Securitas Annual Report 2007

Statement of income        
MSEK Note 2007 2006 2005
Continuing operations        
Sales   61,551.8 59,552.5 56,801.1
Sales, acquired business   1,355.8 970.5 1,399.5
Total sales 9, 10 62,907.6 60,523.0 58,200.6
         
Production expenses 11, 12, 13 –51,135.5 –49,029.8 –46,781.8
Gross income   11,772.1 11,493.2 11,418.8
         
Selling and administrative expenses 11, 12, 13 –8,608.3 –7,907.0 –7,892.8
Other operating income 10 18.2 4.9
Share in income of associated companies 21 0.3
Amortization and impairment of acquisition related intangible assets 18 –458.0 –93.3 –98.1
Acquisition related restructuring costs   –39.0 –0.4 –1.1
Items affecting comparability 4, 11 –718.1 –2,060.2 –150.6
Operating income   1,967.2 1,437.2 3,276.2
         
Financial income 14 356.0 449.1 303.7
Financial expense 14 –927.9 –1,004.7 –750.7
Share in income of associated companies 14, 21 2.2 1.2 11.8
Income before taxes   1,397.5 882.8 2,841.0
         
Taxes 15 –871.5 –369.3 –683.0
Net income for the year, continuing operations   526.0 513.5 2,158.0
Net income for the year, discontinued operations 39 338.5 555.7
Net income for the year, all operations   526.0 852.0 2,713.7
         
Whereof attributable to:        
Equity holders of the Parent Company   524.4 850.4 2,712.2
Minority interest   1.6 1.6 1.5
         
Average number of shares before dilution   365,058,897 365,058,897 365,058,897
Average number of shares after dilution   369,365,776 376,165,189 378,712,105
         
Earnings per share before dilution, continuing operations (SEK)   1.44 1.41 5.91
Earnings per share before dilution, discontinued operations (SEK)   0.92 1.52
Earnings per share before dilution, all operations (SEK) 3 1.44 2.33 7.43
         
Earnings per share after dilution, continuing operations (SEK)   1.44 1.41 5.84
Earnings per share after dilution, discontinued operations (SEK)   0.90 1.47
Earnings per share after dilution, all operations (SEK) 3 1.44 2.31 7.31
         
Earnings per share before dilution and before items affecting comparability, continuing operations (SEK) 3 4.78 6.00 6.32
Earnings per share after dilution and before items affecting comparability, continuing operations (SEK) 3 4.78 5.97 6.24
Securitas’ financial model – consolidated statement of income      
Supplementary information      
MSEK 2007 2006 2005
Continuing operations      
Sales 61,551.8 59,552.5 56,801.1
Sales, acquired business 1,355.8 970.5 1,399.5
Total sales 62,907.6 60,523.0 58,200.6
Organic sales growth, % 5 6 4
Production expenses –51,135.5 –49,029.8 –46,781.8
Gross income 11,772.1 11,493.2 11,418.8
Gross margin, % 18.7 19.0 19.6
Expenses for branch offices –4,100,4 –3,991.1 –3,877.6
Other selling and administrative expenses –4,507,9 –3,915.9 –4,015.2
Total expenses –8,608.3 –7,907.0 –7,892.8
Other operating income 18.2 4.9
Share in income of associated companies 0.3
Operating income before amortization 3,182.3 3,591.1 3,526.0
Operating margin, % 5.1 5.9 6.1
Amortization and impairment of acquisition related intangible assets –458.0 –93.3 –98.1
Acquisition related restructuring costs –39.0 –0.4 –1.1
Items affecting comparability –718.1 –2,060.2 –150.6
Operating income after amortization 1,967.2 1,437.2 3,276.2
Financial income and expenses excluding revaluation of financial instruments –565.2 –519.8 –483.2
Revaluation of financial instruments –6.7 –35.8 36.2
Share of income in associated companies 2.2 1.2 11.8
Income before taxes 1,397.5 882.8 2,841.0
Net margin, % 2.2 1.5 4.9
Taxes –871.5 –369.3 –683.0
Net income for the year, continuing operations 526.0 513.5 2,158.0
Net income for the year, discontinued operations 338.5 555.7
Net income for the year, all operations 526.0 852.0 2,713.7
Securitas’ financial model is described on page 25–28. n Operating items. n Net debt-related items. n Goodwill, taxes and non-operating items. n Items related to shareholders’ equity.
Statement of cash flow        
MSEK Note 2007 2006 2005
Operations        
Operating income   1,967.2 1,437.2 3,276.2
Adjustment for effect on cash flow of items affecting comparability 11 154.1 1,930.9 170.1
Reversal of depreciation and impairment losses 18, 19, 20 1,906.0 1,571.2 1,607.8
Financial items received   337.8 697.5 246.1
Financial items paid   –843.3 –1,213.6 –691.4
Current taxes paid   –656.7 –769.0 –796.9
Change in accounts receivable   –832.8 –702.6 –311.8
Payments from provisions for restructuring   –3.2
Change in other operating capital employed   1,351.9 210.5 399.9
Cash flow from operations, continuing operations   3,384.2 3,162.1 3,896.8
Cash flow from operations, discontinued operations 39 563.4 965.9
Cash flow from operations, all operations   3,384.2 3,725.5 4,862.7
         
Investing activities        
Investments in fixed assets   –1,574.8 –1,511.8 –1,496.0
Acquisition of subsidiaries 16 –862.8 –360.8 –858.2
Cash flow from investing activities, continuing operations   –2,437.6 –1,872.6 –2,354.2
Cash flow from investing activities, discontinued operations 39 –676.4 –1,060.6
Cash flow from investing activities, all operations   –2,437.6 –2,549.0 –3,414.8
         
Financing activities        
Dividend paid to shareholders of the Parent Company   –1,131.7 –1,277.7 –1,095.2
Redemption and premature redemption of convertible debenture loans   –2,363.1 –1,780.0
Redemption of bond loans   –3,240.1
Proceeds from other long-term borrowings   4,005.1
Change in other interest-bearing net debt excluding liquid assets   1,235.6 3,411.5 –438.3
Cash flow from financing activities, continuing operations   1,745.9 –1,106.3 –3,313.5
Cash flow from financing activities, discontinued operations 39 –1,138.0 2,120.9
Cash flow from financing activities, all operations   1,745.9 –2,244.3 –1,192.6
         
Cash flow for the year   2,692.5 –1,067.8 255.3
Liquid funds at beginning of year   1,668.0 3,470.8 3,120.4
Translation differences on liquid funds   –9.8 –95.5 95.1
Effect on liquid funds of discontinued operations 39 –639.5
Liquid funds at year-end 28 4,350.7 1,668.0 3,470.8
Supplementary information Change in interest-bearing net debt in 2007              
               
  Opening balance 2007 Cash Flow for the year, all operations Change in loans¹, all operations financial instruments, all operations   Translation differences, all operations  Effect of discontinued operations Closing balance 2007
Liquid funds 1,668.0 2,692.5 –9.8 4,350.7
Other net debt –11,402.6 –2,877.6 –35.2 86.7 –14,228.7
Interest-bearing net debt –9,734.6 2,692.5 –2,877.6 –35.2 76.9 –9,878.0
1Refers to the net effect of the redemption of convertible debenture loans MSEK 2,363.1, proceeds from other long-term borrowings MSEK –4,005.1 and change in other interest-bearing net debt excluding liquid funds, MSEK –1,235.6.    
Securitas’ financial model – consolidated statement of cash flow      
Supplementary information      
MSEK 2007 2006 2005
Continuing operations      
Operating income before amortization 3,182.3 3,591.1 3,526.0
Investments in fixed assets –1,574.8 –1,511.8 –1,496.0
Reversal of depreciation 1,448.0 1,477.9 1,509.7
Net investments in fixed assets –126.8 –33.9 13.7
Change in accounts receivable –832.8 –702.6 –311.8
Change in other operating capital employed 1,351.9 210.5 399.9
Cash flow from operating activities 3,574.6 3,065.1 3,627.8
Cash flow from operating activities as % of operating income before amortization 112 85 103
Financial income and expenses paid –505.5 –516.1 –445.3
Current taxes paid –656.7 –769.0 –796.9
Free cash flow 2,412.4 1,780.0 2,385.6
Free cash flow as % of adjusted income 115 75 105
Acquisitions of subsidiaries –862.8 –360.8 –858.2
Acquisition related restructuring costs paid –39.0 –0.4 –1.1
Payments from provisions for restructuring –3.2
Cash flow for items affecting comparability –564.0 –129.3 19.5
Cash flow from financing activities 1,745.9 –1,106.3 –3,313.5
Cash flow for the year, continuing operations 2,692.5 183.2 –1,770.9
Cash flow for the year, discontinued operations –1,251.0 2,026.2
Cash flow for the year, all operations 2,692.5 –1,067.8 255.3
Securitas’ financial model is described on page 25–28. n Operating items. n Net debt-related items. n Goodwill, taxes and non-operating items. n Items related to shareholders’ equity.

Statement of income        
MSEK Note 2007 2006 2005
Continuing operations        
Sales   61,551.8 59,552.5 56,801.1
Sales, acquired business   1,355.8 970.5 1,399.5
Total sales 9, 10 62,907.6 60,523.0 58,200.6
         
Production expenses 11, 12, 13 –51,135.5 –49,029.8 –46,781.8
Gross income   11,772.1 11,493.2 11,418.8
         
Selling and administrative expenses 11, 12, 13 –8,608.3 –7,907.0 –7,892.8
Other operating income 10 18.2 4.9
Share in income of associated companies 21 0.3
Amortization and impairment of acquisition related intangible assets 18 –458.0 –93.3 –98.1
Acquisition related restructuring costs   –39.0 –0.4 –1.1
Items affecting comparability 4, 11 –718.1 –2,060.2 –150.6
Operating income   1,967.2 1,437.2 3,276.2
         
Financial income 14 356.0 449.1 303.7
Financial expense 14 –927.9 –1,004.7 –750.7
Share in income of associated companies 14, 21 2.2 1.2 11.8
Income before taxes   1,397.5 882.8 2,841.0
         
Taxes 15 –871.5 –369.3 –683.0
Net income for the year, continuing operations   526.0 513.5 2,158.0
Net income for the year, discontinued operations 39 338.5 555.7
Net income for the year, all operations   526.0 852.0 2,713.7
         
Whereof attributable to:        
Equity holders of the Parent Company   524.4 850.4 2,712.2
Minority interest   1.6 1.6 1.5
         
Average number of shares before dilution   365,058,897 365,058,897 365,058,897
Average number of shares after dilution   369,365,776 376,165,189 378,712,105
         
Earnings per share before dilution, continuing operations (SEK)   1.44 1.41 5.91
Earnings per share before dilution, discontinued operations (SEK)   0.92 1.52
Earnings per share before dilution, all operations (SEK) 3 1.44 2.33 7.43
         
Earnings per share after dilution, continuing operations (SEK)   1.44 1.41 5.84
Earnings per share after dilution, discontinued operations (SEK)   0.90 1.47
Earnings per share after dilution, all operations (SEK) 3 1.44 2.31 7.31
         
Earnings per share before dilution and before items affecting comparability, continuing operations (SEK) 3 4.78 6.00 6.32
Earnings per share after dilution and before items affecting comparability, continuing operations (SEK) 3 4.78 5.97 6.24
 

Securitas’ financial model – consolidated statement of income      
Supplementary information      
MSEK 2007 2006 2005
Continuing operations      
Sales 61,551.8 59,552.5 56,801.1
Sales, acquired business 1,355.8 970.5 1,399.5
Total sales 62,907.6 60,523.0 58,200.6
Organic sales growth, % 5 6 4
Production expenses –51,135.5 –49,029.8 –46,781.8
Gross income 11,772.1 11,493.2 11,418.8
Gross margin, % 18.7 19.0 19.6
Expenses for branch offices –4,100,4 –3,991.1 –3,877.6
Other selling and administrative expenses –4,507,9 –3,915.9 –4,015.2
Total expenses –8,608.3 –7,907.0 –7,892.8
Other operating income 18.2 4.9
Share in income of associated companies 0.3
Operating income before amortization 3,182.3 3,591.1 3,526.0
Operating margin, % 5.1 5.9 6.1
Amortization and impairment of acquisition related intangible assets –458.0 –93.3 –98.1
Acquisition related restructuring costs –39.0 –0.4 –1.1
Items affecting comparability –718.1 –2,060.2 –150.6
Operating income after amortization 1,967.2 1,437.2 3,276.2
Financial income and expenses excluding revaluation of financial instruments –565.2 –519.8 –483.2
Revaluation of financial instruments –6.7 –35.8 36.2
Share of income in associated companies 2.2 1.2 11.8
Income before taxes 1,397.5 882.8 2,841.0
Net margin, % 2.2 1.5 4.9
Taxes –871.5 –369.3 –683.0
Net income for the year, continuing operations 526.0 513.5 2,158.0
Net income for the year, discontinued operations 338.5 555.7
Net income for the year, all operations 526.0 852.0 2,713.7
Securitas’ financial model is described on page 25–28. n Operating items. n Net debt-related items. n Goodwill, taxes and non-operating items. n Items related to shareholders’ equity.

Page 47

 

Statement of cash flow        
MSEK Note 2007 2006 2005
Operations        
Operating income   1,967.2 1,437.2 3,276.2
Adjustment for effect on cash flow of items affecting comparability 11 154.1 1,930.9 170.1
Reversal of depreciation and impairment losses 18, 19, 20 1,906.0 1,571.2 1,607.8
Financial items received   337.8 697.5 246.1
Financial items paid   –843.3 –1,213.6 –691.4
Current taxes paid   –656.7 –769.0 –796.9
Change in accounts receivable   –832.8 –702.6 –311.8
Payments from provisions for restructuring   –3.2
Change in other operating capital employed   1,351.9 210.5 399.9
Cash flow from operations, continuing operations   3,384.2 3,162.1 3,896.8
Cash flow from operations, discontinued operations 39 563.4 965.9
Cash flow from operations, all operations   3,384.2 3,725.5 4,862.7
         
Investing activities        
Investments in fixed assets   –1,574.8 –1,511.8 –1,496.0
Acquisition of subsidiaries 16 –862.8 –360.8 –858.2
Cash flow from investing activities, continuing operations   –2,437.6 –1,872.6 –2,354.2
Cash flow from investing activities, discontinued operations 39 –676.4 –1,060.6
Cash flow from investing activities, all operations   –2,437.6 –2,549.0 –3,414.8
         
Financing activities        
Dividend paid to shareholders of the Parent Company   –1,131.7 –1,277.7 –1,095.2
Redemption and premature redemption of convertible debenture loans   –2,363.1 –1,780.0
Redemption of bond loans   –3,240.1
Proceeds from other long-term borrowings   4,005.1
Change in other interest-bearing net debt excluding liquid assets   1,235.6 3,411.5 –438.3
Cash flow from financing activities, continuing operations   1,745.9 –1,106.3 –3,313.5
Cash flow from financing activities, discontinued operations 39 –1,138.0 2,120.9
Cash flow from financing activities, all operations   1,745.9 –2,244.3 –1,192.6
         
Cash flow for the year   2,692.5 –1,067.8 255.3
Liquid funds at beginning of year   1,668.0 3,470.8 3,120.4
Translation differences on liquid funds   –9.8 –95.5 95.1
Effect on liquid funds of discontinued operations 39 –639.5
Liquid funds at year-end 28 4,350.7 1,668.0 3,470.8
 

Supplementary information Change in interest-bearing net debt in 2007              
               
  Opening balance 2007 Cash Flow for the year, all operations Change in loans¹, all operations financial instruments, all operations   Translation differences, all operations  Effect of discontinued operations Closing balance 2007
Liquid funds 1,668.0 2,692.5 –9.8 4,350.7
Other net debt –11,402.6 –2,877.6 –35.2 86.7 –14,228.7
Interest-bearing net debt –9,734.6 2,692.5 –2,877.6 –35.2 76.9 –9,878.0
1Refers to the net effect of the redemption of convertible debenture loans MSEK 2,363.1, proceeds from other long-term borrowings MSEK –4,005.1 and change in other interest-bearing net debt excluding liquid funds, MSEK –1,235.6.    
 

Securitas’ financial model – consolidated statement of cash flow      
Supplementary information      
MSEK 2007 2006 2005
Continuing operations      
Operating income before amortization 3,182.3 3,591.1 3,526.0
Investments in fixed assets –1,574.8 –1,511.8 –1,496.0
Reversal of depreciation 1,448.0 1,477.9 1,509.7
Net investments in fixed assets –126.8 –33.9 13.7
Change in accounts receivable –832.8 –702.6 –311.8
Change in other operating capital employed 1,351.9 210.5 399.9
Cash flow from operating activities 3,574.6 3,065.1 3,627.8
Cash flow from operating activities as % of operating income before amortization 112 85 103
Financial income and expenses paid –505.5 –516.1 –445.3
Current taxes paid –656.7 –769.0 –796.9
Free cash flow 2,412.4 1,780.0 2,385.6
Free cash flow as % of adjusted income 115 75 105
Acquisitions of subsidiaries –862.8 –360.8 –858.2
Acquisition related restructuring costs paid –39.0 –0.4 –1.1
Payments from provisions for restructuring –3.2
Cash flow for items affecting comparability –564.0 –129.3 19.5
Cash flow from financing activities 1,745.9 –1,106.3 –3,313.5
Cash flow for the year, continuing operations 2,692.5 183.2 –1,770.9
Cash flow for the year, discontinued operations –1,251.0 2,026.2
Cash flow for the year, all operations 2,692.5 –1,067.8 255.3
Securitas’ financial model is described on page 25–28. n Operating items. n Net debt-related items. n Goodwill, taxes and non-operating items. n Items related to shareholders’ equity.