Loomis' importance in society

Securing a high level of service quality to Loomis' customers while ensuring the

+15% Organic growth

+75% EPS growth

safety of employees and customers is of the highest priority. The need for functioning flows of cash is vital in today's society and it is important that all actors within the value chain, including central banks and commercial banks, take their responsibility. Here Loomis has an important part to play in ensuring that cash is readily available, making the cash flows in society more efficient.

The post-pandemic economic recovery coupled with geopolitical uncertainties have led to higher inflation and interest rates in many markets where Loomis operates. The world around us is changing, and the potential impact for cash handling and Loomis' business is twofold. While increased inflation may change consumptions patterns within the retail business, higher interest rates provide an incentive for financial institutions to move cash quicker. I am confident that Loomis will continue to deliver according to our strategy, as we have done in the past in times of macroeconomic and global uncertainties.

Our performance in the third quarter was strong and I would like to take the opportunity to thank our employees for their commitment and our customers for their trust in us.

Stockholm, 28 October 2022

Aritz Larrea President and CEO

Revenue and income – Group

Quarter 3

Revenue for the quarter amounted to SEK 6,739 million (5,135). Real growth was 15.9 percent (10.8), of which organic growth was 15.5 percent (5.7). Revenue was positively affected by higher sales in both Europe and Latin America and the USA. Societies have opened after the pandemic leading to strong growth in cash volumes including foreign exchange for tourists. Revenues increased across all business lines with notable continued growth for SafePoint volumes as well as the foreign exchange business. The FX business grew a reported 149 percent in the quarter.

Revenues from SafePoint amounted to approximately 13 percent (12) of the Group's total revenues. The corresponding proportion for ATMs was approximately 21 percent (22).

The operating income (EBITA) amounted to SEK 845 million (581) and the operating margin was 12.5 percent (11.3). The exchange rate effect on operating income during the quarter was approximately SEK 112 million (–12).

For segment information, see pages 4–7.

The operating income (EBIT) before items affecting comparability for the quarter amounted to SEK 808 million (541), which includes amortization of acquisition related intangible assets of SEK –35 million (–31) and acquisition-related costs of SEK –2 million (–9).

Income before tax amounted to SEK 708 million (437) and includes a net financial expense, including a loss on monetary net assets, of SEK –100 million (–51).

The tax expense for the quarter was SEK –205 million (–140), which represents a tax rate of 29 percent (32).

Earnings per share before dilution amounted to SEK 6.92 (3.96) and after dilution to SEK 6.91 (3.95).

Nine months

Revenue for the period amounted to SEK 18,584 million (14,397). Real growth was 17.3 percent (8.2), of which organic growth was 15.4 percent (3.9). Revenue was positively affected by higher sales in both Europe and Latin America and the USA, and by the acquisition in Switzerland in May 2021. Societies have gradually opened after the pandemic leading to strong growth in cash volumes including foreign exchange for tourists. Revenues increased from all business lines but above all revenues increased for Safe-Point and FX. The FX business grew a reported 98 percent year to date.

For the first nine months revenues from SafePoint amounted to approximately 13 percent (12) of the Group's total revenues. The corresponding proportion for ATMs was approximately 21 percent (22).

The operating income (EBITA) amounted to SEK 1,981 million (1,367) and the operating margin was 10.7 percent (9.5). The exchange rate effect on operating income during the first nine months was approximately SEK 229 million (–137).

For segment information, see pages 4–7.

The operating income (EBIT) for the first nine months amounted to SEK 1,786 million (1,191), which includes amortization of acquisition related intangible assets of SEK –104 million (–95) and acquisitionrelated costs of SEK –67 million (–29). The operating income included an item affecting comparability in Q2 amounting to SEK – 23 million from additional remuneration cost in connection with the change of CEO.

Income before tax was SEK 1,552 million (1,045) and includes a net financial expense, including a loss on monetary net assets, of SEK –234 million (–146).

The tax expense for the first nine months was SEK –458 million (–299), which represents a tax rate of 30 percent (29).

Earnings per share before and after dilution amounted to SEK 14.91 (9.92).

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q3

Revenue by business line, R12

The segments

Revenue, operating income and number of full-time employees

EUROPE AND LATIN AMERICA

	2022	2021	2022	2021	2022	2021
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Revenue	3,244	2,688	9,047	7,412	11,814	10,178
Sales growth, %	20.7	6.4	22.1	–0.2	20.8	3.9
-of which organic growth, %	16.4	–1.1	16.0	–3.5	14.2	–0.5
-of which acquisitions / divestments, %	0.0	9.4	2.7	7.9	4.1	8.0
-of which exchange rate effects, %	4.3	–1.9	3.3	–4.6	2.5	–3.6
Real growth, %	16.4	8.3	18.7	4.4	18.3	7.5
Operating income (EBITA)	435	300	987	516	1,317	846
Operating margin, %	13.4	11.1	10.9	7.0	11.1	8.3
Number of full-time employees	14,400	14,000	14,200	13,800	14,200	13,900

USA

	2022	2021	2022	2021	2022	2021
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Revenue	3,542	2,473	9,650	7,055	12,238	9,643
Sales growth, %	43.2	12.4	36.8	2.0	32.5	6.0
-of which organic growth, %	15.2	13.8	15.3	12.0	14.8	12.3
-of which acquisitions / divestments, %	0.9	0.3	0.9	0.3	0.7	0.3
-of which exchange rate effects, %	27.1	–1.7	20.6	–10.3	16.9	–6.6
Real growth, %	16.1	14.1	16.2	12.3	15.5	12.6
Operating income (EBITA)	488	359	1,288	1,085	1,655	1,452
Operating margin, %	13.8	14.5	13.3	15.4	13.5	15.1
Number of full-time employees	10,400	9,500	10,500	9,000	10,400	9,300

LOOMIS PAY

	2022	2021	2022	2021	2022	2021
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Revenue	6	3	15	6	20	11
Transaction volume	704	424	1,672	850	2,101	1,279
Sales growth, %	84.5	15.7	137.5	116.0	96.2	65.8
-of which organic growth, %	80.2	18.0	131.9	18.0	92.9	23.4
-of which acquisitions / divestments, %	–	–	–	100.3	–	44.0
-of which exchange rate effects, %	4.4	–2.4	5.7	–2.4	3.3	–1.5
Real growth, %	80.2	18.0	131.9	118.4	92.9	67.3
Operating income (EBITA)	–36	–36	–137	–101	–185	–149
Operating margin, %	n/a	n/a	n/a	n/a	n/a	n/a

Revenue and income – Europe and Latin America

Quarter 3

Revenue for the quarter amounted to SEK 3,244 million (2,688). Real growth, was 16.4 percent (8.3). Organic growth was 16.4 percent (–1.1). Overall, there were no restrictions in Europe and Latin America unlike the third quarter 2021 and societies have opened after the pandemic, leading to strong growth in cash volumes including a significant growth for the foreign exchange business. However, continued restrictions in Asia had a slight impact on the international business in the region as well as less tourism.

Revenues from SafePoint amounted to approximately 7 percent (7) of the segment's total revenues. The corresponding proportion for ATMs was approximately 19 percent (19).

The operating income (EBITA) amounted to SEK 435 million (300) and the operating margin was 13.4 percent (11.1). Increased revenue in combination with the steps that Loomis took early on to compensate for the temporarily lower volumes after the pandemic broke out provided clear results. Inflation and supply chain issues temporarily impacted the margin.

Nine months

Revenue for the first nine months amounted to SEK 9,047 million (7,412). Real growth, which was 18.7 percent (4.4), was positively affected by revenue attributable to the acquisition of the cash handling operations of Swiss Post in May 2021. Organic growth was 16.0 percent (–3.5). The removal of restrictions had significant impact on the volumes in the first nine months compared with 2021 as societies return to normal. During the beginning of the year, this segment was to some extent negatively affected by restrictions. Growth improved from the second half of February and in March once restrictions eased. However, imposed restrictions in Asia had a slight impact on the international business as well as less Asian tourism during the year.

Revenues from SafePoint amounted to approximately 7 percent (7) of the segment's total revenues. The corresponding proportion for ATMs was approximately 18 percent (19).

The operating income (EBITA) amounted to SEK 987 million (516) and the operating margin was 10.9 percent (7.0). Increased revenue in combination with the steps that Loomis took early on to compensate for the temporarily lower volumes after the pandemic broke out provided clear results. Inflation and issues with supply chain impacted the margin temporarily. The operations acquired in Switzerland in 2021 are being integrated according to plan and providing synergies.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q3

Revenue by business line, R12

Revenue and income – USA

Quarter 3

Revenue amounted to SEK 3,542 million (2,473) and real growth was 16.1 percent (14.1). Organic growth amounted to 15.2 percent (13.8). Similar to previous quarters, the operations in USA continued to show good growth. Revenue from all offerings grew and SafePoint continued to show increased volumes.

Revenue for the quarter from SafePoint accounted for approximately 19 percent (18) of the segment's total revenue, while ATMs accounted for around 23 percent (25).

The operating income (EBITA) amounted to SEK 488 million (359) and the operating margin was 13.8 percent (14.5). The lower operating margin is primarily due to the current challenges in the labor market and issues with supply chain. The margin has increased sequentially compared to the second quarter. In order to maintain both a high growth rate and a high level of service, cost for overtime have been high during the quarter.

Cost for fuel amounts to 4 percent (3) of revenue.

Nine months

Revenue amounted to SEK 9,650 million (7,055) and real growth was 16.2 percent (12.3). Organic growth amounted to 15.3 percent (12.0). Revenue from all offerings grew and SafePoint in particular saw increased volumes.

Revenue for the first nine months from SafePoint accounted for approximately 19 percent (18) of the segment's total revenue, while ATMs accounted for around 24 percent (25).

The operating income (EBITA) amounted to SEK 1,288 million (1,085) and the operating margin was 13.3 percent (15.4). The lower operating margin is primarily due to the current challenges in the labor market and issues with the supply chain. In order to maintain both a high growth rate and a high level of service, overtime cost have temporarily been high. The turnover of employees in USA continues to be high. The USA operations have hired new employees during the first nine months and are focusing on training new employees.

Cost for fuel amounts to 4 percent (3) of revenue.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by segment, Q3

Revenue by segment, R12

Revenue and income – Loomis Pay

Quarter 3

Revenue amounted to SEK 6 million (3) and transaction volumes grew 66 percent in the quarter.

Loomis Pay is currently available in the Danish, Swedish and Norwegian markets and a pilot has been initiated in Spain. The ambition is to launch in Spain during the fourth quarter 2022. Interacting with customers, building up the local sales organizations and continued development of the service offering are prioritized areas.

The segment's operating income (EBITA) amounted to SEK –36 million (–36).

Nine months

Revenue amounted to SEK 15 million (6). The transaction volumes grew 97 percent during the first nine months of the year.

Focus during the year has been on further developing the Loomis Pay product, both to have a platform that can be passported to additional markets, but also local adaptations to the product for individual markets. The most recent adaptation has been for the pilot in the Spanish market.

The segment's operating income (EBITA) amounted to SEK (–137) million (–101).

Revenue, SEK m

Sustainability

Transformation of vehicle fleet

– for safety and lower emissions During the third quarter, Loomis has continued to invest in electric vehicles. USA increased the number of electric armored vehicles on the roads with additional vehicles rolled out in New York and California. The remainder of USA's ordered electric vehicles are expected to be in operations before the end of the year. Electric vehicles have also been put in operations in the UK during the quarter and similar initiatives are underway throughout Europe.

Loomis USA is in parallel shifting the fleet to lighter vehicles customized with high security features. As such, upgrading to lighter vehicles does not only lead to reduced emissions, but they also increase employee safety. These vehicles currently account for more than 25 percent of the vehicles in USA. Loomis will continue to invest in lighter vehicles with high security content as the vehicle fleet is renewed.

Emphasis on training

On behalf of customers, Loomis' employees handle great responsibilities daily and as such play a crucial part in Loomis' risk management work. It is critical to have the right competence and a security mindset as well as high integrity, ethics, and morals. Loomis employees consistently and routinely participate in safety and security trainings. The purpose is to ensure that employees on all levels understand and are equipped to manage the risks associated with the business and stay safe.

Carbon emissions, tCO2e Scope1

During the third quarter, the annual training in the Code of Conduct was updated and launched. This training is mandatory for all employees, including part-time, and is aimed to ensure high business ethics, care for employees, and concern for the environment.

Cash flow and investments

Nine months 2022

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 1,732 million (1,187), equivalent to 87 percent (87) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –965 million (–703), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 1,017 million (916). 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 0.6 (0.5).

Capital employed and financial position

Capital employed

The total capital employed as of September 30, 2022 amounted to SEK 20,329 million (17,070 as of December 31, 2021), which is equivalent to approximately 85 percent (88) of revenue. Return on capital employed amounted to 12.7 percent (11.1).

Shareholders' equity and financing

Shareholders' equity increased during the nine-month period by SEK 3,202 million, amounting to SEK 13,265 million as of September 30, 2022 (10,063 as of December 31, 2021). The increase is largely explained by translation differences of SEK 2,661 million, net profit for the period of SEK 1,094 million and actuarial gains of SEK 650 million less dividend of SEK 628 million and share repurchase of SEK 400 million. The return on shareholders' equity was 11 percent (9) and the equity ratio was 41 percent (34).

Net debt amounted to SEK 7,064 million as of September 30, 2022 (7,007 as of December 31, 2021) and net debt/EBITDA amounted to 1.5 (1.8 as of December 31, 2021).

As of September 30, 2022 the long-term loan facilities totaled around SEK 8.2 billion and the short-term loan facilities totaled around SEK 2.1 billion. Unutilized loan facilities amounted to around SEK 4.9 billion, of which SEK 0.8 billion are used as back-up for outstanding commercial papers. In the third quarter SEK 1,750 million of long-term loans with maturities within 12 months was reclassified as short-term liabilities. Available liquid funds amounted to around SEK 2.2 billion (see Note 6).

Other events

Significant events during the period

The board of directors of Loomis AB resolved, and communicated, on July 21, 2022, to continue to repurchase own shares during the third quarter 2022. The repurchase of shares commenced on July 25, 2022 and ended on September 28, 2022.

During the third quarter, the company has repurchased 704,000 own shares. The company's total holding of own shares thereby amounts to 2,961,782. The total number of shares in the company, including the company's own shares, amounts to 75,279,829.

On September 7 it was announced that Loomis AB has signed a SEK 600 million loan agreement with the Nordic Investment Bank. The loan has an eight-year term with a linear amortization starting four years after disbursement. Loomis will use the proceeds from the loan to finance investments, in the period up to 2025, supporting its ongoing digital transformation, including for example investments in IT infrastructure and further enhancing Loomis' customer offering.

Other events

As disclosed in the interim report for the second quarter, a Spanish court rendered in June this year a decision to fully uphold Loomis' appeal and annulled the Spanish national competition authority's decision from 2016 to impose fines on Loomis amounting to approx. EUR 7 million for alleged market sharing. Following the expiration of the appeal period, the court's decision has now become final. Loomis will hence recover the fine of approx. EUR 7 million (plus interest) which will improve cash flow but is not expected to have any significant impact on the result.

Events after the end of the period

On October 27 it was announced that the Board of Directors of Loomis AB has resolved to continue the repurchase of own shares that was initiated earlier this year. The repurchase may commence on October 31 2022, end no later than December 30, 2022, and comprise an amount up to a maximum of SEK 200 million.

Financial reports

CONSOLIDATED INCOME STATEMENT

Note	2022	2021	2022	2021	2022	2021
			Nine	Nine
SEK m	Quarter 3	Quarter 3	months	months	R12	Full year
Revenue 3,4	6,739	5,135	18,584	14,397	23,909	19,723
Production expenses	–4,869	–3,736	–13,630	–10,660	–17,461	–14,492
Gross income	1,870	1,400	4,954	3,737	6,448	5,231
Selling and administration expenses	–1,061	–850	–3,077	–2,465	–4,008	–3,396
Other income and expenses	–2	–10	–67	–30	–83	–45
Items affecting comparability 5	–	–52	–23	–52	–23	–52
Operating income (EBIT)	808	489	1,786	1,191	2,334	1 738
Financial income	39	15	99	49	122	71
Financial expenses	–86	–54	–216	–157	–268	–209
Loss on monetary net assets/liabilities	–53	–12	–118	–38	–135	–56
Income before taxes	708	437	1,552	1,045	2,052	1,545
Income tax	–205	–140	–458	–299	–599	–440
Net income for the period1)	503	297	1,094	746	1,453	1,104
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses, net of tax	207	–128	650	106	295	87
Items that may be reclassified to the statement of income
Translation differences	1,092	286	2,661	608	2,229	981
Revaluation of participation in associated companies	1	–	11	–	10	–
Hedging of net investments, net of tax	–79	–28	–198	–55	–182	–90
Other comprehensive income and expenses for the period, net after tax	1,221	130	3,125	659	2,353	978
Total comprehensive income and expenses for the
period2)	1,724	427	4,219	1,405	3,806	2,083
Earnings per share, SEK
Earnings per share before dilution	6.92	3.96	14.91	9.92	19.73	14.74
Earnings per share after dilution	6.91	3.95	14.91	9.92	19.72	14.73
Number of shares
Number of outstanding shares (million)	72.3	74.7	72.3	74.7	72.3	73.8
Average number of outstanding shares before dilution (million)	72.7	75.1	73.4	75.2	73.6	74.9
Average number of outstanding shares after dilution (million)	72.8	75.2	73.4	75.2	73.7	75.0

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

2) Comprehensive income is entirely attributable to the owners of the Parent company.

In connection with the introduction of the change in the format of presentation, SEK 31 million relating to amortization of intangible assets has been moved from sales and administration costs to production costs and thereby reduced gross profit by the corresponding amount in quarter 3 2021. For the full year 2021, the reclassification is SEK 126 million. In addition, a correction was made in the first half of 2021, where production costs were reduced by SEK 59 million and sales and administration costs increased correspondingly.

CONSOLIDATED BALANCE SHEET

Note	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
ASSETS
Fixed assets
Goodwill	8,336	6,913	7,185
Intangible assets	1,035	1,120	1,147
Buildings and land	1,153	953	970
Machinery and equipment	5,140	4,250	4,463
Right-of-use assets	3,888	2,916	3,008
Contract assets	236	149	164
Deferred tax assets	403	429	449
Pension plan assets	656	282	225
Interest-bearing financial fixed assets	656	454	466
Other long-term receivables	361	285	273
Total fixed assets	21,862	17,752	18,349
Current assets
Accounts receivable	3,439	2,655	2,686
Other current receivables	314	218	236
Current tax assets	290	398	263
Prepaid expenses and accrued income	1,034	638	527
Interest-bearing financial current assets	91	41	13
Liquid funds 6	5,668	6,124	5,156
Total current assets	10,835	10,074	8,880
TOTAL ASSETS	32,697	27,826	27,228
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 8
Share capital	376	376	376
Other capital contributed	4,594	4,594	4,594
Other reserves	2,969	764	894
Retained earnings including net income for the year	5,327	3,859	4,199
Non-controlling interest	–	–	–
Total shareholders' equity	13,265	9,593	10,063
Long-term liabilities
Interest-bearing non-current lease liabilities	3,121	2,291	2,348
Loans payable	4,323	4,723	5,636
Deferred tax liabilities	591	511	436
Provisions for claims reserves	580	461	451
Provisions for pensions and similar commitments	384	756	724
Other provisions	163	103	118
Other long-term liabilities	222	153	126
Total long-term liabilities	9,383	8,996	9,839
Current liabilities
Interest-bearing current lease liabilities	898	654	701
Loans payable	1,927	1,421	311
Accounts payable	742	592	687
Provisions for claims reserves	263	233	231
Current tax liabilities	214	193	274
Liabilities, cash processing operations	3,088	3,627	2,818
Accrued expenses and prepaid income	2,203	1,842	1,689
Other provisions	45	54	45
Other current liabilities	669	621	569
Total current liabilities	10,049	9,238	7,326
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	32,697	27,826	27,228

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2022	2021	2021
SEK m	Nine months	Nine months	Full year
Opening balance	10,063	8,773	8,773
Actuarial gains and losses after tax	650	106	87
Exchange rate differences	2,661	608	981
Revaluation of participation in associated companies	11	–	–
Hedging of net investments, net of tax	–198	–55	–90
Total other comprehensive income	3,125	659	978
Net income for the period	1,094	746	1,104
Total comprehensive income1)	4,219	1,405	2,083
Dividend paid to Parent Company's shareholders	–628	–451	–451
Share-related remuneration	11	8	9
Acquisition of own shares	–400	–141	–350
Non-controlling interest	–	–1	–1
Closing balance	13,265	9,593	10,063

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

CONSOLIDATED STATEMENT OF CASH FLOWS

	2022	2021	2022	2021	2021
SEK m Note	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Operations
Income before taxes	708	437	1,552	1,045	1,545
Depreciation and amortization	619	517	1,763	1,506	2,027
Other items not affecting cash flow	98	91	239	89	141
Financial items received	28	8	54	21	29
Financial items paid	–105	–56	–242	–165	–223
Income tax paid	–134	–87	–509	–336	–375
Change in accounts receivable	5	–216	–344	–358	–341
Change in other operating capital employed and other items	30	183	36	22	–45
Cash flow from operations	1,250	877	2,550	1,825	2,758
Investing activities
Investments in fixed assets	–356	–287	–1,016	–707	–1,162
Disposals of fixed assets	17	1	51	5	6
Acquisitions of operations	–	–	–	–161	–230
Cash flow from investing activities	–339	–286	–965	–864	–1,386
Financing activities
Dividend paid	–	–	–628	–451	–451
Acquisition of own shares	–200	–141	–400	–141	–350
Issuance of bonds	–	–	600	–	1,200
Issuance of commercial papers and other long-term borrowing	1,130	1,245	4,160	3,453	4,489
Redemption of commercial papers and other long-term borrowing	–1,670	–1,095	–4,495	–3,245	–5,758
Change in other interest-bearing net debt	–332	–114	–823	–535	–619
Cash flow from financing activities	–1,071	106	–1,586	–919	–1,489
Cash flow for the period	–160	485	–1	41	–117
Liquid fund at beginning of the period1)	2,281	1,634	2,009	2,056	2,056
Translation differences in liquid funds	66	24	178	46	71
Liquid funds at end of period1)	2,187	2,143	2,187	2,143	2,009

1) Excluding liquid funds within cash processing operations. See also Note 6 Liquid funds.

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

	2022	2021	2022	2021	2022	2021
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Operating income (EBITA)1)	822	564	1,919	1,319	2,496	1,896
Depreciation1)	348	308	1,017	916	1,341	1,240
Change in accounts receivable	5	–216	–344	–358	–327	–341
Change in other operating capital employed and other items1)	73	184	105	13	73	–19
Cash flow from operating activities before investments	1,249	841	2,696	1,889	3,583	2,776
Investments in fixed assets, net	–339	–286	–965	–703	–1,418	–1,156
Cash flow from operating activities	911	555	1,732	1,187	2,164	1,620
Financial items paid and received1)	–47	–26	–106	–77	–134	–104
Income tax paid	–134	–87	–509	–336	–548	–375
Free cash flow	730	442	1,116	775	1,482	1,141
Cash flow effect of items affecting comparability	–1	–4	–5	–73	–8	–76
Acquisition of operations	–	–	–	–161	–68	–230
Acquisition–related costs and revenue, paid and received2)	–3	–18	–81	–65	–88	–73
Dividend paid	–	–	–628	–451	–628	–451
Acquisition of own shares	–200	–141	–400	–141	–608	–350
Issuance of bonds	–	–	600	–	1,800	1,200
Issuance of commercial papers and other long–term borrowing	1,130	1,245	4,160	3,453	5,196	4,489
Redemption of commercial papers and other long–term borrowing	–1,670	–1,095	–4,495	–3,245	–7,008	–5,758
Change in other interest–bearing net debt1)	–147	56	–269	–49	–229	–9
Cash flow for the period	–160	485	–1	41	–159	–117

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 2021 Annual Report.

New or changed standards and interpretations that entered into force on January 1, 2022 are not expected to have any material effect on the Group's financial statements.

As of April 1, 2022 Loomis has implemented IAS 29 Financial Reporting in Hyperinflationary Economies, for the operations in Turkey. The financial statements for the subsidiary in Turkey have therefore been adjusted for inflation to reflect the changes in purchasing power. The inflation adjustments have been made with the Turkish consumer price index with a base period of 2003=100. The consumer price index was 1,046.9 as of September 30, 2022 and 686.9 as of December 31, 2021. Since the Loomis Group's reporting currency is SEK and thus not a currency in a hyperinflationary economy, the comparative figures have not been adjusted.

In connection with the preparation of the interim report for the 'first quarter, the presentation format for the consolidated income statement has been changed as an adjustment for expected future amendments to IAS 1. The following amendments have been made: i) The partial summary with EBITDA has been removed but can, as previously, be found in the section Alternative performance measures ii) Amortization of acquisition-related intangible assets and Acquisition-related costs and revenue are now included in the relevant functional lines (mainly production costs for the amortization). iii) A new line for Other income and expense is introduced where now the acquisition-related expenses are included. The item Other income and expense may also include capital gains / losses on the sale of fixed assets, or the like, that are not related to the period's regular sales operations. iv) The format has been changed so that Other comprehensive income is now stated directly in the statement of total comprehensive income (which Loomis calls "Income statement") and not in a separate statement as previously. The effect of the recalculation on gross income is stated in a note in connection with the income statement.

Following the IFRIC agenda decision addressing cloud computing arrangement, the group has reclassified previously capitalized costs for such arrangements to prepaid cost to be expensed over the term of the contract.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 99–100 and 130 of the 2021 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, international valuables logistics, FX and the payment platform Loomis Pay, 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 worsened customer 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.
• Process risk: the risk that processes or routines fail, are no longer relevant or are not followed.
• Competition risk, such as Loomis' ability to develop competitive offerings.
• Employee risk, such as unhappiness and low motivation
• increasing the risk for underperformance and human error.
• 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 financing needs.
• 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 2021 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 covid-19 pandemic that broke out in early 2020 had a negative effect on the world economy during 2020 and 2021. The postpandemic economic recovery during 2022 coupled with geopolitical uncertainties have led to higher inflation and interest rates in many markets where Loomis operates. The exact impact that the changing macroeconomic situation will have is unforeseeable, but it cannot be ruled out that it may have a negative effect on Loomis' earnings and financial position.

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 2022 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2021 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 BY BUSINESS LINE

	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total
SEK m			Quarter 3 2022					Quarter 3 2021
Cash in transit (CIT)	1,146	1,329	–	–	2,475	1,042	885	–	–	1,927
Cash management services (CMS)	738	549	–	–	1,287	655	409	–	–	1,064
ATM	611	826	–	–	1,437	501	612	–	–	1,113
SafePoint	224	683	–	–	908	187	450	–	–	637
International	299	118	–	–	417	198	94	–	–	292
FXGS	152	–	–	–	152	61	–	–	–	61
Loomis Pay	–	–	6	–	6	–	–	3	–	3
Revenue, other and internal	74	36	–	–53	57	44	23	–	–29	38
Total revenue	3,244	3,542	6	–53	6,739	2,688	2,473	3	–29	5,135
Timing of revenue recognition, external
At a point in time	706	127	3	–	836	531	83	1	–	615
Over time	2,508	3,393	3	–	5,904	2,140	2,378	2	–	4,520
Total external revenue	3,214	3,520	6	–	6,739	2,671	2,461	3	–	5,135

	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total	Europe and Latin America	USA	Loomis Pay	Group-wide functions and elimi nations	Total
SEK m			Nine months 2022					Nine months 2021
Cash in transit (CIT)	3,317	3,626	−	−	6,943	2,834	2,527	–	–	5,361
Cash management services (CMS)	2,060	1,502	−	−	3,562	1,732	1,165	–	–	2,898
ATM	1,666	2,282	−	−	3,948	1,426	1,776	–	–	3,202
SafePoint	631	1,820	−	−	2,451	482	1,270	–	–	1,752
International	830	327	−	−	1,158	625	249	–	–	874
FXGS	355	−	−	−	355	179	–	–	–	179
Loomis Pay	−	−	15	−	15	–	–	6	–	6
Revenue, other and internal	188	93	−	–129	152	134	67	–	–76	125
Total revenue	9,047	9,650	15	–129	18,584	7,412	7,054	6	–76	14,397
Timing of revenue recognition, external
At a point in time	1,902	352	6	−	2,259	1,438	237	2	–	1,677
Over time	7,071	9,246	9	−	16,326	5,930	6,787	4	–	12,721
Total external revenue	8,972	9,598	15	0	18,584	7,368	7,024	6	–	14,397

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

2022	2021	2022	2021	2021
Quarter 3	Quarter 3	Nine months	Nine months	Full year
3,542	2,473	9,650	7,055	9,643
890	720	2,439	2,009	2,737
407	359	1,136	986	1,345
444	383	1,270	917	1,320
301	253	874	681	941
196	169	580	502	676
960	778	2,634	2,247	3,061
6,739	5,135	18,584	14,397	19,723

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, but the Pay segment is monitored centrally 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 and Latin America, 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, acquisitionrelated 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

			2021					2022
					Full
SEK m	Q1	Q2	Q3	Q4	year	Q1	Q2	Q3		Q4 Full year
Europe and Latin America	2,268	2,456	2,688	2,766	10,178	2,796	3,007	3,244	–	–
USA	2,234	2,348	2,473	2,587	9,643	2,862	3,246	3,542	–	–
Loomis Pay	2	1	3	5	11	3	5	6	–	–
Group-wide functions	–	–	–	–	–	–	–	–	–	–
Eliminations	–21	–25	–29	–33	–109	–34	–42	–53	–	–
Total revenue	4,483	4,779	5,135	5,325	19,723	5,627	6,217	6,739	–	–

OPERATING INCOME (EBITA)

			2021			2022
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	69	148	300	330	846	242	309	435	–	–
USA	363	363	359	367	1,452	371	429	488	–	–
Loomis Pay	–32	–33	–36	–48	–149	–49	–52	–36	–	–
Group-wide functions	–42	–51	–42	–55	–189	–49	–66	–42	–	–
Operating income (EBITA)	358	428	581	594	1,961	516	620	845	–	–

OPERATING INCOME (EBIT)

	2021						2022
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	39	114	258	288	698	195	240	408	–	–
USA	357	360	357	365	1,439	366	423	482	–	–
Loomis Pay	–33	–33	–36	–48	–150	–49	–52	–36	–	–
Group-wide functions	–49	–54	–38	–57	–198	–49	–71	–47	–	–
Operating income (EBIT) before items affecting comparability	315	388	541	547	1,790	463	539	808	–	–
Items affecting comparability	–	–	–52	–	–52	–	–23	–	–	–
Operating income (EBIT)	315	388	489	547	1,738	463	516	808	–	–

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Nine months 2022
Revenue	8,845	9,584	15	–	–129	18,315
Revenue, acquisitions	203	66	–	–	–	268
Total revenue	9,047	9,650	15	–	–129	18,584
Production expenses	–6,697	–7,015	–39	–7	129	–13,630
Gross income	2,350	2,635	–24	–7	–	4,954
Selling and administrative expenses	–1,447	–1,360	–113	–157	–	–3,077
Other income and expenses	–60	–4	–	–3	–	–67
Items affecting comparability	–	–	–	–23	–	–23
Operating income (EBIT)	843	1,271	–137	–190	–	1,786
Net financial items	–	–	–	–116	–	–116
Loss on monetary net assets/liabilities	–	–	–	–118	–	–118
Income before taxes	843	1,271	–137	–424	–	1,552

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Nine months 2021
Revenue	6,826	7,032	3	–	–76	13,785
Revenue, acquisitions	585	23	3	–	–	611
Total revenue	7,412	7,055	6	–	–76	14,397
Production expenses	–5,803	–4,905	–22	–6	76	–10,660
Gross income	1,609	2,150	–16	–6	–	3,737
Selling and administrative expenses	–1,177	–1,074	–85	–128	–	–2,465
Other income and expenses	–21	–2	–	–7	–	–29
Items affecting comparability	–52	–	1	–1	–	–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 BALANCE SHEET

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Europe and Latin America
Assets	12,305	10,854	10,837
Liabilities	5,946	6,514	5,621
USA
Assets	14,658	10,343	10,874
Liabilities	2,128	1,761	1,654
Other 1)
Assets	5,723	6,629	5,517
Liabilities	11,347	9,958	9,890
Shareholders' equity	13,265	9,593	10,063
Group total
Assets	32,686	27,826	27,228
Liabilities	19,421	18,233	17,165
Shareholders' equity	13,265	9,593	10,063

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

NOTE 5 – ITEMS AFFECTING COMPARABILITY

	2022	2021	2022	2021	2021
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Provision for remuneration cost in connection with change of CEO	–	–	–23	–	–
Goodwill impairment within the European segment	–	–52	–	–52	–52
Total items affecting comparability	–	–52	–23	–52	–52

NOTE 6 – LIQUID FUNDS

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Liquid funds	5,668	6,124	5,156
Adjusted for inventory of cash at the cash processing operations	–3,068	-2,533	–2,537
Adjusted for prepayments from customers	–413	-1,447	–609
Liquid funds excluding funds for cash processing activities	2,187	2,143	2,009

NOTE 7 – TRANSACTIONS WITH RELATED PARTIES

Transactions between Loomis and related parties are described in Note 30 of the 2021 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 8 – NUMBER OF SHARES AS OF SEPTEMBER 30, 2022

	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)	–2,961,782	–2,961,782
Total no. of outstanding shares	72,318,047	72,318,047

1) During the period 704,000 shares was added to the treasury shares.

NOTE 9 – CONTINGENT LIABILITIES, GROUP

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Guarantees and other commitments	2,589	2,303	2,411

KEY RATIOS

	2022	2021	2022	2021	2022	2021
	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Real growth, %	15.9	10.8	17.3	8.2	16.7	9.9
Organic growth, %	15.5	5.7	15.4	3.9	14.2	5.6
Total growth, %	31.2	9.1	29.1	0.8	26.3	4.8
Gross margin, %	27.8	27.9	26.7	26.6	27.0	26.5
Selling and administration expenses in % of total revenue	–15.7	–16.5	–16.6	–17.1	–16.8	–17.2
Operating margin (EBITA), %	12.5	11.3	10.7	9.5	10.8	9.9
Tax rate, %	28.9	32.1	29.5	28.6	29.2	28.0
Net margin, %	7.5	5.8	5.9	5.2	6.1	5.6
Return on shareholders' equity, %	11.0	8.8	11.0	8.8	11.0	11.0
Return on capital employed, %	12.6	11.1	12.6	11.1	12.6	11.5
Equity ratio, %	40.6	34.5	40.6	34.5	40.6	37.0
Liquid funds excluding funds within cash processing operations (SEK m)	2,187	2,143	2,187	2,143	2,187	2,009
Net debt (SEK m)	7,064	6,925	7,064	6,925	7,064	7,007
Net debt/EBITDA	1.50	1.88	1.50	1.88	1.50	1.81
Cash flow from operating activities as % of operating income (EBITA)1)	108	96	87	87	84	83
Investments in relation to depreciation	0.6	0.6	0.6	0.5	0.7	0.6
Investments as a % of total revenue	5.0	5.6	5.2	4.9	5.9	5.9
Earnings per share before dilution, SEK	6.92	3.96	14.91	9.92	19.73	14.74
Shareholders' equity per share before dilution, SEK	182.41	127.75	182.41	127.75	182.41	135.35
Cash flow from operating activities per share before dilution, SEK	17.18	11.67	34.76	24.27	47.28	36.79
Dividend per share, SEK	–	–	8.50	6.00	8.50	6.00
Number of outstanding shares (millions)	72.3	74.7	72.3	74.7	72.3	73.8
Average number of outstanding shares before dilution (millions)	72.7	75.1	73.4	75.2	73.6	74.9

1) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2022	2021	2021
SEK m	Nine months	Nine months	Full year
Revenue	594	428	574
Operating income (EBIT)	249	230	281
Income after financial items	417	297	25
Net income for the period	423	330	64

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The increase in result in 2022 is mainly due to increased revenues and a higher financial net.

PARENT COMPANY SUMMARY BALANCE SHEET

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Fixed assets	12,938	12,881	12,634
Current assets	1,894	1,746	1,554
Total assets	14,832	14,627	14,188
Shareholders' equity	3,880	4,933	4,459
Untaxed reserves	15	8	15
Long-term liabilities	4,347	4,713	5,630
Short-term liabilities	6,590	4,973	4,084
Total shareholders' equity and liabilities	14,832	14,627	14,188

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. During the second quarter the parent company paid a dividend to shareholders and during both second and third quarter buy-back share programs were carried through.

CONTINGENT LIABILITIES, PARENT COMPANY

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Guarantees and other commitments	6,203	5,416	5,610

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
• Equity ratio, %
• Capital employed and Return on capital employed
• Return on shareholders' equity

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

Loomis' 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.

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.

	2022	2021
SEK m	Quarter 3 Quarter 3			Growth Growth, %
Recognized revenue	6,739	5,135	1,604	31.2
Organic growth			795	15.5
Revenue, acquisitions			23	0.4
Real growth			818	15.9
Exchange rate effects			785	15.3

	2022	2021
SEK m	Nine months	Nine months		Growth Growth, %
Recognized revenue	18,584	14,397	4,186	29.1
Organic growth			2,220	15.4
Revenue, acquisitions			268	1.9
Real growth			2,489	17.3
Exchange rate effects			1,698	11.8

Operating income (EBIT) before items affecting comparability, Operating income (EBITA) and Operating margin (EBITA), %

Loomis' 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.

	2022	2021	2022	2021	2021
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Operating income (EBIT)	808	489	1,786	1,191	1,738
Adding back items affecting comparability	–	52	23	52	52
Operating income (EBIT) before items affecting comparability	808	540	1,810	1,243	1,790
Adding back acquisition-related costs	2	9	67	29	45
Adding back amortization of acquisition-related intangible assets	35	31	104	95	126
Operating income (EBITA)	845	581	1,981	1,367	1,961
Calculation of operating margin (EBITA), %
EBITA	845	581	1,981	1,367	1,961
Total revenue	6,739	5,135	18,584	14,397	19,723
EBITA/Total revenue, %	12.5	11.3	10.7	9.5	9.9

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

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Short-term loans	1,927	1,421	311
Long-term loans	4,323	4,723	5,636
Total loans payable	6,250	6,143	5,947
Liquid funds excluding funds in cash processing operations	–2,187	–2,143	–2,009
Other interest-bearing assets	–747	–495	–479
Financial net debt	3,317	3,505	3,458
Lease liabilities	4,020	2,945	3,049
Pension net, assets (-) liabilities (+)	–272	474	499
Net debt	7,064	6,925	7,007

	2022	2021	2021
SEK m	Quarter 3 Quarter 3		Full year
Operating income (EBITA), R12	2,575	1,833	1,961
Adding back depreciation/amortization, R12	2,149	1,849	1,901
EBITDA, R12	4,724	3,682	3,862
Net debt/EBITDA (number of times)	1.50	1.88	1.81

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, %

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Shareholders' equity	13,265	9,593	10,063
Total assets	32,697	27,826	27,228
Equity ratio, %	40.6	34.5	37.0

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, %

	2022	2021	2021
SEK m	Sep 30	Sep 30	Dec 31
Fixed assets
Goodwill	8,336	6,913	7,185
Acquisition-related intangible assets	689	730	734
Other intangible assets	346	391	413
Buildings and land	1,153	953	970
Machinery and equipment	5,140	4,250	4,463
Right-of-use assets	3,888	2,916	3,008
Other operating fixed assets1)	999	863	885
Current assets
Accounts receivable	3,439	2,655	2,686
Other operating current assets2)	1,638	1,255	1,025
Funds in cash processing operations	3,481	3,980	3,146
Long-term liabilities
Deferred tax liability	–591	–511	–436
Provisions for claims reserves	–580	–461	–451
Other provisions	–163	–103	–118
Other long-term liabilities	–222	–153	–126
Current liabilities
Accounts payable	–742	–592	–687
Liabilities in cash processing opera tions	–3,088	–3,627	–2,818
Accrued expenses and prepaid income	–2,203	–1,842	–1,689
Other operating current liabilities3)	–1,191	–1,101	–1,119
Capital employed	20,329	16,517	17,070
Operating income (EBITA), R12	2,575	1,833	1,961
Return on capital employed, %	12.7	11.1	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.

	2022	2021	2021
SEK m		Quarter 3 Quarter 3	Full year
Net income for the period, R12	1,453	849	1,104
Shareholders' equity	13,265	9,593	10,063
Return on equity, %	11.0	8.8	11.0

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.
Operating income (EBIT before items affecting comparability)	Earnings before interest, tax and items affecting comparability.
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.
Net debt/EBITDA	Net debt as percentage of operating income after reversal of depreciations and amortizations.
R12	Rolling 12 months.
Scope 1	Green House Gas (GHG) emissions from sources that an organization own or controls directly.
Scope 2	Green House Gas (GHG) emissions that an organization causes indirectly when the energy it purchases, and uses is produced.
n/a	Not applicable.
Other	Amounts in tables and other combined amounts have been rounded off on an individual basis. Minor differences due to this rounding-off, may, therefore, appear in the totals.

Outlook 2022

The company is not providing any forecast information for 2022.

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, October 28, 2022

Aritz Larrea President and CEO

Review Report

Introduction

We have reviewed the interim report for Loomis AB (publ) for the period January 1 – September 30, 2022. 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, October 28, 2022

Deloitte AB

Peter Ekberg Authorized Public Accountant

Loomis in brief

Vision

Managing cash in society.

Financial targets 2022–2024

• Revenue: Average currency-adjusted growth of 5–8 percent per year
• Operating margin EBITA: 12–14 percent for 2024

Sustainability targets 2022–2024

• Reduce carbon emissions by 15 percent compared to 2019. Refers to scope 1&2 in total
• Reduction of the occupational injury frequency by 15 percent compared to 2021

Dividend policy

• 40–60 percent of the result for the year

Telephone conference and audio cast

A telephone conference will be held on October 28, 2022 at 09:00 a.m. (CEST).

To follow the conference call via telephone and participate in Q&A session please call (local call); United Kingdom: +44 (0) 203 059 58 69 USA: +1 (0) 760 294 16 74 Sweden: +46 (0)8 505 100 39 International: +44 (0) 695 660 37 000

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

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

Future reporting

Interim Report	January – December 2022	February 2, 2023
Interim Report	January – March 2023	May 4, 2023
Interim Report	January – June 2023	July 7, 2023
Interim Report	January – September 2023	October 26, 2023

For further information

Jenny Boström, Head of Investor Relations +46 8 522 920 12, e-mail: jenny.bostrom@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 8.00 a.m. (CEST) on October 28, 2022.

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

Operations

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 employed around 24,000 people at the end of 2021 and had revenue in 2021 of approximately SEK 20 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.

Loomis offers secure and effective comprehensive solutions