LEADINGTHE DEVLOPMENT OF THE SECURITY …Security Solutions and Electronic Security Double digit...
Transcript of LEADINGTHE DEVLOPMENT OF THE SECURITY …Security Solutions and Electronic Security Double digit...
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LEADING THE DEVLOPMENT OF THE SECURITY
INDUSTRY
Annual General Meeting, May 6, 2019
Magnus AhlqvistPresident and CEO
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Strong growth throughout the year
• Good organic sales growth 6% (5)
• Wage cost increases on par with price increases
• Improved operating margin 5.2% (5.1)
• EPS (before IAC) 12% real change
• Two major transformation programs initiated
• Cash flow generation unsatisfactory
2018 – a very strong year
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Sales and organic sales growth 2013–2018 Reaching sales of 100 BSEK in 2018
65 700
70 217
80 860
88 162
92 197
101 467
0
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2
3
4
5
6
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8
60 000
65 000
70 000
75 000
80 000
85 000
90 000
95 000
100 000
105 000
2013 2014 2015 2016 2017 2018
%MSEK Sales and organic sales growth
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Operating income and margin 2013–2018Strong increase
3 329
3 505
4 089
4 554
4 697
5 304
4,0
4,2
4,4
4,6
4,8
5,0
5,2
5,4
2 800
3 200
3 600
4 000
4 400
4 800
5 200
5 600
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MSEK Operating income / Operating margin
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Earnings per share 2013–2018A solid sustainable development
5,07
5,67
6,67
7,24
7,87
9,17
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SEK / Share EPS before IAC
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Security Solutions and Electronic Security Double digit growth in all business segments
Security Solutions and Electronic Security
Real sales growth 21% (19)
• Sales BSEK 20.4 (16.7)
• A good number of mid-sized and strategically important solution contracts started, delivering a range of protective services
• Several electronic security companies acquired to enhance national platforms, e.g. in France andin the Netherlands
• The acquisition of the division Kratos Public Safety and Security in the US was completed in June
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0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Q12016
Q2 Q3 Q4 Q12017
Q2 Q3 Q4 Q12018
Q2 Q3 Q4
7
Security Services North America Good momentum both in sales growth and operating margin
Operating margin per quarter
Organic sales growth 6% (5)
• Good portfolio momentum and solid client retention 91% (91)
• Security solutions and electronic security represented 17% (15) of total sales
Operating margin 6.1% (5.9)
• The operating margin was supported by toplineleverage, solid performance in risk management and good momentum of security solutions sales => strong improvement of the margin
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Organic sales growth 4% (2)
• Strong client retention 93% (91)
• Almost all countries supported the development, especially Belgium, Germany and the guarding business in Turkey
• Lower refugee sales, almost 1% negative impact
• Security solutions and electronic security represented 21% (20) of total sales
Operating margin 5.6% (5.6)
• As planned, the cost savings program initiated in Q3 had a positive impact in Q4
8
Security Services Europe Strong client retention and improved cost control
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Q12016
Q2 Q3 Q4 Q12017
Q2 Q3 Q4 Q12018
Q2 Q3 Q4
Operating margin per quarter
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9
Organic sales growth 12% (13)
• Strong client retention 92% (91)
• Security solutions and electronic security represented 27% (24) of total sales
Operating margin 4.5% (4.2)
• Weak Q4 due to development in Argentina
• Spain showed strong performance throughout the year
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Q12016
Q2 Q3 Q4 Q12017
Q2 Q3 Q4 Q12018
Q2 Q3 Q4
Operating margin per quarter
Security Services Ibero-America Strong sales growth and solid operating margin
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Strategy
10
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An important role in society and great opportunities
Good growth prospects
Economic prosperity
Increasing emphasis on security and safety
Technology Data and information
Innovation opportunity
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370,000employees
#2NORTH
AMERICA
#1EUROPE
#2LATIN
AMERICA
GROWINGPRESENCE
AMEA
58markets
#1security services
provider
The power of presenceWe have leading market positions
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• Values and Ethics code
• Integrity line
• Sustainability reporting, GRI
• UN Global compact
OUR WAY OF WORKING
• Securitas Toolbox
Our strength is built on oursecurity officers and culture
OUR VALUES
• Integrity
• Vigilance
• Helpfulness
ETHICS AND COMPLIANCE
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We have a strong, loyal client basewith significant growth opportunities
150,000*clients
140Global clients
91%retention rate
* Excluding monitoring only clients
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Since 2013, we have extended our offering from on-site guarding to protective services…
On-site guarding
Mobile guarding
Remoteguarding
Electronic security
Fire andsafety
Corporate risk
management
PROTECTIVE SERVICES
0%
4%
8%
12%
16%
20%
24%
2013 2014 2015 2016 2017 2018
Sales of security solutions and electronic security(share of Group total sales)
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… with a special focus on developing electronic security
Combining protective services in a packaged offering = security solutions
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Client value proposition
Protective services leadership
Modernization and efficiency
Key focus areas right now
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We have a strong platform for future growth
2020 and beyond2015 onwards1990 onwards
Leader in Intelligent Services Data-driven innovation
Leader in Protective servicesIntegration of solutions
Leader in Security servicesGuarding and security capability
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We now add our first intelligent products to our portfolio of security services
A first step; leveraging our size and access to relevant data
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20
Leading the transformation
2018 was a very good year and we now have a strong platform for future long-term growth.
A future where Securitas continues to lead the transformation of the security industry.
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THANK YOU