Securitas AB Interim Report January–March 2017
JANUARY–MARCH 2017<br/>• Total sales MSEK 22 491 (20 614)<br/>• Organic sales growth 4 percent (8)<br/>• Operating income before amortization MSEK 1 051 (996)<br/>• Operating margin 4.7 percent (4.8)<br/>• Earnings per share SEK 1.71 (1.59)<br/>• Free cash flow/net debt 0.12 (0.14)
COMMENTS FROM THE PRESIDENT AND CEO
Organic sales growth remained good at 4 percent in the first quarter on top of an extraordinarily high growth in 2016. Market dynamics in the US remain favorable and we continue to grow faster than the security market, and our ability to deliver complete electronic security solutions is gaining a growing interest in the US market. Our Ibero-American business segment also had strong organic sales growth in the first quarter; the market conditions in Spain improved and we are gaining market shares through our competence to deliver advanced technology and security solutions.
In Europe, total sales were basically on the same level as the first quarter last year, in spite of a few previously communicated large contract terminations and a reduction of the extra sales compared with the unusually high levels in 2016. The organic sales growth was negative in a few large countries, while many others continued to show good organic sales growth. We expect a gradual recovery of the portfolio business towards the end of 2017.
The operating margin was slightly below last year. It improved in North America while Europe has some operational overcapacity and negative leverage given the sharp organic sales growth decline in a few countries. Earnings per share improved by 8 percent with a real change of 3 percent in the first quarter.
We continue to deliver on our strategy with security solutions and electronic security continuing to grow at a high pace and is becoming a larger part of total Group sales.
As an important part of our strategy, Vision 2020, we are gradually increasing investments in digitizing our customers’ historical and real-time data in order to produce more predictive security. In combination with our security solutions and electronic security strategy, intelligent security will create further customer value, enhanced security, and strengthen our leadership in the global security market.
President and Chief Executive Officer
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on May 3, 2017 at 2:30 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 website. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
US: + 1 855 269 2605
Sweden: + 46 8 519 993 55
UK: + 44 203 194 0550
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts. A recorded version of the audio cast will be available at www.securitas.com/investors/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. We base our protective services on customer-specific needs through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety and corporate risk management. Everywhere from small stores to airports, our 335 000 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 3, 2017.