Quarterly Report • May 7, 2013
Quarterly Report
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Interim Report January–March 2013
january–march 2013
The organic sales growth was flat and reflected the challenging macroeconomic situation that prevails in Europe and the security market in important markets such as France, Portugal and Spain continues to deteriorate. The US economy seems to be in a slow and gradual recovery mode. Latin America continued to show strong organic sales growth.
The operating margin improved in all divisions compared to the first quarter previous year, mainly driven by the various restructuring and cost savings actions taken in 2012. We achieved cost savings in the first quarter according to our restructuring plan.
In 2012 the sales of security solutions and technology represented approximately 6 percent of Group sales. We have set a target to triple this share of sales by the end of 2015. We continued to increase our investments in resources within security solutions and technology and in the first quarter of 2013 we were at 6.5 percent.
Alf Göransson President and Chief Executive Officer
| January–March summary 2 | |
|---|---|
| Group development 3 | |
| Development in the Group's business segments 4 |
|
| Cash flow 7 | |
| Capital employed and financing 8 |
|
| Acquisitions 9 | |
| Other significant events 10 | |
| Risks and uncertainties 10 | |
| Parent Company operations 11 |
|
| Accounting principles 12 | |
| Consolidated financial statements 14 |
|
| Segment overview 18 | |
| Notes 19 | |
| Parent Company 22 | |
| Definitions 22 | |
| Financial information 23 |
Comparatives have been restated for the business segments and the Group due to the organizational changes that took place in the Group as of January 1, 2013, and adoption of IAS 19 (revised). Further information can be found in the section Accounting principles on page 12 and in note 8.
| Quarter | Change, % | Full year | Change, % | |||
|---|---|---|---|---|---|---|
| MSEK | Q1 2013 | Q1 2012 | Total | Real | 2012 | Total |
| Sales | 15 860 | 16 264 | –2 | 2 | 66 458 | 4 |
| Organic sales growth, % | 0 | 1 | 0 | |||
| Operating income before amortization | 749 | 720 | 4 | 9 | 3 027 | –9 |
| Operating margin, % | 4.7 | 4.4 | 4.6 | |||
| Amortization and impairment of acquisition related intangible assets |
–64 | –64 | –297 | |||
| Acquisition related costs | –8 | –28 | –49 | |||
| Items affecting comparability | - | - | –424 | |||
| Operating income after amortization | 677 | 628 | 8 | 13 | 2 257 | –23 |
| Financial income and expenses | –136 | –134 | –573 | |||
| Income before taxes | 541 | 494 | 10 | 14 | 1 684 | –31 |
| Net income for the period | 380 | 347 | 10 | 14 | 1 175 | –31 |
| Earnings per share, SEK | 1.04 | 0.95 | 9 | 14 | 3.22 | –31 |
| EPS, adjusted for IAC and impairment losses, SEK |
1.04 | 0.95 | 9 | 14 | 4.11 | –12 |
| Cash flow from operating activities, % | 20 | 25 | 106 | |||
| Free cash flow | –123 | –8 | 2 086 | |||
| Free cash flow to net debt ratio | 0.20 | 0.12 | 0.21 |
Comparatives have been restated due to the adoption of IAS 19 (revised).
| Organic sales growth | Operating margin | ||||
|---|---|---|---|---|---|
| Q1 | Q1 | ||||
| % | 2013 | 2012 | 2013 | 2012 | |
| Security Services North America | 0 | 1 | 5.0 | 4.4 | |
| Security Services Europe | 0 | 1 | 5.2 | 5.0 | |
| Security Services Ibero-America | 1 | 2 | 5.5 | 5.0 | |
| Group | 0 | 1 | 4.7 | 4.4 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013 and adoption of IAS 19 (revised).
Group quarterly sales development Group quarterly sales development
Sales amounted to MSEK 15 860 (16 264) and organic sales growth was 0 percent (1). The organic sales growth was lower in all business segments, but showed a mixed picture among the countries. Main positive impact on Group organic sales growth derived from Germany and Argentina, while main negative impact came from France and Spain. Real sales growth, including acquisitions and adjusted for changes in exchange rates, was 2 percent (9).
Security solutions and technology sales represented 6.5 percent of Group sales.
Operating income before amortization was MSEK 749 (720) which, adjusted for changes in exchange rates, represented an improvement of 9 percent.
The Group's operating margin was 4.7 percent (4.4). The improvement mainly relates to the effects from the restructuring and cost savings program in the Group.
The price adjustments in the Group were on par with wage cost increases in the first quarter.
Amortization of acquisition related intangible assets amounted to MSEK –64 (–64).
Acquisition related costs were MSEK –8 (–28). For further information refer to note 4.
Financial income and expenses amounted to MSEK –136 (–134).
Income before taxes was MSEK 541 (494). The real change was 14 percent.
The Group's tax rate was 29.8 percent (29.6).
Net income was MSEK 380 (347). Earnings per share amounted to SEK 1.04 (0.95).
Security Services North America provides specialized guarding, security solutions and technology in the USA, Canada and Mexico. The organization comprises 17 business units with in total 109 000 employees and 640 branch managers.
| Quarter | Change, % | Full year | |||
|---|---|---|---|---|---|
| MSEK | Q1 2013 | Q1 2012 | Total | Real | 2012 |
| Total sales | 5 535 | 5 686 | –3 | 0 | 23 539 |
| Organic sales growth, % | 0 | 1 | 1 | ||
| Share of Group sales, % | 35 | 35 | 35 | ||
| Operating income before amortization | 274 | 251 | 9 | 12 | 1 113 |
| Operating margin, % | 5.0 | 4.4 | 4.7 | ||
| Share of Group operating income, % | 37 | 35 | 37 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013 and adoption of IAS 19 (revised).
The organic sales growth was 0 percent (1). Adjusted for the leap day in 2012, organic sales growth was 1 percent. The positive development in the business units federal government services and Pinkerton Corporate Risk Management supported organic sales growth.
The operating margin was 5.0 percent (4.4). Improvements were seen mainly in the five guarding regions, the business units federal government services, critical infrastructure and Pinkerton Corporate Risk Management as well as in Canada. The major part of the improvement stems from the restructuring and cost savings program.
The Swedish krona exchange rate strengthened versus the U.S. dollar and thus had a negative effect on the operating result in Swedish kronor. The real change was 12 percent in the quarter.
The client retention rate was 89 percent (89). The employee turnover rate in the business segment was 53 percent (51).
Quarterly operating income development Quarterly operating
Security Services Europe provides specialized guarding, security solutions and technology in 27 countries. The organization has in total 120 000 employees and over 800 branch managers.
| Quarter | Change, % | Full year | |||
|---|---|---|---|---|---|
| MSEK | Q1 2013 | Q1 2012 | Total | Real | 2012 |
| Total sales | 7 818 | 8 056 | –3 | 1 | 32 741 |
| Organic sales growth, % | 0 | 1 | 1 | ||
| Share of Group sales, % | 49 | 50 | 49 | ||
| Operating income before amortization | 407 | 405 | 0 | 4 | 1 673 |
| Operating margin, % | 5.2 | 5.0 | 5.1 | ||
| Share of Group operating income, % | 54 | 56 | 55 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013 and adoption of IAS 19 (revised).
Organic sales growth was 0 percent (1). The Nordic countries had lower organic sales growth compared to last year and countries such as France and United Kingdom showed negative organic sales growth of –9 and –5 percent respectively. The positive development in mainly Germany and Belgium supported organic sales growth.
The operating margin was 5.2 percent (5.0). The restructuring and cost savings program supports the improvement, while increased wage costs mainly in the Nordic countries due to Easter hampered the improvement. The operating margin declined in Norway due to high sickness rates and the Easter effect. In the United Kingdom it was negatively impacted by lower sales in a tough market environment. The operating margin continued to improve in Germany, and in France it was supported by a subsidy in social cost.
The Swedish krona exchange rate strengthened versus the euro and thus had a negative effect on the operating result in Swedish kronor. The real change was 4 percent in the quarter.
The client retention rate was 90 percent (90). The employee turnover was 25 percent (26).
Security Services Ibero-America provides specialized guarding, security solutions and technology in seven countries in Latin America, as well as Portugal and Spain in Europe. The organization has in total 58 000 employees and 190 branch managers.
| Quarter | Change, % | Full year | |||
|---|---|---|---|---|---|
| MSEK | Q1 2013 | Q1 2012 | Total | Real | 2012 |
| Total sales | 2 290 | 2 329 | –2 | 5 | 9 341 |
| Organic sales growth, % | 1 | 2 | –3 | ||
| Share of Group sales, % | 14 | 14 | 14 | ||
| Operating income before amortization | 125 | 117 | 7 | 15 | 496 |
| Operating margin, % | 5.5 | 5.0 | 5.3 | ||
| Share of Group operating income, % | 17 | 16 | 16 |
Comparatives have been restated due to the organizational changes that took place in the Group as of January 1, 2013.
Organic sales growth was 1 percent (2). The organic sales growth continued to be negative in Spain and Portugal, showing –14 percent in Spain in the first quarter, which is approximately in line with the security market's development. In Latin America organic sales growth was 23 percent primarily driven by price increases in Argentina and by price increases and portfolio growth in Chile, Colombia, Peru and Uruguay.
The operating margin was 5.5 percent (5.0). The positive development was mainly explained by Spain with impact from the restructuring and cost savings program as well as the outcome of the collective bargaining agreement. Lower sales and increased social payroll taxes with effect from August 1, 2012, had a hampering effect on the operating margin in the first quarter. In Latin America the operating margin was slightly lower compared to last year due to timing differences in recovering wage increases through price increases.
The Swedish krona exchange rate strengthened and thus had a negative effect on the operating result in Swedish kronor. The real change was 15 percent in the quarter.
The client retention rate was 88 percent (82). The employee turnover rate was 31 percent (38).
Operating income before amortization amounted to MSEK 749 (720). Net investments in noncurrent tangible and intangible assets amounted to MSEK 41 (–14).
Changes in accounts receivable were MSEK –35 (–41). Changes in other operating capital employed were MSEK –602 (–487).
Cash flow from operating activities amounted to MSEK 153 (178), equivalent to 20 percent (25) of operating income before amortization.
Financial income and expenses paid amounted to MSEK –159 (–79). Financial expenses paid were impacted negatively by the timing of coupon interest payment compared to last year. Current taxes paid amounted to MSEK –117 (–107).
Free cash flow was MSEK –123 (–8), equivalent to –26 percent (–2) of adjusted income.
Cash flow from investing activities, acquisitions, was MSEK –50 (–181).
Cash flow from items affecting comparability was MSEK –165 (–15), whereof MSEK –88 is related to the payment to Deutsche Bank in Germany, which was disclosed in the full year report 2012, MSEK –73 is related to the cost savings program and MSEK –4 is related to overtime compensation in Spain.
Cash flow from financing activities was MSEK 2 132 (2 185).
Cash flow for the period was MSEK 1 794 (1 981).
| MSEK | |
|---|---|
| Jan 1, 2013 | –9 865 |
| Free cash flow | –123 |
| Acquisitions | –50 |
| IAC payments | –165 |
| Change in net debt | –338 |
| Translation and revaluation |
142 |
| Mar 31, 2013 | –10 061 |
The Group's operating capital employed was MSEK 3 305 (2 582 as of December 31, 2012) corresponding to 5 percent of sales (4 as of December 31, 2012) adjusted for the full year sales figures of acquired units.
Acquisitions increased operating capital employed by MSEK 1 during the period.
Acquisitions increased consolidated goodwill by MSEK 16. Adjusted for negative translation differences of MSEK –237, total goodwill for the Group amounted to MSEK 14 054 (14 275 as of December 31, 2012).
Acquisitions have increased acquisition related intangible assets by MSEK 21. After amortization of MSEK –64 and negative translation differences of MSEK –41, acquisition related intangible assets amounted to MSEK 1 418 (1 502 as of December 31, 2012).
Free cash flow/Net debt Free cash flow/net debt
The Group's total capital employed was MSEK 18 885 (18 467 as of December 31, 2012). The translation of foreign capital employed to Swedish kronor decreased the Group's capital employed by MSEK –335.
The return on capital employed was 14 percent (14 as of December 31, 2012).
The Group's net debt amounted to MSEK 10 061 (9 865 as of December 31, 2012). Acquisitions and acquisition related payments increased the Group's net debt by MSEK 50, of which purchase price payments accounted for MSEK 37, assumed net debt for MSEK –4 and acquisition related costs paid accounted for MSEK 17. The Group's net debt decreased by MSEK –140 due to the translation of net debt in foreign currency to Swedish kronor.
The free cash flow to net debt ratio amounted to 0.20 (0.12).
The main capital market instruments drawn as of the end of March 2013 were twelve bonds issued under the Group's Euro Medium Term Note Program. The latest bond was a MEUR 300 5.5 year Eurobond which was issued in September 2012, with a coupon of 2.25 percent. In addition, Securitas has access to committed bank financing through a Revolving Credit Facility (RCF), which comprises two respective tranches of MUSD 550 and MEUR 420 (MUSD 1 100 in total). At the end of the quarter there was a total of MUSD 150 drawn on the facility, leaving MUSD 950 equivalent available and undrawn. The MEUR 500 Eurobond matured on April 2, 2013 and has been repaid with cash reserves, Commercial Paper issues and RCF drawings. The Group also has access to a MSEK 5 000 Swedish Commercial Paper Program for short-term borrowing needs. Further information regarding financial instruments and credit facilities is provided in note 6.
Securitas has ample liquidity headroom under the committed credit facilities in line with established policies, which combined with the strong free cash flow generation means that the future liquidity requirements for the Company's operations are met.
Standard and Poor's rating for Securitas is BBB with stable outlook. The Group's liquidity position is regarded as strong.
The interest cover ratio amounted to 5.0 (5.8).
Shareholders' equity amounted to MSEK 8 825 (8 602 as of December 31, 2012). The translation of foreign assets and liabilities into Swedish kronor decreased shareholders' equity by MSEK –195 after taking into account net investment hedging of MSEK 46 and MSEK –241 before net investment hedging. Refer to the statement of comprehensive income on page 14 for further information.
The total number of outstanding shares amounted to 365 058 897 as of March 31, 2013.
| Company | Business segment 1) |
Included from |
Acquired share 2) |
Annual sales 3) |
Enter - prise |
value 4) Goodwill | Acq. related intangible assets |
|---|---|---|---|---|---|---|---|
| Opening balance | 14 275 | 1 502 | |||||
| Selectron, Uruguay 7) | Security Services | ||||||
| Ibero-America | Feb 1 | 100 | 27 | 12 | 14 | 8 | |
| Other acquisitions 5) 7) | 62 | 22 | 2 | 13 | |||
| Total acquisitions January–March 2013 | 89 | 34 | 166) | 21 | |||
| Amortization of acquisition related intangible assets | - | –64 | |||||
| Exchange rate differences | –237 | –41 | |||||
| Closing balance | 14 054 | 1 418 |
1) Refers to business segment with main responsibility for the acquisition.
2) Refers to voting rights for acquisitions in the form of share purchase agreements. For asset deals no voting rights are stated.
4) Purchase price paid plus acquired net debt, but excluding any deferred considerations.
5) Related to other acquisitions for the period and updated previous year acquisition calculations for the following entities: Force Security (contract portfolio), Sweden, PSS and Vaktvesenet, Norway, NEO and Sectrans, France, RLH (contract portfolio), Austria, Nordserwis and Trezor (contract portfolio), Poland, Brink's Guarding, Morocco, Vip (contract portfolio), Uruguay, CSS Internacional, Costa Rica, Security Alliance Limited, Hong Kong, Legend Group, Singapore and PT Environmental Indokarya, Indonesia. Related also to deferred considerations paid in Norway, Switzerland, Argentina, Uruguay, Ecuador, Costa Rica and Singapore.
6) Goodwill that is expected to be tax deductible amounts to MSEK 13.
7) Deferred considerations have been recognized mainly based on an assessment of the future profitability development in the acquired entities for an agreed period. The net of new deferred considerations and payments made from previously recognized deferred considerations in the Group was MSEK –7. Total deferred considerations, short-term and long-term, in the Group's balance sheet amount to MSEK 527.
All acquisition calculations are finalized no later than one year after the acquisition is made. Transactions with non-controlling interests are specified in the statement of changes in shareholders' equity on page 17. Transaction costs and revaluation of deferred considerations can be found in note 4 on page 19.
Securitas has acquired all shares in the monitoring and installation company Selectron in Uruguay. Selectron has 90 employees. The company has a strong presence in the financial and retail customer segments.
3) Estimated annual sales.
For critical estimates and judgments, items affecting comparability, provisions and contingent liabilities refer to pages 84–85, 98–99 and pages 115–117 in the Annual Report 2012. If no significant events have occurred relating to the information in the Annual Report, no further comments are made in the Interim Report for the respective case.
Risk management is necessary in order for Securitas to be able to fulfill its strategies and achieve its corporate objectives. Securitas' risks fall into three main categories; contract risk, operational assignment risk and financial risks. Securitas approach to enterprise risk management is described in more detail in the Annual Report for 2012.
In the preparation of financial reports the Board of Directors and Group Management are required to make estimates and judgments. These estimates and judgments impact the statement of income and balance sheet as well as disclosures such as contingent liabilities. Actual results may differ from these estimates and judgments under different circumstances and conditions.
For the forthcoming nine-month period, the financial impact of certain previously recognized items affecting comparability, provisions and contingent liabilities, as described in the Annual Report for 2012 and if applicable above under the heading "Other significant events", may vary from the current financial estimates and provisions made by management. This could affect the Group's profitability and financial position.
The Group's Parent Company, Securitas AB, is not involved in any operating activities. Securitas AB provides Group Management and support functions for the Group.
The Parent Company's income amounted to MSEK 221 (247) and mainly relates to license fees and other income from subsidiaries.
Financial income and expenses amounted to MSEK 46 (23*). Income before taxes amounted to MSEK 99 (265).
The Parent Company's non-current assets amounted to MSEK 38 068 (38 119 as of December 31, 2012) and mainly comprise shares in subsidiaries of MSEK 37 161 (37 156 as of December 31, 2012). Current assets amounted to MSEK 8 711 (6 440 as of December 31, 2012) of which liquid funds amounted to MSEK 4 918 (25 as of December 31, 2012). The increase of liquid funds is mainly explained by the issuance of commercial paper and dividends received from subsidiaries during the first quarter and the fact that the MEUR 500 Eurobond was only repaid on April 2, 2013, resulting in a temporary increase in liquid funds.
Shareholders' equity amounted to MSEK 25 607 (25 545 as of December 31, 2012). The Parent Company's liabilities amounted to MSEK 21 172 (19 014 as of December 31, 2012) and mainly consist of interest-bearing debt.
For further information, refer to the Parent Company's condensed financial statements on page 22.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.
Securitas' consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups. The most important accounting principles under IFRS, which is the basis for the preparation of this interim report, can be found in note 2 on pages 75 to 81 in the Annual Report for 2012. The accounting principles are also available on the Group's website www.securitas.com under the section Investor Relations – Financials – Accounting Principles.
The Parent Company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's standard RFR 2 Accounting for Legal Entities. The most important accounting principles used by the Parent Company can be found in note 39 on page 123 in the Annual Report for 2012.
There have been no other changes than the changes described below in the Group's or the Parent Company's accounting principles compared to the accounting principles described in note 2 and note 39 in the Annual Report for 2012.
Due to organizational changes within the Group, segment comparatives have been restated as of January 1, 2013 as described below.
Security Services North America has been affected by operations within security consulting in the Netherlands that have been moved from the segment Other to Pinkerton Corporate Risk Management within Security Services North America. The previous segments Security Services Europe and Mobile and Monitoring have been merged into one segment named Security Services Europe. Furthermore, operations in Spain and Portugal have been moved from the previous segment Mobile and Monitoring to Security Services Ibero-America, while operations within security consulting in Belgium have been moved from the segment Other to Security Services Europe.
The organizational changes have impacted the distribution of sales and operating result between the business segments as well as the elimination of intra-group sales but have not had any impact on the total sales, organic sales growth, operating income nor operating margin for the Securitas Group.
IAS 1 (amended) has been be adopted by Securitas as of the financial year 2013. The amendments to the standard require the items in other comprehensive income to be split into two categories: items that will not be reclassified to the statement of income and items that subsequently may be reclassified to the statement of income. Taxes are disclosed separately for each category. For further information refer to the statement of comprehensive income and note 7.
IAS 19 (revised) has been adopted by the Securitas Group as of the financial year 2013. The impact on the Group from the revised standard is that interest cost and expected return on assets have been replaced by a net interest cost which is calculated by applying the discount rate to the net defined benefit obligation (or asset). Further, past service costs are recognized immediately instead of being accrued over the vesting period. The effect on the Group's financial statements is that the costs recognized for 2011 and 2012 related to defined benefits to employees increase. The actual benefits and the cash contributions for these plans are not impacted by IAS 19 (revised).
When restating the comparative years 2012 and 2011 the increase of these costs are MSEK –58 before taxes and MSEK –37 after taxes for 2012. For 2011 the increase is MSEK –50 before taxes and MSEK –30 after taxes. The increase in costs affects production expenses as well as selling and administrative expenses in operating income. For further information refer to note 8.
According to IAS 19 (revised) it will no longer be possible to apply the so called corridor method. Since Securitas has not applied the corridor method, this change will have no effect on the Group's financial statements
None of the other published standards and interpretations that are mandatory for the Group's financial year 2013 are assessed to have any material impact on the Group's financial statements.
Stockholm, May 7, 2013
Alf Göransson President and Chief Executive Officer
This report has not been reviewed by the company's auditors.
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Sales | 15 674.4 | 15 122.3 | 64 039.8 | 58 995.6 |
| Sales, acquired business | 185.7 | 1 142.0 | 2 418.4 | 5 061.5 |
| Total sales | 15 860.1 | 16 264.3 | 66 458.2 | 64 057.1 |
| Organic sales growth, %1) | 0 | 1 | 0 | 3 |
| Production expenses * | –13 166.1 | –13 545.2 | –55 364.5 | –52 983.9 |
| Gross income* | 2 694.0 | 2 719.1 | 11 093.7 | 11 073.2 |
| Selling and administrative expenses * | –1 948.7 | –2 002.4 | –8 081.5 | –7 810.0 |
| Other operating income 2) | 3.5 | 3.1 | 12.8 | 74.3 |
| Share in income of associated companies 3) | 0.7 | 0.2 | 2.7 | –2.4 |
| Operating income before amortization* | 749.5 | 720.0 | 3 027.7 | 3 335.1 |
| Operating margin, %* | 4.7 | 4.4 | 4.6 | 5.2 |
| Amortization and impairment of acquisition related intangible assets | –64.0 | –63.5 | –297.1 | –218.2 |
| Acquisition related costs 4) | –8.2 | –28.5 | –49.5 | –193.5 |
| Items affecting comparability 5) | - | – | –424.3 | – |
| Operating income after amortization* | 677.3 | 628.0 | 2 256.8 | 2 923.4 |
| Financial income and expenses 6) | –135.8 | –134.5 | –573.0 | –493.0 |
| Income before taxes* | 541.5 | 493.5 | 1 683.8 | 2 430.4 |
| Net margin, % | 3.4 | 3.0 | 2.5 | 3.8 |
| Current taxes | –135.9 | –134.8 | –526.4 | –680.1 |
| Deferred taxes * | –25.5 | –11.3 | 17.2 | –41.6 |
| Net income for the period* | 380.1 | 347.4 | 1 174.6 | 1 708.7 |
| Whereof attributable to: | ||||
| Equity holders of the Parent Company* | 379.9 | 346.8 | 1 174.2 | 1 705.8 |
| Non-controlling interests | 0.2 | 0.6 | 0.4 | 2.9 |
| Earnings per share before dilution (SEK) * | 1.04 | 0.95 | 3.22 | 4.67 |
| Earnings per share after dilution (SEK) * | 1.04 | 0.95 | 3.22 | 4.67 |
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Net income for the period* | 380.1 | 347.4 | 1 174.6 | 1 708.7 |
| Other comprehensive income for the period | ||||
| Items that will not be reclassified to the statement of income | ||||
| Remeasurements of defined benefit pension plans net of tax* | 90.4 | 96.4 | –111.7 | –237.1 |
| Total items that will not be reclassified to the statement of income 7) | 90.4 | 96.4 | –111.7 | –237.1 |
| Items that subsequently may be reclassified to the statement of income | ||||
| Cash flow hedges net of tax | –0.8 | 1.7 | 7.1 | 3.2 |
| Net investment hedges | 45.8 | –40.2 | –9.7 | 36.1 |
| Translation differences * | –240.5 | –189.1 | –550.1 | –132.5 |
| Total items that subsequently may be reclassified to the statement of income 7) | –195.5 | –227.6 | –552.7 | –93.2 |
| Other comprehensive income for the period* 7) | –105.1 | –131.2 | –664.4 | –330.3 |
| Total comprehensive income for the period* | 275.0 | 216.2 | 510.2 | 1 378.4 |
| Whereof attributable to: | ||||
| Equity holders of the Parent Company* | 275.8 | 215.5 | 510.4 | 1 376.1 |
| Non-controlling interests | –0.8 | 0.7 | –0.2 | 2.3 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
Notes 1–7 refer to pages 19–21.
| Operating cash flow MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Operating income before amortization* | 749.5 | 720.0 | 3 027.7 | 3 335.1 |
| Investments in non-current tangible and intangible assets | –193.9 | –249.0 | –1 039.2 | –1 009.8 |
| Reversal of depreciation | 234.3 | 235.3 | 946.1 | 902.0 |
| Change in accounts receivable | –34.9 | –40.6 | 205.4 | –722.6 |
| Change in other operating capital employed* | –602.3 | –487.3 | 60.8 | –397.3 |
| Cash flow from operating activities | 152.7 | 178.4 | 3 200.8 | 2 107.4 |
| Cash flow from operating activities, %* | 20 | 25 | 106 | 63 |
| Financial income and expenses paid | –158.9 | –79.2 | –531.9 | –475.1 |
| Current taxes paid | –117.0 | –106.8 | –583.3 | –763.9 |
| Free cash flow | –123.2 | –7.6 | 2 085.6 | 868.4 |
| Free cash flow, %* | –26 | –2 | 108 | 40 |
| Cash flow from investing activities, acquisitions | –50.2 | –181.0 | –677.3 | –1 882.0 |
| Cash flow from items affecting comparability | –165.4 | –14.9 | –193.8 | –23.7 |
| Cash flow from financing activities | 2 132.4 | 2 184.9 | 1 222.7 | 968.9 |
| Cash flow for the period | 1 793.6 | 1 981.4 | 2 437.2 | –68.4 |
| Cash flow MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
| Cash flow from operations | –111.3 | 192.7 | 2 833.4 | 1 674.5 |
| Cash flow from investing activities | –227.5 | –396.2 | –1 618.9 | –2 711.8 |
| Cash flow from financing activities | 2 132.4 | 2 184.9 | 1 222.7 | 968.9 |
| Cash flow for the period | 1 793.6 | 1 981.4 | 2 437.2 | –68.4 |
| Change in net debt MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
| Opening balance | –9 864.6 | –10 348.8 | –10 348.8 | –8 208.9 |
| Cash flow for the period | 1 793.6 | 1 981.4 | 2 437.2 | –68.4 |
| Change in loans | –2 132.4 | –2 184.9 | –2 317.9 | –2 064.1 |
| Change in net debt before revaluation and translation differences | –338.8 | –203.5 | 119.3 | –2 132.5 |
| Revaluation of financial instruments 6) | 2.3 | 3.3 | 10.6 | 7.5 |
| Translation differences | 140.3 | 183.6 | 354.3 | –14.9 |
| Change in net debt | –196.2 | –16.6 | 484.2 | –2 139.9 |
| Closing balance | –10 060.8 | –10 365.4 | –9 864.6 | –10 348.8 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
Note 6 refers to page 20.
| MSEK | Mar 31, 2013 | Dec 31, 2012 | Mar 31, 2012 | Dec 31, 2011 |
|---|---|---|---|---|
| Operating capital employed* | 3 304.6 | 2 581.5 | 3 546.8 | 3 145.8 |
| Operating capital employed as % of sales | 5 | 4 | 5 | 5 |
| Return on operating capital employed, %* | 89 | 91 | 100 | 116 |
| Goodwill | 14 053.7 | 14 275.4 | 14 465.3 | 14 727.4 |
| Acquisition related intangible assets | 1 417.8 | 1 501.9 | 1 587.4 | 1 574.1 |
| Shares in associated companies | 109.2 | 108.0 | 108.1 | 108.2 |
| Capital employed* | 18 885.3 | 18 466.8 | 19 707.6 | 19 555.5 |
| Return on capital employed, % | 14 | 14 | 17 | 17 |
| Net debt | –10 060.8 | –9 864.6 | –10 365.4 | –10 348.8 |
| Shareholders' equity* | 8 824.5 | 8 602.2 | 9 342.2 | 9 206.7 |
| Net debt equity ratio, multiple | 1.14 | 1.15 | 1.11 | 1.12 |
| MSEK | Mar 31, 2013 | Dec 31, 2012 | Mar 31, 2012 | Dec 31, 2011 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 14 053.7 | 14 275.4 | 14 465.3 | 14 727.4 |
| Acquisition related intangible assets | 1 417.8 | 1 501.9 | 1 587.4 | 1 574.1 |
| Other intangible assets | 340.5 | 368.1 | 344.7 | 330.5 |
| Tangible non-current assets | 2 330.6 | 2 377.7 | 2 348.6 | 2 361.8 |
| Shares in associated companies | 109.2 | 108.0 | 108.1 | 108.2 |
| Non-interest-bearing financial non-current assets * | 2 088.3 | 2 170.7 | 2 008.7 | 2 044.7 |
| Interest-bearing financial non-current assets | 165.3 | 224.3 | 178.5 | 189.5 |
| Total non-current assets* | 20 505.4 | 21 026.1 | 21 041.3 | 21 336.2 |
| Current assets | ||||
| Non-interest-bearing current assets | 12 901.2 | 12 434.1 | 13 198.2 | 12 802.6 |
| Other interest-bearing current assets | 36.4 | 116.3 | 33.5 | 19.6 |
| Liquid funds | 6 640.0 | 4 880.7 | 4 464.0 | 2 507.4 |
| Total current assets | 19 577.6 | 17 431.1 | 17 695.7 | 15 329.6 |
| TOTAL ASSETS* | 40 083.0 | 38 457.2 | 38 737.0 | 36 665.8 |
| MSEK | Mar 31, 2013 | Dec 31, 2012 | Mar 31, 2012 | Dec 31, 2011 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | ||||
| Attributable to equity holders of the Parent Company* | 8 811.4 | 8 588.3 | 9 342.6 | 9 204.1 |
| Non-controlling interests | 13.1 | 13.9 | –0.4 | 2.6 |
| Total shareholders' equity* | 8 824.5 | 8 602.2 | 9 342.2 | 9 206.7 |
| Equity ratio, % | 22 | 22 | 24 | 25 |
| Long-term liabilities | ||||
| Non-interest-bearing long-term liabilities | 410.6 | 409.3 | 525.7 | 532.1 |
| Interest-bearing long-term liabilities | 8 504.7 | 9 099.9 | 12 543.4 | 8 576.8 |
| Non-interest-bearing provisions * | 2 709.8 | 2 887.0 | 2 877.6 | 3 120.8 |
| Total long-term liabilities* | 11 625.1 | 12 396.2 | 15 946.7 | 12 229.7 |
| Current liabilities | ||||
| Non-interest-bearing current liabilities and provisions | 11 235.6 | 11 472.8 | 10 950.1 | 10 740.9 |
| Interest-bearing current liabilities | 8 397.8 | 5 986.0 | 2 498.0 | 4 488.5 |
| Total current liabilities | 19 633.4 | 17 458.8 | 13 448.1 | 15 229.4 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES* | 40 083.0 | 38 457.2 | 38 737.0 | 36 665.8 |
*Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
| Mar 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | Attributable to equity holders of the Parent Company |
Non controlling interests |
Total | Attributable to equity holders of the Parent Company |
Non controlling interests |
Total | Attributable to equity holders of the Parent Company |
Non controlling interests |
Total |
| Opening balance January 1, 2013/2012/2011 | 8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 | 8 935.4 | 3.1 | 8 938.5 |
| Effect of change in accounting principle IAS 191) | - | - | - | - | - | - | 1.2 | - | 1.2 |
| Opening balance adjusted in accordance with | |||||||||
| new accounting principle | 8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 | 8 936.6 | 3.1 | 8 939.7 |
| Total comprehensive income for the period | 275.8 | –0.8 | 275.0 | 510.43) | –0.2 | 510.23) | 1 376.1 | 2.3 | 1 378.4 |
| Transactions with non-controlling interests | - | - | - | –35.0 | 11.5 | –23.5 | - | –2.8 | –2.8 |
| Share based incentive scheme | –52.72) | - | –52.72) | 4.0 | - | 4.0 | –13.4 | - | –13.4 |
| Dividend paid to the shareholders of | |||||||||
| the Parent Company | - | - | - | –1 095.2 | - | –1 095.2 | –1 095.2 | - | –1 095.2 |
| Closing balance March 31/December 31, | |||||||||
| 2013/2012/2011 | 8 811.4 | 13.1 | 8 824.5 | 8 588.3 | 13.9 | 8 602.2 | 9 204.1 | 2.6 | 9 206.7 |
1) Refers to net impact after taxes of adoption of IAS 19 (revised).
2) Refers to a swap agreement in Securitas AB shares, hedging the share portion of Securitas share based incentive scheme 2012
3) Restated as an effect of a change in accounting principle IAS 19 (revised).
| SEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Share price, end of period | 61.35 | 63.80 | 56.70 | 59.40 |
| Earnings per share before dilution 1, 2, 6) | 1.04 | 0.95 | 3.22 | 4.67 |
| Earnings per share before dilution and before items affecting comparability 1, 2, 6) | 1.04 | 0.95 | 4.114) | 4.67 |
| Dividend | - | - | 3.005) | 3.00 |
| P/E-ratio after dilution and before items affecting comparability | - | - | 144) | 13 |
| Share capital (SEK) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
| Number of shares outstanding 3) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
| Average number of shares outstanding 3) | 365 058 897 | 365 058 897 | 365 058 897 | 365 058 897 |
1) There are no convertible debenture loans. Consequently there is no difference between earnings per share before and after dilution.
2) Number of shares used for calculation of earnings per share includes shares related to the Group's share based incentive schemes that have been hedged through a swap agreement.
3) There are no convertible debenture loans. Consequently there is no difference between number of shares before and after dilution.
4) Calculated excluding items affecting comparability as well as impairment of goodwill and other acquisition related intangible assets.
5) Proposed dividend.
6) Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).
| Security | Security | Security | ||||
|---|---|---|---|---|---|---|
| MSEK | Services North America |
Services Europe |
Services Ibero-America |
Other | Eliminations | Group |
| Sales, external | 5 533 | 7 818 | 2 290 | 219 | - | 15 860 |
| Sales, intra-group | 2 | - | - | - | –2 | - |
| Total sales | 5 535 | 7 818 | 2 290 | 219 | –2 | 15 860 |
| Organic sales growth, % | 0 | 0 | 1 | - | - | 0 |
| Operating income before amortization | 274 | 407 | 125 | –57 | - | 749 |
| of which share in income of associated companies | - | - | - | 1 | - | 1 |
| Operating margin, % | 5.0 | 5.2 | 5.5 | - | - | 4.7 |
| Amortization and impairment of acquisition related | ||||||
| intangible assets 1) | –8 | –34 | –17 | –5 | - | –64 |
| Acquisition related costs | - | –7 | –1 | 0 | - | –8 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating income after amortization | 266 | 366 | 107 | –62 | - | 677 |
| Financial income and expenses | - | - | - | - | - | –136 |
| Income before taxes | - | - | - | - | - | 541 |
| 1)Amortization and impairment of acquisition related intangible assets | ||||||
| Amortization of acquisition related intangible assets | –8 | –34 | –17 | –5 | - | –64 |
| Impairment losses of acquisition related intangible assets | - | - | - | - | - | - |
| Total | –8 | –34 | –17 | –5 | - | –64 |
| Security | Security | Security | ||||
|---|---|---|---|---|---|---|
| MSEK | Services North America 2) |
Services Europe 2) |
Services Ibero-America 2) |
Other 2) | Eliminations | Group |
| Sales, external | 5 686 | 8 054 | 2 329 | 195 | - | 16 264 |
| Sales, intra-group | - | 2 | - | - | –2 | - |
| Total sales | 5 686 | 8 056 | 2 329 | 195 | –2 | 16 264 |
| Organic sales growth, % | 1 | 1 | 2 | - | - | 1 |
| Operating income before amortization | 251 | 405 | 117 | –53 | - | 720 |
| of which share in income of associated companies | - | - | - | 0 | - | 0 |
| Operating margin, % | 4.4 | 5.0 | 5.0 | - | - | 4.4 |
| Amortization and impairment of acquisition related | ||||||
| intangible assets 1) | –8 | –36 | –17 | –3 | - | –64 |
| Acquisition related costs | –3 | –17 | –7 | –1 | - | –28 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating income after amortization | 240 | 352 | 93 | –57 | - | 628 |
| Financial income and expenses | - | - | - | - | - | –134 |
| Income before taxes | - | - | - | - | - | 494 |
| 1)Amortization and impairment of acquisition related intangible assets | ||||||
| Amortization of acquisition related intangible assets | –8 | –36 | –17 | –3 | - | –64 |
| Impairment losses of acquisition related intangible assets | - | - | - | - | - | - |
| Total | –8 | –36 | –17 | –3 | - | –64 |
2) Comparatives have been restated. Refer to note 8 for further information.
The calculation of organic sales growth (and the specification of currency changes on operating income and income before taxes) is specified below:
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Mar % |
|---|---|---|---|
| Sales | |||
| Total sales | 15 860 | 16 264 | –2 |
| Acquisitions/divestitures | –186 | –1 | |
| Currency change from 2012 | 655 | - | |
| Organic sales | 16 329 | 16 263 | 0 |
| Operating income | |||
| Operating income | 749 | 720 | 4 |
| Currency change from 2012 | 33 | - | |
| Currency adjusted operating income | 782 | 720 | 9 |
| Income before taxes | |||
| Income before taxes | 541 | 494 | 10 |
| Currency change from 2012 | 22 | - | |
| Currency adjusted income before taxes | 563 | 494 | 14 |
Other operating income 2013 and 2012 consists in its entirety of trade mark fees from Securitas Direct AB. Other operating income for the full year 2011 mainly comprises dividend of MSEK 29.3 from the Group's disposed joint venture Securitas Direct S.A. in Switzerland and a capital gain from the disposal of this company of MSEK 20.3. It also comprises trade mark fees from Securitas Direct AB of MSEK 10.1 and other items MSEK 14.6.
Securitas recognizes share in income of associated companies depending on the purpose of the investment.
· Associated companies that have been acquired to contribute to the operations (operational) are included in operating income before amortization.
· Associated companies that have been acquired as part of the financing of the Group (financial investments) are included in income before taxes as a separate line within the finance net. Currently, Securitas has no associated companies recognized as financial investments.
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Walsons Services PVT Ltd | 0.4 | –0.3 | 0.2 | –4.3 |
| Long Hai Security | 0.3 | 0.5 | 2.5 | 1.9 |
| Share in income of associated companies included in operating income before amortization | 0.7 | 0.2 | 2.7 | –2.4 |
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Restructuring and integration costs | –8.8 | –18.0 | –62.2 | –135.3 |
| Transaction costs | –2.3 | –3.6 | –17.2 | –65.1 |
| Revaluation of deferred considerations | 2.9 | –6.9 | 29.9 | 6.9 |
| Acquisition related costs | –8.2 | –28.5 | –49.5 | –193.5 |
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Recognized in the statement of income | ||||
| Restructuring costs | - | - | –458.0 | - |
| Spain – overtime compensation | - | - | 22.7 | - |
| Germany – discontinued operations | - | - | 11.0 | - |
| Total recognized in the statement of income | - | - | –424.3 | - |
| Cash flow impact | ||||
| Restructuring payments | –72.6 | - | –152.4 | - |
| Spain – overtime compensation | –3.8 | –14.1 | –37.9 | –17.5 |
| Germany – Deutsche Bank | –88.5 | - | - | - |
| Germany – premises | –0.5 | –0.8 | –3.5 | –4.5 |
| Other items affecting comparability | - | - | - | –1.7 |
| Total cash flow impact | –165.4 | –14.9 | –193.8 | –23.7 |
Revaluation of financial instruments is recognized in the statement of income on the line financial income and expenses. Revaluation of cash flow hedges (and the subsequent recycling into the statement of income) is recognized in other comprehensive income on the line cash flow hedges. The amount disclosed in the specification of change in net debt is the total revaluation before tax in the table below.
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Recognized in the statement of income | ||||
| Revaluation of financial instruments | –1.1 | 1.0 | 1.0 | 3.1 |
| Deferred tax | 0.2 | –0.3 | –0.3 | –0.8 |
| Impact on net income | –0.9 | 0.7 | 0.7 | 2.3 |
| Recognized in the statement of comprehensive income | ||||
| Cash flow hedges | 3.4 | 2.3 | 9.6 | 4.4 |
| Deferred tax | –0.7 | –0.6 | –2.5 | –1.2 |
| Adjustment of opening balance deferred taxes | –3.5 | - | - | - |
| Cash flow hedges net of tax | –0.8 | 1.7 | 7.1 | 3.2 |
| Total revaluation before tax | 2.3 | 3.3 | 10.6 | 7.5 |
| Total deferred tax | –4.0 | –0.9 | –2.8 | –2.0 |
| Total revaluation after tax | –1.7 | 2.4 | 7.8 | 5.5 |
The methods and assumptions used by the Group in estimating the fair value of the financial instruments are described in note 6 in the Annual Report 2012. Further information regarding the accounting principles for financial instruments are described in note 2 in the Annual Report 2012.
There have been no transfers between any of the the valuation levels during the period.
| MSEK | Quoted market prices |
Valuation techniques using observable market data |
Valuation techniques using non-observable market data |
Total |
|---|---|---|---|---|
| March 31, 2013 | ||||
| Financial assets at fair value through profit or loss | - | 36.0 | - | 36.0 |
| Financial liabilities at fair value through profit or loss | - | –54.6 | - | –54.6 |
| Derivatives designated for hedging with positive fair value | - | 42.2 | - | 42.2 |
| Derivatives designated for hedging with negative fair value | - | –7.7 | - | –7.7 |
| December 31, 2012 | ||||
| Financial assets at fair value through profit or loss | - | 105.6 | - | 105.6 |
| Financial liabilities at fair value through profit or loss | - | –48.4 | - | –48.4 |
| Derivatives designated for hedging with positive fair value | - | 102.0 | - | 102.0 |
| Derivatives designated for hedging with negative fair value | - | –10.9 | - | –10.9 |
For financial assets and liabilities other than those disclosed in the table below, fair value is deemed to approximate the carrying value. A full comparison of fair value and carrying value for all financial assets and liabilities is disclosed in note 6 in the Annual Report 2012.
| Mar 31, 2013 | Dec 31, 2012 | |||
|---|---|---|---|---|
| MSEK | Carrying value | Fair value | Carrying value | Fair value |
| Short-term loan liabilities | 4 176.7 | 4 176.7 | 4 302.4 | 4 355.7 |
| Long-term loan liabilities | 5 824.2 | 5 972.6 | 6 030.2 | 6 109.8 |
| Total financial instruments by category | 10 000.9 | 10 149.3 | 10 332.6 | 10 465.5 |
| Type | Currency | Facility amount (million) |
Available amount (million) |
Maturity |
|---|---|---|---|---|
| EMTN FRN private placement | SEK | 1 000 | 0 | 2013 |
| EMTN Eurobond, 6.50% fixed | EUR | 500 | 0 | 2013 |
| EMTN FRN private placement | EUR | 45 | 0 | 2014 |
| EMTN FRN private placement | SEK | 500 | 0 | 2014 |
| EMTN FRN private placement | SEK | 500 | 0 | 2014 |
| EMTN 3.45% fixed | SEK | 400 | 0 | 2015 |
| EMTN FRN private placement | SEK | 600 | 0 | 2015 |
| EMTN FRN private placement | USD | 62 | 0 | 2015 |
| EMTN FRN private placement | USD | 40 | 0 | 2015 |
| Multi Currency Revolving Credit Facility | USD equivalent | 1 100 | 950 | 2016 |
| EMTN Eurobond, 2.75% fixed | EUR | 350 | 0 | 2017 |
| EMTN FRN private placement | USD | 50 | 0 | 2018 |
| EMTN Eurobond, 2.25% fixed | EUR | 300 | 0 | 2018 |
| Commercial Paper (uncommitted) | SEK | 5 000 | 3 325 | n/a |
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 | Jan–Dec 2012 | Jan–Dec 2011 |
|---|---|---|---|---|
| Deferred tax on remeasurements of defined benefit pension plans | –45.2 | –42.1 | 58.3 | 136.3 |
| Deferred tax on cash flow hedges | –4.2 | –0.6 | –2.5 | –1.2 |
| Deferred tax on net investment hedges | –12.9 | 14.4 | 3.5 | –12.9 |
| Deferred tax on other comprehensive income | –62.3 | –28.3 | 59.3 | 122.2 |
The tables below show restated comparative figures for the business segments and for the Securitas Group. The restatement is done to reflect the organizational changes in the Group that took place on January 1, 2013 and to consider the impact from the adoption of IAS 19 (revised) that took place on the same date.
Security Services North America has been affected by operations within security consulting in the Netherlands that have been moved from the segment Other to Pinkerton Corporate Risk Management within Security Services North America. The previous segments Security Services Europe and Mobile and Monitoring have been merged into one segment named Security Services Europe. Furthermore, operations in Spain and Portugal have been moved from the previous segment Mobile and Monitoring to Security Services Ibero-America, while operations within security consulting in Belgium have been moved from the segment Other to Security Services Europe.
When restating the comparative years 2012 and 2011 due to the adoption of IAS 19 (revised), the increase of costs are MSEK –58 before taxes and MSEK –37 after taxes for 2012. For 2011 the increase was MSEK –50 before taxes and MSEK –30 after taxes. The increase in costs affects production expenses as well as selling and administrative expenses in operating income. The distribution of this impact between the business segments and for the Securitas Group as a whole is disclosed in the tables below. The line "of which impact from adoption of IAS 19 (revised)" shows the increase in cost compared to the previous version of IAS 19.
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
|---|---|---|---|---|---|---|---|---|
| Security Services North America | ||||||||
| Total sales | 22 415 | 5 686 | 6 069 | 11 755 | 5 849 | 17 604 | 5 935 | 23 539 |
| Organic sales growth, % | 4 | 1 | 1 | 1 | –1 | 0 | 1 | 1 |
| Operating income before amortization | 1 236 | 251 | 266 | 517 | 295 | 812 | 301 | 1 113 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | –38 | –10 | –11 | –21 | –11 | –32 | –11 | –43 |
| Operating margin, % | 5.5 | 4.4 | 4.4 | 4.4 | 5.0 | 4.6 | 5.1 | 4.7 |
| Security Services Europe | ||||||||
| Total sales | 31 589 | 8 056 | 8 341 | 16 397 | 8 108 | 24 505 | 8 236 | 32 741 |
| Organic sales growth, % | 0 | 1 | 2 | 1 | 2 | 1 | 0 | 1 |
| Operating income before amortization | 1 674 | 405 | 389 | 794 | 504 | 1 298 | 375 | 1 673 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | –12 | –4 | –4 | –8 | –3 | –11 | –4 | –15 |
| Operating margin, % | 5.3 | 5.0 | 4.7 | 4.8 | 6.2 | 5.3 | 4.6 | 5.1 |
| Security Services Ibero-America | ||||||||
| Total sales | 9 420 | 2 329 | 2 339 | 4 668 | 2 308 | 6 976 | 2 365 | 9 341 |
| Organic sales growth, % | 10 | 2 | –5 | –2 | –6 | –3 | –4 | –3 |
| Operating income before amortization | 597 | 117 | 121 | 238 | 129 | 367 | 129 | 496 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | - | - | - | - | - | - | - | - |
| Operating margin, % | 6.3 | 5.0 | 5.2 | 5.1 | 5.6 | 5.3 | 5.5 | 5.3 |
| Other | ||||||||
| Total sales | 642 | 195 | 222 | 417 | 211 | 628 | 216 | 844 |
| Organic sales growth, % | - | - | - | - | - | - | - | - |
| Operating income before amortization | –172 | –53 | –59 | –112 | –78 | –190 | –65 | –255 |
| of which impact from adoption of IAS 19 | ||||||||
| (revised) | - | - | - | - | - | - | - | - |
| Operating margin, % | - | - | - | - | - | - | - | - |
| Eliminations | ||||||||
| Total sales | –9 | –2 | –1 | –3 | –3 | –6 | –1 | –7 |
| Group | ||||||||
| Total sales | 64 057 | 16 264 | 16 970 | 33 234 | 16 473 | 49 707 | 16 751 | 66 458 |
| Organic sales growth, % | 3 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Operating income before amortization | 3 335 | 720 | 717 | 1 437 | 850 | 2 287 | 740 | 3 027 |
| of which impact from adoption of IAS 19 (revised) |
–50 | –14 | –15 | –29 | –14 | –43 | –15 | –58 |
| Operating margin, % | 5.2 | 4.4 | 4.2 | 4.3 | 5.2 | 4.6 | 4.4 | 4.6 |
| MSEK | Jan–Mar 2013 | Jan–Mar 2012 |
|---|---|---|
| License fees and other income | 221.3 | 247.3 |
| Gross income | 221.3 | 247.3 |
| Administrative expenses | –89.4 | –109.3 |
| Operating income | 131.9 | 138.0 |
| Financial income and expenses 1 | 46.3 | 22.9 |
| Income after financial items | 178.2 | 160.9 |
| Appropriations 1 | –79.0 | 104.2 |
| Income before taxes | 99.2 | 265.1 |
| Taxes | –3.9 | –4.8 |
| Net income for the period | 95.3 | 260.3 |
1) The comparative year 2012 has been restated since Group contributions have been accounted for as appropriations according to RFR 2 IAS 27.
Further information is provided in note 39 in the Annual Report 2012.
| MSEK | Mar 31, 2013 | Dec 31, 2012 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Shares in subsidiaries | 37 161.0 | 37 156.3 |
| Shares in associated companies | 112.1 | 112.1 |
| Other non-interest-bearing non-current assets | 231.9 | 233.7 |
| Interest-bearing financial non-current assets | 563.0 | 616.8 |
| Total non-current assets | 38 068.0 | 38 118.9 |
| Current assets | ||
| Non-interest-bearing current assets | 674.7 | 1 770.4 |
| Other interest-bearing current assets | 3 118.5 | 4 645.1 |
| Liquid funds | 4 917.9 | 24.9 |
| Total current assets | 8 711.1 | 6 440.4 |
| TOTAL ASSETS | 46 779.1 | 44 559.3 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Shareholders' equity | ||
| Restricted equity | 7 727.7 | 7 727.7 |
| Non-restricted equity | 17 879.2 | 17 817.7 |
| Total shareholders' equity | 25 606.9 | 25 545.4 |
| Long-term liabilities | ||
| Non-interest-bearing long-term liabilities/provisions | 132.6 | 113.4 |
| Interest-bearing long-term liabilities | 8 397.4 | 8 983.0 |
| Total long-term liabilities | 8 530.0 | 9 096.4 |
| Current liabilities | ||
| Non-interest-bearing current liabilities | 1 012.7 | 684.0 |
| Interest-bearing current liabilities | 11 629.5 | 9 233.5 |
| Total current liabilities | 12 642.2 | 9 917.5 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 46 779.1 | 44 559.3 |
Operating income before amortization (rolling 12 months) plus interest income (rolling 12 months) in relation to interest expenses (rolling 12 months).
Free cash flow as a percentage of adjusted income (operating income before amortization adjusted for financial income and expenses, excluding revaluation of financial instruments, and current taxes).
Free cash flow (rolling 12 months) in relation to closing balance net debt.
Operating capital employed as a percentage of total sales adjusted for the full-year sales of acquired entities.
Operating income before amortization (rolling 12 months) plus items affecting comparability (rolling 12 months) as a percentage of the average balance of operating capital employed.
Operating income before amortization (rolling 12 months) plus items affecting comparability (rolling 12 months) as a percentage of closing balance of capital employed.
Net debt in relation to shareholders' equity.
Analysts and media are invited to participate in a telephone conference on May 7, 2013 at 14:00 p.m. (CET) where Securitas CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas web. No information meeting will take place at Securitas headquarters at Lindhagensplan in Stockholm. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
The United States: +1 866 682 8490 Sweden: +46 (0) 8 506 307 79 United Kingdom: +44 (0) 844 571 8957
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/webcasts. A recorded version of the audio cast will be available at www.securitas.com/webcasts after the telephone conference.
Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, + 46 10 470 3011
| May 7, 2013, 16:00 p.m. | Annual General Meeting 2013 |
|---|---|
| The AGM will take place at Konserthuset at Hötorget in Stockholm at 16.00 p.m. |
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| August 7, 2013, 08:00 a.m. | Interim Report January–June 2013 |
| November 7, 2013, 08:00 a.m. | Interim Report January–September 2013 |
For further information regarding Securitas IR activities, refer to www.securitas.com/Investor Relations/Financial Calendar
Securitas is a knowledge leader in security and operates in North America, Europe, Latin America, the Middle East, Asia and Africa. The organization is flat and decentralized with three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. Securitas services a wide range of customers in a variety of industries and customer segments, and the customers vary from the shop on the corner to global multibillion industries. The services provided are specialized guarding and mobile services, monitoring, technical solutions and consulting and investigations. Securitas can respond to the unique and specific security challenges facing its customers, and tailor its offering according to their specific industry demands. Securitas employs more than 300 000 people in 52 countries. Securitas is listed in the Large Cap segment at NASDAQ OMX Stockholm.
Securitas focuses on two financial targets. The first target relates to the statement of income: an average growth of earnings per share of 10 percent annually. The second target relates to the balance sheet: free cash flow in relation to net debt of at least 0.20.
Our strategy is to offer complete security solutions that integrate all of our areas of competence. Together with our customers, we develop optimal and cost-efficient solutions that are suited for the customers' needs. This brings added value to the customers and results in stronger, more long-term customer relationships and improved profitability.
Securitas AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13.00 p.m. (CET) on Tuesday, May 7, 2013.
P.O. Box 12307 SE-102 28 Stockholm Sweden Tel +46 10 470 3000 Fax +46 10 470 3122 www.securitas.com Visiting address: Lindhagensplan 70
Corporate registration number 556302–7241
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