Anticimex Annual Report 2018

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NORTH AMERICA North America North America is the world’s largest pest control market, valued at some SEK 90 billion. It is also highly fragmented, dominated by more than 20,000 small, often family-owned businesses. This presents Anticimex with good acquisition opportunities. In 2018, Anticimex more than doubled its size in North America by growing organically and completing 13 acquisitions. Revenue grew from SEK 410 million to SEK 963 million – an increase close to 140 percent. North America’s revenue now represents 15 percent of the group’s total revenue. 990 employees 2018 REVENUE SEK 963 MILLION, +137% SEK million 1,200 1,000 800 600 400 200 16 17 18 SHARE OF GROUP REVENUE 15% REVENUE BY BUSINESS RELATION 26% REVENUE BY SERVICE LINE 85% 74% 100% North America Other Contracts and insurance Jobs Pest Control 32 ANTICIMEX GROUP — ANNUAL REPORT 2018
NORTH AMERICA More than doubled in size In 2018, Anticimex more than doubled its business in the North American market by continuing its ambitious expansion strategy for the region with two new platform acquisitions and eleven bolt-on transactions. Revenue grew from SEK 410 million to SEK 963 million, an increase close to 140 percent. Along with delivering strong growth, the region also expanded its margin as the growth contributed to higher density, while increased density enabled better route planning and thereby also increased efficiency. Since its first expansion into the high potential North American market in 2016, Anticimex has taken a number of significant steps towards the goal to become one of the leading pest control companies in the region. During the year, Anticimex acquired a further two companies operating as platforms. This meant that the company expanded its footprint in the region by entering two new geographical areas. Turner Pest Control is based in Jacksonville, Florida, while Killingsworth Environmental has its operations in Charlotte, North Carolina. Thereby, Anticimex’s operations now cover the east coast from Maine to Florida. A total of eleven strategic bolt-on companies were acquired during the year. At the end of the year, American Pest completed the bolt-on acquisition of TripleS and Innovative Pest Management. Thereby the presence in the Mid-Atlantic region was further strengthened. The high activity in the region during the year resulted in strong revenue growth and has created a good foundation for continued future expansion in this important region. The region expanded its margins in 2018 as the geographical expansion contributed to higher density, with increased density enabling better route planning and thereby also increasing efficiency. During the year, focus was also on developing cooperation, competition, sharing best practices and benchmarking between the platforms, something that contributed to increased efficiency and higher margins. This work will continue in 2019. SMART was launched during the second half of the year. The concept for digital pest control got off to a successful start as Anticimex won several SMART contracts in a wide-range of business segments. Anticimex will continue the roll out of SMART in the region, not only for commercial customers but also for the residential market, where Anticimex sees further potential. Market trends North America is the world’s largest pest control market, valued at approximately SEK 90 billion. It is highly fragmented, largely consisting of a great number of small, often family-owned businesses. The total number of pest control companies in North America is estimated at more than 20,000, providing vast opportunities for sustainable growth. The North American market is demonstrating stable underlying growth of an estimated 5 percent per year, driven by the same factors as in many other parts of the world; e.g. urbanisation resulting in an expanding pest population, an increasing demand for non-toxic solutions, less tolerance for pests and increasing willingness to buy pest control services instead of “do-it-yourself”. The market is distinguished ANTICIMEX GROUP — ANNUAL REPORT 2018 33
Page 1 and 2: Annual Report 2018 Fun fact (or not
Page 3 and 4: n Anticimex is a global leader in p
Page 5 and 6: ANTICIMEX AT A GLANCE Smart Connect
Page 7 and 8: 2018 IN BRIEF The operations are or
Page 9 and 10: A MESSAGE FROM THE CEO “In order
Page 11 and 12: A MESSAGE FROM THE CEO ”The most
Page 13 and 14: MARKET 4. Economic and population g
Page 15 and 16: MARKET Market key figures MARKET PO
Page 17 and 18: VISION & STRATEGY Goals by 2021 Rev
Page 19 and 20: VISION & STRATEGY - If you don’t
Page 21 and 22: VISION & STRATEGY Mette Therkildsen
Page 23 and 24: VISION & STRATEGY - Much of our rap
Page 25 and 26: VISION & STRATEGY - Modern Pest has
Page 27 and 28: VISION & STRATEGY Anticimex annuall
Page 29 and 30: SERVICE OFFERING BUILDING ENVIRONME
Page 31 and 32: EUROPE Further expansion in an esta
Page 33: EUROPE Demand for pest control in E
Page 37 and 38: NORTH AMERICA During 2018, Turner P
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Page 41 and 42: ASIA PACIFIC Smart Catch - a single
Page 43 and 44: DIRECTORS’ REPORT Directors’ Re
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Page 49 and 50: DIRECTORS’ REPORT Financial risks
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NOTES Note 23 cont. The table below
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NOTES NOTE 26 Other provisions Grou
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NOTES NOTE 27 Accrued expenses and
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SIGNATURES Signatures The Board of
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AUDITOR’S REPORT Directors and th
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CORPORATE GOVERNANCE REPORT Corpora
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CORPORATE GOVERNANCE REPORT satisfa
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BOARD OF DIRECTORS Per Franzén Boa
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EXECUTIVE GROUP MANAGEMENT Mikael V
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ADDRESSES Addresses Anticimex Group
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ABOUT ANTICIMEX Anticimex is the mo
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Anticimex Annual Report 2018

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