Securitas AB to Acquire Stanley Security from Stanley Black & Decker Inc Call Transcript

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

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Firstly, could I just ask a little bit on the background of the transaction? How long have you been in discussions? Did you look at other assets? Clearly you know the asset from owning it previously in its previous situation, but it would just be helpful to have a bit of background on that. And then if we think about your competitive environment at the moment, are [Allied] and [D4S] changing their strategy at all? Have they been investing in more electronic security? Could you maybe just elaborate on how you see yourself as a relative player in the U.S. and in Europe after the acquisition were to close? And then could I just check quickly on interest, what interest should we assume on the bridge facility and how quickly are you looking to repay that?

Question: Sylvia Pavlova Barker - JPMorgan Chase & Co, Research Division - Analyst : Can I just check on the EBITA margin? I know that someone asked earlier, but can we just double check that, that is around 10%. It sounds like, just based on the EBITDA and the capital intensity that you've given?

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : I have a couple of questions. First of all, you mentioned here several times, you bought some units last year from Stanley and the rest today. I'm just curious why that was. And -- was it sort of a test balloon from Stanley side or from your side? And then secondly, I mean it looks like paid less than onetime sales for these initial units and now you pay almost 2x sales for the rest of the business there. Were there any significant differences there?

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : Okay. Excellent. Then just on this margin coming back to the 12% EBITDA. And you obviously point out that Stanley is U.S. GAAP and you are IFRS 16 with the in leasing accounting. This 12%, will it be sort of that moving over to the IFRS 16 accounting? Or should we expect sort of just mechanical higher or lower sort of when you start reporting it? And in line with that, this $50 million of cost synergies, are those basically 100% cash? Well, net the tax impact then obviously . REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 08, 2021 / 9:30AM, SECUb.ST - Securitas AB to Acquire Stanley Security from Stanley Black & Decker Inc Call

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : Okay. Excellent. That was -- then I just had a final follow up, a little bit. You mentioned that the CapEx profile of this business you acquired was more attractive than what you are currently running on? And you mentioned that you were investing in customer solutions more, and that's the reason behind it. I guess that implies that you sort of own more of the equipment at the customer side than Stanley would do in their business model. At the same time, they seem to have a higher share of recurring revenues. Isn't that an odd combination? If you take more ownership of equipment by the customers, shouldn't you have a better opportunity to have more recurring revenues? Or am I missing something here?