Securitas AB Q4 2021 Earnings Call Transcript

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

Question: Katherine Somerville - UBS Investment Bank, Research Division - Analyst : So I've got 3 questions, if I may. The first is on the 70 basis point improvement in the margin in North America, are you able to breakdown how much of that was from the restructuring and then maybe for mix and then from the price wage, assuming that's flat? And then the second question is that the 50 basis point benefit that you're expecting 2022, is this just from efficiency benefits? So how much of that are you expecting from mix? And then the final question is on Stanley. The 10-year average organic growth was minus 1%. I understand it's a better strategic fit for you. But at what point do you expect its growth to be more in line with the growth of Securitas solution?

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Hi, good morning, everyone. Two questions from me as well, please. Maybe first, touching on the price versus volume performance. You have obviously managed your price wage balance in Q4, and you're very confident for 2020. But just to help us think about the organic, could you maybe talk about the Q4 price versus volume component within your organic? And then going into 2022, I presume you've had a lot of your collective. How do you expect that developing in Q1 and onwards? And then finally on provisions. So you haven't -- it doesn't seem that the SEK 530 million on the balance sheet has changed the additional provision that you took during 2020. So if we think about '22, at what point will these be revised again? And what will the conditions be for these to be released back into the P&L?

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Can I just follow up quickly on -- just on the pricing point. Just to be clear, you see the price point in Q4 potentially more of a 3% to 4% contribution to organic, and that kind of staying at that higher kind of mid-single-digit level in '22. Just to make sure that I understand the comment.

Question: Andrew Charles Grobler - CrTdit Suisse AG, Research Division - Analyst : Just two from me, if I may. So going back to wage and price again. You've talked a lot about North America and the trends you're seeing there. Could you talk a little about Europe and -- which, I guess, is lagging in terms of timing of that inflation, what you saw at the end of last year and what your expectations are for this year, if different to the U.S.? And then secondly, just on Ibero-America. You talked about strength in Spain and some price increases in Argentina. Could you break that down a little between those component parts?

Question: Andrew Charles Grobler - CrTdit Suisse AG, Research Division - Analyst : Great. And just one quick follow-up, if I may, going back to the previous question. You talked on significantly higher price increases in Europe. Should we be thinking about 3% to 4% that you mentioned in North America? Is that the kind of right kind of ballpark?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Just coming back a little to the U.S. retention rates that we have obviously talked about it in -- from a lot of different angles here. But if you look at that 86% adjusting back the big contract impact, how would you feel that the retention rate has been in your more normal bread and butter contracts, if you put it like that?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : So the part of the business that you talked about being, say, the quality of the portfolio, you still feel there is nothing happening, so to say, with normal kind of bread and butter kind of customers of yours.

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Good point. And then bring for me to the next question. Looking at, say, very helpful the extra comment you gave earlier on the U.S. North American business transformation program. And obviously, with the knowledge from that now in your bags, so to say, and also the global IS/IT project finalized, when you now then turn focus to the European A and Ibero-America program, do you feel, say, more confident in the delivery on those REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 08, 2022 / 8:30AM, SECUb.ST - Q4 2021 Securitas AB Earnings Call when you look at up until 2024 and maybe that you have built in some sort of extra prudence into the impacts you will see coming through on those programs at the end of it?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Excellent. And a final one for me. When you presented the Stanley Security case now to competitive authorities in the relevant geographic regions, have you encountered any feedback that you might feel are a risk to sliding in the completion of the acquisition?