Securitas AB Annual Report 2005

A positive 2005 lays the foundation
for the next major strategic step
Operations in 2005 reaffi rmed Securitas’ positive development. The divisions reported
good growth in sales and income, in line with expectations. Further improvements in
Security Services USA are especially satisfying, and it is now established as a marketleading,
stable and robust business with excellent future prospects. Against this background,
the Board of Directors has decided to propose an Extraordinary General Meeting
the next major strategic development step: the distribution and listing of the three divisions
– Securitas Systems, Direct and Cash Handling Services during the autumn 2006.
■ Security Services USA reached an important turning
point after two challenging years. Sales increased
organically by 4 percent to MSEK 21,616 (20,017).
Operating income, adjusted for changes in exchange
rates, rose by 6 percent to MSEK 1,080 (982), mainly
due to higher volume in combination with tighter cost
controls. The Securitas Model has thereby demonstrated
its viability in the demanding U.S. market.
■ Security Services Europe completed its extensive
reorganization, shifting from a geographical and
country-based focus to four specialized and even
Key ratios
more customer-oriented units. Sales increased organically
by 5 percent to MSEK 24,996 (23,289). Operating
income amounted to MSEK 1,873 (1,849).
■ The loss-making Cash Handling Services operations in
Germany were divested with a capital loss of MSEK –151.
Despite several years of persistent efforts to increase
income with maintaining tight cost controls, it was felt
that the market’s price competition does not provide the
opportunity for profi tability in the foreseeable future.
■ The proposed dividend for 2005 is SEK 3.50 (3.00)
per share.
MSEK 2005 20041 2005
2003 2002 2001
Total sales, MSEK 66,014 59,687 58,850 65,685 60,364
Organic sales growth, % 2 5 3 –3 8 7
Operating income before amortization, MSEK3 4,445 4,026 3,732 4,458 3,855
Operating margin, % 3 6.7 6.7 6.3 6.8 6.4
Income before taxes, MSEK3 3,812 3,384 1,998 2,512 1,902
Free cash fl ow as % of adjusted income 94 93 73 122 80
Return on capital employed, % 16 18 18 21 16
Earnings per share after taxes, SEK4 66,014
5
4,445
6.7
3,812
94
16
7.31
6.79 3.45 4.14 3.27
Free cash fl ow per share, SEK 7.28
6.93 4.94 10.26 5.45
Dividend per share, SEK 3.50
3.00 2.00 2.00 1.50
1 According to IFRS.
2 Adjusted for changes in exchange rates, acquisitions and divestitures.
3 Excluding a capital loss of MSEK –151 from the divestiture of Cash Handling Services in Germany.
4 After taxes, after dilution. For defi nitions and calculations of key ratios, see page 84.
SECURITAS 2005 5