Securitas

Quarterly Report • May 8, 2024

Interim Report Q1 2024 | January–March 2024

1.84 Earnings per share, SEK

• Total sales MSEK 39 260 (37 751)
• Organic sales growth 7 percent (12)
• Real sales growth within technology and solutions 7 percent (77)
• Operating income before amortization MSEK 2 357 (2 180)
• Operating margin 6.0 percent (5.8)
• Earnings per share SEK 1.84 (1.66)
• Earnings per share before IAC, SEK 2.12 (2.03)
• Net debt/EBITDA ratio 2.9 (3.3*)
• Cash flow from operating activities –15 percent (9)

* The comparative is adjusted and includes STANLEY Security's 12 months adjusted estimated EBITDA.

CONTENTS

Comments from the President and CEO	3
January–March summary	4
Group development	5
Development in the Group's business segments	6
Cash flow	9
Capital employed and financing	10
Acquisitions and divestitures	12
Other significant events	13

Changes in Group Management	13
Risks and uncertainties	14
Parent Company operations	15
Consolidated financial statements	16
Segment overview	20
Notes	21
Parent Company	28
Financial information	29

Comments from the President and CEO

"Continued operating margin improvement in line with strategy"

The operating margin improvement continued in the first quarter to 6.0 percent (5.8), driven by a strong performance in our North American operations. Ibero-America also developed well, while Europe was weak primarily due to challenges within the airport security business. The Group's operating margin improved both in security services and in technology and solutions.

Organic sales growth was 7 percent. Real sales growth in our technology and solutions business was also 7 percent in the first quarter, negatively impacted by the divestment of Securitas Argentina in July 2023.

The integration of STANLEY Security continued to progress, realizing further cost synergies although these were partly offset by operational cost increases from the ongoing system and support transitions that are progressing according to plan. Our combined offering is gaining increased interest and appreciation from both existing and new clients, which presents good opportunities for deeper client partnerships and commercial synergies in our business.

The first quarter is our weakest cash flow quarter due to seasonality. As expected, the operating cash flow was lower than last year due to the strong net working capital position at year-end 2023, and as the quarter ended with the Easter holiday impacting collections. We remain with strong cash flow focus across the organization to ensure a strong 2024 outcome.

SHAPING SECURITAS FOR LONG-TERM SUSTAINABLE SHAREHOLDER VALUE

The overall message at our recent Investor Day in March was how we shape Securitas for long-term sustainable shareholder value. The core to that execution is operational value creation through growth in technology and solutions, security services portfolio profitability, cost efficiency and digital innovation.

We have invested substantially in our technology capabilities and in the transformation programs in the past few years to support the value creation, and we will continue to invest in a balanced way to ensure that our business has the capability to execute on the strategy. Another part of our

strategy execution is to continuously assess our business mix and presence to further sharpen our performance and competitive position.

I have met with a number of local and global clients in the US, Asia and Europe during the last few months and have received very positive feedback on the new Securitas we are creating. The clients are looking for a security partner with strong presence, technology and data capabilities. In addition to recent contract wins, the pipeline of commercial opportunities is very promising. We are piloting a new integrated Technology and Guarding services concept for broader roll-out together with one global client.

The strategic transformation of Securitas is on the right path and we are committed to achieve our target of 8 percent operating margin by the end of 2025. With our strong offering we will solidify our position as the leading security solutions company.

Magnus Ahlqvist President and CEO

January–March summary

As per the first quarter 2024, certain key ratios and definitions have been changed. Refer to note 5 for further information.

FINANCIAL SUMMARY

	Q1		Change, %		Full year	Change, %
MSEK	2024	2023	Total	Real	2023	Total
Sales	39 260	37 751	4	5	157 249	18
Organic sales growth, %	7	12			9
Operating income before amortization	2 357	2 180	8	9	10 247	28
Operating margin, %	6.0	5.8			6.5
Amortization of acquisition-related intangible assets	–151	–154			–620
Acquisition-related costs	–1	–1			–10
Items affecting comparability 1)	–217	–281			–4 669
Operating income after amortization	1 988	1 744	14	15	4 948	–24
Financial income and expenses	–554	–428			–2 115
Income before taxes	1 434	1 316	9	8	2 833	–51
Net income for the period	1 054	963	9	9	1 297	–70
Earnings per share, SEK	1.84	1.66	10	10	2.24	–76
Earnings per share, before items affecting comparability, SEK	2.12	2.03	4	4	9.59	–11
Cash flow from operating activities	–362	187			8 185
Cash flow from operating activities, %	–15	9			80
Free cash flow	–1 359	–627			4 938
Net debt/EBITDA ratio	2.9	3.3			2.7

1) Refer to note 7 for further information.

ORGANIC SALES GROWTH AND OPERATING MARGIN PER BUSINESS SEGMENT

	Organic sales growth		Operating margin Q1
	Q1
%	2024	2023	2024	2023
Securitas North America*	4	8	8.6	8.3
Securitas Europe	10	13	5.0	5.1
Securitas Ibero-America	6	23	6.7	5.8
Group	7	12	6.0	5.8

* The Securitas Ctritical Infrastructure Services business unit was moved from Securitas North America into Other in the third quarter 2023. The comparatives have been restated.

FINANCIAL SUMMARY PER BUSINESS LINE

	Sales, MSEK		Real sales growth, %		Operating income before amortization, MSEK		Operating margin, %		% of Group sales		% of Group operating income before amortization
Business line	Q1 2024	Q1 2023	Q1 2024	Q1 2023	Q1 2024	Q1 2023	Q1 2024	Q1 2023	Q1 2024	Q1 2023	Q1 2024	Q1 2023
Security services	25 768	24 944	4	11	1 131	1 077	4.4	4.3	66	66	48	49
Technology and solutions	12 762	12 021	7	77*	1 304	1 216	10.2	10.1	32	32	55	56
Risk management services and costs for Group functions	730	786	–	–	–78	–113	–	–	2	2	–3	–5
Group	39 260	37 751	5	26	2 357	2 180	6.0	5.8	100	100	100	100

* Excluding STANLEY Security real sales growth was 13 percent in the first quarter 2023.

For further information regarding the revenue from the Group's business lines, refer to note 3.

Group development

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

QUARTERLY OPERATING INCOME DEVELOPMENT

JANUARY–MARCH 2024

SALES DEVELOPMENT

Sales amounted to MSEK 39 260 (37 751) and organic sales growth to 7 percent (12).

Securitas North America had 4 percent (8) organic sales growth, supported by the Guarding and Technology business units. Securitas Europe showed 10 percent (13), driven by overall price increases and further support from growth in technology. Organic sales growth in Securitas Ibero-America was 6 percent (23), a decline due to the divestiture of Securitas Argentina. Extra sales in the Group amounted to 12 percent (12) of total sales.

Real sales growth, including acquisitions and divestitures and adjusted for changes in exchange rates, was 5 percent (26).

Technology and solutions sales amounted to MSEK 12 762 (12 021) or 32 percent (32) of total sales in the quarter. Real sales growth, including acquisitions and divestitures and adjusted for changes in exchange rates, was 7 percent (77). Excluding the impact of the divestment of Securitas Argentina, real sales growth was 8 percent in the first quarter.

OPERATING INCOME BEFORE AMORTIZATION

Operating income before amortization was MSEK 2 357 (2 180) which, adjusted for changes in exchange rates, represented a real change of 9 percent (42).

The Group's operating margin was 6.0 percent (5.8), an improvement driven by Securitas North America. Securitas Ibero-America also supported the improvement, while Securitas Europe declined somewhat. Price increases in the Group were on par with wage cost increases in the first quarter.

OPERATING INCOME AFTER AMORTIZATION

Amortization of acquisition-related intangible assets amounted to MSEK –151 (–154).

Acquisition-related costs totaled MSEK –1 (–1). For further information refer to Acquisitions and divestitures on page 12 and note 6.

Items affecting comparability were MSEK –217 (–281), whereof MSEK –128 (–115) related to the acquisition of STANLEY Security and MSEK –89 (–166) were related to the transformation programs in Europe and Ibero-America. For further information refer to note 7.

FINANCIAL INCOME AND EXPENSES

Financial income and expenses amounted to MSEK –554 (–428). Interest income and expense increased due to increased interest rates. The impact from IAS 29 hyperinflation was MSEK 32 (51) relating to the net monetary gain. For further information refer to note 8.

INCOME BEFORE TAXES

Income before taxes amounted to MSEK 1 434 (1 316).

TAXES, NET INCOME AND EARNINGS PER SHARE

The Group's tax rate was 26.5 percent (26.8). The tax rate before tax on items affecting comparability was 26.4 percent (26.6)

Net income was MSEK 1 054 (963).

Earnings per share before and after dilution amounted to SEK 1.84 (1.66). Earnings per share before and after dilution and before items affecting comparability amounted to SEK 2.12 (2.03).

Development in the Group's business segments

Securitas North America

Securitas North America provides protective services in the US, Canada and Mexico. The operations in the US are organized in three specialized units – Guarding, Technology and Pinkerton Corporate Risk Management. There is a unit for global and national clients as well as specialized client segment units, such as aviation, healthcare, manufacturing, and oil and gas.

	Q1		Change, %		Full year	Change, %
MSEK		2023	Total	Real	2023	Total
Total sales	15 750	14 956	5	4	62 561	20
Organic sales growth, %	4	8			6
Share of Group sales, %	40	40			40
Operating income before amortization	1 354	1 244	9	8	5 625	31
Operating margin, %	8.6	8.3			9.0
Share of Group operating income, %	57	57			55

The Securitas Ctritical Infrastructure Services business unit was moved from Securitas North America into Other in the third quarter 2023. The comparatives have been restated.

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

QUARTERLY OPERATING INCOME DEVELOPMENT

Operating margin, %

JANUARY–MARCH 2024

Organic sales growth was 4 percent (8), supported by the Guarding and Technology business units. Organic sales growth within the Guarding business unit stemmed from good sales momentum and price increases. The Technology business unit had good organic sales growth driven by installations and a solid order backlog. The client retention rate was 90 percent (87).

A contract within the Guarding business unit (airport security) was terminated as of March 31, 2024, as previously communicated. The contract annual sales amounts to MSEK 1 300 (MCAD 165).

Technology and solutions sales accounted for MSEK 5 787 (5 415) or 37 percent (36) of total sales in the business segment, with real sales growth of 7 percent (125) in the first quarter.

The operating margin was 8.6 percent (8.3), driven by the Technology business unit including cost synergies. The operating margin in the Guarding business unit also improved.

The Swedish krona exchange rate weakened against the US dollar, which had a positive impact on operating income in Swedish krona. The real change in operating income was 8 percent (63) in the first quarter.

Securitas Europe

Securitas Europe provides protective services in 21 countries. The full range of protective services includes on-site, mobile and remote guarding, technology, fire and safety services and corporate risk management. In addition, there are three specialized units for global clients, technology and security solutions.

		Q1		Change, %		Change, %
MSEK	2024	2023	Total	Real	2023	Total
Total sales	16 843	15 704	7	10	66 605	22
Organic sales growth, %	10	13			12
Share of Group sales, %	43	42			42
Operating income before amortization	834	794	5	9	4 095	28
Operating margin, %	5.0	5.1			6.1
Share of Group operating income, %	35	36			40

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

Operating margin, %

QUARTERLY OPERATING INCOME DEVELOPMENT

JANUARY–MARCH 2024

Organic sales growth was 10 percent (13) in the quarter and continued to be driven by price increases including the impact of the hyperinflationary environment in Türkiye. Organic sales growth was also supported by the technology business driven by installations and a solid order backlog. The client retention rate was 91 percent (91).

Technology and solutions sales accounted for MSEK 5 528 (5 213) or 33 percent (33) of total sales in the business segment, with real sales growth of 8 percent (67) in the first quarter.

The operating margin was 5.0 percent (5.1), a decline driven by a weaker quarter in the airport security business. The operating margin in technology also weakened including negative impact from the ongoing system and support transitions. Excluding the airport security business, the operating margin within security services improved supported by active portfolio management.

The Swedish krona exchange rate weakened against the euro, which was more than offset by the development by the Turkish lira, resulting in a negative impact on operating income in Swedish krona. The real change in operating income was 9 percent (30) in the first quarter.

Securitas Ibero-America

Securitas Ibero-America provides protective services in six Latin American countries as well as in Portugal and Spain in Europe. The offered services include on-site, mobile and remote guarding, technology, fire and safety services, and corporate risk management.

		Q1		Change, %		Change, %
MSEK	2024	2023	Total	Real	2023	Total
Total sales	3 646	4 002	–9	–9	15 449	6
Organic sales growth, %	6	23			15
Share of Group sales, %	9	11			10
Operating income before amortization	243	231	5	5	991	12
Operating margin, %	6.7	5.8			6.4
Share of Group operating income, %	10	11			10

QUARTERLY SALES DEVELOPMENT

Organic sales growth, %

QUARTERLY OPERATING INCOME DEVELOPMENT

Operating margin, %

JANUARY–MARCH 2024

Organic sales growth was 6 percent (23), a decline due to the divestiture of Securitas Argentina. Organic sales growth in Spain was 7 percent (6), supported by technology and solutions sales and price increases. In Latin America, organic sales growth continued to be driven by price increases. The client retention rate was 93 percent (91).

Technology and solutions sales accounted for MSEK 1 256 (1 224) or 34 percent (31) of total sales in the business segment, with real sales growth of 2 percent (17). Excluding the impact of the divestment of Securitas Argentina, real sales growth was 9 percent in the first quarter.

The operating margin was 6.7 percent (5.8), driven by improved margins in security services, positively impacted by the airport security business and the divestiture of Securitas Argentina.

The Swedish krona exchange rate weakened primarily against the euro which had a positive impact on operating income in Swedish krona. The real change in operating income was 5 percent (13) in the first quarter.

Cash flow

CASH FLOW

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Operating income before amortization	2 357	2 180	10 247
Investments in non-current tangible and intangible assets	–1 071	–947	–4 114
Reversal of depreciation	904	878	3 556
Change in trade receivables	–921	–419	–2 986
Change in operating payables	–1 186	–1 480	1 477
Change in other net working capital	–445	–25	5
Cash flow from operating activities	–362	187	8 185
Cash flow from operating activities, %	–15	9	80
Financial income and expenses paid	–746	–518	–1 899
Current taxes paid	–251	–296	–1 348
Free cash flow	–1 359	–627	4 938

As per the first quarter 2024, certain key ratios and definitions have been changed. Refer to note 5 for further information.

QUARTERLY CASH FLOW FROM OPERATING ACTIVITIES

Cash flow from operating activities, %

CASH FLOW FROM OPERATING ACTIVITIES, %

Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
9 %	46 %	84 %	166 %	–15 %

JANUARY–MARCH 2024

Cash flow from operating activities amounted to MSEK –362 (187), equivalent to –15 percent (9) of operating income before amortization.

The first quarter is seasonally a slower cash flow quarter. The cash flow development compared to last year was as expected weaker, due to the strong net working capital position at year-end 2023, and as the first quarter in 2024 ended with the Easter holiday.

Financial income and expenses paid was negatively impacted by increased annual bond coupon payments in the first quarter 2024.

Cash flow from operating activities is impacted by investments in noncurrent tangible and intangible assets which includes capital expenditures in equipment for solutions contracts.

Capital employed and financing

CAPITAL EMPLOYED AND FINANCING

MSEK	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Non-current tangible and intangible assets	11 751	11 604	11 281
Trade receivables	27 702	25 096	25 367
Operating payables	–17 173	–14 986	–17 649
Other net working capital	–259	200	–628
Net working capital	10 270	10 310	7 090
Net working capital as % of sales	6	7	5
Operating capital employed	22 021	21 914	18 371
Goodwill	53 751	51 062	50 916
Acquisition-related intangible assets	6 497	7 008	6 340
Shares in associated companies	383	400	354
Other capital employed	–1 552	–1 598	–1 753
Capital employed	81 100	78 786	74 228
Return on capital employed, %	13	11	14
Net debt	–41 130	–41 308	–37 530
Shareholders' equity	39 970	37 478	36 698

As per the first quarter 2024, certain key ratios and definitions have been changed. Refer to note 5 for further information.

NET DEBT DEVELOPMENT

MSEK	Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Jan 1, 2024		–37 530	–40 534	–40 534
Free cash flow		–1 359	–627	4 938
Acquisitions/divestitures	6	–10	–5	–170
Items affecting comparability	7	–290	–336	–1 403
Dividend paid		–	–	–1 977
Lease liabilities		23	40	291
Change in net debt		–1 636	–928	1 679
Revaluation of financial instruments		45	8	2
Translation differences		–2 009	146	1 323
Mar 31, 2024		–41 130	–41 308	–37 530

NET DEBT TO EBITDA RATIO

CAPITAL EMPLOYED AS OF MARCH 31, 2024

The net working capital was MSEK 10 270 (7 090 as of December 31, 2023), corresponding to 6 percent of sales, adjusted for the full-year sales of acquired and divested entities (5 as of December, 2023). The Group's operating capital employed was MSEK 22 021 (18 371 as of December 31, 2023). The translation of foreign operating capital employed to Swedish kronor increased the Group's operating capital employed by MSEK 980.

The Group's total capital employed was MSEK 81 100 (74 228 as of December 31, 2023). The translation of foreign capital employed to Swedish kronor increased the Group's capital employed by MSEK 4 042. The return on capital employed was 13 percent (14 as of December 31, 2023).

FINANCING AS OF MARCH 31, 2024

The Group's net debt amounted to MSEK 41 130 (37 530 as of December 31, 2023). The net debt was impacted mainly by the free cash flow of MSEK –1 359, translation differences of MSEK –2 009 and payments for items affecting comparability of MSEK –290.

The net debt to EBITDA ratio was 2.9 (3.3*). The free cash flow to net debt ratio amounted to 0.10 (0.08). The interest coverage ratio amounted to 4.0 (6.7).

On March 31, 2024, Securitas had a Revolving Credit Facility with its eleven key relationship banks. The size of the facility amounted to MEUR 1 029 maturing 2027. The facility was undrawn on March 31, 2024.

A Swedish Commercial Paper Program amounts to MSEK 5 000. MSEK 1 050 was outstanding as of March 31, 2024.

In February, 2024, Securitas repaid a MEUR 350 Eurobond and a MSEK 1 500 Private placement with proceeds of a MEUR 500 issue with a maturity in 2030.

On February 14, 2024, Standard & Poor's rating of Securitas was upgraded to BBB with stable outlook.

Further information regarding financial instruments and credit facilities is provided in note 9.

Cash flow from financing activities was MSEK –199 (22) due to a net decrease in borrowings.

Cash flow for the period was MSEK –1 858 (–946).

The closing balance for liquid funds after translation differences of MSEK 104 was MSEK 6 188 (7 942 as of December 31, 2023).

Shareholders' equity amounted to MSEK 39 970 (36 698 as of December 31, 2023). The translation of foreign assets and liabilities into Swedish krona together with net investment hedges increased shareholders' equity by MSEK 2 033. Refer to the statement of comprehensive income on page 16 for further information.

Acquisitions and divestitures

ACQUISITIONS AND DIVESTITURES JANUARY–MARCH 2024 (MSEK)

Company	Business segment  1)	Included/ excluded from	Acquired/ divested share 2)	Annual sales 3)	Enterprise value 4, 7)	Goodwill	Acq. related intangible assets
Opening balance						50 916	6 340
Other acquisitions and divestitures 5, 6)		–	–	–	9	–	–
Total acquisitions and divestitures January–March 2024		–	–	–	9	50 916	6 340
Amortization of acquisition-related intangible assets						–	–151
Translation differences and remeasurement for hyperinflation						2 835	308
Closing balance						53 751	6 497

1) Refers to business segment with main responsibility for the acquisition/divestiture.

2) Refers to voting rights for acquisitions/divestitures in the form of share purchase agreements. For asset deals no voting rights are stated.

3) Estimated annual sales.

4) Purchase price paid/received plus acquired/divested net debt but excluding any deferred considerations.

5) Related to deferred considerations paid in Austria, Spain and South Korea.

6) 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, payments made from previously recognized deferred considerations and revaluation of deferred considerations in the Group

was MSEK –9. Total deferred considerations, short-term and long-term, in the Group's balance sheet amount to MSEK 97.

7) Cash flow from acquisitions and divestitures amounts to MSEK –10, which is the sum of enterprise value MSEK –9 and acquisition-related costs paid MSEK –1.

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 19. Transaction costs and revaluation of deferred considerations can be found in note 6.

Other significant events

For critical estimates and judgments, provisions and contingent liabilities refer to the 2023 Annual Report and to note 11. 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.

Changes in Group Management

On April 15, 2024, it was announced that Greg Anderson, Divisional President North America and member of Group Management, had decided to leave Securitas to pursue an opportunity outside the business. This change was effective immediately, and José Castejon,

COO North America Guarding and member of Group Management, has taken on the role of acting Divisional President until a permanent successor has been appointed. All other Group Management members continue in their current roles.

Risks and uncertainties

Risk management is necessary for Securitas to be able to fulfill its strategies and achieve its corporate objectives. Securitas' risks fall into three main categories: operational risks, financial risks and strategic risks and opportunities. Securitas' approach to enterprise risk management is described in more detail in the Annual Report for 2023.

In the preparation of financial reports, the Board of Directors and Group Management make estimates and judgments. These impact the statement of income and balance sheet as well as disclosures such as contingent liabilities. The actual outcome may differ from these estimates and judgments under different circumstances and conditions.

Risks related to the general macroeconomic environment with the increase in inflation, interest rates, deteriorating insurance market, labor shortages and supply chain issues together with the changed geopolitical situation in the world, litigation environment in the US, increased cyber security threats and lingering effects from the corona pandemic makes it difficult to predict the economic development of the different markets and geographies in which we operate.

On July 22, 2022, Securitas completed the acquisition of STANLEY Security. The acquisition and integration of new companies always carries certain risks. The profitability of the acquired company may be lower than expected and/or certain costs in connection with the acquisition may be higher than expected.

Our transformation programs in Europe and Ibero-America are still in the execution phase in 2024. The implementation and rollout of new systems and platforms to support this transformation naturally carries a risk in terms of potential disruptions to our operations that could result in a negative impact on our result, cash flow and financial position. This is mitigated by solid change management and a phased rollout on a country by country basis over a longer period.

The geopolitical situation in the world has changed radically with Russia's invasion of Ukraine at the end of February 2022 and the ongoing conflict in the Middle East. We have no operations either in Russia or in Ukraine and very limited presence in Israel but we follow the development closely and contribute to a safer society where we can.

For the forthcoming nine-month period, the financial impact of the general macro-economic environment described above, the acquisition and integration of STANLEY Security including increased interest rates for the acquisition-funding, the integration and implementation of new platforms as part of our transformation programs and STANLEY Security integration, as well as certain items affecting comparability, provisions and contingent liabilities, as described in the Annual Report for 2023 and, where applicable, under the heading Other significant events above, may vary from the current financial estimates and provisions made by management. This could affect the Group's profitability and financial position.

Parent Company operations

The Group's Parent Company, Securitas AB, is not involved in any operating activities. Securitas AB consists of Group Management and support functions for the Group.

JANUARY–MARCH 2024

The Parent Company's income amounted to MSEK 606 (488) and mainly relates to license fees and other income from subsidiaries.

Financial income and expenses amounted to MSEK –67 (213). Income before taxes amounted to MSEK 192 (211).

AS OF MARCH 31, 2024

The Parent Company's non-current assets amounted to MSEK 66 166 (65 989 as of December 31, 2023) and mainly comprise shares in subsidiaries of MSEK 64 047 (63 933 as of December 31, 2023). Current assets amounted to MSEK 20 055 (23 778 as of December 31, 2023) of which liquid funds accounted for MSEK 32 (2 118 as of December 31, 2023).

Shareholders' equity amounted to MSEK 56 849 (56 660 as of December 31, 2023).

The Parent Company's liabilities and untaxed reserves amounted to MSEK 29 372 (33 107 as of December 31, 2023) and mainly consist of interest-bearing debt.

For further information, refer to the Parent Company's condensed financial statements on page 28.

Stockholm, May 8, 2024

Magnus Ahlqvist President and Chief Executive Officer

This report has not been reviewed by the company's auditors.

Consolidated financial statements

STATEMENT OF INCOME

MSEK	Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Sales		39 259	33 519	147 812
Sales, acquired business		1	4 232	9 437
Total sales	3	39 260	37 751	157 249
Organic sales growth, %	4	7	12	9
Production expenses		–31 373	–30 166	–125 123
Gross income		7 887	7 585	32 126
Selling and administrative expenses		–5 559	–5 430	–22 004
Other operating income	3	16	14	64
Share in income of associated companies		13	11	61
Operating income before amortization		2 357	2 180	10 247
Operating margin, %		6.0	5.8	6.5
Amortization of acquisition-related intangible assets		–151	–154	–620
Acquisition-related costs	6	–1	–1	–10
Items affecting comparability	7	–217	–281	–4 669
Operating income after amortization		1 988	1 744	4 948
Financial income and expenses	8, 9	–554	–428	–2 115
Income before taxes		1 434	1 316	2 833
Income tax		–380	–353	–1 536
Net income for the period		1 054	963	1 297
Whereof attributable to:
Equity holders of the Parent Company		1 052	953	1 285
Non-controlling interests		2	10	12
Earnings per share before and after dilution (SEK)		1.84	1.66	2.24
Earnings per share before and after dilution and before items affecting comparability (SEK)		2.12	2.03	9.59

STATEMENT OF COMPREHENSIVE INCOME

MSEK	Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Net income for the period		1 054	963	1 297
Other comprehensive income for the period
Items that will not be reclassified to the statement of income
Remeasurements of defined benefit pension plans		–6	–1	66
Deferred tax on remeasurements of defined benefit pension plans		1	0	–21
Total items that will not be reclassified to the statement of income		–5	–1	45
Items that subsequently may be reclassified to the ­statement of income
Remeasurement for hyperinflation	8	91	140	445
Cash flow hedges		18	7	1
Cost of hedging		25	0	–1
Net investment hedges		–935	42	597
Other comprehensive income from associated companies, translation differences		18	–1	–14
Translation differences		2 950	–114	–137
Deferred tax relating to items that may be reclassified to the statament of income		36	5	4
Total items that subsequently may be reclassified to the ­statement of ­income		2 203	79	895
Other comprehensive income for the period		2 198	78	940
Total comprehensive income for the period		3 252	1 041	2 237
Whereof attributable to:
Equity holders of the Parent Company		3 249	1 030	2 227
Non-controlling interests		3	11	10

STATEMENT OF CASH FLOW

Operating cash flow MSEK	Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Operating income before amortization		2 357	2 180	10 247
Investments in non-current tangible and intangible assets		–1 071	–947	–4 114
Reversal of depreciation		904	878	3 556
Change in trade receivables		–921	–419	–2 986
Change in operating payables		–1 186	–1 480	1 477
Change in other net working capital		–445	–25	5
Cash flow from operating activities		–362	187	8 185
Cash flow from operating activities, %		–15	9	80
Financial income and expenses paid		–746	–518	–1 899
Current taxes paid		–251	–296	–1 348
Free cash flow		–1 359	–627	4 938
Cash flow from investing activities, acquisitions and divestitures	6	–10	–5	–170
Cash flow from items affecting comparability	7	–290	–336	–1 403
Cash flow from financing activities		–199	22	–1 592
Cash flow for the period		–1 858	–946	1 773

Change in net debt MSEK	Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Opening balance		–37 530	–40 534	–40 534
Cash flow for the period		–1 858	–946	1 773
Change in lease liabilities		23	40	291
Change in loans		199	–22	–385
Change in net debt before revaluation and translation differences		–1 636	–928	1 679
Revaluation of financial instruments	9	45	8	2
Translation differences		–2 009	146	1 323
Change in net debt		–3 600	–774	3 004
Closing balance		–41 130	–41 308	–37 530

Cash flow MSEK	Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Cash flow from operations		–637	–57	7 462
Cash flow from investing activities		–692	–567	–2 724
Cash flow from financing activities		–529	–322	–2 965
Cash flow for the period		–1 858	–946	1 773

Change in liquid funds MSEK Note	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Opening balance	7 942	6 323	6 323
Cash flow for the period	–1 858	–946	1 773
Translation differences	104	–18	–154
Closing balance	6 188	5 359	7 942

CAPITAL EMPLOYED AND FINANCING

MSEK Note	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Non-current tangible and intangible assets	11 751	11 604	11 281
Trade receivables	27 702	25 096	25 367
Operating payables	–17 173	–14 986	–17 649
Other net working capital	–259	200	–628
Net working capital	10 270	10 310	7 090
Net working capital as % of sales	6	7	5
Operating capital employed	22 021	21 914	18 371
Goodwill	53 751	51 062	50 916
Acquisition-related intangible assets	6 497	7 008	6 340
Shares in associated companies	383	400	354
Other capital employed	–1 552	–1 598	–1 753
Capital employed	81 100	78 786	74 228
Return on capital employed, %	13	11	14
Net debt	–41 130	–41 308	–37 530
Shareholders' equity	39 970	37 478	36 698

BALANCE SHEET

MSEK Note	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
ASSETS
Non-current assets
Goodwill	53 751	51 062	50 916
Acquisition-related intangible assets	6 497	7 008	6 340
Other intangible assets	2 761	2 581	2 637
Right-of-use assets	4 635	4 854	4 495
Other tangible non-current assets	4 355	4 169	4 148
Shares in associated companies	383	400	354
Non-interest-bearing financial non-current assets	4 580	4 095	4 299
Interest-bearing financial non-current assets	1 108	1 191	1 513
Total non-current assets	78 070	75 360	74 702
Current assets
Non-interest-bearing current assets	37 727	35 907	33 431
Other interest-bearing current assets	259	188	317
Liquid funds	6 188	5 359	7 942
Total current assets	44 174	41 454	41 690
TOTAL ASSETS	122 244	116 814	116 392

MSEK Note	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Attributable to equity holders of the Parent Company	39 964	37 456	36 695
Non-controlling interests	6	22	3
Total shareholders' equity	39 970	37 478	36 698
Equity ratio, %	33	32	32
Long-term liabilities
Non-interest-bearing long-term liabilities	311	324	303
Long-term lease liabilities	3 432	3 497	3 336
Other interest-bearing long-term liabilities	35 316	37 018	31 687
Non-interest-bearing provisions	3 852	3 643	3 734
Total long-term liabilities	42 911	44 482	39 060
Current liabilities
Non-interest-bearing current liabilities and provisions	29 426	27 323	28 355
Current lease liabilities	1 401	1 519	1 333
Other interest-bearing current liabilities	8 536	6 012	10 946
Total current liabilities	39 363	34 854	40 634
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	122 244	116 814	116 392

CHANGES IN SHAREHOLDERS' EQUITY

		Mar 31, 2024		Mar 31, 2023			Dec 31, 2023
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, 2024/2023	36 695	3	36 698	36 424	14	36 438	36 424	14	36 438
Total comprehensive income for the period	3 249	3	3 252	1 030	11	1 041	2 227	10	2 237
Transactions with non-controlling interests	–	–	–	–	–3	–3	–	–21	–21
Share-based incentive schemes	20	–	201)	2	–	2	21	–	21
Dividend to the shareholders of the Parent Company	–	–	–	–	–	–	–1 977	–	–1 977
Closing balance March 31/December 31, 2024/2023	39 964	6	39 970	37 456	22	37 478	36 695	3	36 698

1) Refers to share-based remuneration for the participants in the long-term share-based incentive scheme 2024 of MSEK 20.

DATA PER SHARE

SEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Share price, end of period	110.35	92.28	98.58
Earnings per share before and after dilution 1,2)	1.84	1.66	2.24
Earnings per share before and after dilution and before items affecting comparability 1,2)	2.12	2.03	9.59
Dividend	–	–	3.804)
P/E-ratio after dilution and before items affecting comparability	–	–	10
Share capital (SEK)	573 392 552	573 392 552	573 392 552
Number of shares outstanding 1)	572 917 552	572 917 552	572 917 552
Average number of shares outstanding 1,3)	572 917 552	572 917 552	572 917 552
Treasury shares	475 000	475 000	475 000

1) There are no convertible debenture loans. Consequently there is no difference between before and after dilution regarding earnings per share and number of shares.

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 swap agreements.

3) Used for calculation of earnings per share.

4) Proposed dividend, distributed to the shareholders in two payments of SEK 1.90 per share and SEK 1.90 per share, respectively.

Segment overview January–March 2024 and 2023

JANUARY–MARCH 2024

MSEK	Securitas North America	Securitas Europe	Securitas Ibero-America	Other	Eliminations	Group
Sales, external	15 708	16 843	3 646	3 063	–	39 260
Sales, intra-group	42	0	–	0	–42	–
Total sales	15 750	16 843	3 646	3 063	–42	39 260
Organic sales growth, %	4	10	6	–	–	7
Operating income before amortization	1 354	834	243	–74	–	2 357
of which share in income of associated companies	–	–	–	13	–	13
Operating margin, %	8.6	5.0	6.7	–	–	6.0
Amortization of acquisition-related intangible assets	–72	–68	–2	–9	–	–151
Acquisition-related costs	–	–1	–	–	–	–1
Items affecting comparability	–70	–131	–9	–7	–	–217
Operating income after amortization	1 212	634	232	–90	–	1 988
Financial income and expenses	–	–	–	–	–	–554
Income before taxes	–	–	–	–	–	1 434

JANUARY–MARCH 2023

MSEK	Securitas North America1)	Securitas Europe	Securitas Ibero-America	Other1)	Eliminations	Group
Sales, external	14 899	15 703	4 002	3 147	–	37 751
Sales, intra-group	57	1	0	0	–58	–
Total sales	14 956	15 704	4 002	3 147	–58	37 751
Organic sales growth, %	8	13	23	–	–	12
Operating income before amortization	1 244	794	231	–89	–	2 180
of which share in income of associated companies	–	–	–	11	–	11
Operating margin, %	8.3	5.1	5.8	–	–	5.8
Amortization of acquisition-related intangible assets	–71	–71	–2	–10	–	–154
Acquisition-related costs	–	–1	–	0	–	–1
Items affecting comparability	–66	–171	–20	–24	–	–281
Operating income after amortization	1 107	551	209	–123	–	1 744
Financial income and expenses	–	–	–	–	–	–428
Income before taxes	–	–	–	–	–	1 316

1) As of the third quarter of 2023, the Critical Infrastructure Services business unit was moved from the business segment Securitas North America into Other. Comparatives have been restated.

Notes

NOTE 1 Accounting principles

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 65–70 in the Annual Report for 2023. The accounting principles are also available on the Group's website www.securitas.com under the section Investors – Financial data – 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 41 on page 118 in the Annual Report for 2023.

Introduction and effect of new and revised IFRS 2024

None of the published standards and interpretations that are mandatory for the Group's financial year 2024 are assessed to have any significant impact on the Group's financial statements.

Introduction and effect of new and revised IFRS 2025 or later

The effect on the Group's financial statements from standards and interpretations that are mandatory for the Group's financial year 2025 or later remain to be assessed.

Usage of key ratios not defined in IFRS

For definitions and calculations of key ratios not defined in IFRS, refer to notes 4 and 5 in this interim report as well as to note 3 in the Annual Report 2023. As per the first quarter 2024, certain key ratios and defintions have been changed. Refer to note 5 for further information.

NOTE 2 Events after the reporting period

There have been no significant events with effect on the financial reporting after the reporting period date.

NOTE 3

Revenue

MSEK	Jan–Mar 2024	%	Jan–Mar 2023	%	Jan–Dec 2023	%
Security services	25 768	66	24 944	66	103 677	66
Technology and solutions	12 762	32	12 021	32	50 514	32
Risk management services	730	2	786	2	3 058	2
Total sales	39 260	100	37 751	100	157 249	100
Other operating income	16	0	14	0	64	0
Total revenue	39 276	100	37 765	100	157 313	100

Security services

This comprises on-site and mobile guarding, which are services with the same revenue recognition pattern. Revenue is recognized over time, as the services are rendered by Securitas and simultaneously consumed by the client. Such services cannot be reperformed.

Technology and solutions

This comprises two broad categories regarding technology and solutions. Technology consists of the sale of alarm, access control and video installations comprising design, installation and integration (time, material and related expenses). Revenue is recognized as per the contract, either upon completion of the conditions in the contract, or over time based on the percentage of completion. Remote guarding (in the form of alarm monitoring services), that is sold separately and not as part of a solution, is also included in this category. Revenue recognition is over time as this is also a service that is rendered by Securitas and simultaneously consumed by the clients. The category further includes maintenance services, that are either performed upon request (time and material) with revenue recognition at a point in time (when the work has been performed), or over time if part of a service level contract with a subscription fee. Finally, there are also

product sales (alarms and components) without any design or installation. The revenue recognition is at a point in time (upon delivery).

Solutions are a combination of services such as on-site and/or mobile guarding and/or remote guarding. These services are combined with a technology component in terms of equipment owned and managed by Securitas and used in the provision of services. The equipment is installed at the client site. The revenue recognition pattern is over time, as the services are rendered by Securitas and simultaneously consumed by the client. A solution normally constitutes one performance obligation.

Risk management services

This comprises various types of risk management services that are either recognized over time or at a point in time depending on the type of service. These services include risk advisory, security management, executive protection, corporate investigations, due diligence and similar services.

Other operating income

Other operating income consists mainly of trade mark fees for the use of the Securitas brand name.

Revenue per segment

The disaggregation of revenue by segment is shown in the table below. Total sales agree to total sales in the segment overview.

		Securitas North America1)		Securitas Europe		Securitas Ibero-America		Other1)		Eliminations		Group
MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Mar 2024	Jan–Mar 2023	Jan–Mar 2024	Jan–Mar 2023	Jan–Mar 2024	Jan–Mar 2023	Jan–Mar 2024	Jan–Mar 2023	Jan–Mar 2024	Jan–Mar 2023
Security services	9 233	8 755	11 315	10 491	2 390	2 778	2 837	2 927	–7	–7	25 768	24 944
Technology and solutions	5 787	5 415	5 528	5 213	1 256	1 224	226	220	–35	–51	12 762	12 021
Risk management services	730	786	–	–	–	–	–	–	–	–	730	786
Total sales	15 750	14 956	16 843	15 704	3 646	4 002	3 063	3 147	–42	–58	39 260	37 751
Other operating income	–	–	–	–	–	–	16	14	–	–	16	14
Total revenue	15 750	14 956	16 843	15 704	3 646	4 002	3 079	3 161	–42	–58	39 276	37 765

1) As of the third quarter of 2023, the Critical Infrastructure Services business unit was moved from the business segment Securitas North America into Other. Comparatives have been restated.

The calculation of real and organic sales growth and the specification of currency changes on operating income before and after amortization, income before taxes, net income and earnings per share are specified below. The impact from remeasurement for hyperinflation due to the application of IAS 29 is included in currency change.

MSEK	Jan–Mar 2024	Jan–Mar 2023	%
Total sales	39 260	37 751	4
Currency change from 2023	352	–
Real sales growth, adjusted for changes in exchange rates	39 612	37 751	5
Acquisitions/divestitures	–1	–602
Organic sales growth	39 611	37 149	7
Operating income before amortization	2 357	2 180	8
Currency change from 2023	20	–
Real operating income before amortization, adjusted for changes in exchange rates	2 377	2 180	9
Operating income after amortization	1 988	1 744	14
Currency change from 2023	18	–
Real operating income after amortization, adjusted for changes in exchange rates	2 006	1 744	15
Income before taxes	1 434	1 316	9
Currency change from 2023	–9	–
Real income before taxes, adjusted for changes in exchange rates	1 425	1 316	8
Net income for the period	1 054	963	9
Currency change from 2023	–7	–
Real net income for the period, adjusted for changes in exchange rates	1 047	963	9
Net income attributable to equity holders of the ­Parent Company	1 052	953	10
Currency change from 2023	–7	–
Real net income attributable to equity holders of the Parent Company, adjusted for changes in exchange rates	1 045	953	10
Average number of shares outstanding	572 917 552	572 917 552
Real earnings per share, adjusted for changes in exchange rates	1.82	1.66	10
Net income attributable to equity holders of the Parent Company	1 052	953	10
Items affecting comparability net of taxes	161	209
Net income attributable to equity holders of the Parent Company, adjusted for items affecting comparability	1 213	1 162	4
Currency change from 2023	–8	–
Real net income attributable to equity holders of the Parent Company, adjusted for items affecting comparability and changes in exchange rates	1 205	1 162	4
Average number of shares outstanding	572 917 552	572 917 552
Real earnings per share, adjusted for items affecting comparability and changes in exchange rates	2.10	2.03	4

The calculations below relate to the period January–March 2024.

Interest coverage ratio

Operating income before amortization (rolling 12 months) plus interest income (rolling 12 months) in relation to interest expenses (rolling 12 months). Calculation: (10 424 + 239) / 2 647 = 4.0

Cash flow from operating activities, %

Cash flow from operating activities as a percentage of operating income before amortization.

Calculation: –362 / 2 357 = –15%

Free cash flow in relation to net debt

Free cash flow (rolling 12 months) in relation to closing balance of net debt. Calculation: 4 206 / 41 130 = 0.10

Net debt to EBITDA ratio1)

Net debt in relation to operating income before amortization (rolling 12 months) excluding depreciation (rolling 12 months) and including acquisition-related costs (rolling 12 months). Calculation: 41 130 / (10 424 + 3 582 – 10) = 2.9

Net working capital in % of total sales2)

Net working capital as a percentage of total sales (rolling 12 months) adjusted for the full-year sales of acquired and divested entities. Calculation: 10 270 / 158 444 = 6%

Capital expenditures in % of sales2)

Investments in non-current tangible and intangible assets for the period as a percentage of total sales for the period.

Calculation: 1 071 / 39 260 = 2.7%

Return on capital employed1)

Operating income before amortization (rolling 12 months) as a percentage of closing balance of capital employed adjusted for provisions related to items affecting comparability.

Calculation: 10 424 / (81 100 + 203) = 13%

Net debt equity ratio

Net debt in relation to shareholders' equity. Calculation: 41 130 / 39 970 = 1.03

Operating capital employed1)

Capital employed less goodwill, acquisition-related intangible assets, shares in associated companies and other capital employed.

Other capital employed2)

Current and deferred tax balances, accrued interest, deferred considerations and provisions related to items affecting comparability and acquisition-related costs.

Trade receivables2)

Accounts receivable and accrued sales income less deferred sales income.

Operating payables2)

Accounts payable, employee-related liabilities, prepaid and accrued expenses/income excluding accrued interest.

Other net working capital2)

Operating capital employed less non-current tangible and intangible assets, trade receivables and operating payables.

Net working capital2)

Trade receivables, operating payables and other net working capital.

1) The definition has been changed as of the first quarter 2024 and the comparatives have been restated.

2) The definition or key ratio is new as of the first quarter 2024.

NOTE 6 Acquisition-related costs and cash flow from acquisitions and divestitures

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Restructuring and integration costs	0	0	–6
Revaluation of deferred considerations	–1	–1	–4
Total acquisition-related costs	–1	–1	–10
Cash flow impact from acquisitions and divestitures
Purchase price payments	–9	–5	–41
Assumed net debt	–	–	–120
Acquisition-related costs paid	–1	0	–9
Total cash flow impact from acquisitions and divestitures	–10	–5	–170

For further information regarding the Group's acquisitions and divestitures, refer to the section Acquisitions and divestitures.

NOTE 7 Items affecting comparability

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Recognized in the statement of income
Transformation programs, Group1)	–89	–166	–686
Acquisition of STANLEY Security2)	–128	–115	–662
Divestiture of Securitas Argentina3)	–	–	–3 321
Total recognized in income before taxes	–217	–281	–4 669
Taxes4)	56	72	460
Total recognized in net income for the period	–161	–209	–4 209
Cash flow impact
Transformation programs, Group1)	–105	–171	–624
Cost-savings program, Group5)	–7	–3	–15
Cost-savings program, Securitas Europe6)	–	–	0
Acquisition of STANLEY Security2)	–178	–162	–761
Divestiture of Securitas Argentina3)	–	–	–3
Total cash flow impact	–290	–336	–1 403

1) Related to the previously announced business transformation program in Security Services Europe and Security Services Ibero-America.

2) Related to transaction costs, restructuring and integration costs.

3) Includes costs related to the divestiture of Securitas Argentina 2023. The divestiture had limited cash flow impact of MSEK –123, whereof MSEK –120 is reported as cash flow from investing activities, acquisitions and divestitures (note 6) and MSEK –3 is reported as cash flow from items affecting comparability.

4) Including reversal of a tax provision of MSEK 118 in the fourth quarter of 2023.

5) Related to the cost-savings program in the Group that was communicated in 2020. Includes costs related to exit of business operations while cash flow related to exit of business operations is accounted for as cash flow from investing activities. This program was finalized in 2021 but still impacts cash flow.

6) Related to the cost-savings program in Security Services Europe. This program was finalized in 2018 but still impacted cash flow in 2023.

NOTE 8 Remeasurement for hyperinflation

The Group's subsidiaries in countries that according to IAS 29 Financial reporting in hyperinflationary economies are classified as hyperinflationary economies are accounted for in the Group's financial statements after remeasurement for hyperinflation. Securitas' operation accounted for according to IAS 29 is Türkiye. Argentina was included up to second quarter 2023 when the operation was divested.

The impact on the consolidated statement of income and other comprehensive income from the remeasurement according to IAS 29 is illustrated below. The index used by Securitas for the remeasurement of the financial statements is the consumer price index with base period January 2003 for Argentina and base period January 2005 for Türkiye.

EXCHANGE RATES AND INDEX

	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Exchange rate Argentina, SEK/ARS	–	0.05	–
Index, Argentina	–	83.03	–
Exchange rate Türkiye, SEK/TRY	0.33	0.54	0.34
Index, Türkiye	18.69	11.09	16.24

NET MONETARY GAIN RECOGNIZED IN THE CONSOLIDATED STATEMENT OF INCOME

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Net monetary gain, Argentina	–	22	48
Net monetary gain, Türkiye	32	29	138
Total financial income and expenses	32	51	186

REMEASUREMENT IMPACT RECOGNIZED IN OTHER COMPREHENSIVE INCOME

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Remeasurement net of tax, Argentina	–	61	141
Remeasurement net of tax, Türkiye	89	77	296
Total remeasurement impact recognized in other comprehensive income	89	138	437

Revaluation of financial instruments

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. Cost of hedging (and the subsequent recycling into the statement of income) is recognized on the corresponding line in other comprehensive income.

The amount disclosed in the specification of change in net debt is the total revaluation before tax in the table below.

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
Recognized in the statement of income
Revaluation of financial instruments	2	1	2
Deferred tax	–	–	–
Impact on net income	2	1	2
Recognized in the statement of comprehensive income
Cash flow hedges	18	7	1
Cost of hedging	25	0	–1
Deferred tax	–5	–1	–1
Total recognized in the statement of comprehensive income	38	6	–1
Total revaluation before tax	45	8	2
Total deferred tax	–5	–1	–1
Total revaluation after tax	40	7	1

Fair value hierarchy

The methods and assumptions used by the Group in estimating the fair value of the financial instruments are disclosed in note 7 in the Annual Report 2023. Further information regarding the accounting principles for financial instruments is disclosed in note 2 in the Annual Report 2023.

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, 2024
Financial assets at fair value through profit or loss	–	135	–	135
Financial liabilities at fair value through profit or loss	–	–48	–97	–145
Derivatives designated for hedging with positive fair value	–	129	–	129
Derivatives designated for hedging with negative fair value	–	–760	–	–760
December 31, 2023
Financial assets at fair value through profit or loss	–	69	–	69
Financial liabilities at fair value through profit or loss	–	–112	–104	–216
Derivatives designated for hedging with positive fair value	–	481	–	481
Derivatives designated for hedging with negative fair value	–	–640	–	–640

Financial instruments by category – carrying and fair values

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 7 in the Annual Report 2023.

	Mar 31, 2024		Dec 31, 2023
MSEK	Carrying value	Fair value	Carrying value	Fair value
Long-term loan liabilities	25 077	25 305	22 005	21 983
Short-term loan liabilities	5 067	4 976	5 391	5 345
Total financial instruments by category	30 144	30 281	27 396	27 328

		Total amount	Available amount
Type	Currency	(million)	(million)	Maturity
EMTN private placement, fixed	USD	50	0	2024
EMTN private placement, fixed	USD	105	0	2024
EMTN private placement, floating	SEK	2 000	0	2024
EMTN Eurobond, 1.25 % fixed	EUR	300	0	2025
Schuldschein dual currency facility	EUR	53	0	2026
Term Facility	USD	600	0	2026
Revolving Credit Facility	EUR	1 029	1 029	2027
EMTN private placement, fixed	USD	40	0	2027
EMTN private placement, fixed	USD	60	0	2027
EMTN Eurobond, 4.25 % fixed	EUR UR	600	0	2027
Schuldschein dual currency facility	EUR	246	0	2028
EMTN Eurobond, 0.25 % fixed	EUR	350	0	2028
EMTN private placement, fixed	USD	75	0	2029
EMTN Eurobond, 4.375 % fixed	EUR	600	0	2029
EMTN Eurobond, 3.875 % fixed	EUR	500	0	2030
Commercial Paper (uncommitted)	SEK	5 000	3 950	n/a

For further information regarding Multicurrency Term Facilities refer to the section Capital employed and financing on page 12.

NOTE 10 Pledged assets

MSEK	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Pension balances, defined contribution plans1)	252	221	234
Total pledged assets	252	221	234

1) Refers to assets relating to insured pension plans excluding social benefits.

NOTE 11 Contingent liabilities

MSEK	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
Guarantees	–	–	–
Guarantees related to discontinued operations	17	16	16
Total contingent liabilities	17	16	16

For significant estimates and judgments, provisions and contingent liabilities, refer to note 4 and note 39 in the Annual Report 2023 as well as to the section Other significant events in this report.

Parent Company

STATEMENT OF INCOME

MSEK	Jan–Mar 2024	Jan–Mar 2023	Jan–Dec 2023
License fees and other income	606	488	2 667
Gross income	606	488	2 667
Administrative expenses	–345	–222	–1 533
Operating income	261	266	1 134
Financial income and expenses	–67	213	9 729
Income after financial items	194	479	10 863
Appropriations	–2	–268	–480
Income before taxes	192	211	10 383
Income tax	–1	2	–189
Net income for the period	191	213	10 194

BALANCE SHEET

MSEK	Mar 31, 2024	Mar 31, 2023	Dec 31, 2023
ASSETS
Non-current assets
Shares in subsidiaries	64 047	64 029	63 933
Shares in associated companies	112	112	112
Other non-interest-bearing non-current assets	353	399	331
Interest-bearing financial non-current assets	1 654	1 874	1 613
Total non-current assets	66 166	66 414	65 989
Current assets
Non-interest-bearing current assets	11 738	1 992	10 929
Other interest-bearing current assets	8 285	9 975	10 731
Liquid funds	32	2 841	2 118
Total current assets	20 055	14 808	23 778
TOTAL ASSETS	86 221	81 222	89 767
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Restricted equity	7 936	7 936	7 936
Non-restricted equity	48 913	40 700	48 724
Total shareholders' equity	56 849	48 636	56 660
Untaxed reserves	365	572	571
Long-term liabilities
Non-interest-bearing long-term liabilities/provisions	251	213	230
Interest-bearing long-term liabilities	5 850	12 951	9 042
Total long-term liabilities	6 101	13 164	9 272
Current liabilities
Non-interest-bearing current liabilities	3 205	2 810	2 003
Interest-bearing current liabilities	19 701	16 040	21 261
Total current liabilities	22 906	18 850	23 264
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	86 221	81 222	89 767

Financial information

FINANCIAL INFORMATION CALENDAR

July 30, 2024, approx. 1 p.m (CEST) Interim Report January–June 2024

November 6, 2024, 8 a.m (CET) Interim Report January–September 2024

For further information regarding Securitas' IR activities, refer to www.securitas.com

PRESENTATION OF THE INTERIM REPORT

Analysts and media are invited to participate in a telephone conference on May 8, 2024, at 9.30 a.m. (CEST) where President and CEO Magnus Ahlqvist and CFO Andreas Lindback will present the report and answer questions. The telephone conference will also be audio cast live via Securitas' website www.securitas.com

To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/en/investors/financial-reports-and-presentations/

A recorded version of the audio cast will be available at www.securitas.com/en/investors/financial-reports-and-presentations/ after the telephone conference.

For further information, please contact: Micaela Sjökvist, Vice President, Investor Relations + 46 76 116 7443

ABOUT SECURITAS

Securitas is a world-leading safety and security solutions partner that helps make your world a safer place. Almost nine decades of deep experience means we see what others miss. By leveraging technology in partnership with our clients, combined with an innovative, holistic approach, we're transforming the security industry. With approximately 341 000 employees in 44 markets, we see a different world and create sustainable value for our clients by protecting what matters most – their people and assets.

Group financial targets

Securitas has four financial targets:

• 8–10 percent technology and solutions annual average real sales growth
• 8 percent Group operating margin by year-end 2025, with a >10 percent long-term operating margin ambition
• A net debt to EBITDA ratio below 3.0x
• An operating cash flow of 70–80 percent of operating income before amortization

Securitas AB (publ.) P. O. Box 12307, SE-102 28 Stockholm, Sweden

Visiting address: Lindhagensplan 70

Telephone: + 46 10 470 30 00

Corporate registration number: 556302–7241

www.securitas.com