Securitas announces new financial targets and update from Stanley Security

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STOCKHOLM, August 24, 2022 /PRNewswire/ — Following the acquisition of STANLEY Security, which was finalized and consolidated into Securitas as of July 22, 2022, the Group has set new financial targets of 8 to 10% average annual growth in real sales of technologies and solutions, a Group operating margin of 8% by the end of the year 2025 and a net debt ratio on EBITDA below 3.0x. Securitas will present the strategy and roadmap for the new targets, as well as a business update for STANLEY Security, during an investor update today at 2:00 p.m. CEST.

Bringing Securitas and STANLEY Security together is a defining event for the industry. We will be uniquely positioned to meet the complex security needs of our customers and by joining forces we are creating a strong global technology platform that will future-proof the business for next-generation security solutions. We are now embarking on a truly exciting journey as a unique company, together oriented towards high value-added growth in the years to come.

The new financial objectives are aligned with the strategy to be a security solutions partner with leading technology and expertise, solidly positioned to deliver superior growth and increased margins:

  • Average annual real sales growth of 8-10% in technology and solutions
  • Group operating margin of 8% by the end of 2025, with a long-term operating margin ambition > 10%
  • A net debt to EBITDA ratio below 3.0x

The new margin target replaces the previous target of an average increase in earnings per share of 10% and the margin targets in the respective business segments related to the Group’s business transformation programs.

The current operating cash flow target of 70-80% of operating income before amortization remains the same, and the new capital structure target of a net debt to EBITDA ratio below 3.0x replaces the former net debt/EBITDA ratio of 2.5x on average, and should be reached in 2024.

The dividend policy is unchanged, remaining within a range of 50-60% of annual net income over time.

The strategic transformation ambition – to double sales of security and electronic security solutions by 2023, compared to 2018, is abandoned as the ambition has been achieved by the acquisition of STANLEY Security.

The integration of STANLEY Security is proceeding well and according to plan. In 2021, STANLEY Security saw installation backlog growth of 33%. Adjusted sales were approximately $1,650m with organic sales growth of 7% during the year, and adjusted EBITDA margin was 11%.

For the first six months of 2022, STANLEY Security experienced record installation backlog, growing 18% over the same period last year. Adjusted sales amounted to approximately 805 MUSD with organic sales growth of 3%. Adjusted4 EBITDA margin was 9%, temporarily impacted by the corona pandemic, supply chain issues, inflationary cost increases and outdated pricing processes. Profitability improved in the second quarter of 2022 compared to the first quarter of 2022 with a continued positive trend. Pricing, efficiency and cost measures have been implemented, and with strong business momentum and accelerated value creation execution, profitability will improve going forward.

Welcome to our Investor Update, today August 24 at 2:00 p.m. at about 4:00 p.m. (EST). Please see details below:

1:00 p.m. Presentation slides available

2:00 p.m. Presentation followed by a Q&A session

To follow the Investor Update live webcast and conference call via web, please follow the link www.securitas.com/webcasts

Questions for management can be asked by phone or via the webcast question form. To ask questions by phone, access the teleconference register by clicking on the link Access the teleconference

After registering for the conference call, you will receive phone numbers and a conference ID to access the conference. If you would like to ask a question, please dial *5 on your telephone keypad to enter the queue.

If registering in advance, please note the conference phone number and ID. Otherwise, you must register again.

A recorded version of the webcast will be available on the same webpage after the conference call. We respect your privacy and want to be transparent with you about how we collect and use your personal data when you participate in the conference call. Please follow this link to read our privacy policy for conference calls/webcasts in relation to the publication of interim reports and investor presentations: www.securitas.com/privacy-policy-audiocasts.

Further information :
Micaela Sjökvist, Vice President, Investor Relations; +46 76 116 7443, [email protected]
Media: Helene Andreas, SVP, Communications & People; +46 (0)10 470 30 20; [email protected]

This is information that Securitas AB is required to make public under the EU Market Abuse Regulation. The information has been submitted for publication, through the contact person listed above, to 1:00 p.m. (EST) on August 24, 2022.

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https://news.cision.com/securitas/r/securitas-announces-new-financial-targets-and-stanley-security-update,c3619318

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