Securitas Direct AB: Interim report 1 January-30 September 2007



* Net addition of 30,143 new customers in the third quarter
  * Payback period for investments in new customers of 4.1 years in
    the third quarter
  * 14,089 customer cancellations in the third quarter


SALES AND INCOME  NOTE THAT COMPARATIVE FIGURES ARE PRO FORMA

                          Jul-Sep 07 Jul-Sep 06 Jan-Sep 07 Jan-Sep 06
Net sales, SEK thousand      953,732
                                        826,378  2,814,942  2,435,035
Sales growth adjusted for
currency effects, %               15         21         16         23
Operating profit, SEK         80,937     55,426    221,417    163,386
thousand
Operating margin, %              8.5        6.7        7.9        6.7
Net profit for the            54,088     35,004    144,532    105,159
period, SEK thousand
Earnings per share, SEK         0.15       0.10       0.40       0.29


OPERATING TARGETS

  * Net customer portfolio growth was 16.2[1] % (22.4[2])
  * Payback period for investments in new customers was 4.1 years
    (3.8)
  * Cancellation rate was 6.9[1] % (5.7)

[1] Net growth and the cancellation rate have been adjusted for 6,419
cancellations which arose during the second quarter of 2007 and do
not affect income.
[2] Adjusted for sale of 4,174 monitored alarms to Securitas Group
during the second quarter of 2006.

Customer cancellations and net growth are based on 12-month rolling
figures and the payback period is for the year to date.

PRESIDENT'S COMMENTS
During the quarter we recorded a gross gain of around 44,000 new
customers. This underlines the strength of the business, especially
considering that we have reduced our use of indirect sales channels
and seen a general decrease in sales to the house and home segment in
Spain.
Our most important measure of long-term value creation - customer
cancellations - continues to move in the right direction.
Cancellations totalled approximately 14,000 during the third quarter,
which was in line with our expectations. Cancellations stabilised at
the start of the year and it is my belief that we will now see a
reversal of the upward trend on a 12-month basis.
On a net basis, more than 30,000 customers joined the portfolio
during the third quarter, and in the last 12 months the net gain
exceeded 128,000, to reach a total of 919,000 customers. The mix of
new customers has shifted somewhat to small businesses, offsetting
lower sales to households to some degree.
The market remains slightly sluggish and we have sensed a lower level
of activity from our competitors on the household side in some
geographical areas.
Our long-term drive to introduce higher levels of efficiency and
quality in the customer portfolio delivered a continued improvement
in the net contribution per customer as against previous quarters.
Higher sales and marketing costs during late summer increased the
per-customer acquisition cost, though the impact on the payback
period during the third quarter was only marginal.
With cancellations at a more stable level, my earlier forecast of net
portfolio growth exceeding 15% for the full year still holds firm.
And with an operating margin for the first nine months of 7.9% we are
starting to approach our long-term target level of 8-10%. Greater
stability and strength in the customer portfolio gives us a good
platform for meeting the challenge of developing the market and
increasing sales volumes.

GROUP KEY DATA

OPERATING
                                 30 September 30 September
                                         2006         2007
Cancellation rate, %                   6.9[1]          5.7
Payback period, years                     4.1          3.8
Net customer portfolio growth, %     16.2 [1]     22.4 [2]
Customer portfolio                    918,792      796,845


[1] Net growth and the cancellation rate have been adjusted for 6,419
cancellations which arose during the second quarter of 2007 and do
not affect income.
Including these, net growth and customer cancellations were 15.3% and
7.7% respectively.
[2] Adjusted for sale of 4,174 monitored alarms to Securitas Group
during the second quarter of 2006.
Customer cancellations and net growth are based on 12-month rolling
figures and the payback period is for the year to date.

FINANCIAL
                                   July-September   January-September
SEK thousand                       2007      2006      2007      2006
Net sales                       953,732   826,378 2,814,942 2,435,035
Sales growth                         15        21        16        23
adjusted for
currency effects, %
Operating profit                 80,937    55,426   221,417   163,386
Operating margin, %                 8.5       6.7       7.9       6.7
EBITDA                          202,420   157,701   572,231   455,352
EBITDA margin, %                   21.2      19.1      20.3      18.7
Net profit for the               54,088    35,004   144,532   105,159
period
Earnings per share,                0.15     0.10       0.40      0.29
SEK
Capital employed                     --       --  1,642,340 1,545,046
Return on capital                    --       --         17        14
employed, %
Net cash/debt                        --       --      1,123  -107,280
Free cash flow                   29,662 -104,207    119,252  -263,572

Note that comparative figures are pro forma. Details of the
adjustments in the pro forma accounts are shown on page 36 of the
Prospectus for Distribution and Listing of Shares 2006, published in
September 2006 and available for download at
www.securitas-direct.com. The balance sheet and cash flow data relate
to actual outcomes.

TARGETS AND OUTLOOK
Securitas Direct has three long-term operating targets:

  * Cancellation rate of less than 6% per year
  * Payback period for investments in new customers of less than 4
    years
  * Net customer portfolio growth exceeding 20% per year

Securitas Direct's growth strategy is based on long-term value
creation, and the aim is that growth should not be at the expense of
a higher cancellation rate or longer payback period. Hence, the
Group's targets for the cancellation rate and payback period take
precedence over customer portfolio growth.
Management's expectations for the full year are that: net customer
portfolio growth will exceed 15%; the repayment period will be
slightly above the long-term target level of 4 years; the operating
margin will exceed 7.5%; and free cash flow will be positive.
Management also expects the number of cancellations for the fourth
quarter to be in line with the third quarter figure.

BRIEFING AND CONFERENCE CALL
A briefing on the third quarter results will be held on 7 November
2007 at 09:00 CET at the Radisson SAS Strand Hotel, Nybrokajen 9,
Stockholm.
If you wish to follow a webcast of the briefing, please visit the
Investors and Media section at www.securitas-direct.com.
If you would like to follow the briefing by phone and participate in
the Q&A session, please call +44 (0)20 7162 0025, allowing yourself
10 minutes for registration.
The full agenda is contained in a press release issued on 30 October.
A recording of the briefing will be posted on the Securitas Direct
website.

FOR FURTHER INFORMATION CONTACT
Dick Seger, President and CEO, tel +46 (0)708 218817
Lars Andersson, CFO, tel +46 (0)706 327580
Michael Peterson, Investor and Media Relations Manager, tel +46
(0)733 221814
e-mail: ir@securitas-direct.com, www.securitas-direct.com

Attachments

Interim report January-September 2007