Securitas : Presentation delårsrapport jan-sept 2024

Securitas

Interim Report Q3/9M 2024

Magnus Ahlqvist, President and CEO Andreas Lindback, CFO

Securitas

Interim Report January-September 2024

2

A strong quarter

• Organic sales growth of 5 percent (8) in the third quarter
• 6 percent (14) real sales growth in technology and solutions
• Record-highoperating margin of 7.5 percent (6.9) in the third quarter
• • Improved performance in Europe driven by security services
  • Securitas Ibero-America and Other also supported
• Price increases were slightly ahead of wage cost increases in the first nine months
• Operating cash flow was 115 percent (84) in the third quarter and net debt to EBITDA ratio was 2.7 (3.1)

Securitas

Interim Report January-September 2024

3

Strong improvement in the security services business line

	Real		% of		EBITA		% of Group
	sales growth, %	Group sales	margin, %	EBITA**
	Q3		Q3	Q3		Q3	Q3		Q3	Q3	Q3
Business line	2024		2023	2024		2023	2024		2023	2024	2023
Security services	4		7	66		66	6.6		5.4	58	51
Technology and solutions	6		14*	32		32	11.2		11.5	48	53
Risk mgmt services and
costs for Group functions	-		-	2		2	-		-	-6	-4
Group	5		8	100		100	7.5		6.9	100	100

• Good underlying performance within security services in Europe, driven primarily by active portfolio management and the airport business
• Healthy growth within technology and solutions with stable order entry and backlog within Technology
• The operating margin within T&S was slightly below last year due to negative cost development

*Excluding STANLEY Security real sales growth was 7 percent in the third quarter of 2023 **EBITA = operating income before amortization

Securitas

Interim Report January-September 2024

4

Securitas North America

Organic sales growth driven by the Technology business unit

Organic sales growth

Organic sales growth 3% (5) in Q3

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0%
Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2022				2023				2024

• Driven by good growth in the Technology business unit
• Organic sales growth in Guarding was supported
  by good growth in the contract portfolio and by extra sales, although hampered by the termination of a contract within the airport business as previously communicated
• Technology and solutions sales represented
  38 percent (36) of total sales in the third quarter, with a real sales growth of 7 percent (12)
• Client retention rate 87 percent (87)

Securitas

Interim Report January-September 2024

5

Securitas North America

A slight operating margin decline

10%

9%

8%

7%

6%

5%

4%

Operating margin

Q1		Q2		Q3		Q4
		2022		2023		2024

Operating margin 9.1% (9.2) in Q3

• Hampering effect from the Technology business unit due to negative cost development after the completed carve-out
• Weaker performance in Pinkerton partly due to major system upgrade, impacting the profitability negatively
• The operating margin in the Guarding business improved

Securitas

Interim Report January-September 2024

6

Securitas Europe

Organic sales growth mainly driven by price increases, the airport business

and technology and solutions

Organic sales growth

14%

13%

12%

11%

10%

9%

8%

7%

6%

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2022				2023				2024

Organic sales growth 7% (13) in Q3

• Organic sales growth was primarily driven by price increases including impacts from the hyperinflationary environment in Türkiye, strong sales within airport security and extra sales
• Technology and solutions also supported
• Technology and solutions sales represented 32 percent (32) of total sales in the third quarter, with a real sales growth of 4 percent (20)
• Client retention rate 92 percent (91)

Securitas

Interim Report January-September 2024

7

Securitas Europe

Strong operating margin improvement within security services

Operating margin

8%

7%

6%

5%

4%

3%

2%

Q1		Q2		Q3		Q4
		2022		2023		2024

Operating margin 7.7% (7.0) in Q3

• The improvement was driven by security services through active portfolio management, improved margins on new sales, a strong quarter within airport security and high-margin extra sales
• The operating margin in the technology business line was somewhat weaker in the quarter

Securitas

Interim Report January-September 2024

8

Securitas Ibero-America

Organic sales growth driven by technology and solutions and price increases

28%

24%

20%

16%

12%

8%

4%

Organic sales growth

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2022				2023				2024

Organic sales growth 5% (5) in Q3

• Organic sales growth driven by good technology and solutions sales and price increases
• Organic sales growth in Spain was 6 percent (3)
• Technology and solutions sales represented 36 percent (34) of total sales in the third quarter, with real sales growth of 10 percent (2)
• Client retention rate 92 percent (92)

Securitas

Interim Report January-September 2024

9

Securitas Ibero-America

The improved operating margin was driven by technology and solutions

Operating margin

Operating margin 7.2% (7.0) in Q3

8%

- The improvement was driven by technology

7%

and solutions

6%

5%

4%

3%

2%

Q1		Q2			Q3	Q4
		2022		2023			2024

Securitas

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Financials

Andreas Lindback

Chief Financial Officer