Second quarter - 2021

President & CEO

Patrik Andersson

July 23, 2021

Disclaimer "forward looking statements"

  • These presentations contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures and future cash sources and requirements, that involve known and unknown risks, uncertainties and other factors that may cause Loomis or its businesses' actual results of operations, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward- looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," or "continue," or the negative of those terms or other comparable terminology.
  • By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the forward-looking statements contained in this presentation, possibly to a material degree. All forward- looking statements made in this presentation are based on information presently available to management and Loomis assumes no obligation to update any forward-looking statements, unless obligated to do so under applicable law or regulation.

Cash is the dominant method of payment

  • Inclusion
    • Cash is important from a social perspective as many households are unbanked or underbanked globally
    • Cash is used for more than 70 percent of the point-of-sale and person-to-person retail transactions within the EU according to an ECB report from December 2020
  • Cash in circulation continues to grow
    • Significant growth in 2020 both in the EU and in the US
  • Market development
    • As countries continue to open up from the pandemic a short-term significant increase in volumes is expected. Long-term stable growth is forecasted
    • However, a structural decline is visible in the Nordic markets but with limited impact on the Loomis group
    • ECB expresses strong support for cash and specifies strategic targets
  • Pandemic, lockdowns and effect on Loomis
    • The lockdowns within the EU affected Loomis revenue negatively during 2020 and Q1, 2021 but the recovery was strong in Q2, 2021. The organic growth improvement in Europe during the last quarter was 14 percent

The recovery in the US market is ahead of the recovery in Europe. Loomis reported 20 percent organic growth in Q2, 2021. Expansion of revenue for SafePoints and ATMs are the main drivers

Highlights Q2 2021

  • Recent events
    • Acquisition of the cash handling business of the Swiss Post closed in May. The business complements well Loomis Switzerland within CIT, CMS and SafePoint
    • Transition to environmental friendly fleet progressing. Order of additional 20 electric trucks in the US
  • Real growth 23 percent (-18)
    • Automatia in Finland, acquired in Q4-20, the acquisition made in Sweden, in Q2-20, and the recent acquisition in Switzerland are the main contributing factors to the acquired growth
  • Organic growth 17 percent (-20)
    • Overall, steady improvements month by month. Volumes are expected to improve further as societies continue to open up
    • Positive developments both in the US and the European market
  • Operating margin excluding Loomis Pay 9.6 percent (5.1)
    • Margin expansion for the European operations and continued strong margins for the US business
  • Operating cash flow 68 percent (248) of EBITA

4.8

Billion SEK revenue

23%

Real growth

9.6

Percent operating margin,

excl. Loomis Pay

  • Build-upof accounts receivable, in relation to EBITA, due to substantial organic growth

Operating margin development

Operating margin development 1)

14%

12%

12,7%

13,4%

13,0%

12,0%

11,7%

11,3%

11,5%

10%

10,5%

10,6%

11,0%

11,0%

9,6%

8%

8,7%

6%

4%

5,1%

2%

0%

Q1-18

Q2-18

Q3-18

Q4-18

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

Q3-20

Q4-20

Q1-21

Q2-21

  1. Operating margin excluding Loomis Pay.

5

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Loomis AB published this content on 23 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 July 2021 06:27:04 UTC.