The full report (PDF, 448 kB) - Securitas

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Cash Handling Services Cash Handling Services January – March January – December MSEK 2005 2004 2004 Total sales 2,740 2,376 10,082 Organic sales growth, % 3 2 5 Operating income 162 123 714 Operating margin, % 5.9 5.2 7.1 Real change, % 37 -14 15 Operating capital employed 2,991 2,757 2,721 Operating capital employed as % of sales 26 28 24 Total capital employed 5,748 5,480 5,341 Return on capital employed, % 13 9 13 The Cash Handling Services division has returned to normal operations and is step by step increasing its performance. A joint management team for the USA and Europe was established during 2004. The organic sales growth has increased somewhat compared to first quarter 2004, from 2 to 3 percent. The new sales remain a challenge, especially in the USA and a strong focus is on business development. However, organic sales growth is expected to pick up during the year. The operating margin is improving as planned and further improvement is expected for the full year coming both from positive development in recent acquisitions, improved efficiency and price increases. The Cash Handling Services division established itself as a market leader in France through the acquisition of Valiance in October 2004. The integration of Valiance has been faster and more positive than expected. The operating margin in Valiance is expected to come close to the average during the course of the year. 8
CASH FLOW January – March 2005 Operating income before amortization amounted to MSEK 937 (885). Net investments in fixed assets after depreciation amounted to MSEK 3 (-36). Changes in accounts receivable amounted to MSEK -1 (-76) and changes in other operating capital employed amounted to MSEK -489 (-625). The negative outflow is mainly seasonal and was less than the previous year which was impacted by a non-recurring payment of MSEK 184 in the German cash handling business. Cash flow from operating activities amounted to MSEK 450 (148), equivalent to 48 percent (17) of operating income before amortization. Free cash flow was MSEK 266 (13), equivalent to 43 percent (2) of adjusted income. The full year free cash flow in percent of adjusted income is expected to be in line with the Group targets of 75 – 80 percent. CAPITAL EMPLOYED AND FINANCING As of March 31, 2005 The Group’s operating capital employed was MSEK 7,657 (7,093) corresponding to 12 percent (12) of sales adjusted for full-year sales of acquired units. Acquisitions have decreased operating capital employed by MSEK 14 during the first quarter 2005. The decrease is mainly due to a deferred tax liability, which has arisen as a consequence of the recognition of acquisition related intangible fixed assets in connection with the Belgacom acquisition. This deferred tax liability will not have any cash flow impact. Acquisitions increased consolidated goodwill by MSEK 366. Goodwill is no longer amortized. As per March 31, 2005 there was no indication of impairment and thus no impairment losses have been recognized. Adjusted for positive translation differences of MSEK 739, total goodwill for the Group amounted to MSEK 16,407 (15,302 as of December 31, 2004). Acquisitions increased acquisition related intangible fixed assets by MSEK 156 during the first quarter 2005. After amortization of MSEK 30 and positive translation differences of MSEK 24 acquisition related intangible fixed assets amounted to MSEK 583 (433 of December 31, 2004). The Group’s total capital employed was MSEK 24,647 (22,633 as of December 31, 2004). The translation of foreign capital employed to Swedish kronor increased the Group’s capital employed by MSEK 1,081 during the first quarter 2005. The return on capital employed was 17 percent (16). The Group’s net debt amounted to MSEK 11,709 (10,633 as of December 31, 2004). Acquisitions and acquisition related payments in the first quarter 2005 increased the Group’s net debt by MSEK 785, of which purchase payments accounted for MSEK 529, assumed net debt for MSEK -21, acquisition related restructuring costs paid for MSEK 4, payments from restructuring provisions for MSEK 3 and a payment of tax provided as part of the Burns aquisition for MSEK 270. The Group’s net debt increased by MSEK 589 during the first quarter 2005 due to the translation of net debt in foreign currency to Swedish kronor. The interest cover ratio amounted to 6.6 (5.3), and the free cash flow to net debt ratio amounted to 0.24 (0.14) Interest expense for the period on the outstanding convertible debenture loans amounted to MSEK 24 (24). Shareholders’ equity amounted to MSEK 12,938 (11,843 as of December 31, 2004). The translation of foreign assets and liabilities to Swedish kronor increased shareholders’ equity by MSEK 492 during the first quarter 2005. The total number of outstanding shares amounted to 365,058,897 as of March 31, 2005. The total number of shares after full conversion of all outstanding convertible debenture loans is 382,408,810. 9
Page 1 and 2: Securitas AB Interim Report January
Page 3 and 4: Securitas’ consolidated financial
Page 5 and 6: Security Services Europe Security S
Page 7: Direct Direct* January - March Janu
Page 11 and 12: and the enterprise value of the acq
Page 13 and 14: Income MSEK IFRS Jan-Mar 2005 IFRS
Page 15 and 16: Primary segments and divisional ove
Page 17 and 18: Specification of currency changes,

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