Securitas: Securitas : And read the Annual and Sustainability Report 2024

Pioneering the future of security Annual and Sustainability Report 2024 Securitas Annual and Sustainability Report 2024 2 About Securitas CEO leer People Strategy and targets Our offering Our operations The global security market and trends Our sustainability work Corporate governance report and management Securitas' financial model Annual report Sustainibility notes The Securitas share Securitas' history Financial information About Securitas 3 CEO leer 6 People 8 Strategy and targets 11 Our offering 18 Our operations 23 The global security market and trends 25 Our sustainability work 29 Contents Corporate governance report and management 38 Securitas' governance model 40 Board of Directors 45 Group Management 47 Enterprise risk management and internal control 49 Securitas' financial model 54 Annual report 56 Report of the Board of Directors 57 Consolidated financial statements 65 Notes and comments to the consolidated financial statements 71 Parent Company financial statements 119 Notes and comments to the Parent Company financial statements 122 Signatures of the Board of Directors 130 Auditor's report 131 Quarterly data 136 Sustainability notes 139 Auditor's report 152 The Securitas share 153 Securitas' history 156 Financial information 157 Pages 57-130 constitute Securitas' formal Annual report. Securitas' sustainability work is described in the Sustainability report on pages 29-37 and 139-152. The official version of the Annual and Sustainability Report is prepared in Swedish in the European single electronic format (ESEF). Refer to www.securitas.com for Securitas' annual reporting. CEO leer People Strategy and targets Our offering Our operations The global security market and trends Our sustainability work Corporate governance report and management Securitas' financial model Annual report Sustainibility notes The Securitas share Securitas' history Financial information A global security solutions partner with a strong local presence Our purpose Securitas' purpose is: "We help make your world a safer place." Our purpose reminds all employees that they are contributing to something of great importance and that the purpose is the reason the company exists. Our purpose is not just a statement; it's a driving force that permeates every aspect of the company's operations. It underlines the importance of security and safety in today's world while providing a strong foundation for strategy, culture, and value creation. Our value creation and positive impact on society is strongly connected to our purpose and is evident in our Net Impact rating of 70 percent, which ranks us in the top five percent across the global universe of ranked companies. Our values To deliver on our purpose, our employees are led by our three core values - integrity, vigilance and helpfulness. These values represent who we are and how we do things to fulfil our purpose. The three dots symbo-lize these values and signify that we look out for each other and the people around us. Integrity means being honest. We never compromise on our integrity, ethics or truthfulness. Vigilance means paying aention, taking initiative and always looking for ways to improve. Helpfulness means being approachable, service-oriented and accomodating to our clients and colleagues. A major player in the industry Securitas' position as the second largest provider of security services globally, along with its presence in 44 markets, with thousands of clients, positions Securitas as a major player in the industry. Europe and North America, as the largest regions of operation, offer significant growth oppor-tunities, especially in the context of technological innovation and developments. Securitas also has presence in Ibero-America and in the AMEA region. We provide unique offerings, combining people and technology in sustainable and world-leading security solutions. CEO leer People Strategy and targets Our offering Our operations The global security market and trends Our sustainability work Corporate governance report and management Securitas' financial model Annual report Sustainibility notes The Securitas share Securitas' history Financial information 2024 in short 161 921 Total sales, MSEK (157 249) 5% Organic sales growth (9) 33% Technology and solutions, share of total sales (32) 6% Technology and solutions real sales growth (9) 6.9% Operating margin (6.5) 4.50 Proposed dividend per share, SEK (3.80) 84% Cash flow from operating income (80) 2.5 Net debt to EBITDA-ratio (2.7) 336 000 Employees (341 000) 44 Number of markets with operations (44) 90% Client retention rate (90) 25% Share of female managers at all levels (25) 0% Injury rate, change (+6) CEO leer People Strategy and targets Our offering Our operations The global security market and trends Our sustainability work Corporate governance report and management Securitas' financial model Annual report Sustainibility notes The Securitas share Securitas' history Financial information About Securitas CEO leer People Strategy and targets Our offering Our operations The global security market and trends Our sustainability work Corporate governance report and management Securitas' financial model Annual report Sustainibility notes The Securitas share Securitas' history Financial information A strong year with important milestones achieved Looking back at 2024, I am very satisfied with the Securitas team and our performance. We have taken important steps on our journey to transform Securitas into the leading intelligent security partner. We are on track with our strategic plan. We are in a beer place than ever to address the evolving needs of our clients after years of modernizing and digitizing our operations, together with our focus on continuous impro-vement and innovation. Our achievements in 2024 reaffirm that we are on the right track to meet our financial targets and we are confident in our ability to deliver greater share-holder value. Solid Group performance We delivered a strong performance during the year with an operating margin of 6.9 percent (6.5), thanks to an improved operating margin in our European operations and significant improvements in security services as well as technology and solutions. The Group's organic sales growth was 5 per-cent (9) in 2024, and was mainly driven by price increases. This is good proof that our clients appreciate a beer value proposition. We are on track with Technology and solutions real sales growth of 6 percent (9) was below our targeted 8-10 percent but contributed to a continued positive mix change. Technology and solutions represented 33 percent (32) of Group sales and 52 percent (53) of the Group's operating result with an operating margin of 10.9 percent (10.8) in 2024. A continued emphasis on active portfolio management and securing new sales at hig-her margins drove strong profitability growth in our security services business. In addition, high travel volumes and improved operational efficiency in our airport security operations contributed to an improved operating margin '' our strategic plan. About Securitas CEO leer People Strategy and targets Our offering Our operations The global security market and trends Our sustainability work Corporate governance report and management Securitas' financial model Annual report Sustainibility notes The Securitas share Securitas' history Financial information '' I am very satisfied of what we have achieved together during the year. in security services business line which reached 5.5 percent (4.9) in 2024. Operating cash flow in the Group was strong at 84 percent (80) in 2024 and supported an accelerated deleveraging to a net debt/ EBITDA ratio of 2.5 (2.7) at year-end. Driving transformation to achieve long-term sustainable shareholder value Over the past few years, we have made significant investments in our technology capabilities and transformation programs to create scale and increased automation opportunities. By the end of 2024, we closed the STANLEY Security integration program, and I am pleased with how we have suc-cessfully managed this large and complex process. Moving forward, we still have some work remaining with the implementation of our transformation efforts in Europe, ensuring our business is equipped to exe-cute our strategy effectively. Another important aspect of our strategy is the continuous assessment of our business mix and market presence. Late in the year, we signed a put option agreement to divest our airport security business in France due to the limited opportunity to generate healthy profitability. We are aiming at delivering the strongest client-centric value proposition in the security industry. In the face of heightened global uncertainty and an increasingly com-plex threat landscape, clients are seeking a forward-thinking partner with extensive security expertise to help shape their secu-rity programs for the future. Our long-term partnership approach, com-bined with our strong presence, technology, and digital capabilities, make us the pre-ferred choice. During the year, we received a lot of positive feedback from our clients confirming that we are on the right path. Ambitious sustainability goals Our sustainability strategy supports the overall business strategy, and we have ambitious targets in this area. In 2022 we became the first major company in our indu-stry to commit to the Science Based Targets initiative (SBTi). In 2023 we actively engaged in formulating and validating targets for reducing the Group's climate impact and the targets have been validated by the SBTi, meaning that Securitas has commied to a substantial reduction of its emissions, taking action and responsibility for limiting global warming to 1.5°C. In February 2025, we clo-sed a MEUR 300 sustainability-linked bond in the Eurobond market for the first time. During the year, the US government recog-nized Securitas for our climate leadership and efforts in this area. This is very inspiring, and we hope that our actions beyond our commitment not