Organizational changes
Security Services North America has been affected by operations within security consulting in the Netherlands that have been moved from the segment Other to Pinkerton Corporate Risk Management within Security Services North America. The previous segments Security Services Europe and Mobile and Monitoring have been merged into one segment named Security Services Europe. Furthermore, operations in Spain and Portugal have been moved from the previous segment Mobile and Monitoring to Security Services Ibero-America, while operations within security consulting in Belgium have been moved from the segment Other to Security Services Europe.
The organizational changes have impacted the distribution of sales and operating result between the business segments as well as the elimination of intra-group sales but have not had any impact on the total sales, organic sales growth, operating income nor operating margin for the Securitas Group.
IAS 19 (revised)
IAS 19 (revised) applies to financial years beginning January 1, 2013 or later. It is adopted by the Securitas Group as of the financial year 2013. The impact on the Group from the revised standard is that interest cost and expected return on assets were replaced by a net interest cost which is calculated by applying the discount rate to the net defined benefit obligation (or asset). Further, past service costs are recognized immediately instead of being accrued over the vesting period. The effect on the Group's financial statements is that the costs recognized for 2011 and 2012 related to defined benefits to employees increase. The actual benefits and the cash contributions for these plans are not impacted by IAS 19 (revised).
When restating the comparative years 2012 and 2011 the increase of these costs are MSEK –58 before taxes and MSEK –37 after taxes for 2012. For 2011 the increase was MSEK –50 before taxes and MSEK –30 after taxes. The increase in costs affects production expenses as well as selling and administrative expenses in operating income. The distribution of this impact between the business segments and for the Securitas Group as a whole is disclosed in the tables below. The line “of which impact from IAS 19 (revised)” shows the increase in cost compared to the previous version of IAS 19.
Further, according to IAS 19 (revised) it will no longer be possible to apply the so called corridor method. Since Securitas has not applied the corridor method, this change will have no effect on the Group’s financial statements.
| Security Services North America | ||||||||
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
| Total sales | 22 415 | 5 686 | 6 069 | 11 755 | 5 849 | 17 604 | 5 935 | 23 539 |
| Organic sales growth, % | 4 | 1 | 1 | 1 | -1 | 0 | 1 | 1 |
| Operating income before amortization | 1 236 | 251 | 266 | 517 | 295 | 812 | 301 | 1 113 |
| of which impact from IAS 19 (revised) | -38 | -10 | -11 | -21 | -11 | -32 | -11 | -43 |
| Operating margin, % | 5,5 | 4,4 | 4,4 | 4,4 | 5,0 | 4,6 | 5,1 | 4,7 |
| Security Services Europe | ||||||||
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
| Total sales | 31 589 | 8 056 | 8 341 | 16 397 | 8 108 | 24 505 | 8 236 | 32 741 |
| Organic sales growth, % | 0 | 1 | 2 | 1 | 2 | 1 | 0 | 1 |
| Operating income before amortization | 1 674 | 405 | 389 | 794 | 504 | 1 298 | 375 | 1 673 |
| of which impact from IAS 19 (revised) | -12 | -4 | -4 | -8 | -3 | -11 | -4 | -15 |
| Operating margin, % | 5,3 | 5,0 | 4,7 | 4,8 | 6,2 | 5,3 | 4,6 | 5,1 |
| Security Services Ibero-America | ||||||||
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
| Total sales | 9 420 | 2 329 | 2 339 | 4 668 | 2 308 | 6 976 | 2 365 | 9 341 |
| Organic sales growth, % | 10 | 2 | -5 | -2 | -6 | -3 | -4 | -3 |
| Operating income before amortization | 597 | 117 | 121 | 238 | 129 | 367 | 129 | 496 |
| of which impact from IAS 19 (revised) | - | - | - | - | - | - | - | - |
| Operating margin, % | 6,3 | 5,0 | 5,2 | 5,1 | 5,6 | 5,3 | 5,5 | 5,3 |
| Other | ||||||||
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
| Total sales | 642 | 195 | 222 | 417 | 211 | 628 | 216 | 844 |
| Organic sales growth, % | - | - | - | - | - | - | - | - |
| Operating income before amortization | -172 | -53 | -59 | -112 | -78 | -190 | -65 | -255 |
| of which impact from IAS 19 (revised) | - | - | - | - | - | - | - | - |
| Operating margin, % | - | - | - | - | - | - | - | - |
| Eliminations | ||||||||
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
| Total sales | -9 | -2 | -1 | -3 | -3 | -6 | -1 | -7 |
| Group | ||||||||
| MSEK | FY 2011 | Q1 2012 | Q2 2012 | H1 2012 | Q3 2012 | 9M 2012 | Q4 2012 | FY 2012 |
| Total sales | 64 057 | 16 264 | 16 970 | 33 234 | 16 473 | 49 707 | 16 751 | 66 458 |
| Organic sales growth, % | 3 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Operating income before amortization | 3 335 | 720 | 717 | 1 437 | 850 | 2 287 | 740 | 3 027 |
| of which impact from IAS 19 (revised) | -50 | -14 | -15 | -29 | -14 | -43 | -15 | -58 |
| Operating margin, % | 5,2 | 4,4 | 4,2 | 4,3 | 5,2 | 4,6 | 4,4 | 4,6 |
The information provided in this press release regarding restated segment data is preliminary and has not been reviewed by the Group's auditors.
This press release is also available at: www.securitas.com
Information:
Micaela Sjökvist, Head of Investor Relations
Phone: +46 10 470 30 13.Mobile: +46 (0) 76 116 7443
.
| Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer’s needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 300,000 employees are making a difference.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 10.00 (CET) on April 19, 2013. |
