Full-Year Report. January December 2021

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Full-Year Report

January – December 2021

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2

Loomis Full-Year Report January – December 2021

• Revenue SEK 5,325 m (4,537). Real growth 15 percent (–7) of which organic growth 11 percent (–9).

• Operating income (EBITA)

¹⁾

SEK 594 million (467) and operating margin 11.2 percent (10.3). Excluding Loomis Pay, the operating margin amounted to 12.1 percent (11.0)

• Income before tax SEK 500 million (203) and income after tax SEK 359 million (103).

• Earnings per share before and after dilution SEK 4.82 (1.37).

• Cash flow from operating activities

²⁾

SEK 433 million (362), equivalent to 73 percent (78) of operating income (EBITA).

• The ongoing coronavirus pandemic had, overall, less negative impact on revenue and operating income compared to the fourth quarter 2020.

• During the period 825,000 own shares were repur- chased.

• Revenue SEK 19,723 m (18,813). Real growth 10 percent (–8) of which organic growth 6 percent (–9).

• Operating income (EBITA)

¹⁾

SEK 1,961 million (1,775) and operating margin 9.9 percent (9.4) Excluding Loomis Pay, the operating margin amounted to 10.7 percent (9.8)

• Income before tax SEK 1,545 million (1,096) and income after tax SEK 1,104 million (716).

• Earnings per share before dilution SEK 14.74 (9.52) and after dilution SEK 14.73 (9.52).

• Cash flow from operating activities

²⁾

SEK 1,620 million (2,218), equivalent to 83 percent (125) of operating income (EBITA).

• The ongoing coronavirus pandemic had, during the first quarter this year, a negative impact on revenue and operating income compared to the first quarter 2020. During the remainder of 2021, the overall impact on revenue and operating margin, from the pandemic, was lower compared to the corresponding quarters 2020.

• Dividend, for 2020, of SEK 6.00 per share (5.50) was distributed during the second quarter. The Board of Directors proposes a dividend, for 2021, of SEK 8.50 per share (6.00).

• During 2021 a total of 1,379,985 own shares were repurchased.

Q4 2021

KEY RATIOS

2021 2020 2021 2020

SEK m Quarter 4 Quarter 4 Change (%) Twelve

months Twelve

months Change (%)

Revenue 5,325 4,537 17.4 19,723 18,813 4.8

Of which:

Organic growth 474 –475 10.5 1,045 –1,968 5.6

Acquisitions and divestments 204 82 4.5 815 326 4.3

Exchange rate effects 111 –412 2.4 –950 –589 –5.1

Total growth 788 –805 17.4 909 –2,231 4.8

Operating income (EBITA)¹⁾ 594 467 1,961 1,775

Operating margin (EBITA), %¹⁾ 11.2 10.3 9.9 9.4

Operating income (EBIT) 547 250 1,738 1,304

Earnings before tax 500 203 1,545 1,096

Proﬁt for the period 359 103 1,104 716

Earnings per share before dilution, SEK 4.82 1.37 14.74 9.52

Tax rate, % 28 49 28 35

Cash flow from operating activities²⁾ 433 362 1,620 2,218

Cash flow from operating activities as % of operating income (EBITA)²⁾ 73 78 83 125

1) Earnings Before Interest, Taxes and Amortization of acquisition-related intangible ﬁxed assets, acquisition-related costs and revenue, and items affecting comparability.

2) Cash flow from operating activities excluding the effects of IFRS 16. See also under “Alternative performance measures” on pages 22–23 and “Deﬁnitions” on page 24.

An explanation and reconciliation of alternative performance measures can be found on pages 22–23 of this report.

Full year 2021

This is a translation of the Swedish original report. In the event of differences between the English translation and the Swedish original report, the Swedish original report shall prevail.

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The positive trend continues We are optimistic about 2022. Throughout 2021 the pandemic had a negative impact on travel and tourism, and we anticipate good growth opportunities when the situation in society is further normalized. Expe- riences from the pandemic are, in many countries, driving outsourcing of cash management services (CMS) and ATM services to providers such as Loomis. Our customers can reduce their costs and their risks if Loomis performs these ser vices instead. In the USA SafePoint has shown good organic growth for a long time and now ambitious activities are under way in the European market to increase SafePoint sales revenue.

Despite the fact that the Omicron variant caused another surge in the spread in the fourth quarter, our business continues to develop in a positive direction. In the fourth quarter revenue within our US operations exceeded the level in quarter 4 2019 by 14 percent and in Europe, organic revenue amounted to 90 percent of the 2019 level.

The corresponding figure for Europe was 85 percent for the third quarter 2021. It’s also gratifying that development was the strongest in December – both in the USA and in Europe.

Significantly improved growth and higher operating margin

In the fourth quarter the Group’s real growth amounted to 15 percent (–7), of which organic growth was 11 percent (–9).

The Group’s operating margin (EBITA %) amounted to 11.2 percent (10.3) in the

fourth quarter. As expected, Loomis Pay negatively impacted income, and excluding Loomis Pay, the operating margin amounted to 12.1 percent (11.0).

The positive growth in our US operations continues, with revenue growth in the fourth quarter of just over 13 percent in local currency. The growth is above all driven by continued good development of SafePoint. Revenue from SafePoint increased during the quarter by just over 18 percent.

The operating margin in USA in the fourth quarter amounted to 14.2 percent (17.5).

Similar to the third quarter, the operating margin was lower than in previous quarters due to the structural challenges that currently exist in the US labor market. The amount of overtime has therefore tempo- rarily increased as maintaining a high level of service for the customers is a priority.

Segment Europe was hit hard by the exten- sive lock downs that have taken place since the pandemic broke out. After the summer of 2021 the situation started to improve and this positive trend continued in the fourth quarter. The steps Loomis took early on to compensate for the temporary reduction in volumes continued to yield clear results. The operating margin for the European operations in the fourth quarter exceeded the operating margin for quarter 3, which is normally the strongest quarter of the year in Europe. The operating margin in the fourth quarter in Europe was 11.9 percent, an improvement of 5.8 percentage points compared to quarter 4 2020.

Our ambitious Loomis Pay initiative is making progress. The goal is to rollout Loomis Pay in additional markets during 2022 and for Loomis Pay to be the most complete payment option in the market.

We are also looking forward to meeting all of our stakeholders at the upcoming Capital Markets Day on 23 March.

Patrik Andersson President and CEO

Comments by the President and CEO

Operating margin (EBITA), %

0 2 4 6 8 10 12 14

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

2019 2020 2021

Operating margin (EBITA) per quarter Operating margin (EBITA) rolling 12 months

Revenue, SEK billion

0 6 12 18 24

2021 2020 2019 2018 2017 2016 2015

Annual dividend, %

0 20 40 60

2021*

2020 2019 2018 2017 2016

* Calculated based on the dividend proposal for the 2022 AGM.

.

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4

SEGMENT EUROPE

2021 2020 2021 2020

SEK m Quarter 4 Quarter 4 Full year Full year

Revenue 2,766 2,368 10,178 9,788

Sales growth, % 16.8 –19.5 3.9 –14.9

of which organic growth, % 8.3 –16.6 –0.5 –15.4

of which acquisitions / divestments, % 8.5 2.4 8.0 2.9

of which exchange rate effects, % 0.0 –5.3 –3.6 –2.5

Real growth, % 16.8 –14.2 7.5 –12.4

Operating income (EBITA) 330 144 846 588

Operating margin, % 11.9 6.1 8.3 6.0

Number of full-time employees 14,000 13,900 13,900 13,900

SEGMENT USA

2021 2020 2021 2020

Revenue 2,587 2,184 9,643 9,098

Sales growth, % 18.5 –9.9 6.0 –5.6

of which organic growth, % 13.2 0.3 12.3 –2.2

of which acquisitions / divestments, % 0.1 0.3 0.3 –0.2

of which exchange rate effects, % 5.1 –10.5 –6.6 –3.2

Real growth, % 13.4 0.6 12.6 –2.4

Operating income (EBITA) 367 382 1,452 1,425

Operating margin, % 14.2 17.5 15.1 15.7

Number of full-time employees 10,200 9,000 9,300 9,100

SEGMENT LOOMIS PAY

2021 2020 2021 2020

Revenue 5 4 11 7

Sales growth, % 26.6 n/a 65.8 n/a

of which organic growth, % 27.3 n/a 23.4 n/a

of which acquisitions / divestments, % 0.0 n/a 44.0 n/a

of which exchange rate effects, % –0.8 n/a –1.5 n/a

Real growth, % 27.3 n/a 67.3 n/a

Operating income (EBITA) –48 –30 –149 –68

Operating margin, % n/a n/a n/a n/a

The segments

Revenue, operating income and number of full-time employees

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Revenue and earnings

Quarter 4 2021

Group – revenue

Revenue for the quarter amounted to SEK 5,325 million (4,537).

Real growth was 15 percent (–7), of which organic growth was 11 percent (–9). Revenues were primarely positively affected by higher sales in both Europe and the USA, and by acquisitions in Finland and Switzerland.

Segment Europe – revenue

Revenue for the quarter amounted to SEK 2,766 million (2,368).

Real growth, which amounted to 17 percent (–14), was positively affected by revenue attributable to the acquisitions of Automatia in Finland in December 2020 and of the cash handling operations of Swiss Post in May 2021. Organic growth was 8 percent (–17). Despite the spread of the Omicron variant of the virus, organic revenue growth increased during the quarter. Volumes were negatively impacted to a greater degree in the fourth quarter of 2020 when stricter restrictions were introduced in large parts of Europe.

Segment USA – revenue

Revenue amounted to SEK 2,587 million (2,184) and real growth was 13 percent (1). Organic growth amounted to 13 percent (0).

Operations in the US continued to show good growth. All offerings grew, with volume increases in particular for SafePoint and ATM services. Revenue for the quarter from SafePoint accounted for around 19 percent (18) of the segment’s total revenue. Reve- nue from CMS during the quarter amounted to 34 percent (34) of the segment’s total revenue.

Segment Loomis Pay – revenue

Revenue amounted to SEK 5 million (4). In the fourth quarter Loomis Pay was also launched in the Norwegian market through an agreement with Aera. For additional information, see page 8 in the interim report for the third quarter 2021. The offering is currently available in the Danish, Swedish and Norwegian markets, and the ambition is to rollout Loomis Pay in more markets.

Dialogue with customers, building up of local sales organizations and continued development of the service offering are prioritized areas. As previously communi cated, the target is annual revenue in excess of SEK 3 billion by 2025.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 594 million (467) and the operating margin was 11.2 percent (10.3). The exchange rate effect on operating income during the quarter was approximately SEK 20 million.

Segment Europe – operating income (EBITA) The operating income (EBITA) amounted to SEK 330 million (144) and the operating margin was 11.9 percent (6.1). Increased revenue combined with the steps that Loomis took early on, to compensate for the temporary reduction in volumes, after the pandemic broke are providing clear results. During the quarter several of Loomis’s European companies received government grants for a total of around SEK 3 million (18), mainly to provide relief for furloughed employees.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 367 million (382) and the operating margin was 14.2 percent (17.5). The lower operating margin is above all due to the current challenges in the US labor market. In order for Loomis to maintain a high level of service, the amount of overtime has been increased on a temporary basis, which has resulted in a slightly higher cost level.

The operating income in the fourth quarter of 2020 was positively impacted by non-recurring items. Excluding these items, the operating margin amounted to 16.3 percent.

Segment Loomis Pay – operating income (EBITA) The operating income (EBITA) amounted to SEK –48 million (–30). Loomis Pay is expected to achieve positive operating income in 2023. Until 2023, further investments will be made in product development and other activities relating to Loomis Pay.

The assessment is that around SEK 100 million, net per year, will be expensed in the income statement.

Group – other

The operating income (EBIT) for the quarter amounted to SEK 547 million (250), which includes amortization of acquisition- related intangible assets of SEK –31 million (–28) and acquisition-related costs of SEK –15 million (–75). The acquisition- related costs for the fourth quarter of 2020 mainly consisted of costs relating to the integration of acquired operations in France and Sweden. The previous year also includes items affecting comparability of SEK –114 million, which mainly relate to restruc turing costs within the British operations.

Income before tax of SEK 500 million (203) includes a net financial expense, including a loss on monetary net assets, of SEK –48 million (–46).

The tax expense for the quarter amounted to SEK –141 million (–100), which represents a tax rate of 28 percent (49). In the fourth quarter of 2020, tax was affected by acquisition-related costs, which were not deductible for tax purposes, and the pre- tax profit was, in relative terms, lower than normal in countries with a lower tax rate.

Earnings per share before and after dilution amounted to SEK 4.82 (1.37).

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6 Revenue and earnings

Full year 2021

Group – revenue

Revenue for the period amounted to SEK 19,723 million (18,813).

Real growth was 10 percent (–8), of which organic growth was 6 percent (–9). Revenue was negatively affected in the first quarter of the year by the pandemic. In the second quarter volumes began to recover both in the USA and Europe as restrictions were eased. The recovery continued in the third quarter in the USA but came to a standstill in Europe due to the spread of the Delta variant. Revenue developed in a positive direction in the fourth quarter – both in Europe and the USA. Acquisitions in Sweden, Fin- land and Switzerland also contributed to higher revenue.

Segment Europe – revenue

Revenue for the period amounted to SEK 10,178 million (9,788).

Real growth, which amounted to 8 percent (–12), was positively affected by revenue attributable to the acquisitions of Nokas Vär- dehantering AB in Sweden in June 2020, Automatia in Finland in December 2020 and the cash management operations of Swiss Post in May of 2021. Organic growth was –1 percent (–15).

Segment USA – revenue

Revenue amounted to SEK 9,643 million (9,098) and real growth was 13 percent (–2). Organic growth amounted to 12 percent (–2). Volumes in the US market have recovered gradually as restrictions have been lifted. The negative effects of the spread of the pandemic have had a significantly lower impact in the USA than in Europe. This is mainly due to the structure of the customer portfolios. In the USA a larger share of the revenue than in Europe is not volume dependent. Fixed revenue from, for exam- ple, SafePoint and financial institutions is significantly higher in the USA than in Europe. Revenue for the period from SafePoint accounted for around 18 percent (17) of the segment’s total revenue. The share of revenue from CMS during the period amounted to 34 percent (34) of the segment’s total revenue. See also the comments on page 5.

Segment Loomis Pay – revenue

Revenue amounted to SEK 11 million (7). In the first quarter Loomis Pay was launched in the Swedish market and in the fourth quarter in the Norwegian market. The offering is now available in Denmark, Sweden and Norway. See also the comments on page 5.

Group – operating income (EBITA)

The operating income (EBITA) amounted to SEK 1,961 million (1,775) and the operating margin was 9.9 percent (9.4). The exchange rate effect on operating income during the period was approximately SEK –115 million.

Segment Europe – operating income (EBITA) The operating income (EBITA) amounted to SEK 846 million (588) and the operating margin was 8.3 percent (6.0). During the first quarter the operating income was negatively affected by the pandemic but in the second quarter volumes began to recover, which had a positive effect on the operating margin. In the third quarter it was primarily the measures implemented in 2020 to adapt costs to lower volumes that yielded results. The positive trend continued in the fourth quarter. During the period several of Loomis’s European companies received government grants for a total of around SEK 46 million (147), mainly to provide relief for furloughed employees.

Segment USA – operating income (EBITA)

The operating income (EBITA) amounted to SEK 1,452 million (1,425) and the operating margin was 15.1 percent (15.7). A more profitable customer portfolio, higher revenue from SafePoint and ATMs, and efficiency improvement programs at the branches continued to contribute to good profitability. Profitability in the third and fourth quarters was negatively impacted by the structural challenges in the US labor market. See also the comments on page 5.

Segment Loomis Pay – operating income (EBITA) The operating income (EBITA) amounted to SEK –149 million (–68). Cost levels are developing according to plan and Loomis Pay is expected to reach positive operating income in 2023. Until 2023, further investments will be made in product development and other activities relating to Loomis Pay. See also the comments on page 5.

Group – other

The operating income (EBIT) for the period amounted to SEK 1,738 million (1,304), which includes amortization of acquisition- related intangible assets of SEK –126 million (–109), acquisition- related costs of SEK –45 million (–163) and items affecting comparability of SEK –52 million (–200). The item affecting comparability relates to goodwill impairment for an entity within the European segment. The items affecting comparability in the previous year are mainly impairment of goodwill and costs relating to restructuring within Segment Europe. Acquisition-related costs in 2020 are mainly related to acquisitions in France and Sweden.

Income before tax of SEK 1,545 million (1,096) includes a net financial expense of SEK –194 million (–207), including loss of monetary net assets relating to currency adjustment in Argen- tina.

The tax expense for the quarter amounted to SEK –440 million (–380), which represents a tax rate of 28 percent (35). See also the comments on page 5.

Earnings per share before dilution amounted to SEK 14.74 (9.52) and after dilution SEK 14.73 (9.52).

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Cash flow and investments

January – December 2021

Cash flow from operating activities, excluding effects from IFRS 16, amounted to SEK 1,620 million (2,218), equivalent to 83 percent (125) of operating income (EBITA).

Net investments in fixed assets for the period amounted to SEK –1,156 million (–986), which can be compared to depreciation (excluding the IFRS 16 effects) of SEK 1,240 million (1,266).

Investments made during the period were mainly in buildings, vehicles, machinery and equipment. Investments in relation to depreciation (excluding IFRS 16) for the period amounted to 0.9 (0.8).

Capital employed and financial position

Capital employed

Total capital employed as of December 31, 2021 amounted to SEK 17,070 million (15,392 as of 31 December 2020), which is equivalent to around 87 percent (82) of revenue. Return on capital employed amounted to 12 percent (12).

Shareholders’ equity and financing

Shareholders’ equity increased in 2021 by SEK 1,290 million to SEK 10,063 million as of December 31, 2021 (8,773 as of Decem- ber 31, 2020). The increase is largely explained by trans lation differences of SEK 981 million, net profit for the period of SEK 1,104 million and actuarial gains of SEK 87 million. The dividend of SEK 451 million and funds used to repurchase shares, SEK 350 million, reduced the share holders’ equity. The return on shareholders’

equity was 11 percent (8) and the equity ratio was 37 percent (35).

Net debt amounted to SEK 7,007 million as of December 31, 2021 (6,619 as of December 31, 2020) and the net debt/EBITDA amounted to 1.81 (1.82 as of December 31, 2020).

As of December 31, 2021, total long-term loan facilities amounted to around SEK 8.3 billion and total short-term loan facilities to around SEK 0.4 billion. Unutilized credit facilities amounted to around SEK 4.5 billion on December 31, 2021, of which 1.7 billion was used as back-up for outstanding commercial papers. Avail- able liquid funds amounted to around SEK 2.0 billion (see Note 7).

Other events

Significant events during the period

Loomis’s Annual General Meeting was held on May 6, 2021.

For decisions made at the 2021 AGM, see the press release from May 6, 2021 which is available on Loomis’s website, www.loomis.

com.

On August 30 Loomis AB announced that a Danish court had issued an appealable decision against Loomis. As previously reported, in 2018 a competitor filed a lawsuit against Loomis AB’s Danish subsidiary relating to alleged competition law infringements in the Danish market. The decision relates to prac- tices applied and agreements entered into between 2014 and 2016. Loomis has appealed the decision since Loomis is of the firm opinion that Loomis has acted in compliance with relevant laws. The court has in its decision not considered the question of damages as this is only expected to be addressed in a separate process after the appeal process has been finalized. The competitor´s total claim is DKK 228 million plus interest. Loom- is is not reporting any provision in the balance sheet for this case as the criteria for provisions, under IAS 37, are not considered to be met.

Acquisitions January – December 2021

In March 2021 Loomis AB announced that, through its wholly owned subsidiary Loomis Schweiz AG (Loomis Switzerland), it had entered into an agreement to acquire the operations of limit- ed liability company SecurePost AG (SecurePost), a subsidiary of Die Schweizerische Post AG (Swiss Post). The acquisition was in the form of a transfer of assets and liabilities, whereby Loomis Switzerland acquired all of the operations of SecurePost, including customer contracts, employees and operational assets. New commercial agreements with other legal entities within Swiss Post have been signed and became effective upon closing of the transaction, which took place on May 3, 2021. The enterprise val- ue, i.e. the purchase price payable on a debt-free basis, amounted to approximately CHF 17.5 million.

SecurePost had a nationwide presence in Switzerland and around 440 employees. In 2020 its operations generated revenue of around CHF 66 million. In addition to traditional cash in transit (CIT) and cash management services (CMS), SecurePost brings an installed base of around 1,300 smart safes (SafePoint) which will be integrated into Loomis Switzerland’s existing Safe- Point portfolio.

The acquired operations are reported within Segment Europe and consolidated into Loomis’s accounts as of May 3, 2021. The acquisition was not subject to any regulatory approvals and the purchase price was paid on closing.

At the time of the acquisition the operating margin (EBITA) was negative. The operating margin was marginally positive for 2021 as some of the anticipated synergies were realized. Once the business is fully integrated, over the next two years, the acquired volumes are expected to reach a profitability, equivalent to a purchase price multiple of around four times EBITA, after synergies.

Including transaction and integration costs, the acquisition had a negative impact on Loomis’s earnings per share for 2021. As of full-year 2022 the initial negative impact is expected to have been recovered and the effect of the acquisition on Loomis’s earnings per share is expected to be positive, compared to the

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8

pre-transaction level. For further information, see Note 5.

Other

On June 3 Loomis announced the appointment of Stellan Abra- hamsson as Chief Risk Officer for the Loomis Group and that he will assume the position on March 1, 2022. In addition to exten- sive experience in financial risk management from various posi- tions in the banking and insurance industries, Stellan has served as Senior Group Supervisor at Finansinspektionen (Sweden’s financial supervisory authority). He will be a member of Loomis Group Management and will report to the President and CEO of Loomis Group.

On July 8 it was announced that Loomis AB had signed a five- year credit agreement for a total of around EUR 265 million. It is a syndicated, revolving credit facility of USD 140 million, SEK 945 million and EUR 55 million. The loan replaces an existing revolving credit facility maturing in June 2022. The loan may be used to finance working capital and investments, and for other corporate purposes.

On two occasions, July 22 and November 2, it was announced that the Board of Directors of Loomis AB had decided to use the authorization granted by the 2021 Annual General Meeting to repurchase own shares to adapt Loomis’s capital structure to the Company’s capital requirements. A total of 1,379,985 shares were repurchased for around SEK 350 million. The company’s holding of own shares thereby amounts to 1,433,782 shares, as of December 31, 2021. The total amount of shares in the company, including the company’s own shares, amount to 75,279,829.

On October 7 it was announced that the following representatives for Loomis AB’s shareholders will be members of the Nomination Committee ahead of the 2022 Annual General Meeting: Elisabet Jamal Bergström, appointed by SEB Fonder and chair of the Nom- ination Committee, Bernard Horn, appointed by Polaris Capital Management, Peter Lundkvist, appointed by Tredje AP-fonden, Jacob Lundgren, appointed by Andra AP-fonden and Robin Nestor, appointed by Lannebo Fonder. The Company’s Chair- man, Alf Göransson, has convened the Nomination Committee to its first meeting and will also be co-opted to the Committee.

On October 20, Loomis was notified that the Chilean antitrust agency had filed a complaint in Chile against Loomis’ Chilean subsidiary and two of Loomis’ competitor companies in the Chilean market for involvement in an illegal cartel. The authority has requested that Loomis be ordered to pay a fine of USD 6.4 million. The court proceedings are expected to commence during 2022. Loomis takes all accusations of violations of the law very seriously but will also respond to all allegations. Loomis is not reporting any provision in the balance sheet for this case as the criteria for provisions under IAS 37 are not considered to be met.

On November 24 it was announced that Loomis AB had issued

SEK 1,200 million of sustainability-linked bonds. Loomis has linked the bonds to a sustainability target of a reduction in Loom- is’s absolute carbon emissions of 20 percent by 2025, compared with the 2019 level. The bonds have a five-year maturity and mature on November 30, 2026. The interest on the bonds is vari- able and based on three months’ Stibor plus 1.35 percentage points. The proceeds will be used for operating activities and to refinance loans. The bonds are listed on Nasdaq Stockholm Sus- tainable Bond List.

Events after the end of the period

On January 1, 2022, Loomis made a change in the organizational structure whereby the mergers and acquisition (M&A) function was placed under the Chief Financial Officer. In connection with this change, Johannes Bäckman, who was previously Head of M&A and a member of Group Management, left Loomis.

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Loomis Interim Report January – December 2021

Financial reports

CONSOLIDATED STATEMENT OF INCOME

Note 2021 2020 2021 2020

Revenue 5,122 4,454 18,908 18,454

Revenue, acquisitions 204 82 815 359

Total revenue 3,4 5,325 4,537 19,723 18,813

Production expenses –3,800 –3,316 –14,366 –14,015

Gross income 1,525 1,220 5,357 4,798

Selling and administration expenses –931 –754 –3,396 –3,024

Operating income (EBITA) 594 467 1,961 1,775

Amortization of acquisition-related intangible assets –31 –28 –126 –109

Acquisition-related costs and revenue 5 –15 –75 –45 –163

Items affecting comparability 6 – –114 –52 –200

Operating income (EBIT) 547 250 1,738 1,304

Financial income 23 12 71 31

Financial expenses –53 –50 –209 –211

Loss on monetary net assets/liabilities –18 –9 –56 –28

Income before taxes 500 203 1,545 1,096

Income tax –141 –100 –440 –380

Net income for the period ¹⁾ 359 103 1,104 716

Earnings per share, SEK

Earnings per share before dilution 4.82 1.37 14.74 9.52

Earnings per share after dilution 4.82 1.37 14.73 9.52

Number of shares

Number of outstanding shares (million) 73.8 75.2 73.8 75.2

Average number of outstanding shares before dilu-

tion (million) 74.3 75.2 74.9 75.2

Average number of outstanding shares after dilution

(million) 74.4 75.2 75.0 75.2

1) Net income for the period is entirely attributable to the owners of the Parent Company.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2021 2020 2021 2020

Net income for the period 359 103 1,104 716

Other comprehensive income

Items that will not be reclassified to the statement of income

Actuarial gains and losses after tax –19 74 87 –3

Items that may be reclassified to the statement of income

Exchange rate differences 373 –941 981 –1,227

Hedging of net investments, net of tax –35 100 –90 119

Other comprehensive income and expenses for the period, net after tax 320 –767 978 –1,110

Total comprehensive income for the period¹⁾ 678 –664 2,083 –394

1) Total comprehensive income is entirely attributable to the owners of the Parent Company.

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CONSOLIDATED BALANCE SHEET

Note 2021 2020

SEK m Dec 31 Dec 31

ASSETS Fixed assets

Goodwill 5 7,185 6,884

Acquisition-related intangible assets 5 734 486

Other intangible assets 413 269

Buildings and land 970 942

Machinery and equipment 4,463 4,158

Right-of-use assets 3,008 2,645

Contract assets 164 139

Deferred tax assets 449 476

Pension plan assets 225 304

Interest-bearing financial fixed assets 466 361

Other long-term receivables 273 231

Total fixed assets 18,349 16,894

Current assets

Accounts receivable 2,686 2,199

Other current receivables 236 156

Current tax assets 263 290

Prepaid expenses and accrued income 527 488

Interest-bearing financial current assets 13 67

Liquid funds 7 5,156 4,802

Total current assets 8,880 8,002

TOTAL ASSETS 27,228 24,896

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity 9

Share capital 376 376

Other capital contributed 4,594 4,594

Other reserves 894 344

Retained earnings including net income for the year 4,199 3,458

Non-controlling interest – 1

Total shareholders’ equity 10,063 8,773

Long-term liabilities

Interest-bearing non-current lease liabilities 2,348 2,105

Loans payable 5,636 5,723

Deferred tax liabilities 436 402

Provisions for claims reserves 451 389

Provisions for pensions and similar commitments 724 834

Other provisions 118 106

Other long-term liabilities 126 110

Total long-term liabilities 9,839 9,669

Current liabilities

Interest-bearing current lease liabilities 701 546

Loans payable 311 199

Accounts payable 687 600

Provisions for claims reserves 231 187

Current tax liabilities 274 184

Liabilities, cash processing operations 2,818 2,468

Accrued expenses and prepaid income 1,689 1,514

Other provisions 45 186

Other current liabilities 569 570

Total current liabilities 7,326 6,454

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 27,228 24,896

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CHANGE IN CONSOLIDATED SHAREHOLDERS’ EQUITY

2021 2020

SEK m Full year Full year

Opening balance 8,773 9,592

Actuarial gains and losses after tax 87 –3

Exchange rate differences 981 –1,227

Hedging of net investments, net of tax –90 119

Total other comprehensive income 978 –1,110

Net income for the period 1,104 716

Total comprehensive income¹⁾ 2,083 –394

Dividend paid to Parent Company’s shareholders –451 –414

Share-related remuneration 9 –11

Acquisition of own shares –350 –

Non-controlling interest –1 0

Closing balance 10,063 8,773

1) Total comprehensive income is entirely attributable to the owners of the Parent Company.

CONSOLIDATED STATEMENT OF CASH FLOWS

2021 2020 2021 2020

SEK m Note Quarter 4 Quarter 4 Full year Full year

Operations

Income before taxes 500 203 1,545 1,096

Depreciation and amortization 521 465 2,027 1,979

Other items not affecting cash flow 52 128 141 390

Financial items received 9 5 29 24

Financial items paid –58 –59 –223 –231

Income tax paid –39 –64 –375 –483

Change in accounts receivable 17 97 –341 268

Change in other operating capital employed and other items –67 –226 –45 –52

Cash flow from operations 933 549 2,758 2,993

Investing activities

Investments in fixed assets –455 –248 –1,162 –1,014

Disposals of fixed assets 1 –7 6 28

Acquisitions of operations 5 –68 –545 –230 –853

Cash flow from investing activities –522 –801 –1,386 –1,839

Financing activities

Dividend paid – –414 –451 –414

Acquisition of own shares –208 – –350 –

Issuance of bonds 1,200 – 1,200 –

Issuance of commercial papers and other long-term borrowing – 681 868 2,181

Redemption of commercial papers and other long-term borrowing –1,477 – –1,937 –1,968

Change in other interest-bearing net debt –84 62 –819 –420

Cash flow from financing activities –570 329 –1,489 –621

Cash flow for the period –159 78 –117 533

Liquid fund at beginning of the period¹⁾ 2,143 2,072 2,056 1,655

Translation differences in liquid funds 25 –94 71 –132

Liquid funds at end of period ¹⁾ 2,009 2,056 2,009 2,056

1) Excluding liquid funds within cash processing operations. See also Note 7 Liquid funds.

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CONSOLIDATED STATEMENT OF CASH FLOWS EXCLUDING THE IFRS 16 IMPACT, ADDITIONAL INFORMATION

2021 2020 2021 2020

Operating income (EBITA)¹⁾ 577 452 1,896 1,718

Depreciation¹⁾ 325 288 1,240 1,266

Change in accounts receivable 17 97 –341 268

Change in other operating capital employed and other items¹⁾ –32 –220 –19 –48

Cash flow from operating activities before investments 887 617 2,776 3,204

Investments in fixed assets, net –454 –255 –1,156 –986

Cash flow from operating activities 433 362 1,620 2,218

Financial items paid and received¹⁾ –27 –32 –104 –109

Income tax paid –39 –64 –375 –483

Free cash flow 366 266 1,141 1,626

Cash flow effect of items affecting comparability –3 –38 –76 –39

Acquisition of operations –68 –545 –230 –853

Acquisition-related costs and revenue, paid and received²⁾ –8 –69 –73 –141

Dividend paid – –414 –451 –414

Acquisition of own shares –208 – –350 –

Issuance of bonds 1,200 – 1,200 –

Issuance of commercial papers and other long-term borrowing – 681 868 2,181

Redemption of commercial papers and other long-term borrowing – –1,937 –1,968

Change in other interest-bearing net debt¹⁾

–1,477

40 198 –209 141

Cash flow for the period –159 78 –117 533

1) Excluding the IFRS 16 impact.

2) Refers to the cash flow effect of acquisition-related transaction-, restructuring and integration costs.

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Notes

NOTE 1 – ACCOUNTING PRINCIPLES

The Group’s financial reports are prepared in accordance with the International Financial Reporting Standards (IAS/IFRS, as adopted by the European Union) issued by the International Accounting Standards Board, and statements issued by the IFRS Interpretations Committee (IFRIC).

This interim report has been prepared according to IAS 34 Interim Financial Reporting. The most important accounting principles according to IFRS, which are the accounting standards used in the preparation of this interim report, are described in the 2020 Annual Report.

New or changed standards and interpretations that entered into force on January 1, 2021 are not expected to have any material effect on the Group’s financial statements.

Critical estimates and assessments

For critical estimates and assessments as well as contingent liabilities, please refer to pages 97–98 and 128 of the 2020 Annual Report. There have been no other significant changes compared to what is described in the Annual Report.

Parent Company – Loomis AB

The Parent Company’s financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities.

NOTE 2 – RISKS AND UNCERTAINTIES

Risks

Loomis’ operations, which include cash in transit, cash management services and international valuables logistics, involve Loomis assuming the customer’s risks associated with managing, transporting and storing cash, precious metals and valuables.

Loomis has established routines and processes to identify, take action to mitigate and monitor risks. Risks are assessed based on two criteria: the likelihood that an event will occur and the sever- ity of the consequences for the business if the event should occur.

There are risks both in terms of circumstances pertaining to Loomis itself and the industry as a whole, as well as risks that are more general in nature. Certain risks are outside of Loomis’

control.

Below is a description of some of the most significant risks and uncertainties that may have a negative impact on Loomis’ operations, financial position and results, and that should therefore be taken into account when making assessments based on full-year or interim information. The risks described below are not in any particular order of significance.

Operational risks: Operational risks are risks associated with the day-to-day operations and the services offered by the Company

to its customers. Some of the most significant risks Loomis has identified are:

• IT-related risks, such as operational disruptions and extended stoppages of systems linked to operating activities, as well as risks linked to installation of new systems.

• Risk of changed behavioral patterns relating to purchases and payments.

• Customer-related risks, such as the risk of loss of certain customers as well as significant changes in the banking sector.

• Competition risk, such as Loomis’ ability to develop competi- tive offerings.

• Employee risk, such as a high staff turnover.

• Risk of robbery and other criminal activity.

• Risk of internal theft and/or failing cash reconciliation routines at cash centers.

• Risk associated with the implementation of acquisitions, such as difficulties integrating new operations and employees, as well as the anticipated benefits of a certain acquisition not being realized or being only partially realized.

Financial risks: In its operations, Loomis is exposed to risk asso- ciated with financial instruments such as liquid funds, accounts receivable, accounts payable and loans. The risks relating to these instruments are mainly:

• Interest rate risk associated with liquid funds and loans.

• Exchange rate risk associated with transactions and translation of shareholder’s equity.

• Credit risk pertaining to financial and commercial activities.

• Financing risk relating to the Company’s capital requirements.

• Liquidity risk associated with short-term solvency.

• Capital risk pertaining to the capital structure.

• Price risk regarding changes in raw material prices (mainly fuel).

The financial risks are described in more detail in Note 22 in the 2020 Annual Report.

Legal risks: Through its operations Loomis is exposed to legal risks such as:

• Risk of disputes and legal action.

• Risk associated with the application of existing laws, other regulations and changes in legislation.

Factors of uncertainty

The economic trends and the ongoing pandemic during 2021 impacted certain geographic areas negatively and Loomis’s revenue and earnings were adversely affected as a result.

Changes in general economic conditions and market trends have various effects on demand for cash handling services. These include the ratio of cash purchases to credit card purchases, changes in consumption levels, the risk of robbery and bad debt losses, and the staff turnover rate.

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The preparation of financial reports requires the Board of Direc- tors and Group Management to make estimates and assessments. Estimates and assessments affect both the income statement and the balance sheet as well as the information disclosed on things like contingent liabilities. Actual outcomes may deviate from these estimates and assessments depending on other circumstances or other conditions.

In 2021 the actual financial results of certain previously reported items affecting comparability, provisions and contingent liabilities, as described in the 2020 Annual report and where applica- ble under the heading “Critical estimates and assessments” in

Note 1 of this report, may deviate from the financial assessments and provisions made by management. This may impact the Group’s profitability and financial position.

Seasonal variations

Loomis’ earnings fluctuate across the seasons and this should be taken into consideration when making assessments based on interim financial information. The primary reason for these seasonal variations is that the need for cash handling services increases during the vacation periods and in connection with public holidays.

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NOTE 3 – REVENUE DISTRIBUTION

Europe USA Loomis Pay

Group- wide func- tions and

elimina-

tions Total Europe USA Loomis Pay

elimina-

tions Total

SEK m Quarter 4

2021 Quarter 4

2020

Cash in transit (CIT) 1,601 1,573 – – 3,174 1,440 1,324 – – 2,764

Cash management services (CMS) 717 884 – – 1,601 616 750 – – 1,366

International 217 107 – – 324 187 85 – – 272

Other (FX etc.) 210 12 5 – 226 118 13 4 – 135

Revenue, internal 22 12 – –33 – 7 12 – –19 –

Total revenue 2,766 2,587 5 –33 5,325 2,368 2,184 4 –19 4,537

Timing of revenue recognition, external

At a point in time 532 97 2 – 631 380 84 – – 465

Over time 2,213 2,479 3 – 4,694 1,981 2,089 3 – 4,072

Total external revenue 2,744 2,576 5 – 5,325 2,361 2,173 3 – 4,537

Europe USA Loomis Pay

elimina-

tions Total Europe USA Loomis Pay

elimina-

tions Total

SEK m Full year

2021 Full year

2020

Cash in transit (CIT) 5,876 5,922 – – 11,798 5,923 5,632 – – 11,555

Cash management services (CMS) 2,601 3,274 – – 5,875 2,518 3,074 – – 5,592

International 843 356 – – 1,199 768 324 – – 1,092

Other (FX etc.) 792 47 11 – 850 541 27 7 – 574

Revenue, internal 66 43 – –109 – 38 41 – –79 –

Total revenue 10,178 9,643 11 –109 19,723 9,788 9,098 7 –79 18,813

Timing of revenue recognition, external

At a point in time 1,969 334 4 – 2,307 1,495 322 1 – 1,817

Over time 8,143 9,266 7 – 17,415 8,255 8,735 6 – 16,996

Total external revenue 10,112 9,600 11 – 19,723 9,750 9,057 7 – 18,813

REVENUE PER SIGNIFICANT GEOGRAPHICAL MARKET

2021 2020 2021 2020

USA 2,587 2,184 9,643 9,098

France 729 696 2,737 2,962

Spain 359 325 1,345 1,327

Switzerland 404 223 1,320 908

UK 260 223 941 1,028

Other countries and eliminations 986 886 3,737 3,490

Total revenue 5,325 4,537 19,723 18,813