Loomis — Interim / Quarterly Report 2022

Jul 22, 2022

At the Centre of the Payment Ecosystem

1

Interim Report January – June 2022

Record sales and higher operating margin

Comments on quarter 2

• Revenue for the quarter was SEK 6,217 million (4,779). Real growth was 17.7 percent (22.7) of which organic growth was 16.1 percent (17.3).
• Operating income (EBITA) for the period was SEK 620 million (428) and EBITA operating margin was 10.0 percent (9.0). Excluding Loomis Pay, the operating margin amounted to 10.8 percent (9.6).
• Operating income (EBIT) before items affecting comparability for the period was SEK 539 million (388) and operating margin (EBIT) before items affecting comparability was 8.7 percent (8.1).
• Income before taxes SEK 438 million (338) and net income SEK 296 million (251).
• Earnings per share before and after dilution were SEK 4.02 (3.33).
• Cash flow from operating activities SEK 644 million (290), equivalent to 104 percent (68) of operating income (EBITA).
• Loomis AB repurchased 824,000 own shares during the second quarter.
• 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 2	Quarter 2	Change (%)	Six months	Six months	Change (%)	Full year
Revenue	6,217	4,779	30.1	11,844	9,262	27.9	19,723
Of which:
Organic growth	769	731	16.1	1,424	289	15.4	1,045
Acquisitions and divestments	76	231	1.6	245	368	2.6	815
Exchange rate effects	593	–422	12.4	913	–963	9.9	–950
Total growth	1,438	541	30.1	2,582	–305	27.9	909
Operating income (EBITA)	620	428		1,136	768		1,961
Operating margin (EBITA), %	10.0	9.0		9.6	8.5		9.9
Operating income (EBIT) before items affecting comparability	539	388		1,002	702		1,790
Operating margin (EBIT) before items affecting comparability, %	8.7	8.1		8.5	7.6		9.1
Income before tax	438	338		844	608		1,545
Profit for the period	296	251		591	449		1,104
Earnings per share before and after dilution, SEK	4.02	3.33		8.02	5.96		14.74
Tax rate, %	32	26		30	26		28
Cash flow from operating activities	644	290		821	632		1,620
Cash flow from operating activities as % of operating income (EBITA)	104	68		72	80		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.

This is a translation of the Swedish original report. In the event of differences between the English translation and the Swedish original report, the Swedish original report shall prevail.

Highest revenue ever and highest operating profit for a second quarter

Reported revenue is the highest ever and operating profit continues to grow during the second quarter. Loomis' strong development is supported by the opening of societies post the pandemic in Europe, and continued success for SafePoint in the USA. Loomis Pay transaction volumes show an encouraging development, and we have now initiated a pilot in Spain.

The Group's second quarter organic growth was 16.1 percent (+17.3) and operating margin (EBITA %) was 10.0 percent (9.0). In terms of organic growth Loomis Group have now reported three consecutive quarters with higher revenue than before the pandemic started. Excluding Loomis Pay, operating margin is 10.8 percent (9.6). The quarter's positive development confirms Loomis strength despite significant macroeconomic and geopolitical uncertainties.

Stable demand for cash and payments in uncertain times

Consumers return to shops and restaurants after the lookdowns, which has a positive overall impact on Loomis' business. So does the increased travel and tourism and our FX business shows very strong growth.

Post-pandemic economic recovery and global insecurity are pushing higher

inflation and interest rates. The basic need for cash and payments solutions is vital in our society and Loomis has proven to have a stable business model during macroeconomic uncertain times.

Loomis is affected by supply chain issues, in combination with the challenges posed by the labor shortage in both Europe and the USA. Securing a high level of service quality to Loomis' customers is always our highest priority and currently this commitment results in increased labor costs for overtime.

Loomis' segments show positive development

Within Segment USA, organic revenue grew by 15.7 percent (20.2) in the second quarter. The steady increase in recurring revenues from SafePoint continues and the operating margin in the USA amounted to 13.2 percent (15.5). Our staff deficit is now decreasing, but margins are still impacted by additional costs. We are now focusing on training the new employees.

The positive trend in Segment Europe continued as activities in retail, restaurants, and travel pick up fast. Our organic revenue in the second quarter grew by 16.8 percent (14.2). Operating margin in Europe was 10.3 percent (6.0). The trend in Segment Europe is very encouraging.

Today Loomis Pay is available in Denmark, Sweden and through a partnership in Norway. Market reception has been positive and transaction volumes continue to increase, which has encouraged us to now start a pilot in Spain. Loomis is the only payment service provider who is able to fully manage cash, cards, and other kinds of payments.

Great possibilities ahead

I took over as President and CEO of Loomis on May 23. It is a company that I know well after four years as CEO of Loomis US and another four years as

+16% Organic growth

+21% EPS growth

Country President in Spain. The opportunity to take on this role is a great honor. I feel strongly for the company and have a genuine confidence in what the organization is capable of. I am also certain that we will be able to take advantage of our strong market position and grasp the great opportunities we see.

My mission is clear; it is to implement Loomis' updated strategy. Loomis has a unique position in the centre of the payment ecosystem. A high level of customer trust and a continued outsourcing trend give us good opportunities to take our business to the next level. The strong position also gives us the opportunity to add new services that can simplify our customers' everyday lives and place Loomis higher up in their value chain.

I look forward to working with customers, colleagues, investors, and other partners to realize our strategy based on our strong market position, and to achieve our financial goals as well as our ambitious sustainability targets.

Stockholm, 22 July 2022

Aritz Larrea President and CEO

Revenue and income – Group

Quarter 2

Revenue for the quarter amounted to SEK 6,217 million (4,779). Real growth was 17.7 percent (22.7), of which organic growth was 16.1 percent (17.3). Revenue was positively affected by higher sales in both Europe and the USA, and, to a lesser extent, by the acquisition in Switzerland in May 2021. Societies have opened after the pandemic leading to strong growth in cash volumes including foreign exchange for tourists. Revenues increased from all business lines and also the SafePoint volumes continue its strong growth. For 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 (23).

The operating income (EBITA) amounted to SEK 620 million (428) and the operating margin was 10.0 percent (9.0). The exchange rate effect on operating income during the quarter was approximately SEK 80 million.

For segment information, see pages 4–7.

The operating income (EBIT) before items affecting comparability for the quarter amounted to SEK 539 million (388), which includes amortization of acquisition related intangible assets of SEK –34 million (–31) and acquisition-related costs of SEK –46 million (–10). The operating income included an item affecting comparability amounting to SEK –23 million from additional remuneration cost in connection with the change of CEO.

Income before tax of SEK 438 million (338) includes a net financial expense, including a loss on monetary net assets, of SEK –78 million (–50).

The tax expense for the quarter was SEK –142 million (–87), which represents a tax rate of 32 percent (26).

Earnings per share before and after dilution amounted to SEK 4.02 (3.33).

Six months

Revenue for the period amounted to SEK 11,844 million (9,262). Real growth was 18.0 percent (6.9), of which organic growth was 15.4 percent (3.0). Revenue was positively affected by higher sales in both Europe 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 SafePoint and FX. For the first six 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 (23).

The operating income (EBITA) amounted to SEK 1,136 million (786) and the operating margin was 9.6 percent (8.5). The exchange rate effect on operating income during the first six months was approximately SEK 116 million.

For segment information, see pages 4–7.

The operating income (EBIT) for the first six months amounted to SEK 979 million (702), which includes amortization of acquisition related intangible assets of SEK –69 million (–64) and acquisitionrelated costs of SEK –65 million (–20). 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 of SEK 844 million (608) includes a net financial expense, including a loss on monetary net assets, of SEK –134 million (–95).

The tax expense for the first six months was SEK –253 million (–159), which represents a tax rate of 30 percent (26).

Earnings per share before and after dilution amounted to SEK 8.02 (5.96).

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q2

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 2	Quarter 2	Six months	Six months	R12	Full year
Revenue	3,007	2,456	5,803	4,724	11,258	10,178
Sales growth, %	22.5	19.6	22.9	–3.5	17.0	3.9
-of which organic growth, %	16.8	14.2	15.8	–4.6	9.6	–0.5
-of which acquisitions / divestments, %	2.1	10.8	4.3	7.1	6.7	8.0
-of which exchange rate effects, %	3.5	–5.4	2.8	–6.0	0.8	–3.6
Real growth, %	18.9	25.0	20.1	2.5	16.3	7.5
Operating income (EBITA)	309	148	551	217	1,181	846
Operating margin, %	10.3	6.0	9.5	4.6	10.5	8.3
Number of full-time employees	14,200	13,900	14,100	13,700	14,100	13,900

USA

	2022	2021	2022	2021	2022	2021
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Revenue	3,246	2,348	6,108	4,582	11,209	9,643
Sales growth, %	38.3	6.4	33.3	–2.8	24.6	6.0
-of which organic growth, %	15.7	20.2	15.3	11.1	14.5	12.3
-of which acquisitions / divestments, %	1.0	0.4	0.9	0.4	0.6	0.3
-of which exchange rate effects, %	21.6	–14.1	17.0	–14.2	9.5	–6.6
Real growth, %	16.7	20.6	16.3	11.4	15.0	12.6
Operating income (EBITA)	429	363	800	726	1,527	1,452
Operating margin, %	13.2	15.5	13.1	15.8	13.6	15.1
Number of full-time employees	10,500	8,800	10,500	8,800	10,200	9,300

LOOMIS PAY

	2022	2021	2022	2021	2022	2021
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Revenue	5	1	9	3	17	11
Transaction volume	614	281	969	426	1,822	1,279
Sales growth, %	355.0	n/a	198.7	n/a	75.8	65.8
-of which organic growth, %	342.1	n/a	191.4	n/a	74.9	23.4
-of which acquisitions / divestments, %	–	n/a	–	n/a	–	44.0
-of which exchange rate effects, %	12.9	n/a	7.2	n/a	0.9	–1.5
Real growth, %	342.1	n/a	191.4	n/a	74.9	67.3
Operating income (EBITA)	–52	–33	–101	–65	–185	–149
Operating margin, %	n/a	n/a	n/a	n/a	n/a	n/a

Revenue and income – Europe and Latin America

Quarter 2

Revenue for the quarter amounted to SEK 3,007 million (2,456). Real growth, which was 18.9 percent (25.0), was somewhat positively affected by revenue attributable to the acquisition of the cash handling operations of Swiss Post in May 2021. Organic growth was 16.8 percent (14.2). Overall, there were no restrictions compared with the second quarter 2021 and societies have opened after the pandemic, leading to strong growth in cash volumes including foreign exchange for tourists.

The operating income (EBITA) amounted to SEK 309 million (148) and the operating margin was 10.3 percent (6.0). Increased revenue in combination with the steps that Loomis took early on to compensate for the temporarily lower volumes after the pandemic broke out are providing clear results. Inflation and issues with supply chain impacts margin temporarily. The operations acquired in Switzerland in 2021 are being integrated according to plan and resulting in good synergy effects.

Six months

Revenue for the first six months amounted to SEK 5,803 million (4,724). Real growth, which was 20.1 percent (2.5), was positively affected by revenue attributable to the acquisition of the cash handling operations of Swiss Post in May 2021. Organic growth was 15.8 percent (–4.6). The removal of restrictions has significant impact on the volumes in the first six months compared with 2021 as societies return to normal. In January and the beginning of February this year this segment was negatively affected to some extent by restrictions relating to the Omicron variant. Growth improved from the second half of February and in March once restrictions were eased.

The operating income (EBITA) amounted to SEK 551 million (217) and the operating margin was 9.5 percent (4.6). Increased revenue in combination with the steps that Loomis took early on to compensate for the temporarily lower volumes after the pandemic broke out are providing clear results. Inflation and issues with supply chain impacts margin temporarily. The operations acquired in Switzerland in 2021 are being integrated according to plan and resulting in good synergy effects.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q2

■ ATM, 18% ■ International, 10% ■ SafePoint, 7% ■ FXGS, Loomis Pay, other, 5%

Revenue and income – USA

Quarter 2

Revenue amounted to SEK 3,246 million (2,348) and real growth was 16.7 percent (20.6). Organic growth amounted to 15.7 percent (20.2). 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 18 percent (18) of the segment's total revenue, while ATMs accounted for around 23 percent (25).

The operating income (EBITA) amounted to SEK 429 million (363) and the operating margin was 13.2 percent (15.5). The lower operating margin is primarily due to the current challenges in the labor market and issues with supply chain. 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.

Six months

Revenue amounted to SEK 6,108 million (4,582) and real growth was 16.3 percent (11.4). Organic growth amounted to 15.3 percent (11.1). Similar to previous quarters, the operations in USA continued to show good growth. Revenue from all offerings grew and SafePoint in particular saw increased volumes. Revenue for the first six 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 800 million (726) and the operating margin was 13.1 percent (15.8). 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 US operations have increased the number of employees during the first six months and are now focusing on training.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by segment, Q2

Revenue by segment, R12

Revenue and income – Loomis Pay

Quarter 2

Revenue amounted to SEK 5 million (1). The offering is currently available in the Danish, Swedish and Norwegian markets and a pilot of Loomis Pay in Spain was initiated in the quarter. The ambition is to launch in Spain in the second half of 2022. Dialogue with customers, building up of local sales organizations and continued development of the service offering are prioritized areas.

The segment's operating income (EBITA) amounted to SEK –52 million (–33).

Six months

Revenue amounted to SEK 9 million (3).

The segment's operating income (EBITA) amounted to SEK –101 million (–65). Additional investments will be made in product development and other activities relating to Loomis Pay and the operating income will be negative for 2022 as a whole.

Revenue, SEK m

Sustainability

Solar panel expansion in Spanish branches

Thanks to the continuous work on optimization and improvements Loomis' energy consumption has continuously decreased since 2018. Given the current instability in EU and the increase in energy prices it is important to note that the shift towards renewable energy will not only contribute to reducing Loomis' footprint but also reduce dependency of fossil fuels.

In Spain, extensive work has been done to install solar cells on the roof of Loomis' premises around the country. The first panels, in Barcelona, were installed a year ago and have so far performed according to expectation. During this quarter, three additional solar units have been mounted on the roofs of the Spanish branches, Malaga, Madrid and Alicante. All three installations are up and running since the end of May.

Loomis' total installed capacity of solar panels in Spain is expected to generate an electricity production of 535 MWh/

year, which is 10% of Loomis Spain's total energy usage and will reduce Loomis' emissions by 107 tCO2e per year.

Continued electrification of fleet

Loomis' main climate impact comes from the vehicle fleet. Hence, reduction of fleet emissions is a main priority in Loomis' sustainability efforts. To limit emissions and reduce dependence on fossil fuels, Loomis is switching to lighter vehicles as well as incorporating electrical and hybrid vehicles into the fleet where possible.

After supporting a trial of electrification of armored vehicles in the USA Loomis purchased 20 electrified armored vehicles at the beginning of 2021. Given the shortage of components and challenges with infrastructure the delivery of those vehicles were delayed. The US business now have 8 electrical armored trucks on the road in Charlotte, Houston and California and the reminder of the ordered vehicles are expected to be in operation before the end of the year. In Spain, the first electrical van

Carbon emissions, tCO2e Scope1

has been taken into operations. Similar initiatives are underway throughout Europe.

CSR

Loomis UK are actively working with and fundraising for this year's chosen charity "Macmillan Cancer Support". During the quarter they have arranged several different events. On the 16th of June, a successful charity day was held in the Nottingham branch.The raised funds will be matched by Loomis at the end of the year.

Cash flow and investments

January – June 2022

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 821 million (632), equivalent to 72 percent (80) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –626 million (–417), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 669 million (608). 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 at the end of the second quarter was SEK 19,275 million (17,070 as of December 31, 2021), which is equivalent to around 86 percent (88) of revenue. Return on capital employed amounted to 12 percent (11).

Shareholders' equity and financing

Shareholders' equity increased in the second quarter by SEK 1,673 million, amounting to SEK 11,737 million as of June 30, 2022 (10,063 as of December 31, 2021). The increase is largely explained by translation differences of SEK 1,570 million, net profit for the period of SEK 591 million and actuarial gains of SEK 442 million less dividend of SEK 628 million and share repurchase of SEK 200 million. The return on shareholders' equity was 11 percent (9) and the equity ratio was 38 percent (35).

Net debt amounted to SEK 7,538 million as of June 30, 2022 (7,007 as of December 31, 2021) and net debt/EBITDA amounted to 1.73 (1.81 as of December 31, 2021).

As of June 30, 2022 the long-term loan facilities totaled around SEK 8.9 billion and the short-term loan facilities totaled around SEK 0.3 billion. Unutilized loan facilities amounted to around SEK 3.8 billion, of which SEK 1.2 billion are used as back-up for outstanding commercial papers. Available liquid funds amounted to around SEK 2.3 billion (see Note 7).

Other events

Significant events during the period

On April 12 it was announced that Loomis AB had issued an additional SEK 300 million of sustainability-linked bonds (SLBs). The interest on the bonds is variable and based on three months' Stibor plus a credit margin of 1.48 percentage points. The proceeds will be used for operating activities and to refinance loans. This will involve an increase in the existing SLB program which

matures on November 30, 2026. As with the SLBs issued previously, the new bonds will be listed on Nasdaq Stockholm Sustainable Bond List.

On May 4 2022, Loomis AB held its Annual General Meeting. The Meeting resolved in accordance with the proposals presented by the Board and Nomination Committee, respectively. For information on the decisions made by the Annual General Meeting please refer to the press release published on the same day, which is available on Loomis' website, www.loomis.com.

On May 5 the board of directors of Loomis AB resolved to exercise the authorization to repurchase shares, granted by the annual general meeting on May 4, 2022.

Loomis AB has through the repurchase program that was resolved and communicated on May 5, 2022, and ended on June 22, 2022, repurchased 824,000 own shares at an average price of SEK 242.67 per share, or in total approximately SEK 200 million. The company's holding of own shares thereby amounts to 2,257,782 shares, as of June 30, 2022. The total amount of shares in the company, including the company's own shares, amount to 75,279,829.

The Board of Directors of Loomis AB has, as previously announced, appointed Aritz Larrea as new President and CEO of the company. Aritz took up his position on May 23, 2022.

On June 28 it was announced that Loomis AB issued a sustainability-linked bond loan to Svensk Exportkredit (SEK) of SEK 300 million. The bond loan has a term of 4 years maturing in June 2026 and a floating interest rate. The proceeds will be used for general corporate purposes.

Other events

Loomis disclosed in 2016, and in subsequent annual reports, that Loomis' Spanish subsidiary had been fined approx. EUR 7 million by the Spanish national competition authority (CNMC) for alleged market sharing. Loomis appealed the decision the same year maintaining that Loomis had acted in compliance with the laws in effect and accordingly disagreed with the content of the decision and the fine imposed. On June 29, 2022, a Spanish court rendered a decision to fully uphold Loomis' appeal and annulled CNMC's decision from 2016. CNMC may still appeal the Spanish court's decision. Should the decision now rendered become final, Loomis will recover the fine of approx. EUR 7 million (and 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 July 21 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 July 25, 2022, end not later than on September 28, 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
SEK m	Quarter 2	Quarter 2	Six months	Six months	R12	Full year
Revenue 3,4	6,217	4,779	11,844	9,262	22,305	19,723
Production expenses	–4,579	–3,538	–8,761	–6,925	–16,328	–14,492
Gross income	1,638	1,241	3,083	2,337	5,977	5,231
Selling and administration expenses	–1,052	–844	–2,016	–1,615	–3,797	–3,396
Other income and expenses	–46	–10	–65	–20	–90	–45
Items affecting comparability 5	–23	–	–23	–	–75	–52
Operating income (EBIT)	516	388	979	702	2,014	1 738
Financial income	36	18	60	35	97	71
Financial expenses	–73	–54	–130	–104	–235	–209
Loss on monetary net assets/liabilities	–41	–14	–64	–26	–94	–56
Income before taxes	438	338	844	608	1,782	1,545
Income tax	–142	–87	–253	–159	–535	–440
Net income for the period1)	296	251	591	449	1,247	1,104
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses, net of tax	237	67	442	234	295	87
Items that may be reclassified to the statement of income
Translation differences	1,237	–220	1,570	321	2,229	981
Revaluation of participation in associated companies	10	–	10	–	10	–
Hedging of net investments, net of tax	–95	18	–119	–27	–182	–90
Other comprehensive income and expenses for the period, net after tax	1,390	–134	1,904	529	2,353	978
Total comprehensive income and expenses for the period2)	1,685	116	2,495	978	3,600	2,083
Earnings per share, SEK
Earnings per share before dilution	4.02	3.33	8.02	5.96	16.81	14.74
Earnings per share after dilution	4.02	3.33	8.02	5.96	16.79	14.73
Number of shares
Number of outstanding shares (million)	73.0	75.2	73.0	75.2	73.0	73.8
Average number of outstanding shares before dilution (million)	73.5	75.2	73.7	75.2	74.2	74.9
Average number of outstanding shares after dilution (million)	73.6	75.2	73.7	75.2	74.2	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 2 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	Jun 30	Jun 30	Dec 31
ASSETS
Fixed assets
Goodwill	7,884	6,836	7,185
Intangible assets	1,072	1,131	1,147
Buildings and land	1,084	948	970
Machinery and equipment	4,848	4,201	4,463
Right-of-use assets	3,563	2,873	3,008
Contract assets	201	139	164
Deferred tax assets	400	483	449
Pension plan assets	391	450	225
Interest-bearing financial fixed assets	629	489	466
Other long-term receivables	351	219	273
Total fixed assets	20,425	17,769	18,349
Current assets
Accounts receivable	3,290	2,394	2,686
Other current receivables	316	272	236
Current tax assets	313	435	263
Prepaid expenses and accrued income	967	703	527
Interest-bearing financial current assets	50	14	13
Liquid funds 6	5,817	4,932	5,156
Total current assets	10,753	8,750	8,880
TOTAL ASSETS	31,177	26,519	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	2,152	617	894
Retained earnings including net income for the year	4,616	3,690	4,199
Non-controlling interest	–	1	–
Total shareholders' equity	11,737	9,278	10,063
Long-term liabilities
Interest-bearing non-current lease liabilities	2,831	2,252	2,348
Loans payable	6,595	4,380	5,636
Deferred tax liabilities	506	580	436
Provisions for claims reserves	504	365	451
Provisions for pensions and similar commitments	361	751	724
Other provisions	167	107	118
Other long-term liabilities	185	132	126
Total long-term liabilities	11,148	8,567	9,839
Current liabilities
Interest-bearing current lease liabilities	813	636	701
Loans payable	288	1,589	311
Accounts payable	822	667	687
Provisions for claims reserves	270	252	231
Current tax liabilities	206	207	274
Liabilities, cash processing operations	3,285	2,963	2,818
Accrued expenses and prepaid income	1,866	1,644	1,689
Other provisions	39	70	45
Other current liabilities	702	645	569
Total current liabilities	8,292	8,674	7,326
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	31,177	26,519	27,228

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2022	2021	2021
SEK m	Six months	Six months	Full year
Opening balance	10,063	8,773	8,773
Actuarial gains and losses after tax	442	234	87
Exchange rate differences	1,570	321	981
Revaluation of participation in associated companies	10	–	–
Hedging of net investments, net of tax	–119	–27	–90
Total other comprehensive income	1,904	529	978
Net income for the period	591	449	1,104
Total comprehensive income1)	2,495	978	2,083
Dividend paid to Parent Company's shareholders	–628	–451	–451
Share-related remuneration	7	–21	9
Acquisition of own shares	–200	–	–350
Non-controlling interest	–	–	–1
Closing balance	11,737	9,278	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
			Six	Six
SEK m Note	Quarter 2	Quarter 2	months	months	Full year
Operations
Income before taxes	438	338	845	608	1,545
Depreciation and amortization	582	496	1,144	989	2,027
Other items not affecting cash flow	97	24	141	–1	141
Financial items received	12	6	26	13	29
Financial items paid	–68	–57	–137	–109	–223
Income tax paid	–257	–166	–375	–248	–375
Change in accounts receivable	–309	–177	–349	–143	–341
Change in other operating capital employed and other items	293	2	6	–160	–45
Cash flow from operations	789	469	1,300	948	2,758
Investing activities
Investments in fixed assets	–338	–246	–661	–421	–1,162
Disposals of fixed assets	33	2	34	4	6
Acquisitions of operations	0	–161	0	–161	–230
Cash flow from investing activities	–304	–405	–626	–578	–1,386
Financing activities
Dividend paid	–628	–451	–628	–451	–451
Acquisition of own shares	–200	−	–200	–	–350
Issuance of bonds	600	–	600	–	1,200
Issuance of commercial papers and other long-term borrowing	1,725	1,433	3,030	2,208	4,489
Redemption of commercial papers and other long-term borrowing	–1,460	–1,020	–2,825	–2,150	–5,758
Change in other interest-bearing net debt	–212	–249	–492	–420	–619
Cash flow from financing activities	–175	–287	–514	–814	–1,489
Cash flow for the period	310	–224	160	–444	–117
Liquid fund at beginning of the period1)	1,884	1,888	2,009	2,056	2,056
Translation differences in liquid funds	87	–30	112	22	71
Liquid funds at end of period1)	2,281	1,634	2,281	1,634	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 2	Quarter 2	Six months	Six months	R12	Full year
Operating income (EBITA)1)	600	412	1,097	755	2,238	1,896
Depreciation1)	338	302	669	608	1,301	1,240
Change in accounts receivable	–309	–177	–349	–143	–548	–341
Change in other operating capital employed and other items1)	320	–4	31	–171	184	–19
Cash flow from operating activities before investments	948	534	1,447	1,048	3,175	2,776
Investments in fixed assets, net	–304	–244	–626	–417	–1,366	–1,156
Cash flow from operating activities	644	290	821	632	1,809	1,620
Financial items paid and received1)	–29	–29	–60	–51	–112	–104
Income tax paid	–257	–166	–375	–248	–502	–375
Free cash flow	358	96	386	332	1,194	1,141
Cash flow effect of items affecting comparability	–2	–15	–4	–69	–11	–76
Acquisition of operations	–	–161	–	–161	–68	–230
Acquisition-related costs and revenue, paid and received2)	–49	–20	–78	–47	–104	–73
Dividend paid	–628	–451	–628	–451	–628	–451
Acquisition of own shares	–200	−	–200	–	–550	–350
Issuance of bonds	600	−	600	–	1,800	1,200
Issuance of commercial papers and other long-term borrowing	1,725	1,433	3,030	2,208	5,311	4,489
Redemption of commercial papers and other long-term borrowing	–1,460	–1,020	–2,825	–2,150	–6,433	–5,758
Change in other interest-bearing net debt1)	–35	–85	-122	–105	–26	–9
Cash flow for the period	310	–224	160	–444	486	–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.

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 corona pandemic that broke out in early 2020 had a negative effect on the world economy and the economy also in 2021. For Loomis, this meant deteriorating conditions in a number of markets, especially in Europe. It cannot be ruled out that the pandemic may have a negative effect on Loomis' earnings and financial position in the remaining part of 2022.

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 func tions and elimina tions	Total	Europe	USA	Loomis Pay	Group wide func tions and elimina tions	Total
SEK m			Quarter 2 2022					Quarter 2 2021
Cash in transit (CIT)	1,116	1,242	−	−	2,358	899	835	–	–	1,734
Cash management services (CMS)	686	507	−	−	1,193	559	399	–	–	958
ATM	546	757	−	−	1,303	520	592	–	–	1,113
SafePoint	206	600	−	−	806	162	417	–	–	580
International	286	110	−	−	396	222	82	–	–	304
FXGS	112	−	−	−	112	52	–	−	−	52
Loomis Pay	−	−	5	−	5	–	–	1	−	1
Revenue, other and internal	55	30	−	–42	43	41	22	−	–25	38
Total revenue	3,007	3,246	5	–42	6,217	2,456	2,348	1	–25	4,779
Timing of revenue recognition, external
At a point in time	630	117	2	−	749	465	81	–	−	547
Over time	2,353	3,111	4	−	5,468	1,975	2,256	1	−	4,232
Total external revenue	2,983	3,228	6	–	6,217	2,441	2,337	1	–	4,779

	Europe and Latin America	USA	Loomis Pay	Group wide func tions and elimina tions	Total	Europe and Latin America	USA	Loomis Pay	Group wide func tions and elimina tions	Total
SEK m			Six months 2022					Six months 2021
Cash in transit (CIT)	2,171	2,297	−	−	4,468	1,791	1,642	–	–	3,434
Cash management services (CMS)	1,322	953	−	−	2,275	1,077	757	–	–	1,834
ATM	1,055	1,456	−	−	2,511	925	1,164	–	–	2,089
SafePoint	407	1,137	−	−	1,543	295	820	–	–	1,116
International	531	209	−	−	740	427	155	–	–	582
FXGS	203	−	−	−	203	118	–	−	−	118
Loomis Pay	−	−	9	−	9	–	–	3	−	3
Revenue, other and internal	114	57	−	–76	95	90	43	−	–46	87
Total revenue	5,803	6,108	9	–76	11,844	4,724	4,582	3	–46	9,262
Timing of revenue recognition, external
At a point in time	1,195	225	3	−	1,423	907	153	1	−	1,061
Over time	4,563	5,853	6	−	10,422	3,789	4,409	2	−	8,201
Total external revenue	5,758	6,078	9	–	11,844	4,697	4,562	3	–	9,262

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2022	2021	2022	2021	2021
SEK m	Quarter 2	Quarter 2	Six months	Six months	Full year
USA	3,246	2,348	6,108	4,582	9,643
France	809	634	1,549	1,288	2,737
Spain	377	325	729	627	1,345
Switzerland	421	321	827	534	1,320
UK	296	233	573	428	941
Sweden	194	169	384	334	676
Other countries and eliminations	873	750	1,674	1,467	3,061
Total revenue	6,217	4,779	11,844	9,262	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					Full
SEK m	Q1	Q2	Q3	Q4	year	Q1	Q2	Q3	Q4	year
Europe and Latin America	2,268	2,456	2,688	2,766	10,178	2,796	3,007	–	–	–
USA	2,234	2,348	2,473	2,587	9,643	2,862	3,246	–	–	–
Loomis Pay	2	1	3	5	11	3	5	–	–	–
Group-wide functions	–	–	–	–	–	–	–	–	–	–
Eliminations	–21	–25	–29	–33	–109	–34	–42	–	–	–
Total revenue	4,483	4,779	5,135	5,325	19,723	5,627	6,217	–	–	–

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	–	–	–
USA	363	363	359	367	1,452	371	429	–	–	–
Loomis Pay	–32	–33	–36	–48	–149	–49	–52	–	–	–
Group-wide functions	–42	–51	–42	–55	–189	–49	–66	–	–	–
Operating income (EBITA)	358	428	581	594	1,961	516	620	–	–	–

OPERATING INCOME (EBIT)

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

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin		Loomis	Group-wide
	America	USA	Pay	functions	Eliminations	Total
SEK m		Six months 2022
Revenue	5,601	6,066	9	–	–76	11,599
Revenue, acquisitions	203	43	–	–	–	245
Total revenue	5,803	6,108	9	–	–76	11,844
Production expenses	–4,350	–4,456	–27	–3	76	–8,761
Gross income	1,453	1,652	–18	–3	–	3,083
Selling and administrative expenses	–958	–860	–83	–115	–	–2,016
Other income and expenses	–60	–4	–	–2	–	–65
Items affecting comparability	–	–	–	–23	–	–23
Operating income (EBIT)	435	788	–101	–143	–	979
Net financial items	–	–	–	–70	–	–70
Loss on monetary net assets/liabilities	–	–	–	–64	–	–64
Income before taxes	435	788	–101	–277	–	844

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m		Six months 2021
Revenue	4,376	4,565	–	–	–46	8,894
Revenue, acquisitions	348	17	3	–	–	368
Total revenue	4,724	4,582	3	–	–46	9,262
Production expenses	–3,793	–3,165	–9	–4	46	–6,925
Gross income	930	1,417	–6	–4	–	2,337
Selling and administrative expenses	–770	–698	–59	–88	–	–1,615
Other income and expenses	–2	–2	–	–10	–	–20
Items affecting comparability	–	–	–	–	–	–
Operating income (EBIT)	153	717	–65	–102	–	702
Net financial items	–	–	–	–69	–	–69
Loss on monetary net assets/liabilities	–	–	–	–26	–	–26
Income before taxes	153	717	–65	–197	–	608

SEGMENT OVERVIEW BALANCE SHEET

	2022	2021	2021
SEK m	Jun 30	Jun 30	Dec 31
Europe and Latin America
Assets	11,851	11,095	10,837
Liabilities	5,991	5,819	5,621
USA
Assets	13,250	9,733	10,874
Liabilities	1,921	1,499	1,654
Other 1)
Assets	6,076	5,691	5,517
Liabilities	11,258	9,923	9,890
Shareholders' equity	11,737	9,278	10,063
Group total
Assets	31,177	26,519	27,228
Liabilities	19,440	17,241	17,165
Shareholders' equity	11,737	9,278	10,063

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

NOTE 5 – ITEMS AFFECTING COMPARABILITY

	2022	2021	2022	2021	2021
			Six	Six
SEK m	Quarter 2	Quarter 2	months	months	Full year
Provision for remuneration cost in connection with change of CEO	–23	–	–23	–	–
Goodwill impairment within the European segment	–	–	–	–	–52
Total items affecting comparability	–23	–	–23	–	–52

NOTE 6 – LIQUID FUNDS

	2022	2021	2021
SEK m	Jun 30	Jun 30	Dec 31
Liquid funds	5,817	4,932	5,156
Adjusted for inventory of cash at the cash processing operations	–2,894	–2,710	–2,537
Adjusted for prepayments from customers	–643	–588	–609
Liquid funds excluding funds for cash processing activities	2,281	1,634	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 JUNE 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)	–2,257,782	–2,257,782
Total no. of outstanding shares	73,022,047	73,022,047

1) During the period 824,000 shares was added to the treasury shares.

NOTE 9 – CONTINGENT LIABILITIES, GROUP

	2022	2021	2021
SEK m	Jun 30	Jun 30	Dec 31
Guarantees and other commitments	2,514	1,922	2,411

KEY RATIOS

	2022	2021	2022	2021	2022	2021
			Six	Six
	Quarter 2	Quarter 2	months	months	R12	Full year
Real growth, %	17.7	22.7	18.0	6.9	15.5	9.9
Organic growth, %	16.1	17.3	15.4	3.0	11.8	5.6
Total growth, %	30.1	12.8	27.9	–3.2	20.5	4.8
Gross margin, %	26.3	26.0	26.0	25.2	26.8	26.5
Selling and administration expenses in % of total revenue	–16.9	–17.7	–17.0	–17.4	–17.0	–17.2
Operating margin (EBITA), %	10.0	9.0	9.6	8.5	10.4	9.9
Tax rate, %	32.0	26.0	30.0	26.0	30.0	28
Net margin, %	4.8	5.2	5.0	4.8	5.6	5.6
Return on shareholders' equity, %	10.6	8.6	10.6	8.6	10.6	11.0
Return on capital employed, %	12.0	10.9	12.0	10.9	12.0	11.5
Equity ratio, %	37.6	35.0	37.6	35.0	37.6	37.0
Liquid funds excluding funds within cash processing operations (SEK m)	2,281	1,634	2,281	1,634	2,281	2,009
Net debt (SEK m)	7,538	7,021	7,538	7,021	7,538	7,007
Net debt/EBITDA	1.73	1.95	1.73	1.95	1.71	1.81
Cash flow from operating activities as % of operating income (EBITA)1)	104	68	72	80	78	83
Investments in relation to depreciation	0.6	0.5	0.6	0.5	0.7	0.6
Investments as a % of total revenue	4.9	5.1	5.3	4.5	6.1	5.9
Earnings per share before dilution, SEK	4.02	3.33	8.02	5.96	16.81	14.74
Shareholders' equity per share before dilution, SEK	159.61	123.34	127.75	123.34	159.61	135.35
Cash flow from operating activities per share before dilution, SEK	10.73	6.23	18.25	12.60	41.90	36.79
Dividend per share, SEK	8.50	6.00	8.50	6.00	8.50	6.00
Number of outstanding shares (millions)	73.0	75.2	73.0	75.2	73.0	73.8
Average number of outstanding shares before dilution (millions)	73.5	75.2	73.7	75.2	74.2	74.9

1) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2022	2021	2021
SEK m	Quarter 2	Quarter 2	Full year
Revenue	391	279	574
Operating income (EBIT)	152	149	281
Income after financial items	326	225	25
Net income for the period	327	201	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	Jun 30	Jun 30	Dec 31
Fixed assets	12,868	12,863	12,634
Current assets	2,073	1,411	1,554
Total assets	14,941	14,274	14,188
Shareholders' equity	3,979	4,916	4,459
Untaxed reserves	15	8	15
Long-term liabilities	6,619	4,546	5,630
Short-term liabilities	4,328	4,804	4,084
Total shareholders' equity and liabilities	14,941	14,274	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.

CONTINGENT LIABILITIES, PARENT COMPANY

	2022	2021	2021
SEK m	Jun 30	Jun 30	Dec 31
Guarantees and other commitments	5,714	5,535	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 2 Quarter 2			Growth Growth, %
Recognized revenue	6,217	4,779	1,438	30.1
Organic growth			769	16.1
Revenue, acquisitions			76	1.6
Real growth			845	17.7
Exchange rate effects			593	12.4

	2022	2021
SEK m	Six months	Six months		Growth Growth, %
Recognized revenue	11,844	9,262	2,582	27.9
Organic growth			1,424	15.4
Revenue, acquisitions			245	2.6
Real growth			1,669	18.0
Exchange rate effects			913	9.9

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 2	Quarter 2	Six months	Six months	Full year
Operating income (EBIT)	516	388	978	702	1,738
Adding back items affecting comparability	23	–	23	–	52
Operating income (EBIT) before items affecting comparability	539	388	1,002	702	1,790
Adding back acquisition-related costs	46	10	65	20	45
Adding back amortization of acquisition-related intangible assets	34	31	69	64	126
Operating income (EBITA)	620	428	1,136	786	1,961
Calculation of operating margin (EBITA), %
EBITA	620	428	1,136	786	1,961
Total revenue	6,217	4,779	11,844	9,262	19,723
EBITA/Total revenue, %	10.0	9.0	9.6	8.5	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	Jun 30	Jun 30	Dec 31
Short-term loans	288	1,589	311
Long-term loans	6,595	4,380	5,636
Total loans payable	6,883	5,969	5,947
Liquid funds excluding funds in cash processing operations Other interest-bearing assets	–2,281 –679	–1,634 –503	–2,009 –479
Financial net debt	3,924	3,832	3,458
Lease liabilities	3,644	2,888	3,049
Pension liabilities, net	–30	301	499
Net debt	7,538	7,021	7,007

	2022	2021	2021
SEK m	Q2	Q2	Full year
Operating income (EBITA), R12	2,311	1,770	1,961
Adding back depreciation/amortization, R12	2,051	1,823	1,901
EBITDA, R12	4,362	3,593	3,862
Net debt/EBITDA (number of times)	1.73	1.95	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	Jun 30	Jun 30	Dec 31
Shareholders' equity	11,737	9,278	10,063
Total assets	31,177	26,519	27,228
Equity ratio, %	37.6	35.0	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	Jun 30	Jun 30	Dec 31
Fixed assets
Goodwill	7,884	6,836	7,185
Acquisition-related intangible assets	704	758	734
Other intangible assets	369	373	413
Buildings and land	1,084	948	970
Machinery and equipment	4,848	4,201	4,463
Right-of-use assets	3,563	2,873	3,008
Other operating fixed assets1)	952	840	885
Current assets
Accounts receivable	3,290	2,394	2,686
Other operating current assets2)	1,595	1,410	1,025
Funds in cash processing operations	3,537	3,298	3,146
Long-term liabilities
Deferred tax liability	–506	–580	–436
Provisions for claims reserves	–504	–365	–451
Other provisions	–166	–107	–118
Other long-term liabilities	–185	–132	–126
Current liabilities
Accounts payable	–822	–667	–687
Liabilities in cash processing opera tions	–3,285	–2,963	–2,818
Accrued expenses and prepaid income	–1,866	–1,644	–1,689
Other operating current liabilities3)	–1,217	–1,174	–1,119
Capital employed	19,275	16,299	17,070
Operating income (EBITA), R12	2,311	1,770	1,961
Return on capital employed, %	12.0	10.9	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	Q2	Q2	Full year
Net income for the period, R12	1,247	798	1,104
Shareholders' equity	11,737	9,278	10,063
Return on equity, %	10.6	8.6	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.
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 interimreport 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, July 22, 2022

Alf Göransson Jeanette Almberg Chairman of the Board Board member

Cecilia Daun Wennborg Liv Forhaug Board member Board member

Johan Lundberg Lars Blecko

Board member Board member

Santiago Galaz Chalanja Henningsson Board member Board member employee representative

Aritz Larrea 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 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 July 22, 2022 at 09:00 a.m. (CET).

To follow the conference call via telephone and participate in Q&A session please call (local call); United Kingdom: +44 (0)330 165 3641 USA: +1 646-828-8082 Sweden: +46 (0)8 566 427 54 Code: 227140

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 February 2, 2023

Interim Report January – September October 28, 2022

For further information

Kristian Ackeby, Chief Financial Officer +46 70 569 6998, e-mail: kristian.ackeby@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. (CET) on July 22, 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

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 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.