Loomis : full-year report January-December 2020 - presentation

Q4 - 2020

President & CEO Patrik Andersson

3 February, 2021

1

The Corona Pandemic

• Well-beingof our employees is our highest priority
• All Loomis' branches are running but not everyone at full capacity
• False rumours circulate that cash spreads the virus. The rumours have been denied by medical experts. More information is available atwww.loomis.com
• Reduction of all variable costs continue to be high priority
• Comprehensive restructuring programs in several European countries ongoing
• Postponement of capital expenditures
• Full year 2020 positive free cash flow of SEK 1,626 million (2019: SEK 1,310), despite the pandemic
• Loomis is taking advantage of the current situation. New customer contracts have been signed and Loomis market share is increasing
• Loomis' employees have done a fantastic job of maintaining high quality services despite a very challenging situation
• However, due to the ongoing corona pandemic Loomis believes the revenue target, of SEK 24 billion for 2021, will likely not be achieved. As the market conditions for 2021 are still uncertain, due to the pandemic, Loomis has therefore decided to remove the revenue target

2

Highlights Q4 2020

• Recent events
• • The rollout of the complete payment platform "Loomis Pay" continues. The reception has been positive and many new contracts have been signed.
  • Loomis Pay will be reported as a separate segment as of Q1, 2021
  • Safepoint expansion progressed well during the quarter and the single largest contract ever, of 1,700 units, was signed
  • In light of the continuing corona pandemic Loomis' assessment is that the operating margin target, of 12-14 percent for 2021, will likely not be achieved. As the market conditions for 2021 are still uncertain, due to the pandemic, Loomis has decided to remove the operating margin target
• Real growth -7 percent (5)
• • Acquisition in Finland of Automatia completed. Many new opportunities in the the European ATM market now become available
• Organic growth -9 percent (1)
• • Improvements in the fourth quarter slowed down, compared to Q3, due to increased spread of the virus
  • Positive growth in US compared to negative growth in Europe. The difference is due to the structure of the customer portfolios and the increased lockdowns in Europe
  • The quality of services continues to be on a high level despite a challenging situation.
• Operating margin excluding Loomis Pay 11.0 percent (13.0), including Loomis Pay 10.3 percent (13.0)

4.5

Billion SEK revenue

-9%

Organic growth

11.0

Percent operating margin,

excl. Loomis Pay

 US operations increased the operating margin by 1.7 percentage points despite the pandemic. European

3

operations were negatively affected by the increased covid related lockdowns

Highlights Q4 2020 cont.

• EPS SEK 1.37 (5.42)
• • Comprehensive restructuring programs ongoing in certain European markets, which short-term negatively affect EPS
• Operating cash flow 80 percent (48) of EBITA
• • Cash management programs continue to have positive effects. Capital expenditures remained on a conservative level
• Proposed dividend of SEK 6.00 (5.50) per share for 2020

4.5

Billion SEK revenue

-9%

Organic growth

11.0

Percent operating margin,

excl. Loomis Pay

4

Highlights

Operating margin development

1. Operating margin excluding Loomis Pay. Including Loomis Pay the operating margin was 4.8% in Q2-20, 11.0% in Q3-20 and 10.3% in Q4-20

5

Segments

Europe Q4 2020

• Real growth -14 percent (8)
• • Acquisition of Automatia. A Finnish ATM company with a strong market position
  • Integration of acquired businesses in France, Sweden and Finland progressing according to plan
• Organic growth -17 percent (1)
• • Negative temporary effects due to the pandemic
  • Several growth opportunities identified and pursued. Loomis is well positioned for growth when the economies recover
• Operating margin 6.1 percent (12.2)
• • Margin negatively affected by lower volumes
  • The cost-cutting initiatives implemented in Q2 and Q3 have successfully contributed to strong cost control
  • Integration processes in France, Sweden and Finland are expected to yield positive results in 2021
• Comprehensive restructuring programs ongoing in certain markets

52%

Share of Group's R12 revenue

6

Segments

USA Q4 2020

• Organic growth 0 percent (2)
• • Positive growth of 0.3 percent
  • Single largest SafePoint contract of 1,700 units signed. Total US installations exceed 35,500 units
  • SafePoint revenue continues to expand, 10 percent in Q4, and accounted for 18 percent (15) of total US revenue. Revenue from SafePoints is expected to increase further as the pandemic situation improves
  • High quality services have been maintained despite the challenges. The strategy to keep all branches open has attracted new customers
  • The trend with accelerating ATM revenue continues
• Operating margin 17.5 percent (15.8)
• • All time high operating margin for a fourth quarter
  • SafePoint expansion contributes to higher margin
  • Focus on a customer portfolio with high quality continues
  • Efficiency programs at branches continue to drive higher margins
  • Positive effects from activities aimed at reducing costs for medical7 expenses

48%

Share of Group's R12 revenue

Financials

Statement of income

Statement of income	2020	2019	2020	2019
SEK m	Fourth quarter	Fourth quarter	Full Year	Full Year

Revenue	4,537	5,342	18,813	21,044
Real growth, %	-7	5	-8	5
Organic growth, %	-9	1	-9	2
Operating income (EBITA)	467	693	1,775	2,601
Operating margin, %	10.3	13.0	9.4	12.4
Amortization	-28	-26	-109	-101
Acquisition related costs	-75	-57	-163	-101
Items affecting comparability	-114	-2	-200	23
Net financial items and monetary
loss	-47	-57	-208	-212
Income before taxes (EBT)	203	552	1,096	2,210
Income taxes	-100	-145	-380	-564
Net income	103	407	716	1,646
Net margin, %	2.3	7.6	3.8	7.8
Earnings per share, diluted
(SEK)	1.37	5.42	9.52	21.88

Q&A