Securitas AB Investor Day Transcript

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

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : This is Johan from Kepler Cheuvreux. Just 2 questions then, if I may. You mentioned the growth target being on the Technology business and obviously mentioned not too much about the ambitions on the top line for the Guarding business. But can you sort of quantify to some extent what share of guarding is sort of marked red or at risk, so we can sort of get a feel for where you -- where that top line could develop in the coming years? And then secondly, just on the -- a bit weaker margins in Stanley Security in the first half this year. Were there any specific incentives in place during this interregnum period? Or was it -- was that missing basically? I suppose, a lot of managers were thinking where they were going rather than focusing on the profitability in the shorter term. Can you say anything about what you had in place and what you have now put in place over the last month? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 24, 2022 / 12:00PM, SECUb.ST - Securitas AB Investor Day

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : Okay. Excellent. I think the 8% margin target is really ambitious. It will be really interesting to see if you can get there already by 2025, obviously, but I wish you very much good luck with the journey.

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Sylvia Barker, JPMorgan. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 24, 2022 / 12:00PM, SECUb.ST - Securitas AB Investor Day

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Not sure if you can hear me.

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : So a couple of questions from me as well. I guess one was before the deal closed, you promised you would tell us why, I guess, the Stanley organic growth has been flattish to slightly negative. Can you maybe talk us through kind of the reasons for that? And again, what are the key reasons why that will change? And maybe you can give us some detail around kind of the installation versus the maintenance piece or any client specificities around it? And then secondly, just interest, again, on the solutions piece. So obviously, that will carry a lot of the growth going forward. How much of that growth will be, I guess, cannibalizing your existing portfolio or at least you'll be converting your existing portfolio, just going back to that, that was a big driver of the solutions growth in the past. So how should we think about you converting existing guarding contracts to solutions contract as opposed to winning new solutions work?

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Okay. And maybe just on the Stanley point, I guess it would be interesting just to -- yes, just to get a bit of background in terms of whether the installation versus kind of maintenance and pieces have done differently over time or whether there's a particular piece of that, which is -- which has underperformed relative to where you expected it from the outside and where you'll be focusing your efforts now?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Yes. Magnus, Andreas and Tony, looking at the targets -- some of the -- your targets you're putting out today and obviously giving us an EBITDA margin target for end of '25, do you see it more as a hockey stick to reach that? Or is it more of a continuous process to reach that target? And also on that target, how important do you think the M&A component is to reach both, say, the margin target and the growth target coming out towards the end of the period?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Excellent. Good answer. I'll take the liberty to just sneak in one question for Tony here as well. The case you presented for us on the Spanish business and how well that acquisition and integration has done, how can you leverage that case internally, now when you're looking at the U.S., the Nordics, U.K., France, say, the big markets where you are now combining business, this must be a powerful kind of a road book to follow?

Question: Katherine Somerville - UBS Investment Bank, Research Division - Analyst : Just on the 8% to 10% Tech and Solutions target, it seems quite a big ask that Stanley will go from being essentially flat to delivering that. So does that assumption, first of all, I assume that, that will be more back-end weighted for Stanley. And then also, does that assume faster growth for the legacy Securitas business? And then finally, just on the growth I saw this year for Stanley, how much of that 3% is price, please?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : You've got time for another follow-up. Just when you get down all this work, putting these strategies together, and as you've alluded to, Magnus, started, you didn't want to put out a goal for yourself when it comes to the traditional guarding operation and what kind of growth and what the asset management or the portfolio management would mean in churning out part of it. But if you take it -- your base assumption where you stand now, so looking up to 2025, do you see this as a growing part of your portfolio or it's a stable part or shrinking part. Your best kind of approximation where you stand now?

Question: Karl-Johan Bonnevier - DNB Markets, Research Division - Analyst : Very clear. I agree with your logic and then how you presented so... Unidentified Company Representative Yes. Hi, everyone. This is [Michela Krakuist], Investor Relations. I have a couple of questions from the webcast that I'm reading out to you now. So a couple of questions from Anvesh Agrawal from Morgan Stanley, asking how much of the 7% organic growth in Stanley in full year '21 was catch-up from COVID or off the low base? And the second one, why is the EBITDA margins 11% versus guidance of 12% in December '21 when you announced the deal?