Loomis — Interim / Quarterly Report 2023

Oct 26, 2023

Continued profitable growth

• Revenue for the third quarter was SEK 7,408 million (6,739). Real growth was 6.9 percent (15.9) of which organic growth was 6.3 percent (15.5).
• Operating income (EBITA) for the quarter was SEK 814 million (845) and includes non-recurring items of SEK −78 million. The operating margin (EBITA) was 11.0 percent (12.5).
• Operating income (EBIT) before items affecting comparability for the quarter was SEK 774 million (808) and operating margin (EBIT) before items affecting comparability was 10.4 percent (12.0).
• Income before taxes for the quarter was SEK 596 million (708) and net income was SEK 421 million (503).
• Earnings per share before dilution for the quarter were SEK 5.92 (6.92) and after dilution 5.90 (6.91).
• Cash flow from operating activities amounted to SEK 736 million (911) in the quarter, equivalent to 90 percent (108) of operating income (EBITA).
• The strategic acquisition of Cima S.p.A., that was announced in the third quarter, was closed in October.

	2023	2022		2023	2022		2022
SEK m	Quarter 3	Quarter 3	Change (%)	Nine months	Nine months	Change (%)	Full year
Revenue	7,408	6,739	9.9	21,292	18,584	14.6	25,315
Of which:
Organic growth	427	795	6.3	1,544	2,220	8.3	2,847
Acquisitions and divestments	35	23	0.5	94	268	0.5	285
Exchange rate effects	206	785	3.1	1,069	1,698	5.8	2,460
Total growth	669	1,604		2,708	4,186		5,592
Operating income (EBITA)	814	845		2,283	1,981		2,735
Operating margin (EBITA), %	11.0	12.5		10.7	10.7		10.8
Operating income (EBIT) before items affecting comparability	774	808		2,150	1,810		2,555
Operating margin (EBIT) before items affecting compara bility, %	10.4	12.0		10.1	9.7		10.1
Income before tax	596	708		1,691	1,552		2,172
Profit for the period	421	503		1,181	1,094		1,602
Earnings per share before dilution, SEK	5.92	6.92		16.58	14.91		21.93
Tax rate, %	29	29		30	30		26
Cash flow from operating activities	736	911		1,765	1,732		2,316
Cash flow from operating activities as % of operating income (EBITA)	90	108		77	87		85

KEY RATIOS

Explanation and reconciliation of alternative performance measures can be found on pages 23–24 of this report and under Definitions on page 25.

A solid quarter despite non-recurring items in Europe

For the third quarter 2023, Loomis reported record revenues of SEK 7.4 billion with solid organic growth for all segments. The performance in the US and Loomis Pay was strong while we had a challenging quarter for the segment Europe and Latin America. The Group's operating result (EBITA) amounted to 814 (845), corresponding to a margin of 11.0 (12.5).

Solid organic growth

Segment USA continued to grow at a strong rate during the quarter, with an organic growth of 6.1 percent. Revenues reached a record high SEK 3,842 million (3,542). Notably our automated solutions recorded yet another consecutive quarter with double-digit organic growth, and we are confident that we continue to take market share with our SafePoint solutions. Through a structured work on operational efficiencies and increasing productivity, the operating result (EBITA) increased to 547 (488), corresponding to a margin of 14.2 percent (13.8).

Segment Europe and Latin America reached record high revenues of SEK 3,588 million (3,244) with an organic growth of 6.3 percent. The operating profit (EBITA) of SEK 387 million (435), and corresponding margin of 10.8 percent (13.4), were negatively affected by nonrecurring items within the International and FX business lines. We are confident in our business and that these losses are

not structural in nature and thus nonrecurring.

We continue to see that our efforts within Loomis Pay are paying off in terms of both increased revenues and transaction volumes. Revenues reached SEK 15 million, with sharp growth within all three markets, both sequentially and compared to the previous year. We achieved transaction volumes above SEK 1.3 billion, which corresponds to a 94 percent increase compared to the previous year.

Strengthened position in automated solutions

I am pleased that we have now closed the acquisition of CIMA that we announced in the third quarter. CIMA brings a proven track record of innovation and R&D within cash automation and complements Loomis in terms of both product offering, technological solutions as well as geographic presence. Together, we will combine our strengths and capabilities to provide enhanced solutions and further develop best-in-class cash-handling automation solutions with the customer in mind. I welcome CIMA to the Loomis Group and look forward to our journey ahead.

Advancing within sustainability

We have committed to reducing our company's carbon emissions and to safeguard both our customers and employees. We can see that our sustainabilityrelated projects are moving forward. An initiative to install solar panels, for instance, has started in the US. Eventually, the solar panels should be able to meet around 20 percent of the energy needs of a US branch.

I am also pleased to share that in the third quarter, approximately 30 percent of our energy consumption came from renewable energy sources. I am proud of the actions we are taking within the organization and the progress we are making.

A strong business model

A true strength with our decentralized business model is our ability to quickly

+6.3% Organic growth Q3

11.0% Operating margin (EBITA) Q3

react to the changes in local market conditions. The continuing geopolitical and macroeconomic concerns in the current climate have a dual impact on the markets we are in. While increased inflation may change consumptions patterns within the retail business, higher interest rates provide an incentive for financial institutions to move cash quicker which affects our business positively. The higher interest rate environment also impacts the demand for storage and transportation of cash and valuables, which affects our International business negatively. As always, we are monitoring how the changing environment may impact both our business and our customers and will continue to adapt the operations as needed. Our first and foremost responsibility will always be to ensure the safety of our employees.

We had a solid performance in the quarter, and I am proud of what we together as a team have achieved. It is evident that we play an important role in society in ensuring cash accessibility and efficient payment flows, and I would like to take the opportunity to thank our dedicated employees for their efforts.

Stockholm, 26 October, 2023

Aritz Larrea President and CEO

Revenue and income – Group

Quarter 3 2023

Revenue for the quarter amounted to record high SEK 7,408 million (6,739). Real growth was 6.9 percent (15.9), of which organic growth was 6.3 percent (15.5). Revenues in the third quarter increased across all segments and for most business lines compared to the previous year, except for International where revenues declined organically.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 35 percent (34) of the Group's total revenue, of which revenues from SafePoint were 14 percent (13) of the total revenue and the corresponding proportion for ATMs was 21 percent (21).

The operating income (EBITA) amounted to SEK 814 million (845) and the operating margin was 11.0 percent (12.5). Without the impact of two non-recurring items in segment Europe and Latin America, the operating margin would have been 12.0 percent. See page 5 for further information. The exchange rate effect on operating income during the quarter was approximately SEK 12 million (112).

For segment information, see pages 4–7.

Items affecting comparability amounted to SEK –2 million and were related to restructuring in segment Europe and Latin America.

The operating income (EBIT) before items affecting comparability for the quarter amounted to SEK 774 million (808), which includes amortization of acquisition related intangible assets of SEK –38 million (–35) and acquisition-related costs of SEK –3 million (–2).

Net financial expenses increased to SEK –175 million (–100) in the quarter, mainly due to higher interest rates. The net financial expenses included losses on monetary net assets amounting to –42 million (–53) originating from Turkey and Argentina.

Income before tax amounted to SEK 596 million (708). The tax expense for the quarter was SEK –176 million (–205).

Nine months 2023

Revenue for the period amounted to SEK 21,292 million (18,584). Real growth was 8.8 percent (17.3), of which organic growth was 8.3 percent (15.4). Revenues increased across all segments. Revenues also increased for all business lines.

Recurring revenue increased in the period. Revenue from SafePoint and ATM amounted to 35 percent (34) of the Group's total revenue, of which revenues from SafePoint were 14 percent (13) of the total revenue and the corresponding proportion for ATMs was 21 percent (21).

The operating income (EBITA) amounted to SEK 2,283 million (1,981) and the operating margin was 10.7 percent (10.7). The exchange rate effect on operating income during the period was approximately SEK 114 million (229).

For segment information, see pages 4–7.

Items affecting comparability amounted to SEK –27 million for the first nine months related to restructuring in segment Europe and Latin America. The previous year included items affecting comparability of SEK −23 million.

The operating income (EBIT) before items affecting comparability for the period amounted to SEK 2,150 million (1,810), which includes amortization of acquisition related intangible assets of SEK –110 million (–104) and acquisitionrelated costs of SEK –23 million (–67).

Net financial expenses increased to SEK –432 million (–235) in the period, mainly due to higher interest rates. The net financial expenses included losses on monetary net assets amounting to –93 million (–118) originating from Turkey and Argentina.

Income before tax amounted to SEK 1,691 million (1,552). The tax expense for the first nine months was SEK –510 million (–458).

Earnings per share before dilution amounted to 16.58 (14.91).

Revenue, SEK billion

Operating margin (EBITA), %

Operating margin (EBITA) rolling 12 months

Revenue by business line, Q3

Revenue by business line, R12

Earnings per share before dilution amounted to 5.92 (6.92).

The segments

Revenue, operating income and number of full-time employees

EUROPE AND LATIN AMERICA

	2023	2022	2023	2022		2022
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Revenue	3,588	3,244	10,234	9,047	13,442	12,255
Sales growth, %	10.6	20.7	13.1	22.1	13.8	20.4
-of which organic growth, %	6.3	16.4	8.1	16.0	8.2	14.3
-of which acquisitions / divestments, %	–	0.0	–	2.7	–	2.0
-of which exchange rate effects, %	4.3	4.3	5.0	3.3	5.6	4.1
Real growth, %	6.3	16.4	8.1	18.7	8.2	16.3
Operating income (EBITA)	387	435	1,049	987	1,380	1,317
Operating margin, %	10.8	13.4	10.3	10.9	10.3	10.7
Number of full-time employees	14,400	14,400	14,400	14,200	14,300	14,300

USA

	2023	2022	2023	2022		2022
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Revenue	3,842	3,542	11,137	9,650	14,698	13,211
Sales growth, %	8.5	43.2	15.4	36.8	20.1	37.0
-of which organic growth, %	6.1	15.2	8.3	15.3	8.9	15.0
-of which acquisitions / divestments, %	1.0	0.9	1.0	0.9	0.8	0.9
-of which exchange rate effects, %	1.3	27.1	6.1	20.6	10.4	21.1
Real growth, %	7.1	16.1	9.3	16.2	9.7	15.9
Operating income (EBITA)	547	488	1,562	1,288	2,096	1,822
Operating margin, %	14.2	13.8	14.0	13.3	14.3	13.8
Number of full-time employees	10,500	10,400	10,800	10,500	10,700	10,500

LOOMIS PAY

	2023	2022	2023	2022	2022
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Revenue	15	6	34	15	41	21
Transaction volume	1,367	704	3,108	1,672	3,757	2,322
Sales growth, %	148.9	84.5	132.3	137.5	93.3	92.4
-of which organic growth, %	142.6	80.2	126.5	131.9	87.9	86.2
-of which acquisitions / divestments, %	–	–	–-	–	–	–
-of which exchange rate effects, %	6.3	4.4	5.8	5.7	5.4	6.1
Real growth, %	142.6	80.2	126.5	131.9	87.9	86.2
Operating income (EBITA)	–52	–36	–159	–137	–199	–178
Operating margin, %	n/a	n/a	n/a	n/a	n/a	n/a

Revenue and income – Europe and Latin America

Quarter 3 2023

Revenue for the quarter amounted to SEK 3,588 million (3,244). Real growth was 6.3 percent (16.4). Organic growth was 6.3 percent (16.4), where both volume and price contributed to the growth.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 27 percent (26) of the segment's total revenue, of which revenue from SafePoint amounted to 7 percent (7) of the revenue. The corresponding proportion for ATMs was 20 percent (19).

Most business lines had a strong revenue growth. Revenue for the International business declined organically compared to the previous year. The demand for storage of cash and valuables is affected negatively by the higher interest rate environment which has an impact on the International business.

The operating income (EBITA) amounted to SEK 387 million (435), corresponding to a margin of 10.8 percent (13.4). Volume growth, price adjustments and increased efficiencies had a positive impact on the operating income, however this was offset by two non-recurring items. The quarter contained a cost of SEK 61 million related to theft of valuables within the international operations. Additionally, a cost of SEK 17 million was recorded within the FX business line due to issues with a system implementation. The company is confident that these incidents are not structural in nature and thus non-recurring. Without these costs, the operating margin would have reached 13.0 percent.

The announced restructuring plan is progressing with a slight delay in implementation. Related costs in the quarter amounted to SEK −2 million.

Nine months 2023

Revenue for the period amounted to SEK 10,234 million (9,047). Real growth was 8.1 percent (18.7). Organic growth was 8.1 percent (16.0), where both volume and price contributed to the growth.

Recurring revenue increased in the period. Revenue from SafePoint and ATM amounted to 27 percent (25) of the segment's total revenue, of which revenue from SafePoint amounted to 7 percent (7) of the revenue. The corresponding proportion for ATMs was 20 percent (18).

The operating income (EBITA) amounted to SEK 1,049 million (987) and the operating margin increased to 10.3 percent (10.9). The margin was positively impacted by increased volumes, higher efficiencies and price adjustments but was offset by continued inflationary pressure and two non-recurring items within the International and FX business lines in the third quarter.

During the first quarter of 2023, a restructuring plan was initiated. The total expected restructuring costs amount to SEK 50−60 million, of which SEK 27 million have been recorded in the first nine months.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q3

Revenue by business line, R12

Revenue and income – USA

Quarter 3 2023

Revenue amounted to SEK 3,842 million (3,542) and real growth was 7.1 percent (16.1). Organic growth amounted to 6.1 percent (15.2). Similar to previous quarters, the operations in USA continued to show good volume growth. Revenue grew within most business lines, and with high growth for SafePoint in particular. Increased prices also contributed to the organic growth. The acquisition of AIB Express Logistics, which was closed during February, contributed to 1.0 percent of the total growth.

Recurring revenue increased in the quarter. Revenue from SafePoint and ATM amounted to 44 percent (42) of the segment's total revenue, of which revenue from SafePoint accounted for 21 percent (19) of the segment's revenue, and ATMs accounted for 23 percent (23).

The operating income (EBITA) increased to SEK 547 million (488) thanks to a structured work on operational efficiencies. The operating margin increased to 14.2 percent (13.8). There are indications that the labor market in the US is easing which stabilizes the situation that the US operations has had with overtime, training and recruitment related costs.

Nine months 2023

Revenue amounted to SEK 11,137 million (9,650) and real growth was 9.3 percent (16.2). Organic growth amounted to 8.3 percent (15.3). Similar to previous quarters, the operations in USA continued to show good volume growth. Revenue from all offerings grew with high growth for SafePoint in particular. Increased prices also contributed to the organic growth. The acquisition of AIB Express Logistics, which was closed during February, contributed to 1.0 percent of the total growth.

Recurring revenue increased during the year. Revenue from SafePoint and ATM amounted to 44 percent (43) of the segment's total revenue, of which revenue from SafePoint accounted for 21 percent (19) of the segment's revenue, and ATMs accounted for 23 percent (24).

The operating income (EBITA) amounted to SEK 1,562 million (1,288) and the operating margin was 14.0 percent (13.3). The margin was positively affected by the increased volumes and a structured work on operational effiencies. Higher costs related to overtime, recruitment and training during the first half year had a negative impact on the margin.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q3

Revenue by business line, R12

Revenue and income – Loomis Pay

Quarter 3 2023

Revenue amounted to SEK 15 million (6) in the third quarter, with a strong organic growth of 143 percent compared to the previous year. The sequential growth, compared to the previous quarter, was also strong across all three markets.

Transaction volumes in the quarter grew 94 percent compared to the previous year and 28 percent compared to the previous quarter. Transaction volumes amounted to SEK 1,367 million for the third quarter.

The operating income (EBITA) amounted to SEK –52 million (–36).

Nine months 2023

Revenue amounted to SEK 34 million (15) in the period, and the organic growth amounted to 126 percent compared to the same period in the previous year.

Transaction volumes in the period grew 86 percent compared to the previous year.

The near-term priority for Loomis Pay is to focus on growing the business in existing markets and further increase sales.

The operating income (EBITA) amounted to SEK –159 million (–137).

Revenue, SEK million

Transaction volumes, SEK million

Sustainability

Sustainability is an integrated part of Loomis' business. The sustainability agenda rests on three areas: environmental, social, and governance with the short-term focus foremost on reducing the carbon footprint, work-related injuries and being an inclusive company and responsible business partner.

Since 2017, Loomis has carried out materiality analyses to ensure that the sustainability inititative focus on areas where Loomis can have the most impact. During the third quarter, Loomis has initiated a double materiality analysis to analyse the sustainability matters that are material not only from an impact perspective, but also from a financial perspective. Stakeholder dialogues have been held with both internal and external stakeholders. The outcome of the double materiality analysis will help set Loomis long-term efforts within sustainability going forward.

Loomis is continuously taking actions – both large and small – that not only minimize the environmental impact, but which are also beneficial to the business.

One way to do so is to increase the use of solar panels, which help to reduce both emissions and costs. In the Dallas branch in the US, a project has been initiated to install solar panels. Installation is expected to be completed during the fourth quarter. Once installed, the solar panels are estimated to produce 169 MWh annually, covering approximately 20 percent of the total energy needs for the Dallas branch.

In preparation for the roll-out of the ordered electric armored vehicles, several branches in the US are also investing in electric charging infrastructure.

Solar power and renewable energy is expected to become even more important going forward. The need for renewable energy will increase as Loomis phases out fossil fuels by switching to more sustainable, electrified solutions and vehicles. In the third quarter approximately 30 percent of Loomis' energy consumption came from renewable energy sources.

Carbon emissions, tCO2e Scope1

Cash flow and investments

January – September 2023

In connection with the change to a new group reporting system in the second quarter, a few errors occurred in the preparation of the statement of cash flows. The statement of cash flows for the first half of the year and the second quarter have been recalculated and restated. See pages 14 and 15 for restated reports and key figures.

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 1,765 million (1,732), equivalent to 77 percent (87) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –1,413 million (–965), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 1,179 million (1,017). 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 0.7 (0.6).

Capital employed and financial position

Capital employed

The total capital employed as of September 30, 2023 amounted to SEK 21,754 million (19,948 as of December 31, 2022), which is equivalent to approximately 78 percent (85) of revenue. Return on capital employed amounted to 14.6 percent (14.1).

Shareholders' equity and financing

Shareholders' equity increased during the year by SEK 970 million, amounting to SEK 13,435 million as of September 30, 2023 (12,465 as of December 31, 2022). The increase is largely explained by translation differences of SEK 804 million, net profit for the period of SEK 1,181 million, payment of dividend of SEK 853 million and share repurchase of SEK 200 million. The return on shareholders' equity was 13.0 percent (13.1) and the equity ratio was 36.2 percent (40.6).

Net debt amounted to SEK 8,319 million as of September 30, 2023 (7,484 as of December 31, 2022) and net debt/EBITDA amounted to 1.49 (1.50 as of December 31, 2022). Financial debt and liquid funds was increased before end of the period in preparation for the payment of the consideration for the acquisition of Cima S.p.A.

As of September 30, 2023 the long-term loan facilities totaled SEK 11.7 billion and the short-term loan facilities totaled SEK 0.2 billion. Unutilized loan facilities amounted to SEK 6.4 billion, of which SEK 1.5 billion are used as back-up for outstanding commercial papers. Available liquid funds amounted to approximately SEK 3.2 billion (see Note 7).

Other events

Significant events during the period

On January 27 it was announced that Loomis AB has signed a three-year agreement for a syndicated, revolving credit facility for the amount of EUR 150 million. The facility replaces an existing revolving credit facility maturing in January 2024 and can be extended for an additional one plus one year. The facility can be used for financing of working capital, investments and other general corporate purposes.

On February 1 it was announced that Loomis signed an agreement with Xos, Inc for the delivery of 150 electric armored vehicles for the US market. The ordered vehicles will be delivered and entered into operations gradually during the year from the second half of 2023.

On March 24 it was announced that Kristian Ackeby has decided to resign from his role as Loomis' Chief Financial Officer and member of Group Management for a new assignment outside of Loomis. Kristian Ackeby continues in his current role until a successor is in place, however, will leave his role not later than during the third quarter 2023.

On March 30 it was announced that Loomis AB has signed an agreement for a syndicated, Term Loan facility of EUR 90 million. The facility has a tenor of up to two years. The facility can be used for financing of working capital, investments, and other general corporate purposes.

Loomis AB has through the repurchase program that was resolved and communicated on February 1, 2023 repurchased 586,000 shares. Loomis AB's holding of own shares thereby amounts to 4,208,782 shares, corresponding to 5.59% of the outstanding shares in the company.

On May 4 2023, Loomis AB held its Annual General Meeting. For information on the decisions made by the Annual General Meeting please refer to the Annual General Meeting section on Loomis' website, www.loomis.com.

On May 12 it was announced that Loomis AB had issued an additional SEK 1,000 million of sustainability-linked bonds and repurchased SEK 174 million of bonds originally maturing in September 2023. The bonds were issued with four-year maturity with maturity date on the 19th of May 2027. SEK 650 million of the new bonds have a floating interest rate of 3-month Stibor plus 1.95 percentage points and SEK 350 million have a yearly fixed rate coupon at 4.923%. The proceeds will be used for general corporate purposes and to refinance loans. The new bonds were listed on Nasdaq Stockholm Sustainable Bond List.

On July 18 it was announced that Loomis AB has entered into an agreement to acquire 100 percent of Cima S.p.A. from Milano Investments S.p.A. Cima is a technology-driven developer of

automated cash handling devices that recognize, count, process, secure cash notes and coins. The company has extensive experience within cash handling automation with a strong focus on R&D. The Italian-based Group has a global customer base and approximately 120 employees. The Group has a track record of strong financial performance and in 2022 had revenue of approximately EUR 66 million.

The initial purchase price amounts to EUR 132 million on a cash and debt free basis, with a potential earn-out of maximum EUR 17.5 million based on the EBITDA outcome for the financial year of 2024. The acquisition of Cima strengthens Loomis' offer of automated solutions in line with the communicated strategy to add new technology and competencies to complement the existing business. The business will be reported in the SafePoint (Automated Solutions) business line from the fourth quarter.

Other events during the period

On 9 January Erik Zingmark assumed the position as Head of Loomis Pay, succeeding Kristoffer Labuc who left Loomis to pursue his career outside the group. Erik brings extensive experience from the financial industry, most recently from the position as Head of Transaction Banking at Nordea.

In January Loomis signed an agreement to acquire AIB Express Logistics, a third-party shipping provider of valuables. The company, which is primarily based in the US, had a total revenue of more than SEK 100 million in 2021 and approximately 20 employees. Closing was completed in February 2023. The acquired business is a part of the Segment USA.

During the first quarter, Loomis signed an agreement to acquire the remaining shares of MoMo Holding, a Spanish-based fintech company with an e-money license. The completion of the acquisition was subject to customary regulatory approval and was closed during the third quarter. The acquisition will further complement Loomis' digital capabilities and offer for automated solutions.

As of June 1, Erik Åslund is appointed Chief Legal Officer and member of Group Management. Erik was previously Loomis AB's Head of Legal, reporting to the Chief Financial Officer. Sara Björkman, Chief Compliance Officer and member of Group Management, has chosen to resign and will during the third quarter leave Loomis for a position outside the Loomis Group. Loomis will in connection with her departure make a change to the organizational structure whereby the compliance function is placed under the Chief Legal Officer.

Loomis has received a claim relating to the acquisition of Loomis' Turkish subsidiary, that was completed in 2015. Loomis is of the opinion that it has acted in compliance with the share purchase agreement and is disputing the claim. Loomis is not reporting any provision in the balance sheet for this case as the criteria for provisions, under IAS 37, are not considered to be met.

Significant events after the end of the period

The acquisition of Cima S.p.A., which was announced on July 18, was closed on October 2.

On October 2 it was announced that Loomis AB has signed an agreement for a syndicated Term Loan facility of EUR 115 million. The facility has a tenor of up to two years and can be used for general corporate purposes of the Group, including acquisitions.

Financial reports

CONSOLIDATED INCOME STATEMENT

Note	2023	2022	2023	2022	2023	2022
			Nine	Nine
SEK m	Quarter 3	Quarter 3	months	months	R12	Full year
Revenue 3,4	7,408	6,739	21,292	18,584	28,023	25,315
Production expenses	–5,626	–4,869	–15,934	–13,630	–20,844	–18,540
Gross income	1,782	1,870	5,358	4,954	7,178	6,775
Selling and administration expenses	–1,005	–1,061	–3,184	–3,077	–4,259	–4,152
Other income and expenses	–3	–2	–23	–67	–23	–67
Items affecting comparability 6	–2	–	–27	–23	–27	–23
Operating income (EBIT)	772	808	2,124	1,786	2,869	2,532
Financial income	43	39	115	99	153	137
Financial expenses	–176	–86	–454	–216	–590	–351
Loss on monetary net assets/liabilities	–42	–53	–93	–118	–122	–146
Income before taxes	596	708	1,691	1,552	2,311	2,172
Income tax	–176	–205	–510	–458	–622	–570
Net income for the period1)	421	503	1,181	1,094	1,689	1,602
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses, net of tax	17	207	138	650	–323	189
Items that may be reclassified to the statement of income
Translation differences	–51	1,092	804	2,661	147	2,004
Revaluation of participation in associated companies	–	1	–63	11	–64	11
Hedging of net investments, net of tax	–	–79	–	–198	9	–189
Other comprehensive income and expenses for the period, net after tax	–34	1,221	879	3,125	–231	2,015
Total comprehensive income and expenses for
the period2)	386	1,724	2,060	4,219	1,458	3,617
Earnings per share, SEK
Earnings per share before dilution	5.92	6.92	16.58	14.91	23.63	21.93
Earnings per share after dilution	5.90	6.91	16.56	14.91	23.68	21.92
Number of shares
Number of outstanding shares (million)	71.1	72.3	71.1	72.3	71.1	71.7
Average number of outstanding shares before dilution (million)	71.1	72.7	71.2	73.4	71.4	73.0
Average number of outstanding shares after dilution (million)	71.3	72.8	71.3	73.4	71.3	73.1

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.

CONSOLIDATED BALANCE SHEET

Note	2023	2022	2022
SEK m	Sep 30	Sep 30	Dec 31
ASSETS
Fixed assets
Goodwill	8,716	8,336	8,075
Intangible assets	1,046	1,035	1,021
Buildings and land	1,164	1,153	1,139
Machinery and equipment	5,514	5,140	5,018
Right-of-use assets	4,344	3,888	3,763
Contract assets	290	236	254
Deferred tax assets	368	403	388
Pension plan assets	327	656	245
Interest-bearing financial fixed assets	347	656	557
Other long-term receivables	375	361	327
Total fixed assets	22,491	21,862	20,788
Current assets
Accounts receivable	3,681	3,439	3,311
Other current receivables	371	314	309
Current tax assets	203	290	303
Prepaid expenses and accrued income	1,197	1,034	851
Interest-bearing financial current assets	70	91	14
Liquid funds 7	9,055	5,668	6,203
Total current assets	14,578	10,835	10,992
TOTAL ASSETS	37,069	32,697	31,780
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 9
Share capital	376	376	376
Other capital contributed	4,594	4,594	4,594
Other reserves	1,836	2,969	2,122
Retained earnings including net income for the year	6,628	5,327	5,372
Non-controlling interest	–	–	–
Total shareholders' equity	13,435	13,265	12,465
Long-term liabilities
Interest-bearing non-current lease liabilities	3,560	3,121	2,987
Loans payable	7,140	4,323	4,270
Deferred tax liabilities	438	591	487
Provisions for claims reserves	579	580	472
Provisions for pensions and similar commitments	482	384	560
Other provisions	141	163	144
Other long-term liabilities	276	222	162
Total long-term liabilities	12,617	9,383	9,082
Current liabilities
Interest-bearing current lease liabilities	1,045	898	879
Loans payable	74	1,927	1,867
Accounts payable	947	742	859
Provisions for claims reserves	216	263	327
Current tax liabilities	115	214	212
Liabilities, cash processing operations	5,651	3,088	3,453
Accrued expenses and prepaid income	2,198	2,203	1,906
Other provisions	31	45	53
Other current liabilities	741	669	676
Total current liabilities	11,017	10,049	10,233
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	37,069	32,697	31,780

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2023	2022	2022
SEK m	Nine months	Nine months	Full year
Opening balance	12,465	10,063	10,063
Actuarial gains and losses after tax	138	650	189
Exchange rate differences	804	2,661	2,004
Revaluation of participation in associated companies	–63	11	11
Hedging of net investments, net of tax	–	–198	–189
Total other comprehensive income	879	3,125	2,015
Net income for the period	1,181	1,094	1,602
Total comprehensive income1)	2,060	4,219	3,617
Dividend paid to Parent Company's shareholders	–853	–628	–628
Share-related remuneration	–37	11	12
Acquisition of own shares	–200	–400	–600
Non-controlling interest	–	–	–
Closing balance	13,435	13,265	12,465

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

CONSOLIDATED STATEMENT OF CASH FLOWS

	2023	2022	2023	2022	2022
SEK m Note	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Operations
Income before taxes	596	708	1,691	1,552	2,172
Depreciation and amortization	741	619	2,065	1,763	2,361
Other items not affecting cash flow	177	98	463	239	352
Financial items received	43	28	115	54	84
Financial items paid	–147	–105	–435	–242	–379
Income tax paid	–207	–134	–508	–509	–592
Change in accounts receivable	–198	5	–370	–344	–319
Change in other operating capital employed and other items	8	30	127	36	–34
Cash flow from operations	1,014	1,250	3,148	2,550	3,645
Investing activities
Investments in fixed assets	–500	–356	–1,414	–1,016	–1,426
Disposals of fixed assets	–	17	1	51	54
Acquisitions of operations	–77	–	–300	–	–
Cash flow from investing activities	–576	–339	–1,713	–965	–1,372
Financing activities
Dividend paid	–	–	–853	–628	–628
Acquisition of own shares	–	–200	–200	–400	–600
Issuance of bonds	–	–	1,000	600	600
Redemption of bond	–1,570	–	–1,750	–	–
Issuance of commercial papers and other long-term borrowing	2,484	1,130	5,154	4,160	4,867
Redemption of commercial papers and other long-term borrowing	–1,105	–1,670	–3,329	–4,495	–5,388
Change in other interest-bearing net debt	435	–332	–528	–823	–1,004
Cash flow from financing activities	244	–1,071	–506	–1,586	–2,153
Cash flow for the period	682	–160	928	–1	121
Liquid fund at beginning of the period1)	2,598	2,281	2,264	2,009	2,009
Translation differences in liquid funds	–41	66	46	178	134
Liquid funds at end of period1)	3,239	2,187	3,239	2,187	2,264

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
-------------------------------------------------------------------------------------------	--

	2023	2022	2023	2022	2023	2022
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	R12	Full year
Operating income (EBITA)1)	789	822	2,205	1,919	2,933	2,648
Depreciation1)	428	348	1,179	1,017	1,522	1,359
Change in accounts receivable	–198	5	–370	–344	–346	–319
Change in other operating capital employed and other items1)	216	73	165	105	54	–7
Cash flow from operating activities before investments	1,235	1,249	3,178	2,696	4,163	3,681
Investments in fixed assets, net	–499	–339	–1,413	–965	–1,814	–1,365
Cash flow from operating activities	736	911	1,765	1,732	2,349	2,316
Financial items paid and received1)	–70	–47	–225	–106	–302	–183
Income tax paid	–207	–134	–508	–509	–590	–592
Free cash flow	459	730	1,032	1,116	1,457	1,541
Cash flow effect of items affecting comparability	–	–1	–9	–5	–18	–13
Acquisition of operations	–77	–	–300	–	–300	–
Acquisition–related costs and revenue, paid and received2)	–3	–3	–11	–81	–16	–86
Dividend paid	–	–	–853	–628	–853	–628
Acquisition of own shares	–	–200	–200	–400	–400	–600
Issuance of bonds	–	–	1,000	600	1,000	600
Redemption of bonds	–1,570	–	–1,750	–	–1,750	–
Issuance of commercial papers and other long–term borrowing	2,484	1,130	5,154	4,160	5,861	4,867
Redemption of commercial papers and other long–term borrowing	–1,105	–1,670	–3,329	–4,495	–4,222	–5,388
Change in other interest–bearing net debt1)	494	–147	193	–269	289	–173
Cash flow for the period	682	–160	929	–1	1,050	121

1) Excluding the IFRS 16 impact.

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

RESTATED CONSOLIDATED CASH FLOW STATEMENT

	2023		2023	2023		2023
SEK m	Reported Quarter 2	Adjust ments1)	Restated Quarter 2	Reported Six months	Adjust ments1)	Restated Six months
Operations
Income before taxes	552	–	552	1,095	–	1,095
Depreciation and amortization	709	–24	686	1,348	–24	1,324
Other items not affecting cash flow	157	–	157	286	–	286
Financial items received	45	–	45	72	–	72
Financial items paid	–176	–	–176	–288	–	–288
Income tax paid	–323	–	–323	–301	–	–301
Change in accounts receivable	–156	–	–156	–173	–	–173
Change in other operating capital employed and other items	–203	275	72	–155	275	120
Cash flow from operations	605	250	855	1,883	250	2,134
Investing activities
Investments in fixed assets	–552	–	–552	–915	–	–915
Disposals of fixed assets	45	–46	–1	47	–46	1
Acquisitions of operations	–	–	–	–223	–	–223
Cash flow from investing activities	–507	–46	–553	–1,092	–46	–1,137
Financing activities
Dividend paid	–853	–	–853	–853	–	–853
Acquisition of own shares	–	–	–	–200	–	–200
Issuance of bonds	1,000	–	1,000	1,000	–	1,000
Redemption of bond	–	–180	–180	–	–180	–180
Increase in commercial papers issued and other long-term borrowing	1,154	–	1,154	2,670	–	2,670
Redemption of commercial papers issued and other long-term borrowing	–1,467	–	–1,467	–2,224	–	–2,224
Change in other long-term borrowing	–173	–205	–378	–757	–205	–963
Cash flow from financing activities	–338	–385	–724	–364	–385	–750
Cash flow for the period	–241	–180	–422	428	–180	247
Liquid fund at beginning of the period	2,939	–	2,939	2,264	–	2,264
Translation differences in liquid funds	–100	180	81	–94	180	88
Liquid funds at end of period	2,598	–	2,598	2,598	–	2,598

1) Adjustments for errors in the preparation of the cash flow statement in connection with the go-live of a new reporting system.

RESTATED CONSOLIDATED CASH FLOW STATEMENT EXCLUDING THE EFFECT OF IFRS 16

	2023		2023	2023		2023
SEK m	Reported Quarter 2	Adjust ments1)	Restated Quarter 2	Reported Six months	Adjust ments1)	Restated Six months
Operating income (EBITA)	725	–	725	1,416	–	1,416
Depreciation	345	49	394	703	49	751
Change in accounts receivable	–156	–	–156	–173	–	–173
Change in other operating capital employed and other items	–134	36	–98	–87	36	–51
Cash flow from operating activities before investments	781	85	866	1,858	85	1,943
Investments in fixed assets, net	–508	–47	–555	–867	–47	–914
Cash flow from operating activities	273	38	310	992	38	1,029
Financial items paid and received	–100	–	–100	–155	–	–155
Income tax paid	–323	–	–323	–301	–	–301
Free cash flow	–151	38	–113	536	38	574
Cash flow effect from items affecting comparability	–3	–	–3	–10	–	–10
Acquisition of operations	–	–	–	–223	–	–223
Acquistion-related costs and revenue, paid and received	–3	–	–3	–6	–	–6
Dividend paid	–853	–	–853	–853	–	–853
Acquisition of own shares	–	–	–	–200	–	–200
Issuance of bonds	1,000	–	1,000	1,000	–	1,000
Redemption of bonds	–	–180	–180	–	–180	–180
Issuance of commercial papers and other long-term borrowings	1,154	–	1,154	2,670	–	2,670
Redemption of commercial papers and other long-term borrowings	–1,467	–	–1,467	–2,224	–	–2,224
Change in other interest-bearing net debt	82	–39	43	–262	–39	–301
Cash flow for the period	–241	–180	–422	428	–180	247

1) Adjustments for errors in the preparation of the cash flow statement in connection with the go-live of a new reporting system.

RESTATED KEY RATIOS

	2023		2023	2023		2023
SEK m	Reported Quarter 2	Adjust ments1)	Restated Quarter 2	Reported Six months	Adjust ments1)	Restated Six months
Net debt/EBITDA	1.55	0.01	1.56	1.55	0.01	1.56
Cash flow from operating activities as % of operating income (EBITA), %	36	5	41	68	2	70
Investments in relation to depreciation	0.8	0.1	0.9	0.7	–	0.7
Investments as a % of total revenue	7.2	0.6	7.8	6.3	0.3	6.6

1) Adjustments for errors in the preparation of the cash flow statement in connection with the go-live of a new reporting system.

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 2022 Annual Report.

New or changed standards and interpretations that entered into force on January 1, 2023 are not expected to have any material effect on the Group's financial statements.

Loomis has applied the IAS 29 Financial Reporting in Hyperinflationary Economies for the operations in Turkey and Argentina.

In connection with the change to a new group reporting system in the second quarter, a few errors occurred in the preparation of the statement of cash flows. The errors have been identified and corrected and the cash flow statements for the first half of the year and the second quarter have been recalculated. See pages 14 and 15 for restated reports and key figures.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 95 and 123 of the 2022 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 Risk management and key risks

Sound risk management is one of Loomis' most important success factors. Given Loomis' history and the nature of the service offering, the Company has extensive experience in managing risk and takes a structured and proactive approach throughout the organization, at both the local and central levels. Well-managed risk can create opportunities and add value to the business, while risk that is not efficiently managed can cause negative incidents and losses.

Loomis' risk management is an ongoing and iterative process. The risk environment changes over time and it is therefore necessary to continuously revisit, update and identify new risks. Risk management routines are integrated into the Group's business planning and performance monitoring. Significant processes are documented and any material risks associated with a specific process are identified and defined in a risk register. The annual risk assessment and the resulting risk register are coordinated and maintained at Group level.

Loomis is exposed to strategic, operational, legal and compliance, environment as well as financial risks. There are risks that pertain to Loomis itself and the industry as well as risks that are more general in nature. Risks that have been identified to be of key significance include payment market changes, data privacy, health and safety, attracting and retaining employees, internal fraud and corruption, information security, physical security, environment and climate, compliance, money laundering and financial risks.

For further information on risks, risk management and opportunities, see pages 74–78 of Loomis' Annual and Sustainability Report 2022.

Factors of uncertainty

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 2023 the actual financial outcome of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the Annual and Sustainability Report 2022 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 2023					Quarter 3 2022
Cash in transit (CIT)	1,318	1,438	–	–	2,756	1,146	1,329	–	–	2,475
Cash management services (CMS)	817	570	–	–	1,387	738	549	–	–	1,287
ATM	713	872	–	–	1,584	611	826	–	–	1,437
SafePoint (Automated Solutions)	260	807	–	–	1,067	224	683	–	–	908
International	299	138	–	–	437	299	118	–	–	417
FXGS	141	–	–	–	141	152	–	–	–	152
Loomis Pay	–	–	15	–	15	–	–	6	–	6
Revenue, other and internal	40	17	–	–38	20	74	36	–	–53	57
Total revenue	3,588	3,842	15	–38	7,408	3,244	3,542	6	–53	6,739
Timing of revenue recognition, external
At a point in time	722	117	1	–	840	706	127	3	–	836
Over time	2,846	3,708	14	–	6,568	2,508	3,393	3	–	5,904
Total external revenue	3,568	3,825	15	–	7,408	3,214	3,520	6	–	6,739

	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 2023					Nine months 2022
Cash in transit (CIT)	3,780	4,181	–	–	7,962	3,317	3,626	–	–	6,943
Cash management services (CMS)	2,284	1,646	–	–	3,930	2,060	1,502	–	–	3,562
ATM	2,018	2,548	–	–	4,566	1,666	2,282	–	–	3,948
SafePoint (Automated Solutions)	730	2,301	–	–	3,031	631	1,820	–	–	2,451
International	872	408	–	–	1,280	830	327	–	–	1,158
FXGS	426	–	–	–	426	355	–	–	–	355
Loomis Pay	–	–	34	–	34	–	–	15	–	15
Revenue, other and internal	124	53	–	–114	63	188	93	–	–129	152
Total revenue	10,234	11,137	34	–114	21,292	9,047	9,650	15	–129	18,584
Timing of revenue recognition, external
At a point in time	2,058	339	7	–	2,404	1,902	352	6	–	2,259
Over time	8,115	10,745	27	–	18,887	7,071	9,246	9	–	16,326
Total external revenue	10,173	11,085	34	–	21,292	8,972	9,598	15	–	18,584

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2023	2022	2023	2022	2022
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
USA	3,817	3,542	11,056	9,650	13,086
France	986	890	2,823	2,439	3,342
Switzerland	452	444	1,321	1,270	1,648
Spain	466	407	1,309	1,136	1,543
UK	292	301	844	874	1,145
Sweden	213	196	633	580	760
Other countries	1,181	960	3,305	2,634	3,791
Total revenue	7,408	6,739	21,292	18,584	25,315

External revenue is reported per significant geographical market.

NOTE 4 – SEGMENT OVERVIEW

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

REVENUE

			2022					2023
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	2,796	3,007	3,244	3,207	12,255	3,250	3,396	3,588	–	–
USA	2,862	3,246	3,542	3,561	13,211	3,598	3,697	3,842	–	–
Loomis Pay	3	5	6	6	21	7	12	15	–	–
Group-wide functions	–	–	–	–	–	–	–	–	–	–
Eliminations	–34	–42	–53	–44	–173	–43	–34	–38	–	–
Total revenue	5,627	6,217	6,739	6,731	25,315	6,812	7,072	7,408	–	–

OPERATING INCOME (EBITA)

			2022			2023
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	242	309	435	330	1,317	309	353	387	–	–
USA	371	429	488	534	1,822	500	515	547	–	–
Loomis Pay	–49	–52	–36	–41	–178	–54	–53	–52	–	–
Group-wide functions	–49	–66	–42	–69	–226	–38	–63	–68	–	–
Operating income (EBITA)	516	620	845	754	2,735	717	752	814	–	–

OPERATING INCOME (EBIT)

			2022					2023
SEK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3	Q4	Full year
Europe and Latin America	195	240	408	330	1,173	266	321	355	–	–
USA	366	423	482	530	1,800	495	507	537	–	–
Loomis Pay	–49	–52	–36	–41	–178	–54	–54	–52	–	–
Group-wide functions	–49	–71	–47	–73	–240	–40	–65	–66	–	–
Operating income (EBIT) before items affecting comparability	463	539	808	745	2,555	667	709	774	–	–
Items affecting comparability	–	–23	–	–	–23	–12	–13	–2	–	–
Operating income (EBIT)	463	516	808	745	2,532	656	696	772	–	–

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m		Nine months 2023
Revenue	10,234	11,043	34	–	–114	21,197
Revenue, acquisitions	–	94	–	–	–	94
Total revenue	10,234	11,137	34	–	–114	21,292
Production expenses	–7,792	–8,166	–90	–	114	–15,934
Gross income	2,442	2,971	–56	–	–	5,358
Selling and administrative expenses	–1,487	–1,425	–103	–170	–	–3,185
Other income and expenses	–14	–8	–	–1	–	–23
Items affecting comparability	–27	–	–	–	–	–27
Operating income (EBIT)	915	1,538	–159	–171	–	2,123
Net financial items	–	–	–	–339	–	–339
Loss on monetary net assets/liabilities	–	–	–	–93	–	–93
Income before taxes	915	1,538	–159	–603	–	1,691

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 BALANCE SHEET

	2023	2022	2022
SEK m	Sep 30	Sep 30	Dec 31
Europe and Latin America
Assets	13,601	12,305	15,809
Liabilities	9,828	5,946	6,513
USA
Assets	13,563	14,658	13,814
Liabilities	3,133	2,128	1,894
Other 1)
Assets	9,906	5,723	2,156
Liabilities	10,673	11,347	10,908
Shareholders' equity	13,435	13,265	12,465
Group total
Assets	37,069	32,686	31,780
Liabilities	23,634	19,421	19,315
Shareholders' equity	13,435	13,265	12,465

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

NOTE 5 – ACQUISITIONS

	Consolidated	as of Segment	Acquired share1) %	Annual revenue SEK m	Number of employees	Purchase price SEK m	Goodwill SEK m	Acquisition related intangible assets SEK m	Other acquired net assets SEK m
Opening balance, January 1, 2023							8,075	583
Acquisition of AIB Express Logistics4)	February	USA	100	1282)	20	3073)	1855)	97	28
Acquisition of MoMo4)		Europe					75
Total acquisitions January – September 2023							260	97	28
Amortization of acquisition-related intangible assets							–	–107
Exchange rate differences							381	50
Closing balance September 30, 2023							8,716	623

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

2) Annual revenue 2022.

3) The enterprise value, i.e. the purchase price payable on a debt free basis, on the acquisition date amounted to around SEK 307 million for AIB Express Logistics.

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

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

Acquisition of AIB Express Logistics, USA

Loomis AB has acquired the shares in AIB Express Logistics, USA, through the wholly owned subsidiary Loomis International US LLC. A preliminary balance sheet is presented in the table below.

Summarized balance sheet from the acquisition of assets and liabilities of AIB Express at the date of acquisition, February 1, 2023.

SEK m	Preliminary acquisition balance
Intangible assets	97
Tangible assets	–
Cash and cash equivalents	12
Financial assets and liabilities	–1
Other assets and liabilities	15
Net identifiable assets and liabilities	122
Purchase price paid	222
Deferred purchase price	85
Goodwill	185

The acquisition has, as from the time of acquisition up to September 30, 2023, contributed approximately SEK 94 million to total revenue and approximately SEK 22 million to net income. Total transaction costs for the acquisition amounted to approximately SEK 2 million and have been recognized on the line Other income and expenses.

In October 2023, Loomis AB entered into an agreement to acquire all shares in Cima S.p.A from its current owner. The operations will be reported within the segments Europe and Latin America as well as USA, and will be consolidated in the Loomis Group as of the completion of the transaction.

NOTE 6 – ITEMS AFFECTING COMPARABILITY

	2023	2022	2023	2022	2022
SEK m	Quarter 3	Quarter 3	Nine months	Nine months	Full year
Restructuring costs within the European segment	–2	–	–27	–23	–
Provision for remuneration cost in connection with change of CEO	–	–	–	–	–23
Total items affecting comparability	–2	–	–27	–23	–23

NOTE 7 – LIQUID FUNDS

	2023	2022	2022
SEK m	Sep 30	Sep 30	Dec 31
Liquid funds	9,055	5,668	6,203
Adjusted for inventory of cash at the cash processing operations	–3,508	–3,068	–2,956
Adjusted for prepayments from customers	–2,309	–413	–984
Liquid funds excluding funds for cash processing activities	3,239	2,187	2,264

NOTE 8 – TRANSACTIONS WITH RELATED PARTIES

Transactions between Loomis and related parties are described in Note 30 of the 2022 Annual Report. There have been no transactions with related parties during the period that have materially impacted the Company's earnings and financial position.

NOTE 9 – NUMBER OF SHARES AS OF SEPTEMBER 30, 2023

No. of shares			SEK m
75,279,829	75,279,829	5	376
75,279,829	75,279,829		376
–4,208,782	–4,208,782
71,071,047	71,071,047
			No. of votes Quota value

1) During the period 586.000 shares was added to the treasury shares.

NOTE 10 – CONTINGENT LIABILITIES, GROUP

2023	2022	2022
Sep 30	Sep 30	Dec 31
2,612	2,589	2,602

KEY RATIOS

	2023	2022	2023	2022	2023	2022
			Nine	Nine
Real growth. %	Quarter 3 6.9	Quarter 3 15.9	months 8.8	months 17.3	R12 9.0	Full year 15.9
Organic growth. %	6.3	15.5	8.3	15.4	8.6	14.4
Total growth. %	9.9	31.2	14.6	29.1	17.2	28.4
Gross margin. %	24.1	27.8	25.2	26.7	25.6	26.8
Selling and administration expenses in % of total revenue	–13.6	–15.7	–15.0	–16.6	–15.2	–16.4
Operating margin (EBITA). %	11.0	12.5	10.7	10.7	10.8	10.8
Tax rate. %	29.4	28.9	30.2	29.5	26.9	26.2
Net margin. %	5.7	7.5	5.5	5.9	6.0	6.3
Return on shareholders' equity. %1)	13.0	13.1	13.0	13.1	13.0	13.7
Return on capital employed. %1)	14.6	14.1	14.6	14.1	14.6	14.5
Equity ratio. %	36.2	40.6	36.2	40.6	36.2	39.2
Liquid funds excluding funds within cash processing operations (SEK m)	3,239	2,187	3,239	2,187	3,239	2,264
Net debt (SEK m)	8,319	7,064	8,319	7,064	8,319	7,484
Net debt/EBITDA	1.49	1.50	1.49	1.50	1.49	1.50
Cash flow from operating activities2) as % of operating income (EBITA)	90	108	77	87	77	85
Investments in relation to depreciation	0.7	0.6	0.7	0.6	0.7	0.6
Investments as a % of total revenue	6.7	5.0	6.6	5.2	6.5	5.4
Earnings per share before dilution. SEK	5.92	6.92	16.58	14.91	23.63	21.93
Shareholders' equity per share before dilution. SEK	189.04	182.41	189.04	182.41	189.04	172.98
Cash flow from operating activities per share before dilution. SEK	14.26	17.18	44.19	34.76	59.51	49.88
Dividend per share. SEK	–	–	12.00	8.50	12.00	8.50
Number of outstanding shares (millions)	71.1	72.3	71.1	72.3	71.1	71.7
Average number of outstanding shares before dilution (millions)	71.1	72.7	71.2	73.4	71.4	73.0

1) Return ratios are calculated on average capital employed, R12. Previous periods have been recalculated.

2) Excluding the IFRS 16 impact.

Parent Company

PARENT COMPANY SUMMARY STATEMENT OF INCOME

	2023	2022	2022
SEK m	Nine months	Nine months	Full year
Revenue	757	594	812
Operating income (EBIT)	353	249	339
Income after financial items	3,605	417	1,855
Net income for the period	3,557	423	1,868

The Parent Company's revenue consists mainly of revenue from subsidiaries in the form of management, trademark and IT fees. The higher net income in 2023 is mainly due to dividends from subsidiaries amounting to SEK 6,159 million, and also impairment of shares amounting SEK 2,712 million.

PARENT COMPANY SUMMARY BALANCE SHEET

2023	2022	2022
Sep 30	Sep 30	Dec 31
11,510	12,938	11,994
4,283	1,894	3,169
15,793	14,832	15,163
7,593	3,880	5,126
6	15	6
7,169	4,347	4,302
1,024	6,590	5,729
15,793	14,832	15,163

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 three quarters, shares have been bought back similar as in 2022. A dividend has been made to shareholders. The maturity of external loan has been restructured, resulting in a reduction of short-term liabilities.

CONTINGENT LIABILITIES, PARENT COMPANY

	2023	2022	2022
SEK m	Sep 30	Sep 30	Dec 31
Guarantees and other commitments	8,437	6,203	6,942

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 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 in the section Financial Reports in 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.

	2023	2022
SEK m	Quarter 3 Quarter 3			Growth Growth, %
Recognized revenue	7,408	6,739	669	9.9
Organic growth			427	6.3
Revenue, acquisitions			35	0.5
Real growth			463	6.9
Exchange rate effects			206	3.1

	2023	2022
	Nine	Nine
SEK m	months	months		Growth Growth, %
Recognized revenue	21,292	18,584	2,708	14.6
Organic growth			1,544	8.3
Revenue, acquisitions			94	0.5
Real growth			1,638	8.8
Exchange rate effects			1,069	5.8

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.

2023	2022	2023	2022	2022
Quarter 3	Quarter 3	Nine months	Nine months	Full year
772	808	2,214	1,786	2,532
2	–	27	23	23
774	808	2,150	1,810	2,555
3	2	23	67	67
38	35	110	104	113
814	845	2,283	1,981	2,735
814	845	2,283	1,981	2,735
7,408	6,739	21,292	18,584	25,315
11.0	12.5	10.7	10.7	10.8

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

	2023	2022	2022
SEK m	Sep 30	Sep 30	Dec 31
Short-term loans	74	1,927	1,867
Long-term loans	7,140	4,323	4,270
Total loans payable	7,214	6,250	6,137
Liquid funds excluding funds in cash processing operations	–3,239	–2,187	–2,264
Other interest-bearing assets	–417	–747	–571
Financial net debt	3,558	3,317	3,302
Lease liabilities	4,605	4,020	3,866
Pension net, assets (-) liabilities (+)	156	–272	315
Net debt	8,319	7,064	7,484

	2023	2022	2022
SEK m		Quarter 3 Quarter 3	Full year
Operating income (EBITA), R12	3,037	2,575	2,735
Adding back depreciation/amortization, R12	2,545	2,149	2,249
EBITDA, R12	5,583	4,724	4,984
Net debt/EBITDA (number of times)	1.49	1.50	1.50

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, %

	2023	2022	2022
SEK m	Sep 30	Sep 30	Dec 31
Shareholders' equity	13,435	13,265	12,465
Total assets	37,069	32,697	31,780
Equity ratio, %	36.2	40.6	39.2

Capital employed and Return on capital employed, %

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

Reconciliation of capital employed and return on capital employed, %

2023	2022	2022
Sep 30	Sep 30	Dec 31
8,641	8,336	8,075
623	689	678
423	346	343
1,164	1,153	1,139
5,514	5,140	5,018
4,344	3,888	3,763
1,109	999	970
3,681	3,439	3,311
1,771	1,638	1,463
5,817	3,481	3,940
–438	–591	–487
–579	–580	–472
–141	–163	–144
–276	–222	–162
–947	–742	–859
–5,651	–3,088	–3,453
–2,198	–2,203	–1,906
–1,102	–1,191	–1,269
21,754	20,329	19,948
20,758	18,209	18,896
3,037	2,575	2,735
14.6	14.1	14.5

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.

4) Return on capital employed is calculated on average capital employed, R12. Previous periods have been recalculated.

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) in relation to average shareholders' equity for the period.

2023	2022	2022
		Full year
1,689	1,453	1,602
13,000	11,107	11,682
13.0	13.1	13.7
		Quarter 3 Quarter 3

1) Return on equity is calculated on average equity, R12. Previous periods have been recalculated.

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, including 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 average balance of shareholders' equity.
Return on capital employed, %	Operating income (EBITA) (rolling 12 months) as a percentage of the average 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 2023

The company is not providing any forecast information for 2023.

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 26, 2023

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, 2023. 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 26, 2023

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 26, 2023 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) 161 2508 206 USA: +1 (0) 561 771 1427 Sweden: +46 (0)8 505 100 39 International: +39 02 304 64 867

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.

Upcoming reporting dates

Full-Year Report	January – December 2023	January 31, 2024
Interim Report	January – March 2024	May 6, 2024
Interim Report	January – June 2024	July 24, 2024
Interim Report	January – September 2024	October 29, 2024

For further information

Jenny Boström, Head of Sustainability and IR, +46 (0)79 006 45 92 , 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 26, 2023.

Operations

Loomis offers secure and effective comprehensive solutions for managing payments, including the distribution, handling, storage and recycling of cash and other valuables. Loomis' customers are mainly financial institutions and retailers. Loomis operates through an international network of around 400 branches in more than 20 countries. Loomis employed around 25,000 people at the end of 2022 and had revenue in 2022 of more than SEK 25 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.