Securitas AB Interim Report January–June 2014

| Source: Securitas AB
• Total sales MSEK 17 120 (16 510)
• Organic sales growth 3 percent (1)
• Operating income before amortization MSEK 788 (809)
• Operating margin 4.6 percent (4.9)
• Earnings per share SEK 1.23 (1.26)

• Total sales MSEK 33 231 (32 370)
• Organic sales growth 2 percent (1)
• Operating income before amortization MSEK 1 526 (1 558)
• Operating margin 4.6 percent (4.8)
• Earnings per share SEK 2.36 (2.30)
• Free cash flow/net debt 0.20 (0.15)

Organic sales growth continues to show a positive trend and all business
segments improved compared to the first half last year. Primarily supported by
the US, the organic sales growth reached 3 percent in the second quarter. In
France we are showing positive organic sales growth in the second quarter, while
organic sales growth in Spain continues to be negative. Latin America continues
to show strong organic sales growth.

Net income improved in the first half year
In real terms, the operating result was slightly behind last year, while
earnings per share improved with 3 percent. The operating margin in Security
Services North America was on the same level as last year and Security Services
Europe is 0.1 percent behind. The positive development in Security Solutions and
Technology continued in Spain but is not yet sufficient to mitigate the
difficult conditions in the guarding business and the labor related charges
imposed by the Spanish Government in December last year. Corrective actions are
continuously taken to adapt to the reduced guarding sales.

Sales of security solutions and technology gradually increasing
In 2012, sales of security solutions and technology represented approximately 6
percent of Group sales. We have set a target to triple this share of sales by
the end of 2015. We continue to invest in resources within security solutions
and technology and the share of sales run rate in the second quarter 2014 was 9

Changing market dynamics creating opportunity for growth
Due to current market dynamics and a gradual increase of the use of technology
in security solutions, the security market in mature markets is no longer
expected to grow 1 to 2 percent faster than GDP as it has historically, but
rather at the same pace as GDP. In the future, this trend could be improved
through increased outsourcing of currently insourced guarding activities and by
allowing the private security industry to take over services performed by public
authorities and governments.

The degree to which technology is being integrated into security solutions
varies from country to country in Securitas’ markets. However, as the pace
accelerates, we are confident that we will be able to gain markets shares by
having a stronger and more cost-efficient offering than many traditional
guarding companies. We have already seen proof of this in markets where we are
well equipped to offer security solutions, where we will be able to grow faster
than the security market average.

Alf Göransson
President and Chief Executive Officer


Analysts and media are invited to participate in a telephone conference on
August 5, 2014 at 09:30 a.m. (CET) where Securitas CEO Alf Göransson will
present the report and answer questions. The telephone conference will also be
audio cast live via Securitas web. No information meeting will take place at
Securitas headquarters at Lindhagensplan in Stockholm. To participate in the
telephone conference, please dial in five minutes prior to the start of the
conference call:

The United States: + 1 855 269 2605
Sweden: + 46 (0) 8 519 993 55
United Kingdom: + 44 (0) 203 194 0550

To follow the audio cast of the telephone conference via the web, please follow
the link A recorded version of the audio cast will be
at after the telephone conference.


Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013

Gisela Lindstrand, Senior Vice President Corporate Communications and Public
Affairs, + 46 10 470 3011


Securitas is a knowledge leader in security and operates in North America,
Europe, Latin America, the Middle East, Asia and Africa. The organization is
flat and decentralized with three business segments: Security Services North
America, Security Services Europe and Security Services Ibero-America. Securitas
serves a wide range of customers in a variety of industries and customer
segments, and the customers vary from the shop on the corner to global
multi­billion industries. The services provided are specialized guarding and
mobile services, monitoring, technical solutions and consulting and
investigations. Securitas can respond to the unique and specific security
challenges facing its customers, and tailor its offering according to their
specific industry demands. Securitas employs close to 310 000 people in 52
countries. Securitas is listed in the Large Cap segment at NASDAQ OMX Stockholm.

Group financial targets
Securitas focuses on two financial targets. The first target relates to the
statement of income: an average growth of earnings per share of 10 percent
annually. The second target relates to the balance sheet: free cash flow in
relation to net debt of at least 0.20.

Group strategy
Our strategy is to offer complete security solutions that integrate all of our
areas of competence. Together with our customers, we develop optimal and cost
-efficient solutions that are suited for the customers’ needs. This brings added
value to the customers and results in stronger, more long-term customer
relationships and improved profitability.

Securitas AB discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.00 a.m. (CET) on Tuesday, August
5, 2014.