Securitas Debt Investor Presentation

November 15, 2013

Content

• Securitas in Brief

• Business Strategy

• Business Area Overview

• Financial Highlights and Debt Overview

Securitas in Brief

Securitas in Brief

Industry know-how within many different customer segments

• Securitas services a wide range of customers in a variety of industries and customer segments, and the customers vary from the shop on the corner to multibillion industries

• The services provided are specialized guarding and mobile services, monitoring, technical solutions and consulting and investigations

• Our strategy is to offer optimal and cost-efficient security solutions integrating all of our areas of competence, that brings added value to the customers and resulting in stronger customer relationships and improved profitability

52 Countries and over 300,000 Employees

Security Services North America (9M 2013)Sales, MSEK 17 117Operating margin, % 5.1Employees 109 000

Security Services Europe (9M 2013)Sales, MSEK 24 273Operating margin, % 5.9Employees 120 000

Security Services Ibero-America (9M 2013)Sales, MSEK 6 932Operating margin, % 5.4Employees 58 000

New MarketsEmployees 31 000

The presentation currency of the Group is Swedish Krona, SEK. FX rate EUR/SEK: 8.66 as of September 30, 2013.

Financial Overview

Sales & Income 2009 2010 2011* 2012* 9M 2012* 9M 2013Sales, MSEK 62 667 61 340 64 057 66 458 49 707 48 975

Organic sales growth, % -1 1 3 0 0 1

Acquired sales growth 3 4 8 4 5 1

= Real sales growth, % 2 5 11 4 5 2

Operating income 3 757 3 724 3 335 3 028 2 286 2 450

Operating margin, % 6.0 6.1 5.2 4.6 4.6 5.0

Debt ratios 2009 2010 2011* 2012* 9M 2012* 9M 2013Free Cash Flow/Net Debt 0.26x 0.24x 0.08x 0.21x 0.12x 0.26x

Interest Coverage 6.1x 7.4x 6.0x 4.9x 5.3x 6.6x

Net Debt Equity Ratio 0.95 0.92 1.12 1.15 1.33 1.18

Note : Ratio calculations are outlined in Securitas Annual Report – Note 3.

* Restated for IAS19 revised

Cash flow 2013 vs. 2012

MSEK Q3 2013 Q3 2012 9M 2013 9M 2012Operating income before amortization* 892 849 2 450 2 286Investments in non-current tangible and intangible assets -152 -254 -573 -774Reversal of depreciation 231 231 706 708Change in accounts receivable 45 -410 -142 -299Change in other operating capital employed* 533 235 -446 -433Cash flow from operating activities 1 549 651 1 995 1 488Cash flow from operating activities, % 174 77 81 65Financial income and expenses paid -63 -88 -483 -474Current taxes paid -131 -102 -407 -467Free cash flow 1 355 461 1 105 547As % of adjusted income 217 86 66 38Free cash flow to net debt - - 0.26 0.12

* Comparatives have been restated as an effect of a change in accounting principle IAS 19 (revised).

A Strong Credit Investment Rationale

Predictable debt service underpinned by stable cash flows

• Contract business provide for good and long customer relations• No dependency on large customers• Services provided to most sectors in society including governments, utilities, financial,

travel, logistics and industrial• Customer base widely dispersed geographically, diversification spreads risks• Very high customer retention rates• Strong brand and premium position in business

Commitment to financial policies in line with solid investment grade ratingGrowth opportunities can be pursued without compromising credit profileStrong financial flexibility based on strong drivers

• Flexible cost base• Capex needs are low, with the exception of technological acquisitions that are in line with

the strategy• Liquidity secured through cash flow stability and unutilised committed credit lines

Business Strategy

• Created one European Division, including guarding, mobile, monitoring and technology solutions.

• In Security Services North America, reduced the number of geographical regions in the US.

• Implemented cost-savings program in Spain.

• Appointed Chief Technology Officers in all major countries.

• Established a Group Center of Excellence in Remote Video Solutions in Malmö, Sweden.

Actions already taken

1 Integrated security solutions • Offer complete security solutions that integrate all

areas of competence and result in improved margins, optimal customer solutions and stronger, more long-term customer relationships.

2 Restructuring and cost savings• A restructuring project and cost savings program

started in October 2012 in all divisions which is expected to improve the operating income by MSEK 370 in 2013.

Strategy

3 Restrictive with acquisitions • With the exception of technological operations that

create synergies and acquisitions that strengthen our position in growth markets.

4 Healthcare reform in the USA a challenge• The major challenge in the USA in 2013 is handling

the requirements of the Affordable Care Act, which will affect Securitas as of 2015.

• To be prepared, Securitas is executing significant investments and training efforts in the USA in 2013 and 2014.

Strategy

• Sales of security solutions and technology 6% of Group sales in 2012 and 7.5% in Q3 2013 – target to triple share by end of 2015

• We will continue to selectively acquire technology operations to build and strengthen our technology platform

Focus areas in 2013 – Technology investments

Guarding

Specialized Guarding

Guarding Solutions

Security Solutions

4%*

6%*

8%*

10%*

Optimal SecuritySolution

Guards

TechnologyOn-siteRemote

* Operating margin

Business Area Overview

Security Services North America – Sales Development 9M 2013

• Organic sales growth 1% (0), driven by federal government services, critical infrastructure and Pinkerton Corporate Risk Management

• Continued focus on integrated guarding.•• Affordable Care Act (ACA) delayed

• Main aspects of the law affecting Securitas have been delayed to 2015

• More time to comply and progressively adjust our offering to our clients

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Comparatives have been restated due to the organizational changes in the Group as of January 1, 2013 and adoption of IAS 19 (revised).

Security Services North America – Income Development 9M 2013

• The operating margin was 5.1% (4.6)

• Improvements mainly in the guarding regions and in federal government services

• The major part of the improvement was an effect of the restructuring and cost savings program

• Weak development in the business units Aerospace/Defense and Healthcare had a hampering impact

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Comparatives have been restated due to the organizational changes in the Group as of January 1, 2013 and adoption of IAS 19 (revised).

Security Services Europe– Sales Development 9M 2013

• Organic sales growth 0% (1)

• Germany and Turkey supported organic sales growth

• France and the United Kingdom were negative with -7 and -5 percent respectively

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Comparatives have been restated due to the organizational changes in the Group as of January 1, 2013 and adoption of IAS 19 (revised).

Security Services Europe– Income Development 9M 2013

• Operating margin 5.9% (5.3)

• Improvement mainly due to restructuring and cost savings program

• The price and wage balance was negative but balanced by operational improvements, and by reduced social costs in France

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Comparatives have been restated due to the organizational changes in the Group as of January 1, 2013 and adoption of IAS 19 (revised).

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Security Services Ibero-America– Sales Development 9M 2013

• Organic sales growth 4% (-3)

• In Latin America the organic sales growthwas 24%, driven by price increases in Argentina and a strong development in Colombia.

• The market in Spain is still in decline -organic sales growth in Spain was -12%

Comparatives have been restated due to the organizational changes in the Group as of January 1, 2013 and adoption of IAS 19 (revised).

2020

Security Services Ibero-America– Income Development 9M 2013

• Operating margin 5.4% (5.3)

• The operating margin improved in Spain, due to restructuring and cost savings, the collective bargaining agreement and sales from security solutions and technology. Portfolio losses and increased payroll taxes had a hampering effect.

• Last year the operating margin in Spain was positively impacted by the repayment of old outstanding receivables from public sector customers

Comparatives have been restated due to the organizational changes in the Group as of January 1, 2013 and adoption of IAS 19 (revised).

Financial Highlights and Debt Overview

Highlights January - September 2013

• Organic sales growth 1 percent (0)• Operating margin 5.0% (4.6), mainly

driven by restructuring and cost savings program initiated in 2012

• Cost savings achieved according to the restructuring plan

• Improved operating result but challenging macro economic conditions in both the US and Europe hampered the improvement

• Free Cash Flow to net debt ratio 0.26 (0.12)

Financial Highlights

MSEKQ3

2013Q3

2012Total

change %

Real change

%

9M 2013

9M 2012

Total change

%

Real change

%

Sales 16 605 16 474 1 2 48 975 49 707 -1 2

Organic sales growth, % 1 0 1 0Operating income beforeamortization 892 849 5 6 2 450 2 286 7 11Operating margin, % 5.4 5.2 5.0 4.6

Amortization and impairment of acquisition related assets -65 -96 -193 -227

Acquisition related costs -5 16 -19 -49

Items affecting comparability - - - -Operating income afteramortization 822 769 7 8 2 238 2 010 11 15

Financial income and expenses -83 -143 -300 -425Income before taxes 739 626 18 18 1 938 1 585 22 26

Net income for the period 519 433 20 20 1 361 1 108 23 26

Earnings per share (SEK) 1.42 1.18 20 20 3.72 3.03 23 26

Comparatives have been restated due to the adoption of IAS 19 (revised).

Funding Strategy and Financial Targets

Main principles for funding strategy: to support the group’s long term strategic goals• To be well balanced and diversified in terms of external funding sources via bank, bond and

commercial paper markets• To be cost efficient• To be well balanced in terms of maturity of financing• To be based on long term relationships with financing counterparts

Financial targets

• Financial stability target – free cash flow to net debt above 0.20x

• Financial performance target – an annual average increase in Earnings Per Share (EPS) of 10 percent

• Securitas should be able to sustain a dividend level of approximately 50% of free cash flow

Debt Maturity Profile and Liquidity Overview Sept 13

• RCF 420 MEUR and 550 MUSD matures 2016

• 650 MEUR in Eurobonds maturing 2017 and 2018

• Private Placements totaling 3 364 MSEK equivalent maturing 2014-2019

• 5 000 MSEK Swedish Commercial Paper program

• No financial covenants

Policy: short term liquidityreserve > 5 % of sales

Note: 85 MUSD FRN maturing in 2019 issued in October 2013 not included in above

S&P RatingCredit Strengths and Challenges

Business Risk• Securitas is the world's second-largest security services provider by

total revenues. • The security services market is relatively resilient to the economic

cycle. • Competitive and fragmented industry with low entry barriers leading to

modest EBITDA margins. • Successful track record of integrating acquisitions.

Financial Risk• Low capital expenditure (capex) requirements. • "Strong" liquidity position. • Stretched balance sheet due to debt-financed acquisitions.• Financial Risk Profile “Significant”

Swedish Agency Long - term Short - term Short - term Outlook

S&P BBB A2 K2 Stable

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Appendix

Ten largest shareholders as of October 1, 2013

Shareholder A-share B-share Total Number of Shares Holding % Votes %

Gustav Douglas and family 12 642 600 29 470 000 42 112 600 11.54 % 30.02 %

Melker Schörling and family 4 500 000 16 008 700 20 508 700 5.62 % 11.75 %

Didner & Gerge Fonder Aktiebolag 0 14 130 017 14 130 017 3.87 % 2.72 %

Swedbank Robur Funds 0 13 003 329 13 003 329 3.56 % 2.50 %

Nordea Investment Funds 0 11 869 740 11 869 740 3.25 % 2.29 %

SEB Investment Management 0 11 497 451 11 497 451 3.15 % 2.21 %

JPM CHASE NA 0 10 350 766 10 350 766 2.84 % 1.99 %

JPM CHASE NA 0 8 605 783 8 605 783 2.36 % 1.66 %

Lannebo Funds 0 8 402 000 8 402 000 2.30 % 1.62 %

CACEIS BANK FRANCE / CREDIT 0 8 000 000 8 000 000 2.19 % 1.54 %

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Capital Employed and Financing

MSEK Sep 30, 2013 Dec 31, 2012 Dec 31, 2011

Operating Capital Employed 3 469 2 582 3 146

Operating Capital Employed as % of sales 5 4 5

Return on operating capital employed, % 91 91 116

Goodwill 14 088 14 275 14 727

Acquisition related intangible assets 1 335 1 502 1 574

Shares in associated companies 97 108 108

Capital employed 18 989 18 467 19 556

Return on Capital employed, % 15 14 17

Net Debt -10 293 -9 865 -10 348

Shareholders’ equity 8 696 8 602 9 207

Net Debt equity ratio/multiple 1.18 1.15 1.12

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Summary Balance Sheet

MSEK Sep 30, 2013 Dec 31, 2012 Dec 31, 2011

ASSETS

Total non – current assets 20 264 21 026 21 336

Total current assets 15 586 17 431 15 330

TOTAL ASSETS 35 850 38 457 36 666

SHAREHOLDERS’ EQUITY AND LIABILITIES

Total shareholders’ equity 8 696 8 602 9 207

Total long-term liabilities 10 609 12 396 12 230

Total current liabilities 16 545 17 459 15 229

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 35 850 38 457 36 666

Group Cash Position – September 2013

Policy: short term liquidity reserve > 5 % of sales

Summary MSEK

Cash on hand 1 753

Available under O/D 15

Available under 2016 RCF 6 683

Total 8 451

Less Commercial Paper - 2 500

Net Available Funding 5 951

Net Available Funding / annual sales (SEK 64bn) 8.95%

Net Available Funding excludes subsidiaries cash held locally (Sept. Figure) 900

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Net Debt Development

33

MSEK

Net debt January 1, 2013 -9 865Free cash flow 1 105

Acquisitions -198

IAC payments -270

Dividend paid -1 095

Change in net debt -458

Translation and revaluation 30

Net debt Sep 30, 2013 -10 293

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Name Surname | Title of presentation | Date 34

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