Securitas : Presentation full year report Jan-Dec 2021

Full Year Report Q4/FY 2021

Magnus Ahlqvist, President and CEO

Andreas Lindback, CFO

Securitas	2
Full Year Report January-December 2021

Strong margin improvement and transformative tech acquisition

• Record level operating result and highest operating margin in more than a decade
• • Our strategy, investments and actions are paying off and resulting in increased profitability in all business segments
• Modernized and more efficient business operations - three programs closed end of 2021
• • Cost savings targets achieved in key areas and good benefit realization in North America towards the end of the year. Stronger foundation to enhance client value and drive operating margin improvement
• Transformative acquisition of Stanley Security announced - positioning Securitas as a leading security solutions partner

• Over 50 percent of the profit contribution will be generated from high-margin electronic security going forward

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Full Year Report January-December 2021

Ending the year with good momentum

• Organic sales growth 4 percent (1) and 10 percent (4) real sales growth in solutions and electronic security in Q4
• • Strong client value proposition and commercial momentum with gradual recovery of C-19 portfolio reductions. New sales with improved margins.
• Operating margin 5.9 percent (5.3) in Q4, with improvements throughout the Group
• • Profitability focus and active portfolio management strengthened all business segments
  • The cost-savings program initiated during 2020 and lower levels of provisioning compared to 2020 supported as well
  • Materially reduced government grants and support in the fourth quarter
  • Price and wage balance on par - well positioned for 2022
  • Proposed dividend SEK 4.40 (4.00)
• Strong operating cash flow of 93 percent in 2021

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Interim Report January-December 2021

Security Services North America

Reduced corona-related extra sales, strong profitable growth of

new sales

Organic sales growth

9%

7%

5%

3%

1%
-1%	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2019				2020				2021
-3%

Organic sales growth 0% (4) in Q4, 3% (2) in FY

• Strong growth in new sales and price increases achieved, negative impact due to lower corona-related extra sales in Guarding
• Gradual improvement in mainly Electronic Security and Critical Infrastructure Services
• Client retention 86% (91)
• Security Solutions and Electronic Security represented 18% (17) of total sales in FY
• Previously communicated contract loss of healthcare contract as of December 2, 2021 will have full impact in Q1 2022

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Full Year Report January-December 2021

Security Services North America

Continued strong operating margin trajectory

Operating margin

8%

7%

6%

5%

4%

3%

2%

1%

0%

Q1

Q2

Q3

Q4

2019 2020 2021

Operating margin 7.1% (6.4) in Q4, 6.8% (5.9) in FY

• Improved operating margin in Guarding despite lower corona- related extra sales
• Positive impact from SSNA business transformation in Q4
• Electronic Security improved, supported by the acquisition of FE Moran Security Solutions
• Strong performance in Pinkerton
• Last year impacted by a higher level of provisioning