Securitas Annual Report 2007

The Securitas Share
The Securitas share has been listed on the Stockholm Stock Exchange, now OMX Nordic Exchange Stockholm, since 1991. The share is included in the OMX Nordic Exchange’s OMXS and OMXS30 indexes. At the end of 2007 Securitas’ weight in the OMXS index was 0.80 percent (0.87) and in the OMXS30 index 1.19 percent (1.30).
During the year a total of 660 million (672) Securitas shares were traded on the OMX Nordic Exchange, representing a value of SEK 64,006 million (85,433). The turnover rate in 2007 was 190 percent (191), against a turnover rate of 130 percent (148) for the entire OMX Nordic Exchange Stockholm. A trading unit comprises 200 shares. Market capitalization for Securitas at year-end was SEK 31,312 million (38,696).
The share capital amounted to SEK 365,058,897 at December 31, 2007, shared between an equal number of shares, each with a quota value of SEK 1.00. Of these shares, 17,142,600 are Series A shares and 347,916,297 are Series B shares. Each Series A share carries ten votes and each Series B share carries one vote.
Share price performance
In 2007 the market price of the Securitas share fell by 15.9 percent. The OMXS index fell by 7 percent and OMXS30 index fell by 7.1 percent. The lowest price paid for a Securitas share in 2007 was SEK 75 and the highest price paid was SEK 114.
Shareholder structure
At December 31, 2007 Securitas had 27,770 shareholders (33,462), a decrease of 17 percent since 2006. The principal shareholders are Investment AB Latour, which together with SäkI AB, Förvaltnings AB Wasatornet and Karpalunds Ångbryggeri AB holds 11.6 percent (11.4) of the capital and 30.1 percent (30.0) of the votes, and Melker Schörling AB,
which holds 4.7 percent (4.5) of the capital and 11.1 percent (10.9) of the votes. At year-end, institutional investors accounted for more than 90 percent of the total share capital. Shareholders outside Sweden accounted for 38 percent (36) of the capital and 26 percent (25) of the votes.
Distribution of Securitas Systems, Securitas Direct and Loomis
On February 9, 2006, Securitas announced plans to transform three of its divisions, Loomis AB, Securitas Systems AB and Securitas Direct AB, into specialized security com-
panies. The Extraordinary General Meeting of Securitas AB held on September 25, 2006, voted in favor of the Board of Direc-
tors’ proposal that all shares in the wholly-owned subsidiaries Securitas Systems AB and Securitas Direct AB should be distributed to the shareholders and that the companies should be listed on the OMX Nordic Exchange Stockholm. The distribution date was September 29, 2006. For each Series A or Series B share in Securitas, shareholders received one share of the same Series (A or B) in Securitas Systems and in Securitas Direct. Preparations for the listing of Loomis AB are continuing and the plan is for this division to be listed on the OMX Nordic Exchange Stockholm at the end of 2008.
Cash dividend and dividend policy
The Board of Directors and the President propose a dividend of SEK 3.10 (3.10) per share.
With a free cash flow averaging 75–80 percent of adjusted income and a balance sheet 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 flow. The proposed dividend is in line with that objective, 47 percent.
Largest shareholders at December 31, 2007 Source: VPC (the Swedish Central Securities Depository) and changes known to Securitas.
Shareholder A-shares B-shares % of capital % of votes
SäkI AB 8,642,600 4,000,000 3.5 17.4
Investment AB Latour 4,000,000 23,090,000 7.4 12.2
Melker Schörling AB 4,500,000 12,701,500 4.7 11.1
Alecta pension fund 0 34,510,000 9.5 6.6
JP Morgan Chase Bank 0 17,280,884 4.7 3.3
Goldman Sachs International Ltd. 0 13,379,358 3.7 2.6
UBS AG LND IPB 0 10,874,860 3.0 2.1
Morgan Stanley & Co Inc. 0 9,841,587 2.7 1.9
Caceis Bank 0 8,787,281 2.4 1.7
Didner & Gerge aktiefond 0 7,609,000 2.1 1.5
Total largest shareholders 17,142,600 142,074,470 43.61 60.4
1Does not sum up due to data differences in the reports from VPC.      
Shareholder structure at December 31, 2007 Source: VPC (the Swedish Central Securities Depository) and changes known to Securitas.
             
        Number of    
    Number of      
  Number of          
Number of shares shareholders   A-shares B-shares % of capital % of votes
1–500 19,107   0 3,308,271 0.91 0.64
501–1,000 3,974   0 3,328,462 0.91 0.64
1,001–5,000 3,374   0 7,950,004 2.18 1.53
5,001–10,000 481   0 3,626,948 0.99 0.70
10,001–15,000 154   0 1,937,972 0.53 0.37
15,001–20,000 118   0 2,124,727 0.58 0.41
20,001– 561 17,142,600 325,639,413 93.90 95.71
Total 27,7701 17,142,600 347,916,297 100 100
1Does not sum up due to data differences in the reports from VPC.      
Data per share          
SEK/Share 2007 2006 2005 2004 2003
Earnings per share before dilution 4.781 6.001 6.321 5.551 3.66
Earnings per share after dilution 4.781 5.971 6.241 5.471 3.45
Dividend 3.102 3.10 3.503 3.00 3 2.00
Dividend as % of earnings per share 651 521 563 553 58
Yield, % 3.4 2.94 3.93 3.93 2.1
Free cash flow per share 6.61 4.885 6.535 5.465 4.94
Share price at end of period 90.00 106.00 90.005 76.005 97.00
Highest share price 114.00 114.00 93.005 82.005 116.00
Lowest share price 75.00 82.00 73.005 57.005 69.50
Average share price 97.00 98.00 83.005 68.005 93.20
P/E ratio 19 18 145 145 28
Number of shares outstanding (000s) 365,059 365,059 365,059 365,059 365,059
Average number of shares outstanding, after dilution (000s) 369,366 376,165 378,712 382,409 382,417
Number of shares outstanding, after dilution (000s) 365,0596 379,615 375,015 382,409 382,409
1 Calculated before items affecting comparability and for continuing operations. 4 Calculated on proposed dividend. 6 Convertible debenture loan 2002/2007 matured in May 2007 and there is
2 Proposed dividend. 5 Excluding Securitas Systems and Direct. currentently no potential dilution.  
3 Including Securitas Systems and Direct.          
Development of share capital       Development of share capital (cont.)    
Year Transaction No. of shares SEK   Year Transaction No. of shares SEK
1987 Opening capital 200,000 20,000,000   1998 Split 4:12 293,758,772 293,758,772
1989 Non-cash issue 285,714 28,571,400   1998 New issue Raab Karcher 308,114,828 308,114,828
1989 New issue 342,856 34,285,600   1998 New issue Proteg 325,104,472 325,104,472
1989 Split 50:1 17,142,800 34,285,600   1998 Conversion 325,121,812 325,121,812
1989 Stock dividend 17,142,800 85,714,000   1999 Conversion 327,926,707 327,926,707
1992 Rights issue 22,142,800 110,714,000   1999 New issue Pinkerton 355,926,707 355,926,707
1993 Conversion 23,633,450 118,167,250   1999 Conversion 356,318,317 356,318,317
1994 Non-cash issue (Spain) 24,116,450 120,582,250   2001 Conversion3 361,081,321 361,081,321
1996 Split 3:11 72,349,350 120,582,250   2002 Conversion 363,055,906 363,055,906
1996 Rights issue1 72,349,350 144,698,700   2003 Conversion4 365,058,897 365,058,897
1996 Conversion 72,697,739 145,395,478   2004 n/a 365,058,897 365,058,897
1997 Conversion 73,206,315 146,412,630   2005 n/a 365,058,897 365,058,897
1998 Conversion 73,439,693 146,879,386   2006 n/a 365,058,897 365,058,897
1998 Rights issue2 73,439,693 293,758,772   2007 n/a 365,058,897 365,058,897
1A 3:1 split was effected in 1996, as was a stock dividend, changing the par value of the share 3148,200 refers to interim shares registered with the Swedish Patent and Registration Office on
from SEK 5 to SEK 2. A 4:1 split was effected in 1998, as was a stock dividend, changing the par valueof the share January 11, 2002. The 1998/2003 convertible debenture loan was converted on March 31, 2003 except for MSEK 5 that
from SEK 2 to SEK 1.     was not converted. The total number of shares after dilution of all outstanding convertible debenture loans is 375,015,400.
Definitions
Yield: Dividend relative to share price at the end of each year. For 2007, the proposed dividend is used. Free cash flow per share: Free cash flow 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 financial 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.
The Securitas Share
 
The Securitas share has been listed on the Stockholm Stock Exchange, now OMX Nordic Exchange Stockholm, since 1991. The share is included in the OMX Nordic Exchange’s OMXS and OMXS30 indexes. At the end of 2007 Securitas’ weight in the OMXS index was 0.80 percent (0.87) and in the OMXS30 index 1.19 percent (1.30).
 
During the year a total of 660 million (672) Securitas shares were traded on the OMX Nordic Exchange, representing a value of SEK 64,006 million (85,433). The turnover rate in 2007 was 190 percent (191), against a turnover rate of 130 percent (148) for the entire OMX Nordic Exchange Stockholm. A trading unit comprises 200 shares. Market capitalization for Securitas at year-end was SEK 31,312 million (38,696).
 
The share capital amounted to SEK 365,058,897 at December 31, 2007, shared between an equal number of shares, each with a quota value of SEK 1.00. Of these shares, 17,142,600 are Series A shares and 347,916,297 are Series B shares. Each Series A share carries ten votes and each Series B share carries one vote.
 
Share price performance
In 2007 the market price of the Securitas share fell by 15.9 percent. The OMXS index fell by 7 percent and OMXS30 index fell by 7.1 percent. The lowest price paid for a Securitas share in 2007 was SEK 75 and the highest price paid was SEK 114.
 
Shareholder structure
At December 31, 2007 Securitas had 27,770 shareholders (33,462), a decrease of 17 percent since 2006. The principal shareholders are Investment AB Latour, which together with SäkI AB, Förvaltnings AB Wasatornet and Karpalunds Ångbryggeri AB holds 11.6 percent (11.4) of the capital and 30.1 percent (30.0) of the votes, and Melker Schörling AB,
 
which holds 4.7 percent (4.5) of the capital and 11.1 percent (10.9) of the votes. At year-end, institutional investors accounted for more than 90 percent of the total share capital. Shareholders outside Sweden accounted for 38 percent (36) of the capital and 26 percent (25) of the votes.
 
Distribution of Securitas Systems, Securitas Direct and Loomis
On February 9, 2006, Securitas announced plans to transform three of its divisions, Loomis AB, Securitas Systems AB and Securitas Direct AB, into specialized security com-
panies. The Extraordinary General Meeting of Securitas AB held on September 25, 2006, voted in favor of the Board of Direc-

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tors’ proposal that all shares in the wholly-owned subsidiaries Securitas Systems AB and Securitas Direct AB should be distributed to the shareholders and that the companies should be listed on the OMX Nordic Exchange Stockholm. The distribution date was September 29, 2006. For each Series A or Series B share in Securitas, shareholders received one share of the same Series (A or B) in Securitas Systems and in Securitas Direct. Preparations for the listing of Loomis AB are continuing and the plan is for this division to be listed on the OMX Nordic Exchange Stockholm at the end of 2008.
 
Cash dividend and dividend policy
The Board of Directors and the President propose a dividend of SEK 3.10 (3.10) per share.
With a free cash flow averaging 75–80 percent of adjusted income and a balance sheet 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 flow. The proposed dividend is in line with that objective, 47 percent.
 
 

Largest shareholders at December 31, 2007 Source: VPC (the Swedish Central Securities Depository) and changes known to Securitas.
Shareholder A-shares B-shares % of capital % of votes
SäkI AB 8,642,600 4,000,000 3.5 17.4
Investment AB Latour 4,000,000 23,090,000 7.4 12.2
Melker Schörling AB 4,500,000 12,701,500 4.7 11.1
Alecta pension fund 0 34,510,000 9.5 6.6
JP Morgan Chase Bank 0 17,280,884 4.7 3.3
Goldman Sachs International Ltd. 0 13,379,358 3.7 2.6
UBS AG LND IPB 0 10,874,860 3.0 2.1
Morgan Stanley & Co Inc. 0 9,841,587 2.7 1.9
Caceis Bank 0 8,787,281 2.4 1.7
Didner & Gerge aktiefond 0 7,609,000 2.1 1.5
Total largest shareholders 17,142,600 142,074,470 43.61 60.4
1Does not sum up due to data differences in the reports from VPC.      
 

Shareholder structure at December 31, 2007 Source: VPC (the Swedish Central Securities Depository) and changes known to Securitas.
             
        Number of    
    Number of      
  Number of          
Number of shares shareholders   A-shares B-shares % of capital % of votes
1–500 19,107   0 3,308,271 0.91 0.64
501–1,000 3,974   0 3,328,462 0.91 0.64
1,001–5,000 3,374   0 7,950,004 2.18 1.53
5,001–10,000 481   0 3,626,948 0.99 0.70
10,001–15,000 154   0 1,937,972 0.53 0.37
15,001–20,000 118   0 2,124,727 0.58 0.41
20,001– 561 17,142,600 325,639,413 93.90 95.71
Total 27,7701 17,142,600 347,916,297 100 100
1Does not sum up due to data differences in the reports from VPC.      
 

Data per share          
SEK/Share 2007 2006 2005 2004 2003
Earnings per share before dilution 4.781 6.001 6.321 5.551 3.66
Earnings per share after dilution 4.781 5.971 6.241 5.471 3.45
Dividend 3.102 3.10 3.503 3.00 3 2.00
Dividend as % of earnings per share 651 521 563 553 58
Yield, % 3.4 2.94 3.93 3.93 2.1
Free cash flow per share 6.61 4.885 6.535 5.465 4.94
Share price at end of period 90.00 106.00 90.005 76.005 97.00
Highest share price 114.00 114.00 93.005 82.005 116.00
Lowest share price 75.00 82.00 73.005 57.005 69.50
Average share price 97.00 98.00 83.005 68.005 93.20
P/E ratio 19 18 145 145 28
Number of shares outstanding (000s) 365,059 365,059 365,059 365,059 365,059
Average number of shares outstanding, after dilution (000s) 369,366 376,165 378,712 382,409 382,417
Number of shares outstanding, after dilution (000s) 365,0596 379,615 375,015 382,409 382,409
1 Calculated before items affecting comparability and for continuing operations. 4 Calculated on proposed dividend. 6 Convertible debenture loan 2002/2007 matured in May 2007 and there is
2 Proposed dividend. 5 Excluding Securitas Systems and Direct. currentently no potential dilution.  
3 Including Securitas Systems and Direct.          
 

Development of share capital       Development of share capital (cont.)    
Year Transaction No. of shares SEK   Year Transaction No. of shares SEK
1987 Opening capital 200,000 20,000,000   1998 Split 4:12 293,758,772 293,758,772
1989 Non-cash issue 285,714 28,571,400   1998 New issue Raab Karcher 308,114,828 308,114,828
1989 New issue 342,856 34,285,600   1998 New issue Proteg 325,104,472 325,104,472
1989 Split 50:1 17,142,800 34,285,600   1998 Conversion 325,121,812 325,121,812
1989 Stock dividend 17,142,800 85,714,000   1999 Conversion 327,926,707 327,926,707
1992 Rights issue 22,142,800 110,714,000   1999 New issue Pinkerton 355,926,707 355,926,707
1993 Conversion 23,633,450 118,167,250   1999 Conversion 356,318,317 356,318,317
1994 Non-cash issue (Spain) 24,116,450 120,582,250   2001 Conversion3 361,081,321 361,081,321
1996 Split 3:11 72,349,350 120,582,250   2002 Conversion 363,055,906 363,055,906
1996 Rights issue1 72,349,350 144,698,700   2003 Conversion4 365,058,897 365,058,897
1996 Conversion 72,697,739 145,395,478   2004 n/a 365,058,897 365,058,897
1997 Conversion 73,206,315 146,412,630   2005 n/a 365,058,897 365,058,897
1998 Conversion 73,439,693 146,879,386   2006 n/a 365,058,897 365,058,897
1998 Rights issue2 73,439,693 293,758,772   2007 n/a 365,058,897 365,058,897
1A 3:1 split was effected in 1996, as was a stock dividend, changing the par value of the share 3148,200 refers to interim shares registered with the Swedish Patent and Registration Office on
from SEK 5 to SEK 2. A 4:1 split was effected in 1998, as was a stock dividend, changing the par valueof the share January 11, 2002. The 1998/2003 convertible debenture loan was converted on March 31, 2003 except for MSEK 5 that
from SEK 2 to SEK 1.     was not converted. The total number of shares after dilution of all outstanding convertible debenture loans is 375,015,400.
 
Definitions
Yield: Dividend relative to share price at the end of each year. For 2007, the proposed dividend is used. Free cash flow per share: Free cash flow 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 financial 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.