Securitas AB Interim Report January–March 2014

 JANUARY–MARCH 2014
• Total sales MSEK 16 111 (15 860)
• Organic sales growth 2 percent (0)
• Operating income before amortization MSEK 738 (749)
• Operating margin 4.6 percent (4.7)
• Earnings per share SEK 1.13 (1.04)
• Free cash flow/net debt 0.20 (0.20)

COMMENTS FROM THE PRESIDENT AND CEO
Organic sales growth was 2 percent in the first quarter. Our organic sales growth in the US shows signs of recovery. In Europe the French security market is no longer decreasing, while the Spanish market continues to decline. Latin America continues to show strong organic sales growth.

Net income continues to improve
The operating income was on the same level as the preceding year, while the earnings per share improved with 9 percent. The operating margin in Security Services North America and Security Services Europe was on the same level as in the first quarter last year, while Security Services Ibero-America was burdened by the severe market conditions in Spain. The additional labor related taxes imposed by the Spanish Government in December last year have not been possible to pass on to the market, and in addition price concessions have been required in some annual contract renewals in order to protect the portfolio. Corrective actions are continuously taken to adapt to the reduced sales.

Sales of security solutions and technology gradually increasing
In 2012, 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 the run rate in the first quarter of 2014 was 8.5 percent.

Changing market dynamics creating an opportunity for growth
Due to current market dynamics and a gradual increase of the use of technology in security solutions, the security market in mature markets is no longer expected to grow 1 to 2 percent faster than GDP as it has historically, but rather at the same pace as GDP. In the future, this trend could be improved through increased outsourcing of currently insourced traditional guarding activities and by allowing the private security industry to take over services performed by public authorities and governments.

The degree to which technology is being integrated into security solutions varies from country to country in Securitas’ markets. However, as the pace accelerates, we are confident that we will be able to gain markets shares by having a stronger and more cost-efficient offering than many traditional guarding companies. We have already seen proof of this in markets where we are well equipped to offer security solutions, where we will be able to grow faster than the security market average.

Alf Göransson
President and Chief Executive Officer

FINANCIAL INFORMATION

Presentation of the interim report

Analysts and media are invited to participate in a telephone conference on May 5, 2014 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: + 1 855 753 2230
Sweden: + 46 (0) 8 505 564 74
United Kingdom: + 44 (0) 203 364 5374

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.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, + 46 10 470 3011

Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer’s needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 310,000 employees are making a difference.

Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer’s needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 310,000 employees are making a difference.

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 (CET) on May 5, 2014.



This information was brought to you by Cision http://news.cision.com
http://news.cision.com/securitas/r/securitas-ab-interim-report-january-march-2014,c9579068

The following files are available for download:


Securitas_en