Securitas AB Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Charles Grobler - CrTdit Suisse AG, Research Division - Analyst : Just a couple from me, if I may. You hope -- you gave the exit rate in June for the group. Could you give that for the regions as well, if possible, please? And then secondly, you talked about the government support in terms of furlough schemes in total from a P&L [perspective] in the first half. What are the expectations for the second half at this point? I realize things may well change before we get there. But what are you thinking at this point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2020 / 12:30PM, SECUb.ST - Q2 2020 Securitas AB Earnings Call

Question: Andrew Charles Grobler - CrTdit Suisse AG, Research Division - Analyst : I just have a quick follow-up on that. In terms of the 3,000 people that have come off those schemes, have they or the vast majority of those people gone back into revenue-generating roles?

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Three questions for me, please. Going back to the provisions point, could you maybe just talk about the types of customers that you're providing against? Obviously, you have a lot of SMEs on the mobile side, sounds like you're seeing some additional demand. But are you concerned that some of them might actually be insolvent perhaps? Or is it more related to larger customers? Then secondly, on the European cost savings program, could you maybe elaborate a little bit more how much of that will be labor-related savings versus kind of other savings? Obviously, you had one program not so long ago, and you have been talking about doing a similar transformational program to the one that you're doing in North America. So to what extent is this like the North American program in any way? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2020 / 12:30PM, SECUb.ST - Q2 2020 Securitas AB Earnings Call And then finally, on aviation, could you comment on the revenue trends that you're seeing or you saw during the quarter and where you are now? And maybe whether most of the furloughs relate to -- or employees still on furlough relate to that business.

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Maybe if I could just follow up on the aviation just briefly. Is there any potential for you to maybe renegotiate any of the contracts and the way that you get paid on that, if there is a volume element normally?

Question: Peter Testa - One Investments S.A.G.L. - Analyst : I've got 3. I'll go one at a time, please. One is just when looking at the extra business, I was wondering 2 things. Firstly, the degree to which you're starting to see that turn into permanent business as you talk to clients and the reopening becomes more of an established pattern. And then secondly, whether as you go through the period of time with reopening, whether that extra business is trending up or trending down in response to the normalization versus the actual need for managing, handling customers.

Question: Peter Testa - One Investments S.A.G.L. - Analyst : Okay. But if you found engaging with customers, your existing customers, as you mentioned earlier in your presentation that that's gaining traction now and you're starting to sign these agreements? Or does it remain an ambition at this point?

Question: Peter Testa - One Investments S.A.G.L. - Analyst : Right. And then the second question on the electronic security. Can you talk a bit about your -- the degree to which you're now able to reopen installation teams and make them more active to handle the pipeline as you finish the quarter? And just some situation maybe also on how the pipeline of that is developing of new business.

Question: Peter Testa - One Investments S.A.G.L. - Analyst : Right. And the last question, please, was just as you reopen in Europe, can you give a sense of how the people who are on temporary assignment or temporary employment situations are being reengaged? Is it a sort of very linear arrangement, whereby you're seeing customers return and absorbing the people or is it somehow a pause? Or how do you just understand that transition back into some version of normal? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2020 / 12:30PM, SECUb.ST - Q2 2020 Securitas AB Earnings Call

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : I noticed in the report that your customer retention number is starting to head in the right direction again. And just if you could help me then, yes, to also work out with the movement we have seen in this extra sales and portfolio sales. Is it existing clients that is really then having a different mix of those services? Or is it the, say, existing clients that are still opting out and then new clients coming in and doing these extra sales? How does that pan out?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : And when you look at the mix of, say, your existing clients taking extra sales, is that a major part of it? So maybe clients that don't really have an on-site guard now is taking mobile monitoring for a while. Or how does that work?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Excellent. And as you know, we're a junkie for information. Will you continue to give us these extra sales breakdown? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2020 / 12:30PM, SECUb.ST - Q2 2020 Securitas AB Earnings Call