Securitas AB Annual Report 2005

The Group – The share, shareholders and dividend
10.50
8.75
7.00
5.25
3.50
1.75
0.00
Earnings per share and free cash flow per share
Earnings per share after full taxes have increased
by an average of 26 percent in the last five years.
SEK SEK
01 02 03 04 05
■ Earnings per share
after full taxes,
fully diluted basis
Free cash flow
per share, fully
diluted basis
12.00
10.00
Continued high liquidity in the share
The Securitas share has been listed on the Stockholm Stock
Exchange since 1991. The share is included in the Stockholm
Stock Exchange indexes OMXS and OMXS30. Securitas’
weight in the OMXS index was 1.31 (1.47) percent and in
the OMXS30 index 1.87 (2.06) percent as of year-end 2005.
During the year a total of 599 million (539) Securitas shares
were traded on the Stockholm Stock Exchange, corresponding
to a value of MSEK 72,093 (60,781). The turnover rate during
the year was 169 percent (170), against a turnover rate of
135 percent (149) for the entire A-list of the Stockholm Stock
Exchange. Market capitalization at year-end 2005 was
MSEK 48,188 (41,617).
The share capital amounted to SEK 365,058,897 as of
December 31, 2005, divided among an equal number of shares,
each with a par value of SEK 1.00. Of these shares, 17,142,600
are Series A -shares and 347,916,297 Series B -shares.
Each
Series A -share carries ten votes and each Series B -share
one vote.
Share price performance
The market price of the Securitas share rose by 15.8 percent in
2005, while the OMXS index gained 32.6 percent and the OMXS30
8.00
6.00
4.00
2.00
0.00
■ Dividend per share
Data per share1 SEK/share 2005 2004 2003 2002 2001
Earnings after current taxes, after dilution 2 7.34 4.19 3.66 5.14 3.73
Earnings after current taxes, after dilution 2, 7 7.31 4.01 3.45 4.14 3.27
Dividend 3.503 3.00 2.00 2.00 1.50
Dividend as % of earnings per share after taxes 484 75 58 48 46
Dividend as % of free cash fl ow 484 43 41 20 28
Yield, % 2.64 2.6 2.1 1.9 0.8
Free cash fl ow per share5 7.28 6.93 4.94 10.26 5.45
Share price at end of period 132.00 114.00 97.00 104.00 199.00
Highest share price 137.00 123.00 116.00 216.50 199.00
Lowest share price 106.50 86.00 69.50 104.00 130.00
Average share price6 121 101.74 93.20 166.94 184.51
P/E ratio7 2005
7.34
7.31
3.50
18 28 28 25 61
Number of shares outstanding (000s) 365,058 365,059 365,059 363,056 361,081
Average number of shares outstanding, after dilution (000s) 378,712 382,409 382,417 376,690 365,123
Number of shares outstanding, after dilution (000s) 375,015 382,409 382,409 382,473 365,123
3
484 484 2.64 7.28
132.00
137.00
106.50
121
18
365,058
378,712
375,015
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1 After dilution. Data per share adjusted for 4:1 split in 1998 and 3:1 split in 1996.
2 Adjusted for interest and tax effects attributable to convertible debenture loan; see Note 29.
3 Proposed dividend.
4 For 2005, calculated using proposed dividend.
Dividend per share
Dividend per share after full taxes have increased
by an average of 25 percent in the last five years.
SEK
01 02 03 04 05
index rose by 29.4 percent. The lowest price paid for a Securitas
share in 2005 was SEK 106.50 and the highest was SEK 137.
Dividend and dividend policy
The Board of Directors proposes a dividend of SEK 3.50 (3.00)
per share. With a free cash fl ow averaging 75-80 percent of
adjusted income and a balanced growth strategy comprising
both organic and acquisition-driven growth, Securitas should be
able to sustain a dividend level of 40-50 percent of the annual
free cash fl ow.
Shareholder structure
As of December 31, 2005 Securitas had 31,396 shareholders
(29,524), an increase of 6.3 percent since 2004. The principal
shareholders are Investment AB Latour, which together with
Förvaltnings AB Wasatornet and SäkI AB hold 11.0 percent (11.9)
of the capital and 29.7 percent (30.3) of the votes, and Melker
Schörling AB, which holds 4.2 percent (4.2) of the capital and
10.7 percent (10.7) of the votes. At year-end, institutional investors
accounted for more than 90 percent of total share capital. Investors
outside Sweden accounted for 44 percent (47) of the capital
and 31 percent (33) of the votes.
5 Before dilution.
6 Source: Bloomberg.
7 IFRS.
Defi nitions
Share price performance
Yield: Dividend relative to share price at the end of each
year. For 2005, the proposed dividend is used.
Free cash fl ow per share: Free cash fl ow in relation
to the number of shares outstanding before dilution.
P/E ratio (price/earnings): The share price at the end
of each year relative to earnings per share after taxes.
EBITA multiple: The company’s market capitalization and
liabilities relative to operating income before amortization,
net fi nancial items and taxes.
Turnover rate: Turnover during the year relative to the
average market capitalization during the same period.
Market capitalization: The number of shares outstanding
times the market price of the share price at year-end.
Enterprise value: Market capitalization + net debt.
32 SECURITAS 2005