Objectives and Strategy

Loomis is the specialist in creating the most efficient cash flow in society. Our primary mission is to generate value for our shareholders and other stakeholders through a sustainable and profitable growth. Loomis strategy to achive the targets is a strong focus on activities that increase revenues and that we continue to develop the Loomis model.

Growth activities

Loomis has identified 5 key areas where the opportunities are considered good and where we believe we have a competitive edge compared with other companies in the market.

  • Cash Management Services (CMS) in the US. The outsourced US market is low compared to most parts of Europe. We believe by maintaining high quality and high service levels towards our customers we will be able to increase the level of CMS, particularly in the US. One of the key drivers is that we can cut costs for the banks and the retailers as Loomis can perform CMS activities in larger scale and achieve higher efficiencies.
  • Loomis SafePoint in the US. A SafePoint is an intelligent safe, which is placed at our customers, where the customer can deposit the cash. The customer reduces the physical risks around cash management but also has quicker access to the liquidity. The cash is credited, on the bank account, at the same time the cash is deposited into the SafePoint unit. The SafePoint concept is well developed but the market penetration is low. We believe that the possibilities for increased SafePoint revenues are good. SafePoint will, as well, be marketed in Europe where the volumes today are low.
  • Continued development of International Services. In 2014 Loomis acquired Viamat. Viamat is one of the market leaders within the international segment and Loomis believes there are good possibilities to grow by utilizing Loomis current infrastructure and attract new customers.
  • Development of value added services. In many markets the customers require add on services to a higher degree than before. Loomis will continue to develop add on services within cash management. Services are, for example, forecasting of replenishment for ATMs and management of the customers’ physical foreign exchange.
  • Mergers and acquisitions. Loomis target is to be number 1 or number 2 in each market Loomis carries out business. In order to maintain or increase our market position we intend to make bolt on acquisitions in current markets but also, to a higher degree than previously, make acquisitions in emerging markets.

The Loomis model

We focus constantly on improving the efficiency and the profitability of our branch offices. Loomis is a decentralized organization where decision making, in most cases, is pushed down to the branches. The branches are responsible for their profitability as well for the business activities. We believe it is the constant improvements, at the branches, that are key for reaching the long term targets of the group.

We set clear, reasonable and measurable targets for our branch managers. The developments are followed-up on a monthly basis and we motivate and award the branch managers if the targets are achieved. Key components of the Loomis model are best practice sharing between the branches but also that we compare the branches. We compare the branches within a country but also cross border where they are compared to branches that operate under similar conditions.

We work hard to minimize the risk of harm facing our employees and other people connected to our operations. In order to prevent injuries Loomis has formed processes and systematic procedures for identifying and minimizing risks.

Financial targets

The financial targets of Loomis are to achieve annual revenues of at least SEK 17 billion by 2017, at the latest, achieve an operating margin between 10 and 12 per cent between 2014 and 2017, a net debt level not exceeding 3.0 times operating income before depreciation and amortization (EBITDA), and that the annual dividends should be between 40 and 60 per cent of net earnings.