Loomis — Interim / Quarterly Report 2023

Jan 31, 2024

A record year with solid growth and strong cash flow

Comments on full-year 2023 and quarter 4

• Revenue for the full-year 2023 was SEK 28,707 million (25,315). Real growth was 9.0 percent (15.9) of which organic growth was 7.8 percent (14.4). Net income full-year 2023 was SEK 1,495 million (1,602).
• Revenue for the fourth quarter was SEK 7,415 million (6,731). Real growth was 9.5 percent (12.1) of which organic growth was 6.3 percent (11.8).
• Operating income (EBITA) for the quarter was SEK 794 million (754). The operating margin (EBITA) was 10.7 percent (11.2).
• Items affecting comparability for the quarter amounted to SEK –101 million (0) mainly relating to impairment of goodwill and effects from the devaluation in Argentina in December.
• Operating income (EBIT) before items affecting comparability for the quarter was SEK 737 million (745) and operating margin (EBIT) before items affecting comparability was 9.9 percent (11.1).
• Income before taxes for the quarter was SEK 457 million (619) and net income was SEK 314 million (508).
• Earnings per share before dilution for the quarter were SEK 4.41 (7.05) and after dilution were 4.40 (7.04).
• Cash flow from operating activities amounted to SEK 1,326 million (584) in the quarter, equivalent to 167 percent (77) of operating income (EBITA).
• Cima S.p.A. included from beginning of October, with positive impact before acquisition accounting.
• The Board of Directors proposes a dividend, for 2023, of SEK 12.50 per share (12.00).
• The Board of Directors has resolved to repurchase shares by virtue of the authorization granted by the annual general meeting 2023.

	2023	2022		2023	2022
SEK m	Quarter 4	Quarter 4	Change (%)	Twelve months	Twelve months	Change (%)
Revenue	7,415	6,731	10.2	28,707	25 315	13.4
Of which:
Organic growth	422	627	6.3	1.966	2,847	7.8
Acquisitions and divestments	220	16	3.3	314	285	1.2
Exchange rate effects	42	762	0.6	1,111	2,460	4.4
Total growth	684	1,406		3,392	5,592
Operating income (EBITA)	794	754		3,077	2,735
Operating margin (EBITA), %	10.7	11.2		10.7	10.8
Operating income (EBIT) before items affecting comparability	737	745		2,888	2,555
Operating margin (EBIT) before items affecting comparability, %	9.9	11.1		10.1	10.1
Income before tax	457	619		2,148	2,172
Profit for the period	314	508		1,495	1,602
Earnings per share before dilution, SEK	4.41	7.05		21.00	21.93
Tax rate, %	31	18		30	26
Cash flow from operating activities	1,326	584		3,091	2,316
Cash flow from operating activities as % of operating income (EBITA)	167	77		100	85

KEY RATIOS

Explanation and reconciliation of alternative performance measures can be found on pages 22–23 of this report and under Definitions on page 24.

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.

Strong performance but still more to do

Loomis delivered a record revenue in the fourth quarter with an organic growth of 6.3 percent. Both the US and Europe and Latin America contributed to the strong growth, and we substantially increased our recurring revenues. I am proud that we achieved revenues of SEK 28.7 billion in the full year with an 7.8 percent organic growth in line with our annual average growth target for the strategic period.

The operating profit (EBITA) increased to SEK 794 million (754) for the quarter and SEK 3,077 million (2,735) for the full year. The US segment had a great performance in the quarter and successfully continued to implement operational efficiencies. The overall business in Europe and Latin America performed well, however, specific areas within the segment didn't deliver according to our expectations and we are taking actions. We achieved a strong operating cash flow of more than SEK 3 billion for the year, which in relation to our operating profit was 100 percent.

Strong performance in the US

Segment USA had an outstanding performance in the fourth quarter. Revenues reached SEK 3,840 million (3,561) and we achieved an organic growth of 6.5 percent with solid growth across most business lines. The team continued to execute on their structural plan to improve operational efficiencies and increase productivity. As a result, the operating result (EBITA) increased to 578 (534), corresponding to a margin of 15.0 percent (15.0).

More to do in Europe

Segment Europe and Latin America reached record revenues of SEK 3,591 million (3,207) with an organic growth of 4.4 percent in the quarter. The operating profit (EBITA) amounted to SEK 353 million (330), corresponding to a margin of 9.8 percent (10.3). The current macroeconomic climate has had a negative impact on the International business, which in combination with some operational challenges in our FX line of business, negatively affected the segment's profitability.

Continued progress in Loomis Pay

Loomis Pay had a solid performance in the quarter with an organic growth of 174 percent. The transaction volumes grew 92 percent in the fourth quarter compared to the previous year and reached SEK 1,245 million.

Great to have CIMA onboard

I am really pleased to have integrated CIMA into Loomis during the quarter. Even though integration-related expenses prevented the margin from being entirely accretive in the quarter, we have started to realize positive sales synergies. CIMA truly is a high-quality business and I look forward to scaling this line of business. The ability to meet our customers' changing needs while offering new and mutually beneficial services and products, with our core business as a foundation, is crucial and together we are clearly on the right path.

Sustainability that has an impact

Loomis plays an important role in ensuring efficient and sustainable payment flows in society. We are driven by our vision of a society where all have access to payment infrastructure and can choose their preferred payment method. Having equal access to the payments market is an increasingly essential issue globally. With the current geopolitical climate and increasing risks around cybersecurity, we are seeing more discussions around the world on the importance of access to all types of payments, including the ability to pay with cash. We have a fundamental role in supporting central banks to ensure that cash is available and payment flows

+6.3% Organic growth Q4

10.7% Operating margin (EBITA) Q4

are functioning and, through our business, ensuring inclusion in society.

Keeping our employees safe and minimizing the risk of injuries is one of our most important responsibilities. I am pleased to share that we have succeeded in further reducing the injury frequency rate during the year and will continue to strengthen our proactive measures for our employees' well-being. In terms of the climate impact from our own operations, we have successfully decreased our carbon emissions from fuel consumption and energy usage in absolute terms despite our strong organic growth.

Moving ahead

In a changing environment, we have shown that we are capable of developing our offerings, streamlining the organization with operational efficiencies, and continuing to grow the business. Our strong cash flow gives us the means to keep investing for continued value creation. While we still have work to do, we will take the necessary steps to meet our strategic objectives by the end of 2024.

l would like to extend a thank you to all of our customers, employees, suppliers and other partners for our collaboration during the year and look forward to the year ahead of us.

Stockholm, January 31, 2024

Aritz Larrea President and CEO

Revenue and income – Group

Quarter 4 2023

Revenue for the quarter amounted to a record high SEK 7,415 million (6,731). Real growth was 9.5 percent (12.1), of which organic growth was 6.3 percent (11.8). Acquisitions contributed to 3.3 percent of the total growth. Revenue increased across all segments and for most business lines compared to the previous year, except for International which remained flat and FXGS where revenues declined. Revenues from Safe-Point and ATM increased 21 percent and amounted to 38 percent (34) of the Group's total revenue.

The operating income (EBITA) amounted to SEK 794 million (754) and the operating margin was 10.7 percent (11.2). The exchange rate effect on operating income during the quarter was approximately SEK 6 million (93).

For segment information, see pages 4–7.

Items affecting comparability amounted to SEK –101 million and were mainly related to an impairment of goodwill in Denmark and the impact on operating income from the devaluation of the Argentine Peso (ARS) in December.

The operating income (EBIT) before items affecting comparability for the quarter amounted to SEK 737 million (745), which includes amortization of acquisition related intangible assets of SEK –44 million (–9) and acquisition-related costs of SEK –13 million (0).

Net financial expenses increased to SEK –179 million (–127) in the quarter, mainly due to higher interest rates. The net financial expenses included losses on monetary net assets in Turkey and Argentina that increased in the quarter. The monetary loss consolidated in SEK was positively impacted from the weaker ARS and amounted to SEK 0 million (–29) for the quarter.

Income before tax amounted to SEK 457 million (619). The tax expense for the quarter was SEK –143 million (–112).

Earnings per share before dilution and after dilution amounted to 4.41 (7.05) and 4.40 (7.04) respectively.

Full year 2023

Revenue for the year amounted to SEK 28,707 million (25,315). Real growth was 9.0 percent (15.9), of which organic growth was 7.8 percent (14.4). Acquisitions contributed to 1.2 percent of the total growth. Revenues increased across all segments and for all business lines.

Revenue from SafePoint and ATM increased to 36 percent (34) of the Group's total revenue, of which revenues from SafePoint were 15 percent (13) of the total revenue and the corresponding proportion for ATMs was 21 percent (21).

The operating income (EBITA) amounted to SEK 3,077 million (2,735) and the operating margin was 10.7 percent (10.8). The exchange rate effect on operating income during the period was approximately SEK 120 million (329).

For segment information, see pages 4–7.

Items affecting comparability amounted to SEK –128 million related to impairment of goodwill, restructuring in segment Europe and Latin America and the impact on operating income from the devaluation of the Argentine Peso in December.

The operating income (EBIT) before items affecting comparability for the period amounted to SEK 2,888 million (2,555), which includes amortization of acquisition related intangible assets of SEK –153 million (–113) and acquisitionrelated costs of SEK –36 million (–67).

Net financial expenses increased to SEK –611 million (–360), mainly due to higher interest rates and monetary losses originating from Turkey and Argentina. Losses on monetary net assets amounted to –93 million (–146). The weakening of the ARS impacted the consolidated loss in SEK.

Income before tax amounted to SEK 2,148 million (2,172). The tax expense was SEK –654 million (–570).

Earnings per share before dilution amounted to 21.00 (21.93) and after dilution to SEK 20.96 (21.92).

Revenue, SEK billion

Operating margin (EBITA), %

Operating margin (EBITA) rolling 12 months

Revenue by business line, Q4

Revenue by business line, R12

The segments

Revenue, operating income and number of full-time employees

EUROPE AND LATIN AMERICA

Full year
12,255
20.4
14.3
2.0
4.1
16.3
1,317
10.7
14,300

USA

	2023	2022	2023	2022
SEK m	Quarter 4	Quarter 4	Full year	Full year
Revenue	3,840	3,561	14,977	13,211
Sales growth, %	7.8	37.6	13.4	37.0
-of which organic growth, %	6.5	14.3	7.9	15.0
-of which acquisitions / divestments, %	1.0	0.6	1.0	0.9
-of which exchange rate effects, %	0.3	22.7	4.5	21.1
Real growth, %	7.5	14.9	8.8	15.9
Operating income (EBITA)	578	534	2,139	1,822
Operating margin, %	15.0	15.0	14.3	13.8
Number of full-time employees	10,300	10,600	10,300	10,500

LOOMIS PAY

	2023	2022	2023	2022
SEK m	Quarter 4	Quarter 4	Full year	Full year
Revenue	17	6	52	21
Transaction volume	1,245	650	4,353	2,322
Sales growth, %	177.7	32.3	145.7	92.4
-of which organic growth, %	174.5	26.4	140.3	86.2
-of which acquisitions / divestments, %	–	–	–	–
-of which exchange rate effects, %	3.2	5.9	5.4	6.1
Real growth, %	174.5	26.4	140.3	86.2
Operating income (EBITA)	–60	–41	–218	–178
Operating margin, %	n/a	n/a	n/a	n/a

Revenue and income – Europe and Latin America

Quarter 4 2023

Revenues for the fourth quarter increased to SEK 3,591 million (3,207). Real growth was 10.2 percent (9.7) and the organic growth was 4.4 percent (9.7). The acquisition of CIMA, which was closed in October 2023, contributed to 5.8 percent of the total growth.

Several business lines had a strong revenue growth in the fourth quarter. Revenues from SafePoint and ATM, including CIMA, increased by 40 percent to amount to 31 percent (24) of the segment's total revenue. SafePoint revenues, where CIMA is consolidated, increased to 12 percent (6) of the revenue. The corresponding proportion for ATMs was 19 percent (18).

The demand for storage of cash and valuables is affected negatively by the higher interest rate environment which had a negative impact on the International business. Revenues also declined in the FXGS business line partly due to high market prices for gold.

The operating income (EBITA) amounted to SEK 353 million (330), corresponding to a margin of 9.8 percent (10.3). The margin was negatively affected by currency headwinds, the macroeconomic climate as well as operational challenges in our FX line of business. In addition, the acquisitions in the quarter were not fully accretive in the fourth quarter due to integration-related costs.

Costs related to the announced restructuring plan amounted to SEK –2 million the quarter. In addition, goodwill related to Denmark was impaired by SEK –54 million in connection with the annual impairment test performed in the fourth quarter. The devaluation of the Argentine peso in December had an effect on operating income (EBIT) of approximately –45 million that has been included in items affecting comparability.

Full year 2023

Revenue for the period amounted to SEK 13,826 million (12,255). Real growth was 8.7 percent (16.3) and the organic growth was 7.1 percent (14.3). The acquisition of CIMA, which was closed in October 2023, contributed to 1.5 percent of the total growth for the year.

Most business lines had a strong revenue growth in the year. Revenue from Safe-Point and ATM amounted to 28 percent (25) of the segment's total revenue, of which revenue from SafePoint amounted to 8 percent (7) of the revenue. The corresponding proportion for ATMs was 20 percent (18).

The operating income (EBITA) amounted to SEK 1,403 million (1,317), corresponding to a margin of 10.1 percent (10.7). The margin was positively impacted by increased volumes, higher efficiencies and price adjustments but was offset by continued inflationary pressure. A lower demand for storage of bank notes driven by higher interest rates coupled with lower metal trading negatively impacted the profitability of the International and FX businesses compared to the previous year. Two non-recurring items of SEK 78 million within the International and FX business lines in the third quarter also had a negative impact.

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 29 million have been recorded in 2023. Goodwill related to Denmark was impaired by SEK –54 million in connection with the yearly impairment test. The devaluation of the Argentine peso in December had an effect on operating income of approximately –45 million that has been included in items affecting comparability.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q4

Revenue by business line, R12

Revenue and income – USA

Quarter 4 2023

Revenue amounted to SEK 3,840 million (3,561) and real growth was 7.5 percent (14.9). Organic growth amounted to 6.5 percent (14.3) with good volume growth. The acquisition of AIB Express Logistics, which was closed during February, contributed to 1.0 percent of the total growth.

Revenue grew within all business lines, and with high growth for SafePoint in particular. Revenues from SafePoint and ATM increased by 10 percent and amounted to 44 percent (43) of the segment's total revenue. SafePoint revenues accounted for 21 percent (20) of the segment's revenue, and ATMs accounted for 23 percent (23).

The operating income (EBITA) increased to SEK 578 million (534) thanks to a structured work on operational efficiencies. These initiatives include route optimization with the CIT business line and streamlining receiving processes in the cash vaults within CMS. An improved employee retention rate also had a positive effect on the operating margin, which reached 15.0 percent (15.0).

Full year 2023

Revenue amounted to SEK 14,977 million (13,211) and real growth was 8.8 percent (15.9). Organic growth amounted to 7.9 percent (15.0) with good volume growth. The acquisition of AIB Express Logistics, which was closed during February, contributed to 1.0 percent of the total growth.

The operations in USA have consistently delivered strong volume growth throughout the year. Revenues from all offerings grew with high growth for SafePoint in particular. 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 2,139 million (1,822) and the operating margin was 14.3 percent (13.8). The margin was positively affected by the increased volumes and a structured work on operational efficiencies. Higher costs related to overtime, recruitment and training had a negative impact on the margin in the first half of 2023, but improved during the last two quarters.

Revenue, SEK billion

Operating margin (EBITA), %

Revenue by business line, Q4

Revenue by business line, R12

Revenue and income – Loomis Pay

Quarter 4 2023

Revenue amounted to SEK 17 million (6) in the fourth quarter, with a strong organic growth of 174 percent compared to the previous year. Revenue grew in all three markets. The sequential growth, compared to the previous quarter, was also solid considering the seasonality pattern in this segment.

Transaction volumes in the quarter grew 92 percent compared to the previous year. Transaction volumes amounted to SEK 1,245 million for the fourth quarter.

The operating income (EBITA) amounted to SEK –60 million (–41).

Full year 2023

Revenue amounted to SEK 52 million (21) in the period, and the organic growth amounted to 140 percent compared to the same period in the previous year.

Transaction volumes in the 2023 grew 87 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 number of transacting customers more than tripled in 2023 compared to the previous year.

The operating income (EBITA) amounted to SEK –218 million (–178).

Revenue, SEK million

Transaction volumes, SEK million

Sustainability

Loomis plays an important role in ensuring efficient and sustainable payment flows in society.

Loomis has a vision of a society where all have access to payment infrastructure and can choose their preferred payment method. Equal access to cash and payments is an increasingly important issue globally and with the current geopolitical climate there are more discussions around the world on the importance of access to all types of payments, including the ability to pay with cash.

Loomis is part of the infrastructure that is critical for society and helps to promote social sustainability. This in turn requires Loomis to take long-term responsibility for not only for its business but also for the impact of its operations on society, people, and the environment.

Loomis continues to gradually raise the ambitions within all parts of sustainability. A few highlights from the quarter include:

A new supplier code of conduct

Working with responsible suppliers who share Loomis' values is key and therefore an updated Supplier Code of Conduct was launched during the quarter. The Code sets out what Loomis expects of all suppliers in terms of ethics and how they handle their own workforce, but to also cover their climate impact and supply chain responsibilities.

Reducing our climate impact

Even with a strong organic growth, Loomis successfully decreased its climate impact and carbon emissions from fuel consumption and energy usage in absolute terms. During the year, investments in both a lighter and electrified fleet, smarter route planning systems and technology have contributed to emission reductions. These initiatives have subsequently resulted in improved logistics while also reducing our fuel consumption, which is also beneficial from a cost perspective.

Carbon emissions, tCO2e Scope1

Promoting diversity and equality

During the fourth quarter, a program was launched to increase awareness among managers and employees about fairness and diversity. The program includes global training in diversity, which is mandatory for more than 300 senior managers and HR managers. The purpose of this initiative is to minimize the risk of potential discrimination and to ensure equal rights.

Cash flow and investments

January – December 2023

Cash flow from operating activities, excluding the IFRS 16 effects, amounted to SEK 3,091 million (2,316), equivalent to 100 percent (85) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –1,956 million (–1,365), which can be compared with depreciation (excluding the effect of IFRS 16) of SEK 1,600 million (1,359). 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 December 31, 2023 amounted to SEK 22,531 million (19,948 as of December 31, 2022), which is equivalent to approximately 78 percent (79) of revenue. Return on capital employed amounted to 14.5 percent (14.5).

Shareholders' equity and financing

Shareholders' equity increased during the year by SEK 214 million, amounting to SEK 12,678 million as of December 31, 2023 (12,465 as of December 31, 2022). The increase is largely explained by translation differences of SEK –61 million, net profit for the period of SEK 1,495 million, payment of dividend of SEK 853 million and share repurchase of SEK 200 million. The return on shareholders' equity was 11.6 percent (13.7) and the equity ratio was 35.0 percent (39.2).

Net debt amounted to SEK 9,853 million as of December 31, 2023 (7,484 as of December 31, 2022) and net debt/EBITDA amounted to 1.72 (1.50 as of December 31, 2022).

As of December 31, 2023 the long-term loan facilities totaled SEK 10.7 billion and the short-term loan facilities totaled SEK 0.7 billion. Unutilized loan facilities amounted to SEK 4.9 billion, of which SEK 0.8 billion are used as back-up for outstanding commercial papers. Available liquid funds amounted to SEK 2.5 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 resigned from his role as Loomis' Chief Financial Officer and member of Group Management for a new assignment outside of Loomis. Kristian Ackeby left Loomis at the end of the third quarter.

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. The acquisition was closed on October 2. The business has been consolidated since the fourth quarter and reported in segment Europe and Latin America within the Safe-Point (Automated Solutions) business line.

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.

On 1 August, it was announced that Johan Wilsby had been appointed as the Chief Financial Officer and a member of Group Management. Johan assumed his position on October 1, 2023.

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.

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 MMPocket 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 left her position at Loomis for a position outside the Loomis Group during the third quarter. In connection with her departure, a change to the organizational structure was made 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.

On November 27 Athina Pehrman joined Loomis as the new Chief Risk Officer and member of Group Management, succeeding Stellan Abrahamsson who left Loomis for a position outside of the Loomis Group.

Significant events after the end of the period

On January 30 it was announced that the Board of Directors has resolved to repurchase shares by virtue of the authorization granted by the annual general meeting 2023. The repurchase may commence on February 1, 2024, end not later than on April 5, 2024, and comprise an amount up to a maximum of SEK 200 million.

Financial reports

CONSOLIDATED INCOME STATEMENT

	Note	2023	2022	2023	2022
SEK m		Quarter 4	Quarter 4	Full year	Full year
Revenue	3,4	7,415	6,731	28,707	25,315
Production expenses 1)		–5,607	–4,910	–21,414	–18,540
Gross income		1,808	1,821	7,293	6,775
Selling and administration expenses 1)		–1,057	–1,075	–4,369	–4,152
Other income and expenses		–13	–	–36	–67
Items affecting comparability	6	–101	–	–128	–23
Operating income (EBIT)		636	745	2,759	2,532
Financial income		31	38	146	137
Financial expenses		–210	–136	–664	–351
Loss on monetary net assets/liabilities		–	–29	–93	–146
Income before taxes		457	619	2,148	2,172
Income tax		–143	–112	–654	–570
Net income for the period2)		314	508	1,495	1,602
Other comprehensive income
Items that will not be reclassified to the statement of income
Actuarial gains and losses, net of tax		–205	–461	–68	189
Items that may be reclassified to the statement of income
Translation differences		–865	–657	–61	2,004
Revaluation of participation in associated companies		–	–1	–63	11
Hedging of net investments, net of tax		–	9	–	–189
Other comprehensive income and expenses for the period, net after tax		–1,070	–1,110	–191	2,015
Total comprehensive income and expenses for the period3)		–757	–602	1,303	3,617
Earnings per share, SEK
Earnings per share before dilution		4.41	7.05	21.00	21.93
Earnings per share after dilution		4.40	7.04	20.96	21.92
Number of shares
Number of outstanding shares (million)		71.1	71.7	71.1	71.7
Average number of outstanding shares before dilution (million)		71.1	72.1	71.2	73.0
Average number of outstanding shares after dilution (million)		71.3	72.1	71.3	73.1

1) A restatement between production expenses and selling and administration expenses related to quarter 3, 2023 is presented in Note 4 on page 17.

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

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

CONSOLIDATED BALANCE SHEET

Note	2023	2022
SEK m	Dec 31	Dec 31
ASSETS
Fixed assets
Goodwill	9,033	8,075
Intangible assets	1,655	1,021
Buildings and land	1,089	1,139
Machinery and equipment	5,180	5,018
Right-of-use assets	4,634	3,763
Contract assets	297	254
Deferred tax assets	360	388
Pension plan assets	258	245
Interest-bearing financial fixed assets	231	557
Other long-term receivables	381	327
Total fixed assets	23,119	20,788
Current assets
Inventory	509	94
Accounts receivable	3,378	3,311
Other current receivables	322	215
Current tax assets	184	303
Prepaid expenses and accrued income	960	851
Interest-bearing financial current assets	98	14
Liquid funds 7	7,611	6,203
Total current assets	13,062	10,992
TOTAL ASSETS	36,180	31,780
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 9
Share capital	376	376
Other capital contributed	4,594	4,594
Other reserves	971	2,122
Retained earnings including net income for the year	6,737	5,372
Non-controlling interest	–	–
Total shareholders' equity	12,678	12,465
Long-term liabilities
Interest-bearing non-current lease liabilities	3,803	2,987
Loans payable	7,017	4,270
Deferred tax liabilities	515	487
Provisions for claims reserves	596	472
Provisions for pensions and similar commitments	629	560
Other provisions	128	144
Other long-term liabilities	221	162
Total long-term liabilities	12,910	9,082
Current liabilities
Interest-bearing current lease liabilities	1,051	879
Loans payable	431	1,867
Accounts payable	860	859
Provisions for claims reserves	304	327
Current tax liabilities	185	212
Liabilities, cash processing operations	5,016	3,453
Accrued expenses and prepaid income	1,952	1,906
Other provisions	39	53
Other current liabilities	754	676
Total current liabilities	10,591	10,233
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	36,180	31,780

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

	2023	2022
SEK m	Full year	Full year
Opening balance	12,465	10,063
Actuarial gains and losses after tax	–68	189
Exchange rate differences	–61	2,004
Revaluation of participation in associated companies	–63	11
Hedging of net investments, net of tax	–	–189
Total other comprehensive income	–191	2,015
Net income for the period	1,495	1,602
Total comprehensive income1)	1,303	3,617
Dividend paid to Parent Company's shareholders	–853	–628
Share-related remuneration	–37	12
Acquisition of own shares	–200	–600
Non-controlling interest	–	–
Closing balance	12,678	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
SEK m Note	Quarter 4	Quarter 4	Full year	Full year
Operations
Income before taxes	457	619	2,148	2,172
Depreciation and amortization	756	599	2,822	2,361
Other items not affecting cash flow	287	113	749	352
Financial items received	21	30	136	84
Financial items paid	–191	–137	–626	–379
Income tax paid	–114	–83	–622	–592
Change in accounts receivable	387	25	17	–319
Change in other operating capital employed and other items	327	–71	454	–34
Cash flow from operations	1,929	1,095	5,077	3,645
Investing activities
Investments in fixed assets	–543	–410	–1,957	–1,426
Disposals of fixed assets	1	3	1	54
Acquisitions of operations	–1,667	–	–1,967	–
Cash flow from investing activities	–2,209	–407	–3,922	–1,372
Financing activities
Dividend paid	–	–	–853	–628
Acquisition of own shares	–	–200	–200	–600
Issuance of bonds	–	0	1,000	600
Redemption of bond	–	–	–1,750	–
Issuance of commercial papers and other long-term borrowing	1,734	707	6,888	4,867
Redemption of commercial papers and other long-term borrowing	–1,571	–893	–4,900	–5,388
Change in other interest-bearing net debt	–515	–181	–1,043	–1,004
Cash flow from financing activities	–352	–567	–858	–2,153
Cash flow for the period	–632	121	297	121
Liquid fund at beginning of the period1)	3,239	2,187	2,264	2,009
Translation differences in liquid funds	–115	–44	–69	134
Liquid funds at end of period1)	2,492	2,264	2,492	2,264

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

	2023	2022	2023	2022
SEK m	Quarter 4	Quarter 4	Full year	Full year
Operating income (EBITA)1)	767	729	2,972	2,648
Depreciation1)	420	343	1,600	1,359
Change in accounts receivable	387	25	17	–319
Change in other operating capital employed and other items1)	293	–111	458	–7
Cash flow from operating activities before investments	1,868	985	5,047	3,681
Investments in fixed assets, net	–542	–401	–1,956	–1,365
Cash flow from operating activities	1,326	584	3,091	2,316
Financial items paid and received1)	–131	–77	–356	–183
Income tax paid	–114	–83	–622	–592
Free cash flow	1,080	425	2,113	1,541
Cash flow effect of items affecting comparability	–	–8	–9	–13
Acquisition of operations	–1,667	–	–1,967	–
Acquisition–related costs and revenue, paid and received2)	–7	–6	–18	–86
Dividend paid	–	–	–853	–628
Acquisition of own shares	–	–200	–200	–600
Issuance of bonds	–	–	1,000	600
Redemption of bonds	–	–	–1,750	–
Issuance of commercial papers and other long–term borrowing	1,734	707	6,888	4,867
Redemption of commercial papers and other long–term borrowing	–1,571	–893	–4,900	–5,388
Change in other interest–bearing net debt1)	–201	96	–8	–173
Cash flow for the period	–632	121	297	121

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

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 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.

After the change to a new group reporting system in the second quarter, some indirect costs in the US were incorrectly classified as direct in the third quarter. The classification has been corrected and production costs, selling and administrative costs and the resulting gross profit have been recalculated. See page 17 recalculated 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 cash usage trends, 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 4 2023					Quarter 4 2022
Cash in transit (CIT)	1,267	1,436	–	–	2,703	1,170	1,360	–	–	2,530
Cash management services (CMS)	788	555	–	–	1,343	754	528	–	–	1,283
ATM	682	864	–	–	1,546	590	825	–	–	1,415
SafePoint (Automated Solutions)	438	820	–	–	1,258	207	701	–	–	908
International	270	145	–	–	415	269	112	–	–	381
FXGS	113	–	–	–	113	160	–	–	–	160
Loomis Pay	–	–	17	–	17	–	–	6	–	6
Revenue, other and internal	34	19	–	–33	20	57	35	–	–44	48
Total revenue	3,591	3,840	17	–33	7,415	3,207	3,561	6	–44	6,731
Timing of revenue recognition, external
At a point in time	1,245	115	1	–	1,361	676	121	2	–	799
Over time	2,333	3,707	15	–	6,055	2,509	3,419	4	–	5,931
Total external revenue	3,578	3,822	16	–	7,415	3,185	3,540	6	–	6,731

	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			Full year 2023					Full year 2022
Cash in transit (CIT)	5,047	5,617	–	–	10,664	4,487	4,986	–	–	9,473
Cash management services (CMS)	3,072	2,201	–	–	5,273	2,815	2,030	–	–	4,485
ATM	2,700	3,412	–	–	6,112	2,255	3,107	–	–	5,363
SafePoint (Automated Solutions)	1,168	3,121	–	–	4,289	838	2,521	–	–	3,359
International	1,142	554	–	–	1,695	1,099	439	–	–	1,539
FXGS	539	–	–	–	539	515	–	–	–	515
Loomis Pay	–	–	52	–	52	–	–	21	–	21
Revenue, other and internal	158	72	–	–147	83	245	128	–	–173	200
Total revenue	13,826	14,977	52	–147	28,707	12,255	13,211	21	–173	25,315
Timing of revenue recognition, external
At a point in time	3,303	453	10	–	3,766	2,578	473	8	–	3,059
Over time	10,448	14,452	41	–	24,941	9,579	12,664	13	–	22,256
Total external revenue	13,750	14,905	52	–	28,707	12,156	13,137	21	–	25,315

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

	2023	2022	2023	2022
SEK m	Quarter 4	Quarter 4	Full year	Full year
USA	3,821	3,561	14,877	13,211
France	925	909	3,749	3,348
Switzerland	455	445	1,775	1,715
Spain	448	417	1,757	1,553
UK	283	291	1,127	1,166
Sweden	204	188	838	768
Other countries	1,279	919	4,584	3,553
Total revenue	7,415	6,731	28,707	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	3,591	13,826
USA	2,862	3,246	3,542	3,561	13,211	3,598	3,697	3,842	3,840	14,977
Loomis Pay	3	5	6	6	21	7	12	15	17	52
Group-wide functions	–	–	–	–	–	–	–	–	–	–
Eliminations	–34	–42	–53	–44	–173	–43	–34	–38	–33	–147
Total revenue	5,627	6,217	6,739	6,731	25,315	6,812	7,072	7,408	7,415	28,707

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	353	1,403
USA	371	429	488	534	1,822	500	515	547	578	2,139
Loomis Pay	–49	–52	–36	–41	–178	–54	–53	–52	–60	–218
Group-wide functions	–49	–66	–42	–69	–226	–38	–63	–68	–77	–246
Operating income (EBITA)	516	620	845	754	2,735	717	752	814	794	3,077

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	312	1,254
USA	366	423	482	530	1,800	495	507	537	569	2,107
Loomis Pay	–49	–52	–36	–41	–178	–54	–54	–52	–60	–218
Group-wide functions	–49	–71	–47	–73	–240	–40	–65	–66	–84	–255
Operating income (EBIT) before items affecting comparability	463	539	808	745	2,555	667	709	774	737	2,888
Items affecting comparability	–	–23	–	–	–23	–12	–13	–2	–101	–128
Operating income (EBIT)	463	516	808	745	2,532	656	696	772	636	2,759

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Full year 2023
Revenue	13,640	14,848	52	–	–147	28,392
Revenue, acquisitions	185	129	–	–	–	314
Total revenue	13,826	14,977	52	–	–147	28,707
Production expenses	–10,607	–10,829	–126	–	147	–21,414
Gross income	3,219	4,148	–75	–	–	7,293
Selling and administrative expenses	–1,949	–2,029	–144	–247	–	–4,369
Other income and expenses	–16	–11	–	–9	–	–36
Items affecting comparability	–128	–	–	–	–	–128
Operating income (EBIT)	1,125	2,107	–218	–255	–	2,759
Net financial items	–	–	–	–518	–	–518
Loss on monetary net assets/liabilities	–	–	–	–93	–	–93
Income before taxes	1,125	2,107	–218	–866	–	2,148

SEGMENT OVERVIEW STATEMENT OF INCOME

	Europe and Latin America	USA	Loomis Pay	Group-wide functions	Eliminations	Total
SEK m				Full year 2022
Revenue	12,052	13,129	21	–	–173	25.030
Revenue, acquisitions	203	82	–	–	–	285
Total revenue	12,255	13,211	21	–	–173	25,315
Production expenses	–9,052	–9,582	–69	–10	173	–18,540
Gross income	3,203	3,630	–48	–10	–	6,775
Selling and administrative expenses	–1,969	–1,825	–131	–227	–	–4,152
Other income and expenses	–60	–4	–	–3	–	–67
Items affecting comparability	–	–	–	–23	–	–23
Operating income (EBIT)	1,173	1,800	–178	–263	–	2,532
Net financial items	–	–	–	–214	–	–214
Loss on monetary net assets/liabilities	–	–	–	–146	–	–146
Income before taxes	1,173	1,800	–178	–623		2,172

SEGMENT OVERVIEW STATEMENT OF INCOME – RESTATEMENT

	USA			Loomis Group
	Reported Nine months	Adjust ments1)	Restated Nine months	Reported Nine months	Adjust ments1)	Restated Nine months	Reported Quarter 3	Adjust ments1)	Restated Quarter 3
SEK m		2023					2023
Total revenue	11,137		11,137	21,292		21,292	7,408		7,408
Production expenses	–8,166	127	–8,039	–15,934	127	–15,807	–5,626	127	–5,499
Gross income	2,971	127	3,098	5,485	127	5,612	1,782	127	1,909
Selling and administrative expenses	–1,425	–127	–1,552	–3,184	–127	–3,311	–1,005	–127	–1,132
Other income and expenses	–8		–8	–23		–23	–3		–3
Items affecting comparability	0		0	–27		–27	–2		–2
Operating income (EBIT)	1,538		1,538	2,124		2,124	772		772
Gross margin, %	26.7		27.8	25.8		26.4	24.1		25.8
Selling and admin, %	–12.8		–13.9	–15.0		–15.6	–13.6		–15.3

1) After the change to a new group reporting system in the second quarter some indirect expenses in USA were incorrectly classified as direct in the third quarter. The classification has been corrected and production expenses, selling and administration expenses and the resulting gross profit has been restated.

SEGMENT OVERVIEW BALANCE SHEET

	2023	2022
SEK m	Dec 31	Dec 31
Europe and Latin America
Assets	19,594	15,809
Liabilities	7,796	6,513
USA
Assets	12,550	13,814
Liabilities	2,494	1,894
Other 1)
Assets	4,036	2,156
Liabilities	13,212	10,908
Shareholders' equity	12,678	12,465
Group total
Assets	36,180	31,780
Liabilities	23,502	19,315
Shareholders' equity	12,678	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 Logistics3)	February	USA	100	1282)	20	307	1854)	97	28
Acquisition of Cima3)	October	Europe	100	7622)	121	1,989	876	615	497
Acquisition of MMPocket Holding3)	October	Europe	100		60	104	414)	–	63
Total acquisitions January – December 2023							1,102	713	585
Amortization of acquisition-related intangible assets							–54	–164
Exchange rate differences							–90	143
Closing balance December 31, 2023							9,033	1,274

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

2) Annual revenue 2022.

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

4) 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.

The acquisition has, as from the time of acquisition up to December 31, 2023, contributed approximately SEK 134 million to total revenue and approximately SEK 33 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.

Acquisition of Cima, Italy

In October 2023, Loomis AB acquired all shares in Cima from its current owner. The operations will be reported within the segments Europe and Latin America. A preliminary balance sheet per the acquisition date is included in the table below.

The acquisition has, as from the time of acquisition up to December 31, 2023, contributed approximately SEK 167 million to total revenue and approximately SEK 13 million to net income. Total transaction costs for the acquisition amounted to approximately SEK 6 million and have been recognized on the line Other income and expenses. If acquired at January 1, the acquisition would have contributed with approximately SEK 748 million revenue and SEK 86 million to net income. This is including acquisition related costs and net of internal sale to Group companies.

Acquisition of MMPocket Holding, Spain

Loomis AB has acquired the shares in MMPocket Holding, Spain, through the wholly owned subsidiary Loomis Spain SA. A preliminary balance sheet per the acquitision date is included in the table below.

The acquisition has, as from the time of acquisition up to December 31, 2023, contributed approximately SEK 1 million to total revenue and approximately SEK –2 million to net income. Total transaction costs for the acquisition amounted to approximately SEK 0.2 million and have been recognized on the line Other income and expenses.

Summarized balance sheet from the acquisition of assets and liabilities of the acquired entites at the date of acquisition.

	AIB Express Logistics	CIMA SpA	MMPocket Holding
SEK m	Preliminary acquisition balance	Preliminary acquisition balance	Preliminary acquisition balance
Intangible assets	97	657	–
Tangible assets	–	5	41
Cash and cash equivalents	12	149	–
Financial assets and liabilities	–1	4	–
Other assets and liabilities	15	298	22
Net identifiable assets and liabilities	122	1,112	63
Purchase price paid	222	1,801	104
Deferred purchase price	85	188	–
Goodwill	185	877	41

NOTE 6 – ITEMS AFFECTING COMPARABILITY

	2023	2022	2023	2022
SEK m	Quarter 4	Quarter 4	Full year	Full year
Devaluation effect attributable to Argentina	–45	–	–45	–
Impairment of goodwill within the European segment	–54	–	–54	–
Restructuring costs within the European segment	–2	–	–29	–
Provision for remuneration cost in connection with change of CEO	–	–	–	–23
Total items affecting comparability	–101	–	–128	–23

NOTE 7 – LIQUID FUNDS

	2023	2022
SEK m	Dec 31	Dec 31
Liquid funds	7,611	6,203
Adjusted for inventory of cash at the cash processing operations	–3,861	–2,956
Adjusted for prepayments from customers	–1,259	–984
Liquid funds excluding funds for cash processing activities	2,492	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 DECEMBER 31, 2023

	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)	–4,208,782	–4,208,782
Total no. of outstanding shares	71,071,047	71,071,047

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

NOTE 10 – CONTINGENT LIABILITIES, GROUP

	2023	2022
SEK m	Dec 31	Dec 31
Guarantees and other commitments	2,574	2,602

KEY RATIOS

	2023	2022	2023	2022
	Quarter 4	Quarter 4	Full year	Full year
Real growth, %	9.5	12.1	9.0	15.9
Organic growth, %	6.3	11.8	7.8	14.4
Total growth, %	10.2	26.4	13.4	28.4
Gross margin, %	24.4	27.0	25.4	26.8
Selling and administration expenses in % of total revenue	–14.3	–16.0	–15.2	–16.4
Operating margin (EBITA), %	10.7	11.2	10.7	10.8
Tax rate, %	31.3	18.0	30.4	26.2
Net margin, %	4.2	7.5	5.2	6.3
Return on shareholders' equity, %1)	11.6	13.7	11.6	13.7
Return on capital employed, %1)	14.5	14.5	14.5	14.5
Equity ratio, %	35.0	39.2	35.0	39.2
Liquid funds excluding funds within cash processing operations (SEK m)	2,492	2,264	2,492	2,264
Net debt (SEK m)	9,853	7,484	9,853	7,484
Net debt/EBITDA	1.72	1.50	1.72	1.50
Cash flow from operating activities2) as % of operating income (EBITA)	167	77	100	85
Investments in relation to depreciation	0.8	0.7	0.7	0.6
Investments as a % of total revenue	7.3	6.1	6.8	5.4
Earnings per share before dilution, SEK	4.41	7.05	21.00	21.93
Shareholders' equity per share before dilution, SEK	178.39	172.98	177.70	172.98
Cash flow from operating activities per share before dilution, SEK	27.15	15.20	71.21	49.88
Dividend per share, SEK	–	–	12.00	8.50
Number of outstanding shares (millions)	71.1	71.7	71.1	71.7
Average number of outstanding shares before dilution (millions)	71.1	72.1	71.2	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
SEK m	Full year	Full year
Revenue	1,062	812
Operating income (EBIT)	464	339
Income after financial items	2,892	1,855
Net income for the period	2,838	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 6,466 million, and also impairment of shares amounting SEK 3,774 million.

PARENT COMPANY SUMMARY BALANCE SHEET

2023	2022
Dec 31	Dec 31
12,900	11,994
2,485	3,169
15,385	15,163
6,878	5,126
2	6
6,854	4,302
1,651	5,729
15,385	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 year, 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. During the last quarter, a subsidiary was acquired in Italy.

CONTINGENT LIABILITIES, PARENT COMPANY

	2023	2022
SEK m	Dec 31	Dec 31
Guarantees and other commitments	8,058	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 4 Quarter 4			Growth Growth, %
Recognized revenue	7,415	6,731	684	10.2
Organic growth			422	6.3
Revenue, acquisitions			220	3.3
Real growth			642	9.5
Exchange rate effects			42	0.6

2023	2022
Full year	Full year		Growth Growth, %
28,707	25,315	3,392	13.4
		1,966	7.8
		314	1.2
		2,281	9.0
		1,111	4.4

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
Quarter 4	Quarter 4	Full year	Full year
636	745	2,759	2,532
101	–	128	23
737	745	2,888	2,555
13	0	36	67
44	9	153	113
794	754	3,077	2,735
794	754	3,077	2,735
7,415	6,731	28,707	25,315
10.7	11.2	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
SEK m	Dec 31	Dec 31
Short-term loans	431	1,867
Long-term loans	7,017	4,270
Total loans payable	7,448	6,137
Liquid funds excluding funds in cash processing operations	–2,492	–2,264
Other interest-bearing assets	–329	–571
Financial net debt	4,627	3,302
Lease liabilities	4,855	3,866
Pension net, assets (–) liabilities (+)	371	315
Net debt	9,853	7,484

	2023	2022
SEK m	Full year	Full year
Operating income (EBITA), R12	3,037	2,735
Adding back depreciation/amortization, R12	2,668	2,249
EBITDA, R12	5,745	4,984
Net debt/EBITDA (number of times)	1.72	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
SEK m	Dec 31	Dec 31
Shareholders' equity	12,678	12,465
Total assets	36,180	31,780
Equity ratio, %	35.0	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
SEK m	Dec 31	Dec 31
Fixed assets
Goodwill	9,033	8,075
Acquisition-related intangible assets	874	678
Other intangible assets	781	343
Buildings and land	1,089	1,139
Machinery and equipment	5,180	5,018
Right-of-use assets	4,634	3,763
Other operating fixed assets1)	1,038	970
Current assets
Inventory	509	94
Accounts receivable	3,378	3,311
Other operating current assets2)	1,466	1,369
Funds in cash processing operations	5,119	3,940
Long-term liabilities
Deferred tax liability	–515	–487
Provisions for claims reserves	–596	–472
Other provisions	–128	–144
Other long-term liabilities	–221	–162
Current liabilities
Accounts payable	–860	–859
Liabilities in cash processing operations	–5,016	–3,453
Accrued expenses and prepaid income	–1,952	–1,906
Other operating current liabilities3)	–1,282	–1,269
Capital employed	22,531	19,948
Capital employed (average)	21,198	18,896
Operating income (EBITA), R12	3,077	2,735
Return on capital employed, %4)	14.5	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
SEK m	Full year	Full year
Net income for the period, R12	1,495	1,602
Shareholders' equity (average)	12,882	11,682
Return on equity, %1)	11.6	13.7

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.

Stockholm, January 31, 2024

Aritz Larrea President and CEO

Review Report

Introduction

We have reviewed the interim report for Loomis AB (publ) for the period January 1 – December 31, 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, January 31, 2024

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 January 31, 2024 at 10:00 a.m. (CET).

To follow the conference call via telephone and participate in Q&A session please call (local call); United Kingdom: +44 (0) 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

Interim Report	January – March 2024	May 6, 2024
Interim Report	January – June 2024	July 24, 2024
Interim Report	January – September 2024	October 29, 2024

Loomis' Annual and Sustainability Report 2023 will be available on www.loomis.com in April 2024. Loomis' Annual general meeting will be held on May 6, 2024 in Stockholm.

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 7.30 a.m. (CET) on January 31, 2024.

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 2023 and had revenue in 2023 of more than SEK 28 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.