Loomis Ab · OMXSTO:LOOMIS
Loomis Ab — H1 2009 Earnings Presentation
12 slides from Loomis Ab's earnings presentation, Jul 31, 2009
Slide 1: January – June 2009
January – June 2009 President and CEO: Lars Blecko Stockholm July 31, 2009
Slide 2: Highlights H1 2009
Highlights H1 2009 Challenging market development in our key countries. Organic revenue decreased -2%. Major cost reductions implemented to offset revenue decline. Additional measures under way. Increased operating margin 5.9 percent (5.7). Significant positive FX effects. Continued stro
Slide 3: Organic revenue decline - components
Organic revenue decline - components Consolidated H1 revenue with an organic negative growth -2%. => Europe -3% negative organic growth. => US -1% negative organic growth. Both Europe and US include several factors: => Recession driven factors => Fuel fee, contract losses and fewer working days
Slide 4: Financial highlights – income statement
Financial highlights – income statement Income statement (MSEK) Apr-Jun Apr-Jun Variance Jan-Jun Jan-Jun Variance 2009 2008 % 2009 2008 % Revenue 3 018 2 669 13% 6 205 5 316 17% Organic revenue growth, % -4% 4% -2% 3% Operating income before amortization (EBITA) 183 163 12% 368 303 21% Operating mar
Slide 5: Impact by recession – June 2009
Impact by recession – June 2009 Postive effects: Present increase in proportion of cash purchases ++ lower staff turnover +++ increased outsourcing from banks, focus on core - Negative effects: increased risk of robbery +++ reduced consumtion +++ increased risk for bad debt + + = correct
Slide 6: Financial highlights – Operating margin development
Financial highlights – Operating margin development 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 Quarters Rolling 12 Seasonality, H2 earnings higher than H1
Slide 7: Segment - Europe
Segment - Europe Sales development MSEK MSEK 7 800 2 200 Negative organic revenue development of 7 600 2 000 7 400 -3 percent, mainly due to recession and 7 200 1 800 Rolling 12 contract losses / fewer invoicing days. Quarters 7 000 1 600 6 800 6 600 1 400 6 400 Many markets not affected by rece
Slide 8: Segment - USA
Segment - USA Sales development MUSD MUSD 700 170 Negative organic revenue development 660 160 of -1 percent, greater decline in Q2. Rolling 12 Quarters 620 150 580 140 Cost structure was not reduced with 540 130 decline in revenue. 500 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 Group CF
Slide 9: Financial highlights – Free cash flow
Financial highlights – Free cash flow Free cash flow (MSEK) Apr-Jun Apr-Jun Jan-Jun Jan-Jun 2009 2008 2009 2008 Operating income before amortization 183 163 368 303 Depreciation 196 162 393 319 Change in accounts receivable 0 -33 15 -110 DSO 40 45 40 45 Change in other operating capital employe 24 6
Slide 10: Financial highlights – net debt
Financial highlights – net debt Net debt development (MSEK) Net debt December 31. 2008 -2 375 Free cash flow 116 Acquisitions and divestitures -9 IAC payments -3 Dividend -164 Change in net debt -60 FX translation -12 Net debt June, 2009 -2 447 - Covenant of 2,75 Net debt / EBITDA in credit facility
Slide 11: Wrap up
Wrap up Challenging market development. Worrying negative trend started in late H1 in the US. Continued focus on profitability through increased operational efficiency, i.e. price, branch and risk. Europe succesfully implemented cost reductions. US cost structure was not reduced to match decli
Slide 12: Managing Cash in Society
Managing Cash in Society