· Total sales MSEK 23 715 (21 031)
· Organic sales growth 5 percent (7)
· Operating income before amortization MSEK 1 241 (1 133)
· Operating margin 5.2 percent (5.4)
· Earnings per share SEK 1.92 (1.83)
· Total sales MSEK 88 162 (80 860)
· Organic sales growth 7 percent (5)
· Operating income before amortization MSEK 4 554 (4 089)
· Operating margin 5.2 percent (5.1)
· Earnings per share SEK 7.24 (6.67)
· Free cash flow/net debt 0.13 (0.22)
· Proposed dividend SEK 3.75 (3.50)
COMMENTS FROM THE PRESIDENT AND CEO
We are proud to have delivered another record year for Securitas. In 2016, with organic sales growth of 7 percent (5), we grew faster than the security market, we improved the operating margin and earnings per share grew 9 percent adjusted for changes in exchanges rates. We are also delivering on our strategy. Security solutions and electronic security grew 56 percent (38) including acquisitions and 22 percent (35) organically, representing BSEK 14.1 (9.3) or 16.0 percent (11.5) of total sales in 2016. We believe that we can continue to increase our sales of security solutions and electronic security at a high pace also in the coming years and make this a substantial part of the Group\’s total sales.
Market dynamics in the US remain favorable and we are confident that our acquisition of Diebold\’s Electronic Security business will allow us to further advance our market position in the US security market. During the past year the European market has been characterized by increased social tension and higher levels of security needs. These extra needs have proven to be short-term and volatile in nature and are expected to continue to reduce in the coming quarters. While this, in combination with a few large contract terminations and historically high comparatives, will reverse the positive organic sales growth trend in Security Services Europe in the coming quarters, we expect it to recover during the second half of 2017.
The net debt to EBITDA ratio increased to 2.4 (1.9) in 2016 mainly as a result of the acquisitions in electronic security. Cash flow was weaker than expected in the last quarter for which we have taken measures to restore in 2017.
Our investments in protective services during recent years have resonated very well in the market, and our efforts to optimize customers\’ security spend are allowing us to grow faster than the security markets in the US and Europe as well as in many of the Ibero-American countries. As an important part of our strategy Vision 2020, we are also investing in digitizing our customers\’ historical and real-time data in order to gradually produce more predictive security. In combination with our security solutions and electronic security strategy, predictive security will create further customer value, enhanced security, and strengthen our leadership in the global security market.
President and Chief Executive Officer
PRESENTATION OF THE FULL YEAR REPORT
Analysts and media are invited to participate in a telephone conference on February 7, 2017 at 2:30 p.m. (CET) where Securitas CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas website. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
US: + 1 855 269 2605 Sweden:
+ 46 8 519 993 55 UK:
+ 44 203 194 0550
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts. A recorded version of the audio cast will be available at www.securitas.com/investors/webcasts after the telephone conference.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, + 46 10 470 3011
Securitas is a global knowledge leader in security. We base our security solutions on customer-specific needs through different combinations of on-site, mobile and remote guarding, electronic security, fire and safety and corporate risk management. Everywhere from small stores to airports, our 330 000 employees are making a difference.
Securitas AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 1.00 p.m. (CET) on Tuesday, February 7, 2017.
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