Securitas AB Q2 2023 Earnings Call Transcript

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

Question: Andrew Charles Grobler - BNP Paribas Exane, Research Division - Analyst : 3 from me as well. 2 very quick ones. Firstly, just on the -- going back to the SEK 25 million to SEK 30 million of one-off gains in central charges. Why didn't you put those below the line and let them off against the other IACs if there are one-off gains? That would be my first question. Secondly, just so I'm sure the Argentinian business is that sold and closed now as of the 25th of July, so out of your accounts post that date. And then thirdly, and a slightly broader one, a lot of your -- the discussion and all of your targets are based around margin. Our margins have gone up over the last few years, which has been good. But at the same time, asset terms have come down pretty sharply. So return on assets has actually come down. How do you reverse that trend over the next couple of years?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Yes, Andreas, I need to come back to active portfolio management once again, sorry for that. But I remember, and Magnus, when you formulated the financial targets, that one reason that you stipulated for not, say, having a group revenue target was the slightly uncertain impact of what active portfolio management would mean sold at the end of the day, but maybe that you would come back then towards the end of '23 with then also, say, group revenue target. Do you feel that you are getting closer to doing that?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : And I guess sitting on the outside that active portfolio management might mean that you are, say, having the low-hanging fruit on that part, so at the early part where you have the big red list of contracts that you want to renegotiate and then focus on? And should we see the sign of that say, now client retention rates are improving again that you are past that kind of the most risky part of the active portfolio management?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : It's a moving target, I guess, as well in that respect.

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Good. And just one final thing as well. I think you mentioned in the previous quarterly call that the tight labor market and in particular Europe has restricted you from taking on these kind of extra volumes that might be something that intra-quarter drive profitability. Are you now back in a situation where you feel that you can take on the extra volumes that you find logical or is that still a limitation?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : And when you're in your prepared comments talked about the higher subcontracting costs that affected Europe,, is that also something that we could hope normalize then in the second half of this year?

Question: Andrew Charles Grobler - BNP Paribas Exane, Research Division - Analyst : I just wanted to see if I could come back on my -- the last question from the previous time, I think I got cut off when you asked me again about Argentina. So just to repeat, the target is all about margins, but group asset terms have come down over the years and so returns have come down. How do you reverse that trend over the next couple of years? 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 28, 2023 / 12:30PM, SECUb.ST - Q2 2023 Securitas AB Earnings Call

Question: Andrew Charles Grobler - BNP Paribas Exane, Research Division - Analyst : Yes, return on asset is where are we looking at it.