The strategy is paying off while we continue to manage the effects from Covid
Sharpened the business
Business transformation progressing according to plan
Positive developments in our solutions and electronic security business
Organic sales growth 8 percent (-4)
Commercial activity picking up across the Group
Operating margin 5.6 percent (4.0), with improvements in all business segments
Continued support from the cost-savings program initiated during 2020
Continued government grants and support relating mostly to temporary unemployment
Normalized provisioning levels
Price and wage balance on par
Profitability improvement through reviewing the entire contract portfolio to ensure satisfactory margins
Good operating cash flow
Securitas
3
Interim Report January-June 2021
Acquisition of leading electronic security company in Germany
Protection One, the German leader specializing in remote tech-driven security solutions and electronic security
In line with the Group's strategy of doubling security solutions and electronic security sales by 2023
The purchase price app. MEUR 72 (MSEK 735) on a debt-free basis
Sales in 2020 more than MEUR 33 (MSEK 337), over 90 percent RMR
230 employees, presence in 12 locations
Operation center in Meerbusch with 24/7 real-time intervention
High-performanceand tailor-made installation offering, full scope of electronic security services across 10 300 object for 7 000 clients, mainly SME's
Acquisition-relatedcosts expected to MSEK 45, to be recognized 2021-2023
Accretive to EPS as of 2022
Subject to approval from competition authorities, expected finalization in Q3 2021
Securitas
4
Interim Report January-June 2021
Security Services North America
Recovering growth across the business segment
Organic sales growth
9%
7%
5%
3%
1%
-1%
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2019
2020
2021
-3%
Organic sales growth 8% (-2) in Q2, 5% (0) in H1
Gradual improvement in primarily Electronic Security and Critical Infrastructure Services
Stable organic sales growth in Guarding with increased portfolio sales offsetting declining corona-related extra sales
Client retention was 90% (92)
Security solutions and electronic security represented 18% (18) of total sales in H1
Securitas
5
Interim Report January-June 2021
Security Services North America
Strong performance in the quarter
Operating margin
8%
7%
6%
5%
4%
3%
2%
1%
0%
Q1
Q2
Q3
Q4
2019 2020 2021
Operating margin 7.1% (5.6) in Q2, 6.5% (5.4) in H1
Improvement driven from all business units
Stable operating margin in Guarding
Installations business within Electronic Security has gradually recovered
The acquisition of FE Moran Security Solutions contributed positively
Critical Infrastructure Services improved following eased restrictions and lock- downs
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Securitas AB published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 12:08:14 UTC.
Securitas AB is a Sweden-based provider of security solutions, including specialized guarding, aviation security services and international security solutions, among others. It operates through five business segments. Security Services North America business segment offers security services in the United States, Canada and Mexico. Security Services Europe offers security services in 27 countries in Europe. Mobile and Monitoring provides mobile services, such as beat patrol and call-out services, and monitoring services, such as alarm surveillance for homes, and small and medium-sized businesses. Security Services Ibero-America provides security services in Latin America, Portugal and Spain. New Markets provides security services in the Middle East, Asia and Africa. The Company's subsidiaries include Selectron, Rentsec, Vamsa, Tehnomobil, Central de Alarmas Adler, Automatic Alarm, Suddeutsche Bewachung and Johnson & Thompson.
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