Annual and Sustainability Report  
2019
Intelligent security  
for a safer world

370 000
EMPLOYEES 
110 899
TOTAL SALES, MSEK 
150
NUMBER OF GLOBAL CLIENTS
9.20
EARNINGS PER SHARE, SEK
0.19
FREE CASH FLOW    
TO NET DEBT
56
NUMBER OF COUNTRIES  
WITH OPERATIONS
150 000
NUMBER OF CLIENTS (EXCLUDING 
MONITORING-ONLY CLIENTS)
89%
CLIENT RETENTION RATE
4.80
PROPOSED DIVIDEND, SEK
2.2
NET DEBT TO  
EBITDA RATIO
An eventful year
Securitas is in a period of accelerated transformation, from the leader in guarding services  
and protective services towards leadership in intelligent services. We have an attractive 
offering of protective services, including on-site, mobile and remote guarding, electronic 
security, fire and safety, and corporate risk management. With operations in 56 countries 
in Europe, North America, Latin America, Africa, the Middle East and Asia, we have the 
power of presence, and our 370 000 skilled and engaged employees make a difference 
for our clients every day.
Securitas clients’ are found in all different industries and they are of all sizes. We adapt our 
security solutions based on the risks and needs of each client through increased client 
engagement and continuously enhanced knowledge. To enhance efficiency and producti-
vity we are modernizing and digitizing our operations. We are also investing in intelligent 
products and services, both by improving existing services and by developing new ones.
ABOUT SECURITAS
Securitas Annual and Sustainability Report 2019

ABOUT SECURITAS
2019 in two minutes
2
CEO statement
4
Market and trends
6
Value creation
10
Targets
12
The Global goals
13
OUR STRATEGY
Empowered people
16
Client engagement
17
Protected services and innovation
18
Efficiency
19
OUR OPERATIONS
Customer segments 
24
Our responsibilities
30
CORPORATE GOVERNANCE  
AND MANAGEMENT
Compliance with the Code
32
Comments by the Chairman
33
Securitas governance model
34
Board of Directors
40
Group Management
42
Enterprise risk management 
and internal control 
44
ANNUAL REPORT
Report of the Board of Directors
57
Consolidated financial statements
68
Notes and comments to the
consolidated financial statements
75
Parent Company financial  
statements
128
Notes and comments to the Parent
Company financial statements
131
Signatures of the  
Board of Directors
138
Auditor’s report
139
SUSTAINABILITY NOTES 
144
Assurance report 
158
Quarterly data
160
The Securitas share
162
Financial information and invitation  
to the Annual General Meeting
164
This is a translation of the original Swedish Annual 
Report. In the event of differences ­between the  
English translation and the ­Swedish original, the 
Swedish Annual Report shall prevail.
Content

2019 in two minutes
HIGHLIGHTS DURING THE YEAR
•	A strategic transformation ambition was set – to double our security solutions 
and electronic security sales by 2023, compared with 2018
•	Sales of security solutions and electronic security represented 21 percent of 
total sales in 2019, a growth with 10 percent compared with 2018
•	The two major transformation programs in the further digitization of the 
company are progressing according to plan 
•	Major acquisitions included Global Elite Group, a security services provider to 
the aviation industry in the US, the electronic security company Allcooper 
Group in the UK and Staysafe, an alarm monitoring company in Australia
2019 was a good year for Securitas. Organic sales growth was 4 percent (6)  
and the operating margin was stable at 5.2 percent (5.2).
KEY RATIOS
MSEK
2017
2018
2019
Sales
92 197
101 467
110 899
Organic sales growth, %
5
6
4
Operating income before amortization
4 697
5 304
5 738
Operating margin, %
5.1
5.2
5.2
Income before taxes
4 018
4 028
4 618
Net income for the year
2 751
3 021
3 362
Earnings per share, SEK
7.53
8.26
9.20
Free cash flow
2 290
1 884
3 268 
Free cash flow to net debt ratio
0.19
0.13
0.19
Net debt to EBITDA ratio
2.0
2.3
2.2
Dividend per share, SEK
4.00
4.40
4.80*
Sales of security solutions and electronic security, % of total sales
18
20
21
Sales of security solutions and electronic security, growth % 
19
21
10
* Proposed dividend 
TOTAL SALES AND  
ORGANIC SALES GROWTH
OPERATING INCOME  
BEFORE AMORTIZATION  
AND OPERATING MARGIN
EARNINGS  
PER SHARE
 Organic sales growth, % 
0
20 000
40 000
60 000
80 000
100 000
120 000
15 16 17 18 19
0
2
4
6
8
10
%
MSEK
 Operating margin, %
15 16 17 18 19
MSEK
%
0
1 000
2 000
3 000
4 000
5 000
6 000
4.5
4.7
4.9
5.1
5.3
5.5
0
2.00
4.00
6.00
8.00
10.00
15
16
17
18
19
SEK
2
Securitas Annual and Sustainability Report 2019
2019 IN TWO MINUTES

LEADING GLOBAL AND LOCAL PRESENCE
Securitas meets the clients’ needs with a high-quality protective services offering,  
a leading global and local presence, skilled employees and strong values.
EUROPE
47 248
SALES IN 2019 (MSEK) 
124 000
NUMBER OF EMPLOYEES
AMEA
61 000
NUMBER OF EMPLOYEES
IBERO–AMERICA
13 099
SALES IN 2019 (MSEK) 
64 000
NUMBER OF EMPLOYEES
NORTH AMERICA
48 499
SALES IN 2019 (MSEK) 
121 000
NUMBER OF EMPLOYEES
EUROPE 
Organic sales growth was 2 percent (4)
Security solutions and electronic security sales repre-
sented 22 percent (21) of total sales
The operating margin was 5.5 percent (5.6)
The client retention rate was 90 percent (93)
IBERO–AMERICA 
Organic sales growth was 14 percent (12)
Security solutions and electronic security sales 
represented 27 percent of total sales (27)
The operating margin in­creased to 4.7 percent (4.5)
The client retention rate was 92 percent (92)
AMEA
The organic sales growth was favorable and  
margins improved in 2019 
Two strategic acquisitions were completed  
in Australia, in electronic security and alarm  
monitoring
A large consolidated security contract across  
the AMEA reg­ion, with focus on Asia was won
NORTH AMERICA 
Organic sales growth was 4 percent (6)
Security solutions and electronic security sales repre-
sented 18 percent (17) of total sales
The operating margin improved to 6.2 percent (6.1)
The client retention rate was 90 percent (91)
Securitas Annual and Sustainability Report 2019
3
2019 IN TWO MINUTES

GROWTH AND INVESTMENTS
We are continuously working to deliver high quality and added 
value to our clients. In 2019, we had 4 percent organic sales 
growth. Security solutions and electronic security sales grew 
with 10 percent and now represent 21 percent of our total sales. 
The operating margin was 5.2 percent. We are making signifi-
cant investments in our strategic transformation and in creating 
the most attractive client offering. These investments will rein-
force our leading position and help drive growth and profitability 
improvements in the long term. 
The positive momentum continued across all business units in 
Security Services North America, with solid growth and improved 
operating margins. In Security Services Europe, most countries 
performed well but growth and profitability were negatively 
impacted by contract losses and price and wage imbalances in a 
few countries. We had a strong finish to the year in Security Ser-
vices Ibero-America and continued favorable growth and deve-
lopment in our Africa, Middle East and Asia (AMEA) division. 
Earnings per share improved by 4 percent, after adjustments 
for changes in exchange rates, items affecting comparability, IFRS 
16 and the impact from the US tax reform. 
With a record-breaking operating cash flow of MSEK 4 902, 
we strengthened our balance sheet and our net debt to EBITDA 
ratio decreased to 2.2. 
Acquisitions play an important role in strengthening our pro-
tective services offering and accelerating our strategic transfor-
mation. During 2019, we completed acquisitions in Australia, the 
UK and the US, together with some smaller acquisitions in other 
key markets. We are very pleased to welcome all new employees 
to the Securitas team. 
BUILDING STRENGTH FOR THE FUTURE
The strategy that we defined and communicated five years ago, 
Vision 2020, has been successful. We are now launching the 
next phase. This phase does not represent a change in the 
direction of the strategy, but rather an evolution, including 
investments to further strengthen our protective services lead-
ership and accelerate data-driven innovations for enhanced ser-
vices for our clients.  
Our desired position is to become the intelligent protective ser-
vices partner for our clients. We are focusing on three areas to 
Transforming from  
a position of strength 
achieve this desired position: 1) client engagement 2) sharpening 
our protective services leadership and innovation, and 3) efficiency.
CLIENT ENGAGEMENT
Our strategy is geared towards creating added value for our 
clients. Our decentralized operating model allows us to remain 
close to our local clients, which in turn enables close engage-
ment and the ability to continuously develop the service offering 
to address each client’s specific needs and risks.
We have 150 000 clients and a client retention rate that is 
steadily around 90 percent. This is proof that our clients value 
the quality of our services and our relationship, but we can 
always do better. One measure is to invest in an improved 
client engagement model. This will help us leverage best prac-
tices and bring consistently better quality and value to our 
clients. During the year, we also created a global client organi-
zation to further strengthen our offering to clients who require 
consistent protective services of high quality across different 
countries and geographies. 
 
PROTECTIVE SERVICES LEADERSHIP AND INNOVATION
We focus on security services and creating long-term value. 
This is what we do best, and we generate the highest value for 
our clients by combining different protective services into solu-
tions that are based on a risk assessment and the client’s needs. 
We are growing faster than the market thanks to our global pre-
sence, leading offering and the high-quality services that our 
competent employees deliver to our clients every day.
For the next development phase, we have identified a 
number of focus areas that will improve our offering to our 
clients and drive innovation. The first involves strengthening our 
core operations. Guarding represents 77 percent of our busi-
ness, and we are now sharpening the efficiency of our guarding 
operations in order to continue to deliver the best-quality servi-
ces. Electronic security is another significant focus area, and we 
are well positioned to compete in this market with increasingly 
strong capabilities and an outstanding team.
We see a future which is increasingly knowledge focused, 
and this will require a vast local presence and access to large 
quantities of data. Our global and local presence gives us a 
unique capability to generate data. We can use this information 
2019 was an important year for Securitas. We grew faster than the market and we generated the highest 
cash flow in the history of the company. We started implementing our strategy to be the leader in intelli-
gent security and presented our ambition to double our security solutions and electronic security business 
by 2023. We also defined our purpose as a company and introduced the leadership team that will drive 
the transformation during the next phase. We are undertaking these changes from a position of strength – 
with a leading global and local presence, and the best offering and employees in the industry.   
4
Securitas Annual and Sustainability Report 2019
CEO STATEMENT

Securitas continues to support the UN Global Compact 
through a commitment to its ten principles. We also contribute 
to the fulfillment of the UN Sustainable Development Goals. 
Sustainability is integrated into our daily business and I believe it 
adds value for our clients.  
A CLEAR PURPOSE
During the strategy process, thousands of employees took part 
in workshops to define our purpose as a company. Based on 
their input, we defined our purpose: We help make your world a 
safer place.
It is my conviction that a strong and clear purpose will make 
us more successful as a business in the long term, which will 
benefit not only our clients, employees and investors, but also 
society as a whole. 
Our purpose will provide us with guidance in the decisions 
that all 370 000 of Securitas’ employees make every day, from 
strategic decisions to daily operational decisions. A person who 
feels proud of what they do and part of a bigger whole is always 
more engaged and will consequently create greater value for us 
all. Attracting and retaining the right people and motivating them 
to stay with us is a critical factor behind our success. Contributing 
to making the world a safer place is a very strong motivator.
Securitas’ people make a difference for our clients and 
society every day. We have a strong offering and clear targets to 
drive value creation. In short, we are in a very good position to 
lead the industry, now and in the future. 
Stockholm, March 18, 2020
Magnus Ahlqvist
President and CEO  
Securitas AB
to improve our knowledge, and the understanding of what might 
happen. Combined with our ability to respond quickly, this puts 
us in a unique position in the industry.  
We are accelerating our strategy through innovation in intelli-
gent services, which will be an exciting part of our development 
during the coming years.   
   
EFFICIENCY 
In 2019, we launched two major transformation programs that 
will bring increased efficiency, modernization and innovation. 
One is a global IT transformation program and the other a busi-
ness transformation program in North America. Both will span 
over several years, and we are progressing according to plan. 
Driving efficiency is important to free up resources that we can 
invest in the business or to improve margins.  
To implement the strategy for the next phase, we created 
global functions with an enhanced focus on client engagement, 
guarding and electronic security. We also made a number of lead-
ership changes and are entering 2020 with a very strong team.  
WE PLAY AN IMPORTANT ROLE IN SOCIETY
Securitas plays an important role in society, providing secu-
rity and safety in a sustainable way. We provide many people 
with work opportunities, some as a first step into the labor 
market. As a responsible and reliable employer, we offer fair 
wages and good working conditions, which also helps us to att-
ract and retain people who share our values and can provide 
excellent client service. 
We are taking the situation with the COVID-19 (Corona virus) 
outbreak very seriously and we are working closely with our 
clients to help them in these challenging times. The health and 
well-being of our employees is of course also a top priority.
We have zero tolerance for misconduct of any type. We 
investigate all alleged wrong-doings, if necessary with external 
help. We are currently also reinforcing our compliance program.
We help make your 
world a safer place.
5
Securitas Annual and Sustainability Report 2019

6
Securitas Annual and Sustainability Report 2019
MARKET AND TRENDS

MARKET SIZE FOR SECURITY SERVICES 2019*
*Outsourced guarding: includes markets where Securitas is not present. Asia excluding Japan.
FEW GLOBAL PLAYERS
In many of our markets, our main competitors are small or medium-sized local players.  
Our main global competitors are G4S, Allied Universal and Prosegur.
	 Securitas
 	G4S
 	Prosegur
 	Allied Universal
EMPLOYEES
	 Securitas
 	G4S
 	Prosegur
 	Allied Universal
SALES
Source: Securitas, Freedonia and IHS Markit Report.
Good growth opportunities 
The global security services market is projected to continue to grow even though the 
world economy is showing signs of a downturn. In developed markets, such as the US  
and western Europe, the growth potential lies in offering a full range of security services, 
including technology, that can be combined into tailored security solutions. The security 
systems integration market is expected to be BUSD 70 by 2021.
The strongest overall growth is forecast in developing markets, with China and India as the 
main drivers. This growth will come mainly from guarding services, which are still expected 
to account for the largest share of sales growth in the coming years. Well-reputed multi­
national security companies will also have good opportunities to grow in the guarding  
segment as regulations to increase professionalism in developing markets are expected to 
improve clients’ and the public’s trust in these services.
31
USD BILLION 
NORTH AMERICA 
36
USD BILLION 
EUROPE
36
USD BILLION 
ASIA*
19
USD BILLION 
LATIN AMERICA
12
USD BILLION 
AFRICA/MIDDLE EAST
7
Securitas Annual and Sustainability Report 2019
MARKET AND TRENDS

Global 
trends 
impacting 
security
The factors driving growth 
depend on the maturity of the 
market, but we have identified 
five main trends that are having 
the greatest impact on our 
global business. Our strategy 
and our services and solutions 
are aligned to address these 
trends.
MARKET AND TRENDS
TREND AND MARKET DRIVERS
There is a growing awareness within both 
the public and private sector of the need 
to secure sensitive infrastructure from 
various disruptions. Manufacturing indu-
stries, airports, data centers, ports and 
public transportation all rely on having a 
well-functioning infrastructure. Disrup-
tions can result in high costs and 
increased vulnerability. Innovative and 
integrated security services and solutions 
are required to address these issues, 
along with specialized staff.
OUR RESPONSE
At Securitas, we possess in-depth know-
ledge about specific client segments, 
such as public transportation, manufac-
turing or logistics. We have the expertise 
to create complex cross-border security 
solutions. Securitas has, for example, a 
strong aviation presence, providing 
advanced security services and solutions 
to airports and aviation companies around 
the world. In January 2019, we acquired 
Global Elite Group, a leading security ser-
vices provider to the US aviation industry. 
This acquisition is in line with our strategy 
to expand in vertical markets. 
SENSITIVE 
INFRASTRUCTURE
TREND AND MARKET DRIVERS
Technology is transforming the security 
service market by enabling more remote 
monitoring, intelligent services and even 
predictive security. In mature markets, sys-
tems integration is seeing particularly fast 
growth as the complexity of electronic 
security systems grows. Demand for 
value-added services and opportunities in 
the area of intelligent services is growing, 
fueled by continuous improvements in 
video monitoring technology. Smart home 
products are providing consumers with the 
ability to monitor their security systems via 
a smartphone or tablet, driving further 
growth in the security market.
OUR RESPONSE
Securitas is expanding its electronic secu-
rity capabilities as a response to a smarter, 
more digital society. We offer a complete 
range of security services, including elec-
tronic security, and are at the forefront of 
industry efforts to capture, analyze and 
respond to data that is gathered electro-
nically. The Securitas Operation Centers 
have a central part in this work. We 
ensure that data that we process on 
behalf of our clients, or regarding our 
employees or others, is protected.
DIGITAL  
TRANSFORMATION
8
Securitas Annual and Sustainability Report 2019

MARKET AND TRENDS
TREND AND MARKET DRIVERS
Economic prosperity is fueling demand  
for security services, with more assets to 
protect and more end users with the 
means to buy security services. Many 
companies have expanded across national 
borders and modern technology enables 
complex and interoperable security sys-
tems to be connected from anywhere in 
the world. China and India are expected to 
be the fastest growing national markets for 
security services through 2022, while the 
US will remain the world’s single largest 
market for security services. 
OUR RESPONSE
Securitas can offer both the technology 
needed to change the face of security, 
and the manpower. In addition to offering 
complex security systems that can be 
controlled across borders, we have an 
unmatched presence. With our approx-
imately 1 450 branch offices, we can 
meet the needs of our clients both glo-
bally and locally. In 2019, we created 
three new functional units to develop a 
global business approach and better add-
ress the global market.
GLOBALIZATION  
OF THE ECONOMY
TREND AND MARKET DRIVERS
Real or perceived threats of criminal acti-
vity continue to drive demand for more 
security. The perception of crime remains 
high even though conventional crime has 
not actually increased in most countries 
and the number of terrorist and militant 
incidents has fluctuated from year to year 
over the past decade. The public sector 
continues to outsource many security 
services to the private sector in the face 
of downsizing and cost-cutting programs 
as well as new and more complex threats 
that are challenging to handle. 
OUR RESPONSE
Securitas can offer security solutions and, 
if needed, extra services on short notice 
to the public sector. For example, we can 
provide on-site guarding in public areas to 
support the work of the police force or for 
infrastructure such as public transporta-
tion. Through its presence, Securitas can 
contribute to peace of mind in tense situa-
tions. We also provide professional risk 
analysis and risk management services to 
help tackle complex security issues.
 
SOCIETAL TENSIONS
TREND AND MARKET DRIVERS
Urbanization is a continuing trend around 
the world and as more people move into 
cities, the inequality gap is widening, 
leading to both real and perceived criminal 
activity. An expanding middle class and 
increased activity in building construction, 
particularly in the emerging economies, are 
increasing the demand for security servi-
ces. The residential market is expected to 
show the fastest growth as electronic moni-
toring equipment becomes more common. 
In the commercial sector, multinational 
firms are adopting technologically advan-
ced security solutions and services, parti-
cularly in the emerging urban areas of China 
and India.
OUR RESPONSE
Securitas continues to expand its presence 
in urban areas around the world to ensure 
close proximity to clients. We have a strong 
presence in both mature markets and deve-
loping countries, and can provide advanced 
security systems and consulting services. 
We can also offer highly trained security 
officers who are specialized in handling the 
increasing technological complexity of 
these new security systems.
 
URBANIZATION
9
Securitas Annual and Sustainability Report 2019

Staying safe is one of the most fundamental human 
needs. In a world where the threats to our safety is 
ever increasing and becoming more complex, our 
commitment at Securitas to help our clients make 
their world a safer place is more relevant than ever. 
We set the highest professional standards, con-
stantly looking for new technologies and we have 
an uncompromising attention to work ethics. Our 
strong values - Integrity, Vigilance and Helpfulness 
– form the basic principles for everything we do -  
OUR VALUE CREATION 
We help make your world  
a safer place
CLIENT CENTRIC
We always start from the client’s perspective, focusing on inte-
raction to develop deep client relationships. By supplying the 
right technology in combination with our employees’ know-
ledge and experience, a common way of working and a consis-
tent service delivery, security becomes more efficient and cost 
effective. The ongoing digitization of Securitas’ operations also 
enables us to offer our clients better analyses, risk assessments 
and solutions for the preventive security work.
PEOPLE FOCUSED
Securitas aims to be a responsible employer and we have the 
best and the most engaged employees in the industry. Our cor-
porate culture is built on strong values and a flat organization 
that encourages an entrepreneurial mindset. People will always 
be the core of the security solution and we strive to develop 
our employees so that they can be at the right place with the 
right skills. 
DATA DRIVEN
We leverage our scale and the large amount of operational data 
collected by our security officers and other sources to deliver 
results and value to our clients and employees. We take advan-
tage of this data to develop better and more intelligent pro-
ducts and modern and efficient tools for our security officers. 
Controls and processes are in place so that the data that we 
collect is handled responsibly.
Securitas is a global company that offers  
the best protective services solutions in the  
industry. Drawing on our long experience and 
in-depth knowledge about security, we can 
create tailored solutions that meet our clients’ 
complex security needs. With operations in 
56 countries in North America, Europe, Latin 
America, Asia, the Middle East and Africa and 
370 000 employees, we serve over 150 000 
clients of all sizes and from all industries with 
the aim to be their intelligent protective  
services partner.
SECURITAS
OUR WAY  
OF WORKING
and we wear them with pride every day, symbolized 
by the three red dots in our logo. 
Securitas is a modern, global company with highly 
skilled people and high-tech security systems. But 
our basic beliefs remains unchanged. Everything we 
do is based on our strong values, which have 
helped ensure global success for decades. And our 
purpose is in essence why we put on our uniform 
every day with great pride: We help make your 
world a safer place.
10
Securitas Annual and Sustainability Report 2019
VALUE CREATION

CLIENTS
•	In-depth knowledge and  
specialization to meet clients’  
security requirements
• Efficient and tailored security  
solutions to minimize interruptions 
in our clients’ businesses
• Innovation and data-driven approach 
to enhance our offering 
EMPLOYEES
•	Stable employer with long-term 
focus
• Fair wages and good working  
conditions
• Employee development through 
training and talent management
SHAREHOLDERS
• Long-term stable company
• More attractive investment
• Enhanced shareholder value 
 
SOCIETY
• Safer communities 
• Reduced costs for disruptions
• Fewer interruptions in critical  
functions
THE VALUES  
WE CREATE
OUR OFFERING
Remote 
Guarding
On-Site 
Guarding
Electronic 
Security
Mobile
Guarding
Corporate Risk 
Management
Fire and Safety
11
Securitas Annual and Sustainability Report 2019
VALUE CREATION

Targets and targets fulfillment
7.53
8.26
9.20
7.24
6.67
7.87**
9.17**
9.61**
82
60
85
67
83
2.3
2.2
* Real change, adjusted for changes in exchange rates, items affecting comparability, IFRS 16 and the impact from the US tax reform
** Adjusted for items affecting comparability
24%
SHARE OF FEMALE MANAGERS
TARGET
By 2021, the share of female managers 
at all levels should be at least the same 
as the share of women in the total 
workforce, which was 22 percent in 
2019.
8%
CHANGE IN INJURY RATE
TARGET
5 percent annual decrease of the  
Group injury rate (2019: increase with 
8 percent).
4%*
EARNINGS PER SHARE IMPROVEMENT   
(2018: 12 percent*)
TARGET 
An annual average increase of 10 percent
2.2
NET DEBT TO EBITDA RATIO  
(2018: 2.3)
TARGET 
A net debt to EBITDA ratio of on average 2.5
85%
OPERATING CASH FLOW   
(2018: 60  percent)
TARGET 
An operating cash flow of 70 to 80% of 
operating income
FINANCIAL TARGETS
SUSTAINABILITY TARGETS
2015       2016       2017       2018       2019
2015       2016       2017       2018       2019
2018       2019
Securitas Annual and Sustainability Report 2019
12
TARGETS

Securitas supports the United Nation’s Sustainable Development Goals (SDGs) and we 
take the goals into consideration into our strategy work and in our daily operations. 
Securitas is also a signatory of the UN Global Compact. Our primary focus is on the following       
targets where we believe we have good possibilities for positive impact. We also believe that we 
can have an impact through a number of other goals.
TARGET 5.1 AND 5.5:  
Securitas is an equal opportu-
nity employer and all employ-
ees are to be treated fairly and 
equally. Discrimination of 
women and discrimination 
based on other characteristics 
in hiring, compensation, train-
ing, promotion, termination or 
retirement is never acceptable. 
We believe that diverse work 
groups contribute to better 
business and we aim to in­c­
rease the number of women in 
management positions at all 
levels in the company.
TARGET 8.8:  
Securitas is a large employer 
with operations in many 
countries around the world. 
We strive to be a stable and 
responsible employer that 
offers good working condi-
tions and opportunities to 
grow. Decent labor practices, 
the right to organize and 
human rights are all vital to 
Securitas, our employees and 
our clients. We work actively 
with health and safety issues 
and our security officers 
receive training, instruction 
and equipment in line with the 
assignment, to minimize the 
health and safety risks. We do 
not accept any form of child 
labor or forced labor.
GOAL 16 AND TARGET 
16.5:  
Safety and stability is key in a 
well-functioning society. In an 
increasingly unpredictable 
world, Securitas’ role is to help 
companies, infrastructure and 
government authorities to 
operate the way they are 
intended, without interrup-
tions. The protection of work-
places, public areas and pro-
perties, carried out in a respon-
sible way, plays an important 
part in how we contribute to a 
safer and more sustainable 
and productive society. 
Securitas also has a zero-tole-
rance policy against all forms 
of bribery and corruption.
Securitas can also have a posi-
tive direct or indirect impact 
through the following goals:
3: GOOD HEALTH AND
WELL-BEING  
We work actively with health 
and safety issues for our 
employees, and also help 
others while on assignment.
4: QUALITY EDUCATION:
Securitas has its own training 
centers in most countries where 
we operate, and we offer our 
employees a large number of 
different courses and programs.
13: CLIMATE ACTION
We work to continuously reduce 
our climate impact, for example 
through reduced emissions 
from our vehicle fleet.
17: PARTNERSHIP FOR THE
GOALS: Securitas supports the 
achievement of the SDGs.
 
WE CONTRIBUTE TO UN’S SUSTAINABLE DEVELOPMENT GOALS
Read more in the Sustainability Notes on pages 144-154.
13
GLOBAL GOALS
Securitas Annual and Sustainability Report 2019

Taking Securitas into the future
Securitas is well positioned for the future. The services we offer are more in  
demand than ever before, and the security market is growing globally. From this strong  
position, we have set new ambitious targets as well as a strategy and a new purpose 
to help us achieve those targets. Our aim is to be the intelligent protective services 
partner for our clients. 
14
Securitas Annual and Sustainability Report 2019
OUR STRATEGY

During 2019, we fine-tuned our strategy and updated our tar-
gets (see page 12). Our strategic direction is designed to rein-
force our leadership role and generate long-term value creation. 
The strategy will take us into the future with more intelligent 
security services and security solutions. At the same time, we 
appreciate how crucial guarding services are for the company’s 
continued success.  
To achieve our desired position as the intelligent protective 
services partner, we are continuing to strengthen our core guar-
ding business, while also extending it through the addition of 
further protective services and solutions, including data-driven 
innovation in both existing and new products.    
LEADER IN GUARDING SERVICES
We have been a leader in guarding services for a long time - cur-
rently they account for 77 percent of Group sales - and we have 
grown to expand our presence to support our clients where they 
need us across the world. We are proud of our large and compe-
tent workforce and continuously work to offer competitive 
wages and an attractive workplace. We will maintain our focus 
on guarding services by increasing specialization, training and 
efficiency, which will free up time for our branch managers to 
spend directly with our clients. 
LEADER IN PROTECTIVE SERVICES
Over the last ten years, we have gradually enhanced our offering 
by adding more protective services, and we are now able to offer a 
comprehensive portfolio of services including on-site, mobile and 
remote guarding, electronic security, fire and safety, and corporate 
risk management. These services enable our security officers to 
deliver comprehensive security solutions and add value for the 
clients, at the same time as they strengthen our leading position 
and profitability. In 2019, we continued to build on our protective 
services offering through the acquisitions of the Australian compa-
nies Staysafe, an alarm monitoring company, and Fredon Security, 
specialized in high-end electronic security solutions. Security 
solutions and electronic security accounted for 21 percent of our 
Group sales in 2019, compared with 20 percent in 2018.
LEADER IN INTELLIGENT SERVICES
Data-driven innovations are now also changing the services that 
Securitas can offer, giving us the competitive edge. No other 
security provider can offer our combination of electronic secu-
rity services and guarding expertise. Investments in our techno-
logy infrastructure and in new competencies are helping us cap-
ture, analyze and respond to data. This increases client value 
and operational efficiency. 
At our Securitas Operation Centers, we have the ability to 
gather large amounts of data from camera feeds, sensors, inci-
dent reports and access controls that can help us with real-time 
detection and better prediction of security incidents. We 
recently piloted the Securitas Risk Prediction application, which 
helps us assess risk at client sites. We have also launched 
MySecuritas, a digital channel to our clients, which makes com-
munication between the client, the branch manager and the 
security officers seamless. These types of services are unique 
to Securitas, and we are continuing to work towards also beco-
ming a leader in intelligent services.  
Together, these building blocks ensure that we will have  
the best offering, the best people and the highest client  
engagement, becoming our clients’ natural intelligent protective  
services partner. 
Our employees’ engagement, 
pride and passion for their role 
are vital for our continued 
market leadership. 
Client engagement is about 
finding ways to deepen our 
client partnerships through an 
expanded value proposition, 
shared values and ethics. 
Securitas has the most com-
prehensive protective services 
portfolio in the industry today 
and we are further strengthe-
ning our offering. 
We are investing in our IT and 
business platforms to drive 
efficiency across the company. 
EMPOWERED  
PEOPLE
CLIENT  
ENGAGEMENT
EFFICIENCY
PROTECTIVE 
SERVICES AND 
INNOVATION
Our focus areas
To execute on our strategy to become the intelligent protective services partner, we are  
focusing on four areas: empowering our people, client engagement, protective services  
leadership and innovation, and efficiency. 
15
OUR STRATEGY
Securitas Annual and Sustainability Report 2019

Our employees represent the company on a daily basis, and our 
company’s reputation is determined largely by their actions. Early 
on, we recognized the need to have a management model,  Secu-
ritas Toolbox, to provide guidance on our corporate culture and 
values. This helps ensure that our work methods, management 
philosophy and client perspective are shared throughout the 
organization. It also helps ensure that our clients receive consis-
tent service, regardless of who they are or where they are located.  
Our strong company culture has been built by emphasizing 
our core values of Integrity, Vigilance and Helpfulness, and by 
continuously stressing the importance of sound ethics and com-
pliance. In 2019, we also added a purpose to articulate what we 
do and to further guide our employees in their daily work: We 
help make your world a safer place.     
FAIR WAGES AND GOOD WORK ENVIRONMENT
Securitas supports the United Nation’s (UN’s) Sustainable 
Development Goals, focusing particularly on goals that directly 
affect our employees, such as good working conditions and 
gender equality.  
Our market leadership is dependent upon attracting and 
retaining the best employees in a highly competitive industry. 
We aim to be the employer of choice by, among other things, 
providing a good work environment and paying fair wages. In 
the UK, for example, we are working closely with the Living 
Wage Foundation to end low pay in the lowest paid service sec-
tors. Securitas UK offers a “Living Wage” option to all prospec-
tive and current clients.
In the US, we are involved in industry associations such as 
the National Association of Security Companies (NASCO), an 
important stakeholder in ensuring good working conditions.  We 
also maintain a dialogue with unions around the world and are 
have a global framework agreement with UNI Global Union, who 
represents more than 20 million workers from over 900 trade 
Our officers go the extra mile
unions in the skills and services sectors.   
We prioritize good working conditions for all of our employ-
ees, and prior to accepting a contract with a client we evaluate 
the working conditions at the client site to ensure decent practi-
ces and a healthy work environment.  
HEALTH AND SAFETY
Poor health and safety procedures put our employees at risk 
and can damage our brand reputation, and we work actively 
with occupational health and safety issues in all countries. We 
continuously train our employees to ensure they can perform 
their tasks safely and have adequate equipment. Our security 
officers are trained not only to help themselves, but also to help 
others while on assignment, for example by performing first aid 
and CPR and ensuring fire safety. Our security officers receive 
training at least annually, and in many cases even quarterly.
Formal health and safety committees meet regularly, and 
client sites are assessed from a health and safety perspective.  
22 countries of operation have received OHSAS 18001/ISO 
45001 certification, and most of our operations have a “near-
miss” reporting system to help us identify safety hazards. Our 
health and safety approach and knowledge have also become 
part of the services we offer our clients.   
DIVERSITY AND INCLUSION
One of our challenges is to increase gender diversity, which is one 
of our main focus areas when it comes to achieving the UN’s Sus-
tainable Development Goals. Our target is to have at least the 
same percentage of women in management positions at all levels 
as we have in the total workforce. Securitas aims to achieve 
better diversity on all fronts, and is firmly committed to equal 
opportunity and non-discriminatory practices for everyone. We 
conduct our business in accordance with international conven-
tions such as the UN Universal Declaration of Human Rights.
Service-minded, knowledgeable and vigilant are just some of the characteristics that describe our 
370 000 employees working in 56 countries around the globe. We recognize that their engagement, 
pride and passion for their role are crucial for our continued market leadership. 
16
Securitas Annual and Sustainability Report 2019
EMPOWERED PEOPLE

With our vast global presence we are never that far from our 
clients and prospective clients. Today we have 150 000 clients 
(excluding monitoring only clients) and 150 global clients, inclu-
ding some of the largest companies in the world. 
Securitas has a loyal customer base, with a retention rate of 
close to 90 percent and approximately 80 percent recurring 
sales base. We are proud of this high retention rate, but do not 
take our success for granted. We plan to strengthen our position 
even further by focusing more on client engagement.
STRONG CLIENT RELATIONS
Client engagement is about finding ways to deepen the relation-
ship with our clients. It requires a long-term perspective, intelli-
gent data-driven solutions, global consistency in service deli-
very and the capability to scale from local to global solutions. 
We have a market-leading position in several countries and took 
additional measures in 2019 to ensure that Securitas’ culture, 
values and way of working are the same no matter where in the 
world our clients are active.
We are combining our strong local empowerment and deli-
very model with increased global consistency, which includes 
initiatives such as a global clients platform. We are also imple-
menting a number of initiatives to establish best practices and 
develop more digital, easy-to-use interfaces with clients.   
NEW GLOBAL FUNCTIONAL UNITS 
In 2019, we created three global functional units to support our 
strategy and work with our global partners. The Global Clients 
Closer to clients
and Vertical Markets functional unit is responsible for our largest 
global clients and for developing specialization in new vertical 
markets. The Global Electronic Security Business Center is 
responsible for developing a global business approach, with 
common tools, processes, products and services within electro-
nic security. The Global Guarding Center of Excellence will con-
tinue to strengthen our guarding core by developing global 
expertise, common tools and processes. 
Our global clients currently account for 13 percent of 
Securitas’ total sales and the number is growing due to 
increased globalization. There are few other security providers 
who can compete with us when it comes to global security 
knowledge.
VERTICAL MARKET SPECIALIZATION
We are strengthening our solutions offering and working 
towards solving problems based on global best practices. At the 
same time, we are able to adapt to the different needs of each 
client through tailored solutions and vertical market specializa-
tion. One example of this is our aviation industry expertise. In 
2019, we increased our aviation knowledge and capacity further 
through the acquisition of Global Elite Group, a security services 
provider to the US aviation industry with approximately 1 050 
employees. The customer base includes more than 60 com-
mercial airlines, among other aviation clients.  
With our in-depth understanding of each client’s business, 
values and goals, we can develop security solutions and servi-
ces tailored to their individual needs. 
Our clients’ security needs are changing and shifting from manned guarding to security solutions  
featuring a combination of manned services and technology, supported by modern, data-powered tools. 
With the right team and assets, Securitas is in a strong position to meet these needs. Client engagement 
and deeper partnerships will help us lead the industry into the future.  
17
Securitas Annual and Sustainability Report 2019
CLIENT ENGAGEMENT

RANGE OF PROTECTIVE SERVICES
Securitas has the most comprehensive protective services portfo-
lio in the industry today. Together with our large presence, this 
gives us a strong competitive advantage, and we see significant 
potential to grow further in each protective service as well as in 
solution sales. 
One of the biggest growth opportunities is in electronic 
security. All sectors, from data centers and transportation to 
healthcare and retail, utilize electronic security. This market is 
growing and is expected to be valued at USD 70 billion in 2021. 
The market for electronic security includes both systems inte-
gration and alarm monitoring, and few other providers can com-
pete with Securitas’ ability to offer both services. Today, we 
have electronic security capabilities in more than 30 countries 
and a global market presence.  
With its broad portfolio and independent technology exper-
tise, Securitas is a trusted advisor to our clients, offering them a 
one-stop-solution shop for all their security needs. By partne-
ring with leading industry manufacturers and acquiring compa-
nies with additional competencies, we are able to provide the 
full value chain, from sales, design and installation to mainte-
nance, monitoring and response. Through acquisitions, we are 
also expanding our global footprint to leverage growth opportu-
nities in line with our strategy.  
 
INNOVATION 
Securitas is leading the transformation of the security industry 
from low-tech to high-tech. We are employing people with compe-
tence in artificial intelligence, big data and digitized products, and 
together with our experienced security experts, they are develo-
ping new products and services as well as enhancing existing ser-
Protective services  
for every security need 
vices. Securitas’ size, presence and market position are all important 
factors that are enabling us to become data-driven, deliver intelligent 
services and provide quick and adequate response to our clients.
We are digitizing the client experience, often by co-developing 
new solutions together with them. For example, we have created a 
digitized client channel, MySecuritas, that delivers dynamic incident 
reporting and business intelligence to our clients in digital form. It is 
also a digital distribution channel for our own and partner services 
(see more on page 23).   
The security officer work methods are also being digitized to 
improve the quality and efficiency of our work. For our clients, this 
means that they will be able to see clearly, and even in real-time, how 
we deliver value to them. For our employees, it improves their work 
experience as they can get better support from other connected 
security officers in the field or in the SOC, Securitas Operation Center. 
The digital interface makes it possible for Securitas to deploy 
new services in a quick, easy and consistent way. In parallel, we are 
constantly working to ensure that the data gathered is anonymized, 
structured and utilized in line with data protection regulations and 
our own policies.   
ACQUIRING GLOBAL EXPERTISE 
In 2019, we acquired two companies that will help us become the 
intelligent protective services partner in Australia. The purchase of 
the alarm monitoring company Staysafe is helping us to establish ser-
vice delivery and innovative solutions, while the acquisition of Fredon 
Security adds to our capabilities in the area of high-end electronic 
security solutions.    
We also acquired the electronic security company Allcooper 
Group in the UK, a company specialized in the installation, mainte-
nance and monitoring of security and fire systems. 
The demand for security services continues to grow, and delivering high-quality solutions to our 
clients is the essence of what we do. We are therefore further strengthening our protective services 
through deeper specialization in each protective service combined with an even greater emphasis 
on selling and delivering solutions as well as adding data-driven innovation.    
18
Securitas Annual and Sustainability Report 2019
PROTECTIVE SERVICES AND INNOVATION

We are investing in our IT and business platforms to drive effi-
ciency across the company. Transforming the organization by 
modernizing our technology and engaging in more collaboration 
and sharing of business practices will improve our capabilities 
and increase our profitability.
IS/IT PLATFORM
Securitas is investing in a modern, scalable IS/IT platform. This 
is one of two major transformation programs that will increase 
efficiency and support the execution of our strategy. Our target 
is to reduce our current IT costs with MSEK 300 year-on-year 
by 2022 through this major investment in a data-driven techno-
logy platform. 
The multi-year transformation is well under way, and we 
have already completed the merger of our IT operations in 56 
countries into a leaner, global IT structure. The new structure 
comprises two delivery hubs – one for the EMEA and APAC 
regions and the other in the Americas. We have also established 
11 IT clusters that are spread around the globe. This restructur-
ing ensures that our IT operations can support both global and 
local efforts in an optimal way. 
Efficiency a key priority
FURTHER MEASURES
We are also driving change through our business platforms to 
improve our ways of working, best practice sharing and collabo-
ration. In 2019 we started a business transformation program in 
North America with the target of improving our operating 
margin by up to 0.5 percentage points by 2022. 
Additional projects are under way to improve our service 
delivery and focus on providing support to both our salespeople 
and our clients. We are digitizing tools for our security officers 
and have a customer excellence program that includes a global 
client relationship management (CRM) system. 
To achieve a more efficient back office, we are integrating 
systems, reducing manual processes and improving our tools 
for finance, HR and administrative work. Digital tools for the 
“officer of tomorrow” offer another step in the right direction. 
Our transformation towards further efficiency is an ongoing pro-
cess that will continue in the years to come.
Multiple programs are underway to drive efficiency within Securitas including the establishment  
of a new global IT platform and a business transformation program. These programs are helping 
us lead the transformation of the security industry.
19
Securitas Annual and Sustainability Report 2019
EFFICIENCY

Solving today’s and tomorrow’s 
security challenges
We always start from the client’s perspec-
tive, focusing on interaction to develop 
deep client relationships. By supplying 
the right technology in combination with 
our employees’ knowledge and expe-
rience, a common way of working and a 
consistent service delivery, security beco-
mes more efficient and cost effective. The 
ongoing digitization of Securitas’ opera-
tions also enables us to offer our clients 
better analyses, risk assessments and 
solutions for the preventive security work.
Securitas aims to be a responsible 
employer and we have the best and the 
most engaged employees in the industry. 
Our corporate culture is built on strong 
values and a flat organization that encou-
rages an entrepreneurial mindset. People 
will always be the core of the security 
solution and we strive to develop our 
employees so that they can be at the right 
place with the right skills. 
We leverage our scale and the large 
amount of operational data collected by 
our security officers and other sources to 
deliver results and value to our clients and 
employees. We take advantage of this 
data to develop better and more intelligent 
products and modern and efficient tools 
for our security officers. Controls and pro-
cesses are in place so that the data that we 
collect is handled responsibly.
Securitas is a global company that offers the best protective services solutions in the indu-
stry. Drawing on our long experience and in-depth knowledge about security, we can create 
tailored solutions that meet our clients’ complex security needs. With operations  
in 56 countries in North America, Europe, Latin America, Asia, the Middle East and Africa 
and 370 000 employees, we serve over 150 000 clients of all sizes and from all industries 
with the aim to be their intelligent protective services partner.
CLIENT CENTRIC
PEOPLE FOCUSED
DATA DRIVEN
20
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

We have a valuable 
relationship with our 
Securitas partner that 
covers multiple levels 
of security needs.
Rob Gray, Vice President  
Cox Enterprise Security 
Securitas has developed a customized security solution for Cox 
Automotive that includes a wide range of protective services. 
The company is currently Securitas’ largest remote guarding 
client in North America.
The relationship between Cox Automotive and Securitas 
began just a few years ago, with Securitas providing guarding 
services for Cox Automotive’s core business of automobile auc-
tions. Cox Automotive is a division of Cox Enterprises based in 
Atlanta, Georgia, and is one of the largest auto auction compa-
nies in the world. Cox Automotive is driven by a passion for 
mobility, innovation, client success and community outreach, 
and the company aims to make selling, owning and using cars 
easier for everyone. 
 Cox’s internal security team oversees physical security, 
investigations, business continuity, crisis management, data 
governance, identity theft and loss prevention. The team works 
closely with the senior leadership at Cox companies when it 
comes to recommending and advising on security policies and 
procedures. 
Securitas and Cox Automotive have a shared mission: to pro-
tect a very large number of vehicles housed outdoors at whole-
sale auto auction sites in the US. Cox Automotive processes 
over half of all used cars in the US and the company needed to 
improve its security without adding significant labor costs. With 
responsibility for the customer experience, site safety and the 
physical security of auction vehicles, they face significant secu-
rity threats. Managing the logistics of receiving and releasing 
vehicles requires a unique and detailed process and Securitas 
collaborated with Cox Automotive to implement the Securitas 
protective service solutions that meet the Cox’s specific needs. 
Securitas currently serves a large number of sites across the 
US and Puerto Rico, and Cox Automotive has become Securitas’ 
largest remote guarding client in North America. Together with 
the client, Securitas has developed a customized security solu-
tion that includes electronic security, on-site, mobile and remote 
guarding as well as corporate risk management. This includes a 
perimeter protection solution with high-definition outdoor IP 
cameras, a video management system and audio recording 
capabilities installed at Cox Automotive’s facilities. 
The cameras send alerts to the Securitas Operation Center, 
where specially trained remote guarding officers investigate and 
respond as required for example, by dispatching mobile patrol 
officers. The ability to integrate video analytics with guarding as 
well as physical perimeter barriers, provides a valuable solution 
for Cox.   
Securitas, in partnership with the security team at Cox, has 
provided a comprehensive security solution resulting in both 
program efficiencies and cost savings. “We have a valuable rela-
tionship with our Securitas partner that covers multiple levels of 
security needs. We look forward to a continued and successful 
partnership in the future”, says Rob Gray, Vice President Cox 
Enterprise Security. The partnership has improved Cox’s overall 
loss prevention program and client experience, and data provi-
ded by Securitas is aiding Cox in the strategic planning of their 
overall security program.    
CASE: CLIENT CENTRIC 
STRONG SECURITY PARTNER FOR COX AUTOMOTIVE
21
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

We benefit from  
the fact that  
Securitas always  
is up to date with  
the latest  
technology 
development.
Paul Gray,  
Chief Operating Officer,  
National Gallery
Securitas has not only enhanced security at the National Gallery 
in London, but also helped provide a better visitor experience, 
leading to higher membership sales. 
The National Gallery in London, UK, is one of the world’s 
best-known art galleries, with a history dating back to the 
1820s. The gallery welcomes up to six million visitors per year 
and is committed to education, with an extensive program inclu-
ding free public lectures, guided tours and seminars. The valua-
ble collections, in combination with the gallery’s ambition to be 
as accessible as possible to the general public, present quite a 
challenge from a security perspective.  
Securitas has been providing security and visitor engage-
ment services to the National Gallery since 2015. The contract 
included taking over 350 employees who, up until then, had 
worked directly for the museum. The transition was not entirely 
smooth, and job satisfaction went down after the change. At the 
beginning of 2018, Securitas appointed a new key account 
manager. Some time later, new sales and operations managers 
started at the National Gallery. Both the client and Securitas 
agreed that new solutions were necessary to make the contract 
successful and to increase employee satisfaction. It was also 
important to establish good relations with the union represen-
ting the employees.
In June 2019, the National Gallery signed a five-year exten-
sion of its contract with Securitas, marking the start of a new way 
of working at the gallery based on an integrated approach to 
technology and people. The common goal was enhanced secu-
rity, a better visitor experience and increased efficiency. Securitas 
engaged with the gallery’s different stakeholders, including exter-
nal parties such as the Metropolitan Police, to explain the benefits 
of the proposed changes and get their support. 
As a start, the 300 Securitas employees working with secu-
rity at the National Gallery received further training and equip-
ment to allow for full communication between all security 
departments. The different teams responsible for security in the 
gallery, in perimeter security and in alarm response now have 
efficient work routines and processes so that they can solve any 
issues that arise in the best way possible. Incident response 
times are down to approximately 45 seconds, compared to a 
minute and a half under the former system. 
Securitas not only provides security to the National Gallery, 
but also runs all visitor engagement activities, which includes 
selling tickets and membership packages. Being a public 
museum, the National Gallery must raise a large part of its fun-
ding from commercial activities in order to meet its public sector 
financial obligations. 
A special training program, focusing on behavioral training 
and sales training, was created for the visitor engagement team 
members. The result has exceeded everyone’s expectations as 
sales of memberships have gone up since Securitas took over, 
from around 1 000 per year to nearly 10 000 in 2019. There 
have been a number of challenges and obstacles along the way, 
but together with the client, Securitas has created an efficient 
security solution with skilled and engaged employees. 
As its biggest supplier and with a direct impact on the 
gallery’s day-to-day commercial revenues, Securitas is now 
seen as a vital partner in the National Gallery’s wider ambitions. 
We are also very pleased that the National Gallery is a Living 
Wage client, which means that they are committed to paying 
wages that meet the cost of living.
CASE: PEOPLE FOCUSED 
THE ART OF ENGAGING EMPLOYEES
22
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

With MySecuritas’ 
user-friendly interface 
clients can see what 
we are doing by 
providing a clear and 
immediate overview of 
what Securitas delivers 
to them, even when 
there are no incidents.
Martin Althén,  
Chief Information Officer, Securitas
Through machine learning and predictive data models, Securitas 
is increasing its ability to understand the risk of security incidents, 
both criminal and otherwise. This knowledge will change the 
security services we deliver to our clients and give us a competi-
tive edge.
A key element in Securitas’ strategy is to promote innovation 
of new services – a journey we have started with the aim of 
becoming the intelligent protective services partner globally, 
leading the transformation of the security industry. We are 
involving employees across Securitas as well as our clients in 
this transformation. Our focus is to both enhance and augment 
existing services and to bring new services to the market that 
address the specific needs of our clients. To achieve this, it is 
fundamental that we extend our digital channels.
In 2019, based on client interviews and in close collaboration 
with clients across various segments, Securitas launched MySe-
curitas, a channel focused on small and medium-sized clients. 
Now in its first version, MySecuritas delivers dynamic incident 
reporting and business intelligence to our clients in digital form. 
In addition, it serves as a digital distribution channel for our ser-
vices as well as those of our partners. Based on early data and 
feedback from clients, MySecuritas has been shown to enable 
increased client retention and fuel demand for additional service 
offerings. Altogether, the results are very encouraging. 
The second digital service distributed and launched through 
MySecuritas was a risk prediction module. Based on multiple 
datasets, statistical models and machine learning algorithms, 
this service can predict where and when security incidents are 
most likely to occur – in real time. By analyzing data from our 
own operations combined with open data sources, the service 
offers highly accurate, site-specific risk assessments. In a user-
friendly interface, clients get a clear and immediate overview of 
the risk level across their operations, data that can be used to 
improve efficiency. The service also provides information and 
statistics about general risk levels across various areas and com-
parative indicators at the geographical level.  The development 
of new services always considers individuals’ integrity.
In combination with sophisticated machine learning algo-
rithms, the collection of data from our more than 340 000 secu-
rity officers enables Securitas to better understand risk across 
the security spectrum. These industry-specific insights enable 
our clients to manage their security more effectively as well as 
optimizing Securitas’ service delivery and enabling us to proac-
tively deploy security officers and better advise our clients. As a 
security partner, this gives us a unique opportunity to differenti-
ate ourselves from the competitors by demonstrating that 
Securitas is the knowledge leader in the security industry.
CASE: DATA DRIVEN 
HIGHLY ACCURATE RISK PREDICTION
23
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

OUR OPERATIONS
Securitas Annual and Sustainability Report 2019
24

Securitas has a leading global and local market presence with operations in 56 countries.  
Our operations are organized in three business segments: Security Services North America, Security  
Services Europe and Security Services Ibero-America. We also have operations in Africa, the Middle East 
and Asia, which form the AMEA division. This division is reported as “Other” in our segment reporting. 
We believe that we add value to our clients by combining our 
global presence with local expertise in close to 1 450 branch 
offices. Securitas has a leading protective services offering  
including on-site, mobile and remote guarding, electronic secu-
rity, fire and safety services and corporate risk management. Our 
security services are managed and coordinated through 44 
Securitas Operation Centers (SOC), where operators can quickly 
address our clients’ security issues. The information gathered by 
our SOCs provides our clients with high-quality security around 
the clock, along with analytics, analysis and client reports. 
SECURITY SERVICES NORTH AMERICA 
Security Services North America provides protective services in 
the US, Canada and Mexico. The operations in the US are orga-
nized in four specialized units - Guarding, Electronic Security, 
Pinkerton Corporate Risk Management and Critical Infrastructure 
Services. Guarding includes on-site, mobile and remote guarding 
and the unit for global and national accounts, as well as Canada 
and Mexico. There are also specialized client segment units, such 
as aviation, healthcare, manufacturing and oil and gas. 
SECURITY SERVICES EUROPE 
Security Services Europe provides protective services across 
Europe with operations in 27 countries, whereof 15 countries pro-
vide airport security. The full range of protective services includes 
on-site, mobile and remote guarding, electronic security, fire and 
safety services and corporate risk management. In addition there is 
a specialized unit for global client contracts.
SECURITY SERVICES IBERO-AMERICA 
Security Services Ibero-America provides protective services in 
nine Latin American countries as well as in Portugal and Spain in 
Europe. Airport security is offered in seven countries. The offered 
services include on-site, mobile and remote guarding, electronic 
security, fire and safety services and corporate risk management. 
SECURITAS’ MARKETS
SALES PER SEGMENT 
of Group total
EMPLOYEES PER SEGMENT 
of Group total
█	 Security Services
	 North America 44%
█	 Security Services Europe 43%
█	 Security Services
	 Ibero-America 12%
█	 Other (incl. AMEA) 1%
█	 Security Services
	 North America 33%
█	 Security Services Europe 34%
█	 Security Services
	 Ibero-America 17%
█	 Other (incl. AMEA) 16%
The power of presence
North America
›› Canada
›› Mexico
›› USA
 
Europe
›› Austria
›› Belgium
›› Bosnia and 
Herzegovina
›› Croatia
›› Czech Republic
›› Denmark
›› Estonia
›› Finland
›› France
›› Germany
›› Greece
›› Hungary
›› Ireland
›› Latvia
›› Luxembourg
›› Montenegro
›› The Netherlands
›› Norway
›› Poland
›› Romania
›› Serbia
›› Slovakia
›› Slovenia
›› Sweden
›› Switzerland
›› Turkey
›› The United 
Kingdom
Ibero-America
›› Argentina
›› Chile
›› Colombia
›› Costa Rica
›› Ecuador
›› Panama
›› Paraguay
›› Peru
›› Portugal
›› Spain
›› Uruguay
›› Australia
›› China
›› Egypt
›› Hong Kong
›› India
›› Indonesia
›› Jordan
›› Morocco
›› Saudi Arabia
›› Singapore
›› South Africa
›› South Korea
›› Sri Lanka
›› Thailand
›› The United 
Arab Emirates
›› Vietnam
Africa, Middle East and Asia (AMEA)
OUR OPERATIONS
25
Securitas Annual and Sustainability Report 2019

TRANSFORMATION AND 
SPECIALIZATION
Organic sales growth remained favorable 
in 2019, despite the strong comparatives. 
Our IT and business transformation initia-
tives progressed according to plan. These 
activities will be the foundation for our 
continued growth and value creation, with 
productivity improvements and efficiency 
gains in all operations. 
Specialization is also a focus area. In 
2019, we restructured the operations into 
client segments and solution-specific busi-
ness units that create synergy effects and 
allow us to deliver tailored security solu-
tions and expertise to our clients. At the 
same time, we increased the number of 
branch managers. With smaller client port-
folios, the branch managers can not only 
spend more time with each client to better 
understand their specific needs, but also 
be closer to the security officers.
THE MARKET
The North American security market is 
continuing to experience aggressive con-
SALES
OPERATING  
INCOME BEFORE 
AMORTIZATION
TOTAL  
CAPITAL 
EMPLOYED
NUMBER  
OF 
EMPLOYEES
BRANCH  
MANAGERS
  
OPERATING 
MARGIN
SECURITY 
SERVICES  
NORTH 
AMERICA
MSEK 48 499
MSEK 3 003
MSEK 19 202
121 000
44
44%
solidation, something that requires us to 
engage in disciplined strategic planning 
and execution.
Unemployment rates in North America 
remain very low, making the labor market 
challenging as employers compete to 
attract top talent. To strengthen our 
employer brand, we have introduced the 
SecuritasCommitment program, which 
supports employee development and 
well-being.
A SUSTAINABLE BUSINESS
In addition to SecuritasCommitment, we 
offer our employees development oppor-
tunities that help them carry out their 
assignments in the best possible way and 
also support the pursuit of other profes-
sional and personal goals. In the US, we 
have an exclusive partnership with a uni-
versity to offer several security certificate 
programs as well as financial benefits to 
help our security officers earn associate 
and bachelor’s degrees.
Securitas has a large vehicle fleet and 
to reduce our climate footprint we have 
set a goal of converting more than 25 per-
cent of our North American fleet to electric 
vehicles by the end of 2020. We are also 
actively seeking diverse suppliers.
GOALS AND PRIORITIES IN 2020
In line with our strategy, we will fully lever-
age our vast data assets and advanced 
analytics to increase productivity and 
strengthen our service offering. We 
believe this will confirm our position as the 
leader in intelligent protective services. 
Given our size in the security industry, we 
will continue to drive the implementation 
of fair wages and benefits for our security 
officers. Diversity is also a prioritized area 
to remain an employer of choice.
Santiago Galaz
Divisional President  
Security Services North America
Santiago Galaz was Divisional President Security Services  
North America until December 31, 2019. From January 1, 2020, 
Santiago Galaz is Executive Chairman Security Services North 
America.
NORTH AMERICA
52%
52%
33%
700
6.2 %
26
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

SALES
OPERATING  
INCOME BEFORE 
AMORTIZATION
TOTAL  
CAPITAL 
EMPLOYED
NUMBER  
OF 
EMPLOYEES
BRANCH 
MANAGERS
  
OPERATING 
MARGIN
SECURITY  
SERVICES  
EUROPE
MSEK 47 248
     MSEK 2 582
      MSEK 13 284
       124 000
INCREASED FOCUS ON MULTI­
NATIONAL CLIENTS 
Securitas has a strong footprint in Europe, 
with operations in 27 countries. This is 
unmatched in the European security 
industry. The underlying momentum for 
the business is good, even though organic 
sales growth in 2019 decreased com-
pared with the previous year. This is due 
to the loss of certain client contracts in 
France and the UK. Growth was favorable 
in Belgium, Germany, Turkey and the 
Nordic countries. Sales of security solu-
tions and electronic security progressed 
well and increased from 21 percent to 22 
percent of total sales. Our clients value our 
strong brand and the quality services we 
provide. This is exemplified in the steady 
growth of cross-border contracts with 
multinational clients. A cost-savings pro-
gram that will increase efficiency was 
implemented in 2018 and is progressing 
according to plan.
THE MARKET
The European market for security services 
grew approximately 2 percent in 2019. 
Economic growth in Europe began to slow 
during the year, while wage inflation con-
tinued. Securitas has a broad offering of 
protective services, which provides us with 
opportunities to create cost-efficient and 
value-added security solutions for our cli-
ents. This gives us a strong position as the 
leading company in the security industry, 
even in times of economic slowdown. 
A SUSTAINABLE BUSINESS
We continue to focus on further improving 
our talent management, training and hiring 
processes. Securitas aims to be a pre-
ferred employer, and we continuously 
work to improve our brand, position and 
attractiveness for current and potential 
employees. Other priorities include 
increasing diversity and focusing on occu-
pational health and safety work to ensure 
that our employees can carry out their 
assignments in a safe way. We also value a 
proactive relationship with the European 
Works Council.
GOALS AND PRIORITIES IN 2020
To support Securitas’ strategy in 2020, we 
are accelerating the growth of security 
solutions and electronic security through 
further investments, training and strength-
ening of capabilities throughout the orga-
nization. We will also enhance our pro-
gram for working with global clients, pri-
marily through our Client Excellence 
program. Efficiency gains will be made by 
strengthening our system support and by 
further automating key operational pro-
cesses. 
Peter Karlströmer 
Divisional President
Security Services Europe
EUROPE
43%
45%
36%
34%
5.5 %
730
27
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

SALES
OPERATING  
INCOME BEFORE 
AMORTIZATION
TOTAL  
CAPITAL 
EMPLOYED
NUMBER  
OF 
EMPLOYEES
BRANCH 
MANAGERS
  
OPERATING 
MARGIN
SECURITY  
SERVICES 
IBERO-
AMERICA
MSEK 13 099
MSEK 614
MSEK 3 636
64 000
2
12%
FAVORABLE GROWTH DESPITE 
POLITICAL CHALLENGES
2019 was a year of change in Security 
Services Ibero-America. I assumed the role 
as Divisional President on July 1, after 
many years as Country President in Portu-
gal. We also welcomed new leaders in cer-
tain countries in Latin America and in Por-
tugal as a means of gearing up for the 
future.
The political, economic and social situ-
ation in the division, especially in Latin 
America, was challenging in 2019, but 
organic sales growth remained strong. We 
have a very good client portfolio with great 
potential, particularly in the private sector, 
where we have experienced favorable 
development. Our 64 000 employees are 
making sure that we can deliver high-qual-
ity security solutions every day. The 
Securitas Operation Centers continue to 
add value to our protective services, and 
thereby to our clients.
THE MARKET
The market for private security services 
was affected by political and social chal-
lenges in certain Latin American countries 
during 2019. Economic and budgetary 
pressures in those countries are increasing 
the need for security and safety and for 
more efficient and innovative security 
solutions. This represents an excellent 
opportunity to implement Securitas’ strat-
egy more effectively.
In Spain and Portugal, on the other 
hand, we are seeing growing regulation of 
the private security services sector, and 
there is currently a demand for security ser-
vice providers that can contribute to stable 
operations and provide added value. 
A SUSTAINABLE BUSINESS
Securitas has its own training centers in all 
countries, and offers courses ranging from 
basic to very advanced. Talent manage-
ment, activities to promote diversity, and 
continuous improvements to our occupa-
tional health and safety work are important 
areas that we believe will increase 
employee satisfaction and help us remain 
an attractive employer.
Following internal whistleblowing 
Securitas has conducted an investigation 
into potentially improper conduct in Argen-
tina. During the investigation we have taken 
decisive actions, including terminations, and 
worked to improve our internal controls in 
Argentina and the other countries in the 
division.
GOALS AND PRIORITIES IN 2020
In line with Securitas’ strategy we are enhanc-
ing our technical platforms and production 
tools. We are also increasing focus on client 
centricity, for example by further developing 
the branch manager model and a flat organi-
zation. Promoting leader development is key 
to supporting all operational and commercial 
processes related to client engagement.
Security solutions and electronic security 
sales accounted for 27 percent of total sales 
in the business segment at the end of 2019, 
and we fully support the strategic transfor-
mation ambition to double these sales by 
2023. By strengthening our existing foot-
print, we anticipate favorable growth oppor-
tunities in 2020 and beyond. 
Jorge Couto 
Divisional President  
Security Services Ibero-America
11%
10%
17%
4.7 %
160
IBERO-AMERICA
28
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

EXPANDING IN THE REGION
Securitas continued to grow well in the 
Africa, Middle East and Asia (AMEA) divi-
sion in 2019, with favorable margin 
improvements. We are especially proud of 
being awarded our first nationwide con-
tract in Australia as well as winning a con-
tract with a major technology company 
focusing heavily on Asia – the largest con-
solidated security contract across the 
AMEA region. We continued investing in 
our protective services in key markets to 
strengthen our client value proposition, for 
example by further developing our 
Securitas Operation Centers in Singapore 
and Hong Kong. Two strategic acquisitions 
in Australia put us in a unique position to 
deliver security solutions and electronic 
security in the country, and at the end of 
the year we received a license allowing us 
to start operations in Beijing, China.  
THE MARKET
The guarding market in the AMEA region is 
the fastest growing in the world. It is 
expected to have an annual growth rate of 
close to 10 percent, reaching a 45-percent 
share of the global guarding market by 
2023. This growth is mainly being driven by 
India and China. There are major differences 
in terms of market maturity, from some of 
the most developed and digitized markets 
in the world to some of the least developed. 
We see major growth opportunities for our 
protective services and security solutions in 
the developed markets, while there is strong 
potential to build up high-quality guarding 
services in all our markets.
A SUSTAINABLE BUSINESS
Ethical business behavior, a strong culture 
and living by our values are prerequisites 
for our leaders and employees across the 
AMEA region, regardless of the challenges 
faced in the local market. These practices 
are integrated into our daily work and into 
our processes for recruiting, training and 
developing our employees. We also 
actively engage in sustainability and com-
pliance topics with our clients, working 
together to make a difference, for example 
regarding diversity. One example is the 
implementation of a workforce benefits 
program in cooperation with one of our 
key global clients in Singapore, a ground-
breaking project that has improved both 
service quality and employee satisfaction. 
GOALS AND PRIORITIES IN 2020
We will continue to work closely with our 
clients and execute our commercial 
growth strategy in 2020, focusing on 
client centricity. This includes accelerated 
investments in prioritized markets, both 
organically and through acquisitions, to 
build up our protective services and secu-
rity solutions offering. Digitizing our secu-
rity officers’ tasks will improve the stan-
dardization and consistency of the ser-
vices we deliver. The data retrieved from 
our operations will also be used to improve 
efficiency and innovation. Leadership, suc-
cession planning, talent management and 
the development of our employees are 
critical to building a long-term sustainable 
business model in the AMEA region. 
Andreas Lindback 
Divisional President
Africa, Middle East and Asia (AMEA)
AFRICA, MIDDLE EAST AND ASIA
29
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

In 2019, we articulated a purpose in order to further strengthen 
our culture and guide our employees in their daily work. That 
purpose – We help make your world a safer place – is about 
sharing strong values and providing peace of mind and business 
continuity.
ETHICAL PRACTICES
At Securitas, we always aim to do what is right when it comes 
to our clients, our employees and society. Securitas’ Values and 
Ethics Code provides guidance in this area. All of our employees 
and business partners are expected to follow the Code and 
other key policies to ensure compliance with applicable local 
and extraterritorial laws. All of our employees receive training in 
the Code and other key policies. We also include compliance 
with the Code in our supplier contracts, with specific guidelines 
and standards for suppliers, and we conduct supplier risk 
assessments when required.
Securitas has a zero-tolerance policy against all forms of 
bribery and corruption. We encourage all employees to report 
incidents of non-compliance with Securitas’ Values and Ethics 
A shared sense 
of responsibility 
Code as well as any irregularities they may encounter in their 
work. This can be done through various channels, including the 
Group’s reporting system, Securitas Integrity Line, which is 
known as Securitas Hotline in the US and Canada, and Linea de 
Alerta in Mexico.
Our business is conducted within the framework of the laws 
and regulations of the countries where we operate and in accor-
dance with international conventions, such as the United Nations 
Universal Declaration of Human Rights, the OECD’s Guidelines for 
Multinational Enterprises and the ILO’s Declaration on Fundamen-
tal Principles and Rights at Work. We have also signed the United 
Nations Global Compact and follow the GRI standards for sustain-
ability reporting.
CORE VALUES
Our core values form the foundation for the entire company 
when it comes to our high ethical standards and responsibilities. 
Integrity, Vigilance and Helpfulness are the shared values that 
guide our way of working and how we manage and conduct our-
selves in our client relationships. These values date back to the 
1950s but remain equally valid today.
Securitas has always emphasized the importance of 
having a strong culture and core values in order to 
offer our clients the best team in the security services 
industry. These efforts have made our company the 
success it is today. 
30
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

We encourage an environment of openness, accessibility, pride 
and empowerment. Having a flat, non-hierarchal organization 
helps foster this type of environment. Our management model, 
the Securitas Toolbox, provides guidance on our corporate cul-
ture and values to ensure that our work methods, management 
philosophy and client perspective are shared throughout the 
organization.
LONG-TERM PROFITABLE GROWTH 
Securitas was founded in Sweden in 1934, initially with just three 
employees. Our numbers have grown significantly since then to 
370 000 employees, and today we are located in 56 countries. 
Our client numbers have also grown enormously. One thing that 
has not changed, however, is our sense of responsibility towards 
our employees and clients and our commitment to delivering 
high-quality services. This has helped and will continue to help us 
secure long-term profitable growth, especially as ethics and com-
pliance issues become increasingly important in many parts of 
the world. 
Sustainability is well integrated into our operations and this will 
help us retain our strong market foothold. At the same time, 
there are certain risks that could affect our growth, such as 
restrictions on private security companies operating in a particular 
market, increased insourcing of security services and diminished 
confidence in private security companies. Non-compliance with 
Securitas’ Values and Ethics Code could result in reputational 
damage, lost revenues, penalties, fines or difficulties in recruiting. 
Our process for enterprise risk management (ERM) is well 
integrated into the business, and all countries within the Group 
perform an annual self-assessment, which is part of the process 
of managing enterprise-wide risks and maintaining a sound busi-
ness well into the future.
 
31
Securitas Annual and Sustainability Report 2019
OUR OPERATIONS

CORPORATE GOVERNANCE  
AND MANAGEMENT
 
32–52
Compliance with the Code 
32
Comments by the Chairman
33
Securitas governance model
34
Shareholders 
35
Annual General Meeting 
35
Nomination Committee 
36
Board of Directors 
37
Audit Committee 
38
Remuneration Committee 
38
Auditors 
39
Facts on Board of Directors 
39–41
Facts on Group Management 
42–43
Enterprise risk management (ERM)  
and internal control 
 
44–51
Signatures of the Board of Directors
52
Auditor’s report on  
Corporate Governance Statement 
52 
Corporate
governance  
report 
The corporate governance report, which has been prepared in 
accordance with Chapter 6, Section 6 and 8 of the Swedish Annual 
Accounts Act, provides key information concerning compliance with the 
Swedish Corporate Governance Code (the Code), shareholders, the 
Annual General Meeting, Nomination Committee, Board of Directors and 
their work, including committees, remuneration and the division of 
responsibilities throughout the governance structure. This section also 
covers Securitas’ system of internal control and risk management, which 
is the responsibility of the Board of Directors according to the Swedish 
Companies Act and the Swedish Corporate Governance Code. This 
description does not form part of the Annual Report.
In the Internal control section pertaining to risk, we have opted to 
widen the scope of our description and explain how enterprise risk 
management works in the broader perspective regardless of the type of 
risk, which means that our focus is not confined to risk related to internal 
controls over financial reporting. Fulfilling our strategies and objectives 
while maintaining an appropriate risk level is imperative, which is why risk 
management procedures span all levels of the organization. 
Read more at www.securitas.com / corporate-governance
Securitas has published its principles for corporate governance in 
previous Annual Reports. A separate section on the Group website 
contains the Articles of Association and other key company documents.
Securitas complies with the Code principle of “comply or explain” and has 
two deviations to explain for 2019.
Code rule 2.4 Neither the company chair nor any other member of the 
Board may chair the Nomination Committee.
Comment: Investment AB Latour has appointed Carl Douglas as Chair-
man of the Nomination Committee. The Committee considers it 
important to have a representative from the major shareholders as 
Chairman of the Committee. 
Code Rule 9.7 For share-based incentive programs, the vesting period, 
or the period from the commencement of an agreement to the date on 
which the shares are acquired, is to be no less than three years. 
Comment: Securitas’ share-based incentive scheme was implemented 
in 2010 and has been renewed annually since then. It was based on the 
then-existing bonus structure of the Securitas Group. In simple terms, 
the bonus potential was increased in exchange for a one-time salary 
freeze and one-third of the cash bonus outcome was to be received in 
shares in March of the year following the year in which the cash bonus 
would have been paid out, provided that the person remained employed 
by Securitas at such time.
Since the program replaces an immediate cash bonus payout and is 
not granted in addition to already existing bonus rights, the Board 
deems that the two-year period from the commencement of the pro-
gram until the release of the shares is well motivated and reasonable in 
order to achieve the purpose of the program.
COMPLIANCE WITH THE SWEDISH 
CORPORATE GOVERNANCE CODE  
(THE CODE)
32
Securitas Annual and Sustainability Report 2019

On behalf of the Board of Directors, I would like to begin by 
expressing our appreciation to all Securitas employees across the 
world for their commitment and engagement during 2019.
Securitas has a long and proud history. It started in 1934 as a 
small guarding company in Sweden, and our core values of Inte-
grity, Vigilance and Helpfulness, which were established back in 
the 1950s, are equally valid today. These strong values have 
played a key role in Securitas’ successful journey, and we have now 
formulated a purpose that, together with our values, truly reflects 
Securitas’ important role in society: We help make your world a 
safer place. 
We are here to provide security and safety in a sustainable way, 
now and in the future. We are a compliant company with a high 
level of integrity, focused on building strong relationships with our 
clients, employees, owners, societies and other stakeholders. 
Securitas works for long-term sustainable growth and is very pro-
tective of its strong brand and reputation.
Just like other industries and many parts of society, the security 
industry is currently undergoing a transformation. The develop-
ment of technology is creating new opportunities and Securitas is 
at the forefront when it comes to incorporating technology into our 
security solutions and using data-driven innovation to develop our 
service offering. As we enter 2020, we are continuing the imple-
mentation of  significant long-term transformation programs desig-
ned to modernize, digitize and build platforms to leverage our vast 
footprint and make better use of data. This is important work when 
it comes to ensuring that we will continue to lead the industry 
through knowledge and innovation over the years to come. At their 
core, however, our operations are still based on our numerous skil-
led employees and competent leaders. This winning combination 
of people and technology will ensure that we reach our desired 
position as an intelligent protective services partner to our clients.
INTERNAL CONTROL AND RISK MANAGEMENT
To keep updated and remain close to the business, the Board per-
forms site visits in at least one country every year in addition to 
maintaining continuous interaction with the management team. 
This way, we stay informed of and engaged in Securitas’ opera-
tions outside our formal Board meetings and committee work.    
The Board has adopted a long-term perspective when it 
comes to the development of the business, which is supported 
by stable ownership, strong value-driven leadership and a high 
level of integrity. We place a great deal of emphasis on the 
importance of all employees understanding and complying with 
key policies, such as Securitas’ Values and Ethics. We have 
increased our focus on compliance training and have shown that 
we will take prompt action if we get knowledge of any alleged 
wrongdoing. The Board members’ diverse backgrounds and 
expertise also ensure that all topics are viewed from a variety of 
angles and that all decisions are well founded. 
To stay on top of any potential risks that may emerge when 
developing security services that include technology and data-dri-
ven innovation, the Board is working closely with Group Manage-
ment and relevant functions to further develop Securitas’ internal 
control and risk management. This work will continue in 2020. 
The Board of Directors would like to thank the shareholders 
for their support. We are looking forward to the years ahead, 
during which Securitas will continuously do its utmost to live up 
to its purpose and play an important role in society.   
Stockholm, March 18, 2020
Marie Ehrling 
Chairman of the Board 
Securitas AB
COMMENTS BY THE CHAIRMAN
Securitas plays an 
important role in 
ensuring the security 
and safety of the 
society at large.
33
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT

Securitas has a decentralized organizational model that pro-
motes entrepreneurship and focuses on the approximately 
1 700 branch managers who run the company’s daily opera-
tions in 56 countries. The company’s offerings improve when 
decisions are made in close proximity to clients and the employ-
ees who perform the services. Local decisions are therefore 
encouraged but require a solid governance and management 
system. To facilitate this work, Securitas has systems, routines 
and procedures in place for monitoring targets, internal control 
and risk management.
As a global company, Securitas operates in many different 
markets where laws, regulations, environmental requirements 
and social conditions may differ. Therefore, it is vital that we 
always act transparently and ethically. Sustainability is well inte-
grated into Securitas’ everyday work. Securitas’ sustainability 
work is based on our fundamental values – Integrity, Vigilance 
and Helpfulness – and guided by our key corporate policies and 
principles, such as Securitas’ Values and Ethics Code.
SECURITAS VALUES ARE STRONGLY LINKED to its mana-
gement model – The Securitas Toolbox. A key function of the 
Toolbox is to convey our corporate culture and create a shared 
platform through our values. Securitas’ Toolbox management 
model has a methodical structure that includes several well-
defined areas or “tools” that serve as a framework at all levels, 
and is maintained through continuous training and discussion 
forums. The different areas of the model describe how Securi-
tas’ managers are to conduct themselves in various aspects and 
stages of the company’s operations. The model also describes 
the approach we are expected to take with regard to the market, 
our clients and employees. All Securitas employees are expec-
ted to assume responsibility for the clients and operations and 
for our shared values. Responsibility is clarified through the 
measurement and systematic evaluation of results.
	
As part of our decentralized management approach, we are 
required to set and follow up on strict financial targets by conti-
nuously measuring and monitoring the Group’s performance. 
Financial control is not simply about implementing controls, it 
also functions as an incentive for those employees who are in a 
position to personally influence Securitas’ financial results.
THE FINANCIAL FRAMEWORK AND MODEL continuously 
measure the Group’s performance, from the branch offices 
through to Group level. The aim of the Group’s financial 
reporting is to produce the most timely and accurate informa-
tion possible to enable managers and employees to make the 
decisions necessary for achieving profitable growth in line with 
Securitas’ strategies, and to control risks to ensure that the 
company’s objectives are achieved. Financial reporting also 
forms the basis for sound internal control. The financial model 
makes it possible to monitor a number of key figures that can be 
understood by all managers. Each branch has its own statement 
of income, for which it is fully responsible. It also helps mana-
gers to understand the connection between risks and opportu-
nities, and how various factors impact their areas of responsibi-
lity as well as how we can monitor and control these factors. It 
visualizes the direct link between income and expenses in the 
statement of income, capital employed in the balance sheet and 
the generation of free cash flow. Refer to pages 54-55 for more 
information.
Solid system for 
governance  
and management
Securitas’ structure for governance serves to protect the long-term interests of our  
stakeholders, ensure value creation and encourage an entrepreneurial corporate culture.  
A sound corporate governance model also creates the foundation for responsible 
and sustainable business.
34
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

PRESIDENT AND CEO AND  
GROUP MANAGEMENT
G
MANAGEMENT  
ASSURANCE
H
FUNCTIONAL  
COMMITTEES
I
DIVISIONAL MANAGEMENT  
AND LOCAL MANAGEMENT
J
SHAREHOLDERS
A
ANNUAL  
GENERAL MEETING
B
AUDITORS
K
NOMINATION  
COMMITTEE
C
BOARD OF DIRECTORS
D
AUDIT COMMITTEE
E
REMUNERATION 
COMMITTEE
F
SHAREHOLDERS
Securitas is listed on Nasdaq Stockholm in the Large Cap 
segment since 1991. The shareholders influence the overall 
direction of the company at the top of the governance structure. 
Strong principal shareholders provide considerable attention 
and interest in our business and establish commitment to the 
success of the business. 
On December 31, 2019, the principal shareholders in 
Securitas were Carl and Eric Douglas who, through family and 
Investment AB Latour, held 10.9 percent (10.9) of the capital 
and 29.6 percent (29.6) of the votes, and Märta and Sofia 
Schörling who, through family and Melker Schörling AB, held 
4.1 percent (4.5) of the capital and 10.7 percent (11.0) of the 
votes. For more detailed information about shareholders, see 
the table on page 163. 
 
NUMBER OF SHAREHOLDERS 2015–2019
Year
No. of shareholders
2015 
25 734
2016 
31 221
2017
33 913
2018
32 197
2019
41 892
ANNUAL GENERAL MEETING
All shareholders are able to exercise their influence at 
the Annual General Meeting, which is the company’s highest 
decision-making body. The Annual General Meeting decides on 
changes to the Articles of Association. The Articles of Associa-
tion contain no limitation on the number of votes that each sha-
reholder may exercise at a shareholders’ meeting. Each share-
holder may thus vote for all shares held at the shareholders’ 
meeting. 
The Annual General Meeting of Securitas AB was held on 
May 6, 2019, and the minutes are available on www.securitas.
com, where all resolutions passed can be found. One of the 
resolutions passed in 2019 was the authorization for the Board 
to resolve upon acquisition of the company’s own shares. Share-
holders representing 62.8 percent (66.8) of the votes attended 
either personally or by proxy. For information about election and 
remuneration of Board members, see the Board of Directors 
section (D). 
ATTENDANCE 2015–2019
% of voting rights
15
16
17
18
19
61.9
61.9
63.5
66.8
62.8
A
B
35
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

O
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Q4
Q1
Q3
Q2
C
NOMINATION COMMITTEE
The Nomination Committee is a body established by the 
Annual General Meeting with the task of preparing motions regar-
ding the election of Board members, the Chairman of the Board 
and remuneration to Board members and Board committees.
As a basis for its motions, the Nomination Committee takes 
into account the complete outcome of the evaluation of the 
Board and its work as well as the competence needed in the 
future. The Nomination Committee applies rule 4.1 of the 
Swedish Corporate Governance Code as its diversity policy and 
the committee has endeavored to establish a Board composition 
with an equal gender distribution, characterized by diversity and 
breadth regarding the qualifications, experience and background 
of the Board members. The 2019 Annual General Meeting resol-
ved to appoint Board members in accordance with the Nomina-
tion Committee’s proposal. 
At the moment, the Board of Directors consists of three 
women and five men, meaning that the percentage of women on 
the Board is 37.5 percent, which is in line with the target level sti-
pulated by the Swedish Corporate Governance Board. It is the 
ambition of the Nomination Committee to continue working to 
create an equal gender distribution on the Board. The Committee 
has adopted working instructions that govern its work.
Before each Annual General Meeting, during which the elec-
tion of auditors takes place, the Nomination Committee also pre-
pares motions regarding the election of auditors and decisions 
about fees to auditors and other related matters, in consultation 
with the Board of Directors and the Audit Committee.
The Annual General Meeting has adopted an instruction for the 
Nomination Committee, which includes a procedure for appointing 
the Nomination Committee, valid until a General Meeting resolves 
in a change. In accordance to this instruction the Nomination Com-
mittee shall be composed of representatives of the five largest 
shareholders in terms of voting rights registered in the sharehol-
ders’ register as of August 31 in the year prior to the Annual Gene-
ral Meeting. Refer to the AGM minutes for more information on the 
procedure for replacing members of the Nomination Committee 
who leave before its work is concluded or due to changes in the 
shareholder structure. The Chairman of the Board, Marie Ehrling, 
shall convene the first meeting of the Nomination Committee and 
shall also be co-opted to the Nomination Committee. Based on 
these principles, the Nomination Committee consists of the follo-
wing members. 
NOMINATION COMMITTEE PRIOR TO 2020 AGM
Elected members
Share of votes as 
of August 31, 
2019
Carl Douglas, Investment AB Latour, Chairman
29.58%
Mikael Ekdahl, Melker Schörling AB
10.67%
Maria Nordqvist, Lannebo Fonder
2.91%
Adam Gerge, Didner & Gerge Fonder
2.22%
Jan Andersson, Swedbank Robur Fonder
1.78%
Share of votes not represented in the ­Nomination Committee
52.84%
The Nomination Committee is to hold meetings as often as 
necessary to fulfill its duties. However, the Nomination Commit-
tee is to hold at least one meeting annually. The Nomination 
Committee held two meetings during 2019.
THE WORK OF THE BOARD OF DIRECTORS
MEETING
IS/IT Transformation
Q4 MEETING1
Q4 and full-year report  
Update from Audit Committee  
Audit report 
Remuneration  
AGM preparation 
Dividend
AMEA presentation
IS/IT Transformation
MEETING2 
Annual Report
Renumeration guidelines
Proposal regarding acquisition of own shares
MEETING2 
Share bonus scheme proposal 
Long-term incentive program 
Notice convening the AGM 2019  
Q1 MEETING1 
Q1 interim report  
Update from Audit Committee
IS/IT Transformation 
Organizational changes  
STATUTORY MEETING 
Appointment of committee members 
Authorization to sign for the ­company  
Work procedures (Board, Audit and 
Remuneration Committees)
Approval of Group Policies
1	 In addition to the topics listed, other areas are discussed continuously, such as operational  
performance, updates from divisions, strategy, market and competition, acquisitions, insurance, 
credit risk, tax matters, legal matters and funding.
2	 Held per capsulam.
MEETING
Business update
Business plan 2020  
Strategy
Integrity Reporting  
and Compliance
Q3 MEETING1
Q3 interim report 
Update from Audit Committee 
Integrity Reporting  
and Compliance 
SSNA presentation 
Acquisitions
MEETING
Operational visit and presentations
Audit Tender 
Acquisitions
Q2 MEETING1
Q2 interim report 
Update from Audit Committee  
Acquisitions
MEETING
Strategy
Cyber Security
Financialization
Acquisitions
Repurchase of own shares
36
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

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D
BOARD OF DIRECTORS
According to the Articles of Association, the Board of 
Directors should have between five and ten Board members 
elected by the Annual General Meeting, with no more than two 
Deputy Directors. The Directors and Deputy Directors are elected 
by the Annual General Meeting for the period up to and including 
the first Annual General Meeting to be held in the year after the 
Director or Deputy Director was elected. Securitas’ Board of 
Directors has eight members elected by the Annual General Mee-
ting, three employee representatives and one deputy employee 
representative. 
The Annual General Meeting re-elected Marie Ehrling as 
Chairman of the Board and Carl Douglas as Vice Chairman. For 
further information about the members of the Board of Directors 
including remuneration, see pages 39-41.
 
Responsibilities of the Board of Directors
The Board of Directors is responsible for the organization and 
administration of the company and the Group in accordance with 
the Swedish Companies Act and also appoints the President and 
CEO, the Audit Committee and the Remuneration Committee. 
In addition, the Board of Directors determines the President 
and CEO’s salary and other remuneration. The Board meets a mini-
mum of six times annually. 
The Board of Directors of Securitas AB has approved a number 
of policies that apply to governance. Examples of such policies are 
found on page 49. 
The Board ensures the quality of financial reporting through 
Group policies, procedures and frameworks, clear structures with 
defined responsibilities and through documented delegation of 
authority, which is further described in the enterprise risk manage-
ment and internal control report, beginning on page 45. The Board 
has formed an Audit Committee (see section E) and a Remunera-
tion Committee (see section F).
The work of the Board of Directors
The activities of the Board of Directors and the division of 
responsibility between the Board and Group Management are 
governed by formal procedures documented in a written instruc-
tion, which is adopted by the Board each year after the Annual 
General Meeting. According to these procedures, the Board 
should determine, among other things, the Group’s overall stra-
tegy, corporate acquisitions and property investments above a 
certain level, and establish a framework for the Group’s opera-
tions through the Group’s business plan. The Board also plays an 
important role in the ongoing process of identifying and evalua-
ting significant risks faced by the Group.
The procedures include a work instruction for the President 
and CEO, as well as instructions for financial reporting. The pro-
cedures also prescribe that an annual evaluation of the work of 
the Board of Directors should be carried out. On a yearly basis, all 
Board members submit their answers to a questionnaire issued 
by the Nomination Committee about the quality of the work in 
the Board. Based on this report, an evaluation is made in the 
Board and in the Nomination Committee.
The Board held 11 meetings in 2019, of which two were held 
per capsulam. The auditors participated in the Board meeting 
that was held in conjunction with the yearly closing of the books, 
in February 2019, where they presented the audit.
THE WORK OF THE AUDIT COMMITTEE
Q3 MEETING
Q3 interim report
Updates1
Impairment test
Corporate governance report
Internal audit function assessment
External auditor early warning  
and internal control report
Audit Tender
Internal (MA) Q3 2019 audit activities
MEETING
Audit Tender
MEETING
Integrity Reporting and Compliance
Q2 MEETING
Q2 interim report
Updates1
Global IT and Intelligent  
Services presentation
External auditor half-year report
Internal (MA) Q2 2019 audit activities
MEETING
Argentina hyperinflation
Q4 MEETING 
Q4 and full-year report
Updates1
Corporate governance report
Yearly summary of employee  
benefits (pensions)
External auditor report
Internal (MA) Q4 2018 audit activities
Q1 MEETING
Q1 interim report 
Updates1	
External auditor audit plan
Internal (MA) Q1 2019 audit activities
Internal (MA) audit plan 2019
1 Topics based on a set rolling agenda format with 
updates on accounting, treasury, acquisitions, 
risk / insurance, legal, tax, internal control, sustai-
nability, enterprise risk management, follow-up  
of on site visits, audit / consultancy costs and 
auditor independence.
(MA) Management Assurance
37
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

E
AUDIT COMMITTEE
The Board of Directors has established and appointed an 
Audit Committee, which operates under the instructions for the 
Audit Committee and meets with Securitas’ auditors at least four 
times per year. The Committee supports the Board’s quality-con-
trol work in terms of financial reports, and its internal control over 
financial reporting.
Specifically, the Committee monitors the financial reporting, the 
effectiveness of internal control, internal audit activities and the risk 
management system. The Committee also stays informed about 
annual statutory audits. It assesses the external auditor’s indepen-
dence and receives information of, and approves the performance 
of, significant non-audit services.
The Committee presents its findings and proposals to the 
Board, prior to the Board’s decision. The Committee met seven 
times during 2019. The major topics discussed are listed on the 
previous page.
 F
REMUNERATION COMMITTEE
The Board has formed a Remuneration Committee to 
prepare decisions related to salaries, bonuses, share-based 
incentive schemes and other forms of compensation for Group 
Management, as well as other management levels if the Board of 
Directors so decides. The Committee presents its proposals to 
the Board, for the Board’s decision. The Committee held two 
meetings during 2019.
A share-based incentive scheme was adopted at the Annual 
General Meeting 2019, enabling the Group to gradually have 
approximately 2 600 of Securitas’ top managers as shareholders. 
The scheme strengthens employee commitment to Securitas’ 
future success and development for the benefit of all shareholders. 
In principal, the adopted incentive scheme entails that one-third of 
any annual bonus, earned under the performance-based cash 
bonus schemes, is converted into a right to receive shares, with 
delayed allotment and subject to continued employment in Securi-
tas. The scope and content of the incentive scheme is unchanged 
compared to the share–based incentive scheme that was adopted 
at the Annual General Meetings in 2010 and forward. 
For more information on the actual outcome of the share-based 
incentive scheme in 2019, see note 12.
Long-term Incentive Program (LTI 2019/2021)
The Annual General Meeting 2019 resolved to implement a new 
long-term incentive program for the CEO, other members of 
Group Management and certain other key employees within the 
Securitas Group (“LTI 2019/2021”). LTI 2019/2021 are based on 
different principles than the current and previous incentive sche-
mes for the Group and participants of LTI 2019/2021 will not be 
entitled to participate in Incentive Scheme 2019. LTI 2019/2021 
includes approximately 80 employees including the CEO, other 
members of Group management and certain other key employ-
ees within the Securitas Group. The vesting period for LTI 
2019/2021 is three years after allotment.
The purpose of LTI 2019/2021 is to create a strong long-term 
incentive for top executives of the Group, strengthen the Group’s 
ability to retain and recruit top executives, provide competitive 
remuneration, and to align the interests of the shareholders with 
the interests of the executives concerned by enabling the partici-
pants to become substantial shareholders in the company. Refer 
to the AGM minutes for more information on the LTI 2019/2021 
program. 
The guidelines for remuneration to senior management that 
were adopted at the Annual General Meeting 2019 primarily 
entailed that remuneration to senior management and their terms 
of employment should be competitive and comply with market 
conditions, to ensure that Securitas is able to attract and keep 
competent senior management employees. The total remunera-
tion to Group Management should consist of a fixed basic salary, 
variable remuneration, pensions and other benefits. 
Thus, in addition to a fixed annual salary, Group Management 
may also receive variable remuneration, which shall be based on 
the outcome in relation to financial goals within the individual 
area of responsibility (Group or division) and which shall be alig-
ned with the interest of the shareholders. 
The variable remuneration should amount to a maximum of 
60 percent of the fixed annual salary for the President and CEO, 
and a maximum of 42 to 200 percent of the fixed annual salary 
for other members of Group Management. The cost of the 
­company for 2019 in terms of its obligations to pay variable 
remuneration to the Group Management is established to not 
exceed a total of MSEK 99 at maximum outcome (not including 
potential costs for the LTI 2019/2021). The complete guidelines 
for remuneration can be found on www.securitas.com.
Additional information on remuneration to the Board of Directors 
and Group Management, including the outcome, is disclosed in 
the Notes and comments to the consolidated financial state-
ments 2019. See note 9.
G
PRESIDENT AND CEO AND  
GROUP MANAGEMENT
The President and CEO and Group Management are charged 
with overall responsibility for conducting the business of the 
Securitas Group in line with the strategy and long-term goals 
adopted by the Board of Directors of Securitas AB. The primary 
tool used by the President and CEO and Group Management to 
measure the execution of strategies and to guide the employees 
and organization toward achieving its objectives is the financial 
frame­work and the financial model. 
In 2019, Group Management comprised the President and CEO 
and 15 executives with representatives from the divisions. For 
further information on Group Management, see pages 42-43.
H
MANAGEMENT ASSURANCE
The Management Assurance staff function operates as 
the Group’s internal audit function and reports to the Senior Vice 
President Finance with an open line of communication to the 
Audit Committee. 
This function prepares an annual plan for its work, which is 
approved by the Audit Committee. The results of the function’s 
work, which includes the execution and coordination of internal audit 
related activities during the year, are presented at the Audit Commit-
tee meetings. The Management Assurance Director participated in  
six Audit Committee meetings during 2019. 
For more information on the current responsibilities of the Mana-
gement Assurance function, refer to www.securitas.com.
38
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

Position
Attendance
Board  
member
Board of 
Directors
Audit  
Committee 
Remuneration  
Committee
Board 
meetings 
(11)
Audit 
Committee 
meetings (7)
Remuneration 
Committee 
meetings (2)
Total fee1,
SEK
Independent 
to company
(8)
Independent 
to share-
holders (6)
Marie Ehrling
Chairman
– 
Chairman
11
–
2
2 300 000
Yes 
Yes
Carl Douglas
Vice Chairman
–
Member
9
–
2
895 000
Yes 
No
Ingrid Bonde
Member
Member
–
11
7
–
835 000
Yes
Yes
John Brandon
Member
–
–
11
–
–
635 000
Yes
Yes
Anders Böös
Member
Member
–
11
7
–
835 000
Yes
No
Fredrik Cappelen
Member
Chairman
–
11
7
–
960 000
Yes
Yes
Sofia Schörling Högberg
Member
Member
–
11
7
–
835 000
Yes
No
Dick Seger
Member
–
–
11
–
–
635 000
Yes
Yes
Susanne Bergman Israelsson2
Member
–
–
11
–
–
0
–
–
Åse Hjelm2
Member
–
–
11
–
–
0
–
–
Jan Prang2
Member
–
–
11
–
–
0
–
–
1	Total fee includes fees for committee work. In total, SEK 1 075 000 
was paid out for committee work, of which SEK 150 000 for Remu-
neration Committee work and SEK 925 000 for Audit Committee 
work. For more details, refer to the minutes of the Annual General 
Meeting 2019 on Securitas’ website: www.securitas.com.
2	Employee representatives, appointed members of the Board of 
Directors at the Annual General Meeting. Deputy employee repre-
sentative is Thomas Fanberg. Thomas Fanberg (b. 1961) has been 
Deputy Director of Securitas AB since 2008. Employee Representa-
tive, Chairman of Salaried Employees’ Union local branch, Securitas 
Norrland.
For comparative information about remuneration to the Board of 
Directors and senior management, please see note 9.
I
FUNCTIONAL COMMITTEES
The Group has established a number of functional com-
mittees and work groups, including the functions for Finance / Tax 
and Assurance, Corporate Finance / Treasury and Legal / Risk and 
Insurance. These committees include the CFO, Senior Vice Presi-
dent Finance, Senior Vice President General Counsel and the app-
ropriate functional area experts. The main purpose of these fun-
ctional committees is to determine appropriate policies, communi-
cate the policies and ensure local understanding (including 
training) of the policies, as well as monitoring key issues within 
each area of responsibility. Quarterly meetings are held with the 
President and CEO, at which topics that will be reported to the 
Audit Committee are discussed.
J
DIVISIONAL AND LOCAL MANAGEMENT 
Securitas’ philosophy is to work in a decentralized envi-
ronment where local management is primarily responsible for 
monitoring and ensuring compliance by local units with the Group 
Policies, including any division-specific policies and guidelines. 
Local management is responsible for the establishment and 
­continued operations of a system of procedures and controls that 
ensures the reliability of the company’s management and financial 
reporting information in the most economical and efficient manner 
possible. This includes ensuring a minimum of basic and super­
visory controls in order to mitigate relevant risks. Local 
­management reports to Group Management through divisional 
management on operational matters and local controllers report 
through divisional controllers on financial reporting matters.
K
AUDITORS
The Annual General Meeting 2019 elected Price­water­
houseCoopers AB (PwC) as the Group’s audit firm, with authori-
zed public accountant Patrik Adolfson as auditor in charge, for a 
period of one year.
The auditors’ work is based on an audit plan, which is agreed 
upon in consultation with the Audit Committee and the Board of 
Directors. The auditors participate in all meetings of the Audit 
Committee and present their findings from the annual audit at the 
Board meeting held in February. In addition, the auditors should 
inform the Audit Committee on an annual basis of any services 
rendered, other than audit assignments, and any auditing fees 
received for such services or other circumstances that might 
affect the evaluation of the auditors’ independence. The auditors 
should also participate in the Annual General Meeting to present 
the audit report and its conclusions.
The audit is performed in compliance with the Swedish Com-
panies Act, generally accepted auditing standards in Sweden and 
International Standards on Auditing (ISA).
For audit fees and reimbursement to auditors, see note 11 
and 46.
COMPOSITION OF THE BOARD AND ATTENDANCE IN 2019
Auditor Patrik Adolfson
AUDITOR IN CHARGE
Patrik Adolfson, born 1973, 
Authorized Public Accoun-
tant, Auditor in charge, Price­
waterhouseCoopers AB. 
Patrik Adolfson has been 
auditor in charge of Securitas 
AB since 2015. Other audit 
assignments: AcadeMedia AB 
(publ), Attendo AB (publ), 
Nordstjernan AB, Pandox AB 
(publ) and Bonava AB (publ). 
Member of FAR.
39
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

1. MARIE EHRLING
Chairman, b. 1955 
Director of Securitas AB since 2006 and 
Chairman since 2016
Principal education: BSc in Economics and 
Business Administration
Other assignments: Vice Chairman of Axel 
Johnson AB and Director of Axel Johnson 
International
Previously: President of Telia Sonera Sverige, 
Deputy CEO of SAS AB, responsible for SAS 
Airlines and other executive positions at SAS
Shares in Securitas: 10 000 Series B shares
2. CARL DOUGLAS
Vice Chairman, b. 1965
Deputy Director of Securitas AB since 1992, 
Director since 1999 and Vice Chairman  
since 2008 
Principal education: Bachelor of Arts, Doctor  
of Letters (h.c.)
Other assignments: Vice Chairman of ASSA  
ABLOY AB, Director of Investment AB Latour
Shares in Securitas: 12 642 600 Series  
A shares and 27 190 000 Series B shares1
3. INGRID BONDE
Member, b. 1959
Director of Securitas AB since 2017
Principal education: BSc in Business and 
Economics
Other assignments: Chairman of Hoist Finance 
AB, Alecta, Apoteket AB and Swedish Climate 
Policy Council. Director of Loomis AB and 
Swedish Corporate Governance Board
Previously: CFO and Deputy CEO Vattenfall AB, 
CEO AMF, Director General Swedish Financial 
Supervisory Authority
Shares in Securitas:  2 600 Series B shares
4. SOFIA SCHÖRLING HÖGBERG
Member, b. 1978 
Director of Securitas AB since 2005
Principal education: BSc in Economics and 
Business Administration
Other assignments: Director Hexagon AB and 
ASSA ABLOY AB
Shares in Securitas:  4 500 000 Series A  
shares and  10 419 039 Series B shares2
5. DICK SEGER 
Member, b. 1953 
Director of Securitas AB since 2017
Principal education: Master of Science
Other assignments: Director Anticimex Top 
Holding AB
Previously: CEO, Chairman of the Board  
and Director of Verisure Group (previous 
Securitas Direct)
Shares in Securitas: 26 Series B shares
6. JOHN BRANDON
Member, b. 1956 
Director of Securitas AB since 2017
Principal education: Bachelor of Arts in History
Other assignments: Director of Hexagon AB 
Previously: Vice President of Apple International, 
Vice President of Apple Americas and Asia, and 
President and CEO of Academic Systems
Shares in Securitas: 10 000 Series B shares
7. ANDERS BÖÖS
Member, b. 1964 
Director of Securitas AB since 2016
Principal education: Economic studies Upper 
Secondary School
Other assignments: Chairman of Einride AB and 
Hantverksdata AB, Director of Investment AB 
Latour, Stronghold Invest AB and Newsec 
Property Asset Manangement AB
Previously: CEO of Drott AB and H&Q AB, 
Chairman of IFS AB and Cision AB, Director  
of Haldex AB and Niscayah AB
Shares in Securitas: 25 000 Series B shares
8. FREDRIK CAPPELEN
Member, b. 1957 
Director of Securitas AB since 2008
Principal education: BSc in Business 
Administration
Other assignments: Chairman of Dometic Group 
AB, Chairman of KonfiDents GmbH and 
Transcom AB. Member of the ICC Executive 
Board
Previously: President and Group Chief Executive 
of Nobia, Chairman of Dustin Group AB,  
Byggmax Group AB, Terveystalo Oy and Sanitec 
Oy, Vice Chairman of Munksjö AB
Shares in Securitas:  4 000 Series B shares
EMPLOYEE REPRESENTATIVES
9. SUSANNE BERGMAN ISRAELSSON
Member, b. 1958 
Director of Securitas AB since 2004
Employee Representative, Negotiating Shop 
Steward, Swedish Transport Workers’ Union local 
branch 19, Norra Mälardalen
Shares in Securitas: 0
10. ÅSE HJELM
Member, b. 1962 
Director of Securitas AB since 2008
Deputy Director of Securitas AB since 2007
Employee Representative, Vice Chairman  
of Salaried Employees’ Union local branch,  
Norrland, Chairman of the Securitas Council  
for Salaried Employees
Shares in Securitas: 120 Series B shares
11. JAN PRANG
Member, b. 1959 
Director of Securitas AB since 2008
Employee Representative, Chairman of  
Swedish Transport Workers’ Union local branch, 
Securitas Göteborg
Shares in Securitas: 0
1 Through family and Investment AB Latour.
2 Through family and Melker Schörling AB.
All figures refer to holdings on December 31, 2019.
BOARD OF DIRECTORS
1
4
3
2
10
11
5
6
7
8
9
40
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

41
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

*Magnus Ahlqvist holds a Master of Science in Economics and Business Administration from the Stockholm School of  
Economics, and a leadership exam from Harvard Business School. Previously he has held various management positions in 
Motorola Mobility, Sony and Sony Ericsson Mobile Communications. He is a Director of International Security Ligue.
Luis Posadas retired from his role as Divisional President, Securitas Services Ibero-America on July 1, 2019. 
The following changes took effect from January 1, 2020:
•	 Santiago Galaz was appointed Executive Chairman of Securitas North America and stepped down from Securitas Group 
Management. 
•	 Bill Barthelemy retired from his role as Chief Operating Officer, North America and stepped down from Securitas Group 
Management. Bill will assist as an advisor and continue working with select clients through 2021.
•	 Greg Anderson was appointed President, North American Guarding, and a member of Securitas Group Management.
•	 José Castejon was appointed Chief Operating Officer, North American Guarding and a member of Securitas Group  
Management. José will also lead the Global Guarding Center of Excellence unit.
For more information about Group Management, visit www.securitas.com / group-management
1. MAGNUS AHLQVIST 
President and CEO of Securitas AB*
Born: 1974
Employed: 2015 
Shares in Securitas: 111 430 Series B shares1,  
200 000 share options2
2. BART ADAM
Chief Financial Officer 
Born: 1965
Employed: 1999
Shares in Securitas: 43 555 Series B shares1
3. MARTIN ALTHÉN
Chief Information Officer
Born: 1968
Employed: 2016
Shares in Securitas: 3 478 Series B shares1
4. HELENA ANDREAS
Senior Vice President, Group Brand  
and Communications
Born: 1975
Employed: 2019
Shares in Securitas: 2 045 Series B shares1
5. WILLIAM BARTHELEMY
Chief Operating Officer, Security Services  
North America 
Born: 1954
Employed: 1999
Shares in Securitas: 70 859 Series B shares1
6. TONY BYERLY
President, Securitas Electronic Security
Born: 1966
Employed: 2016
Shares in Securitas: 0 Series B shares1
7. JORGE COUTO
Divisional President, Security Services  
Ibero-America
Born: 1970
Employed: 1998
Shares in Securitas: 0 Series B shares1
8. SANTIAGO GALAZ
Divisional President, Security Services  
North America 
Born: 1959
Employed: 1995
Shares in Securitas: 91 670 Series B shares1
9. PETER KARLSTRÖMER
Divisional President, Security Services Europe 
Born: 1971
Employed: 2019
Shares in Securitas: 6 196 Series B shares1
10. ANDREAS LINDBACK
Divisional President, AMEA 
(Africa, Middle East and Asia)
Born: 1982
Employed: 2011
Shares in Securitas: 0 Series B shares1
11. JAN LINDSTRÖM
Senior Vice President, Finance 
Born: 1966
Employed: 1999
Shares in Securitas: 13 230 Series B shares1
12. AIMÉ LYAGRE
Chief Operating Officer and Chief Technology 
Officer, Security Services Europe 
Born: 1959
Employed: 2004
Shares in Securitas: 19 952 Series B shares1 
13. MARC PISSENS 
President Aviation  
Born: 1950
Employed: 1999
Shares in Securitas: 37 700 Series B shares1
14. BRIAN RIIS NIELSEN
SVP for Global Clients and leader of Global Clients 
& Vertical Markets
Born: 1966
Employed: 2002
Shares in Securitas: 0 Series B shares1
15. FRIDA ROSENHOLM
Senior Vice President, General Counsel
Born: 1974
Employed: 2018
Shares in Securitas: 464 Series B shares1
16. HENRIK ZETTERBERG
Chief Operating Officer, Security Services Europe
Born: 1976
Employed: 2014
Shares in Securitas: 4 091 Series B shares1,  
45 000 share options2
1 The actual allocation of shares to Group Management 
under the Securitas share-based incentive scheme 2018, 
and the total potential allocation of shares to Group  
Management under the Securitas share-based incentive 
scheme 2019 can be found in note 9.
2 Share options regarding acquisition of Securitas Series B 
shares, issued by Melker Schörling AB and Investment AB 
Latour.
GROUP MANAGEMENT
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13
11
2
6
12
16
4
5
9
14
15
3
10
8
7
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GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control
44
Securitas Annual and Sustainability Report 2019

Internal control over financial reporting is included as a part of 
the overall internal control of Securitas and constitutes a central 
part of the Group’s corporate governance. The description 
below covers a broader perspective on how Securitas’ internal 
control is organized, using a structure based on the COSO 
model, but also makes specific reference to items pertaining 
directly to internal control over financial reporting. On pages 
48-51 we describe Securitas’ enterprise risk management pro-
cess (ERM), which sets the overall process for Securitas’ proac-
tive and continuous work with risk management and internal 
control. Securitas’ insurance and claims strategy is to “act as if 
uninsured”. Refer to page 49 for more information about insu-
rance as a risk management tool.
CONTROL ENVIRONMENT
The key features of the control environment include: clear terms 
of reference for the Board and each of its committees, a clear 
organizational structure with documented delegation of autho-
rity documented in an approval matrix, from the Board to  
President and CEO and further to Group Management. It also 
includes the competence of employees and a series of Group 
policies, procedures and frameworks. 
Emphasis lies on the competence and abilities of the Group’s 
employees, with continuous training and development actively 
encouraged through a wide variety of training programs. 
The Group has three fundamental values – Integrity, Vigi-
lance and Helpfulness – to help its employees exercise good 
judgment and make decisions on a consistent basis.
Policies that apply to internal control over financial reporting 
are described in Securitas’ Group Policies, which include the 
company’s model for financial control (for more detailed informa-
tion on the model, refer to pages 54-55), and in the Securitas 
Reporting Manual, which specifically focuses on reporting mat-
ters to ensure compliance with reporting requirements and rules. 
This creates an environment that supports reliable and accurate 
reporting.
RISK ASSESSMENT
At the highest level, the Board considers where future strategic 
opportunities and risks lie and helps shape the corporate  
strategy. Balanced and focused risk management is necessary 
for the fulfillment of Securitas’ strategies and the achievement 
of its corporate objectives.
Enterprise risk management (ERM) is an integral component 
of Securitas’ operations, and risk awareness is part of the  
company culture. Risk assessments are conducted within the 
framework of the Securitas ERM process, further described on 
page 48–51, regardless whether the assessments pertain to 
operational risks or financial reporting risks. Securitas does not 
classify compliance risk as a separate category. Instead, it is 
included in the operational category. Risk assessment is a dyna-
mic process that aims to identify and analyze risks in relation to 
Securitas’ objectives. It serves as the basis for implementing 
mitigating actions after considering the controls in place 
(reduce, transfer / share or accept the risk in question). 
GROUP-WIDE CONTROL ACTIVITIES
Internal control covers all divisions and subsidiaries in the 
Group. Internal control activities are established by policies and 
processes, which help ensure that all management directives to 
manage risks are executed. Controls are performed on several 
levels within the organization and are established based on the 
process concerned.
Securitas’ internal control system is designed to manage, rather than eliminate, the risk of failing 
to achieve business objectives. The system provides reasonable, but not absolute, assurance 
against material misstatement or loss, as well as compliance with the main policies. 
Proactive Risk Management 
and Internal Control
45
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

ERM SELF-ASSESSMENT 
Every major country throughout the Group performs an 
annual self-assessment, which is a part of the process to 
manage enterprise-wide risks. It covers key risks, including 
financial reporting risks, measures taken and compliance with 
Securitas Group Policies and Securitas Reporting Manual. The 
content is updated on a continuous basis to reflect the risks that 
Securitas is facing, which includes ensuring that risks related to 
the strategy and development of the technology offering are 
incorporated as appropriate.  
The self-assessments promote control awareness and accounta-
bility and results are signed off by each country president. The 
answers are compiled at the divisional and Group levels to sup-
port benchmarking within and between divisions. The answers 
are also used as input for further audit or review procedures, or 
other risk management activities. Group and division create 
action plans and activities to follow up and support the countries. 
Each reporting country is responsible for acting on any devia-
tions.
 
This illustration shows 
an overview of the key  
Group-wide control activities.
1 DESCRIBED IN FURTHER DETAIL BELOW.
GROUP-WIDE  
CONTROL 
ACTIVITIES
5
LETTER OF 
REPRESEN­TATION1 
GROUP  
APPROVAL 
MATRIX
1
ERM SELF- 
ASSESSMENT1
 
CONTINUOUS  
POLICY DEVELOP-
MENT AND IMPLE­
MENTATION
 
2
BASIC  
CONTROLS1
 
BUSINESS 
CONTROLS
 
3
AUDIT, RISK AND 
CONTROL 
DIAGNOSTICS1
 
GROUP-LEVEL 
REPORTING 
INSTRUCTIONS AND 
FRAMEWORK
4
FINANCIAL 
CONTROL1 
1
46
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

BASIC CONTROLS 
Detailed controls in financial reporting processes such as 
revenue, payroll and IT, are included as one component of Securi-
tas’ overall Group-wide control framework called “basic controls”. 
Basic controls set the minimum Group requirement regarding 
what needs to be in place based on risk assessment. Supplemen-
tary controls ensure full protection of the company’s assets and 
assure accurate and reliable financial reporting tailored to the 
entity’s company’s specific conditions. These controls can include 
manual, application or general IT controls.
Key areas covered:
•	protection of company assets 
•	completeness and timeliness of client invoicing 
•	credit collection procedures
•	contract management
•	HR / payroll
•	IT (including information security)
•	business continuity planning
•	validity of payments to third parties 
•	accuracy of general ledger
•	timeliness and accuracy of Group reporting 
•	compliance with local requirements
AUDIT, RISK AND CONTROL DIAGNOSTICS
One important audit activity is the country diagnostics. 
The diagnostics comprise a work program covering IFRS compli-
ance, as well as key controls within financial reporting processes, 
contract management and IT security. These reviews are usually 
conducted within the first year after an acquisition has been 
made and a follow-up is performed during the second year, provi-
ded that significant areas for improvement have been identified. 
The Group also performs risk and control diagnostics in functio-
nal areas which, by nature, have a high degree of inherent risk. 
These diagnostics aim to ensure compliance with key policies 
such as the Client contract policy and the Securitas’ Values and 
Ethics Code. Securitas develops this audit and review process on 
a continuous basis using both internal and external resources.
FINANCIAL CONTROL 
Control activities specifically aimed at managing risks 
related to financial reporting include methods and activities for 
securing assets, controlling the accuracy and reliability of internal 
and external financial reports, and ensuring compliance with defi-
ned guidelines. 
Regular analyses of the financial results at the various levels of 
the organization using the financial model ensure that financial 
information maintains a high level of quality. Securitas’ financial 
reporting is based on the following foundations:
•	Securitas Group Policies for financial planning and reporting, 
long-term financing and treasury, risks and insurance, communi-
cations, branding, legal issues and IT
•	Guidelines in Securitas’ financial model, which create the frame-
work for a simple and clear internal reporting method, including 
timely and accurate follow-up of financial key figures (Securitas 
Six Fingers)
•	Securitas’ Reporting Manual, which provides all managers and 
financial staff with detailed instructions and definitions for finan-
cial reporting 
•	The controller, who is responsible for continuously ensuring that 
the financial information provided is accurate, transparent, rele-
vant and up to date. The controller receives continuous feed-
back from the Group regarding reporting quality, which is an 
effective tool for enhanced reporting. In addition, each division 
has a divisional controller with corresponding responsibilities at 
the divisional level.
LETTER OF REPRESENTATION
The Group has a representation process in which opera-
ting unit presidents and controllers sign a letter of representation 
in connection with the year-end report, stating their opinion on 
whether the internal control over financial reporting and the repor­
ting packages give a true and fair view of the financial position. 
The letter also covers the broader perspective of internal con-
trol, including compliance with Securitas Group Policies related to 
financial reporting.
INFORMATION AND COMMUNICATION
Securitas’ channels for information and communication are con-
stantly developed to ensure that all employees are given clear 
objectives and are made aware of the parameters that constitute 
acceptable business practices, as well as the expectations of the 
Board in managing risks. This provides a clear definition of the 
Group’s purpose and goals, accountabilities and the scope of per-
mitted activities of employees. 
Systems and procedures have been implemented that support 
complete, accurate and timely financial reporting and provide 
management with the necessary reports on business performance 
relative to the established objectives. The Group reporting depart-
ment regularly issues guidance on reporting matters and the 
reporting manual is available in a Group-wide database. Reporting 
units regularly prepare financial and management reports that are 
discussed at review meetings at different levels. These include an 
analysis of financial performance and risks for the organization to 
understand its responsibility with regard to internal control and its 
impact in relation to risks, goals and objectives. 
MONITORING
Monitoring is performed at different levels and by different fun-
ctions within the organization depending on whether it is related 
to operational or financial reporting matters. Key functions include 
the Board of Directors, the Audit Committee, Group Manage-
ment, functional committees, Management Assurance, the Group 
risk organization, and local and divisional management. 
2
3
4
5
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Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control

R
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Securitas is exposed to various types of risks in its daily business. 
When providing security services, Securitas manages not only its 
own risks, but also risks on behalf of its clients. It is important to 
us to minimize the risk of loss occurring as it also protects our 
stakeholders. Securitas’ risks have been classified into three main 
categories: contract and acquisitions risks, operational 
assignment risks and financial risks. The categories are based 
on the natural flow of our business – entering into a contract, exe-
cution of the assignment and the financial result. Similar risk cate-
gories are also relevant for acquisitions, but are then classified as 
acquisition risks, operational integration risks and financial inte-
gration risks. 
CONTRACT AND ACQUISITIONS RISKS 
The contract risks (and acquisitions risks) category inclu-
des risks related to entering into a client contract and risks related 
to the acquisition of a new business.
OPERATIONAL ASSIGNMENT RISKS
The operational assignment risks (and operational inte-
gration risks) category includes risks that are associated with our 
daily operations and the services we provide to our clients. This 
category also covers all risks related to the infrastructure neces-
sary for running the business as well as sustainability risks. 
Examples are assignment execution risks, Securitas’ Values and 
Ethics compliance risk and health and safety risks and operational 
risks, such as IT failure, business continuity, information security 
and data protection, as well as employee attraction and retention.
FINANCIAL RISKS
The financial risks (and financial integration risks) cate-
gory includes risks related to financial reporting, as well as finan-
cial risks related to external financing needs and currency expo-
sure. To allow the divisions, countries and regions to focus fully 
on their operations, the management of certain risks such as 
financing and currency is centralized to the Group Treasury 
Centre. Other examples within this category are fraud and error 
risk, management estimates assumptions risk, credit and cash 
flow risk and regulatory reporting risk. 
All the risks in these categories can impact the Group’s finan-
cial performance and position if they are not managed in a struc-
tured way. Therefore, Securitas has developed its four-step pro-
cess approach for managing enterprise risks. 
To support the ERM work, Securitas has implemented a web-
based governance, risk and compliance (GRC) system that cover 
all four steps in Securitas’ enterprise risk management process and 
gathers the ERM information in one database. It is used to stream-
line the ERM work by structuring and automating processes and 
workflows, such as reports. The aim is to improve the overall qua-
lity of the ERM work and have one single point of information.
Four-step  
process for  
managing  
enterprise risk
Securitas’ process for enterprise risk management 
(ERM) is well integrated into the business and 
seeks to identify, prioritize and manage the key 
risks to our operations at all levels and in all parts  
of the organization.
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GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

INPUT AND RISK IDENTIFICATION
The process starts with risk identification and prioritiza-
tion during the ERM planning process. As part of the overall 
annual business plan process, each level of the organization pre-
pares an ERM business plan, which sets the focus and priorities 
for operational risk management within countries, divisions and 
the Group for the coming year. The yearly risk assessment pro-
cess is coordinated by the Group risk organization. The Group 
function is also responsible for maintenance of the risk register, 
which is updated annually primarily based on the country ERM 
business plans, but also on other sources of input.
POLICY DEVELOPMENT
The next step in the process is to assess whether new 
policies need to be created or existing policies need to be upda-
ted. Securitas Group policies, which is one of the cornerstones of 
Securitas’ ERM process, establish the framework for all policies 
and compliance monitoring in the Group. The Group policies are 
developed by management and key policies are approved by the 
Board of Directors. A general policy update is released after the 
statutory Board meeting in May every year, but specific policies 
are also issued or updated when necessary throughout the year. 
Some of the key policies adopted that are relevant for gover-
nance perspectives are Client Contract policy, Securitas’ Values 
and Ethics Code, Communication policy, Competition law compli-
ance policy, Privacy policy and Insider policy.  
RISK MANAGEMENT ACTIVITIES
The third step of the process is the risk management 
activities. The Board of Directors has the ultimate responsibility 
for governance of risk management while the accountability for 
managing risks and for implementing and maintaining control 
systems in accordance with Group policies is clearly assigned to 
management at Group, divisional and local level. Specifically, divi-
sional management are responsible for all aspects of the opera-
tions in their divisions, including operational risk management 
and risk minimization as well as creating risk awareness through­
out the division. Operating unit managers and country risk mana-
gers are responsible for ensuring that risk management is part of 
the local corporate culture at all levels within a country.  
 
RISK-BASED MONITORING
The identified risks and adopted policies set the structure 
for the fourth step of the process - Risk-based monitoring. Key 
risks are monitored through self-assessments, audits, risk and 
control diagnostics (described on page 46-47), legal reviews, 
sustainability reviews and/or are subject to other monitoring acti-
vities throughout the year. Monitoring permeates all levels 
throughout the organization and is performed by different fun-
ctions depending on whether it is related to operational or finan-
cial reporting matters. 
More information on each step of the process is to be found on 
www.securitas.com
STRATEGY
Securitas’ insurance and claims strategy is to “act as if 
uninsured.” This means that while external insurance 
is used to protect the balance sheet and minimize 
fluctuations in earnings, our day-to-day task is to per-
form our assignment as if we do not have any insu-
rance in place. 
One important part of our risk management work 
involves taking a proactive approach to contracts and 
assignment instructions to prevent claims from occur-
ring. From a risk management perspective, it is import-
ant that the contract clearly defines the assignment to 
be performed by Securitas and that our employees’ 
assignment instructions mirror the contract. 
IMPORTANCE OF ACTIVE CLAIMS 
MANAGEMENT
Another significant part of Securitas’ risk management 
work involves active claims management, as well as 
ongoing claims analysis of frequent and large losses 
with the aim of identifying the underlying driving 
forces. The claims are analyzed to find out if there are 
certain types of services, contracts, regions and so 
forth that cause insurance claims. As the Group’s 
external insurance premiums are partly determined by 
the historic loss record, a favorable loss record will 
contribute to lower premiums and a lower cost of risk.
PROCUREMENT STRATEGY
Insurance programs are procured with the objective of 
creating a balanced and cost-efficient protection 
against negative financial impact. Securitas seeks to 
achieve economies of scale through coordinated insu-
rance programs and the optimal utilization of the 
Group’s insurance captives. The strategy is to cover 
the more frequent claims arising in Securitas’ own 
books. Using insurance captives gives the Group an 
opportunity to handle part of the claims process inter-
nally and provides Group Management with an option 
to establish some independence from the cyclical 
nature of commercial insurance markets.
BENEFITS FOR OUR CLIENTS
An important advantage of our Global insurance pro-
grams is that our clients can be confident that Securi-
tas’ high-quality insurance cover is consistent in all 
markets.
INSURANCE AS A  
RISK MANAGEMENT TOOL
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Board of Directors’ report on corporate governance and internal control

Securitas’ risk register contains about 50 risks. Out of the 50 
risks, 14 are selected as top risks that will be subjected to moni-
toring activities during the year. Out of these, eight risks are cur-
rently considered key Group risks and have been assigned pri-
mary focus during the year. For information on our key risks and 
how they are managed, refer to the table below.
INPUT AND 
RISK IDENTIFICATION
POLICY  
DEVELOPMENT
Contract  
risk
Risk that unreasonable obligations and risks are undertaken 
in the contract, resulting in unbalanced terms for the type of 
assignment in question, such as excessive liability, unrealistic 
service levels or unfavorable pricing mechanisms.
The Group has formal policies and guidelines for defining the 
approval process and authorization levels for new contracts 
as well as how to manage existing contracts. All relevant 
employees receive training in these policies. In addition, 
operations are protected by a customized Securitas insurance 
program, should unforeseen events occur. Read more about 
Securitas’ insurance and claims strategy on the previous page.
Securitas’ 
Values 
and Ethics 
compliance  
risk
Risk of non-compliance with Securitas’ Values and Ethics  
Code (the Code) can ultimately result in reputational damage, 
lost revenues, penalties, fines, difficulties in recruiting, etc. 
The Code is one of the key corporate policies that ensures the 
company upholds and promotes the highest ethical business 
standards. Securitas’ basic requirement is to act within the 
framework of laws and international conventions, such as the 
United Nations Universal Declaration of Human Rights. As 
a complement to the Code, the Group has adopted several 
policies, such as an anti-corruption policy, emission policy, 
supplier and subcontracting policy, and competition law policy.
Information 
security risk
Risk of failing to protect the confidentiality, integrity and/or 
availability of data and data processing, which may result in 
operational losses, reputational damage, third-party liabilities 
and/or regulatory fines.
The Group’s information security policy sets forth Group 
Management’s ambition, expectations and directions for 
information security across the Securitas Group as a further 
level of detail to supplement the information security strategy 
established by the Board of Directors.
Assignment 
execution risk
Risk that agreed contractual requirements are not met, which 
in turn could adversely impact the contract portfolio churn 
rate, growth, customer relations and reputation.
The Group policy requires local human resources policies 
covering the areas of hiring employees, retaining employees, 
development and training, and compliance with relevant laws 
and regulations. Proper recruitment procedures and the training 
and supervision of security officers are important for mitigating 
the risk.
Compliance  
(regulatory  
and other) risk
Risk that regulatory and other requirements are not met or that 
Securitas does not meet the compliance expectations in the 
market or among our customers or investors. This could result 
in lower quality, higher costs, lost income, delay, penalties, 
fines or reputational damage.
Risks related to compliance with laws and regulations are 
managed at all levels in the organization, by all employees. The 
guiding policy is Securitas’ Values and Ethics Code, but risks are 
further governed in separate policies relating to specific topics/
areas.
Business 
continuity  
risk
Risk that key business processes cannot operate following 
an incident which could cause significant disruption to the 
operations.
The Group’s business continuity policy requires all entities to 
have a written contingency plan based on the classification of 
key processes. The plan should also cover key IT systems and be 
linked to controls of IT disruptions, including disaster recovery 
plans. The plan should cover all relevant areas, including regular 
updates and testing.
Price/
production  
cost risk
Risk of not being able to manage prices/wages or other 
production costs in a desired manner, for example wage 
increases not reflected properly in customer contracts which 
could lead to deteriorated margins.
Part of the Group financial reporting procedures, reporting 
of price/wage KPIs at Group level is mandatory as part of the 
monthly and quarterly reporting package.
Insider  
threat risk
Risk that a person in his/her position as employed by, or 
subcontractors to, Securitas potentially could pose a threat to 
Securitas, our clients and/or the public, for example by being 
involved in organized crime, terrorism, extremist- or similar 
activities. 
The Group’s Insider threat policy is to be implemented by all 
countries due to the increased risk of terrorism and exposure of 
insider threat. The aim is to ensure to the largest extent possible 
that we can avoid and/or detect employees/subcontractors that 
potentially could pose a threat to Securitas, to our clients and/
or the public.
SECURITAS KEY RISKS
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Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

RISK MANAGEMENT  
ACTIVITIES
RISK-BASED  
MONITORING
Contract  
risk
To manage contract risks in a structured way in the operations, 
we use a business risk evaluation model known as the Scale, 
which is part of Securitas’ management model, “The Toolbox”. 
The model evaluates the assignment, risk, contract terms 
and financial aspects. All employees involved in the contract 
management process receive training in the model.
Since contract risk is a key risk, Securitas monitors this through 
reviews (called diagnostics) to test the effectiveness of controls 
in the contract management process. Contract risk is also 
monitored through the ERM self-assessments and business plan 
process.
Securitas’ 
Values 
and Ethics 
compliance  
risk
All our employees are trained in the Code. In addition, we also 
have training requirements for the policies related to the Code, 
such as the anti-corruption policy, competition law policy, and 
supplier and subcontractor policy.
The risk is monitored through sustainability reviews, audits, the 
ERM self-assessments and business plan process. The Group 
has an Ethics and Sustainability Board, which establishes the 
principles for Securitas’ sustainability work and closely follows 
up cases of alleged non-compliance with the Code, reported 
through Securitas Integrity Line or other reporting channels.
Information 
security risk
Information security risk management will remain a focus area 
over the next few years as the cyber security threat landscape 
evolves. In 2019, Securitas took further steps to enhance 
cyber security capabilities and implemented additional 
preventative controls as well as further developing the 
governance model.
The implementation of the information security policy and 
strengthening of relevant capabilities in this domain are 
monitored using different sources of assurance, such as 
reviews, audits, ERM self-assessments as well as local country 
monitoring activities.
Assignment 
execution risk
Local procedures for security services include a process for 
written site instructions ensuring they are defined, up to date, 
known and understood.
The risk is monitored through the ERM self-assessments and 
business plan process as well as through local branch audits.
Compliance  
(regulatory  
and other) risk
It is mandatory that local processes include procedures to 
ensure compliance with relevant laws and regulations, that 
there is an assigned responsibility for recurring reviews 
and that action plans are in place for addressing any issues 
identified. Compliance with GDPR continued to be a key focus 
during 2019. 
The review procedures in the Group are designed to identify any 
changes in regulatory requirements that may affect Securitas’ 
activities and to take the appropriate actions.
Business 
continuity  
risk
During the last couple of years, Securitas has carried out a 
Group project focusing on business continuity planning with 
workshops in selected countries throughout the Group to 
share methodologies for creating, testing and maintaining 
business continuity plans for critical business processes and 
IT systems.
The risk is monitored through audits, as well as the ERM self-
assessments and ERM-business plan process.
Price/
production  
cost risk
The processes include measurement, communication, 
training and support for employees involved in the pricing 
of our services, at the inception of a contract and for price 
adjustments.
Price/wage increases are monitored and followed up on a 
monthly basis and are part of the monthly reporting package at 
Group level.
Insider  
threat risk
All countries are required to implement specific processes 
and controls to mitigate the risk. Such measures includes: risk 
assessment & workshops, screening processes, awareness, 
operational measures, reporting channels and investigation 
procedures.
The risk and policy implementation are monitored through 
Insider threat reviews. The risk is also monitored through the 
ERM self-assessment and the ERM-business plan process. 
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Board of Directors’ report on corporate governance and internal control

AUDITOR’S REPORT ON THE CORPORATE  
GOVERNANCE STATEMENT 
(translation of the Swedish original)
To the general meeting of the shareholders in  
Securitas AB, corporate identity number 556302-7241
Engagement and responsibility
It is the Board of Directors who is responsible for the corporate governance 
statement for the year 2019 (on pages 32-52) and that it has been pre-
pared in accordance with the Annual Accounts Act. 
The scope of the audit
Our examination has been conducted in accordance with FAR’s auditing 
standard RevU 16 The auditor’s examination of the corporate governance 
statement. This means that our examination of the corporate governance 
statement is different and substantially less in scope than an audit con-
ducted in accordance with International Standards on Auditing and gener-
ally accepted auditing standards in ­Sweden. We believe that the examina-
tion has provided us with sufficient basis for our opinions.
Opinions
A corporate governance statement has been prepared. Disclosures in accor-
dance with chapter 6 section 6 the second paragraph points 2–6 the Annual 
Accounts Act and chapter 7 section 31 the second paragraph the same law 
are consistent with the annual accounts and the consolidated accounts and 
are in accordance with the Annual Accounts Act.
Stockholm, March 18, 2020
PricewaterhouseCoopers AB
	
Patrik Adolfson	
Madeleine Endre 
	
Authorized Public Accountant	
Authorized Public Accountant
	
Auditor in charge
Stockholm, March 18, 2020 
Marie Ehrling
Chairman
	
Carl Douglas	
Ingrid Bonde
	
Vice Chairman	
Director
	
John Brandon	
Anders Böös	
Fredrik Cappelen
	
Director	
Director	
Director
	
Sofia Schörling Högberg	
Dick Seger
	
Director	
Director
	
Susanne Bergman Israelsson	
Åse Hjelm	
Jan Prang
	
Director	
Director	
Director
	
Employee Representative	
Employee Representative	
Employee Representative
Magnus Ahlqvist
President and Chief Executive Officer
52
Securitas Annual and Sustainability Report 2019
GOVERNANCE AND MANAGEMENT   
Board of Directors’ report on corporate governance and internal control

GOVERNANCE AND MANAGEMENT  
Board of Directors’ report on corporate governance and internal control
53
Securitas Annual and Sustainability Report 2019

MANAGEMENT AND FINANCIAL CONTROL
How to read and  
understand our finances
SECURITAS’ FINANCIAL MODEL – SIX FINGERS
VOLUME-RELATED FACTORS
The first two key figures, New sales (of contracts) and Net 
change (of contract portfolio), relate to the development of the 
client contract portfolio. New sales are newly signed contracts 
that will increase the monthly fixed sales. Net change in the 
client contract port­folio refers to new starts (a newly signed 
contract that has started) plus increased sales in existing 
contracts, less terminated client contracts and reduced sales 
in existing contracts. Price changes are measured separately 
and added to Net change to determine the period’s closing 
balance of the contract portfolio. The closing balance is the 
total value of monthly invoicing on our monthly fixed contracts 
at the closing date for the current period. The third key figure, 
taken from the statement of income, is Total sales, which in 
addition to contract-based sales, includes short-term guarding 
assignments but also alarm installations, certain maintenance 
services, product sales and certain risk management services.
EFFICIENCY-RELATED FACTORS
The efficiency-related key figures provide managers with tools 
to monitor service efficiency and cost trends. The fourth and 
fifth key figures are: Gross margin, which is defined as total 
sales less direct expenses as a percentage of total sales, and 
Indirect expenses, which pertain to the organization and 
include sales and administrative expenses (costs of branch, 
area and regional / country offices). Gross income less Indirect 
expenses equals operating income before amortization of 
acquisition-related intangible assets and acquisition-related 
costs. When this is expressed as a percentage of total sales,  
it indicates the Group’s operating margin, which in Securitas’ 
financial model, comes before acquisition-related items.
CAPITAL-USAGE-RELATED FACTORS
In general, Securitas’ operations are not capital intensive. 
Accounts receivable tie up the most capital. The sixth key 
figure is Days of sales outstanding (DSO). Payment terms 
and effective collection procedures are decisive in determining 
how much capital is tied up in accounts receivable. These  
figures are followed up on an ongoing basis at all levels in the 
organization.
New sales 
Gross margin on new sales
Terminations 
Gross margin on terminations
Net change
Price change
Organic sales growth 
Total sales
Organic sales growth 
Acquired sales growth
Real sales growth
Total sales
Employee turnover 
Wage cost increase 
Gross margin 
Indirect expenses 
Operating margin
Operating margin 
Income before tax
Earnings per share
Days of sales outstanding
Operating capital employed as % of sales
Cash flow from operating activities  
as % of operating income before  
amortization
Return on capital employed 
 
Operating capital employed as % of sales
Cash flow from operating activities  
as % of operating income before  
amortization
Free cash flow
Return on capital employed
Free cash flow in relation to net debt
SECURITAS’ MODEL FOR FINANCIAL KEY FIGURES
GROUP
OPERATIONS
Securitas’ model focuses on the factors that impact profit, and are clearly linked to  
operations. Factors are grouped into three categories: volume-related factors,  
efficiency-related factors and capital-usage-related factors.
54
Securitas Annual and Sustainability Report 2019

RELATIONSHIP BETWEEN INCOME, CASH FLOW AND BALANCE SHEET
Statement of income
The statement of income is broken down accor-
ding to function, making responsibility for each 
profit level clear. Managers with operational 
responsibility can easily see what is expected of 
them and concentrate on the factors they can 
affect. Gross margin and operating margin are 
key indicators, and used in reviewing operations 
at both divisional and Group level. Amortization 
of acquisition-related intangible assets, acquisi-
tion-related costs, financial items and taxes are 
monitored separately.
Statement of cash flow
In principle, operating income should generate 
the same amount of cash flow from operating 
activities. The cash flow is affected by invest-
ments in non-current tangible and intangible 
assets used in operations and by changes in 
working capital. Cash flow from operating acti-
vities is an important indicator at operational 
level. It is defined as operating income less 
investments in non-current tangible and intan-
gible assets (including equipment for solution 
contracts) plus reversal of depreciation, change 
in accounts receivable and change in other ope-
rating capital employed. 
Free cash flow is cash flow from operating 
activities less net financial items paid and cur-
rent taxes paid. Cash flow for the year is arrived 
at when cash flow relating to acquisitions and 
shareholders’ equity is deducted from free cash 
flow. 
The consolidation of net debt in foreign 
currencies usually generates a translation 
difference that is reported separately. In addi-
tion, accounting standards require that certain 
elements of the net debt are revalued to market 
value after the initial recognition and this reva-
luation is also reported separately. The change 
in net debt corresponds to cash flow for the year 
plus the change in loans and lease liabilities, 
translation differences and also the revaluation 
of financial instruments.
Balance sheet
Securitas uses the terms “capital employed” 
and “financing of capital employed” to des-
cribe the balance sheet and financial position. 
Capital employed consists of operating capital 
employed plus goodwill, acquisition-related 
intangible assets and shares in associated com-
panies. 
Operating capital employed, which consists 
of operating non-current tangible and intangible 
assets and working capital, is continuously 
moni­tored at the operating level to avoid 
un­necessary tied-up capital. Capital employed 
is financed by net debt and shareholders’ equity.
These factors are then assigned key figures that are measured 
continuously, allowing managers to make decisions based on 
facts, enabling them to make quick adjustments if needed.  
The model is also used when analyzing acquisition targets.  
The factors and key figures are used throughout our operations 
from branch level to Group level. 
Six key figures represent the backbone of the Six Fingers 
model (highlighted in the text and table), but there are comple-
mentary key figures used by all divisions, such as organic sales 
growth and operating margin. There are also complimentary key 
figures tailored to measure the business in prioritized areas such 
as within security solutions and electronic security. These key 
figures include volume-, efficiency- and capital-usage-related 
factors that hold specific bearing on the Group’s progress. 
­Examples are the number of remote video solution installations, 
gross margin on security solution contracts (compared with 
traditional guarding contracts), the investment in security equip-
ment and order backlog for alarm installations.
MANAGEMENT AND FINANCIAL CONTROL
This picture shows the connection between the statement of income, the statement of cash flow and the balance sheet. Different colors are used for the sake of clarity. 
  Operating items 
  Net-debt-related items 
  Goodwill, taxes and non-operating Items 
  Items related to shareholders’ equity
Total sales
Operating income before 
amortization
Operating non-current tangible  
and intangible assets
Organic sales growth, %
Investments in non-current tangible 
and intangible assets
Accounts receivable
Production expenses
Reversal of depreciation
Other operating capital employed
Gross income
Net investments in non-current  
tangible and ­intangible assets
Operating capital employed
Gross margin, %
Change in accounts receivable
Branch office expenses
Change in other operating  
capital employed
Other selling and 
administrative expenses
Cash flow from operating activities
Other operating income
Net financial items paid
Share in income of 
associated companies
Current taxes paid
Operating income before  
amortization
Free cash flow
Operating margin, %
Acquisitions
Shareholders
Amortization of net debt
55
Securitas Annual and Sustainability Report 2019

56
Securitas Annual and Sustainability Report 2019
Annual Report
Note 1
General corporate information
75
Note 2
Accounting principles
75
Note 3
Definitions, calculation of key ratios and 
exchange rates
81
Note 4
Critical estimates and judgments 
84
Note 5 
Events after the balance sheet date
85
Note 6 
Revenue
86
Note 7 
Financial risk management
87
Note 8 
Transactions with related parties
95
Note 9
Remuneration to the Board of Directors  
and senior management 
95
Note 10
Segment reporting 
98
Note 11
Operating income
101
Note 12
Personnel
102
Note 13
Depreciation and amortization
104
Note 14
Net financial items
104
Note 15
Taxes
104
Note 16
Acquisitions and divestitures of subsidiaries 
106
Note 17
Goodwill and impairment testing
109
Note 18
Acquisition related intangible assets
110
Note 19
Other intangible assets
111
Note 20 
Right-of-use assets
111
Note 21
Tangible non-current assets
112
Note 22
Shares in associated companies
112
Note 23
Interest-bearing financial non-current assets
112
Note 24
Other long-term receivables
112
Note 25
Inventories
113
Note 26
Accounts receivable
113
Note 27
Other current receivables
113
Note 28
Other interest-bearing current assets
113
Note 29
Liquid funds
113
Note 30 
Shareholders’ equity
113
Note 31
Long-term liabilities excluding provisions
114
Note 32
Provisions for pensions and similar 
­commitments
115
Note 33
Other long-term provisions
121
Note 34
Short-term loan liabilities
121
Note 35
Other current liabilities
121
Note 36
Short-term provisions
122
Note 37
Pledged assets
122
Note 38
Contingent liabilities
122
Note 39
Financial five year overview
124
Note 40
Remeasurement for hyperinflation
126
Note 41
Adoption and impact of IFRS 16 Leases
127
Note 42
Accounting principles 
131
Note 43
Events after the balance sheet date
131
Note 44
Transactions with related parties
132
Note 45
Financial risk management 
132
Note 46
Administrative expenses and  
other operating income
134
Note 47
Personnel 
134
Note 48
Other financial income and expenses, net 
135
Note 49
Taxes 
135
Note 50
Intangible assets 
135
Note 51 
Machinery and equipment 
135
Note 52 
Shares in subsidiaries 
136
Note 53
Shares in associated companies 
136
Note 54
Prepaid expenses and accrued income 
137
Note 55
Liquid funds 
137
Note 56
Shareholders’ equity 
137
Note 57
Untaxed reserves
137
Note 58
Long-term liabilities 
137
Note 59
Accrued expenses and prepaid income 
137
Note 60 
Pledged assets 
137
Note 61
Contingent liabilities 
137
THE FORMAL ANNUAL ACCOUNTS AND THE  
CONSOLIDATED ACCOUNTS COMPRISE PAGES 57–143
REPORT OF THE BOARD  
OF DIRECTORS
57
CONSOLIDATED  
FINANCIAL STATEMENTS
Consolidated statement of income 
68
Consolidated statement of 
comprehensive income 
68
Consolidated statement of cash flow
70
Consolidated balance sheet
72
Consolidated statement of changes 
in shareholders’ equity
74
NOTES AND COMMENTS  
TO THE CONSOLIDATED  
FINANCIAL STATEMENTS
75
PARENT COMPANY  
FINANCIAL STATEMENTS
Parent Company statement of income
128
Parent Company statement of 
comprehensive income 
128
Parent Company statement of cash flow
128
Parent Company balance sheet
129
Parent Company statement of 
changes in shareholders’ equity
130
NOTES AND COMMENTS  
TO THE PARENT COMPANY  
FINANCIAL STATEMENTS
131
SIGNATURES OF THE  
BOARD OF DIRECTORS
138
AUDITOR’S REPORT 
139
SUSTAINABILITY NOTES 
144
QUARTERLY DATA
160
THE SECURITAS SHARE
162
FINANCIAL INFORMATION  
AND INVITATION TO THE  
ANNUAL GENERAL MEETING
164

57
Securitas Annual and Sustainability Report 2019
REPORT OF THE BOARD OF DIREC TORS
Report of the Board of Directors
Securitas offers protective services based on client-specific 
needs through different combinations of on-site, mobile and 
remote guarding, electronic security, fire and safety and corporate 
risk management. Securitas operates in 56 countries in North 
America, Europe, Latin America, Africa, the Middle East, Asia and 
Australia, with 370 000 employees. 
In 2019 the Securitas Group consisted of the business seg-
ments Security Services North America, Security Services Europe 
and Security Services Ibero-America. In addition to these busi-
ness segments, the Group conducts operations in Africa, the 
Middle East, Asia and Australia, which are included under the 
heading Other in the segment report in note 10. 
Securitas has adopted IFRS 16 Leases as of January 1, 2019. 
The cumulative effect of the adoption has been recognized with-
out restatement of the comparative periods. Further information 
can be found in notes 2 and 41. 
Organic sales growth was 4 percent (6), a decline on a strong 
comparative, but also reflected the slowdown in some key mar-
kets during the second half of 2019. Securitas grew faster than 
the security market in general and have the strongest offering of 
protective services, including security solutions and electronic 
security, which grew by 10 percent in 2019, to represent 21 per-
cent of total Group sales. Securitas recently acquired two strate-
gically important electronic security companies, Fredon Security 
in Australia and Techco Security in Spain, the latter making Spain 
the second largest electronic security business in the Group. 
The operating margin was on par with last year. The price and 
wage balance improved towards the end of the year and will 
remain a key focus area going into 2020.
The operating result, adjusted for changes in exchange rates, 
grew by 3 percent in 2019.
Securitas achieved the highest operating and free cash flow 
ever in 2019. The strong focus on cash management remains a 
key priority across all business segments.
Earnings per share amounted to SEK 9.20 (8.26), a total 
change of 11 percent compared with the preceding year. The real 
change in earnings per share in 2019 was 6 percent. EPS before 
items affecting comparability amounted to SEK 9.61, represen-
ting a total change of 5 percent compared with the preceding 
year and a real change of –1 percent in 2019. The real change in 
EPS was negatively impacted by the adoption of IFRS 16 as well 
as by the higher tax rate compared to last year. Together, these 
two factors had an impact of –4.5 percentage points. Adjusted, 
the real change in EPS before items affecting comparability 
would have been 4 percent in 2019.
The free cash flow to net debt ratio was 0.19 (0.13) and the 
net debt to EBITDA ratio was 2.2 (2.3), both impacted by IFRS 
16. For further information, refer to note 41.
Sales
Sales amounted to MSEK 110 899 (101 467) and organic sales 
growth to 4 percent (6). Security Services North America delive-
red organic sales growth of 4 percent (6) on a strong compara-
tive. Security Services Europe showed organic sales growth of 
2 percent (4), primarily hampered by the previously communica-
ted termination of a few major contracts. Security Services Ibero-
America delivered 14 percent (12).
Real sales growth, including acquisitions and adjusted for 
changes in exchange rates, was 6 percent (8). 
Sales of security solutions and electronic security sales 
amounted to MSEK 23 290 (20 440) or 21 percent (20) of total 
sales in the full year. Real sales growth, including acquisitions and 
adjusted for changes in exchange rates, was 10 percent (21).
SALES JANUARY – DECEMBER 
MSEK
2019
2018
%
Total sales
110 899
101 467
9
Currency change from 2018
-3 693
–
Currency adjusted sales
107 206
101 467
6
Acquisitions / divestitures
-1 339
-34
Organic sales
105 867
101 433
4
Operating income before amortization
Operating income before amortization was MSEK 5 738 (5 304) 
which, adjusted for changes in exchange rates, represented a real 
change of 3 percent (9). 
The Group’s operating margin was 5.2 percent (5.2). The ope-
rating margin improved in Security Services North America and 
Security Services Ibero-America, while it declined in Security Ser-
vices Europe. Continued strategy-related investments at the 
Group level, included under ”Other” in the segment reporting, had 
an impact of –0.1 percentage points on the Group’s operating 
margin. Total price adjustments in the Group were slightly behind 
wage cost increases in the full year.
The adoption of IFRS 16 Leases had a positive impact on the 
operating result of MSEK 80 in 2019. For further information 
refer to note 41.
The Board of Directors and the President of Securitas AB (publ.), corporate registration  
number 556302-7241, with its registered office in Stockholm, hereby submit the Annual Report  
and consolidated financial statements for the 2019 financial year.

58
Securitas Annual and Sustainability Report 2019
REPORT OF THE BOARD OF DIREC TORS
OPERATING INCOME JANUARY – DECEMBER
MSEK
2019
2018
%
Operating income before 
amortization
5 738
5 304
8
Currency change from 2018
-255
–
Currency adjusted operating 
income before amortization
5 483
5 304
3
Operating income after amortization
Amortization of acquisition related intangible assets amounted to 
MSEK –271 (–260).
Acquisition related costs were MSEK –62 (–120). For further 
information refer to note 11.
Items affecting comparability were MSEK –209 (–455), related 
to the IS/IT transformation programs. For further information refer 
to note 11.
Operating income after amortization was MSEK 5 196 
(4 469).
Financial income and expenses
Financial income and expenses amounted to MSEK –578 (–441), 
with the comparative including a one-off effect of MSEK –46 rela-
ting to the re-financing of high interest-bearing debt items in 
Argentina. The adoption of IFRS 16 Leases had a negative 
impact of MSEK –148. Furthermore, financial income and expen-
ses were negatively impacted by a weaker Swedish krona and 
increased net debt. Financial income and expenses were positi-
vely impacted in an amount of MSEK 25 related to hyperinflation 
accounting in Argentina. Refer to note 40.
Income before taxes
Income before taxes amounted to MSEK 4 618 (4 028). The 
adoption of IFRS 16 Leases had a negative effect of MSEK –68 
on income before taxes. For further information refer to note 41.
Taxes, net income and earnings per share
The Group’s tax rate was 27.2 percent (25.0). The tax rate before 
tax on items affecting comparability was 27.2 percent (25.2). 
Net income was MSEK 3 362 (3 021). The adoption of IFRS 
16 Leases had a negative effect of MSEK –49 on net income. 
Earnings per share amounted to SEK 9.20 (8.26). Earnings 
per share before items affecting comparability amounted to SEK 
9.61 (9.17).
CONDENSED STATEMENT OF INCOME  
ACCORDING TO SECURITAS’ FINANCIAL MODEL
MSEK
2019
2018
Total sales
110 899
101 467
Organic sales growth, %
4
6
Production expenses
-91 588
-83 570
Gross income
19 311
17 897
Selling and administrative expenses
-13 637
-12 654
Other operating income
34
30
Share in income of associated companies
30
31
Operating income before amortization
5 738
5 304
Operating margin, %
5.2
5.2
Amortization of acquisition  
related intangible assets
-271
-260
Acquisition related costs
-62
-120
Items affecting comparability
-209
-455
Operating income after amortization
5 196
4 469
Financial income and expenses
-578
-441
Income before taxes
4 618
4 028
Taxes
-1 256
-1 007
Net income for the year
3 362
3 021
Securitas’ financial model is described on pages 54-55.
  Operating items. 
  Net debt-related items.   
  Goodwill, taxes and non-operating items. 
  Items related to shareholders’ equity.
Development in the Group’s business segments
Security Services North America
SALES AND INCOME
Change, %
MSEK
2019
2018 
Total 
Real
Total sales
48 499
42 366
14
6
Organic sales growth, %
4
6
Share of Group sales, %
44
42
Operating income  
before amortization
3 003
2 589
16
8
Operating margin, %
6.2
6.1
Share of Group operating income, %
52
49
Further information regarding the statement of income, cash flow and capital employed is provided in 
note 10.
	
Organic sales growth was 4 percent (6), on a strong comparative 
and a client retention rate of 90 percent (91). The main contribu-
tion to organic sales growth derived from the five geographical 
regions and Pinkerton Corporate Risk Management.
Security solutions and electronic security sales represented 
MSEK 8 885 (7 365) or 18 percent (17) of total sales in the busi-
ness segment for the full year. 
The operating margin was 6.2 percent (6.1), an improvement 
supported by several business units, including a good develop-
ment in the five geographical regions. The operating margin was 
hampered by a temporary decline in the critical infrastructure ser-
vices business unit in the fourth quarter. The adoption of IFRS 16 
Leases had a positive impact on the operating result in the busi-
ness segment.

59
Securitas Annual and Sustainability Report 2019
The Swedish krona exchange rate weakened against the US 
dollar, which had a positive effect on operating income in Swe-
dish kronor. The real change was 8 percent in the full year.
Security Services Europe
SALES AND INCOME
Change, %
MSEK
2019
2018 
Total 
Real
Total sales
47 248
45 040
5
3
Organic sales growth, %
2
4
Share of Group sales, %
43
44
Operating income  
before amortization
2 582
2 511
3
1
Operating margin, %
5.5
5.6
Share of Group operating income, %
45
 47
Further information regarding the statement of income, cash flow and capital employed is provided in 
note 10.
Organic sales growth was 2 percent (4), a decline mainly explai-
ned by the contract terminations in France and the UK earlier in 
the year. The client retention rate was 90 percent (93). The main 
contribution to organic sales growth derived from Belgium, Ger-
many, the Nordic countries and the guarding business in Turkey. 
Security solutions and electronic security sales represented 
MSEK 10 611 (9 638) or 22 percent (21) of total sales in the 
business segment. 
The operating margin was 5.5 percent (5.6), hampered prima-
rily by Sweden as well as a negative impact from Belgium and the 
Netherlands. The operating margin was supported by final gains 
related to the settlement of existing defined benefit pension 
plans in Norway, and by the cost savings program initiated during 
2018. The adoption of IFRS 16 Leases had a positive impact on 
the operating result in the business segment.
The Swedish krona exchange rate weakened against foreign 
currencies, primarily the Euro, which had a positive effect on ope-
rating income in Swedish kronor. The real change was 1 percent 
in the full year.
Security Services Ibero-America
SALES AND INCOME
Change, %
MSEK
2019
20181
Total 
Real
Total sales
13 099
12 315
6
14
Organic sales growth, %
14
12
Share of Group sales, %
12
12
Operating income  
before amortization
614
550
12
14
Operating margin, %
4.7
4.5
Share of Group operating income, %
11
10
Further information regarding the statement of income, cash flow and capital employed is provided  
in note 10.
1 As of July 1, 2018, Securitas has adopted IAS 29 Financial reporting in hyperinflationary economies 
for our operations in Argentina. When calculating the key ratios for organic sales growth percentage 
and real change percentage, the impact from the remeasurement is treated similarly to currency 
change. The calculated key ratio percentages are thus comparable as to how these were calculated 
before the adoption of IAS 29. The impact from IAS 29 is a remeasurement of sales 2019 with MSEK 
–12 (–63) and a remeasurement of operating income before amortization 2019 of MSEK –2 (–3).
Organic sales growth was 14 percent (12). The improvement 
derived mainly from Spain and from price increases in Argentina. 
The client retention rate was 92 percent (92). 
Security solutions and electronic security sales represented 
MSEK 3 527 (3 270) or 27 percent (27) of total sales in the busi-
ness segment. 
The operating margin was 4.7 percent (4.5), driven mainly by 
a strong development in Spain, but burdened by the weak fourth 
quarter in Peru. The adoption of IFRS 16 Leases had a positive 
impact on the operating result in the business segment.
As previously communicated, management changes have 
been made in Argentina. Following internal whistleblowing Secu-
ritas has conducted an investigation into potentially improper 
conduct through specialized external parties. For further informa-
tion, see below under Other significant events. Furthermore, the 
general environment in Argentina remains challenging. 
The Swedish krona exchange rate strengthened against the 
Argentinian peso, while it weakened against the Euro. The net 
effect was negative on operating income in Swedish kronor. The 
real change in the segment was 14 percent in 2019.
Cash flow
The adoption of IFRS16 Leases had no net impact on cash flow 
from operating activities nor on the free cash flow according to 
Securitas financial model. The cash flow is consequently prepa-
red on the same basis as in 2018.
Cash flow from operating activities amounted to MSEK 4 902 
(3 172), equivalent to 85 percent (60) of operating income 
before amortization.
The impact from changes in accounts receivable was MSEK 
–239 (–1 575) with improved cash collections in all business seg-
ments. Changes in other operating capital employed were MSEK 
–277 (–62).
Cash flow from operating activities include net investments in 
non-current tangible and intangible assets, amounting to MSEK 
–320 (–495). The net investments include capital expenditures in 
equipment for solution contracts and is the result of investments 
of MSEK –3 010 (–2 188) and reversal of depreciation of MSEK 
2 690 (1 693). The adoption of IFRS 16 Leases impacted invest-
ments with MSEK –970 and reversal of depreciation with 
MSEK 890.
Free cash flow was MSEK 3 268 (1 884), equivalent to 
83 percent (48) of adjusted income.
Cash flow from investing activities, acquisitions, was MSEK 
–574 (–1 755), of which purchase price payments accounted for 
MSEK –533 (–1 700), assumed net debt for MSEK 39 (42) and 
acquisition related costs paid for MSEK –80 (–97).
Cash flow from items affecting comparability amounted to 
MSEK –303 (–117). Refer to note 11 for further information.
Cash flow from financing activities was MSEK –1 699 (–376) 
due to dividend paid of MSEK –1 606 (–1 460) and a net 
decrease in borrowings of MSEK –93 (1 084).
Cash flow for the period was MSEK 692 (–364). The closing 
balance for liquid funds after translation differences of MSEK 27 
was MSEK 3 948 (3 229).
REPORT OF THE BOARD OF DIREC TORS

60
Securitas Annual and Sustainability Report 2019
CONDENSED STATEMENT OF CASH FLOW  
ACCORDING TO SECURITAS’ FINANCIAL MODEL
MSEK
2019
2018
Operating income before amortization
5 738
5 304
Investments in non-current tangible  
and intangible assets
-3 010
-2 188
Reversal of depreciation
2 690
1 693
Net investments in non-current 
tangible and intangible assets
-320
-495
Change in accounts receivable
-239
-1 575
Change in other operating capital employed
-277
-62
Cash flow from operating activities
4 902
3 172
Cash flow from operating activities, %
85
60
Financial income and expenses paid
-443
-432
Current taxes paid
-1 191
-856
Free cash flow
3 268
1 884
Free cash flow, %
83
48
Cash flow from investing activities,  
acquisitions and divestitures
-574
-1 755
Cash flow from items affecting comparability
-303
-117
Cash flow from financing activities
-1 699
-376
Cash flow for the year
692
-364
Securitas’ financial model is described on pages 54-55.
  Operating items. 
  Net debt-related items.   
  Goodwill, taxes and non-operating items. 
Capital employed and financing 
Capital employed 
The Group’s operating capital employed was MSEK 13 100 
(9 199), corresponding to 12 percent of sales (9), adjusted for 
the full-year sales figures of acquired units. Adjusted for the 
impact of IFRS 16 Leases the operating capital employed as per-
cent of sales would have been 9 percent (9). The adoption of 
IFRS 16 Leases increased the Group’s operating capital employed 
by MSEK 3 433 as of January 1, 2019, while the translation of 
foreign operating capital employed to Swedish kronor decreased 
the Group’s operating capital employed by MSEK 26.
The annual impairment test of all Cash Generating Units 
(CGU), which is required under IFRS, took place during the third 
quarter 2019 in conjunction with the business plan process for 
2020. In 2019, IFRS 16 has been adopted on segment level. The 
Group has changed the level of impairment testing for goodwill 
from country level to segment level. None of the CGUs tested for 
impairment had a carrying amount that exceeded the recoverable 
amount. Consequently, no impairment losses have been recogni-
zed in 2019. No impairment losses were recognized in 2018 
either.
The Group’s total capital employed was MSEK 37 140 
(32 170). The translation of foreign capital employed to Swedish 
kronor increased the Group’s capital employed by MSEK 614. 
The return on capital employed was 15 percent (15). Adjusted 
for the impact of IFRS 16 Leases the return on capital employed 
would have been 16 percent (15).
Financing
The Group’s net debt amounted to MSEK 17 541 (14 513). The 
net debt was positively impacted mainly by the free cash flow of 
MSEK 3 268. It was negatively impacted mainly by a change in 
lease liabilities of MSEK –3 332, a dividend of MSEK –1 606, paid 
to the shareholders in May 2019, payments for acquisitions of 
MSEK –574 and the translation of net debt in foreign currency to 
Swedish kronor of MSEK –541.
The free cash flow to net debt ratio amounted to 0.19 (0.13). 
The net debt to EBITDA ratio was 2.2 (2.3). The interest cover-
age ratio amounted to 9.4 (10.7). Adjusted for the impact of 
IFRS 16 Leases the free cash flow to net debt ratio would have 
been 0.23 (0.13) and the net debt to EBITDA ratio would have 
been 2.0 (2.3), while the interest coverage ratio would have been 
12.2 (10.7). 
Securitas has a revolving credit facility with its 12 key relation-
ship banks. This credit facility comprises two respective tranches 
of MUSD 550 and MEUR 440 and matures in 2022. On Decem-
ber 31, 2019, the facility was undrawn. Further information 
regarding financial instruments and credit facilities is provided in 
note 7.
Standard and Poor’s rating for Securitas is BBB with positive 
outlook. 
Shareholders’ equity amounted to MSEK 19 599 (17 657). 
The translation of foreign assets and liabilities into Swedish 
kronor increased shareholders’ equity by MSEK 73. Refer to the 
statement of comprehensive income for further information.
The total number of shares amounted to 365 058 897 
(365 058 897) as of December 31, 2019. On June 24, 2019, 
125 000 shares were repurchased. Refer to note 30 for further 
information.
CONDENSED CAPITAL EMPLOYED AND FINANCING  
ACCORDING TO SECURITAS’ FINANCIAL MODEL
MSEK
2019
2018
Operating capital employed
13 100
9 199
Operating capital employed as % of sales
12
9
Goodwill
22 157
21 061
Acquisition related intangible assets
1 563
1 458
Shares in associated companies
320
452
Total capital employed
37 140
32 170
Return on capital employed, %
15
15
Net debt
17 541
14 513
Shareholders’ equity
19 599
17 657
Total financing
37 140
32 170
Securitas’ financial model is described on pages 54-55.
  Operating items. 
  Net debt-related items.   
  Goodwill and non-operating items. 
  Items related to shareholders’ equity. 
NET DEBT DEVELOPMENT
MSEK
2019
2018
Opening balance January 1
-14 513
-12 333
Cash flow from operating activities
4 902
3 172
Financial income and expenses paid
-443
-432
Current taxes paid
-1 191
-856
Free cash flow
3 268
1 884
Cash flow from investing activities, 
acquisitions and divestitures
-574
-1 755
Cash flow from items affecting comparability
-303
-117
Dividend paid
-1 606
-1 460
Change in lease liabilities
-3 332
–
Change in net debt before  
revaluation and translation
-2 547
-1 448
Revaluation of financial instruments
60
26
Translation differences
-541
-758
Change in net debt
-3 028
-2 180
Closing balance December 31
-17 541
-14 513
REPORT OF THE BOARD OF DIREC TORS

61
Securitas Annual and Sustainability Report 2019
Acquisitions and divestitures
ACQUISITIONS AND DIVESTITURES JANUARY-DECEMBER 2019 (MSEK)
Company
Business segment1
Included 
from
Acquired 
share2
Annual 
sales3
Enterprise  
value4
Goodwill
Acq. related 
intangible 
assets
Opening balance
21 061
1 458
Global Elite Group, the US6
Security Services North America
Jan 10
100
290
163
123
70
Allcooper Group, the UK6
Security Services Europe
Apr 1
100
88
59
31
26
Staysafe, Australia6
Other
Apr 4
100
72
83
126
57
MSM Security Services, the US6
Security Services North America
Oct 5
–
140
6
42
61
Other acquisitions and divestitures5,6
–
–
440
183
107
118
Total acquisitions and divestitures January–December 2019
1 030
494
429
332
Amortization of acquisition related intangible assets
–
-271
Translation differences and remeasurement for hyperinflation
667
44
Closing balance
22 157
1 563
1 Refers to business segment with main responsibility for the acquisition. 
2 Refers to voting rights for acquisitions in the form of share purchase agreements. For asset deals no 
voting rights are stated.
3 Estimated annual sales. 
4 Purchase price paid plus acquired net debt but excluding any deferred considerations.
5 Related to other acquisitions for the period and updated previous year acquisition calculations for the 
following entities: Iverify (step acquisition), the US, Nortrax Veg og Trafikk, Norway, WHD Wachdi-
enst Heidelberg, Wach- und Schließgesellschaft Hof Inh. I Müller, Germany, Securitas Interim (dives-
titure), Cezzam, France, 4CS Security (contract portfolio), Austria, Pronet, DAK, Turkey, Instalfogo, 
Portugal and Beijing Saikudasi Consultancy Management, China. Related also to deferred consider-
ations paid in Sweden, Germany, France, Austria, Czech Republic, Australia, China and Hong Kong.
6 Deferred considerations have been recognized mainly based on an assessment of the future profit-
ability development in the acquired entities for an agreed period. The net of new deferred consid-
erations, payments made from previously recognized deferred considerations and revaluation of 
deferred considerations in the Group was MSEK 147. Total deferred considerations, short-term and 
long-term, in the Group’s balance sheet amount to MSEK 425.
All acquisition calculations are finalized no later than one year 
after the acquisition is made. Transactions with non-controlling 
interests are specified in the statement of changes in sharehol-
ders’ equity. Transaction costs and revaluation of deferred consi-
derations can be found in note 11.
For further information regarding acquisitions and divestitures 
in 2019, refer to note 16.
Other significant events
Investigation into improper behavior, Argentina
As previously communicated, management changes have been 
made in Argentina. Following internal whistleblowing Securitas 
has conducted an investigation into potentially improper conduct 
through specialized external parties. 
The findings revealed that certain individuals have engaged in 
local business practices in violation of the Securitas Values and 
Ethics Code. The investigation indicates compliance issues, inclu-
ding conflicts of interest and irregular supplier and other business 
relationships. Disciplinary measures against these individuals, 
including terminations where appropriate, have been taken and 
Securitas is considering whether to take further legal action. 
Securitas is now proactively collaborating with the appropriate 
authorities to ensure that Securitas fulfills all obligations as a 
responsible company. This includes correcting the income and 
value added tax by paying the corresponding additional tax and 
interest charges of approximately MSEK 130 to the local tax 
administration. The tax contingency payment is covered by exis-
ting provisions. The Group assesses that the impact of the 
misconduct will not have a material effect on the result or finan-
cial position of the Group.
Other significant events after the balance sheet date
Securitas has acquired Fredon Security, founded in 2012 as a 
division within Fredon Group, an Australian engineering and buil-
ding services company. Fredon Security is specialized in high-
end electronic security solutions including system design, engi-
neering, installation, commissioning and maintenance. The com-
pany has approximately 110 employees with a strong footprint 
across Australia’s key geographical markets; Melbourne, Can-
berra, Brisbane, Perth and Sydney, where it is headquartered. 
Through strong organic growth the company has established a 
robust market position in the technology, commercial and 
government client segments. Fredon Security’s annual sales was 
MAUD 37 (MSEK 240) in the financial year ending June 2019. 
The purchase price is estimated to MAUD 32 (MSEK 210). The 
acquisition was consolidated into Securitas as of January 9, 
2020.
Securitas reinforces its leadership position within the electro-
nic security market in Spain through the acquisition of Techco 
Security, a leading electronic security company. Techco Security 
offers a comprehensive range of integrated security services 
including installation, maintenance and remote guarding services 
as well as access control, electronic alarm surveillance and fire 
protection, and supports clients through two operations centers 
in Madrid and Barcelona. The company has approximately 520 
employees with a strong footprint across Spain and Portugal. 
Techco Security’s annual sales was MEUR 50 (MSEK 520) in 
2018. The purchase price is estimated to MEUR 22 (MSEK 230). 
The acquisition was closed and consolidated into Securitas as of 
January 8, 2020.
In order to hedge the share portion of Securitas short-term 
share-based incentive scheme 2019, the Group entered into a 
swap agreement with a third party in the beginning of March 
2020.
There have been no other significant events with effect on the 
financial reporting after the balance sheet date.
Changes in Group Management  
and creation of functional units
Three new global functional units have been created and chan-
ges to the Securitas Group Management team have been made 
to support the strategy and related to upcoming retirements.
REPORT OF THE BOARD OF DIREC TORS

62
Securitas Annual and Sustainability Report 2019
From July 1, 2019 the three new global functional units are:
•	Global Clients & Vertical Markets, responsible for Securitas 
largest global clients and for developing specialization in new 
vertical markets. 
•	Global Electronic Security Business Center, responsible for 
developing a global business approach with common tools, 
processes, products and services within Electronic Security. 
•	Global Guarding Center of Excellence, responsible for continu-
ing to strengthen our core by developing global expertise, 
common tools and processes within Guarding.
The following changes in Group Management took effect from 
July 1, 2019:
•	Brian Riis Nielsen appointed to SVP Global Clients, leader of 
the Global Clients & Vertical Markets function and a member 
of Securitas Group Management
•	Tony Byerly continues in his role as President, Securitas Elec-
tronic Security North America and was appointed to a 
member of Securitas Group Management. Tony Byerly will 
also lead the Global Electronic Security Business Center unit 
•	Luis Posadas retired from his role as Divisional President 
Ibero-America and stepped down from Securitas Group 
Management. 
•	Jorge Couto appointed to Divisional President Ibero-America 
and a member of Securitas Group Management.
•	Andreas Lindback continues in his role as Divisional President 
AMEA and appointed a member of Securitas Group Manage-
ment. 
The following changes took effect from January 1, 2020:
•	Santiago Galaz was appointed Executive Chairman of Securi-
tas North America and stepped down from Securitas Group 
Management. 
•	Greg Anderson was appointed to President, North American 
Guarding, and a member of Securitas Group Management.
•	José Castejon was appointed to Chief Operating Officer, North 
American Guarding and a member of Securitas Group Mana-
gement. José will also lead the Global Guarding Center of 
Excellence unit. 
•	Bill Barthelemy retired from his role as Chief Operating Officer, 
North America and stepped down from Securitas Group 
Management. Bill will assist as an advisor and continue wor-
king with select clients through 2021.
The following individuals continue in their present roles: Bart 
Adam (CFO), Peter Karlströmer (Divisional President Security 
Services Europe), Henrik Zetterberg (COO Security Services 
Europe), Aimé Lyagre (COO and CTO Security Services Europe), 
Marc Pissens (President Aviation), Martin Althén (CIO), Jan Lind-
ström (SVP Finance), Frida Rosenholm (SVP General Counsel) 
and Helena Andreas (SVP Brand & Communications).
Risk and uncertainties
Managing risk is necessary for Securitas to be able to fulfill its 
strategies and achieve its corporate objectives. Securitas’ 
approach to enterprise risk management is described in more 
detail on pages 48-51.
Securitas’ risks fall into three main categories: contract and 
acquisition risks, operational assignment risks and financial risks.
Contract and acquisition risks
This category encompasses the risks related to entering into a 
client contract and also those risks related to the acquisition of 
new businesses.
When entering into a contract with a client a balanced alloca-
tion of responsibilities and risks between Securitas and the client 
is essential. Standardized contracts are the norm. Reasonable 
caps on potential liability and indemnification for third-party 
claims are important. Significant focus is devoted to contract risks 
and the management of contract risks. Each segment has develo-
ped policies and procedures tailored to their specific needs. 
These policies are all based on the contract policies approved by 
the Board of Directors in the Group Policies.
In addition to organic growth resulting from new and / or 
increased client contracts the Group has grown by a significant 
number of acquisitions over the years and will, as part of the 
Group’s strategy, continue to acquire security companies. The 
integration of new companies always carries certain risks. The 
profitability of the acquired company may be lower than expec-
ted and / or certain costs in connection with the acquisition may 
be higher than expected.
The acquisitions made during 2019 are described under the 
heading Acquisitions and divestitures above and in note 16.
Operational assignment risks
Operational assignment risks are risks associated with daily opera-
tions and the services we provide to our clients including risks rela-
ted to necessary infrastructure to run the business. For example, 
when services do not meet the required standards and result in 
loss of property, damage to property or bodily injury. Proper recru-
itment, training and supervision of security officers are important to 
mitigate these risks. Another type of operational assignment risk 
which may impact profitability is the risk that Securitas will not be 
able to increase prices to be paid by clients in order to compensate 
fully for increases in wages and related costs.
Financial risks
The financial risks include risks related to financial reporting, as well 
as financial risks related to external financing needs including cur-
rency exposure.
Financial risks are mainly managed through continuous measu-
rement and follow-up of financial performance, with the help of 
Securitas’ financial model. This model identifies certain key figures 
that are vital to the profitability of the operations, and facilitates the 
detection and handling of risks. The financial model is described in 
more detail on pages 54-55. In addition, financial risks (other than 
relating to financial reporting) arise because the Group has external 
financing needs and operates in a number of foreign currencies. 
The risks are mainly interest rate risk, foreign currency risk, finan-
cing and liquidity risk and credit / counterparty risk.
The client credit risk, that is the risk of Securitas’ clients not 
being able to fulfill their obligation of paying invoices for services 
being provided, is reduced by the fact that the numerous clients 
are spread over many business sectors and geographies, and by 
established routines for monitoring and collecting of accounts 
receivable within the organization. Further information regarding 
financial risk management is provided above under the section 
Capital employed and financing / Financing and in note 7.
The preparation of financial reports requires the Board of 
Directors and Group Management to make estimates and judg-
ments. Estimates and judgments will impact the statement of 
REPORT OF THE BOARD OF DIREC TORS

63
Securitas Annual and Sustainability Report 2019
income and the balance sheet, as well as disclosures such as 
contingent liabilities. Actual results may differ from these estima-
tes and judgments under different circumstances and conditions. 
Further information regarding critical estimates and judgments is 
provided in note 4.
For the forthcoming twelve-month period, the financial impact 
of certain items affecting comparability, provisions and contingent 
liabilities, as described in note 11, note 33, note 36 and note 38 
respectively, may vary from the current financial estimates and 
provisions made by management. This could affect the profitabi-
lity and the financial position of the Group.
Statutory Sustainability Report
The statutory Sustainability Report is included in separate parts 
of the Securitas AB Annual Report 2019 and is not a part of the 
statutory Annual Report.
Securitas AB’s Sustainability Report describes the Group’s work 
with regards to economic, environmental and social aspects. The 
report is prepared according to the Sustainability Reporting Stan-
dards, issued by Global Reporting Initiative (GRI). The Sustainabi-
lity reporting also includes the statutory Sustainability Report 
under Chapter 6 Section 11 of the Annual Accounts Act.
Securitas is a service company with relatively low environ­
mental impact compared with a manufacturing company. The 
operations of the Group do not require a permit under the Swe-
dish Environmental Code.
INFORMATION ABOUT:
See page
Environment
147, 149, 153
Social conditions
146-148
Personnel
10-13, 30, 144, 147, 
148, 150-152
Respect for human rights
13, 147
Anti-corruption
146, 149
Value creation
10-11
Sustainability risks
148-149
GRI index
155-157
Research and development
The service offering of the Group is continuously being develo-
ped, not least as an integrated item when carrying out the service 
delivery to the clients. Technical solutions are an important part 
of the security solutions that Securitas offers. In order to support 
this development, a Chief Technology Officer (CTO) position with 
supporting staff has been implemented in all major countries as 
well as on divisional level. As  mentioned above the Group has 
also during 2019 created a Global Electronic Security Business 
Center, responsible for developing a global business approach 
with common tools, processes, products and services within 
Electronic Security. The capabilities within technical solutions is 
also supported by a number of acquisitions within Electronic 
security such as the ones completed during 2019 or at the 
beginning of 2020 with Allcooper Group, Staysafe, Fredon Secu-
rity and Techco Security.
The Group’s Chief Information Officer with team are leading the 
development of Securitas’ global digitization and IS/IT transforma-
tion and are responsible for large scale global IT/business projects. 
The Group continue to execute on the two major transformation 
programs, that were announced last year, that will bring increased 
digitalization, efficiency and a platform for innovation. The imple-
mentation of these two programs is progressing according to plan 
and positive impacts are expected starting in 2021 and gradually 
increasing during 2022, as previously communicated.
Securitas is a service company and has historically not carried 
out any material research and development activities as defined 
in IAS 38 Intangible assets. Under the responsibility of the 
Group’s Chief Information Officer the Group has gradually 
invested in capabilities to develop improved data-driven and 
intelligence-based services for a future where scale and data 
availability are critical for the next big shift in the security services 
industry to the benefit our clients and society as a whole. A 
number of development projects that supports this are ongoing 
and as of December 31, 2019 the Group had MSEK 49 (23) in 
capitalized development expenditures.
Information regarding the Securitas share
Information about the Securitas share regarding the number of 
shares of Series A and Series B, differences between shares in 
Series A and Series B as well as information on major sharehol-
ders can be found in note 30. Further information regarding the 
Securitas share can also be found on pages 162-163.
In order to be able to contribute to shareholder value, the 
Board considers it beneficial for the company to be able to adjust 
the company’s capital structure as appropriate at each point in 
time. The Board has therefore decided to propose to the Annual 
General Meeting on May 7, 2020, that the Board be authorized 
to be able to resolve on the acquisition of the company’s shares 
for a period until the next Annual General Meeting, up to a maxi-
mum of ten (10) percent of all shares in the company. There is 
currently an authorization by the Annual General Meeting held on 
May 6, 2019, to the Board of Directors to repurchase Securitas 
shares for the purpose of adjusting the company’s capital struc-
ture, be able to exploit acquisition opportunities and/or to ensure 
the company’s undertakings in respect of share-based incentive 
programs (other than delivery of shares to participants of incen-
tive programs). On June 24, 2019, 125 000 shares were 
repurchased in order to ensure the company’s undertaking In 
respect of existing share-based Incentive programs. These 
shares are held as treasury shares and have not reduced the 
company’s share capital.
A shareholders’ agreement that among other items comprises 
preemption rights for the sale of Series A shares by any part exists 
among the Douglas family and Schörling family and companies 
closely related to them. Apart from this, the Board of Directors of 
Securitas AB is not aware of any shareholders’ agreements or 
other arrangements between shareholders of Securitas AB.
Group development
Securitas continues to drive the development in the security ser-
vices industry. With the strongest client offering and a strong 
team around the world, organic sales growth was 4 percent and 
we continued to grow faster than the market. The operating 
margin was stable compared with the previous year. 
The strategy review that was initiated in 2018 was concluded 
in 2019 and we started to implement the transformation pro-
grams to build an even stronger company tomorrow. To reach the 
wanted position, to become the Intelligent Protective Services 
Partner for the clients, three main strategic focus areas were 
identified: Client engagement, Protective services offering with 
intelligent services, and Efficiency. 
As part of the strategy review, we also formulated our Pur-
pose, We help make your world a safer place, and started the pro-
REPORT OF THE BOARD OF DIREC TORS

64
Securitas Annual and Sustainability Report 2019
cess to become a purpose led organization. 
Securitas started to execute on two major transformation pro-
grams to modernize and digitize the operations. The first pro-
gram will radically modernize our global IS/IT foundation 
through­out the Group. This investment into our global IS/IT foun-
dation and the creation of a global IS/IT organization will make us 
more efficient. With the second program we are driving a busi-
ness transformation of our North American operations with the 
objective to operate in a more effective way, with expected posi-
tive impact on our client offering, competitiveness and bottom 
line. The programs have been initiated and are expected to be 
completed over the next few years.
Related to these two programs, MSEK -209 (-187) was 
recognized as items affecting comparability in the income state-
ment in 2019. An additional amount of approximately MSEK 
-450 will be recognized as items affecting comparability over the 
course of the next two years. Such costs relate primarily to the 
impairment of assets, organizational restructuring charges and 
other non-recurring items. Furthermore, an estimated amount of 
in total MSEK 550 related to these two programs will be capitali-
zed and amortized over the life time of the assets.
When fully implemented, we expect to have a more techno-
logy-enabled platform across the Group, creating the capability to 
develop and launch digital services at scale for our clients, as well 
as a more cost-efficient base. Upon expected completion in 
2022, the investment into our global IS/IT foundation is expected 
to reduce our current IT costs across the Group by MSEK 300. 
With higher efficiency and productivity, we will free up resources 
to invest in speeding up the development and delivery of intelli-
gent services and to improve margins. The business transforma-
tion program in North America will, everything else equal, support 
our North American operating margin up to 0.5 percentage 
points, with a first positive impact starting in 2021 and gradually 
increasing during 2022.
Accelerating the modernization of our IS/IT capability and 
digitization of our operations will enable us to offer greatly impro-
ved data-driven and intelligence-based services. In a future 
where scale and data availability are critical, we will drive the next 
big shift in the security services industry to benefit our clients 
and society as a whole. This will also enable us to grow faster 
than the market and deliver profitable growth. 
We are analyzing the optimal way to organize the European 
business supported by modern tools and systems to build more 
efficient operations and generate higher value. This analysis will 
be completed in the near term. 
A number of leadership changes were implemented during 
2019 and as we enter 2020 we have a strong Group Manage-
ment team that will lead the company during the next phase of 
development of the company. Three new global  functional units 
have been created for guarding, electronic security and global 
clients to enhance specialization in these areas. 
2019 was the year when we started the execution of a multi-
year journey of strategic transformation. We are now accelerating 
the transformation to build the strongest company and client 
offering for the future. 
Parent Company operations
The Group’s Parent Company, Securitas AB, is not involved in any 
operating activities. Securitas AB consists of Group Management 
and support functions for the Group.
The Parent Company’s income amounted to MSEK 1 449 
(1 196) and mainly relates to license fees and other income from 
subsidiaries.
Financial income and expenses amounted to MSEK 2 209 
(2 269). Income before taxes amounted to MSEK 2 553 (2 558).
Income before taxes includes dividends from subsidiaries of 
MSEK 1 980 (1 593), interest income of MSEK 612 (659), inte-
rest expense of MSEK -443 (-418) and other financial income 
and expenses, net, of MSEK 60 (435). For further information, 
refer to note 48. 
Net income was MSEK 2 364 (2 269).
Cash flow for the year amounted to MSEK 270 (-617).
The Parent Company’s non-current assets amounted to 
MSEK 46 157 (43 506) and mainly comprise shares in subsidia-
ries of MSEK 43 911 (41 332). Current assets amounted to 
MSEK 5 944 (7 329) of which liquid funds amounted to 
MSEK 1 596 (1 326).
Shareholders’ equity amounted to MSEK 29 276 (28 499). A 
dividend of MSEK 1 606 (1 460) was paid to the shareholders in 
May 2019.
The Parent Company’s liabilities and untaxed reserves amoun-
ted to MSEK 22 825 (22 336) and mainly consist of interest-
bearing debt.
For further information, refer to the Parent Company’s financial 
statements and the accompanying notes and comments.
Proposed guidelines for remuneration  
to senior management in Securitas for 2020
Scope
The Board of Directors proposes that the Annual General Mee-
ting on May 7, 2020 adopts the following guidelines for remune-
ration to the individuals who are included in the Group Manage-
ment of Securitas (the “senior management employees”).
The guidelines shall apply to agreements entered into after 
the Annual General Meeting 2020, and to changes made in exis-
ting agreements after the Annual General Meeting 2020. These 
guidelines do not apply to any remuneration decided or approved 
by the general meeting.
Promotion of Securitas’ business strategy,  
long-term interests and sustainability etc.
In short, Securitas business strategy is to offer protective services 
that integrate all areas of Securitas’ competence. Together with 
the customers, Securitas develop optimal and cost-efficient solu-
tions that are suited for the customers’ needs. This brings added 
value to the customers and results in stronger, more long-term 
customer relationships and improved profitability. In order to att-
ract and keep competent senior management employees, Securi-
tas shall offer a competitive total remuneration that is in line with 
the market conditions on the relevant market for each senior 
management employee. Thereby, the ambition is to ensure that 
Securitas has the best team in the security services industry, 
which is expected to contribute to Securitas’ business strategy 
and long-term interests, including its sustainability. More informa-
tion on Securitas’ business strategy is available on Securitas’ 
website securitas.com, section Our offering – Strategy.
Securitas has implemented share-related incentive plans. 
Every year since 2010, the Annual General Meeting has resolved 
on share related incentive schemes including approximately 
2 600 employees within the Group. The outcome of these incen-
tive schemes relates to how the criteria for awarding variable 
cash remuneration are satisfied and thus they are distinctly linked 
REPORT OF THE BOARD OF DIREC TORS

65
Securitas Annual and Sustainability Report 2019
to Securitas’ business strategy, long-term interests and sustaina-
bility. Furthermore, the Annual General Meeting 2019 resolved 
on a long-term incentive program including the CEO, other mem-
bers of the Group Management and certain other key employees 
(“LTI 2019/2021”) which is intended to work as an alternative 
incentive solution to the aforementioned incentive scheme and 
includes approximately up to 80 employees within Securitas. The 
outcome of LTI 2019/2021 is based on the annual development 
of Securitas’ earnings per share. LTI 2019/2021 is conditional 
upon the participant’s own investment and holding periods of 
several years. The share-related incentive plans have been resol-
ved by the general meeting and are therefore excluded from 
these guidelines. The share-related incentive plans proposed by 
the Board of Directors and submitted to the Annual General Mee-
ting 2020 for approval are excluded for the same reason. 
More information on Securitas’ incentive plans is available on 
Securitas’ website securitas.com, section Corporate Governance 
– Remuneration to Senior Management.
Types of remuneration
The total remuneration to senior management shall consist of a 
fixed basic salary, variable cash remuneration, pension benefits 
and other benefits. Additionally, the general meeting may – irre-
spective of these guidelines – resolve on, among other things, 
share-related or share price-related remuneration.
The fixed basic salary shall be competitive and reflect each 
senior management employee’s responsibility and performance. 
The variable cash remuneration shall amount to a maximum of 
85 percent of the fixed basic salary for the President and CEO 
and a maximum of 60-200 percent of the fixed basic salary for 
other senior management employees.
The senior management employees shall be subject to defi-
ned contribution pension plans for which insurance premiums are 
transferred from the individual’s total cash remuneration and paid 
by the company during the term of employment. In exceptional 
cases, the value of such insurance premiums can instead be paid 
as part of the cash remuneration to a senior management 
employee. Variable cash remuneration shall qualify for pension 
benefits to the extent required by mandatory collective agree-
ment provisions. Insurance premiums may amount to not more 
than 35 percent of the fixed basic salary.
Other benefits, such as company car, life insurance, special 
health insurance or occupational health service shall be provided 
to the extent this is considered customary for senior manage-
ment employees holding equivalent positions on the labor 
market where the senior management employee is active. Premi-
ums and other costs relating to such benefits may amount to not 
more than 15 percent of the fixed basic salary.
For employments governed by rules other than Swedish, pen-
sion benefits and other benefits may be duly adjusted for compli-
ance with mandatory rules or established local practice, taking 
into account, to the extent possible, the overall purpose of these 
guidelines.
Criteria for awarding variable cash remuneration
Variable cash remuneration shall be awarded based on the out-
come of clearly measurable performance-based targets that are 
set as close to the local business as possible and aim for long-
term profitability of Securitas. The performance-based targets 
may for example relate to EBITA, EPS and/or cash flow within 
each senior management employee’s area of responsibility 
(group or division). Furthermore, the performance-based targets 
are intended to contribute to Securitas’ business strategy and 
long-term interests, including its sustainability, by, among other 
things, promoting the senior management employee’s long-term 
development within Securitas and reconciling the shareholders’ 
interests with the employee’s interests.
The Remuneration Committee shall, for the Board of Direc-
tors, prepare, monitor and evaluate matters regarding variable 
cash remuneration to the senior management. Ahead of each 
measurement period for the criteria for awarding variable cash 
remuneration, which can be one or several years, the Board of 
Directors shall, based on the work of the Remuneration Commit-
tee, establish which criteria that are deemed to be relevant for 
the upcoming measurement period. After a measurement period 
has ended, it shall be determined to which extent the criteria 
have been satisfied. Evaluations regarding fulfilment of financial 
targets shall be based on established financial information for the 
relevant period.
Variable cash remuneration can be paid after the measure-
ment period has ended or be subject to deferred payment. If pay-
ment of variable cash remuneration has been effected on 
grounds later proven to be obviously inaccurate, Securitas shall, 
to the extent legally possible, have the possibility to reclaim such 
paid remuneration.
Termination of employment
At dismissal, the notice period for senior management employ-
ees shall not exceed twelve months, with a right to redundancy 
payment equivalent to a maximum of 100 percent of the fixed 
basic salary for a period not exceeding twelve months after the 
end of the notice period. At resignation by a senior management 
employee, the notice period shall amount to a maximum of six 
months without a right to redundancy payment.
Additionally, remuneration may be paid for non-compete and 
non-solicitation undertakings in accordance with mandatory rules 
or established local practice. The remuneration shall be based on 
the fixed cash salary at the time of termination of employment 
and be paid during the time the non-compete or the non-solicita-
tion undertaking applies, however not for more than 24 months 
following termination of employment.
Salary and employment conditions for employees
In the preparation of the Board of Directors’ proposal for these 
guidelines, salary and employment conditions for employees of 
the company have been taken into account by including informa-
tion on the employees’ total income, the components of the 
remuneration and increase and growth rate over time, in the 
Remuneration Committee’s and the Board of Directors’ basis of 
decision when evaluating whether the guidelines and the limita-
tions set out herein are reasonable.
The decision-making process to determine,  
review and implement the guidelines
The Remuneration Committee’s tasks include preparing the 
Board of Directors’ decision to propose guidelines for remunera-
tion to the senior management. The Board of Directors shall pre-
pare a proposal for new guidelines at least every fourth year and 
submit it to the general meeting. The guidelines shall be in force 
until new guidelines are adopted by the general meeting. The 
REPORT OF THE BOARD OF DIREC TORS

66
Securitas Annual and Sustainability Report 2019
Remuneration Committee shall also monitor and evaluate pro-
grams for variable remuneration for the senior management, the 
application of the guidelines for remuneration to senior manage-
ment as well as the current remuneration structures and compen-
sation levels in Securitas. The members of the Remuneration 
Committee are independent of the company and its senior mana-
gement. The CEO and other members of the senior management 
do not participate in the Board of Directors’ processing of and 
resolutions regarding remuneration-related matters in so far as 
they are affected by such matters.
Deviation from the guidelines
The Board may temporarily resolve to deviate from the guideli-
nes, in whole or in part, if in a specific case there is special cause 
for the deviation and a deviation is necessary to serve Securitas 
long-term interests, including its sustainability, or to ensure Secu-
ritas financial viability. As set out above, the Remuneration 
Committee’s tasks include preparing the Board of Directors’ reso-
lutions in remuneration-related matters. This includes any resolu-
tions to deviate from the guidelines.
Transitional provisions applicable  
for the Annual General Meeting 2020
The cost of the company for 2020 in terms of its obligations to 
pay variable cash remuneration to the senior management is esti-
mated to not exceed a total of MSEK 108 at maximum outcome 
(not including potential costs for the LTI 2020/2022). Informa-
tion on previously decided remuneration which has not yet been 
paid can be found in note 9 of the Annual Report for 2019.
Proposed allocation of earnings
The statements of income and the balance sheets of the Parent 
Company and the Group are subject to adoption by the Annual 
General Meeting on May 7, 2020.
Retained earnings in the Parent Company available for  
distribution:
 
SEK 
Hedging reserve
62 929 344
Retained earnings 
19 112 119 658
Net income for the year1
2 363 769 683
Total
21 538 818 685
1 Includes Group contributions to subsidiaries of SEK 212 383 807.
The Board of Directors proposed that the earnings are allocated 
as follows: 
 
SEK 
a dividend to the shareholders of  
SEK 4.80 per share
1 751 682 706
retained earnings to be carried forward
19 787 135 979
Total
21 538 818 685
The dividend amount and retained earnings to be carried forward 
are calculated on the number of shares outstanding as per Febru-
ary 6, 2020. No dividend is payable on Securitas AB’s holding of 
treasury shares, the exact number of which is determined on the 
record date for payment of dividend. Securitas AB held 125 000 
treasury shares as per February 6, 2020.
Proposal on record date for dividend
As record date for dividend, the Board has proposed May 11, 
2020. If the Annual General Meeting so resolves, the dividend is 
expected to be distributed by Euroclear Sweden AB starting May 
14, 2020.
Proposed authorization to acquire  
the Company’s own shares
The Board has further proposed that the 2020 Annual General 
Meeting should authorize the Board to, on one or several occa-
sions during the time up to the Annual General Meeting in 2021, 
REPORT OF THE BOARD OF DIREC TORS

67
Securitas Annual and Sustainability Report 2019
decide on the acquisition of the Company’s own shares. The pro-
posal entails that the Board may decide on acquisitions so that 
the maximum number of shares held by the Company at each 
point in time does not exceed ten (10) percent of all shares in the 
Company. 
The Board’s statements on the proposed  
dividend and the proposed authorization  
to acquire the Company’s own shares
The Board has issued the following statements regarding propo-
sed allocation of earnings and proposed authorization to acquire 
the Company’s own shares pursuant to Chapter 18, Section 4 
and Chapter 19, Section 22 of the Swedish Companies Act.
The Company’s unappropriated earnings as per December 31, 
2019 amount to SEK 19 175 049 002. The net income for the 
year amounts to SEK 2 363 769 683 of which SEK 212 383 807 
is related to Group contributions to subsidiaries and  
SEK -4 970  195 is the result of financial instruments being  
valued pursuant to Chapter 4, Section 14a of the Swedish Annual 
Accounts Act.
The Company’s equity would have been SEK 58 063 526 
lower as per December 31, 2019, if financial instruments, having 
been valued at fair value pursuant to Chapter 4, Section 14a of 
the Swedish Annual Accounts Act, had instead been valued at 
the lower of cost or market.
At the disposal of the Annual General Meeting is thereby a 
total amount of SEK 21 538 818 685 in unappropriated earnings 
before the decision on dividend for 2019.
Provided that the 2020 Annual General Meeting resolves to 
allocate the earnings in accordance with the Board’s proposal, 
SEK 19 787 135 979 will be carried forward. Hence, there will 
be full coverage for the Company’s restricted equity after distribu-
tion of the proposed dividend, Group contributions and authori-
zation to acquire the Company’s own shares.
In view of the proposed dividend and authorization to acquire 
the Company’s own shares, the Board has considered the 
Company’s and the Group’s consolidation requirements and liqui-
dity through a comprehensive assessment of the financial posi-
tion of the Company and the Group, as well as the possibilities of 
the Company and the Group to discharge its obligations in the 
long term. The proposed dividend, the Group contributions to 
subsidiaries and the proposed authorization to acquire the 
Company’s own shares does not jeopardize the Company’s ability 
to make the investments that have been deemed necessary. The 
Company’s financial position does not give rise to any other 
assessment than that the Company can continue its operations 
and that the Company is expected to comply with its obligations 
in a short as well as long term perspective. In addition to the 
assessment of the Company’s consolidation requirements and 
liquidity, the Board has also taken into consideration all other 
known circumstances that may impact the Company’s financial 
position.
With reference to the above, the Board makes the assessment 
that the proposed dividend, the Group contributions and the pro-
posed authorization to acquire the Company’s own shares are 
justifiable considering the requirements that the nature, scope 
and risks of the operations pose on the size of the Company’s 
and the Group’s equity as well as the Company’s and the Group’s 
consolidation requirements, liquidity and position in general.
As regards the Company’s and the Group’s result and position 
in general, refer to the statements of income, statements of com-
prehensive income, balance sheets and statements of cash flow 
as well as notes and comments. The Board will continue to 
assess further the financial position and liquidity up to the deci-
sion on the Annual General Meeting.
REPORT OF THE BOARD OF DIREC TORS

68
Securitas Annual and Sustainability Report 2019
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of income 
MSEK
 Note
2019
2018
Sales
109 560
99 707
Sales, acquired business
1 339
1 760
Total sales
6, 10
110 899
101 467
Production expenses
11, 12, 13
-91 588
-83 570
Gross income
19 311
17 897
Selling and administrative expenses
11, 12, 13
-13 637
-12 654
Other operating income
6
34
30
Share in income of associated companies
22
30
31
Amortization of acquisition related intangible assets
18
-271
-260
Acquisition related costs
11
-62
-120
Items affecting comparability
11
-209
-455
Operating income
11
5 196
4 469
Financial income
14
67
85
Financial expenses
14
-645
-526
Income before taxes
4 618
4 028
Taxes
15
-1 256
-1 007
Net income for the year
3 362
3 021
Whereof attributable to:
Equity holders of the Parent Company
3 357
3 016
Non-controlling interests
5
5
Average number of shares before and after dilution
364 993 486
365 058 897
Earnings per share before and after dilution (SEK)
3
9.20
8.26
Earnings per share before and after dilution and before items affecting comparability (SEK)
3
9.61
9.17
Consolidated statement of comprehensive income 
MSEK
Note
2019
2018
Net income for the year
3 362
3 021
Other comprehensive income
Items that will not be reclassified to the statement of income
Remeasurements of defined benefit pension plans net of tax
32
31
-72
Total items that will not be reclassified to the statement of income
31
-72
Items that subsequently may be reclassified to the statement of income
Remeasurement for hyperinflation net of tax
40
79
314
Cash flow hedges net of tax
7
36
63
Cost of hedging net of tax
7
12
-44
Net investment hedges net of tax
-346
-381
Other comprehensive income from associated companies, translation differences 
14
19
Translation differences 
405
668
Total items that subsequently may be reclassified to the statement of income 
200
639
Other comprehensive income
15
231
567
Total comprehensive income for the year
3 593
3 588
Whereof attributable to:
Equity holders of the Parent Company
3 587
3 583
Non-controlling interests
6
5

69
Securitas Annual and Sustainability Report 2019
CONSOLIDATED FINANCIAL STATEMENTS
Securitas’ financial model – consolidated statement of income
Supplementary information
MSEK
2019
2018
Sales
109 560
99 707
Sales, acquired business
1 339
1 760
Total sales
110 899
101 467
Organic sales growth, %
4
6
Production expenses
-91 588
-83 570
Gross income
19 311
17 897
Gross margin, %
17.4
17.6
Expenses for branch offices
-5 621
-5 428
Other selling and administrative expenses
-8 016
-7 226
Total expenses
-13 637
-12 654
Other operating income
34
30
Share in income of associated companies
30
31
Operating income before amortization
5 738
5 304
Operating margin, %
5.2
5.2
Amortization of acquisition related intangible assets
-271
-260
Acquisition related costs
-62
-120
Items affecting comparability
-209
-455
Operating income after amortization
5 196
4 469
Financial income and expenses
-578
-441
Income before taxes
4 618
4 028
Net margin, %
4.2
4.0
Taxes
-1 256
-1 007
Net income for the year
3 362
3 021
  Operating items. 
  Net debt-related items. 
  Goodwill, taxes and non-operating items. 
  Items related to shareholders’ equity.
	
	
	
Securitas’ financial model is described on pages 54–55.

70
Securitas Annual and Sustainability Report 2019
Consolidated statement of cash flow	
 
 
MSEK
Note
2019
2018
Operations
Operating income
5 196
4 469
Adjustment for effect on cash flow from items affecting comparability
11
-94
338
Adjustment for effect on cash flow from acquisition related costs
11
-18
23
Reversal of depreciation
18, 19, 20, 21
2 961
1 953
Financial items received
42
59
Financial items paid
-633
-491
Current taxes paid
-1 191
-856
Change in accounts receivable
-239
-1 575
Change in other operating capital employed
-277
-62
Cash flow from operations
5 747
3 858
Investing activities
Investments in non-current tangible and intangible assets
-2 040
-2 188
Acquisitions and divestitures of subsidiaries
16
-494
-1 658
Cash flow from investing activities
-2 534
-3 846
Financing activities
Dividend paid to shareholders of the Parent Company
-1 606
-1 460
Proceeds from bond loans
31, 34
1 445
3 004
Redemption of bond loans
31, 34
-792
-3 480
Proceeds from commercial paper
5 098
2 500
Redemption of commercial paper
-5 300
-1 550
Change in other interest-bearing net debt excluding liquid funds
20
-1 366
610
Cash flow from financing activities
7
-2 521
-376
Cash flow for the year
692
-364
Liquid funds at beginning of year
3 229
3 611
Translation differences on liquid funds
27
-18
Liquid funds at year-end
7, 29
3 948
3 229
CONSOLIDATED FINANCIAL STATEMENTS

71
Securitas Annual and Sustainability Report 2019
CONSOLIDATED FINANCIAL STATEMENTS
Securitas’ financial model – consolidated statement of cash flow
Supplementary information
MSEK
2019
2018
Operating income before amortization
5 738
5 304
Investments in non-current tangible and intangible assets
-3 010
-2 188
Reversal of depreciation
2 690
1 693
Net investments in non-current tangible and intangible assets
-320
-495
Change in accounts receivable
-239
-1 575
Change in other operating capital employed
-277
-62
Cash flow from operating activities
4 902
3 172
Cash flow from operating activities as % of operating income before amortization
85
60
Financial income and expenses paid
-443
-432
Current taxes paid
-1 191
-856
Free cash flow
3 268
1 884
Free cash flow as % of adjusted income
83
48
Acquisitions and divestitures of subsidiaries
-494
-1 658
Acquisition related costs paid
-80
-97
Cash flow from items affecting comparability
-303
-117
Cash flow from financing activities
-1 699
-376
Cash flow for the year
692
-364
  Operating items. 
  Net debt-related items. 
  Goodwill, taxes and non-operating items.
Securitas’ financial model is described on pages 54–55.

72
Securitas Annual and Sustainability Report 2019
Consolidated balance sheet 
 
MSEK
Note
2019
2018
ASSETS
Non-current assets
Goodwill
17
22 157
21 061
Acquisition related intangible assets
18
1 563
1 458
Other intangible assets
6, 19
1 813
1 450
Right-of-use assets1
20
3 489
222
Buildings and land1
21
254
297
Machinery and equipment1
21
3 292
3 235
Shares in associated companies
22
320
452
Deferred tax assets
15
918
961
Interest-bearing financial non-current assets
23
437
499
Other long-term receivables
24
881
783
Total non-current assets
35 124
30 418
Current assets
Inventories
25
508
460
Accounts receivable
26
16 120
15 604
Current tax assets
15
922
581
Other current receivables
27
5 434
5 056
Other interest-bearing current assets
28
134
121
Liquid funds
29
3 948
3 229
Total current assets
27 066
25 051
TOTAL ASSETS
62 190
55 469
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity
Share capital
365
365
Other capital contributed
7 363
7 363
Other reserves
-206
-326
Retained earnings
12 047
10 230
Shareholders’ equity attributable to equity holders of the Parent Company
19 569
17 632
Non-controlling interests
30
25
Total shareholders’ equity
30
19 599
17 657
Long-term liabilities
Long-term lease liabilities
31
2 610
116
Other long-term loan liabilities
31
17 216
15 858
Other long-term liabilities
31
361
336
Provisions for pensions and similar commitments
32
1 141
1 116
Deferred tax liabilities
15
624
571
Other long-term provisions
33
719
840
Total long-term liabilities
22 671
18 837
Current liabilities
Current lease liabilities
34
944
106
Other short-term loan liabilities
34
1 290
2 282
Accounts payable
2 001
1 833
Current tax liabilities
15
1 621
1 362
Other current liabilities
35
12 936
12 028
Short-term provisions
36
1 128
1 364
Total current liabilities
19 920
18 975
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
62 190
55 469
1 Finance leases according to IAS 17 were in 2018 included in buildings and land as well as in machinery and equipment. In this Annual Report, they have been reclassified to right-of-use assets.  
For further information regarding right-of-use assets, refer to note 20 and 41. 
CONSOLIDATED FINANCIAL STATEMENTS

73
Securitas Annual and Sustainability Report 2019
Securitas’ financial model – consolidated capital employed and financing
Supplementary information
MSEK
2019
2018
Operating capital employed
Other intangible assets
1 813
1 450
Right-of-use assets1
3 489
222
Buildings and land1
254
297
Machinery and equipment1
3 292
3 235
Deferred tax assets
918
961
Other long-term receivables
881
783
Inventories
508
460
Accounts receivable
16 120
15 604
Current tax assets
922
581
Other current receivables
5 434
5 056
Total assets
33 631
28 649
Other long-term liabilities
361
336
Provisions for pensions and similar commitments
1 141
1 116
Deferred tax liabilities
624
571
Other long-term provisions
719
840
Accounts payable
2 001
1 833
Current tax liabilities
1 621
1 362
Other current liabilities
12 936
12 028
Short-term provisions
1 128
1 364
Total liabilities
20 531
19 450
Total operating capital employed
13 100
9 199
Goodwill
22 157
21 061
Acquisition related intangible assets
1 563
1 458
Shares in associated companies
320
452
Total capital employed
37 140
32 170
Operating capital employed as % of sales
12
9
Return on capital employed, %
15
15
Net debt
Interest-bearing financial non-current assets
437
499
Other interest-bearing current assets
134
121
Liquid funds
3 948
3 229
Total interest-bearing assets
4 519
3 849
Long-term lease liabilities
2 610
116
Other long-term loan liabilities
17 216
15 858
Current lease liabilities
944
106
Other short-term loan liabilities
1 290
2 282
Total interest-bearing liabilities
22 060
18 362
Total net debt
17 541
14 513
Net debt equity ratio, multiple
0.89
0.82
Shareholders’ equity
Share capital
365
365
Other capital contributed
7 363
7 363
Other reserves
-206
-326
Retained earnings
12 047
10 230
Non-controlling interests
30
25
Total shareholders’ equity
19 599
17 657
Total financing
37 140
32 170
  Operating items. 
  Net debt-related items. 
  Goodwill and non-operating items. 
  Items related to shareholders’ equity.
	
	
	
Securitas’ financial model is described on pages 54–55.
1 Finance leases according to IAS 17 was in 2018 included in buildings and land as well as in machinery and equipment. For further information regarding right-of-use assets, refer to note 20 and 41. 
CONSOLIDATED FINANCIAL STATEMENTS

74
Securitas Annual and Sustainability Report 2019
MSEK
Share
capital
Other 
capital
contributed
Hedging
reserve
Translation
reserve
Retained
earnings
Total
Non- 
controlling
interests1
Total
share-
holders’
equity
Opening balance 2018
365
7 363
-4
-647
8 441
15 518
21
15 539
Net income for the year
–
–
–
–
3 016
3 016
5
3 021
Other comprehensive income
Items that will not be reclassified to the statement of income
Remeasurements of defined benefit pension plans net of tax
–
–
–
–
-72
-72
–
-72
Total items that will not be reclassified to the statement of income
–
–
–
–
-72
-72
–
-72
Items that subsequently may be reclassified to the statement of income
Remeasurement for hyperinflation net of tax2
–
–
–
–
314
314
–
314
Cash flow hedges net of tax3
–
–
63
–
–
63
–
63
Cost of hedging net of tax
–
–
-44
–
–
-44
–
-44
Net investment hedges net of tax4
–
–
–
-381
–
-381
–
-381
Other comprehensive income from associated companies, 
translation differences
–
–
–
19
–
19
–
19
Translation differences
–
–
–
668
–
668
0
668
Total items that subsequently may be  
reclassified to the statement of income
–
–
19
306
314
639
0
639
Other comprehensive income
–
–
19
306
242
567
0
567
Total comprehensive income for the year
–
–
19
306
3 258
3 583
5
3 588
Transactions with non-controlling interests1
–
–
–
–
-2
-2
-1
-3
Share-based incentive schemes1
–
–
–
–
-7
-7
–
-7
Dividend paid to shareholders of the Parent Company
–
–
–
–
-1 460
-1 460
–
-1 460
Closing balance 2018
365
7 363
15
-341
10 230
17 632
25
17 657
Opening balance 2019
365
7 363
15
-341
10 230
17 632
25
17 657
Net income for the year
–
–
–
–
3 357
3 357
5
3 362
Other comprehensive income
Items that will not be reclassified to the statement of income
Remeasurements of defined benefit pension plans net of tax
–
–
–
–
31
31
–
31
Total items that will not be reclassified to the statement of income
–
–
–
–
31
31
–
31
Items that subsequently may be reclassified to the statement of income
Remeasurement for hyperinflation net of tax2
–
–
–
–
79
79
–
79
Cash flow hedges net of tax3
–
–
36
–
–
36
–
36
Cost of hedging net of tax
–
–
12
–
–
12
–
12
Net investment hedges net of tax4
–
–
–
-346
–
-346
–
-346
Other comprehensive income from associated companies, 
translation differences
–
–
–
14
–
14
–
14
Translation differences
–
–
–
404
–
404
1
405
Total items that subsequently may be  
reclassified to the statement of income
–
–
48
72
79
199
1
200
Other comprehensive income
–
–
48
72
110
230
1
231
Total comprehensive income for the year
–
–
48
72
3 467
3 587
6
3 593
Transactions with non-controlling interests1
–
–
–
–
–
–
-1
-1
Share-based incentive schemes1
–
–
–
–
-44
-44
–
-44
Dividend paid to shareholders of the Parent Company
–
–
–
–
-1 606
-1 606
–
-1 606
Closing balance 2019
365
7 363
63
-269
12 047
19 569
30
19 599
1 Further information is provided in note 30.
2 Further information is provided in note 40.
3 Specification can be found in note 7, in the table revaluation of financial instruments,  
as well as in note 15.
4 For tax amount see note 15.
Shareholders’ equity attributable to equity holders of the Parent Company1
Consolidated statement of  
changes in shareholders’ equity	
CONSOLIDATED FINANCIAL STATEMENTS

75
Securitas Annual and Sustainability Report 2019
  NOTE 1    General corporate information
Operations 
Securitas serves a wide range of clients of all sizes in a variety of industries 
and client segments. Security solutions based on client-specific needs are 
built through different combinations of on-site, mobile and remote guard-
ing, electronic security, fire and safety and corporate risk management. 
Securitas operates in North America, Europe, Latin America, Africa, the 
Middle East, Asia and Australia and employs 370 000 employees in 56 
countries.
Information regarding Securitas AB
Securitas AB, corporate registration number 556302-7241, is a Swedish 
public company and has its registered office in Stockholm, Sweden.  
The address of the head office is:
Securitas AB
Lindhagensplan 70
SE-102 28 Stockholm
Sweden
Securitas AB is listed on Nasdaq Stockholm on the Large Cap List. The 
Securitas share is included in for example the OMX Stockholm Price Index 
and the OMX Stockholm 30 Index. Securitas has been listed on the stock 
exchange since 1991.
Information regarding the Annual Report  
and the consolidated financial statements
This Annual Report including the consolidated financial statements was 
signed by the Board of Directors and the President and CEO of Securitas 
AB and also approved for publication on March 18, 2020.
The statements of income and balance sheets for the Parent Company 
and the consolidated financial statements for the Group included in the 
Annual Report are subject to adoption by the Annual General Meeting on 
May 7, 2020.
  NOTE 2    Accounting principles
Basis of preparation
Securitas’ consolidated financial statements are prepared in accordance 
with International Financial Reporting Standards (IFRS) as endorsed 
by the European Union (EU), the Swedish Annual Accounts Act and the 
Swedish Financial Reporting Board’s standard RFR 1 Supplementary 
Accounting Rules for Groups. The consolidated financial statements 
have been prepared in accordance with the historical cost convention 
method except where a fair value measurement is required according to 
IFRS. Examples of assets and liabilities measured at fair value are financial 
assets or financial liabilities (including derivatives) at fair value through 
profit or loss and plan assets related to defined benefit pension plans.
Estimates and judgments 	
NOTE 4
The preparation of financial reports requires the Board of Directors and 
Group Management to make estimates and judgments. Estimates and 
judgments will impact both the statement of income and the balance sheet 
as well as disclosures such as contingent liabilities. Actual outcome may 
differ from these judgments under different assumptions or conditions. 
Notes
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
Adoption and impact of new and revised IFRS for 2019
IFRS 16 Leases came into force on January 1, 2019 and has been 
adopted by Securitas as of that date. Securitas has adopted IFRS 16 by 
recognizing the cumulative effect of the application on January 1, 2019 
without restatement of the comparative periods. For further information 
regarding Securitas adoption and impact of IFRS 16, refer to the section 
Leases below as well as to note 41.
Amendments to IAS 19 Employee Benefits came into force on January 
1, 2019 and has been adopted by Securitas as of that date. The amend-
ments clarify the accounting for defined benefit plan amendments, 
curtailments and settlements. They are not assessed to have any material 
impact on the Group’s financial statements.
None of the other published standards and interpretations that are 
mandatory for the Group’s financial year 2019 have had any impact on the 
Group’s financial statements.
Introduction and effect of new and revised 
IFRS that are effective as from 2020
Securitas has chosen to early-adopt the amendments to IFRS 9 Financial 
instruments related to hedge accounting, which came into effect as of 
January 1, 2020. The purpose of the amendments is to reduce the effects 
on hedge accounting following the IBOR-reform and they should be 
applied to all hedge relationships that are directly affected by the IBOR-
reform. The amendments are assessed to have no impact on the Group’s 
financial statements. 
None of the other published standards and interpretations that are 
mandatory for the Group’s financial year 2020 are assessed to have any 
impact on the Group’s financial statements.
Introduction and effect of new and revised IFRS 
that are effective as from 2021 and onwards
The effect on the Group’s financial statements from standards and inter-
pretations that are mandatory for the Group’s financial year 2021 or later 
remain to be assessed.
The acquisition method (IFRS 3)	
NOTE 11, 16, 17 AND 18
The acquisition method is used to account for the acquisitions of sub-
sidiaries and operations by the Group. All payments to acquire a busi-
ness are recorded at fair value at the acquisition date, with contingent 
considerations and acquisition related option liabilities classified as debt 
subsequently remeasured through the statement of income. The Group 
chooses on an acquisition-by-acquisition basis to measure the non-
controlling interest in the acquiree at fair value or at the non-controlling 
interest’s proportionate share of the acquiree’s net assets. All acquisition 
related transaction costs are expensed. These costs are in the Group 
accounted for on a line in the statement of income named acquisition 
related costs. Costs accounted for on this line are transaction costs, 
revaluation (including discounting) of contingent considerations and 
acquisition related option liabilities, revaluation to fair value of previously 
acquired shares in step acquisitions and acquisition related restructuring 
and integration costs. 
The excess of the cost of acquisition over the fair value of the Group’s 
share of the identifiable net assets acquired is recorded as goodwill. If the 
cost of acquisition is less than the fair value of the net assets of the sub-
sidiary acquired, the difference is recognized directly in the consolidated 
statement of income. 
Scope of the consolidated financial  
statements (IFRS 10 and IFRS 12)	
NOTE 16 AND 52
The consolidated financial statements relate to the Parent Company 
Securitas AB and all subsidiaries. Subsidiaries are all companies where 
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

76
Securitas Annual and Sustainability Report 2019
the Group has control, which is the case where the Group is exposed, or 
has rights, to variable returns from its involvement with the company and 
has the ability to affect those returns through its power over the company.
The consolidated financial statements include companies acquired 
with effect from the date that the Group obtains control. Companies 
divested are excluded with effect from the date that the Group ceases  
to have control. 
Pricing of deliveries among Group companies is based on normal 
business principles. Intercompany transactions, balances and unrealized 
gains and losses between Group companies are eliminated. 
Non-controlling interests (IFRS 3 and IFRS 10)	
NOTE 30
The Group treats transactions with non-controlling interests as transac-
tions with equity owners of the Group. For acquisitions from non-controlling 
interests, the difference between any consideration paid and the relevant 
share acquired of the carrying value of net assets of the subsidiary is 
recorded in equity on the line transactions with non-controlling interests 
in the consolidated statement of changes in shareholders’ equity. Gains or 
losses on disposals to non-controlling interests are also recorded in equity 
on the same line. 
The principle to treat transactions with non-controlling interests as 
transactions with equity owners of the Group is also applied to the valu-
ation of options relating to non-controlling interests. This means that at 
both initial recognition and for any subsequent revaluation, according to 
the economic entity model, the transactions are recognized in equity as 
transactions with non-controlling interests.
Investments in associates (IAS 28)	
NOTE 22 AND 53
Associates are entities in which Securitas can exert a significant influence, 
generally accompanying a shareholding of between 20 percent and  
50 percent of the voting rights. The equity method is used to account for 
these shareholdings. All payments to acquire a business are recorded 
at fair value on the acquisition date, with contingent considerations and 
acquisition related option liabilities classified as debt subsequently  
remeasured through the statement of income. All acquisition related 
transaction costs are expensed. 
Share in income of associates is recognized in the consolidated state-
ment of income. Depending on the purpose of the investment, share in 
income of associates is included either in operating income, if it is related 
to associates that have been acquired to contribute to the operations, or 
in income before taxes as a separate line within net financial items, if it is 
related to associates that have been acquired as part of the financing of 
the Group. In both cases the share in income of associates are net of  
tax. All associates in the Group are currently classified as operational 
associates. 
In the consolidated balance sheet, investments in associates are stated 
at cost including the cost of the acquisition that is attributed to goodwill 
and other acquisition related intangible assets, adjusted for dividends and 
the share of income after the acquisition date. Investments in associates 
are also adjusted for translation differences of foreign investments to the 
exchange rate prevailing on the last day of the month. The translation 
­differences are posted directly to other comprehensive income and thus 
do not affect net income for the year.
The consolidated financial statements include associates with effect 
from the date of the acquisition. Associates divested are excluded with 
effect from the divestment date. 
Transactions, balances and unrealized gains and losses between  
the Group and its associates are eliminated to the extent of the Group’s 
interest in the associate. 
Translation of foreign subsidiaries (IAS 21)	
NOTE 30
The functional currency of each Group company, that is the currency in 
which the company primarily generates and expends cash, is determined 
by the primary economic environment in which the company operates. 
The functional currency of the Parent Company and the presentation  
currency of the Group, that is the currency in which the financial statements 
are presented, is Swedish kronor (SEK).
When translating the financial statements of each foreign subsidiary, 
each month’s statement of income is translated using the exchange rate 
prevailing on the last day of the month. This means that income for each 
month is not affected by foreign exchange fluctuations during subsequent 
periods. Balance sheets are translated using exchange rates prevailing at 
each balance sheet date. Translation differences arising in the conversion 
of balance sheets are posted directly to other comprehensive income and 
thus do not affect net income for the year. The translation difference arising 
because statements of income are translated using average rates, while 
balance sheets are translated using exchange rates prevailing at each  
balance sheet date, is posted directly to other comprehensive income. 
Where loans have been raised to reduce the Group’s foreign exchange /  
translation exposure in foreign net assets, and qualify for the hedge 
accounting criteria, exchange rate differences on such loans are recognized 
together with the exchange rate differences arising from the translation of 
foreign net assets in other comprehensive income. 
The accumulated translation differences are accounted for in transla-
tion reserve in equity. When a foreign operation or part thereof is sold, such 
exchange differences are recognized in the statement of income as part of 
the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a 
foreign entity are treated as assets and liabilities of the foreign entity and 
translated using exchange rates prevailing at each balance sheet date.
Remeasurement for hyperinflation (IAS 29)	
NOTE 40
The Group´s subsidiaries in countries that according to IAS 29 are classi-
fied as hyperinflationary economies are accounted for in the Group´s 
financial statements after remeasurement for hyperinflation. IAS 29 has 
been adopted for Securitas’ operations in Argentina as from July 1, 2018. 
This includes the subsidiaries with functional currency in ARS as well as 
consolidated goodwill that is consolidated into SEK from ARS. 
The balance sheet items not already expressed in terms of the 
measuring unit current as of July 1, 2018 have been remeasured by 
applying a general price index. Due to the lack of one index covering the 
whole period for which remeasurement is needed, Securitas has used 
the consumer price index, National congress price index or the Internal 
Price Index related with Commercial/Production of Products. Securitas 
believes that this gives a reasonable level of accuracy. The base period 
for the index is January 2003. The financial statements subject to remea-
surement are based on the historical cost approach.
The initial remeasurement of all relevant balance sheet items has been 
recognized as part of other comprehensive income on the line Remea-
surement for hyperinflation net of tax. Where relevant, deferred tax has 
been considered. Subsequent measurement of the consolidated goodwill 
balance as of December 31, 2018 is also recognized as part of other com-
prehensive income. This is based on the fact that goodwill would be offset 
in equity if pushed down to subsidiary level. Also, it does not contribute to 
any changes in the net monetary position of the subsidiary. Subsequent 
remeasurement of the balances on subsidiary level is part of the net 
monetary gain or loss recognized in the statement of income as part of 
financial income and expenses. 
After remeasurement of the financial statements, including both the 
statement of income and the balance sheet for the operations in Argen-
tina, they have been translated at the closing rate as of the most recent 
balance sheet date each quarter. For the income statement this applies to 
the period July 1 to December 31, 2018, and all subsequent periods.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

77
Securitas Annual and Sustainability Report 2019
Transactions, receivables and  
liabilities in foreign currency (IAS 21)	
NOTE 11 AND 14
Transactions in foreign currency are translated into the functional cur-
rency in accordance with the exchange rates prevailing at the date of the 
transaction. Exchange differences on monetary items are recognized in 
the statement of income when they arise, with the exception of net invest-
ment hedges recognized via other comprehensive income (see above 
under the section Translation of foreign subsidiaries). Exchange differ-
ences from operating items are recognized as either production expenses 
or selling and administrative expenses, while exchange differences from 
financial items are recognized as financial income or financial expenses.
When preparing the financial statements of individual companies,  
foreign currency denominated receivables and liabilities are translated 
to the functional currency of the individual company using the exchange 
rates prevailing at each balance sheet date.
Revenue recognition (IFRS 15)	
NOTE 6 AND 46
The Group’s revenue is generated mainly from various types of security 
services, as described below. 
Guarding services comprises on-site and mobile guarding, which is ser-
vices with the same revenue recognition pattern. Revenue is recognized 
over time, as the services are rendered by Securitas and simultaneously 
consumed by the clients. Such services cannot be reperformed. 
Security solutions and electronic security comprise two broad catego-
ries. Security solutions are a combination of services such as on-site and/or 
mobile guarding and/or remote guarding. These services are combined with 
a technology component in terms of equipment owned and managed by 
Securitas and used in the provision of services. The equipment is installed at 
the clients’ site. The revenue recognition pattern is over time, as the services 
are rendered by Securitas and simultaneously consumed by the clients. A 
security solution normally constitutes one performance obligation. 
Electronic security consists of the sale of alarm installations comprising 
design and installation (time, material and related expenses). Revenue 
is recognized as per the contract, either upon completion of the condi-
tions in the contract, or over time based on the percentage of completion. 
Remote guarding (in the form of alarm monitoring services), that is sold 
separately and not as part of a security solution, is also included in this 
category. Revenue recognition is over time as this is also a service that is 
rendered by Securitas and simultaneously consumed by the clients. The 
category further includes maintenance services, that are either performed 
upon request (time and material) with revenue recognition at a point in 
time (when the work has been performed), or over time if part of a service 
level contract with a subscription fee. Finally, there is also a to a limited 
extent product sales (alarms and components) without any design or 
installation. The revenue recognition is at a point in time (upon delivery).
Other comprises mainly corporate risk management services that are 
either recognized over time or at a point in time as well as other ancillary 
business.
Other operating income consists in its entirety of trade mark fees for 
the use of the Securitas brand name.
The segments have the principle of expensing costs to obtain contracts 
as they are incurred. Such costs are capitalized at Group level and amor-
tized over the expected duration of the contract. This effect is accounted 
for under Other in the segment overviews and constitutes a difference 
between the segment’s accounting principles and the Group´s accounting 
principles, reflecting the operating result measure reported to the chief 
operating decision maker.
Costs to fulfil a contract such as salaries and payroll overhead are 
expensed immediately as the services are rendered by Securitas and con-
sumed by the client.  
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
Operating segments (IFRS 8)	
NOTE 10
A combination of factors has been used in order to identify the Group’s 
segments. Most important is the characteristic of the services pro-
vided and the geographical split. The operating segments are regularly 
reviewed by the chief operating decision maker, which is the President 
and CEO. 
The Group’s operations are divided into three reportable segments 
and Other. The reportable segments are also referred to as business 
­segments in the Group’s financial reports. Refer to note 10 for further 
­information regarding the segments.
As of January 1, 2020, Security Services North America comprises 
four business units that constitute the operating segments guarding, 
electronic security, critical infrastructure and Pinkerton Corporate Risk 
Management. Three of the operating segments do not meet the quantita-
tive threshold to be reportable segments under IFRS 8 and since they 
share the aggregation criteria, they are aggregated with the fourth operat-
ing segment into one reportable segment. This means that the disclosure 
level for segments in 2020 will be unchanged compared to previous 
periods.
As described above under Revenue recognition, the segments have 
the principle of expensing costs to obtain contracts as they are incurred. 
Such costs are capitalized at Group level and amortized over the expected 
duration of the contract. This effect is accounted for under Other in the 
segment overviews and constitutes a difference between the segment’s 
accounting principles and the Group´s accounting principles, reflecting 
the operating result measure reported to the chief operating decision 
maker. This is the only difference in principles between the segments and 
the Group.
The assets and liabilities of each segment include only those items 
that have been utilized or arisen in ongoing operations. Non-operational 
balance sheet items, primarily current tax, deferred tax, and provisions 
for taxes, are accounted for under the Other heading in the table Capital 
employed and financing in note 10. In the table Assets and liabilities in 
the same note, these items are accounted for as unallocated non-interest 
bearing assets and unallocated non-interest bearing liabilities. Recon­
ciliation between total segments and the Group is disclosed in note 10.
Geographical information related to sales and non-current assets is 
­disclosed in note 10 for Sweden (which is Securitas’ country of domicile) 
and for all individual countries where the sales or non-current assets 
exceed 10 percent of the total amount for the Group. 
The geographical split of sales is based on the location of the sales.  
The location of the sales corresponds in all material aspects to the location 
of the clients. There are no sales to any individual client that are deemed 
to represent a significant portion of the Group’s total sales.
Accounting for government grants and  
disclosure of government assistance (IAS 20)	
Securitas, like other employers, is eligible for a variety of grants relating 
to employees. These grants relate to training, incentives for hiring new 
staff, reduction of working hours, etc. All grants are accounted for in the 
statement of income as a cost reduction in the same period as the related 
underlying cost.
Acquisition related restructuring  
and integration costs (IAS 37)	
NOTE 11
Acquisition related restructuring costs are costs relating to the restructur-
ing and / or integration of acquired operations into the Group. Restruc-
turing costs can cover several activities that are necessary to prepare 
acquired operations for integration into the Group, such as redundancy 
payments. Integration costs normally cover activities that do not qualify  
to be recognized as provisions. Such activities could be re-branding 
(changing logotypes on buildings, vehicles, uniforms, etc.), but could also 
cover personnel costs, for example training, recruitment, relocation and 
travel, certain client related costs and other incremental costs to trans-
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

78
Securitas Annual and Sustainability Report 2019
form the acquired operation into Securitas’ format. Classifying expenses 
as costs relating to integration of acquired operations must also fulfill the 
criteria below:
•	The cost would not have been incurred if the acquisition not had taken 
place
•	The cost relates to a project identified and controlled by management  
as part of an integration program set up at the time of acquisition or as  
a direct consequence of an immediate post-acquisition review
Items affecting comparability	
NOTE 11
This item includes events and transactions with significant effects, which 
are relevant for understanding the Group’s financial performance when 
comparing income for the current period with previous periods. They 
include capital gains and losses arising from the disposal of material cash 
generating units, material impairment losses and bad debt losses, litiga-
tions and insurance claims and other material income and expense items 
of a non-recurring nature. The latter thus also includes costs for material 
restructuring and transformation programs such as the European cost 
savings program and the transformation programs for further digitization 
of the company initiated during 2018, that will continue over the duration 
of the programs. Tax on items affecting comparability and tax items that in 
themselves constitute items affecting comparability are reported on the 
line taxes in the consolidated statement of income.
Items that are classified as items affecting comparability in a period are 
accounted for consistently in future periods by treating any reversal of 
those items as items affecting comparability.
Taxes (IAS 12)	
NOTE 15 AND 49
Deferred income tax is provided in full, using the liability method, on tem-
porary differences arising between the tax bases of assets and liabilities 
and their carrying amounts in the consolidated financial statements.  
However, if the deferred income tax arises from initial recognition of an 
asset or liability in a transaction other than a business combination that at 
the time of the transaction affects neither accounting nor taxable profit or 
loss, it is not accounted for. Deferred income tax is determined using tax 
rates (and laws) that have been enacted or substantially enacted by the 
balance sheet date and are expected to apply when the related deferred 
income tax asset is realized or the deferred income tax liability is settled.
A deferred tax asset is recognized when it is probable that sufficient 
taxable income will arise that the deferred tax asset can be offset against. 
Deferred tax assets are valued as of the balance sheet date, and any 
potential previously unvalued deferred tax asset is recognized when it is 
expected to be usable, or correspondingly, reduced when it is expected  
to be wholly or partly unusable against future taxable income.
Current tax liabilities include provisions for taxes. Current and deferred 
taxes are posted directly to other comprehensive income if the relevant 
underlying transaction or event is posted directly to other comprehensive 
income in the period, or previous period if it pertains to an adjustment 
of an opening balance of retained earnings as the result of a change in 
accounting principle. Changes in current and deferred taxes that relate 
to exchange rate differences in the translation of the balance sheets of 
foreign subsidiaries are posted to translation differences in other compre-
hensive income.
Provisions are allocated for estimated taxes in the case dividends  
are anticipated and paid from subsidiaries to a Parent Company in the  
following year.
Deferred income tax is provided on temporary differences arising on 
investments in subsidiaries and associates, except where the timing of the 
reversal of the temporary difference is controlled by the Group and  
it is probable that the temporary difference will not be reversed in the 
foreseeable future.
Impairment (IAS 36)	
NOTE 17
The Group’s assets that have an indefinite useful life are not subject to 
amortization and are tested annually for impairment. In addition to good-
will, these assets are limited to the brand name Securitas in one of the 
Group’s countries of operations, where it has been acquired from a third 
party. 
For the purpose of impairment testing, assets are grouped as cash-
generating units (CGU), which corresponds to the  smallest identifiable 
group of assets that generate cash inflows that are largely independent of 
the cash inflows from other assets.
Following the implementation of IFRS 16 Leases as of January 1, 2019 
that was  done on segment level, assets and liabilities for the segments 
are only measured fully on segment level, instead of on country level as 
in previous years. Thus, the segment level is now the lowest level where 
assets and liabilities are accounted for according to IFRS 16. This level 
corresponds to how Securitas evaluates its business in accordance with 
IFRS 8 and IAS 36. The change of level for impairment testing has had no 
effect on recognition or reversal of impairment losses.
Assets that are subject to depreciation or amortization are reviewed 
for impairment whenever events or changes in circumstances indicate 
that the carrying amount may not be recoverable. If this is the case, an 
impairment loss is recognized in the amount by which the asset’s carrying 
amount exceeds its recoverable amount. The recoverable amount is the 
higher of an asset’s fair value less costs to sell and value in use. 
Value in use is measured as expected future discounted cash flows.  
The calculation of value in use is based on assumptions and estimates.  
The main assumptions concern the organic sales growth, the development 
of the operating margin and the necessary operating capital employed 
requirement as well as the relevant WACC (Weighted Average Cost of 
Capital) rate used to discount future cash flows. When determining the 
relevant WACC, Securitas considers that cash flows are generated on local 
level, where the operations are conducted.
Goodwill and other acquisition related intangible  
assets (IFRS 3, IAS 36 and IAS 38)	
NOTE 17 AND 18
Goodwill and other acquisition related intangible assets are grouped at 
the lowest levels for which there are separately identifiable cash flows 
(Cash Generating Unit), that is, per segment. This allocation is also the 
basis for the yearly impairment testing. The Group changed the level of 
impairment testing for goodwill from the country level to the segment 
level as a consequence of adopting IFRS 16 that resulted in that complete 
financial information that is reviewed and used for control is available only 
on the segment level. 
Goodwill is carried at cost less accumulated impairment losses. Other 
acquisition related intangible assets arising from the Group’s acquisitions 
can include various types of intangible assets such as marketing-related, 
client-related, contract-related, brand-related and technology-based 
intangible assets. Other acquisition related intangible assets normally 
have a definite useful life. These assets are recognized at fair value on 
the date of acquisition and subsequently carried at cost less accumulated 
amortization and any accumulated impairment losses. 
Securitas’ acquisition related intangible assets mainly relate to client 
contract portfolios and the related client relationships. The valuation of the 
client contract portfolios and the related client relationships is based on 
the Multiple Excess Earnings Method (MEEM), which is a valuation model 
based on discounted cash flows. The valuation is based on the churn rates 
and profitability of the acquired portfolio at the time of the acquisition. In the 
model a specific charge – a contributory asset charge – is applied as a cost 
or return requirement for the assets supporting the intangible asset. Cash 
flows are discounted using the Weighted Average Cost of Capital (WACC) 
adjusted for local interest rate levels in the countries of acquisition. The 
useful life of client contract portfolios and the related client relationships is 
based on the churn rate of the acquired portfolio and is normally between 
3 and 10 years, corresponding to a yearly amortization of between 10.0 
percent and 33.3 percent. Brand-related intangible assets are calculated 
using the relief of royalty method. The useful life of these brands is nor-
mally between 5 and 10 years, corresponding to a yearly amortization of 
between 10 and 20 percent.
Amortization is calculated using the linear method and disclosed on 
the line amortization and impairment of acquisition related intangible 
assets in the Group’s statement of income.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

79
Securitas Annual and Sustainability Report 2019
A deferred tax liability is calculated, recognized and reversed over the 
same period as the intangible asset is amortized, in order to neutralize the 
impact on the Group’s full tax rate from the acquisition.
Other intangible assets (IAS 36 and IAS 38)	
NOTE 19 AND 50
The Group’s other intangible assets include the trade mark Securitas,  
which is estimated to have an indefinite useful life. The trademark has been 
capitalized only in those cases where it has been acquired from a third 
party. This trademark is not amortized but tested annually for impairment.
All other items in other intangible assets have a definite useful life. 
Amortization is linear and the amortization rates are normally:
Software licenses and similar assets 
10.0–33.3 percent
Other intangible assets 
10.0–33.3 percent
Rental rights and similar rights are amortized over the same period as the 
underlying contractual period.
Tangible non-current assets  
(IAS 16 and IAS 36)	
NOTE 21 AND 51
Securitas applies linear depreciation for tangible non-current assets.  
The depreciation rates are normally:
Machinery and equipment 
10–50 percent
Buildings and land improvements 
2–10 percent
Land 
0 percent
Leases (IFRS 16)	
NOTE 13, 20 AND 41
Securitas’ lease agreements are mainly attributable to buildings and 
vehicles. As from the transition to IFRS 16 on January 1, 2019, they are 
accounted for as right-of-use assets (included in non-current assets) and 
long-term and current lease liabilities in the consolidated balance sheet. 
Right-of-use assets are depreciated over the shorter of the asset’s 
useful life and the lease term on a straight-line basis. In the consolidated 
statement of income, depreciation is accounted for on the lines produc-
tion expenses and selling and administrative expenses. Interest expenses 
are accounted for on the line financial expenses. In the Group’s segment 
overviews, the effects of the adoption of IFRS 16 are accounted for under 
each segment.
The lease liabilities are initially measured at the present value of 
remaining lease payments, discounted by using the incremental borrow-
ing rate for each country. Lease payments are allocated between principal 
and interest expense.
The right-of-use assets are initially measured at an amount equal to the 
lease liabilities. If advance payments have been made, the right-of-use 
assets are adjusted for these payments. Any reassessment of the lease 
liabilities in subsequent periods leads to corresponding adjustments to 
the right-of-use assets. 
Extension clauses are evaluated for each lease agreement and are 
applied based on the best estimate at each closing. They are included in 
the lease period if it is reasonably certain that the lease will be extended. 
 Payments for short-term leases, where the lease term ends within 
12 months of the date of initial application, as well as leases of low-value 
assets, are recognized on a straight-line basis as an expense in the state-
ment of income and thus excluded from the lease liabilities accounted for 
under IFRS 16.
The extent of lease contracts where the Group is the lessor is limited. 
Leases where the Group is a lessor are classified as either finance leases or 
operating leases, depending if they transfer substantially all the risks and 
rewards of the ownership from the lessor. In cases where the Group is the 
lessor of lease contracts classified as operational, revenue is recognized 
on a linear basis over the lease term and included in total sales in the con-
solidated statement of income. Depreciation is recognized under operat-
ing income on a straight-line basis over the assets’ useful life.
Information regarding the impact on the Group from the adoption and 
application of IFRS 16 is disclosed in note 41. For information regarding 
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
the Group´s accounting principles for leases in 2018, refer to the Annual 
Report 2018.
Accounts receivable (IFRS 9)	
NOTE 26
Accounts receivable are accounted for at nominal value net after provisions
for expected bad debt losses. Expected and recognized bad debt losses are
included in the line production expenses in the statement of income. 
Recognized revenue that has not been invoiced as of the balance sheet 
date is classified as accrued sales income (note 27). Contract balances for 
performance obligations not yet satisfied are classified as deferred revenue 
(note 35).
Financial instruments (IFRS 7 / IFRS 9 /  
IFRS 13 / IAS 32 / IAS 39)	
NOTE 7, 14, 23, 28, 31, 34 AND 45
Classification and measurement of financial instruments
The Group classifies financial assets and liabilities as those to be mea-
sured at amortized cost and those to be measured at fair value (either 
through other comprehensive income (OCI) or through the statement 
of income). The classification of financial assets depends on Securitas’ 
business model for managing these  assets and the contractual terms of 
the cash flows. The business model mainly applied by Securitas is hold to 
collect, meaning that financial assets are held to collect contractual cash 
flows. These cash flows solely represent payments of principal and inter-
est (SPPI). The majority of Securitas financial assets are thus measured at 
amortized cost. Financial liabilities, except for derivatives, are measured 
at amortized cost. Derivatives are measured at fair value through profit 
and loss unless hedge accounting is applied.  
Financial instruments with maturities within 12 months after the bal-
ance sheet date are either included in current assets on the line other 
interest-bearing current assets, or in current liabilities on the line other 
short-term loan liabilities. Financial instruments with maturities later than 
12 months after the balance sheet date are either included in non-current 
assets on the line interest-bearing financial non-current assets, or in long-
term liabilities on the line other long-term loan liabilities.
Securitas applies the forward-looking expected credit loss model. The 
most important financial assets subject to this model are accounts receiv-
able, for which the Group applies the simplified approach permitted by 
IFRS 9. This method requires expected lifetime losses to be recognized 
from initial recognition of the receivables. For further information refer to 
note 26.
Financial assets at amortized cost
Assets in this category are measured at amortized cost using the effective 
interest rate method. Most of the Group’s current assets are measured at 
amortized cost, for example assets such as accounts receivable and long-
term and short-term receivables, which are non-derivative financial assets 
with fixed  or determinable payments. They arise when the Group provides 
money, goods or services directly to a debtor with no intention of trading 
the receivable. 
Financial assets at fair value through profit and loss (FVPL)
Assets in this category are measured at fair value. Changes in fair value 
are recognized in the statement of income as they arise unless hedge 
accounting is applied.
Financial assets at fair value through  
other comprehensive income (FVOCI)
Securitas currently has no financial assets in this category. 
Financial liabilities at amortized cost 
Liabilities in this category are measured at amortized cost using the 
effective interest rate method. This category comprises such items as 
accounts payable and other current liabilities, and any long-term and 
short-term loans not included in the category financial liabilities at fair 
value through profit and loss.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

80
Securitas Annual and Sustainability Report 2019
Financial liabilities at fair value through profit and loss (FVPL)
Liabilities in this category are measured at fair value. Changes in fair value 
are recognized in the statement of income as they arise unless hedge 
accounting is applied. 
Recognition and derecognition
Regular purchases and sales of financial assets are recognized on trade-
date, the date on which the Group commits to purchase or sell the asset. 
Financial assets are derecognized when the rights to receive cash flows 
from the financial assets have expired or have been transferred and the 
Group has transferred substantially all the risks and rewards of ownership. 
Financial instruments are removed from the balance sheet when the obli-
gation specified in the contract is discharged, cancelled or expired.
At initial recognition, the Group measures a financial asset at its fair value 
plus, in the case of a financial asset not at fair value through profit or loss 
(FVPL), transaction costs that are directly attributable to the acquisition of 
the financial asset. Transaction costs of financial assets carried at FVPL are 
expensed in profit or loss.
Financial risk management and hedge accounting 
Securitas’ business activities create exposure to financial risks, such as 
interest rate risk, foreign currency risk, financing and liquidity risk and 
credit / counterparty risk. 
Derivatives are used for the following main purposes: hedging the interest 
rate element of external debt and changing its currency profile, gearing ratio 
hedging and hedging of internal borrowings and investments.
Where all relevant criteria are met, Securitas applies hedge accounting to 
remove the accounting mismatch between the hedging instrument and the 
hedged item. At inception of the hedge relationship, the Group documents 
the economic relationship between hedging instruments and hedged items. 
The economic relationship is determined based on the matching of critical 
terms. For interest rate hedges these are interest rates, cash flow, currency,  
interest periods and maturity. For cash flow hedges these are currency, nomi-
nal amount and dates. The Group documents its risk management objective 
and strategy for undertaking its hedge transactions. Hedge effectiveness is 
determined at the inception of the hedge relationship, and through periodic 
prospective effectiveness assessments to ensure that an economic relation-
ship exists between the hedged item and hedging instrument.
For derivatives designated in fair value hedges, the gains or losses from re-
measuring the hedging instruments at fair value are recognized in the state-
ment of income. Also included in this category are derivatives where there is 
a natural offset in the accounting and where the purpose is to achieve an off-
setting impact without qualifying for hedge accounting. The Group does not 
hedge 100 percent of its fixed rate loans; therefore, the hedged item is identi-
fied as a proportion of the outstanding loans equal to the notional amount of 
the swaps. Accordingly, the hedge ratio is 1:1.
 For derivatives designated in cash flow hedges, the gains or losses from 
re-measuring the hedging instruments at fair value are recognized in the 
hedging reserve in other comprehensive income, with a reversal from the 
hedging reserve to the statement of income in the period in which the cash 
flow of the hedged item impacts the statement of income. Any ineffective-
ness is recognized in the statement of income. The Group does not hedge 
100 percent of its floating rate loans; therefore, the hedged item is identified 
as a proportion of the outstanding loans equal to the notional amount of the 
swaps. Accordingly, the hedge ratio is 1:1.
For derivatives which are part of net investment hedges, the exchange rate 
gains and losses are recognized in other comprehensive income. Any inef-
fectiveness is recognized in the statement of income.
All cash flows (accrued interest income / expenses) that arise from interest-
rate derivative contracts are recognized as interest income and / or interest 
expense in the statement of income in the period to which they relate. 
Changes in fair value (after accruals) for both the hedged item and the hedg-
ing instrument (derivative) are recognized as revaluation of financial instru-
ments. Revaluation of financial instruments is included in financial income 
and / or financial expenses in the statement of income and specified in the 
table Revaluation of financial instruments in note 7 as well as on a separate 
line in note 14.
Refer to note 7 for further information regarding the Group´s risk exposure.
Hedge ineffectiveness
The Group enters into interest rate swaps that have similar critical terms 
as the hedged item, such as reference rate, reset dates, payment dates, 
maturities and notional amount. 
Hedge ineffectiveness for interest rate swaps may occur if changes in 
circumstances affect the terms of the hedged item such that the critical terms 
no longer match exactly with the critical terms of the hedging instrument. It 
may occur due to:
•	the credit value/debit value adjustment on the interest rate swaps 
which is not matched by the loan. This is mitigated by the use of credit 
support annexes, and
•	differences in critical terms between the interest rate swaps and loans. 
 As all hedging relationships had matching terms there was no significant 
hedge ineffectiveness during the year.
Share-based payments (IFRS 2)	
NOTE 9, 12, 30 AND 56
Securitas has two share-based incentive schemes. The short-term share-
based incentive scheme has been in place for a number of years subject to 
yearly approval by the Annual General Meeting. From 2019, a new long-
term share based incentive scheme was approved by the Annual General 
Meeting and has been introduced for the CEO, Group Management and a 
limited number of other key employees.
For both schemes, the cost for Securitas, including social security 
expenses, is accounted for in the statement of income during the vesting 
period. The share-based portion of the bonus is classified as equity. At the 
end of the program, a revaluation is made of the original estimates and the 
final outcome of social security expenses is determined. Any deviation due 
to the revaluation, for example due to any participant leaving the Group and 
not receiving allocated shares, is accounted for in the statement of income. 
Under the short-term share-based incentive scheme the participants in 
the scheme receive a bonus of which two thirds are payable in cash in the 
beginning of the year after the bonus has been accrued. The remaining one 
third of the bonus is used to acquire shares at market value. These shares 
are delivered to the participants in March, two years following the perfor-
mance year, conditioned by a continuous employment during the vesting 
period, except where a participant has left his/her employment due to 
retirement, death or long-term disability, in which case the participant shall 
have a continued right to receive shares. 
In order to hedge the share portion of Securitas share-based incentive 
scheme 2018, the Group has entered into a swap agreement with a third 
party. The swap agreement represents an obligation for the Parent Com-
pany to purchase its own shares at a predetermined price. The swap agree-
ment is consequently classified as an equity instrument and accounted for 
in equity as a reduction of retained earnings. A swap agreement was also 
entered into to hedge the share portion of Securitas share-based incentive 
scheme 2017. That swap agreement settled during 2019 in conjunction 
with the delivery of the shares to the participants upon vesting.
Under the long-term share-based incentive scheme participants will  
have to invest Securitas series B shares at market price or nominate already 
vested or currently vesting shares under the short-term incentive schemes. 
For every shares thus purchased or invested the company will grant so 
called performance awards free of charge. The performance condition is 
linked to the development of real change in earnings per share (if applicable 
excluding items affecting comparability) and the outcome is calculated 
yearly, whereby one third is measured against the outcome of the first year, 
one third against the second year and one third against the third year. The 
award of shares is in addition to the fulfilment of performance conditions 
contingent on the employment as per the vesting day and that the invested 
shares are kept during the whole vesting period. The number of shares 
awarded will also include compensation for dividend during the vesting 
period by increasing the number of shares awarded.
The cost for the service rendered under the long-term incentive program 
is spread over the vesting period and is based on a fair value on the grant 
date for Securitas series B share.
Any share-swap agreement will be separate from those entered into for 
the short-term share-based incentive scheme described above. The 
accounting principles described for the swap agreement above will also be 
applicable for any future swap agreements in relation to the long-term pro-
gram. 
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

81
Securitas Annual and Sustainability Report 2019
Employee benefits (IAS 19)	
NOTE 24, 32 AND 35
Employee benefits are all forms of consideration given by the Group in 
exchange for services rendered by its employees. With the exception of the 
share-based incentive schemes, described above, which falls under IFRS 2,  
they are all covered under IAS 19. The considerations mainly relate to 
salaries and payroll overhead such as social charges and payroll taxes, but 
also include other short-term employee benefits that are expected to be 
settled within 12 months of the balance sheet date. These include, but are 
not limited to, vacation payments, cash-settled bonuses and also short-
term healthcare benefits. When applicable these benefits also include the 
applicable social charges and payroll taxes. In addition to these benefits 
the Group is also responsible to withhold social charges, payroll taxes and 
income tax on behalf of its employees. These balances are included in other 
current liabilities and in other short-term provisions.
The Group also operates or participates in a number of defined benefit 
and defined contribution pension and other post-employment benefit 
plans as well as some other long-term employment plans. Other post-
employment plans primarily relate to healthcare benefits. A defined contri-
bution plan is a plan under which the Group pays fixed contributions into a 
separate entity. The Group has no legal or constructive obligations to pay 
further contributions if the fund does not hold sufficient assets to pay all 
members the benefits relating to employee service in the current and prior 
periods. Contributions are recognized as expenses when they fall due for 
payment. Other plans are defined benefit plans.
Calculations for the defined benefit plans that exist within Securitas are 
carried out by independent actuaries. Costs related to defined benefit plans 
are recognized in operating income. The calculation of service cost is based 
on the projected unit credit method in a way that distributes the cost over 
the employee’s working life. The net interest cost is estimated by applying 
the discount rate to the net defined benefit obligation. Administration costs 
are recognized in operating income in the period which they occur. 
The net defined benefit obligation recognized in the balance sheet is the 
present value of the defined benefit obligation at the end of the reporting 
period less the fair value of plan assets. The obligations are valued at the 
present value of the expected future cash flows using a discount rate cor-
responding to the interest rate on high quality corporate bonds or govern-
ment bonds with a remaining term that is approximately the same as the 
obligations.
Remeasurements of post-employment benefit plans and reimburse-
ment rights are recognized in other comprehensive income in the period 
which they occur. Remeasurements of other long-term employee benefit 
plans as well as past service costs are recognized immediately in operating 
income.
If accounting for a defined benefit plan results in a net balance sheet 
asset, this is reported in the consolidated balance sheet under other long-
term receivables. Otherwise it is reported as a provision under provisions 
for pensions and similar commitments. Provisions for pensions and similar 
commitments are not included in net debt.
When it is virtually certain that another party will reimburse some or all of 
the expenditure required to settle a defined benefit obligation, the right to 
reimbursement is recognized. This reimbursement right is measured  
at fair value and classified as a long-term receivable.
Provisions (IAS 37)	
NOTE 15, 32, 33 AND 36
The Group’s provisions are mainly related to deferred tax liabilities (note 
15), provisions for pensions and similar commitments (note 32) and 
claims reserves (notes 33 and 36).
Claims reserves are calculated on the basis of a combination of case 
reserves, which represent claims reported, and IBNR (incurred but not 
reported) reserves. Actuarial calculations are performed quarterly to assess 
the adequacy of the reserves based on open claims and historical IBNR.
The Group has 370 000 employees and as such from time to time 
faces labor-related disputes with current or former employees in relation 
to various matters. Such matters can involve, but are not limited to, the 
diverse interpretation of labor legislation, individual employee contracts 
or collective bargaining agreements and can for example relate to working 
hours, benefits payable, various reimbursements or the termination of 
employment. The Group follows IAS 37 and IAS 19 in determining when 
1 The definition is also valid for the formal primary statements – the statement of income and the 
­statement of cash flow.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
a contingent liability, a provision or a liability should be disclosed and / or 
recognized for these disputes.
	
  Definitions, calculation of  
  NOTE 3     key ratios and exchange rates
DEFINITIONS
Statement of income according to Securitas’ financial model
Production expenses1
Wages and related costs, the cost of equipment used when performing 
professional duties, and all other costs directly related to the performance 
of services invoiced.
Selling and administrative expenses1 
All costs of selling, administration and management including branch office 
expenses. The primary function of the branch offices is to provide the pro-
duction with administrative support as well as to serve as a sales channel.
Gross margin
Gross income as a percentage of total sales.
Operating income before amortization
Operating income before amortization and impairment of acquisition 
related intangible assets and acquisition related costs, but including 
amortization and depreciation of other intangible assets, buildings and 
land and machinery and equipment.
Operating margin
Operating income before amortization as a percentage of total sales.
Operating income after amortization
Operating income after amortization and impairment of acquisition 
related intangible assets and acquisition related costs, and including 
amortization and depreciation of other intangible assets, buildings and 
land and machinery and equipment.
Adjusted income
Operating income before amortization, adjusted for financial income and 
expenses (excluding revaluation of financial instruments according to 
IAS 39) and current taxes.
Net margin
Income before taxes as a percentage of total sales.
Real change
Change adjusted for changes in exchange rates.
Statement of cash flow  
according to Securitas’ financial model
Cash flow from operating activities
Operating income before amortization adjusted for depreciation / amor-
tization less capital expenditures in non-current tangible and intangible 
assets (excluding acquisition of subsidiaries), change in accounts receiv-
able and changes in other operating capital employed.
Free cash flow
Cash flow from operating activities adjusted for financial income and 
expenses paid and current taxes paid.
Cash flow for the year1
Free cash flow adjusted for acquisition of subsidiaries, acquisition related 
costs paid, dividends, new issues and change in interest-bearing net debt 
excluding liquid funds.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

82
Securitas Annual and Sustainability Report 2019
Balance sheet according to Securitas’ financial model
Operating capital employed 
Capital employed less goodwill, acquisition related intangible assets and 
shares in associated companies.
Capital employed
Non interest-bearing non-current and current assets less non interest-
bearing long-term and current liabilities.
Net debt
Interest-bearing non-current and current assets less long-term and short-
term interest-bearing loan liabilities.  
CALCULATION OF KEY RATIOS 2019 
Usage of key ratios not defined in IFRS
Securitas applies ESMA’s (European Securities and Markets Authority) 
guidelines for Alternative Performance Measures (APM). An APM is a 
financial measure of historical or future financial performance, financial 
position or cash flow that has not been defined in IFRS. In order to facili-
tate the analysis of the Group’s development made by Group Manage-
ment and other interested parties, Securitas accounts for certain APMs. 
The APMs are additional information and do not replace key ratios accord-
ing to IFRS. Securitas definitions of APMs may be different from the 
definitions in other companies. Refer to the Annual Report 2018 for the 
previous year’s calculations.
Adoption and impact of IFRS 16 Leases 
As described in note 2 Accounting principles, Securitas has adopted IFRS 
16 Leases as of January 1, 2019. The cumulative effect of the adoption 
has been recognized without restatement of the comparative periods. 
As a consequence, certain lines in the consolidated financial statements 
and segment overviews as well as key ratios are not comparable with the 
preceding year. The effects of the adoption, including the effect on the 
Group´s key ratios, are described in note 41.
Acquired sales growth: 1%
This year’s sales from acquired business as a percentage of the previous 
year’s total sales. 
Calculation: 1 339/101 467 = 1% 
Organic sales growth: 4%
Total sales for the year adjusted for acquisitions and changes in exchange 
rates as a percentage of the previous year’s total sales adjusted for dives-
titures.
Calculation: ((110 899 - 1 339 - 3 693) / (101 467 - 34))-1 = 4% 
Real sales growth: 6%
Total sales for the year including acquisitions and adjusted for changes in 
exchange rates as a percentage of the previous year’s total sales.
Calculation: ((110 899 –3 693) / 101 467)-1 = 6% 
Change of currency adjusted operating 
income before amortization: 3%
Operating income before amortization adjusted for changes in exchange rates 
as a percentage of the previous year’s operating income before amortization.
Calculation: ((5 738  - 255) / 5 304)-1 = 3%
Operating margin: 5.2%
Operating income before amortization as a percentage of total sales.
Calculation: 5 738 / 110 899 = 5.2%
Change of currency adjusted operating 
income after amortization: 11%
Operating income after amortization adjusted for changes in exchange 
rates as a percentage of the previous year’s operating income after amor-
tization.
Calculation: ((5 196 - 235) / 4 469)-1 = 11%
Change of currency adjusted income before taxes: 9%
Income before taxes adjusted for changes in exchange rates as a percent-
age of the previous year’s income before taxes.
Calculation: ((4 618 - 215) / 4 028)-1 = 9%
Change of currency adjusted net income: 6% 
Net income adjusted for changes in exchange rates as a percentage of the 
previous year’s net income.
Calculation: ((3 362 - 161) / 3 021)-1 = 6%
Earnings per share before dilution1,2: SEK 9.20 (8.26)
Net income for the year attributable to equity holders of the Parent Com-
pany in relation to the average number of shares before dilution.
Calculation 2019: ((3 362 - 5) / 364 993 486) × 1 000 000 = SEK 9.20
Calculation 2018: ((3 021 - 5) / 365 058 897) × 1 000 000 = SEK 8.26
Earnings per share before dilution1,2,  and before 
items affecting comparability3: SEK 9.61
Net income for the year attributable to equity holders of the Parent
Company before items affecting comparability in relation to the average 
number of shares before dilution.
Calculation: ((3 362 - 5 + 209 - 57) / 364 993 486) ×1 000 000 = SEK 9.61
Change of currency adjusted earnings per 
share before dilution1,2: 6%
Net income for the year attributable to equity holders of the Parent Com-
pany adjusted for changes in exchange rates in relation to the average 
number of shares before dilution as a percentage of the previous year’s 
earnings per share before dilution.
Calculation: ((((3 362 - 5 - 161) / 364 993 486) ×1 000 000) / 8.26)-1 = 6%
Change of currency adjusted earnings per share before 
dilution1,2 and before items affecting comparability3: -1%
Net income for the year attributable to equity holders of the Parent Com-
pany before items affecting comparability and adjusted for changes in 
exchange rates, in relation to the average number of shares before dilution 
as a percentage of the previous year’s earnings per share before dilution 
and before items affecting comparability.
Calculation: ((((3 362 - 5 + 209 - 57 - 179) / 364 993 486) ×1 000 000) / 
9.17)-1 = -1%
Cash flow from operating activities as % of 
operating income before amortization: 85%
Cash flow from operating activities as a percentage of operating income 
before amortization.
Calculation: 4 902 / 5 738 = 85%
Free cash flow as % of adjusted income: 83%
Free cash flow as a percentage of adjusted income (operating income 
before amortization adjusted for financial income and expenses, exclud-
ing revaluation of financial instruments, and current taxes).
Calculation: 3 268 / (5 738 - 578 + 1 - 1 200) = 83%
Free cash flow in relation to net debt: 0.19
Free cash flow in relation to closing balance net debt.
Calculation: 3 268 / 17 541 = 0.19
1 There are no convertible debenture loans. Consequently there is no difference between earnings per share before and after dilution.
2 Number of shares includes shares related to the Group’s share-based incentive scheme that have been hedged through a swap agreement.
3 Items affecting comparability in the full year is consisting of one-off effects of MSEK -209 from the IS/IT programs in the Group. 
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

83
Securitas Annual and Sustainability Report 2019
Net debt to EBITDA ratio: 2.2
Net debt in relation to operating income after amortization plus amortiza-
tion of acquisition related intangible assets and depreciation.
Calculation: 17 541 / (5 196 + 271 + 2 690) = 2.2
Operating capital employed as % of total sales: 12%
Operating capital employed as a percentage of total sales adjusted for full 
year sales of acquired entities.
Calculation: 13 100 / (110 899 + 570) = 12%
Return on operating capital employed: 50%
Operating income before amortization plus items affecting comparability 
as a percentage of the average balance of operating capital employed.
Calculation: (5 738 - 209) / ((13 100 + 9 199) / 2) = 50%
Return on capital employed: 15%
Operating income before amortization plus items affecting comparability 
as a percentage of the closing balance of capital employed.
Calculation: (5 738 - 209) / 37 140 = 15% 
Net debt equity ratio: 0.89
Net debt in relation to shareholders’ equity.
Calculation: 17 541 / 19 599 = 0.89
Interest coverage ratio: 9.4
Operating income before amortization plus interest income in relation to 
interest expense.
Calculation: (5 738 + 41) / 617 = 9.4
Return on equity: 18%
Net income for the year as a percentage of average shareholders’ equity.
Calculation: 3 362 / ((19 599 + 17 657) / 2) = 18%
Equity ratio: 32%
Shareholders’ equity as a percentage of total assets.
Calculation: 19 599 / 62 190 = 32%
EXCHANGE RATES USED IN THE CONSOLIDATED FINANCIAL STATEMENTS 2019 AND 2018		
	
	
	
	
2019
2018
Weighted
 average
End-rate
December
Weighted
 average
End-rate
December
Argentina
ARS
1
0.20
0.16
0.31
0.23
Australia
AUD
1
6.58
6.52
6.50
6.32
Bosnia and Herzegovina
BAM
1
5.41
5.33
5.27
5.24
Bulgaria
BGN
1
5.41
5.34
5.27
5.24
Canada
CAD
1
7.15
7.13
6.71
6.57
Chile
CLP
100
1.34
1.25
1.36
1.29
China
CNY
1
1.37
1.33
1.32
1.30
Colombia
COP
100
0.29
0.28
0.29
0.27
Costa Rica
CRC
100
1.62
1.63
1.51
1.49
Croatia
HRK
1
1.43
1.40
1.39
1.38
Czech Republic
CZK
1
0.41
0.41
0.40
0.40
Denmark
DKK
1
1.42
1.40
1.38
1.37
Egypt
EGP
1
0.57
0.58
0.49
0.50
EMU countries
EUR
1
10.59
10.43
10.30
10.25
Hong Kong
HKD
1
1.21
1.20
1.11
1.14
Hungary
HUF
100
3.24
3.15
3.22
3.19
India
INR
1
0.13
0.13
0.13
0.13
Indonesia
IDR
100
0.07
0.07
0.06
0.06
Jordan
JOD
1
13.34
13.14
12.36
12.60
Mexico
MXN
1
0.49
0.49
0.45
0.46
Morocco
MAD
1
0.98
0.97
0.93
0.94
Norway
NOK
1
1.08
1.06
1.07
1.03
Paraguay
PYG
100
0.15
0.14
0.15
0.15
Peru
PEN
1
2.83
2.81
2.66
2.65
Poland
PLN
1
2.46
2.45
2.42
2.38
Romania
RON
1
2.23
2.18
2.21
2.20
Saudi Arabia
SAR
1
2.52
2.48
2.32
2.38
Serbia
RSD
1
0.09
0.09
0.09
0.09
Singapore
SGD
1
6.95
6.91
6.48
6.54
South Africa
ZAR
1
0.66
0.66
0.66
0.62
South Korea
KRW
100
0.81
0.81
0.79
0.80
Sri Lanka
LKR
100
5.30
5.13
5.34
4.89
Switzerland
CHF
1
9.53
9.59
8.94
9.11
Thailand
THB
1
0.31
0.31
0.27
0.27
Turkey
TRY
1
1.67
1.57
1.80
1.70
United Arab Emirates
AED
1
2.58
2.54
2.38
2.43
UK
GBP
1
12.10
12.23
11.61
11.35
Uruguay
UYU
1
0.27
0.25
0.28
0.28
USD countries
USD
1
9.47
9.32
8.75
8.94
Vietnam
VND
100
0.04
0.04
0.04
0.04
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

84
Securitas Annual and Sustainability Report 2019
The preparation of financial reports requires the Board of Directors and 
Group Management to make estimates and judgments using certain 
assumptions. Estimates and judgments will impact the statement of 
income and the balance sheet as well as disclosures such as contingent 
liabilities. Actual results may differ from these estimates and judgments 
under different assumptions and conditions. 
Acquisition of subsidiaries / operations 
and deferred considerations
The valuation of identifiable assets and liabilities in connection with 
the acquisition of subsidiaries or operations involves that items in the 
acquired company’s balance sheet as well as items that have not been 
recognized in the acquired company’s balance sheet, such as client rela-
tions, should be valued at fair value. In normal circumstances, as quoted 
market prices are not available for the assets and liabilities that are to be 
valued, different valuation methods have to be used. These valuation 
methods are based on a number of assumptions. For a personnel inten-
sive company like Securitas, employee related items such as accrued sala-
ries, accrued social benefits, holiday pay, long-term employee benefits 
and post-employment benefits are significant items in the balance sheet 
that can be difficult to value. Accounts receivable is another example of a 
significant balance sheet item where it can be difficult to value the amount 
of bad debt and thus to what extent they will be collected. Other items 
that can be difficult both to identify as well as to value are contingent 
liabilities that could have arisen in the acquired company in connection 
with for example litigations. As part of the Group’s strategy to acquire 
companies active within the electronic security business this also entails 
some additional balance sheet items that can be of significant impact 
such as net amounts due from or to clients for installation projects (work 
in progress on behalf of clients) and the related inventory of components 
that will be used for installation projects or for service and maintenance 
work. The profitability in the installation projects need to be assessed and 
the existence and valuation of the inventory needs to be established. 
The valuation of identifiable assets and liabilities is also dependent 
on the accounting environment that the acquired company / operations 
have been active in. This is true for example for the basis of preparation 
for the financial reporting and consequently the extent of adjustments 
that are necessary in order to follow the Group’s accounting principles, the 
frequency for which closings have been prepared and the availability of 
different types of data that can be necessary in order to value identifiable 
assets and liabilities. All balance sheet items are thus subject to estimates 
and judgments. This also means that the initial accounting may have to be 
provisionally determined and subsequently adjusted. All acquisition cal-
culations are finalized no later than one year after the acquisition is made. 
Considering the above description including the practicability to compile 
and disclose all individual adjustments in a manner that will benefit the 
reader of the financial statements, Securitas has chosen not to state the 
reasons to why the initial accounting of the business combination is pro-
visional nor which assets and liabilities for which the initial accounting is 
provisional for each individual business combination unless it is a material 
adjustment. 
All payments to acquire a subsidiary / operation are recorded at fair 
value at the acquisition date, including debt related to deferred or con-
tingent considerations and acquisition related option liabilities (referred 
to collectively as deferred considerations). This debt is measured at fair 
value in subsequent periods with remeasurement through the statement 
of income. The final outcome of deferred considerations often depends 
on one or more events which only will be confirmed by a future develop-
ment, such as the future profitability development for an agreed period. 
The final outcome can therefore either be lower or higher than the initially 
recognized amount. Short-term deferred considerations, which amount 
to MSEK 202 (78) and is included in other current liabilities (note 35) and 
long-term deferred considerations, which amount to MSEK 223 (195) 
and is included in other long-term liabilities (note 31), are thus subject to 
critical estimates and judgments.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Further information regarding acquisitions is provided in note 16 and 
regarding revaluation of deferred considerations in note 11. 
Impairment testing of goodwill, other acquisition related 
intangible assets and shares in associated companies
In connection with the impairment testing of goodwill, other acquisition 
related intangible assets and shares in associated companies, the book 
value is compared to the recoverable value. The recoverable value is 
determined by the higher of an asset’s net realizable value and its value in 
use. Since under normal circumstances no quoted market prices are avail-
able to assess an asset’s net realizable value, the book value is normally 
compared to the value in use. The calculation of the value in use is based 
on assumptions and judgments. The most important assumptions are the 
organic sales growth, the development of the operating margin, the oper-
ating working capital requirements and the relevant WACC, which is used 
to discount future cash flows. All in all, this means that the valuation of the 
balance sheet items goodwill, which amounts to MSEK 22 157 (21 061), 
acquisition related intangible assets, which amounts to MSEK 1 563 
(1 458) and shares in associated companies, which amounts to MSEK 
320 (452) are subject to critical estimates and judgments. A sensitivity 
analysis regarding the organic sales growth, the operating margin and the 
WACC is provided in note 17. 
Leases
Securitas’ lease agreements are mainly attributable to buildings and 
vehicles. As from the transition to IFRS 16 on January 1, 2019, they are 
accounted for as right-of-use assets (included in non-current assets), 
which amounts to MSEK 3 489 (222), long-term lease liabilities of MSEK 
2 610 (116) and current lease liabilities of MSEK 944 (106). The account-
ing for leases under IFRS 16 involves making critical estimates and judg-
ments. Areas where critical estimates and judgments are applied include 
determination of the discount rate and the lease term.
The lease liabilities are initially measured at the present value of 
remaining lease payments. As the interest rate implicit in the lease gen-
erally cannot be readily determined for leases in the Group, the present 
value is calculated by using the incremental borrowing rate for each coun-
try. This is the rate that the individual lessee would have to pay to borrow 
the funds necessary to obtain an asset of similar value to the right-of-use 
asset in a similar economic environment with similar terms, security and 
conditions. The rate is set in line with the Group’s internal borrowing rate, 
by using each country’s swap rate for the relevant duration plus an internal 
borrowing margin. The right-of-use assets are initially measured at an 
amount equal to the lease liabilities. A change in the discount rate could 
increase or decrease the present value of the lease liabilities and conse-
quently the right-of-use assets. Furthermore, it could impact the total 
cost in the statement of income and the split between depreciation and 
interest expense.
Lease terms are negotiated individually for each lease agreement. 
Determining the correct lease term is important since it impacts the size 
of the right-of-use assets and lease liabilities. It also impacts whether a 
lease can be classified as a short-term lease and thus excluded from the 
lease liabilities accounted for under IFRS 16. In determining the lease 
term, management considers all facts and circumstances that create an 
economic incentive to exercise an extension option, or not exercise a ter-
mination option. Extension options (or periods after termination options) 
are only included in the lease term if the lease is reasonably certain to be 
extended (or not terminated). In general, extension options have not been 
included in the lease liability since the Group could replace the assets 
without significant cost or business disruption. A change in the lease term 
could increase or decrease the present value of the lease liabilities and 
consequently the right-of-use assets. 
  NOTE 4    Critical estimates and judgments

85
Securitas Annual and Sustainability Report 2019
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Valuation of accounts receivable  
and the provision for bad debt losses
Accounts receivable, which amounts to MSEK 16 120 (15 604), is one 
of the most significant balance sheet items. Accounts receivable are 
accounted for at the nominal value net after provisions for expected bad 
debt losses. The provision for bad debt losses, which amounts to MSEK 
-579 (-508), is thus subject to critical estimates and judgments. Securitas 
has a low level of bad debt losses, in the range of 0.1 percent of sales in 
the past five years.
As stated above, accounts receivable is often an important item in 
relation to the acquisition of subsidiaries / operations. Further information 
regarding the credit risk in accounts receivable is provided in note 7. Infor-
mation regarding the ageing of accounts receivable and the development 
of the provision for bad debt losses during the year is provided in note 26.
Employee benefits including labor-related disputes 
With 370 000 employees and salaries and social benefits representing 
more than 80 percent of the total operating expenses, the accounting 
for employee benefits is crucial to determine a correct result. The Group 
operates in many countries with different legislation and different regula-
tory frameworks surrounding the benefits payable to employees and the 
related payroll overhead such as social charges and payroll taxes. 
Given the large number of employees, the Group from time to time also 
faces labor-related disputes with current or former employees in relation 
to various matters. Such matters can involve, but are not limited to, the 
diverse interpretation of labor legislation, individual employee contracts 
or collective bargaining agreements and can for example relate to working 
hours, benefits payable, various reimbursements or the termination of 
employment. All in all, this means that the employee-related items in the 
balance sheet are subject to critical estimates and judgments. These bal-
ances are mainly included under employee-related items (note 35), which 
amounts to MSEK 8 134 (7 511), but also form part of short-term provi-
sions (note 36) as a part of other provisions MSEK 533 (786).
For defined benefit plans relating to benefits particularly for pensions 
and medical benefits and where the payment to the employee is several 
years into the future, actuarial calculations are required. These calcula-
tions are based on assumptions regarding economic variables such as 
the discount rate, salary increases, inflation rate, pension increases and 
the inflation rate for medical benefits, but also on demographic variables 
such as the expected life span. All in all, the balance sheet item pension 
balances for defined benefit plans which amounts to MSEK 95 (36) and 
which is stated under other long-term receivables (note 24), and the bal-
ance sheet item provisions for pensions and similar commitments, which 
amounts to MSEK 1 141 (1 116), is subject to critical estimates and judg-
ments. The Group’s opinion is that the most important assumptions are 
the discount rate, the inflation rate and the expected life span. A sensitiv-
ity analysis regarding these three variables is provided in note 32.
Actuarial calculations regarding claims 
reserves and timing of outflows
The Group is exposed to various types of risks in the day-to-day running 
of the business. The operational risks can result in the need to recognize 
reserves for damages resulting from property claims, personal injuries as 
well as workers’ compensation claims relating to the Group’s employees. 
Claims reserves are calculated based on a combination of case reserves 
and incurred but not reported reserves. Actuarial calculations are per-
formed on a quarterly basis to assess the adequacy of the reserves based 
on open claims and historical data for incurred but not reported claims. 
Actuarial calculations are based on several assumptions. Claims reserves 
comprise a large number of individual insurance cases, where some cases 
are compensated with a lump-sum payment and others are paid over a lon-
ger period of time. It is thus not possible to disclose any detailed informa-
tion regarding the timing of outflows from claims reserves.
All in all, this means that the balance sheet items short-term liability 
insurance-related claims reserves, which amounts to MSEK 595 (578) 
and is included in short-term provisions (note 36), and liability insurance-
related claims reserves, which amounts to MSEK 549 (624) and is 
included in other long-term provisions (note 33), are subject to critical 
estimates and judgments. 
 Calculation of taxes and timing of outflows
Deferred tax is calculated on temporary differences between the car-
rying amounts and the tax values of assets and liabilities. Assumptions 
and assessments affect recognized deferred tax, partly to determine 
the carrying amounts of the different assets and liabilities, and partly 
related to forecasts regarding future taxable profits, where future utiliza-
tion of deferred tax assets depends on this. Significant assessments and 
assumptions are also made regarding recognition of provisions and con-
tingent liabilities relating to tax risks and the potential impact of ongoing 
tax audits. Tax audits are often lengthy processes that go on for several 
years. It is thus not possible to disclose any detailed information regarding 
the timing of outflows from taxes.
The balance sheet includes deferred tax assets of MSEK 918 (961), 
current tax assets of MSEK 922 (581), deferred tax liabilities of MSEK 624 
(571), and current tax liabilities of MSEK 1 621 (1 362), which are subject 
to critical estimates and judgments. Further information regarding taxes is 
provided in note 15 and note 38.
The impact on the Group’s financial position of ongoing 
litigations and the valuation of contingent liabilities
Over the years, the Group has made a number of acquisitions in different 
countries. As a result of such acquisitions, certain contingent liabilities 
of the businesses acquired have been assumed. Companies within the 
Group are also involved in a number of proceedings, including legal pro-
ceedings and tax audits arising out of the operations. The accounting for 
litigations, legal proceedings and tax audits are subject to critical esti-
mates and judgments. Further information is provided in note 38. 
Potential effect of Brexit
Securitas operations in the UK are foremost with local clients and in local 
currency. The preliminary assessment is that the impact from the UK’s 
decision to leave the EU will have limited effect on Securitas local busi-
ness in the UK. Any changes in the Swedish krona exchange rate versus 
the British pound will affect the Group’s consolidated financial statements 
when translating the British financial statements to Swedish kronor. 
COVID-19
Securitas as well as other companies are currently facing the challenge of 
the spread of COVID-19 (Corona virus). Securitas operations in China are 
limited and in Italy we operate a small business in electronic security
only. However we do see the further spreading of the virus in many differ-
ent countries, especially in Europe where Securitas has significant opera-
tions, and the implementation of important measures around the world to 
prevent the further spreading impacting society and business. As per the 
date of signing of this Annual Report Securitas has seen certain effects, 
so far mostly in relation to cancelled events and reduced traffic in airports. 
Securitas is actively mitigating any impacts to the service levels, as well 
as to the income, costs and cash flows, by working together with different 
clients and the employees. It is currently impossible to estimate the ulti-
mate impact on the Group, but Securitas is putting mechanisms in place to 
measure and forecast such and will further adopt its mitigation measures 
where required. 
  NOTE 5    Events after the balance sheet date
Approval of the Annual Report and  
Consolidated Financial Statements for 2019
This Annual Report including the Consolidated Financial Statements 
was approved by the Board of Directors and the President and CEO of 
Securitas AB on March 18, 2020.

86
Securitas Annual and Sustainability Report 2019
Disaggregation of revenue
The Group has chosen to disaggregate revenue from sales to clients into three broad categories; Guarding services, Security solutions and electronic 
security and Other. These categories are described in Note 2 Accounting principles under the heading Revenue recognition. In addition, revenue also 
includes Other operating income which consists of trade mark fees.
MSEK
2019
%
2018
%
Guarding services
85 774
77
79 567
79
Security solutions and 
electronic security
23 290
21
20 440
20
Other 
1 835
2
1 460
1
Total sales
110 899
100
101 467
100
Other operating income
34
0
30
0
Total revenue
110 933
100
101 497
100
Most revenue is recognized in advance of the payment by clients. 
Payment terms vary mainly between 0 and 60 days. Prepayments from 
clients are normally done quarterly in advance, but there is also to some 
extent prepayments covering up to one year in advance.
COSTS TO OBTAIN A CONTRACT 
MSEK
2019
2018
Included in other intangible assets (note 19) 
480
445
Total costs to obtain a contract
480
445
This item mainly consists of sales commissions paid for individual contracts 
signed. All commissions are expensed on subsidiary level and thus on seg-
ment level. The Group capitalizes these costs and includes the capitaliza-
tion and amortization under Other in the Group’s segment overview.
The amortization for 2019 amounted to MSEK -96  (-90). There has 
been no impairment of assets relating to costs to obtain a contract for 
2019 nor for 2018. 
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
  NOTE 6    Revenue
Revenue per segment 
The Group’s business segments follow the same accounting principles for revenue recognition as the Group. The disaggregation of revenue by segment 
is shown in the table below. Total sales agree to total sales in the segment overviews.
Security Services  
North America
Security Services  
Europe
Security Services  
Ibero-America
Other
Eliminations
Group
MSEK
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Guarding services
37 779
33 541
36 637
35 402
9 572
9 045
1 809
1 588
-23
-9
85 774
79 567
Security solutions and 
electronic security
8 885
7 365
10 611
9 638
3 527
3 270
267
167
–
–
23 290
20 440
Other 
1 835
1 460
–
–
–
–
–
–
–
–
1 835
1 460
Total sales
48 499
42 366
47 248
45 040
13 099
12 315
2 076
1 755
-23
-9
110 899
101 467
Other operating income
–
–
–
–
–
–
34
30
–
–
34
30
Total revenue
48 499
42 366
47 248
45 040
13 099
12 315
2 110
1 785
-23
-9
110 933
101 497
CONTRACT BALANCES 
MSEK
2019
2018
Contract receivables
Accounts receivable (note 26)
16 120
15 604
Accrued sales income (note 27)
3 424
3 224
Total contract receivables
19 544
18 828
Contract liabilities
Deferred revenue (note 35)
965
951
Total contract liabilities
965
951
Revenue recognized in 2019 that was included in contract liabilities 
2018 amount to MSEK 951 (648). Most of the contract liabilities 2019 is 
expected to be recognized as revenue in 2020.    
Revenue recognized in 2019 from performance obligations satisfied 
in 2018 (and in 2018 from 2017) is not material due to the nature of the 
services. 
Other significant events after the balance sheet date 
Securitas has acquired Fredon Security, founded in 2012 as a division 
within Fredon Group, an Australian engineering and building services 
company. The company has approximately 110 employees and had 
annual sales of MAUD 37 (MSEK 240) in the financial year ending June 
30, 2019. The purchase price is estimated to MAUD 32 (MSEK 210). The 
acquisition was consolidated into Securitas as of January 9, 2020.
Securitas reinforces its leadership position within the electronic 
security market in Spain through the acquisition of Techco Security, a 
leading electronic security company. The company has approximately 
520 employees with a strong footprint across Spain and Portugal. Techco 
Security’s annual sales was MEUR 50 (MSEK 520) in 2018. The purchase 
price is estimated to MEUR 22 (MSEK 230). The acquisition was closed 
and consolidated into Securitas as of January 8, 2020.
In order to hedge the share portion of Securitas short-term share-
based incentive scheme 2019, Securitas AB entered into a swap agree-
ment with a third party in the beginning of March 2020. 
There have been no other significant events with effect on the financial 
reporting after the balance sheet date.

87
Securitas Annual and Sustainability Report 2019
Remaining performance obligations
The Group’s revenue can be of either a recurring or non-recurring nature. 
Recurring revenue is normally included in what the Group designates 
as its client contract portfolio. To qualify for inclusion in the client con-
tract portfolio, a contract should normally have a duration of at least 12 
months. However, contracts can be of various lengths ranging from a very 
short duration up to several years, particularly security solution contracts 
where on-site and/or mobile guarding and/or remote guarding are com-
bined with a technology component in terms of equipment owned and 
managed by Securitas and used in the rendering of services. Contracts 
can have a yearly renewal date, but contracts can also be signed without 
a fixed end-date. All contracts normally contain cancellation clauses for 
both Securitas and the client. 
Securitas uses the client retention rate* as a key measurement for how 
long a contract that is included in the client contract portfolio normally is 
operated. The client retention rate in the client contract portfolio per busi-
ness segment and for the Group is shown in the table below.
Client retention rate*, %
2019
2018
Security Services North America
90
91
Security Services Europe
90
93
Security Services Ibero-America
92
92
Other 
86
90
Group
89
91
*Client retention rate is defined as the opening balance client contract portfolio adjusted for annualized 
terminations in percent of opening balance client contract portfolio.
Contracts included in the client contract portfolio can be based on hours 
of work performed or with fixed monthly, quarterly or yearly invoicing and 
also including service level agreements.
In addition to its client contract portfolio, the Group also has revenue of 
a non-recurring nature. For Guarding services this can be from either con-
tract clients or event-based sales. Within Electronic security, alarm instal-
lations are considered non-recurring revenue even if the same clients can 
order new installations from Securitas. Maintenance services performed 
upon request (time and material) is also considered a non-recurring reve-
nue even if the same clients can revert and order further maintenance ser-
vices for the same or for a different site/installation. Product sales (alarms 
and components) is also considered non-recurring revenue.
Corporate risk management services include both recurring and non-
recurring revenue services.
Deferred revenue for performance obligations that is expected to be 
satisfied mainly during 2020 amount to MSEK 965 (951).
  NOTE 7    Financial risk management
Financial risk factors
The Group’s business activities create exposure to financial risks, such 
as interest rate risk, foreign currency risk, financing and liquidity risk and 
credit / counterparty risk, as detailed in the sections below. The Group’s 
overall financial risk management program focuses on the unpredictability 
of the financial markets and aims to minimize potential adverse effects  
on the financial performance of the Group.
Treasury organization and activities
The aim of the treasury organization in Securitas is to support business 
operations by identifying, quantifying and minimizing financial risks and 
to the extent possible, to take advantage of economies of scale in the trea-
sury operations.
Business segments
Treasury operations in the business segments concentrate on improving 
cash flow by focusing on profitability in the business operations, reducing 
capital tied-up in accounts receivable and managing local cash in the most 
efficient way.
Countries
In countries with extensive operations, liquidity surpluses and liquidity 
deficits in local subsidiaries are matched at country level with the help of 
local cash-pooling solutions. In addition, Securitas operates an overall 
cash-pooling structure incorporating countries in the Eurozone, UK and 
US. All local long-term financial requirements are financed directly from 
the Group’s internal bank, Group Treasury Centre (GTC), in Dublin.
Group Treasury Centre
By concentrating financial risk management in a single location, the 
Group can readily monitor and control these risks and benefit from the 
expertise of dedicated treasury personnel. Also, by concentrating internal 
and external financing through GTC, economies of scale can be used to 
obtain the best possible pricing of investments and loans. GTC also has 
responsibility for matching local liquidity surpluses and deficits between 
countries and cash-pools. GTC identifies, evaluates and hedges financial 
risks in co-operation with the operating units. The Board of Directors of 
Securitas AB establishes policies for overall risk management, as well as 
policies covering specific areas such as foreign exchange risks, interest 
rate risk, credit risk, use of derivative financial instruments and investing 
excess liquidity.
Derivatives are used for the following main purposes: hedging the 
interest rate element of external debt and changing its currency profile, 
gearing ratio hedging and hedging of internal borrowings and investments.
Interest rate risk
Interest rate risk is the risk that the Group’s net income will be affected 
by changes in interest payable and / or receivable arising from changes in 
market interest rates. The Group has raised fixed and floating rate debt 
predominately in USD, EUR and SEK. Detailed information on long-term 
borrowings is provided in note 31. The Group uses interest rate deriva-
tives in designated fair value and cash flow hedges to hedge changes in 
the risk-free rate, converting the interest rate profile of this debt. As at 
December 31, 2019 MEUR 671 (671) of issued debt is swapped from 
fixed to floating. Securitas does not expect any ineffectiveness between 
the hedged item and the hedging instrument in fair value hedges as a 
result of the transition to a new benchmark rate. There are two USD-
bonds totaling MUSD 80 (80) swapped from floating to fixed.  These cash 
flow hedges mature in July 2020 and 2021 respectively and will not be 
impacted by the transition to a new benchmark rate. 
The target for the free cash flow to net debt ratio is always to exceed 
0.20. Free cash flow to net debt as of December 31, 2019 was 0.19 
(0.13). The Group’s interest coverage ratio, a measure of its ability to pay 
interest costs, was 9.4 (10.7) as of December 31, 2019.
Information on the Group’s debt profile is provided in the table below as 
well as information on interest rate fixings.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

88
Securitas Annual and Sustainability Report 2019
THE GROUP ’S INTEREST BEARING LIABILITIES AND ASSETS PER CURRENCY AS PER DECEMBER 31, 2019 AND 2018
Currency
Amount, MSEK
Duration (days)
Current
book cost (incl.
credit margin)
Interest  
rates,
+1%
Net impact on
income state-
ment due to
1% increase1
Interest  
rates,
-1% 
Net impact on
income state-
ment due to
1% decrease1
December 31, 2019
USD liabilities
-8 841
753
3.8%
4.0%
-15
3.3%
33
EUR liabilities
-7 464
567
1.6%
2.2%
-38
0.9%
37
GBP liabilities
-319
23
2.4%
3.4%
-3
1.4%
3
SEK liabilities
-3 566
-10
0.4%
1.4%
-28
0.3%
3
Other currencies liabilities
-1 870
19
5.4%
6.4%
-15
4.4%
15
Total liabilities
-22 060
494
2.6%
3.2%
-99
2.1%
91
USD assets
309
3
0.0%
1.0%
2
-1.0%
-2
EUR assets
2 322
27
-0.3%
0.8%
18
-1.3%
-18
GBP assets
27
1
0.0%
1.0%
0
-1.0%
0
SEK assets
928
0
0.0%
1.0%
7
-1.0%
-7
Other currencies assets
933
7
3.8%
4.8%
7
2.8%
-7
Total assets
4 519
16
0.7%
1.7%
34
-0.4%
-34
Total
-17 541
–
3.0%
–
-65
–
57
December 31, 2018
USD liabilities
-7 661
985
3.6%
4.1%
-37
3.1%
26
EUR liabilities
-6 133
633
1.5%
2.1%
-28
0.9%
28
GBP liabilities
-345
30
2.2%
3.2%
-3
1.2%
3
SEK liabilities
-3 245
0
0.0%
1.0%
-25
-1.0%
25
Other currencies liabilities
-978
28
4.3%
5.3%
-8
3.3%
8
Total liabilities
-18 362
624
2.3%
2.9%
-101
1,6%
90
USD assets
635
2
1.8%
2.8%
5
0.8%
-5
EUR assets
1 570
6
-0.3%
0.7%
12
-0.3%
-1
GBP assets
37
2
0.0%
1.0%
0
-1.0%
0
SEK assets
862
7
0.0%
1.0%
7
-1.0%
-7
Other currencies assets
745
7
4.3%
5.3%
6
3.3%
-6
Total assets
3 849
6
1.0%
2.0%
30
0.4%
-19
Total
-14 513
–
2.6%
–
-71
–
71
1 The 1 percent increase / decrease in interest rates is calculated by adjusting the floating rate accordingly and applying this rate to  
the asset / liability to establish the impact on net financial items in the income statement. This is further adjusted by the effective corporation tax rate.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Interest rate fixing 
It is the policy of Securitas to use interest rate derivatives if required to 
manage its interest rate risk and as a consequence the Group’s financing 
costs. The duration of these derivatives does not normally exceed the 
duration of the underlying debt. Group policy allows for the use of both 
options-based and fixed-rate products. There are no options-based prod-
ucts in the financial reporting in 2019 or 2018.
INTEREST FIXING PER CURRENCY1,2
December 31, 2019
December 31, 2020
December 31, 2021
Currency
Amount
MSEK
Amount
MLOC
Rate3 %
Amount
MSEK
Amount
MLOC
Rate3 %
Amount
MSEK
Amount
MLOC
Rate3 %
Final
maturity
USD
6 757
725
3.7%
6 384
685
3.8%
3 066
329
4.4%
October 
2024
EUR
3 713
356
1.5%
3 713
356
1.5%
3 713
356
1.5%
March 2025
Total
10 470
–
–
10 097
–
–
6 779
–
–
	
	
	
	
	
	
	
	
	
1 Refers to interest rate fixing with a maturity in excess of three months.
2 Cash flow hedges are applied to a nominal value of MUSD 80, converting floating rates to the rates 1.6% and 2.0%, maturing in the years 2020 and 2021, respectively.
3 Average rate including credit margin.

89
Securitas Annual and Sustainability Report 2019
Foreign currency risks
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Transaction risk
Transaction risk is the risk that the Group’s net income will be affected  
by changes in the value of commercial flows in foreign currencies due to 
fluctuating exchange rates. The nature of the business is domestic rather 
than cross-border and consequently foreign currency transaction risk is 
not significant. 
Financing of foreign assets – translation risk
Translation risk is the risk that the SEK value of foreign currency equity will 
fluctuate due to changes in foreign exchange rates.
Securitas’ foreign currency capital employed as of December 31, 
2019 was MSEK 36 392 (31 664). Capital employed is financed by loans 
in local currency and shareholders’ equity. This means that Securitas, 
from a Group perspective, has shareholders’ equity in foreign currency 
that is exposed to changes in exchange rates. This exposure gives rise 
to a translation risk and consequently unfavorable changes in exchange 
rates could have a negative effect on the Group’s foreign net assets when 
translated into SEK. With the object of minimizing the impact of changes 
in exchange rates on the Group’s net debt to equity ratio, Securitas aims 
to maintain a long-term debt to equity ratio in USD and EUR that is close 
to the Group’s total debt to equity ratio. Foreign exchange swaps and 
cross currency interest rate swaps are used to change the currency of the 
underlying debt where required in order to achieve this. Net investment 
hedge and cash flow hedge accounting is applied to these swaps.
The tables below show how the Group’s capital employed is distributed 
by currency, and its financing, including derivatives. They also show the 
sensitivity of the net debt and capital employed to changes in the SEK 
exchange rate.
The consolidated statement of income is affected by the translation to 
SEK of the statements of income of foreign subsidiaries. As these subsid-
iaries essentially operate only in local currency, their competitive situation 
is not affected by changes in exchange rates and since the Group as a 
whole is geographically diversified, this exposure is not hedged.
CAPITAL EMPLOYED AND FINANCING PER CURRENCY AS PER DECEMBER 31, 2019 AND 2018	
	
	
	
MSEK
EUR
USD
GBP
Other
currencies
Total foreign
currencies
SEK
Total Group
Total Group
+10%1
Total Group
-10%1
December 31, 2019
Capital employed
11 337
18 390
1 297
5 368
36 392
748
37 140
40 779
33 501
Net debt
-5 086
-8 498
-278
-1 040
-14 902
-2 639
-17 541
-19 031
-16 051
Whereof foreign exchange  
swaps included in net   
investment hedge 2
2 924
-5 889
–
–
-2 965
-2 832
-5 797
-6 094
-5 501
Whereof foreign exchange swaps 
included in cash flow hedge 3
4 484
–
–
–
4 484
-4 484
–
448
-448
Whereof other foreign exchange 
swaps 
441
113
-278
-1 040
-764
2 928
2 164
2 088
2 240
Whereof net debt excluding 
foreign exchange swaps 
-12 935
-2 722
–
–
-15 657
1 749
-13 908
-15 474
-12 342
Non-controlling interests
2
–
–
28
30
–
30
33
27
Net exposure
6 249
9 892
1 019
4 300
21 460
-1 891
19 569
21 715
17 423
Net debt to equity ratio
0.81
0.86
0.27
0.24
0.69
-1.40
0.89
0.88
0.92
December 31, 2018
Capital employed
10 320
15 620
1 219
4 505
31 664
506
32 170
35 336
29 004
Net debt
-4 543
-7 054
-304
-310
-12 211
-2 302
-14 513
-15 734
-13 292
Whereof foreign exchange  
swaps included in net   
investment hedge 2
3 176
-4 309
–
–
-1 133
-2 731
-3 864
-3 977
-3 751
Whereof foreign exchange swaps 
included in cash flow hedge 3
4 401
–
–
–
4 401
-4 401
–
440
-440
Whereof other foreign exchange 
swaps 
73
-449
-304
-310
-990
2 836
1 846
1 747
1 945
Whereof net debt excluding 
foreign exchange swaps 
-12 193
-2 296
–
–
-14 489
1 994
-12 495
-13 944
-11 046
Non-controlling interests
2
–
–
23
25
–
25
28
23
Net exposure
5 775
8 566
915
4 172
19 428
-1 796
17 632
19 575
15 689
Net debt to equity ratio
0.79
0.82
0.33
0.07
0.63
-1.28
0.82
0.80
0.85
	
	
	
	
	
	
	
	
	
1 Changes in capital employed due to changes in foreign exchange rates are either accounted for in other comprehensive income or offset against changes in underlying debt. Consequently, they do not impact net 
income.
2 Relates to a portion of the net investment hedge which is fixed to the amount of MUSD 492 and the USD/SEK rates are 8.48 and 8.21. The balance is a dynamic hedge and rates vary periodically.
3 Currency cash flow hedges are applied to a nominal value of MEUR 430, fixing the EUR/SEK rates at  9.37 and 10.09.  
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

90
Securitas Annual and Sustainability Report 2019
Net debt 
The table below details the changes to net debt during the year. 	
CHANGE IN INTEREST-BEARING NET DEBT AS PER DECEMBER 31, 2019 AND 2018 
2019
2018
MSEK
Liquid funds
Loans and  
other net debt
Total
Liquid funds
Loans and  
other net debt
Total
Opening balance
3 229
-17 742
-14 513
3 611
-15 944
-12 333
Cash flow from operating activities
4 902
–
4 902
3 172
–
3 172
Financial income and expenses paid
-443
–
-443
-432
–
-432
Current taxes paid
-1 191
–
-1 191
-856
–
-856
Payments for acquisition related items
-574
–
-574
-1 755
–
-1 755
Payments for items affecting comparability
-303
–
-303
-117
–
-117
Dividend paid
-1 606
–
-1 606
-1 460
–
-1 460
Lease liabilities
–
-3 332
-3 332
–
–
–
Bond proceeds
1 445
-1 445
–
3 004
-3 004
–
Bond redemption
-792
792
–
-3 480
3 480
–
Commercial paper proceeds
5 098
-5 098
–
2 500
-2 500
–
Commercial paper redemption
-5 300
5 300
–
-1 550
1 550
–
Other changes
-544
544
–
610
-610
–
Real change
692
-3 239
-2 547
-364
-1 084
-1 448
Revaluation of financial instruments1
–
60
60
–
26
26
Translation2
27
-568
-541
-18
-740
-758
Closing balance
3 948
-21 489
-17 541
3 229
-17 742
-14 513
	
	
	
	
	
	
	
	
	
1 Relates to unrealized gains and losses on fair value hedges and cash flow hedges including hedge ineffectiveness.
2 Whereof MSEK -338 (-530) is related to USD and MSEK -103 (-143) is related to EUR.
LIABILITIES FROM FINANCING ACTIVITIES 2019 AND 2018
MSEK
Opening 
balance Jan 1
Cash flows1
Non-cash changes
Closing balance 
Dec 31
Reclassifi­cation
Other changes
Translation
2019
Long-term borrowings
15 858
1 491
-373
54
186
17 216
Short-term borrowings
2 282
-1 438
373
73
–
1 290
Lease liabilities
222
-1 285
–
4 5272
90
3 554
Assets held to hedge borrowings
-516
–
–
-122
–
-638
Total
17 846
-1 232
–
4 532
276
21 422
2018
Long-term borrowings
12 926
3 004
-760
115
573
15 858
Short-term borrowings
3 491
-2 025
760
-44
100
2 282
Lease liabilities
191
-94
–
110
15
222
Assets held to hedge borrowings
-299
–
–
-217
–
-516
Total
16 309
885
–
-36
688
17 846
1 Excluding other derivative positions and dividend paid to shareholders of the Parent Company, which are included in cash flow from financing activities in the consolidated statement of cash flow.
2 Whereof MSEK 3 433 is related to the adoption of IFRS 16 on January 1, 2019.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS

91
Securitas Annual and Sustainability Report 2019
Financing and liquidity risk
The Group’s short-term liquidity is ensured by maintaining a liquidity 
reserve (cash and bank deposits, short-term investments and the unuti-
lized portion of committed credit facilities), which should correspond to a 
minimum of 5 percent of consolidated annual sales. As of December 31, 
2019, the short-term liquidity reserve corresponded to 10 percent (10) of 
the Group’s annual sales.
The Group’s long-term financing risk is minimized by ensuring that the 
level of long-term financing (shareholders’ equity, long-term committed 
loan facilities and long-term bond loans) at least matches the Group’s cap-
ital employed. Per December 31, 2019 long-term financing corresponded 
to 125 percent (135) of the Group’s capital employed. 
Financing of the Group should be well balanced among different 
sources and long-term. The aim is that committed loan facilities and bond 
loans should have an average maturity of more than 3.5 years. As per 
December 31, 2019 the average maturity was 2.7 years. The following 
tables summarize the Group’s liquidity risk at end 2019 and 2018 respec-
tively.
LIQUIDITY REPORT AS PER DECEMBER 31, 2019 AND 2018
MSEK
Total
< 1 year
Between 
1 year 
and 
< 3 years
Between 
3 years 
and  
5 years > 5 years
December 31, 2019
Borrowings,  
principal amount
-18 184
-1 267
-8 605
-5 183
-3 129
Borrowings,  
interest amount
-974
-289
-425
-221
-39
Derivatives outflows 
interest
-412
-127
-188
-65
-32
Other derivatives outflows
-10 705
-6 119
-2 954
–
-1 632
Lease liabilities
-3 809
-1 024
-1 280
-655
-850
Accounts payable
-2 001
-2 001
–
–
–
Total outflows1
-36 085
-10 827
-13 452
-6 124
-5 682
Investments,  
principal amount
2 208
2 208
–
–
–
Derivatives receipts 
interest
284
97
118
51
18
Other derivatives receipts
10 646
6 126
3 017
15
1 488
Accounts receivable
16 120
16 120
–
–
–
Total inflows1
29 258
24 551
3 135
66
1 506
Net cash flows, total2, 3
-6 827
13 724
-10 317
-6 058
-4 176
December 31, 2018
Borrowings,  
principal amount
-17 765
-2 323
-5 196
-3 586
-6 660
Borrowings,  
interest amount
-1 123
-292
-512
-202
-117
Derivatives outflows 
interest
-267
-123
-80
-42
-22
Other derivatives 
outflows
-10 201
-5 802
–
-2 833
-1 566
Lease liabilities
-222
-106
-116
–
–
Accounts payable
-1 833
-1 833
–
–
–
Total outflows1
-31 411
-10 479
-5 904
-6 663
-8 365
Investments,  
principal amount
1 640
1 640
–
–
–
Derivatives receipts 
interest
394
104
194
53
43
Other derivatives receipts
10 250
5 807
23
2 954
1 466
Accounts receivable
15 604
15 604
–
–
–
Total inflows1
27 888
23 155
217
3 007
1 509
Net cash flows, total2, 3
-3 523
12 676
-5 687
-3 656
-6 856
	
	
	
	
1 Refers to gross cash flows. 
2 All contractual cash flows per the balance sheet date are included, including future interest payments.
3 Variable rate cash flows have been estimated using the relevant yield curve as at the balance sheet date.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas has a Revolving Credit Facility with its 12 key relationship 
banks. This credit facility comprises two respective tranches of MUSD 
550 and MEUR 440 and matures in 2022. On December 31, 2019, the 
facility was undrawn. 
Securitas also has a Euro Medium Term Note Program (EMTN) with a 
limit of MEUR 3 000 under which public and private funding can be raised 
on international capital markets. As of December 31,2019 there were ten  
outstanding bond loans with maturities ranging from 2020 to 2025.
In addition, Securitas also has a short-term Swedish commercial paper 
program in the amount of MSEK 5 000. On December 31, 2019,  
MSEK 750 of the facility was drawn. The objective is to have access to 
short-term financing at competitive prices. Pricing is based on the prevail-
ing market rates at time of issuance. 
The table below shows a summary of the credit facilities as of December 
31, 2019.
CREDIT FACILITIES AS PER DECEMBER 31, 2019
Type
Currency
Facility
amount
(million)
Available
amount
(million)
Maturity
EMTN FRN private 
placement
USD
40
0
2020
EMTN FRN private 
placement
USD
40
0
2021
EMTN FRN private 
placement
USD
60
0
2021
EMTN FRN private 
placement
USD
40
0
2021
EMTN Eurobond, 
2.625% fixed
EUR
350
0
2021
EMTN Eurobond, 
1.25% fixed
EUR
350
0
2022
Multi Currency 
Revolving Credit Facility
USD (or 
equivalent)
550
550
2022
Multi Currency 
Revolving Credit Facility
EUR (or 
equivalent)
440
440
2022
EMTN Eurobond, 
1.125% fixed
EUR
350
0
2024
EMTN FRN private 
placement
USD
50
0
2024
EMTN FRN private 
placement
USD
105
0
2024
EMTN Eurobond, 
1.25% fixed
EUR
300
0
2025
Commercial Paper 
(uncommitted)
SEK
5 000
4 250
n/a
In combination with Securitas’ strong cash flow, these sources of financing 
provide liquidity on a short and long-term basis as well as flexibility to 
finance the Group’s expansion.
The graph below shows the maturity profile as of December 31, 2019  
for the Group’s interest-bearing debt.
■■ EUR bond/PP   ■■ USD/PP   ■■ 2022 RCF (drawn)   ■■ 2022 RCF (undrawn)    
 
12 000
10 000
8 000
6 000
4 000
2 000
0
MSEK
2026
2025
2024
2023
2022
2021
2020
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

92
Securitas Annual and Sustainability Report 2019
Credit / counterparty risks
Counterparty risk – accounts receivable
The Group has generally low risk in the accounts receivables for a number 
of reasons. A large proportion of sales are based on contracts with well-
known large and medium sized clients with an established and long-term 
relationship. This provides for transparent and safe collection of invoices. 
New clients are duly reviewed in terms of credit worthiness.
The contract portfolio sales are also diversified in several ways, of 
which the most important is that there are few / no clients that represent 
a significant portion of total sales. Default by a single client then has little 
overall effect. In addition, Securitas provides its services to geographically 
dispersed clients in a large number of sectors including governments, util-
ities, financial sector, travel, logistics and industrial. Hence, the exposure 
to financial distress in any particular sector or region is relatively limited.
Securitas’ services are also, although vital in many aspects, mostly 
ancillary to the business of the clients. This means that the cost of security 
services represents a small fraction of total costs of running ­clients’ busi-
ness, making Securitas less exposed to payment defaults than suppliers 
of services or goods more directly involved in the value chain.
All of this provides for secure collection of the sales generated, which 
is evidenced by low bad debt losses in the range of 0.1 percent of sales in 
the past five years.
Counterparty risk – liquid funds 
The credit quality of interest-bearing receivables is described below, 
where 79 percent (76) of interest-bearing receivables have a rating of 
A1 / P1.
CREDIT QUALITY INTEREST-BEARING RECEIVABLES
MSEK
2019
2018
A1 / P1
3 573
2 926
Other
946
923
Total interest-bearing receivables
4 519
3 849
The Group has policies in place that limit the amount of credit exposure 
to any one financial institution. The use of Credit Support Annexes 
reduces the Group’s counterparty exposures on its outstanding deriva-
tives. Investments of liquid funds may only be made in government paper 
or with financial institutions with a high credit rating. As of December 
31,2019 the weighted average credit rating of these institutions was 
short-term A1 / P1. The largest total exposure for all instrument types to 
any one institution was MSEK 1 123 (1 343).   
Rating
In order to access international debt capital markets in an effective manner, 
Securitas has obtained long-term and short-term credit ratings from 
Standard & Poor’s. The long-term rating is BBB with positive outlook and 
the short-term rating is A-2. The Nordic short-term rating is K-2. 
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Fair value of financial instruments
The methods and assumptions used by the Group in estimating the fair 
value of the financial instruments are:
•	Cash and bank deposits and short-term investments: carrying amounts 
approximate fair values.
•	Derivative and other financial instruments: fair values are estimated 
based on quoted market prices, on prices provided by independent 
brokers, or are calculated on best market prices. The prices used are fair 
values stated excluding accrued interest.
•	Debt: fair values of fixed rate debt are based on either quoted prices  
or are estimated using discounted cash flow calculations based upon 
the Group’s current incremental borrowing rates for similar types of 
borrowings with maturities consistent with those remaining for the 
debt being valued. The fair value of floating rate debt is assumed to 
equal the carrying value of the debt.
REVALUATION OF FINANCIAL INSTRUMENTS1	
MSEK
2019
2018
Recognized in the statement of income
Other financial income and expenses2,3
-1
2
Deferred tax
–
–
Impact on net income for the year
-1
2
Recognized in other comprehensive income
Transfer to cash flow hedging reserve before tax
99
194
Transfer to  cost of hedging reserve before tax
16
-56
Deferred tax on transfer to hedging reserve
-25
-30
Transfer to hedging reserve net of tax
90
108
Transfer to statement of income before tax
-54
-114
Deferred tax on transfer to statement of income
12
25
Transfer to statement of income net of tax
-42
-89
Change of cash flow hedging reserve before tax
45
80
Change of cost of hedging reserve before tax
16
-56
Total change of hedging reserve before tax4
61
24
Deferred tax on total change  
of hedging reserve4
-13
-5
Total change of hedging reserve net of tax
48
19
Total impact on shareholders’ equity  
as specified above
Total revaluation before tax5
60
26
Deferred tax on total revaluation5
-13
-5
Total revaluation after tax
47
21
	
	
	
1 Securitas has early adopted the amendments to IFRS 9, specifically the temporary relief from certain 
accounting requirements to hedging relationships directly affected by the IBOR reform.
2  Related to financial assets and financial liabilities at fair value through profit or loss. 
3  There was no significant ineffectiveness in the fair value hedges or in the cash flow hedges. The 
adjustment to the carrying value of the hedged item in fair value hedges amounted to MSEK 3 (-1).   
4 Total of transfer to hedging reserve and transfer from hedging reserve to statement of income.
5  Total revaluation and deferred tax recognized via statement of income and via other comprehensive 
income.
HEDGING RESERVE AS PER DECEMBER 31, 2019 AND 2018
MSEK
Cost of 
hedging 
reserve 
Interest  rate 
cash flow 
hedges
Currency 
cash flow 
hedges
Total  
before tax
Deferred 
tax
Total net  
of tax
Opening balance January 1, 2019
-56
10
65
19
-4
15
Change in fair value of hedging instrument recognized in other 
comprehensive income
16
-18
117
115
-25
90
Reclassified from other comprehensive income to profit or loss
–
6
-60
-54
12
-42
Closing balance December 31, 2019
-40
-2
122
80
-17
63
Opening balance January 1, 2018
–
5
-10
-5
1
-4
Change in fair value of hedging instrument recognized in other 
comprehensive income
-56
-1
195
138
-30
108
Reclassified from other comprehensive income to profit or loss
–
6
-120
-114
25
-89
Closing balance December 31, 2018
-56
10
65
19
-4
15

93
Securitas Annual and Sustainability Report 2019
The table below discloses carrying values and fair values of financial instruments according to the categories in note 2.
 
FINANCIAL INSTRUMENTS BY CATEGORY – CARRYING AND FAIR VALUES AS PER DECEMBER 31, 2019 AND 2018
2019
2018
MSEK
Carrying value
Fair value
Carrying value
Fair value
Assets
Financial assets at amortized cost
Interest-bearing financial non-current assets (note 23)
224
224
145
145
Other interest-bearing current assets (note 28)
121
121
104
104
Other long-term receivables (note 24)1
481
481
481
481
Accounts receivable (note 26)
16 120
16 120
15 604
15 604
Other current receivables (note 27)2
4 163
4 163
3 907
3 907
Liquid funds (note 29)
3 948
3 948
3 229
3 229
Total financial assets at amortized cost
25 057
25 057
23 470
23 470
Liabilities
Financial liabilities at amortized cost
Long-term loan liabilities (note 31)
5 448
5 448
1 919
1 919
Short-term loan liabilities (note 34)
2 211
2 211
2 367
2 367
Accounts payable
2 001
2 001
1 833
1 833
Other current liabilities (note 35)3
4 780
4 780
4 517
4 517
Financial liabilities designated as hedged item in a fair value hedge (note 31)4,5
14 194
14 475
13 939
14 065
Total financial liabilities at amortized cost
28 634
28 915
24 575
24 701
Derivatives designated for hedging
Interest-bearing financial current assets (note 28)
13
13
17
17
Interest-bearing financial non-current assets (note 23)
213
213
354
354
Total derivatives assets designated for hedging 
226
226
371
371
Interest-bearing financial current liabilities (note 34)
23
23
21
21
Interest-bearing financial long-term liabilities (note 31)
184
184
116
116
Total derivatives liabilities designated for hedging
207
207
137
137
Net total
19
19
234
234
1 Excluding all pension balances and reimbursement rights (note 24)
400
400
302
302
2 Excluding prepaid expenses (note 27)
1 271
1 271
1 149
1 149
3 Excluding employee-related accrued expenses and prepaid income (note 35)
8 156
8 156
7 511
7 511
4 The carrying value of the hedged Items in fair value hedges have been adjusted by MSEK 163 (166).
5 The difference between the carrying value and fair value of short-term and long-term loan liabilities is due to the 
credit margin in the discount rate.
FAIR VALUE – HIERARCHY AS PER DECEMBER 31, 2019 AND 20181
Quoted market prices
Valuation techniques
using observable
market data
Valuation techniques
using non-observable
market data
Total
MSEK
2019
2018  
2019
2018  
2019
2018
2019
2018
Financial assets at fair value through profit or loss
 – 
– 
13
16
–
 – 
13
16
Financial liabilities at fair value through profit or loss
 – 
– 
-14
-10
-425
2
-272
2
-439
-282
Derivatives designated for hedging with positive fair value
 – 
– 
213
356
–
 – 
213
356
Derivatives designated for hedging with negative fair value
 – 
– 
-194
-127
–
 – 
-194
-127
1 There have been no transfers between any of the valuation levels during the year.
2 Related to deferred considerations. These have been recognized mainly based on an assessment  
of the future profitability development in the acquired entities for an agreed period.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

94
Securitas Annual and Sustainability Report 2019
Offsetting financial assets and financial liabilities
For the financial assets and liabilities subject to enforceable master net-
ting arrangements or similar arrangements, each agreement between 
the Group and the counterparty allows for net settlement of the relevant 
financial assets and liabilities when both elect to settle on a net basis. In the 
absence of such an election, financial assets and liabilities will be settled 
on a gross basis. However, each party to the master netting agreement or 
similar agreement will have the option to settle all such amounts on a net 
basis in the event of default of the other party. Per the terms of each agree-
ment, an event of default includes failure by a party to make payment when 
due, failure by a party to perform any obligation required by the agreement 
(other than payment) if such failure is not remedied within periods of 30 to 
60 days after notice of such failure is given to the party, or bankruptcy.
NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Financial assets 
The following financial assets are subject to offsetting, enforceable master netting arrangements or similar agreements.
MSEK
 Gross amounts 
of recognized
financial assets
Gross amounts of
recognized financial
liabilities set off in 
the balance sheet
Net amounts of
financial assets 
presented in  
the balance sheet
Financial 
instruments  
not set off in the 
balance sheet
Net amount
December 31, 2019
Derivative financial assets
226
–
226
19
207
Total
226
–
226
19
207
December 31, 2018
Derivative financial assets
372
–
372
43
329
Total
372
–
372
43
329
Financial liabilities 
The following financial liabilities are subject to offsetting, enforceable master netting arrangements or similar agreements.
MSEK
 Gross amounts 
of recognized
financial liabilities
Gross amounts of
recognized financial
assets set off in  
the balance sheet
Net amounts of
financial liabilities 
presented in  
the balance sheet
Financial 
instruments  
not set off in  
the balance sheet
Net amount
December 31, 2019
Derivative financial liabilities
208
–
208
80
128
Total
208
–
208
80
128
December 31, 2018
Derivative financial liabilities
137
–
137
56
81
Total
137
–
137
56
81
References to other notes
For further information regarding financial instruments, refer to:
•	Note 2 Accounting principles
•	Note 14 Net financial items
•	Note 23 Interest-bearing financial non-current assets
•	Note 28 Other interest-bearing current assets
•	Note 31 Long-term liabilities excluding provisions
•	Note 34 Short-term loan liabilities
•	Note 45 Financial risk management (Parent Company)

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
95
Securitas Annual and Sustainability Report 2019
  NOTE 8    Transactions with related parties
Guarantees on behalf of related parties amount to MSEK 0 (0).  
Information on the remuneration to the Board of Directors and Senior 
Management is provided in note 9. Information on total payroll expenses 
for the Board of Directors and the Presidents of the Group is provided in 
note 12.
For information on the Parent Company’s transactions with related  
parties, refer to note 44 and note 47.
	
   Remuneration to the Board of  
  NOTE 9    Directors and senior management 
General
Principles
The Chairman of the Board and the Directors receive fees in accordance 
with the decision of the Annual General Meeting, which includes separate 
fees for committee work. The employee representatives do not receive 
Directors’ fees.
The Annual General Meeting on May 6, 2019 adopted guidelines for 
remuneration to senior management regarding 2019 in accordance with 
the following:
The fundamental principle is that remuneration and other terms of 
employment for senior management shall be competitive and in accor-
dance with market conditions, in order to ensure that the Securitas Group 
will be able to attract and keep competent senior management employees.
The total remuneration to senior management shall consist of a fixed 
basic salary, variable remuneration, pensions and other benefits. 
In addition to a fixed annual salary the Group Management may also 
receive variable remuneration, which shall be based on the outcome in 
relation to financial goals within the individual’s area of responsibility 
(Group or division) and which shall be aligned with the interest of the 
shareholders. The variable remuneration shall amount to a maximum 
of 60 percent of the fixed annual salary for the President and CEO and a 
maximum of 42–200 percent of the fixed annual salary for other individu-
als of the Group Management. If cash payment of variable remuneration 
has been effected on grounds later proven to be obviously inaccurate, the 
company shall have the possibility to reclaim such paid remuneration.
The Board of Directors shall each year consider whether to propose 
that the Annual General Meeting shall resolve upon share or share price 
related incentive programs. Ahead of the Annual General Meeting 2019, 
the Board of Directors proposes, in addition to the previously decided 
incentive schemes, the implementation of LTI 2019/2021. 
The cost of the company for 2019 in terms of its obligations to pay vari-
able remuneration to the Group Management is estimated to not exceed a 
total of MSEK 99 at maximum outcome (not including potential costs for the 
LTI 2019/2021). Information on previously decided remuneration which has 
not yet been paid can be found in note 9 of the Annual Report for 2018.
Subject to applicable legislation, the entire Group Management shall 
be subject to defined contribution pension plans for which insurance pre-
miums are transferred from the individual’s total remuneration and paid 
by the company during the term of employment. In exceptional cases, 
the value of such insurance premiums can instead be paid as part of the 
remuneration to the members of the Group Management. Variable com-
pensation shall not qualify for pension purposes unless local regulations 
provide otherwise. 
Other benefits, such as company car, special health insurance or occu-
pational health service shall be provided to the extent this is considered 
customary for senior management employees holding equivalent positions 
on the labor market where the senior management employee is active.
At dismissal, the notice period for all senior management employees 
shall amount to a maximum of twelve months with a right to redundancy 
payment after the end of the notice period, equivalent to a maximum of 
100 percent of the fixed salary for a period not exceeding twelve months. 
At resignation by a senior management employee, the notice period shall 
amount to a maximum of six months.
These guidelines shall apply to individuals who are included in the 
Group Management during the term of application of these guidelines. The 
guidelines shall apply to agreements entered into after the adoption by the 
Annual General Meeting, and to changes made in existing agreements after 
this date. The Board shall be entitled to deviate from the guidelines in indi-
vidual cases if there are specific reasons for such deviation.
The Board of Directors proposal to the Annual General Meeting in May 
2020 on guidelines for remuneration to senior management regarding 2020 
is presented in the Report of the Board of Directors, in this Annual Report.
Planning and decision-making process
The Board’s remuneration committee deals with the above matters 
regarding the President and CEO and other members of the Group 
Management, as well as other management levels if the committee so 
decides. The committee presents its proposals to the Board of Directors, 
which takes all decisions. The members of the remuneration committee 
are Marie Ehrling (chairman) and Carl Douglas. The committee has held 
two meetings in 2019.
Board of Directors
Fees to the Board of directors, relating to the period up to the Annual Gen-
eral Meeting 2020 are provided according to the Annual General Meet-
ing’s decision on May 6, 2019. For the 2019 financial year, the Chairman 
Marie Ehrling receives a director’s fee, including committee work fee, of 
MSEK 2.3. The other Directors receive an aggregate director’s fee, includ-
ing committee work fee, of MSEK 5.6. The remuneration for each mem-
ber of the Board of Directors is disclosed in the tables below. The Board of 
Directors is otherwise not entitled to any other compensation except for 
travel and lodging expenses.
President and Chief Executive Officer
The President and CEO Magnus Ahlqvist’s salary for the 2019 financial 
year, amounted to MSEK 16.3. The compensation includes salary in lieu 
of pension amounting to MSEK 2.8 during the time Magnus Ahlqvist 
was resident in the United Kingdom. The President and CEO’s pension 
benefits amounts to 30 percent of the base salary. As from Magnus 
Ahlqvist’s move to Sweden during 2019, pension premiums are paid for a 
defined contribution pension plan and a defined benefit plan which in total 
amounts to 30 percent of the base salary. The change has not impacted 
the total compensation, only the allocation between salary and pension 
premiums. The pension costs for the financial year 2019 amounted to 
MSEK 1.3, which includes premiums to a Swedish defined benefit plan 
(ITP), limited to deductible amounts for tax purposes. The defined benefit 
plan guarantees a lifetime pension from the age of 65 and the pension 
compensation corresponds to a certain percentage of the final salary, 
the maximum pensionable income is currently MSEK 1.9. The pension 
cost for the defined benefit pension plan in 2019 amounted to MSEK 0.2 
(included in the total pension cost for the President and CEO, see also the 
table below). No pension benefits are conditioned by future employment.  
Other salary benefits amounted to MSEK 0.5. Magnus Ahlqvist has 
also continued as Divisional President for Security Services Europe for the 
period up to March 4, 2019, without separate compensation. 
Upon dismissal, the notice period for the President and CEO amounts 
to twelve months with a right to a severance pay after the end of the 
notice period, equivalent to twelve months fixed salary.
The prior President and CEO until March 7, 2018, Alf Göransson, is 
according to an agreement up to March 2020, an advisor to Securitas’ Pres-
ident and CEO Magnus Ahlqvist. In this role Alf Göransson will, among other 
things support in some client relations activities, acquisition related matters 
and industry specific topics. The compensation for the advisory engage-
ment for the 2019 financial year amounted to MSEK 8.2. There are no other 
benefits, variable compensation or pension in this engagement. 
Other members of Group Management
The other Group Management consisted by the end of 2019 of the fol-
lowing fifteen members: Bart Adam (Chief Financial Officer), Martin 
Althén (Chief Information Officer), Helena Andreas, as of February 1, 
2019 (Senior Vice President, Group Brand and Communications), William 
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
96
Barthelemy (Chief Operating Officer, Security Services North America), 
Tony Byerly, as of July 1, 2019 (President, Securitas Electronic Security), 
Jorge Couto, as from July 1, 2019 (Divisional President, Security Services 
Ibero-America), Santiago Galaz (Divisional President, Security Services 
North America), Peter Karlströmer, as of March 4, 2019 (Divisional Presi-
dent, Security Services Europe), Andreas Lindback, as of July 1, 2019 
(Divisional President AMEA, Africa, Middle East and Asia), Jan Lindström 
(Senior Vice President Finance), Aimé Lyagre (Chief Operating Officer 
and Chief Technology Officer, Security Services Europe), Marc Pissens 
(President Aviation), Brian Riis Nielsen, as of July 1, 2019 (SVP for Global 
Clients and leader of Global Clients & Vertical Markets), Frida Rosenholm 
(Senior Vice President, General Counsel) and Henrik Zetterberg (Chief 
Operating Officer, Security Services Europe). 
Luis Posadas (Divisional President, Security Services Ibero-America up 
to June 30) retired and left the Group Management as of June 30, 2019. 
Santiago Galaz (Divisional President Security Services North America up 
to December 31) was appointed Executive Chairman of Securitas North 
America and left the Group Management as of January 1, 2020. William 
Barthelemy (Chief Operating Officer Security Services North America 
up to December 31) retired from this role, left the Group Management 
as of January 1, 2020 and will assist as an advisor and continue working 
with select clients through 2021. Greg Anderson (appointed President, 
North American Guarding, Security Services North America as of January 
1, 2020) and José Castejon (appointed Chief Operating Officer, North 
American Guarding, Security Services North America as of January 1, 
2020), joined the Group Management as of January 1, 2020.
In the 2019 financial year the other members of Group Management 
have received the following remuneration during the time as members. 
Aggregate fixed salaries amounted to MSEK 95.3, and other salary bene­
fits to MSEK 4.8. 
The other members of Group Management have individual pension 
plans. The retirement age varies from country to country and pension 
plan. As described under Principles above, members can allocate part of 
their remuneration to a defined contribution pension plan. All members 
of Group Management have defined contribution pension plans for which 
pension premiums are allocated from the member’s total remuneration 
and paid by the company during the term of employment. These pre-
miums may vary but are limited to amounts deductible for tax purposes 
by the company. In 2019 the pension costs for other members of Group 
Management amounted to MSEK 17.1. No pension benefits are condi-
tioned by future employment.
During 2019 six members had a Swedish defined benefit pension plan 
(ITP), but can also allocate part of their remuneration to a defined contribu-
tion plan. The Swedish defined benefit plan guarantees a lifetime pension 
from the age of 65. The pension compensation corresponds to a certain 
percentage of the final salary, and the maximum pensionable income is 
MSEK 1.9 per employee. This pension benefit is funded through annual 
premiums paid by the company during the term of employment, and the 
pension cost for these six members in 2019 was MSEK 3.3 (included in the 
total pension cost for other Group Management, see also the table below).
Upon dismissal, the notice period and a right to a severance pay after 
the end of the notice period, is equivalent to a maximum of 24 months 
fixed salary, for members of Group Management.
Short- and long-term incentives
Short-term as well as long-term incentives for eligible employees in 
Securitas include clearly measurable performance-based targets that are 
set as close to the local business as possible and aim for long-term profit-
ability of the Group. The performance targets that are required to achieve 
maximum bonus vary depending on the position of the employee but are 
as a principle based on year-on-year improvement of the operating result 
(EBITA) in the area of responsibility and targets based on improvement of 
cash flow or development of real change earnings per share.
Securitas short-term share-based incentive scheme
Securitas’ Annual General Meeting May 6, 2019 resolved on a share and 
cash bonus scheme, a similar incentive scheme that the Annual General 
Meeting 2018 resolved on. The participants in the scheme have a vari-
able remuneration based on performance. Two thirds of the variable 
remuneration/ bonus will, according to the incentive scheme, be settled in 
cash the year after the performance year, while shares will be purchased 
for the remaining one third. The bonus criteria is based on individual per-
formance and / or the performance for the part of the Group that the indi-
vidual is responsible for. For Securitas there are no other material costs 
than the allotted bonus and related social benefits.
The share purchase in Securitas will be handled by trading on the 
Nasdaq Stockholm exchange through a swap agreement. Shares are pur-
chased corresponding to one third of the total achieved bonus amount. 
The purchased shares will be allotted to the participants in March, two 
years following the performance year, given that they are still employed 
by the Group, except where an employee has left his/her employment due 
to retirement, death or long-term disability, in which case the employee 
shall have a continued right to receive bonus shares. Securitas will not 
issue any new shares or similar due to this incentive scheme. The purpose 
is to replace cash bonus with shares in Securitas AB and thus increase the 
employees’ ownership in Securitas.
The short-term share-based incentive scheme includes two partici-
pants from other Group Management that are entitled to receive the 
share part according to the scheme. In March 2020, shares in Securitas 
AB have been purchased corresponding to the value of the total share-
based remuneration. The shares have been purchased through a swap 
agreement, based on the current market price at the time. The shares will 
be allotted to the participants during the first quarter 2021, provided that 
they are still employed by the Group or have retired.
Securitas long-term share-based incentive scheme
Securitas’ Annual General Meeting May 6, 2019 resolved on a new share-
based bonus scheme, LTI 2019/2021, for the President and CEO, other 
members of Group management and certain key employees all in all to up 
to 80 participants. For the qualifying participants the scheme is intended 
to be an alternative to the short-term share-based incentive scheme 
described above. The new scheme will be based on different principles 
than the existing and previous share-based incentive schemes and par-
ticipants in the new long-term scheme will not be entitled to participate 
in the short-term share-based incentive scheme. In order to participate 
in the scheme, which runs over the period 2019 to 2021, participants 
have to invest Securitas series B shares at market price or nominate 
already vested or currently vesting shares under the short-term incentive 
schemes. 
The LTI 2019/2021 incentive includes the President and CEO Magnus 
Ahlqvist and 12 members of other Group Management.
For every share thus purchased or invested the company will grant so 
called performance awards free of charge in as per below:
Category 1 (the President and CEO): maximum five performance 
awards per each invested share.
Category 2 (Group Management): maximum four performance awards 
per each invested share.
The performance conditions are linked to the development of real 
change in earnings per share (if applicable excluding items affecting 
comparability) and the outcome is calculated yearly, whereby one third is 
measured against the outcome of the first year (2019), one third against the 
second year (2020) and one third against the third year (2021). The award 
of shares is in addition to the fulfilment of performance conditions contin-
gent on the employment as per the vesting day in February 2022 and that 
the invested shares are kept during the whole vesting period. The number 
of shares awarded thus will also include compensation for dividend during 
the vesting period by increasing the number of shares awarded. 
The cost for the service rendered under the long-term incentive pro-
gram is spread over the vesting period and is based on a fair value on the 
grant date for Securitas series B share of SEK 161.40 per share for the 
program 2019 to 2021. 
See further information in note 2 and 12. Information regarding the 
final allocation of shares to the Group Management in March 2020 under 
the 2018 share-based incentive scheme, as well as the potential alloca-
tion of shares in 2021 under the 2019 share-based incentive scheme and 
potential allocation of shares in 2022 under the long-term share-based 
incentive LTI 2019/2021 and the fair value of these shares, are disclosed 
in the tables below.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
97
Securitas Annual and Sustainability Report 2019
Short- and long-term variable compensation 2019
For the President and CEO Magnus Ahlqvist the variable short-term 
compensation relating to the 2019 performance amounted to MSEK 3.6, 
which will be paid in cash in 2020. Long-term variable compensation 
referring to the LTI 2019/2021 amounted to MSEK 0.4, which will be 
potentially allocated in shares in 2022.
The aggregate short-term variable compensation relating to the 2019 
performance to the other members of Group management amounted 
to MSEK 44.0, whereof MSEK 6.6 will be allocated in shares under the 
short-term share-based incentive in 2021 and MSEK 37.4 will be paid in 
cash in 2020. Long-term variable compensation to the other members 
of Group Management relating to the 2019 performance under the LTI 
2019/2021, amounted to MSEK 0.9, which will potentially be allocated as 
award shares in 2022.
During 2019 four members of other Group Management have had 
other long-term incentive plans, which are provided for during the perfor-
mance year. Two plans are reconciled to the annual performance, paid in 
the following year 2020. For two plans a reconciliation of performance will 
be made including 2020, with a potential payment during 2021, condi-
tioned by that the performance targets have been met. The provision for 
other long-term variable compensation relating to the 2019 performance 
amounted to MSEK 11.0. The accumulated provision for other long-term 
bonus programs amounted to MSEK 14.5 as of December 31, 2019, 
whereof MSEK 11.8 is paid in 2020. At resignation by a management 
employee, any unpaid long-term bonus will stay with the company.
ALLOCATION OF SHARES TO GROUP MANAGEMENT RELATING TO 
SECURITAS SHORT-TERM AND LONG-TERM SHARE-BASED INCENTIVE 
SCHEMES 2019
Number of shares1
Fair value2, MSEK
2019
2019
Magnus Ahlqvist, President and CEO3
2 197
0.4
Other members of Group Management
57 624
7.6
Total holdings
59 821
8.0
	
	
1  Potential allocation of shares 2021, according to Securitas short-term share-based incentive 
scheme 2019, according to purchase prices for Securitas Series B shares in March 2020, and for 
Securitas long-term share-based incentive LTI 2019/2021, to be allocated in 2022.
2  Fair value of potential allocation of shares based for 
a. Securitas short-term share-based incentive 2019 on currency rates as of February 28, 2020  
     and Securitas Series B share purchase prices in March 2020. 
b. Securitas long-term share-based incentive LTI 2019/2021, SEK 161.40 per share.
 
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
Remuneration to the Board of Directors and Group Management
REMUNERATION RELATED TO 2019
KSEK
Base  
salary / fee
Other  
benefits
Variable 
compensation4
Pension
Total 
remuneration
Marie Ehrling, Chairman of the Board1
2 300
–
–
–
2 300
Carl Douglas, vice Chairman1
895
–
–
–
895
Ingrid Bonde1
835
–
–
–
835
John Brandon
635
–
–
–
635
Anders Böös1
835
–
–
–
835
Fredrik Cappelen1
960
–
–
–
960
Sofia Schörling Högberg1
835
–
–
–
835
Dick Seger
635
–
–
–
635
Subtotal Board of Directors
7 930
–
–
–
7 930
Magnus Ahlqvist, President and CEO2
16 253
479
3 959
1 300
21 991
Other members of Group Management3
95 294
4 818
55 902
17 064
173 078
Subtotal President and CEO and Group Management
111 547
5 297
59 861
18 364
195 069
Total
119 477
5 297
59 861
18 364
202 999
Above information refers to full year remuneration for the current Group Management, unless stated 
otherwise. The Board of Directors has no pension benefits.
1  Including remuneration for committee work.
2  Base salary and 30% salary in lieu of pension contributions KSEK 2 773 and translation difference 
from GBP for part of salary paid in the United Kingdom according to agreement.
3  Other members of Group Management consisted as of December 31, 2019 of 15 persons. The  
compensation for member who left the Group Management during the year is included. 
4  Refer to the cost for 2019 for Securitas incentive scheme for cash and share-based bonus and long-
term incentive plans, see also separate table for the share-based part.
REMUNERATION RELATED TO 2018
KSEK
Base  
salary / fee
Other  
benefits
Variable 
compensation5
Pension
Total 
remuneration
Marie Ehrling, Chairman of the Board1
2 100
–
–
–
2 100
Carl Douglas, vice Chairman1
895
–
–
–
895
Ingrid Bonde1
760
–
–
–
760
John Brandon
580
–
–
–
580
Anders Böös1
760
–
–
–
760
Fredrik Cappelen1
865
–
–
–
865
Sofia Schörling Högberg1
760
–
–
–
760
Dick Seger
580
–
–
–
580
Subtotal Board of Directors
7 300
–
–
–
7 300
Magnus Ahlqvist, President and CEO (1 March – 31 December)2
14 666
181
6 386
–
21 233
Alf Göransson, President and CEO (1 January – 28 February)3
2 500
28
–
757
3 285
Other members of Group Management4
71 456
3 269
63 318
10 639
148 682
Subtotal President and CEO and Group Management
88 622
3 478
69 704
11 396
173 200
Total
95 922
3 478
69 704
11 396
180 500
Above information refers to full year remuneration for the current Group Management, unless stated 
otherwise. The Board of Directors has no pension benefits.
1 Including remuneration for committee work.
2 Base salary and 30% salary in lieu of pension contributions KSEK 3 404 and translation difference 
from GBP for part of salary paid in the United Kingdom according to agreement.
3 In addition, salary for the period March 1 to March 7, 2018 amounted to KSEK 288. Compensation 
for advisory engagement for the period March 8 to December 31, 2018 amounted KSEK 7 994. 
There are no other benefits, variable compensation or pension in this engagement.
 4 Other members of Group Management consisted as of December 31, 2018 of ten persons. The 
compensation for Magnus Ahlqvist in the role as Divisional President Security Services Europe dur-
ing the period January 1 to February 28, 2018 is included in this amount, as well as for one member 
who left the Group Management during 2018.
5 Refer to the cost for 2018 for Securitas incentive scheme for cash and share-based bonus and long-
term incentive plans, see also separate table for the share-based part.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
98
Shareholdings
The Board of Directors’ and Group Management’s shareholdings through acquisitions on the stock market as of December 31, 2019, as well as the 
­allocation of shares to the Group Management according to Securitas share-based incentive scheme in March 2020 are detailed in the table below.
BOARD OF DIRECTORS’ AND GROUP MANAGEMENT’S HOLDINGS OF SECURITAS SERIES A AND B SHARES1	
	
	
	
A shares
A shares
B shares
B shares
B shares
2019
2018
20198
20188
Allocation
March 20209
Marie Ehrling, Chairman of the Board
–
–
10 000
7 000
–
Carl Douglas, vice Chairman2
12 642 600
12 642 600
27 190 000
27 190 000
–
Ingrid Bonde
–
–
2 600
2 600
–
John Brandon
–
–
10 000
10 000
–
Anders Böös
–
–
25 000
25 000
–
Fredrik Cappelen
–
–
4 000
4 000
–
Sofia Schörling Högberg3
4 500 000
4 500 000
10 419 039
12 076 798
–
Dick Seger
–
–
26
26
–
Magnus Ahlqvist, President and CEO4
–
–
111 430
108 989
18 274
Bart Adam
–
–
43 555
37 027
17 213
Martin Althén
–
–
3 478
1 544
4 332
Helena Andreas6
–
–
2 045
–
–
William Barthelemy
–
–
70 859
62 109
10 630
Tony Byerly6
–
–
0
–
0
Jorge Couto6
–
–
0
–
4 498
Santiago Galaz
–
–
91 670
238 406
40 407
Peter Karlströmer6
–
–
6 196
–
–
Andreas Lindback6
–
–
0
–
2 450
Jan Lindström
–
–
13 230
11 395
4 002
Aimé Lyagre
–
–
19 952
26 510
9 794
Marc Pissens
–
–
37 700
62 022
9 400
Luis Posadas5
–
–
–
45 149
–
Brian Riis Nielsen6
–
–
0
–
6 510
Frida Rosenholm
–
–
464
0
1 631
Henrik Zetterberg7
–
–
4 091
2 544
4 853
Total holdings
17 142 600
17 142 600
38 065 335
39 911 119
133 994
	
	
	
	
	
1 Information refers to shareholdings as of December 31, 2019 and 2018.
2 Through family and Investment AB Latour.
3 Through family  and Melker Schörling AB. 
4 Holds in addition to B-shares according to the table, 200 000 share options regarding acquisition of 
Securitas series B-shares, issued by Melker Schörling AB and Investment AB Latour.
5 Has left the Group Management during 2019, why actual  holdings is not applicable.
6 Has joined the Group Management during 2019, why earlier holdings is not applicable.
7 Holds in addition to B-shares according to the table, 45 000 share options regarding acquisition of 
Securitas series B-shares, issued by Melker Schörling AB and Investment AB Latour.
8 Holdings as of December 31 excluding potential allocation of shares according to Securitas sharebased 
incentive scheme (see footnote 9 below).
9  Actual allocation of shares in March 2020 according to Securitas share-based incentive scheme 2018, 
including shares corresponding to dividend decided related to potential allocation of shares during 2019. 
The gross number of allocated shares is stated, of which part of the shares may have been sold to cover 
tax on the benefit. Other holdings of Securitas Series B shares in March 2020 are not included. 
  NOTE 10    Segment reporting 
Segment structure
The Group’s operations are divided into three reportable segments: 
Security Services North America, Security Services Europe and Security 
Services Ibero-America. 
All segments apply the accounting principles explained in note 2. The 
segment reporting follows the format of Securitas’ financial model, which 
provides a foundation for financial planning and reporting from branch office 
level up to the Board of Directors. Acquisitions of subsidiaries are therefore 
excluded from the operating cash flow. All material acquisitions are stated 
at business segment level in the report of the Board of Directors under the 
heading Acquisitions and divestitures.
Security Services North America
Security Services North America provides protective services in the US, 
Canada and Mexico. The operations in the US are organized in four special-
ized units; Guarding, Electronic Security, Pinkerton Corporate Risk Manage-
ment and Critical Infrastructure Services. Guarding includes on-site, mobile 
and remote guarding and the unit for global and national accounts, as well as 
Canada and Mexico. There are also specialized client segment units, such as 
aviation, healthcare, manufacturing and oil and gas.  In total, there are approxi-
mately 700 branch managers and 121 000 employees.
Security Services Europe
Security Services Europe provides protective services across Europe with 
operations in 27 countries, whereof 15 countries provide airport security. The 
full range of protective services includes on-site, mobile and remote guarding, 
electronic security, fire and safety services and corporate risk management. In 
addition there is a specialized unit for global client contracts. In total, the orga-
nization has approximately 730 branch managers and 124 000 employees. 
Security Services Ibero-America 
Security Services Ibero-America provides protective services in nine Latin 
American countries as well as in Portugal and Spain in Europe. Airport 
security is offered in seven countries. The offered services include on-site, 
mobile and remote guarding, electronic security, fire and safety services and 
corporate risk management. Security Services Ibero-America has a com-
bined total of approximately 160 branch managers and 64 000 employees.
Other
Other includes all other operating segments as well as general administrative 
expenses, expenses for head offices and other central expenses. All other oper-
ating segments comprise the operations in Africa, the Middle East and Asia. 
█  Security  
Services North 
America 44%
█  Security  
Services Europe 
43%
█  Security Services 
Ibero-America 12%
█  Other 1%
█  Security Services 
North America 33%
█  Security Services 
Europe 34%
█  Security Services 
Ibero-America 17%
█  Other 16%
SALES PER SEGMENT
EMPLOYEES PER SEGMENT

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
99
Securitas Annual and Sustainability Report 2019
JANUARY – DECEMBER 20191
MSEK
Security
Services
North America
Security
Services
Europe
Security 
Services
Ibero-America
Other
Total
segments
Eliminations
Group
Income
Sales, external
48 480
47 247
13 098
2 074
110 899
–
110 899
Sales, intra-group
19
1
1
2
23
-23
–
Total sales
48 499
47 248
13 099
2 076
110 922
-23
110 899
Organic sales growth, %
4
2
14
–
–
–
4
Operating income before amortization2
3 003
2 582
614
-461
5 738
–
5 738
of which share in income of associated companies
-11
–
–
41
30
–
30
Operating margin, %
6.2
5.5
4.7
–
5.2
–
5.2
Amortization of acquisition  
related intangible assets
-68
-159
-23
-21
-271
–
-271
Acquisition related costs
-99
43
-1
-5
-62
–
-62
Items affecting comparability
-119
-54
-3
-33
-209
–
-209
Operating income after amortization
2 717
2 412
587
-520
5 196
–
5 196
Financial income and expenses
–
–
–
–
–
–
-578
Income before taxes
–
–
–
–
–
–
4 618
Taxes
–
–
–
–
–
–
-1 256
Net income for the year
–
–
–
–
–
–
3 362
Operating cash flow
Operating income before amortization
3 003
2 582
614
-461
5 738
–
5 738
Investments in non-current  
tangible and intangible assets
-817
-1 487
-410
-296
-3 010
–
-3 010
Reversal of depreciation2
627
1 418
472
173
2 690
–
2 690
Change in operating capital employed
-467
263
-30
-282
-516
–
-516
Cash flow from operating activities
2 346
2 776
646
-866
4 902
–
4 902
Cash flow from operating activities, %
78
108
105
–
–
–
85
Capital employed and financing
Operating non-current assets
2 803
5 002
923
1 001
9 729
–
9 729
Accounts receivable
6 690
6 530
2 713
300
16 233
-113
16 120
Other assets
3 609
1 667
534
2 134
7 944
-162
7 782
Other liabilities
-6 169
-9 274
-2 044
-3 319
-20 806
275
-20 531
Total operating capital employed
6 933
3 925
2 126
116
13 100
–
13 100
Operating capital employed as % of sales
14
8
16
–
–
–
12
Goodwill
11 480
8 692
1 477
508
22 157
–
22 157
Acquisition related intangible assets
771
629
33
130
1 563
–
1 563
Shares in associated companies
18
38
–
264
320
–
320
Total capital employed
19 202
13 284
3 636
1 018
37 140
–
37 140
Return on capital employed, %
15
20
18
–
–
–
15
Net debt
–
–
–
–
–
–
17 541
Shareholders’ equity
–
–
–
–
–
–
19 599
Total financing
–
–
–
–
–
–
37 140
Net debt equity ratio, multiple
–
–
–
–
–
–
0.89
Assets and liabilities
Non-interest-bearing assets
25 371
22 558
5 680
2 498
56 107
-275
55 832
Unallocated non-interest-bearing assets3
–
–
–
–
–
–
1 839
Unallocated interest-bearing assets
–
–
–
–
–
–
4 519
Total assets
–
–
–
–
–
–
62 190
Shareholders’ equity
–
–
–
–
–
–
19 599
Non-interest-bearing liabilities
6 169
9 274
2 044
854
18 341
-275
18 066
Unallocated non-interest-bearing liabilities3
–
–
–
–
–
–
2 465
Unallocated interest-bearing liabilities
–
–
–
–
–
–
22 060
Total liabilities
–
–
–
–
–
–
42 591
Total shareholders’ equity and liabilities
–
–
–
–
–
–
62 190
	
	
1  Securitas has adopted IFRS 16 Leases as of January 1, 2019. As a consequence, certain lines in the consolidated financial statements and segment overviews as well as key ratios are not comparable with the 
preceding year. For further information refer to note 41.
2  Depreciation and amortization of tangible and non-acquisition related intangible assets per segment are specified on the line Reversal of depreciation in the statement of cash flow above. Further information 
regarding depreciation and amortization is provided in note 13.
3  Included in Other in the table Capital employed and financing.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
100
JANUARY – DECEMBER 2018
MSEK
Security
Services
North America
Security
Services
Europe
Security 
Services
Ibero-America
Other
Total
segments
Eliminations
Group
Income
Sales, external
42 360
45 040
12 313
1 754
101 467
–
101 467
Sales, intra-group
6
–
2
1
9
-9
–
Total sales
42 366
45 040
12 315
1 755
101 476
-9
101 467
Organic sales growth, %
6
4
12
–
–
–
6
Operating income before amortization1
2 589
2 511
550
-346
5 304
–
5 304
of which share in income of associated companies
-9
0
–
40
31
–
31
Operating margin, %
6.1
5.6
4.5
–
5.2
–
5.2
Amortization of acquisition  
related intangible assets
-54
-158
-30
-18
-260
–
-260
Acquisition related costs
-84
-35
–
-1
-120
–
-120
Items affecting comparability
-155
-268
–
-32
-455
–
-455
Operating income after amortization
2 296
2 050
520
-397
4 469
–
4 469
Financial income and expenses
–
–
–
–
–
–
-441
Income before taxes
–
–
–
–
–
–
4 028
Taxes
–
–
–
–
–
–
-1 007
Net income for the year
–
–
–
–
–
–
3 021
Operating cash flow
Operating income before amortization
2 589
2 511
550
-346
5 304
–
5 304
Investments in non-current  
tangible and intangible assets
-478
-1 169
-274
-267
-2 188
–
-2 188
Reversal of depreciation1
368
917
286
122
1 693
–
1 693
Change in operating capital employed
-660
-603
-235
-139
-1 637
–
-1 637
Cash flow from operating activities
1 819
1 656
327
-630
3 172
–
3 172
Cash flow from operating activities, %
70
66
59
–
–
–
60
Capital employed and financing
Operating non-current assets
1 429
3 094
660
804
5 987
–
5 987
Accounts receivable
6 081
6 722
2 630
264
15 697
-94
15 603
Other assets
3 286
1 538
552
1 684
7 060
-1
7 059
Other liabilities
-5 865
-9 177
-1 937
-2 566
-19 545
95
-19 450
Total operating capital employed
4 931
2 177
1 905
186
9 199
–
9 199
Operating capital employed as % of sales
11
5
15
–
–
–
9
Goodwill
10 784
8 469
1 468
340
21 061
–
21 061
Acquisition related intangible assets
588
734
55
81
1 458
–
1 458
Shares in associated companies
192
37
–
223
452
–
452
Total capital employed
16 495
11 417
3 428
830
32 170
–
32 170
Return on capital employed, %
16
23
17
–
–
–
15
Net debt
–
–
–
–
–
–
14 513
Shareholders’ equity
–
–
–
–
–
–
17 657
Total financing
–
–
–
–
–
–
32 170
Net debt equity ratio, multiple
–
–
–
–
–
–
0.82
Assets and liabilities
Non-interest-bearing assets
22 360
20 594
5 365
1 853
50 172
-95
50 077
Unallocated non-interest-bearing assets2
–
–
–
–
–
–
1 543
Unallocated interest-bearing assets
–
–
–
–
–
–
3 849
Total assets
–
–
–
–
–
–
55 469
Shareholders’ equity
–
–
–
–
–
–
17 657
Non-interest-bearing liabilities
5 865
9 177
1 937
423
17 402
-95
17 307
Unallocated non-interest-bearing liabilities2
–
–
–
–
–
–
2 143
Unallocated interest-bearing liabilities
–
–
–
–
–
–
18 362
Total liabilities
–
–
–
–
–
–
37 812
Total shareholders’ equity and liabilities
–
–
–
–
–
–
55 469
	
	
1 Depreciation and amortization of tangible and non-acquisition related intangible assets per segment are specified on the line Reversal of depreciation in the statement of cash flow above. 
Further information regarding depreciation and amortization is provided in note 13.
2 Included in Other in the table Capital employed and financing.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
101
Securitas Annual and Sustainability Report 2019
GEOGRAPHICAL INFORMATION1	
Total sales from
external clients2
Non-current
assets3
MSEK
2019
2018
2019
2018
US
44 558
38 728
14 120
12 341
Sweden1
5 061
4 973
2 269
1 525
All other countries4
61 280
57 766
17 286
15 056
Total countries
110 899
101 467
33 675
28 922
Non-current assets  
not listed by country3
–
–
1 449
1 496
Total non-current assets
–
–
35 124
30 418
	
	
	
	
1 Geographical information related to sales and non-current assets is disclosed for Sweden (which is 
Securitas’ country of domicile) and for all individual countries where the sales or non-current assets 
exceed 10 percent of the total amount for the Group.
2 Based on the location of sales offices and corresponds in all material aspects to the geographical 
location of the clients.
3 Financial instruments, deferred tax assets and post-employment benefit assets are not specified  
by country. These are instead reported on the line Non-current assets not listed by country.
4 Including elimination of intra-group sales.
  NOTE 11    Operating income
Statement of income
The table below illustrates the statement of income in summary classified 
according to type of cost.
	
MSEK
2019
2018
Total sales
110 899
101 467
Other operating income
34
30
Salaries (note 12)
-70 879
-64 550
Social benefits (note 12)
-15 148
-13 982
Depreciation and amortization (notes 13, 18, 19, 
20, 21)
-2 961
-1 953
Bad debt losses (note 26)
-159
-137
Other operating expenses
-16 590
-16 406
Total operating expenses
-105 737
-97 028
Operating income
5 196
4 469
	
	
	
Exchange rate differences 
Exchange rate differences included in operating income amounted to 
MSEK -9 (9).
Exchange rate differences included in net financial items are specified 
in note 14.
Items affecting comparability
Items affecting comparability consists of two major parts. The first is the 
cost savings program in Security Services Europe that was executed in 
the second half of 2018. The total cost during 2018 amounted to MSEK 
-268 and mainly relate to organizational restructuring charges with the 
bulk relating to staff-related items. During 2019 no additional costs have 
been recognized in the statement of income.
The second part is in relation to two major transformation programs 
for the further digitization of the company. The first program relates to 
the global IS/IT foundation throughout the Group. The second program 
is driving business transformation of Security Services North America. 
Related to these two programs, MSEK -209 (-187) has been recognized 
as items affecting comparability in the income statement, of which MSEK 
-119 (-155) relate to Security Services North America and MSEK -90 
(-32) to the other segments. Costs relate primarily to the impairment 
of assets, organizational restructuring charges and other non-recurring 
items.  
ITEMS AFFECTING COMPARABILITY
MSEK
2019
2018
IS/IT transformation programs
-209
-187
Cost savings program, Security Services Europe
–
-268
Total items affecting comparability
-209
-455
	
	
	
	
ITEMS AFFECTING COMPARABILITY ALLOCATED PER FUNCTION
MSEK
2019
2018
Production expenses
–
-39
Selling and administrative expenses
-209
-416
Total items affecting comparability  
allocated per function
-209
-455
	
	
	
	
ITEMS AFFECTING COMPARABILITY ALLOCATED PER SEGMENT
MSEK
2019
2018
Security Services North America
-119
-155
Security Services Europe
-54
-268
Security Services Ibero-America
-3
–
Other
-33
-32
Total items affecting comparability  
allocated per segment
-209
-455
	
	
	
CASH FLOW IMPACT FROM ITEMS AFFECTING COMPARABILITY
MSEK
2019
2018
Items affecting comparability according to the 
statement of income
-209
-455
Cash flow
-303
-117
Adjustment for effect on cash flow from items 
affecting comparability
-94
338
	
	
	
	
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
102
Acquisition related costs 
The tables below specify what acquisition related costs are related to 
and how they would have been classified per function in the statement of 
income if the items had not been disclosed separately on the face of the 
statement of income. The tables also specify how the acquisition related 
costs are split by segment. There is also a specification of the cash flow 
impact from acquisition related costs.
ACQUISITION RELATED COSTS	
	
MSEK
2019
2018
Restructuring and integration costs
-18
-90
Transaction costs
-24
-25
Revaluation of deferred considerations
65
-5
Step acquisitions
-85
–
Total acquisition related costs
-62
-120
	
ACQUISITION RELATED COSTS ALLOCATED PER FUNCTION
MSEK
2019
2018
Production expenses
-5
-3
Selling and administrative expenses1
-57
-117
Total acquisition related  
costs allocated per function
-62
-120
	
	
	
1 All transaction costs and revaluation of deferred considerations would have been classified  
as selling and administrative expenses in the statement of income if they had not been disclosed  
separately on the face of the statement of income.
ACQUISITION RELATED COSTS ALLOCATED PER SEGMENT
MSEK
2019
2018
Security Services North America
-99
-84
Security Services Europe
43
-35
Security Services Ibero-America
-1
–
Other
-5
-1
Total acquisition related  
costs allocated per segment
-62
-120
CASH FLOW IMPACT FROM ACQUISITION RELATED COSTS
MSEK
2019
2018
Acquisition related costs according  
to the statement of income
-62
-120
Cash flow
-80
-97
Adjustment for effect on cash flow from 
acquisition related costs
-18
23
Audit fees and reimbursements 
The table below specifies what audit fees and reimbursements are  
related to.
	
MSEK
2019
2018
PwC
Audit assignments1
59
42
Additional audit assignments1
3
6
Tax assignments1
16
12
Other assignments1,2
13
25
Total PwC
91
85
Other auditors
Audit assignments
4
4
Total
95
89
	
	
	
1  Audit assignments amounts to MSEK 59 whereof MSEK 11 to PwC Sweden. Additional audit assign-
ments amounts to MSEK 3 whereof MSEK 2 to PwC Sweden. Tax assignments amounts to MSEK 
16 whereof MSEK 1 to PwC Sweden. Other assignments amounts to MSEK 13 whereof MSEK 1 to 
PwC Sweden. 
2  In 2018, MSEK 19 pertained to advisory services regarding the acquisition of Kratos Public Safety 
and Security in North America.
Additional audit assignments mainly comprise review of the interim 
report for the second quarter as well as review of financial reporting and 
internal control in additional countries than those included in the agreed 
audit plan. Tax assignments mainly comprise tax return compliance, 
transfer pricing and questions related to tax legislation compliance. Other 
services mainly comprise services related to acquisitions, special IT audits 
and review of pension plans.
  NOTE 12    Personnel
AVERAGE NUMBER OF YEARLY EMPLOYEES: DISTRIBUTION BETWEEN WOMEN AND MEN1
Women
Men
Total
2019
2018
2019
2018
2019
2018
Security Services North America
33 763
33 777
76 064
76 850
109 827
110 627
Security Services Europe
21 192
20 285
89 324
89 399
110 516
109 684
Security Services Ibero-America
9 419
9 052
53 641
53 429
63 060
62 481
Other
3 176
2 778
15 476
14 743
18 652
17 521
Total
67 550
65 892
234 505
234 421
302 055
300 313
	
	
	
	
	
	
	
	
	
In 2019, the number of Board members and Presidents was 102 (96), of whom 10 (7) were women.
STAFF COSTS FOR BOARD OF DIRECTORS AND PRESIDENTS
2019
2018
Of which bonuses
MSEK
Salaries
Social
benefits
(of which
pensions)
Salaries
Social
benefits
(of which
pensions)
2019
2018
Security Services North America
165
38
(20)
148
32
(18)
69
69
Security Services Europe
103
35
(12)
101
27
(9)
28
33
Security Services Ibero-America
48
4
(0)
45
4
(0)
13
10
Other
100
28
(8)
102
25
(7)
23
33
Total
416
105
(40)
396
88
(34)
133
145
1 Average number of yearly employees exclude employees in associated companies. A complete specification of the average number of yearly employees by country can be obtained from the Parent Company.
Further information regarding the Group’s pensions and other long-term employee benefits is provided in note 32.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
103
Securitas Annual and Sustainability Report 2019
STAFF COSTS FOR OTHER EMPLOYEES	
	
	
	
	
	
	
	
	
2019
2018
MSEK
Salaries
Social
benefits
(of which 
pensions)
Salaries
Social
benefits
(of which 
pensions)
Security Services North America
32 838
5 515
(482)
28 651
4 859
(429)
Security Services Europe
27 724
7 374
(866)
26 267
7 075
(793)
Security Services Ibero-America
8 302
1 949
(44)
7 848
1 814
(33)
Other
1 599
205
(76)
1 388
146
(55)
Total
70 463
15 043
(1 468)
64 154
13 894
(1 310)
TOTAL STAFF COSTS: BOARD OF DIRECTORS, PRESIDENTS AND OTHER EMPLOYEES
2019
2018
MSEK
Salaries
Social
benefits
(of which
pensions)
Salaries
Social
benefits
(of which
pensions)
Security Services North America
33 003
5 553
(502)
28 799
4 891
(447)
Security Services Europe
27 827
7 409
(878)
26 368
7 102
(802)
Security Services Ibero-America
8 350
1 953
(44)
7 893
1 818
(33)
Other
1 699
233
(84)
1 490
171
(62)
Total
70 879
15 148
(1 508)
64 550
13 982
(1 344)
	
	
	
	
	
	
	
	
	
 
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
Securitas short-term share-based incentive scheme
Securitas’ Annual General Meeting May 6, 2019 resolved on a share and 
cash bonus scheme, a similar incentive scheme that the Annual General 
Meeting 2018 resolved on. The participants in the scheme have a variable 
remuneration based on performance. Two thirds of the variable remu-
neration/bonus will, according to the incentive scheme, be settled in cash 
the year after the performance year, while shares will be purchased for 
the remaining one third. The bonus criteria is based on individual perfor-
mance and/or the performance for the part of the Group that the individual 
is responsible for. For Securitas there are no other material costs than the 
allotted bonus and related social benefits.
The share purchase in Securitas will be handled by trading on the 
Nasdaq Stockholm exchange through a swap agreement. Shares are pur-
chased corresponding to one third of the total achieved bonus amount. 
The purchased shares will be allotted to the participants in March, two 
years following the performance year, given that they are still employed 
by the Group, except where an employee has left his/her employment due 
to retirement, death or long-term disability, in which case the employee 
shall have a continued right to receive bonus shares. Securitas will not 
issue any new shares or similar due to this incentive scheme. The purpose 
is to replace cash bonus with shares in Securitas AB and thus increase the 
employees’ ownership in Securitas.
The incentive scheme includes 1 175 participants (1 325) that are 
entitled to receive the share part according to the scheme. The total 
share-based remuneration for these participants amount to MSEK 121 
(133) and is accounted for as a share-based remuneration in equity. In 
March 2020, shares in Securitas AB have been purchased corresponding 
to the value of the total share-based remuneration. The shares have been 
purchased through a swap agreement, based on the current market price 
at the time. The number of shares that have been purchased amount to a 
total of 847 035 (1 003 835) at a value of MSEK 110 (147). The shares 
will be allotted to the participants during the first quarter 2021, provided 
that they are still employed by the Group.
Securitas long-term share-based incentive scheme
Securitas’ Annual General Meeting May 6, 2019 resolved on a new share-
based bonus scheme, LTI 2019/2021, for the CEO, other members of 
Group management and certain key employees, approximately up to 80 
participants. For the qualifying participants the scheme is intended to be 
an alternative to the short-term share-based incentive scheme described 
above. The new scheme will be based on different principles than the 
existing and previous share-based incentive schemes and participants in 
the new long-term scheme will not be entitled to participate in the short-
term share-based incentive scheme. In order to participate in the scheme 
which runs over the period 2019 to 2021 participants will  have to invest 
in Securitas series B shares at market price or nominate already vested 
or currently vesting shares under the short-term incentive schemes. For 
every share purchased or invested the company will grant so called per-
formance awards free of charge as per below:
•	Category 1 (CEO): maximum five performance awards per each 
invested share.
•	Category 2 (Group Management): maximum four performance awards 
per each invested share.
•	Category 3 (other participants): maximum three performance awards 
per each invested share.
The performance condition is linked to the development of real change 
in earnings per share (if applicable excluding items affecting comparabil-
ity) and the outcome is calculated yearly, whereby one third is measured 
against the outcome of the first year (2019), one third against the second 
year (2020) and one third against the third year (2021). The award of 
shares is in addition to the fulfilment of performance conditions contin-
gent on the employment as per the vesting day in February 2022 and that 
the invested shares are kept during the whole vesting period. The number 
of shares awarded will also include compensation for dividend during the 
vesting period by increasing the number of shares awarded. 
The cost for the service rendered under the long-term incentive pro-
gram is spread over the vesting period and is based on a fair value on the 
grant date for Securitas series B share of SEK 161.40 per share for the 
program 2019 to 2021. The outcome for 2019 gives a potential total 
of 15 653 shares that would be allotted to the participants on vesting in 
2022 (before any adjustment for leavers) which corresponds to a cost 
for Securitas of MSEK 2. The cumulative cost of the program for 2019 
to 2021 thus also amounts to MSEK 2.  For Securitas there are no other 
material costs than the allotted bonus and related social benefits.
The share purchase in Securitas may be handled by a swap agreement 
with a third party. Any share-swap agreement will be separate from those 
entered into for the short-term share-based incentive scheme.
COSTS FOR SHARE-BASED INCENTIVE SCHEMES:  
PRESIDENTS AND OTHER EMPLOYEES
MSEK
2019
2018
Bonus costs for incentive schemes1
123
133
Social benefits for incentive schemes1
18
24
Total
141
157
1 Whereof the cumulative cost for the long-term incentive progam 2019-2021 amounts to MSEK 2 
plus estimated social security MSEK 0.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
104
  NOTE 13    Depreciation and amortization
	
	
	
MSEK
2019
2018
Software licenses
214
196
Other intangible assets
157
127
Right-of-use assets
1 025
128
Buildings
15
15
Machinery and equipment
1 279
1 227
Total depreciation and amortization
2 690
1 693
DEPRECIATION AND AMORTIZATION FOR THE YEAR  
IS DISTRIBUTED IN THE STATEMENT OF INCOME AS BELOW	
MSEK
2019
2018
Amortization of intangible assets
Production expenses
108
86
Selling and administrative expenses
263
237
Total amortization of intangible assets
371
323
Depreciation of right-of-use assets
Production expenses
575
128
Selling and administrative expenses
450
-
Total depreciation of right-of-use assets
1 025
128
Depreciation of tangible non-current assets
Production expenses
981
668
Selling and administrative expenses
313
574
Total depreciation of tangible non-current 
assets
1 294
1 242
Total depreciation and amortization
2 690
1 693
  NOTE 14    Net financial items
	
	
	
MSEK
2019
2018
Interest income from financial assets  
at fair value through profit or loss
13
28
Interest income from loans and receivables
28
29
Total interest income
41
57
Net monetary gain on remeasurement  
for hyperinflation
25
23
Revaluation of financial instruments
–
2
Other financial income
1
3
Total financial income
67
85
Interest expenses from financial  
liabilities at fair value through profit or loss
-84
-71
Interest expenses from financial liabilities  
designated as hedged item in a fair value hedge
-82
-182
Interest expenses from derivatives  
designated for hedging
-9
6
Interest expenses from lease liabilities 
-158
-10
Interest expenses from other financial liabilities at 
amortized cost
-284
-247
Total interest expenses
-617
-504
Revaluation of financial instruments
-1
–
Other financial expenses
-26
-22
Exchange rate differences, net1
-1
0
Total financial expenses
-645
-526
Net financial items
-578
-441
	
	
	
1 Exchange rate differences included in operating income are reported in note 11.
  NOTE 15    Taxes
Statement of income
TAX EXPENSE
MSEK
2019
%
2018
%
Tax on income before taxes
Current taxes
-1 200
-26.0
-962
-23.9
Deferred taxes
-56
-1.2
-45
-1.1
Total tax expense
-1 256
-27.2
-1 007
-25.0
	
	
	
The Swedish corporate tax rate was 21.4 percent (22.0). The Group’s tax 
rate was 27.2 percent (25.0). The tax rate adjusted for tax on items affect-
ing comparability was 27.2 percent (25.2).  
DIFFERENCE BETWEEN STATUTORY SWEDISH  
TAX RATE AND ACTUAL TAX EXPENSE FOR THE GROUP	 	
MSEK
2019
%
2018
%
Income before taxes according to 
the statement of income
4 618
4 028
Tax based on Swedish tax rate
-988
-21.4
-886
-22.0
Difference between tax rate in 
Sweden and weighted tax rates for 
foreign subsidiaries
-240
-5.2
-154
-3.8
Tax related to previous years
1
0.0
-6
-0.2
Recognition of previously unvalued 
tax losses
50
1.1
49
1.2
Revaluation of deferred tax  
following a change in tax rate
-1
0.0
-12
-0.3
Other non-deductible items
-97
-2.1
-86
-2.1
Other tax exempt items
19
0.4
88
2.2
Actual tax expense
-1 256
-27.2
-1 007
-25.0
	
	
	
Tax expense that may arise from dividends out of the distributable earn-
ings have not been provided for. If distributed the tax expense arising 
would amount to MSEK 16 (16).
Changes in deferred taxes between 2018 and 2019 are mainly 
explained by tax losses, acquisition related intangible assets and tax allo-
cations reserve. There are no unrecognized temporary differences related 
to subsidiaries or associated companies.
Other comprehensive income
TAX ON OTHER COMPREHENSIVE INCOME
MSEK
2019
2018
Deferred tax on remeasurements of defined 
benefit pension plans
-11
25
Deferred tax on remeasurement for hyperinflation
–
-15
Deferred tax on cash flow hedges
-9
-17
Deferred tax on cost of hedging
-4
12
Deferred tax on net investment hedges
94
107
Deferred tax on other  
comprehensive income
70
112

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
105
Securitas Annual and Sustainability Report 2019
Balance sheet
CURRENT TAX ASSETS / LIABILITIES
MSEK
2019
2018
Current tax assets
922
581
Current tax liabilities
1 621
1 362
Current tax assets / liabilities, net
-699
-781
DEFERRED TAX ASSETS WERE ATTRIBUTABLE TO
MSEK
2019
2018
Pension provisions and employee-related liabilities
602
595
Lease liabilities
896
–
Tax loss carryforwards
108
158
Acquisition related intangible assets
50
68
Machinery and equipment
129
104
Other temporary differences
351
342
Total deferred tax assets
2 136
1 267
Whereof deferred tax assets  
expected to be used within 12 months
829
776
Net accounting1
-1 218
-306
Total deferred tax assets  
according to the balance sheet
918
961
DEFERRED TAX LIABILITIES WERE ATTRIBUTABLE TO
MSEK
2019
2018
Pension provisions and employee-related liabilities
57
49
Acquisition related intangible assets
464
450
Right-of-use assets
877
–
Machinery and equipment
48
46
Other temporary differences
396
332
Total deferred tax liabilities
1 842
877
Whereof deferred tax liabilities  
expected to be used within 12 months
248
237
Net accounting1
-1 218
-306
Total deferred tax liabilities  
according to the balance sheet
624
571
Deferred tax assets / liabilities, net
294
390
	
	
	
1 Deferred tax assets and liabilities are reported in the balance sheet partly on a net basis after  
considering the set-off possibilities.	
	
	
	
	
	
	
DEFERRED TAX ASSETS CHANGE ANALYSIS
MSEK
2019
2018
Opening balance deferred tax assets
1 267
1 161
Change due to:
Deferred tax recognized in the statement of 
income
870
99
Changed tax rate
-8
-18
Acquisitions
1
-10
Recognized in other comprehensive income
–
-5
Translation differences
6
40
Closing balance deferred tax assets
2 136
1 267
Change during the year
869
106
DEFERRED TAX LIABILITIES CHANGE ANALYSIS	
MSEK
2019
2018
Opening balance deferred tax liabilities
877
1 185
Change due to:
Deferred tax recognized in the statement of 
income
898
162
Changed tax rate
-7
-4
Acquisitions
51
75
Recognized in other comprehensive income
–
-11
Reclassification
–
-546
Translation differences
23
16
Closing balance deferred tax liabilities
1 842
877
Change during the year
965
-308
DEFERRED TAX ASSETS CHANGE ANALYSIS PER CATEGORY IN 2019	
MSEK
Opening
balance
Deferred tax
recognized 
in the  
statement of 
income
Changed
tax rate
Acquisitions
Recognized in  
other compre­
hensive income
Translation
differences
Closing
balance
Pension provisions and employee-related liabilities
595
7
-5
1
-5
9
602
Lease liabilities
–
896
–
–
–
–
896
Tax loss carryforwards
158
-43
-1
–
–
-6
108
Acquisition related intangible assets
68
-18
–
–
–
–
50
Machinery and equipment
104
21
–
–
–
4
129
Other temporary differences
342
7
-2
–
5
-1
351
Total deferred tax assets
1 267
2 136
Change during the year
870
-8
1
–
6
869
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
106
  NOTE 16    Acquisitions and divestitures of subsidiaries
Acquisition calculations are subject to final adjustment up to one year after the date of acquisition. For further information refer to note 4.
MSEK
Purchase
price paid /
received6
Acquired / 
divested
net debt
Enterprise
value
Goodwill
Acquisition
related  
intangible
assets
Shares in 
associated 
companies
Operating
capital
employed
Total
capital
employed
Share­
holders’
equity
Total
Global Elite Group, the US3
-191
28
-163
123
70
–
-30
163
–
163
Allcooper Group, the UK3
-65
6
-59
31
26
–
2
59
–
59
Staysafe, Australia3
-84
1
-83
126
57
–
-100
83
–
83
MSM Security Services, the US3
-6
–
-6
42
61
–
-97
6
–
6
Other acquisitions and 
divestitures1,3
-142
4
-138
108
118
-176
-25
25
113 4
138
Adjustments2,3
-45
–
-45
-1
–
–
112
111
-66 5
45
Total acquisitions and 
divestitures
-533
39
-494
429
332
-176
-138
447
47
494
Liquid funds according to 
acquisition analyses
47
Total effect on Group’s  
liquid funds
-486
	
	
	
	
	
	
	
1 Related to other acquisitions and divestitures for the period: Iverify (step acquisition), the US, Nortrax 
Veg og Trafikk, Norway, Wach- und Schließgesellschaft Hof Inh. I Müller, Germany, Securitas Interim 
(divestiture), Cezzam, France, 4CS Security (contract portfolio), Austria, Instalfogo, Portugal and 
Beijing Saikudasi Consultancy Management, China.
2 Related to updated previous year acquisition calculations and adjustments for the following entities: 
WHD Wachdienst Heidelberg, Germany, Automatic Alarm, France, Services in Safety, Belgium, 
Pronet, DAK, Sensormatic, Turkey, PSGA, Australia. Related also to deferred considerations paid in 
Sweden, Germany, France, Austria, Czech Republic, Australia, China and Hong Kong. 
3 Deferred considerations have been recognized mainly based on an assessment of the future profit-
ability development in the acquired entities for an agreed period. The net of new deferred consid-
erations, payments made from previously recognized deferred considerations and revaluation of 
deferred considerations was MSEK 147. Total deferred considerations, short-term and long-term, in 
the Group’s balance sheet amount to MSEK 425.
4 Income statement amounts to MSEK 113 and retained earnings to MSEK 0.
5 Income statement amounts to MSEK -66 and retained earnings to MSEK 0.
6 No equity instruments have been issued in connection with the acquisitions.
DEFERRED TAX LIABILITIES CHANGE ANALYSIS PER CATEGORY IN 2019
MSEK
Opening
balance
Deferred tax
recognized in the 
statement of income
Changed
tax rate
Acquisitions
Recognized in  
other compre­
hensive income
Translation
differences
Closing
balance
Pension provisions and employee-related 
liabilities
49
6
-3
–
–
5
57
Acquisition related intangible assets
450
-24
-4
49
–
-7
464
Right-of-use assets
–
877
–
–
–
–
877
Machinery and equipment
46
-1
–
–
–
3
48
Other temporary differences
332
40
–
2
–
22
396
Total deferred tax liabilities
877
1 842
Change during the year
898
-7
51
–
23
965
Tax loss carryforwards
Tax loss carryforwards relate primarily to subsidiaries in Germany, Turkey 
and Singapore. The Group´s total tax loss carryforwards on December 31, 
2019 amounted to MSEK 1 183 (1 352). These tax loss carryforwards 
expire as follows:
TAX LOSS CARRYFORWARDS
2020
15
2021
13
2022
24
2023-
346
Unlimited duration
785
Total tax loss carryforwards
1 183
Deferred tax assets related to tax losses are accounted for when it is 
probable that they can be utilized by future profits. As of December 31, 
2019, tax loss carryforwards for which deferred tax assets had been 
recognized amounted to MSEK 382 (572) and deferred tax assets related 
to the tax losses amounted to MSEK 108 (158). Tax losses can be used to 
reduce future taxable income and tax payments.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
107
Securitas Annual and Sustainability Report 2019
The following definitions are used in the tables below
Full year sales: What the contribution to total sales would have been if 
the acquisition had been consolidated from January 1, 2019.
Contribution to total sales: What the acquisition has contributed to total 
sales for the year.
Full year net income: What the contribution to net income would have 
been if the acquisition had been consolidated from January 1, 2019.
Contribution to net income: What the acquisition has contributed to net 
income for the year.
Acquisition of the business in Global Elite Group, the US 
Securitas Transport Aviation Services USA has acquired Global Elite 
Group, a leading security services provider to the aviation industry in the 
US. Global Elite Group is based in Garden City, New York, and specializes 
in providing high level security services to various airlines, airports and 
airport related customers. The customer base consists of more than 60 
commercial airlines and numerous general aviation clients. The growth 
pattern in the company has been solid over the years. The number of 
employees is approximately 1 050.
The company will strengthen and complement Securitas current avia-
tion organization, and the combined network, footprint, licenses and 
know-how will increase the value we bring to existing and new customers. 
The acquisition was consolidated in Securitas as of January 10, 2019. 
Goodwill, which amounts to MSEK 123 is mainly related to operational 
expansion. The acquisition is included in the segment Security Services 
North America.
SUMMARY BALANCE SHEET AS OF ACQUISITION DATE JANUARY 10, 2019
MSEK
Fair value
acquisition balance
Operating non-current assets
7
Accounts receivable
40
Other assets
28
Other liabilities
-54
Contingent considerations1
-51
Total operating capital employed
-30
Goodwill from the acquisition
123
Acquisition related intangible assets  
70
Total capital employed
163
Net debt
28
Total acquired net assets
191
Purchase price paid
-191
Liquid funds in accordance with acquisition analysis
36
Total impact on the Group’s liquid funds
-155
1  Contingent consideration has been recognized mainly based on assessment of the profitability 
development of an agreed period. The recognized amount is the maximum amount of the final 
outcome of the payment.
OTHER DISCLOSURES GLOBAL ELITE GROUP, THE US
Acquired share, %
100
Full year sales, MSEK1
290
Contribution to total sales, MSEK
350
Full year net income, MSEK
29
Contribution to net income, MSEK
28
Provision for bad debt included in accounts receivable, MSEK
-1
Transaction costs, MSEK
9
1  As per pressrelease estimate. 
Acquisition of the business in Allcooper Group, the UK
Securitas has acquired all shares in the electronic security company All-
cooper Group in the United Kingdom. Allcooper Group, founded in 1987, 
specializes in the installation, maintenance and monitoring of a wide range 
of security and fire systems. It operates from bases in Gloucestershire, 
the West Midlands and London with around 100 employees. Allcooper’s 
expertise in electronic security and its portfolio of long-term customers will 
provide excellent support in Securitas’ pursuit of its strategic objectives. 
The acquisition was consolidated in Securitas as of April 1, 2019. Goodwill, 
which amounts to MSEK 31 is mainly related to operational expansion. The 
acquisition is included in the segment Security Services Europe. 
SUMMARY BALANCE SHEET AS OF ACQUISITION DATE APRIL 1, 2019
MSEK
Fair value
acquisition balance
Operating non-current assets
9
Accounts receivable
8
Other assets
10
Other liabilities
-18
Contingent considerations1
-7
Total operating capital employed
2
Goodwill from the acquisition
31
Acquisition related intangible assets 
26
Total capital employed
59
Net debt
6
Total acquired net assets
65
Purchase price paid
-65
Liquid funds in accordance with acquisition analysis
6
Total impact on the Group’s liquid funds
-59
1 Contingent consideration has been recognized mainly based on assessment of the profitability 
development of an agreed period. The recognized amount is the maximum amount of the final  
outcome of the payment.
OTHER DISCLOSURES ALLCOOPER GROUP, THE UK
Acquired share, %
100
Full year sales, MSEK
88
Contribution to total sales, MSEK
56
Full year net income, MSEK
4
Contribution to net income, MSEK
2
Provision for bad debt included in accounts receivable, MSEK
0
Transaction costs, MSEK
1
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
108
Acquisition of the business in Staysafe, Australia
Securitas is strengthening its client value proposition in the Australian 
security market through the acquisition of Staysafe, a leading alarm 
monitoring company in Australia. Founded in 1987 and based in Mel-
bourne, Staysafe is today one of the largest monitoring companies in 
Australia with 73 employees and 28 000 monitoring connections man-
aged through two grade A1 monitoring centers located in Melbourne, 
Victoria and Adelaide in South Australia. Since entering the Australian 
market in 2017 Securitas has experienced strong growth and expanded 
its geographical footprint and capabilities across the country. The acquisi-
tion was consolidated in Securitas as of April 4, 2019. Goodwill, which 
amounts to MSEK 126 is mainly related to operational and geographical 
expansion. The acquisition is included in the segment Other.
SUMMARY BALANCE SHEET AS OF ACQUISITION DATE APRIL 4, 2019
MSEK
Fair value
acquisition balance
Operating non-current assets
2
Accounts receivable
6
Other assets
2
Other liabilities
-26
Contingent considerations1
-84
Total operating capital employed
-100
Goodwill from the acquisition
126
Acquisition related intangible assets  
57
Total capital employed
83
Net debt
1
Total acquired net assets
84
Purchase price paid
-84
Liquid funds in accordance with acquisition analysis
1
Total impact on the Group’s liquid funds
-83
1  Contingent consideration has been recognized mainly based on assessment of the profitability 
development of an agreed period. The recognized amount is the maximum amount of the final 
outcome of the payment.
OTHER DISCLOSURES STAYSAFE, AUSTRALIA
Acquired share, %
100
Full year sales, MSEK
72
Contribution to total sales, MSEK
58
Full year net income, MSEK
4
Contribution to net income, MSEK
4
Provision for bad debt included in accounts receivable, MSEK
–
Transaction costs, MSEK
4
Acquisition of the business in MSM Security Services, the US
Securitas subsidiary Securitas Critical Infrastructure Services, Inc (SCIS), 
under the independent direction of its Board, has acquired certain inspec-
tion and background investigations assets of MSM Security Services. 
Securitas Critical Infrastructure Services, Inc is an independent US sub-
sidiary of Securitas AB, which specializes in providing a wide range of 
security services to federal agencies, aerospace and defense contractors, 
and federally regulated energy and aviation facilities. The transaction 
will expand SCIS’ federal background investigations business and is 
anticipated to add MUSD 15 (MSEK 140) of annual sales. The acquisition 
closed following regulatory approval and was consolidated in Securitas 
as of October 5, 2019. Goodwill, which amounts to MSEK 42 is mainly 
related to operational expansion. The acquisition is included in the seg-
ment Security Services North America.
SUMMARY BALANCE SHEET AS OF ACQUISITION DATE OCTOBER 5, 2019
MSEK
Fair value
acquisition balance
Operating non-current assets
0
Accounts receivable
–
Other assets
–
Other liabilities
–
Contingent considerations1
-97
Total operating capital employed
-97
Goodwill from the acquisition
42
Acquisition related intangible assets 
61
Total capital employed
6
Net debt
–
Total acquired net assets
6
Purchase price paid
-6
Liquid funds in accordance with acquisition analysis
–
Total impact on the Group’s liquid funds
-6
1 Contingent consideration is conditioned on the renewal of certain customer contracts. The recog-
nized amount is the maximum amount of the final outcome of the payment.
OTHER DISCLOSURES MSM SECURITY SERVICES, THE US
Acquired share, %
–
Full year sales, MSEK
140
Contribution to total sales, MSEK
19
Full year net income, MSEK
22
Contribution to net income, MSEK
4
Provision for bad debt included in accounts receivable, MSEK
–
Transaction costs, MSEK
3
Other acquisitions and divestitures	
 
SUMMARY BALANCE SHEET	
MSEK
Fair value
acquisition balance
Operating non-current assets
4
Accounts receivable
30
Other assets
20
Other liabilities
-62
Deferred considerations1
-17
Total operating capital employed
-25
Goodwill from the acquisitions2
108
Acquisition related intangible assets3
118
Shares in associated companies
-176
Total capital employed
25
Net debt
4
Total acquired/divested net assets4
29
Purchase price paid/received4
-142
Liquid funds in accordance with acquisition analyses
4
Total impact on the Group’s liquid funds
-138
	
1 Deferred considerations for acquisitions made during 2019 have been recognized mainly based on 
assessment of the future profitability development for an agreed period. The recognized amount is 
Securitas´ best estimate of the final outcome. Thus, no estimate of the range of outcomes has been 
calculated. Deferred consideration is linked to the future development of profitability in the acquired 
companies and the final outcome of the payment may consequently exceed the estimated amount.
2 Mainly related to acquisition of Iverify, the US, Cezzam, France, Beijing Saikudasi Consultancy Man-
agement, China.
3 Mainly related to acquisition of Iverify, the US, Cezzam, France, Beijing Saikudasi Consultancy Man-
agement, China.
4 Purchase price paid/received differs to total acquired/divested net assets due to an income state-
ment effect from a step acquisition of MSEK 113. 
Transaction costs amount to MSEK 6.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
109
Securitas Annual and Sustainability Report 2019
Adjustments and payments of deferred considerations
 
SUMMARY BALANCE SHEET
MSEK
Fair value
acquisition balance
Operating non-current assets
–
Accounts receivable
–
Other assets
3
Other liabilities
1
Deferred considerations1
108
Total operating capital employed
112
Goodwill from the acquisitions2
-1
Acquisition related intangible assets
–
Total capital employed
111
Net debt
–
Total acquired/divested net assets3
111
Purchase price paid/received3
-45
Liquid funds in accordance with acquisition analyses 
–
Total impact on the Group’s liquid funds
-45
1 Mainly related to payments and revaluation of deferred considerations for Automatic Alarm, France, 
Microtech, Czech Republic, PSGA, Australia, Johnson & Thomson, Hong Kong.
2 Mainly related to update of the acquisition calculation for WHD Wachdienst Heidelberg, Germany 
and Pronet, Turkey.
3 Purchase price paid/received differs to total acquired/divested net assets due to revaluation of 
deferred consideration of MSEK -66.
Transaction costs amount to MSEK 1.
  NOTE 17    Goodwill and impairment testing
	
	
	
MSEK
2019
2018
Opening balance
21 470
19 112
Acquisitions and divestitures
429
1 214
Translation differences and  
remeasurement for hyperinflation
674
1 144
Closing accumulated balance
22 573
21 470
Opening impairment losses
-409
-393
Translation differences
-7
-16
Closing accumulated impairment losses
-416
-409
Closing residual value
22 157
21 061
GOODWILL ALLOCATED PER SEGMENT
MSEK
2019
2018
Security Services North America
11 480
10 784
Security Services Europe
8 692
8 469
Security Services Ibero-America
1 477
1 468
Other
508
340
Total goodwill
22 157
21 061
Impairment testing
For the purpose of impairment testing, assets are grouped at the low-
est levels for which there are separately identifiable cash flows (Cash 
Generating Unit), that is, before 2019 on country level and thereafter per 
segment. The Group changed the level of impairment testing for goodwill 
from the country level to the segment level as a consequence of adopt-
ing IFRS 16, that resulted in that complete financial information that is 
reviewed and used for control is available only on the segment level. 
Goodwill and intangible assets with indefinite useful life
Goodwill is tested on an annual basis for possible impairment. Securitas 
also carries out impairment testing for other intangible assets for which 
there is an indefinite useful life. Currently these assets are limited to MSEK 
16 (16) and relates to the consideration paid for the brand Securitas in 
one of the Group’s countries of operations. The annual impairment test of 
all Cash Generating Units (CGUs), which is required under IFRS, took place 
during the third quarter of 2019 in conjunction with the business plan 
process for 2020. During this year’s assessment a total number of 4 CGUs 
were tested for impairment of goodwill.
Valuation methodology and material assumptions
Value in use is measured as expected future discounted cash flows and is 
based upon a five year discounted cash flow model. The cash flows have 
been calculated based on financial plans developed in each segment. The 
financial plans are built upon the regular business plan for the next finan-
cial year which has been ascertained by Group Management and has been 
presented to the Board of Directors. 
The calculation of the value in use is based on certain material assump-
tions and assessments. The most significant of these relate to the organic 
sales growth, the development of the operating margin, the change in 
operating capital employed, long-term growth rate as well as the relevant 
WACC (Weighted Average Cost of Capital) for the valuation, that is, WACC 
after tax used to discount the future cash flows. These assumptions and 
judgments are also based on financial plans developed in each business 
segment and are built upon the regular business plan for the next financial 
year which has been ascertained by Group Management and presented to 
the Board of Directors. In addition to this, the assumptions and judgments 
are based on each business segment growth and profitability level. 
In terms of long-term growth rate a rate of 2 percent for guarding ser-
vices in mature markets is at present regarded as being a reasonable esti-
mate in view of the business areas’ historical organic growth rate and also 
taking into consideration external estimates of the future. Freedonia for 
example, estimates that the market for guarding services in Europe and 
North America will grow at an average rate of some 3 percent per annum 
during the period 2015 to 2025. The market for integrated security solu-
tions is estimated to grow faster than traditional guarding. In developing 
markets such as Eastern Europe, Latin America, Africa, the Middle East 
and Asia the growth rate for guarding services is estimated at 5 percent. 
Since the CGUs consist of countries from both mature and developing 
markets the long-term growth rate for the CGU has been calculated as the 
weighted average of the mature or developing markets share of the seg-
ment operating result. Assumptions relating to WACC are calculated indi-
vidually for each country and weighted to an average for each CGU based 
on the countries share of the segment operating result.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Securitas Annual and Sustainability Report 2019
110
The table below shows the assumptions and estimates that have formed 
the base for the impairment testing in summary and by segment.
Estimated growth  
rate beyond  
forecasted period, %
WACC, %
WACC  
before tax, %
2019
Security Services North America
2.0
6.6
8.6
Security Services Europe
2.3
6.5
8.0
Security Services Ibero-America
2.8
10.3
13.2
Other2
4.0
10.1
12.3
2018
Security Services North America1
2.0
7.0–12.1
9.1–15.4
Security Services Europe1
2.0
4.9–20.9
5.8–25.8
Security Services Ibero-America
2.0–5.0
6.2–31.0
7.7–38.0
Other2
2.0–5.0
7.1–22.1
8.2–27.2
	
	
1 Mexico and Eastern Europe is considered to have a higher growth rate beyond forecasted period 
(2.0–5.0%). These regions represent a minority of the respective segments, hence the growth rate 
of the segments are reported as 2.0 %.
2 The operations in Africa, the Middle East, Asia and Australia are included in Other.
Impairment testing of goodwill and intangible 
assets with indefinite useful life
The 2019 impairment test showed that none of the CGUs tested for 
impairment had a carrying amount that exceeded the recoverable 
amount. Thus no impairment losses have been recognized in 2019. No 
impairment losses of goodwill or other acquisition related intangible 
assets were recognized in 2018 either.
Sensitivity analysis
The following sensitivity analyses have been made of the estimates 
of value in use in connection with impairment testing, assumption by 
assumption: general reduction of 1 percentage point in the organic 
sales growth rate during the forecasting period; general reduction of 
0.5 percentage points in the operating margin; general increase of 0.5 
percentage points in the WACC and general decrease of the estimated 
growth after the forecasted period by 0.5 percentage points. A sensitivity 
analysis for changes in the assumptions used in the impairment testing 
has been established for all CGUs. 
For conducted sensitivity analyses, the conclusion is that none of the 
adjustments of assumptions stand alone would result in an impairment loss 
in any CGU.
  NOTE 18    Acquisition related intangible assets1
	
	
	
MSEK
2019
2018
Opening balance
3 439
2 971
Acquisitions and divestitures
332
499
Derecognition of fully amortized assets2
-204
-112
Translation differences and  
remeasurement for hyperinflation
103
81
Closing accumulated balance
3 670
3 439
Opening amortization
-1 981
-1 798
Reversal of amortization on derecognized assets2
204
112
Amortization for the year
-271
-260
Translation differences and remeasurement  
for hyperinflation
-59
-35
Closing accumulated amortization
-2 107
-1 981
Closing residual value
1 563
1 458
	
	
	
1 The balance consists mainly of contract portfolios and related client relations.
2 The Group derecognizes fully amortized acquisition related intangible assets if a reliable estimate of 
future cash flows cannot be established. The net impact of such derecognition on the closing residual 
value is nil.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
111
Securitas Annual and Sustainability Report 2019
  NOTE 19    Other intangible assets
	
	
	
Software licenses and similar assets
Other intangible assets1
MSEK
2019
2018
2019
2018
Opening balance
2 394
1 515
931
736
Acquisitions and divestitures
1
4
–
–
Capital expenditures
498
415
256
226
Disposals / write-offs
-141
-136
-26
-38
Reclassification
30
547
-2
1
Translation differences and remeasurement for hyperinflation
55
49
8
6
Closing accumulated balance
2 837
2 394
1 167
931
Opening amortization
-1 530
-927
-345
-245
Acquisitions and divestitures
0
-4
–
–
Disposals / write-offs
108
63
19
32
Reclassification
-33
-427
5
-1
Amortization for the year
-214
-196
-157
-127
Translation differences and remeasurement for hyperinflation
-39
-39
-5
-4
Closing accumulated amortization
-1 708
-1 530
-483
-345
Closing residual value
1 129
864
684
586
	
	
	
	
	
	
1 Mainly related to individual client contracts within Security Services Europe.  
Furthermore the brand name Securitas in one of the Group’s countries of operations is included with MSEK 16 (16).	
  NOTE 20    Right-of-use assets
	
	
	
Buildings
Vehicles
Other right-of- 
use assets
Total right-of- 
use assets
MSEK
2019
2019
2019
2019
Lease liability under IFRS 16 at January 1, 2019 (note 41)
2 965
644
46
3 655
New / terminated / changed lease contracts
353
405
11
769
Depreciation
-613
-394
-18
-1 025
Translation differences 
74
15
1
90
Closing balance
2 779
670
40
3 489
Expenses for short-term lease contracts 
–
–
–
296
Expenses for lease contracts of low value
–
–
–
15
Principal payments for lease liabilities
–
–
–
-1 285
Interest expense payments for lease liabilities
–
–
–
-158
References to other notes
For further information regarding right-of-use assets, refer to:
Note 2 Accounting principles
Note 4 Critical estimates and judgments
Note 7 Financial risk management (maturity profile in table Liquidity report)
Note 13 Depreciation and amortization
Note 14 Net financial items
Note 15 Taxes
Note 41 Adoption and impact of IFRS 16 Leases
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
112
Securitas Annual and Sustainability Report 2019
  NOTE 22    Shares in associated companies1
	
	
	
MSEK
2019
2018
Opening balance
452
420
Share in income of associated companies
30
31
Dividend
-14
-18
New issue / contributions
14
–
Step acquisitions
-176
–
Translation differences
14
19
Closing balance2
320
452
	
	
	
1 A complete specification of associated companies can be obtained from the Parent Company.
2 Of which goodwill MSEK 143 (367) and acquisition related intangible assets MSEK 0 (16).
Financial information associated companies
Summarized financial information regarding the Group’s associated com-
panies is specified in the table below. The information is on 100 percent 
basis. 
The Group’s share of capital in associated companies amounts to 
17–49 percent.
MSEK
2019
2018
Sales
2 207
2 185
Net income
30
43
Assets1
602
1 171
Liabilities1
248
783
1 The previous associated company Iverify is not included 2019 since it was acquired in a step acquis-
tion and consolidated in 2019.
	
     Interest-bearing financial  
  NOTE 23    non-current assets1
	
	
	
MSEK
2019
2018
Derivatives with positive fair value, long-term 
Derivatives in fair value hedges2
162
166
Derivatives in cash flow hedges2 
356
283
Derivatives in net investment hedges2
-278
-56
Other derivatives3
-27
-39
Total derivatives with  
positive fair value, long-term
213
354
Other items4
224
145
Total interest-bearing financial  
non-current assets
437
499
	
	
	
1 Further information regarding financial instruments is provided in note 7.
2  Related to derivatives designated for hedging. The EUR/USD cross currency interest rate swaps 
are bifurcated for hedging purposes. The EUR/SEK element, amounting to MSEK 356 (283), is 
accounted for under cash flow hedge accounting. The SEK/USD element, amounting to MSEK -278 
(-56), is accounted for under net investment hedge accounting.
3 Cross currency interest rate swaps are split into different components, of which some elements are 
negative when the overall fair value is positive.
4 Related to loans and receivables.
  NOTE 24    Other long-term receivables
	
	
	
MSEK
2019
2018
Pension balances, defined contribution plans1
124
128
Pension balances, defined benefit plans2
95
36
Reimbursement rights3
181
138
Other long-term receivables
481
481
Total other long-term receivables
881
783
1 Refers to assets relating to insured pension plans excluding social benefits.
2 Refers to assets related to pensions and other long-term employee benefit plans. Further information 
is provided in note 32.
3 Refers to assets relating to defined benefit pension plans where compensation is received from 
another party.
  NOTE 21    Tangible non-current assets
	
	
	
Buildings and land1
Machinery and equipment2
MSEK
2019
2018
2019
2018
Opening balance
680
662
12 242
11 732
Acquisitions and divestitures
–
–
37
105
Capital expenditures
–
12
1 333
1 724
Disposals / write-offs
-53
-9
-789
-684
Reclassification to right-of-use assets (note 20)3
–
-9
–
-593
Other reclassification
-2
-7
5
-522
Translation differences and remeasurement for hyperinflation
9
31
192
480
Closing accumulated balance
634
680
13 020
12 242
Opening depreciation
-362
-338
-9 007
-8 547
Acquisitions and divestitures
–
–
-20
-68
Disposals / write-offs
19
4
702
561
Reclassification to right-of-use assets (note 20)3
–
0
–
380
Other reclassification
3
3
-1
406
Depreciation for the year
-15
-15
-1 279
-1 227
Depreciation for the year, right-of-use assets
–
-1
–
-127
Translation differences and remeasurement for hyperinflation
-4
-15
-123
-385
Closing accumulated depreciation
-359
-362
-9 728
-9 007
Opening impairment losses
-21
-20
–
–
Translation differences
0
-1
–
–
Closing accumulated impairment losses
-21
-21
–
–
Closing residual value
254
297
3 292
3 235
	
	
	
	
	
1 The closing residual value of land included in buildings and land above was MSEK 57 (60).
2 Machinery and equipment comprise vehicles, equipment, security equipment (including alarm systems) and IT and telecom equipment.
3 Finance leases amounting to MSEK 222 according to IAS 17 were in 2018 included in buildings and land as well as in machinery and equipment.  
In this Annual Report, they have been reclassified to right-of-use assets. Refer to notes 20 and 41 for further information.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
113
Securitas Annual and Sustainability Report 2019
  NOTE 25    Inventories	
	
	
	
MSEK
2019
2018
Material and consumables
470
434
Advance payments to suppliers
38
26
Total inventories
508
460
  NOTE 26    Accounts receivable	
	
	
	
MSEK
2019
%
2018
%
Accounts receivable before deduction  
of provisions for bad debt losses
16 699
100
16 112
100
Provisions for bad debt losses
-579
-3
-508
-3
Total accounts receivable
16 120
97
15 604
97
Opening balance provision  
for bad debt losses
-508
-490
Provision for expected losses
-268
-274
Reversed provisions
109
127
Actual losses
131
164
Acquisitions and divestitures
-15
-15
Translation differences
-28
-20
Closing balance provision for  
bad debt losses1
-579
-508
	
	
	
1 Expenses for bad debt losses amounted to MSEK 159 (137).
AGEING OF ACCOUNTS RECEIVABLE BEFORE  
DEDUCTION OF PROVISION FOR BAD DEBT LOSSES
MSEK
2019
%
2018
%
Overdue 1–30 days
3 282
20
3 255
20
Overdue 31–60 days
1 013
6
764
5
Overdue 61–90 days
436
3
415
3
Overdue 91–180 days
366
2
459
3
Overdue 181–365 days
162
1
146
1
Overdue >365 days
383
2
367
2
Total overdue
5 642
34
5 406
34
SPECIFICATION OF PROVISION FOR BAD DEBT AS OF DECEMBER 31, 2019 
AND 2018
MSEK
Expected  
loss rate, %
Accounts recei-
vable before 
deduction
of provisions for 
bad debt losses
Provision 
for bad debt 
losses
December 31, 2019
Current
0.14%
11 057
16
Up to 30 days past due
0.14%
3 282
4
More than 30 days past due
2.5%
1 013
25
More than 60 days past due
4.0%
436
18
More than 90 days past due
8.5%
366
31
More than 180 days past due
63.0%
162
102
More than 365 days past due
100.0%
383
383
Total
16 699
579
December 31, 2018
Current
0.14%
10 706
15
Up to 30 days past due
0.14%
3 255
5
More than 30 days past due
2.5%
764
19
More than 60 days past due
4.0%
415
17
More than 90 days past due
6.5%
459
30
More than 180 days past due
38.0%
146
55
More than 365 days past due
100.0%
367
367
Total
16 112
508
  NOTE 27    Other current receivables
	
	
	
MSEK
2019
2018
Accrued sales income
3 424
3 224
Prepaid expenses 
1 233
1 149
Other accrued income
38
38
Insurance-related receivables
16
16
Value added tax
267
238
Other items
456
391
Total other current receivables
5 434
5 056
	
    Other interest-bearing  
  NOTE 28    current assets1
	
	
	
MSEK
2019
2018
Derivatives with positive fair value, short-term
Derivatives in net investment hedges2
–
1
Other derivatives3
13
16
Total derivatives with  
positive fair value, short-term
13
17
Other interest-bearing current assets
121
104
Total other interest-bearing current assets
134
121
	
	
	
1 Further information regarding financial instruments is provided in note 7.
2 Related to derivatives designated for hedging.
3 Related to financial assets at fair value through profit or loss.
  NOTE 29    Liquid funds1
	
	
	
MSEK
2019
2018
Short-term investments2
2 078
1 598
Cash and bank deposits3
1 870
1 631
Total liquid funds
3 948
3 229
	
	
	
1 Liquid funds include short-term investments with a maximum duration of 90 days that are readily 
convertible to a known amount of cash and subject to an insignificant risk of change in value.  
Liquid funds also include cash and bank deposits.
2 Short-term investments refer to fixed interest rate bank deposits.
3 The net position in Group country cash-pool accounts is reported as cash and bank deposits where 
netting reflects the legal structure of the arrangement.
  NOTE 30    Shareholders’ equity
Number of shares December 31, 2019
Number of 
shares
MSEK
 
Series A
17 142 600
17
 
Series B
347 916 297
348
Total number of shares/share capital
365 058 897
365
Less: Treasury shares
-125 000
–
Total number of shares outstanding1
364 933 897
–
1 The quota value is SEK 1.00 per share.
The number of Series A shares is unchanged in relation to December 31, 
2018. During the year, 125 000 Series B shares have been repurchased 
as a hedge for the long-term incentive scheme. As of December 31, 2019 
there were no outstanding convertible debenture loans that could result 
in any dilution of the share capital.   
Each Series A share carries ten votes and each Series B share one vote. 
This is the only difference between the two series of shares.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
114
Securitas Annual and Sustainability Report 2019
Shareholders with more than 10 percent of the votes
The principal shareholders are  Investment AB Latour with 10.9 percent 
of the capital and 29.6 percent of the votes, and Melker Schörling AB with 
4.1 percent of the capital and 10.7 percent of the votes.
Dividend
The Board of Directors propose a dividend to the shareholders of the 
Parent Company of SEK 4.80 per share, or a total of MSEK 1 752. The 
dividend to the shareholders for the financial year 2018, which was paid in 
2019, was SEK 4.40 per share, or a total of MSEK 1 606.
Presentation of shareholders’ equity
According to IAS 1 a company should as a minimum present issued 
capital and other reserves in the balance sheet. Securitas has chosen to 
specify shareholders’ equity into further components as per below:
•	Share capital
•	Other capital contributed
•	Other reserves
•	Retained earnings
Share capital shows the registered share capital of the Parent Company. 
There were no changes in the share capital in 2019. Repurchase of trea-
sury shares that have not been cancelled has reduced retained earnings.
In other capital contributed, the total amount of all transactions  
Securitas AB has had with its shareholders is included. Transactions that 
have taken place with shareholders are issued capital to premium. The 
amount presented in this sub-component corresponds to capital received 
(reduced by commission costs) in excess of par value of issued capital. 
There were no changes in other capital contributed in 2019.
Other reserves show income and expense items that according to 
certain standards should be recognized in other comprehensive income. 
In the case of Securitas, other reserves consist of translation differences 
attributable to the translation of foreign subsidiaries and associated com-
panies according to IAS 21, the cost of hedging reserve and the cash flow 
hedge reserve. The amount in the hedging reserve will be transferred to 
the statement of income over the following six years.
Retained earnings corresponds to the accumulated profits earned 
and losses incurred in total for the Group. Retained earnings also include 
effects of the Group’s share-based incentive schemes, repurchase of 
treasury shares, remeasurements for hyperinflation and remeasurements 
of post-employment benefits posted in other comprehensive income. 
Retained earnings are further reduced by dividend paid to shareholders of 
the Parent Company. Transactions with non-controlling interests are also 
recorded in retained earnings.
Share-based incentive schemes
Securitas’ share-based incentive schemes have had the following impact 
on retained earnings:
MSEK
2019
2018
Swap agreement 2018 (2017)1
-147
-140
Share-based remuneration to employees  
2019 (2018)
121
133
Non-vested shares 2017 (2016)
1
0
Total short-term incentive schemes
-25
-7
Share-based remuneration to employees 20192
2
–
Total long-term incentive scheme
2
–
Repurchase of shares3
-21
–
Total impact on retained earnings
-44
-7
	
	
	
	
1  The number of shares that have been hedged in this swap agreement amount to a total of 1 003 835 
(999 831) and have been allotted to the participants during the first quarter 2020, provided that 
they were still employed by the Group at that time. Swap agreements are used for delivery of shares 
for the short-term incentive schemes.
2  Number of shares granted amounts to 15 653. The grant date value per share was SEK 161.40. The 
cumulative cost for the long-term incentive scheme 2019-2021 amounts to MSEK 2 plus estimated 
social security MSEK 0.
3  Number of shares repurchased amounts to 125 000. Repurchased shares services as a hedge for 
the long-term incentive scheme.
Non-controlling interests
The table below specifies the Group’s non-controlling interests:
MSEK
2019
2018
Opening balance
25
21
Disposals / liquidations
–
1
Dividend 
-1
-2
Total transactions with  
non-controlling interests
-1
-1
Share in net income
5
5
Share in other comprehensive income,  
translation differences
1
0
Total comprehensive income for the year
6
5
Closing balance
30
25
	
     Long-term liabilities  
  NOTE 31    excluding provisions1
	
	
	
MSEK
2019
2018
Long-term lease liabilities
2 610
116
Total long-term lease liabilities
2 610
116
EMTN Nom MEUR 300, 2018 / 2025, Annual 1.25%2
3 143
3 066
EMTN Nom MEUR 350, 2017 / 2024, Annual 1.125%2
3 683
3 589
EMTN Nom MEUR 350, 2016 / 2022, Annual 1.25%2
3 647
3 577
EMTN Nom MEUR 350, 2013 / 2021, Annual 2.625%2
3 721
3 707
EMTN Nom MUSD 105, 2019 / 2024, FRN Quarterly2
977
–
EMTN Nom MUSD 50, 2019 / 2024, FRN Quarterly2
465
–
EMTN Nom MUSD 40, 2015 / 2021, FRN Quarterly2
373
357
EMTN Nom MUSD 40, 2015 / 2021, FRN Quarterly2
373
357
EMTN Nom MUSD 60, 2014 / 2021, FRN Quarterly2
559
536
EMTN Nom MUSD 40, 2014 / 2020, FRN Quarterly2
–
358
Other long-term loans
91
195
Derivatives with negative fair value, long-term3
184
116
Total other long-term loan liabilities
17 216
15 858
Pensions balances, defined contribution plans4
124
128
Deferred considerations5
223
195
Other long-term liabilities
14
13
Total other long-term liabilities
361
336
Total long-term liabilities
20 187
16 310
	
	
	
1 For further information regarding financial instruments, refer to note 7.
2 Issued by the Parent Company.
3  Related to derivatives designated for hedging with negative fair value. The EUR / USD cross cur-
rency interest rate swaps are bifurcated for hedging purposes. The EUR / SEK element, amounting 
to MSEK -119 (-67), is accounted for under cash flow hedge accounting. The SEK / USD element, 
amounting to MSEK 288 (165), is accounted for under net investment hedge accounting.  
4 Refers to liability for insured pension plan excluding social costs.
5 Recognized at fair value.
LONG-TERM LIABILITIES FALL DUE FOR PAYMENT AS FOLLOWS
MSEK
2019
2018
Maturity < 5 years
16 015
13 106
Maturity > 5 years
4 172
3 204
Total long-term liabilities
20 187
16 310

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
115
Securitas Annual and Sustainability Report 2019
  NOTE 32    Provisions for pensions and similar commitments
Overview
The Group operates or participates in a number of defined benefit and defined contribution pension and other long-term employee benefit plans 
throughout the world. These plans are structured in accordance with local rules and practices. 
The graphs below provide an overview of the Group’s defined benefit plans.	
	
	
Plan assets  
■ Switzerland MSEK 1 413, 43%
■ US MSEK 1 280, 39%
■ Canada MSEK 407, 12%
■ Other countries1 MSEK 193, 6%
■ Total MSEK 3 293
Plan assets  
■ Switzerland MSEK 1 413, 43%
■ US MSEK 1 280, 39%
■ Canada MSEK 407, 12%
■ Other countries1 MSEK 193, 6%
■ Total MSEK 3 293
Pension costs
■ Switzerland MSEK 64, 65%
■ US MSEK 22, 22%
■ Canada MSEK 13, 13%
■ Total MSEK 99
Pension costs
■ Switzerland MSEK 64, 65%
■ US MSEK 22, 22%
■ Canada MSEK 13, 13%
■ Total MSEK 99
Employer contributions
■ Switzerland MSEK 63, 41%
■ US MSEK 26, 17%
■ Canada MSEK 8, 5%
■ Other countries1 MSEK 57, 37%
■ Total MSEK 154
Employer contributions
■ Switzerland MSEK 63, 41%
■ US MSEK 26, 17%
■ Canada MSEK 8, 5%
■ Other countries1 MSEK 57, 37%
■ Total MSEK 154
1 In total 18 countries. Most of these countries have unfunded plans. Further information is provided in the section Other countries below.
 
The table below shows a specification of the members in the Group’s 
significant defined benefit plans, the plans’ duration and life expectancy 
for the members.
DECEMBER 31, 2019
Switzerland
US
Canada
Active members 
2 186
134
189
Deferred members
–
1 119
31
Pensioner members 
193
4 011
218
Total number of members
2 379
5 264
438
Duration of plans (years)
14
9
18
Number of years current pensioners 
are expected to live beyond age 65:
Men
23
20
21
Women
25
22
24
Number of years future pensioners 
currently aged 45 are expected to live 
beyond age 65:
Men
24
21
22
Women
27
23
25
The Group’s significant defined benefit plans are described below.
Switzerland
The Group’s Swiss operations participate in a plan that is a defined ben-
efit plan according to IAS 19 as a result of the residual risk described 
below. The Swiss operations have chosen to set up an own-foundation, 
which means that the foundation only covers employees of Securitas’ 
Swiss operations. The plan is open to new employees of Securitas’ Swiss 
operations and benefits are being accrued under the plan. There are no 
terminated vested members in the plan since pension obligations are 
transferred to the new employer upon termination.
The benefits provided constitute pension benefits, disability benefits 
and death-in-service pension to previous employees and their spouses. 
The pension benefits are normally paid as an annuity based on capital 
conversion rates that differ between men and women. The disability 
benefits are calculated as a maximum of the pensionable salary and the 
death-in-service benefit is in its turn calculated as a percentage of the dis-
ability pension. Plan contributions are subject to legal minimum require-
ments. Rates increase with age and at least half must be paid by the 
employer while the employee pays the remainder. In the case of Securitas’ 
Swiss subsidiary, the contributions in the plan are split equally with half 
paid by the company and the other half by the employee. Contributions 
payable to the plan are calculated each month as a fixed percentage based 
on the annual salary and age.
Although the contribution levels are defined, there is still a risk of a 
shortfall in the pension fund as the minimum requirements for interest on 
capital and conversion to pension need to be met. If there is a shortfall the 
fund will take steps before asking the company for additional contribu-
tions. These steps could include changing plan benefits, lowering returns 
credited to employees or changing the conversion rate, where possible. 
The fund has several years to balance a shortfall and payments will never 
be required from the company for past periods. This means that the 
actions can be planned and budgeted for. If additional contributions are 
required from the company, this is also required from the employees. 
The pension plan is covered under federal Swiss law that regulates 
the so called second pillar of the pension system, the pension benefits 
arising from employment. The pension plan is governed by the board 
of the pension fund, which is made up of an equal number of employer 
and employee representatives. The administration is run in-house by a 
pension fund expert. The pension fund chooses how and where to invest 
the assets. Swiss law limits both the total share of assets that should be 
held in certain categories, and for individual asset holdings. The fund has 
given mandates to manage the investments to three banks and retains 
Deﬁned beneﬁt obligations 
■ Switzerland MSEK 1 542, 36% 
■ US MSEK 1 513, 35%
■ Canada MSEK 525, 12%
■ Other countries1 MSEK 759, 17%
■ Total MSEK 4 339
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
116
Securitas Annual and Sustainability Report 2019
an investment committee, a sub-committee of the main fund board. The 
investment committee compares and reviews the performance of these 
mandates on a regular basis. In addition, the pension fund engages an 
external independent advisor as support for the investment committee 
regarding investments. 
The latest funding valuation was carried out on December 31, 2018 
and resulted in a funding ratio of 107 percent based on a defined benefit 
obligation for funding purposes of MCHF 117 and plan assets for funding 
purposes of MCHF 125. 
The US
The Group’s US operations participate in two defined benefit pension 
plans as the named plan sponsor. One of these plans is funded and the 
other is unfunded. Both plans are closed to new entrants and any future 
benefit accrual. 
The benefits provided constitute pension payments to previous 
employees and their spouses in the form of annuities or lump sums.  The 
particulars of the benefits and the benefit calculations depend on the 
original plan to which the plan participant belonged as the current funded 
plan is an amalgamation of several previous pension plans. The unfunded 
plan is constituted by a formally adopted and documented plan plus 
some individual arrangements that, for the purpose of this disclosure, are 
treated as one plan. In general the benefits are monthly pensions based 
on earnings and years of service. These benefits are defined with the only 
uncertainties being how long they will be paid, whether benefits will be 
paid as a lump sum or as an annuity and, in the case of the funded plan, 
also regarding investment return on plan assets. Plan contributions are 
determined annually. 
The pension plans are covered under the US Employee Retirement 
Income Security Act of 1974 (ERISA). Various parts of the ERISA legisla-
tion are governed by the Department of Labor, the Internal Revenue Ser-
vice and the Department of Treasury. The funded plan also pays required 
premiums to the Pension Benefit Guaranty Corporation, which insures 
private pension plans in the case the sponsor defaults.
Both pension plans are governed by the Executive Compensation and 
Benefits Review Committee (ECBRC), which is made up of local Securitas 
US management representatives. Administration is outsourced to an 
external service provider. Independent investment managers are utilized 
and evaluated by independent investment advisors. 
Since the US pension plans are closed to new entrants and any future 
benefit accrual and are in a run-off mode, a liability matching approach 
is applied by the ECBRC in order to de-risk the funded plan. The strat-
egy is that as the funding percentage increases, the asset allocation will 
gradually shift from growth assets, such as equities, into fixed income 
investments. As a result, the plan has been substantially de-risked. The 
plan is now over 95 percent invested in liability matching fixed income 
investments.
Under IAS 19 the funded ratio was 101 percent based on a defined 
benefit obligation of MUSD 135 and plan assets of MUSD 137. A funding 
valuation would result in a higher funding percentage since funding valua-
tions are required by US law to be based on higher discount rates. On a plan 
termination basis, the plan’s funded ratio would be expected to be lower 
than both the minimum funding and accounting funded ratios as it would 
incorporate the use of lower interest rates as well as other factors which 
would be assumed to come into play in the event of a complete plan termi-
nation and settlement. The book value under IAS 19 for the defined benefit 
obligation for the unfunded plan was MUSD 27 as of December 31, 2019. 
The US operations also participate in a defined contribution plan, gen-
erally known as a 401(k) plan. There are also a few multi-employer plans, 
which are governed by collective bargaining agreements. These plans, in 
most cases, require the employees to contribute to the plan, typically with 
the employee contributions being partially matched by the employer. In 
relation to the overall workforce the take up rates are generally low, with 
voluntary participation rates of approximately five percent.  In the federal 
government sector, Securitas’ subsidiary participates on a modified basis, 
subject to special rules, in the same 401(k). Securitas’ subsidiary in the 
federal government sector also participates in a few union-sponsored 
defined contribution plans of a similar type. Due to the federal Service 
Contract Act, under which Securitas’ subsidiary in the federal government 
sector operates, hourly allowances must be paid to employees that can 
be used for various elected benefits, such as health and disability, with 
unused portions of the allowances contributed to the 401(k) plan, without 
additional employer contributions.
Canada
The Group’s Canadian operations participate in one defined benefit pen-
sion plan as the named plan sponsor. This plan is a funded plan and is 
closed to new entrants. Current active participants receive future benefit 
accruals. 
The benefits provided constitute pension payments to previous 
employees and their spouses in the form of annuities or lump sums. In 
general, the benefits are monthly pensions based on the greater of (i) a 
formula based on earnings and years of service, and (ii) a minimum benefit 
expressed as a dollar amount per month for each year of service. These 
benefits are defined with the only uncertainties being how long they will 
be paid, whether benefits will be paid as a lump sum or as an annuity and 
if paid as lump sums, the prescribed discount rate used for the present 
value calculation. Plan contributions are determined annually or trienni-
ally, if the plan is funded in excess of certain regulatory thresholds. 
The pension plan is subject to regulations under the Pension Benefits 
Act (Ontario) and the Income Tax Act (the “Acts”). Various parts of the 
Acts are governed by the Financial Services Regulatory Authority of 
Ontario and the Canada Revenue Agency. The plan also pays required 
premiums to the Pension Benefits Guarantee Fund, which insures cer-
tain pension plans up to certain limits in the case the sponsor defaults in 
respect of members reporting to work in Ontario, Canada, which is where 
all active members currently are employed.
The pension plan is governed by the Pension Committee, which is 
made up of Securitas US management representatives and local Cana-
dian representatives. Administration is outsourced to an external service 
provider. Independent investment managers are utilized and evaluated by 
independent investment advisors. 
Under IAS 19 the funded ratio was 132 percent based on a defined 
benefit obligation of MCAD 47 and plan assets of MCAD 62. The effect 
of the asset ceiling amounted to MCAD 5. A funding going-concern valu-
ation would typically result in a higher funding percentage, since funding 
going-concern valuations are permitted to take into consideration future 
expected returns on the plan’s asset portfolio when setting the dis-
count rate. On a plan termination basis, the plan’s funded ratio would be 
expected to be lower than both the funding going-concern and account-
ing funded ratios as it would incorporate the use of lower interest rates 
as well as other factors which would be assumed to come into play in the 
event of a complete plan termination and settlement.
The Canadian operations also participate in a group savings plan, known 
as the Group Retirement Savings Plan and Deferred Profit Sharing Plan 
for the Employees of Securitas Canada. The plan is voluntary in nature. 
Employees are eligible to join after six months of employment. Employee 
contributions can be made via payroll deduction or lump-sum and are 
directed to the Group Retirement Savings Plan. Employees can contribute 
up to the prescribed limit as per the Canada Revenue Agency. Securitas 
contributes between one and five percent depending on the position of 
the employee. Employer contributions are directed to the Deferred Profit 
Sharing Plan and are fully vested upon two years of plan membership.
The Canadian operations offer a non-pension post-employment benefit 
plan that provides retiree medical, dental, and life insurance benefits to a 
small group of employees at a client site where Securitas provide security 
services. The plan is open to new entrants. The plan reimburses benefit 
expenses incurred by retirees and their dependents, including prescription 
drugs, semi-private hospital, nursing home, vision care, other medical care, 
and dental care. It also pays the premiums for life insurance in retirement. 
The non-pension post-employment benefits are funded on a pay-as-you-
go basis and no assets are set aside for the purposes of paying benefits 
under the plan. The costs for this plan are carried by Securitas who, in turn, 
are reimbursed by the client. This reimbursement right, amounting to 
MCAD 25 as per December 31, 2019, is accounted for under other long-
term receivables in note 24. Under IAS 19 the defined benefit obligation of 
the non-pension post-employment benefit plan is MCAD 26.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
117
Securitas Annual and Sustainability Report 2019
Norway
The Group’s Norwegian operations have in 2019 settled the majority 
of the defined benefit plans. The remaining defined benefit plans are an 
unfunded plan that is insignificant for the Group as well as the AFP-plan.  
New employees are covered by defined contribution plans. 
The AFP-plan (collective pension agreement) is a multi-employer 
defined benefit plan covering all employees. Since the administrator is 
unable to separately identify the company’s share of the total plan assets 
and total defined benefit obligations, it is accounted for on a defined con-
tribution basis. Premiums paid to the plan in 2019 amounted to MNOK 27 
(25). The contribution for the next annual reporting period is expected to 
be broadly in line with the current year’s premium. Securitas’ share of total 
premiums to the plan is approximately 0.4 percent. The latest available 
funding ratio in this plan, calculated under the plan rules, was 67 percent 
(70) as of December 31, 2018.
Other countries
There are also less significant defined benefit arrangements in countries 
other than those accounted for above. These plans are located in France 
(unfunded plans providing retirement indemnities under French law), 
Germany (unfunded arrangements for pensions and jubilee plans), the 
Netherlands (funded and unfunded plans providing pension and jubilee 
benefits for our consultancy operations only) and the UK (funded plan 
providing pension and death-in-service benefits). The Group also cur-
rently has plans that are not significant in 13 other countries. 
The defined benefit arrangement for clerical staff in the guarding oper-
ations in the Netherlands is accounted for as a defined contribution plan, 
which is closed to new entrants. New employees are enrolled in another 
defined contribution plan. The security officers in the guarding operations 
in the Netherlands participate in a multi-employer defined benefit plan 
that is mandatory for all guards from the age of 21 and up. The supervi-
sion and administration of the plan is carried out by a collective pension 
foundation for the security industry. This foundation determines the 
annual premium. Premiums paid to the plan in 2019 amounted to MEUR 
8 (8). The contribution for the next annual reporting period is expected to 
be in line with the pension premiums in 2019. Securitas’ share of total pre-
miums to the plan is approximately 19 percent. This plan covers around 
3 700 active employees. Since the administrator is unable to separately 
identify the company’s share of the total plan assets and total defined 
benefit obligations for this arrangement, the plan is accounted for on a 
defined contribution basis. The funding ratio in this plan, calculated under 
the plan rules, was 106 percent (107) as of December 31, 2019.
Sweden 
Security officers in Sweden are covered by the SAF-LO collective pension 
plan, an industry-wide multi-employer defined contribution arrangement. 
Clerical workers are covered by the ITP plan, which is also based on a 
collective agreement and operated industry-wide on a multi-employer 
basis. According to a statement (UFR 10) issued by the Swedish Financial 
Reporting Board this is a multi-employer defined benefit plan. Alecta, the 
insurance company that operates this plan, has been unable to provide 
Securitas, or other Swedish companies, with sufficient information to 
determine its share of the total assets and liabilities for this arrangement. 
Consequently this arrangement is accounted for on a defined contribu-
tion basis. The cost for 2019 amounts to MSEK 29 (28). The contribution 
for the next annual reporting period is expected to be broadly in line with 
the current year’s premium. Securitas’ share of Alecta’s total premiums 
amounts to less than 0.1 percent. The surplus in Alecta can be allocated 
to the insured employer and/or the insured employees. Alecta’s fund-
ing ratio, calculated under the plan rules, was 148 percent (142) as of 
December 31, 2019. 
Consolidated statement of income	
The table below shows expense (+) and income (-) from the Group’s 
defined benefit and defined contribution plans. 
MSEK
2019
2018
Current service cost
121
115
Administration cost
19
18
Interest income or expense1
23
17
Remeasurements of other long-term  
employee benefits
0
-1
Past service cost and gains  
and losses arising from settlements2
-64
-26
Total pension costs for defined benefit plans
99
123
Pension costs for defined contribution plans
1 409
1 221
Total pension costs 
1 508
1 344
1 Whereof MSEK 2 (1) is related to interest on the effect of the asset ceiling.
2 Related to settlement gains in Norway 2019 and 2018. 	
The table below shows costs for defined benefit plans allocated per 
function.  
MSEK
2019
2018
Production expenses
107
106
Selling and administrative expenses
-8
17
Total pension costs for defined benefit plans
99
123
	
	
	
Consolidated balance sheet	
The table below shows how the net defined benefit obligations have been 
determined. It also shows the Group’s reimbursement rights. 
 
MSEK
2019
2018
Present value of the defined benefit obligations
4 339
4 166
Fair value of plan assets1
-3 293
-3 086
Defined benefit obligations, net2
1 046
1 080
Reimbursement rights (note 24)
181
138
	
	
	
1 Includes effect of the asset ceiling amounting to MSEK 41 (41). The effect is related to Canada and 
the UK.
2 Related to the net of plans reported under provisions for pensions and similar commitments, MSEK  
1 141 (1 116), and plans reported under other long-term receivables (note 24), MSEK -95 (-36).
The reimbursement rights are related to a contractual agreement where 
Securitas provide security services at a client site in Canada. The agree-
ment requires Securitas to make provisions for post-retirement medical 
benefits. The costs of this benefit are carried by Securitas who, in turn, are 
reimbursed by the client. This reimbursement right is accounted for as an 
other long-term receivable in note 24.
The table below shows how remeasurements net of taxes recognized in 
other comprehensive income have been determined. 
MSEK
2019
2018
Remeasurements of provisions for pensions  
and similar commitments before taxes
-16
79
Remeasurements of reimbursement rights  
before taxes
-26
18
Taxes
11
-25
Total remeasurements recognized in other 
comprehensive income
-31
72
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
118
Securitas Annual and Sustainability Report 2019
Movement in provisions for pensions and similar commitments
2019
2018
MSEK
Obligations
Plan assets
Net
Obligations
Plan assets
Net
Opening balance
4 166
-3 086
1 080
4 050
-3 076
974
Current service cost
121
–
121
115
–
115
Administration cost
19
–
19
18
–
18
Interest income (-) or expense (+)1
99
-76
23
86
-69
17
Remeasurements of other long-term employee benefits
0
–
0
-1
–
-1
Past service cost and gains  
and losses arising from settlements2
-379
315
-64
-68
42
-26
Total pension costs included in  
the consolidated statement of income
-140
239
99
150
-27
123
Remeasurements of post-employment benefits:
Return on plan assets, excluding  
amount included in interest income or expense
–
-348
-348
–
163
163
Changes in the effect of the asset ceiling, excluding 
amount included in interest income or expense3
–
-2
-2
–
22
22
Actuarial gains (-) and losses (+) from changes in 
demographic assumptions
-4
–
-4
23
–
23
Actuarial gains (-) and losses (+) from changes in 
financial assumptions
374
–
374
-134
–
-134
Actuarial gains (-) and losses (+) due to experience
-36
–
-36
5
–
5
Total remeasurements of post-employment benefits4
334
-350
-16
-106
185
79
Contributions by employers5
–
-154
-154
–
-151
-151
Contributions by plan participants
61
-61
–
55
-55
–
Benefits paid to plan participants
-253
253
–
-221
221
–
Administration costs paid
-19
19
–
-18
18
–
Acquisitions / divestitures / reclassifications
0
–
0
13
0
13
Translation difference
190
-153
37
243
-201
42
Closing balance
4 339
-3 293
1 0466
4 166
-3 086
1 0806
	
	
	
	
1 Whereof MSEK 2 (1) is related to interest on the effect of the asset ceiling.
2 Related to settlement gains in Norway 2019 and 2018. 
3 Related to Canada and the UK.
4 Included net of taxes in other comprehensive income.
5 Contributions by employers are estimated to be on approximately the same level in 2020 as in 2019.
6 Related to the net of plans reported under provisions for pensions and similar commitments, MSEK 1 141 (1 116),  
and plans reported under other long-term receivables (note 24), MSEK -95 (-36).

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
119
Securitas Annual and Sustainability Report 2019
Plan assets
The table below presents a breakdown of the various types of investments in which the assets of the Group’s funded benefit arrangements are invested.
 
MSEK
2019
%
2018
%
Equity instruments
Switzerland
279
195
US
247
212
Canada
56
46
Other countries
190
330
Total equity instruments
772
23
783
25
Debt instruments
Government bonds
732
515
Corporate bonds, investment grade (AAA to BBB-)
1 203
989
Corporate bonds, non-investment grade (below BBB-)
8
8
Total debt instruments
1 943
59
1 512
49
Property
302
10
269
9
Qualifying insurance policies
143
4
447
14
Cash and cash equivalents
174
5
116
4
Effect of the asset ceiling
-41
-1
-41
-1
Total plan assets
3 293
100
3 086
100
The plan assets are well diversified on countries and industries, so the 
failure of any single investment is not estimated to have a material impact 
on the overall level of assets.
The plan assets do not include any property owned by Securitas or finan-
cial instruments issued by Securitas. The share of unquoted plan assets  
is non-material.
 
Actuarial assumptions and sensitivity analysis
The table below shows the significant financial actuarial assumptions used for determining the defined benefit obligations at the end of the year as well 
as in determining the pension costs for the coming year.
%, per annum
Discount rate
Salary increases
Inflation
Pension increases
Mortality
2019
Switzerland
0.20
1.00
1.00
0.00
LPP 2015
US
2.60-2.80
n/a
n/a
n/a
RP 2006 white 
collar/blue collar 
with MP-2019 
improvements
Canada
3.10-3.20
1.00
2.00
n/a
CPM-RPP 2014 Private 
Sector Table, CPM-B 
scale 110% males,  
100% females
Norway
1.70
2.25
n/a
0.50-2.00
K 2013
Eurozone
0.50-1.10
2.00–2.75
1.75–2.00
1.25-1.75
–
UK
2.00
3.00
2.30-3.30
2.30-3.30
SAPS (S3NA), CMI 
2018 with a smoothing 
factor of 7.0, an initial 
adjustment of 0.50% 
p.a. and a long term 
improvement rate of 
1.25% p.a.
2018
US
3.80-3.90
n/a
n/a
n/a
RP 2006 white 
collar/blue collar 
with MP-2018 
improvements
Switzerland
0.70
1.00
1.00
0.00
LPP 2015
Norway
2.00
2.75
n/a
0.80-2.50
K 2013
Eurozone
1.10-1.90
2.00–2.75
1.75–2.00
1.25-1.75
–
Other countries
2.90–4.00
1.00–3.00
2.00–3.50
2.50–3.50
–
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
120
Securitas Annual and Sustainability Report 2019
The table below shows the methods used to set significant actuarial assumptions for the Group’s main defined benefit plans.
 
Discount rate
Salary increases
Inflation
Pension increases
Mortality
Switzerland
Chamber of  Pensions Actuaries
Company’s 
best estimate
Long-term expectations 
in Switzerland
When financially bearable 
by pension plan
Latest tables 
available
US
Cash flow matching approach 
applied to the Citigroup yield curve
n/a
n/a
n/a
Latest tables 
available
Canada
Canadian Institute of Actuaries
Company’s 
best estimate
Long-term expectations 
in Canada
n/a
Latest tables 
available
Norway
NRS guidance
NRS guidance
n / a
NRS guidance
Latest tables  
available
Assumptions are set by the company based on actuarial advice and the company’s experience in each territory.
The table below indicates the sensitivity to changes in significant assumptions for provisions for pensions and similar commitments.
MSEK
Increase (+) / decrease (-) in provision
Discount rate – pension plans
increase of 0.1 percentage points
-48
decrease of 0.1 percentage points
48
Inflation – pension plans
increase of 0.1 percentage points
8
decrease of 0.1 percentage points
-8
Life expectancy – pension plans
one year increase 
119
Health-care cost rate – medical plans
increase of 1 percentage point
311
decrease of 1 percentage point
-242
1 The corresponding effect on the statement of income is an increase of costs of MSEK 1.
2 The corresponding effect on the statement of income is a decrease of costs of MSEK -1.
The sensitivity analysis has been determined based on reasonably pos-
sible changes of the respective assumptions occurring at the end of the 
reporting period and may not be representative of the actual change. The 
sensitivity analysis is further based on a change in one assumption while 
holding all other assumptions constant, although in reality changes in 
some assumptions may be correlated. 
The same method used to calculate the provisions for pensions and 
similar commitments, that is the projected unit credit method, is used for 
calculating the sensitivities.
There have been no changes in the methods and assumption changes 
used in preparing the sensitivity analysis compared to the previous year.
Risks
The table below shows significant risks that the Group is exposed to through its defined benefit plans.
Asset volatility
The plan liabilities are calculated using a discount rate set with reference to corporate bond yields. If plan 
assets underperform this yield, a deficit will be created. In a long-term perspective, equities are expected to 
outperform corporate bonds, but in the short-term perspective the yield on the Group’s investments in equity 
instruments may cause volatility.
Changes in bond yields
A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset by an 
increase in the value of the plans’ bond holdings. In the US, an asset-liability matching approach is practiced  
to mitigate the risks associated with changes in bond yields as far as possible. 
Inflation risk
Some of the Group’s pension obligations are linked to inflation, and higher inflation will lead to higher 
liabilities. However, the Group’s plans in the US are not linked to inflation, which makes the inflation risk less 
significant for the Group.
Life expectancy
The majority of the plans’ obligations are to provide benefits for the life of the member, so increases in 
life expectancy will result in an increase in the plans’ liabilities. In some countries, the benefit provided at 
retirement is a lump sum payment and therefore increases in life expectancy do not impact liabilities in these 
countries.

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
121
Securitas Annual and Sustainability Report 2019
  NOTE 33    Other long-term provisions
	
	
The movement in the balance sheet for provisions for pensions and similar commitments is provided in note 32. The movement in the balance sheet 
for deferred tax liabilities is provided in note 15.
DECEMBER 31, 2019
MSEK
Claims reserves
Other provisions
Total
Opening balance
624
216
840
Reclassification
-2
0
-2
New / increased provisions
7
16
23
Utilized provisions
–
-64
-64
Reversal of unutilized provisions
-107
-4
-111
Translation differences
27
6
33
Closing balance
549
170
719
Claims reserves
Liability insurance-related claims reserves primarily consist of provisions 
for the portion of claims payable by the Group, that is its self-retention. 
Claims reserves comprise a large number of individual insurance cases 
where some cases are compensated with a lump sum payment and others 
are paid over a longer period of time. It is thus not possible to disclose any 
detailed information regarding the timing of outflows from claims reserves.
Other provisions
Other provisions include various long-term items, among them provi-
sions related to litigations. Other provisions are difficult to assess from a 
timing perspective. It is thus not possible to disclose any detailed infor-
mation regarding the timing of outflows from other provisions.
  NOTE 34    Short-term loan liabilities1
	
	
	
MSEK
2019
2018
Current lease liabilities
944
106
Total current lease liabilities
944
106
EMTN Nom MUSD 40, 2014 / 2020, FRN Quarterly2
373
–
EMTN Nom MUSD 85, 2013 / 2019, FRN Quarterly2
–
759
Commercial paper issued3
750
950
Other short-term loans
144
552
Derivatives in net investment hedges4
9
11
Other derivatives5
14
10
Total other short-term loan liabilities
1 290
2 282
Total short-term loan liabilities
2 234
2 388
	
	
	
1 For further information regarding financial instruments refer to note 7.
2 Issued by the Parent Company. 
3 Commercial paper is issued by the Parent Company within the framework of a MSEK 5 000 Swedish 
commercial paper program. Commercial paper is accounted for at the issued amount.
4 Related to derivatives designated for hedging with negative fair value.
5 Related to financial liabilities at fair value through profit or loss with negative fair value.
  NOTE 35    Other current liabilities
	
	
	
MSEK
2019
2018
Employee-related items1
8 134
7 511
Accrued interest and financial expenses
220
210
Deferred revenue
965
951
Other accrued expenses and prepaid income
1 267
1 122
Value added tax
1 466
1 484
Deferred considerations
202
78
Other items
682
672
Total other current liabilities
12 936
12 028
1 Related to accrued salaries, vacation pay, payroll overhead, bonus and similar items. Accounted for 
net of government grants when applicable.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
122
Securitas Annual and Sustainability Report 2019
  NOTE 36    Short-term provisions
DECEMBER 31, 2019	 	
	
MSEK
Claims reserves
Other 
provisions
Total
Opening balance
578
786
1 364
Reclassification
-1
3
2
New / increased provisions
311
542 1
853
Utilized provisions
-309
-736
-1 045
Reversal of unutilized 
provisions
-9
-79
-88
Translation differences
25
17
42
Closing balance
595
533
1 128
1  The change in new and increased provisions classified under the heading Other provisions are 
impacted mainly by the recognition of provisions related to the two transformation programs for the 
digitization of the company.	 	
	
	
	
Claims reserves
Liability insurance-related claims reserves primarily consist of provisions 
for the portion of claims payable by the Group, that is its self-retention.
  NOTE 37    Pledged assets
	
	
	
MSEK
2019
2018
Pension balances, defined contribution plans
124
128
Finance leases according to IAS 17
n/a
222
Total pledged assets
124
350
  NOTE 38    Contingent liabilities
	
	
	
MSEK
2019
2018
Guarantees1
–
1
Guarantees related to discontinued operations
16
15
Total contingent liabilities
16
16
	
	
	
1 Guarantees on behalf of related parties are disclosed in note 8.	
In addition to the contingent liabilities accounted for in the table, the fol-
lowing contingent liabilities, for which no amount can be determined, also 
exist:
Brazil – Estrela Azul
In connection with the efforts of Securitas to expand its activities in Latin 
America, Securitas entered into an agreement in 2005 with respect to the 
possible acquisition of a guarding company in Brazil, Estrela Azul (the EA 
Group). The governmental approvals took much longer than anticipated 
to obtain and during such period the financial condition of the target group 
substantially deteriorated. Given the decline in the financial condition of 
the group, Securitas exercised its right to withdraw from the acquisition 
process in December 2006. 
The companies within the EA Group filed for protection from its credi-
tors under Brazilian legislation in 2007 providing for a judicial restructur-
ing process. The companies within the group were declared bankrupt 
in 2009 and the restructuring process was replaced by bankruptcy 
proceedings. The bankruptcy process continues led by the trustee in the 
bankruptcy court. Various attempts by the trustee to increase the liability 
of Securitas in the bankruptcy has been vigorously rejected. 
The EA Group in bankruptcy has asserted claims against Securitas in 
the bankruptcy court trying to extend liability to Securitas for the bank-
ruptcy and the claims in the bankruptcy. The estate has not quantified its 
claims. The cases are slowly moving through the Brazilian legal system. 
The EA Group in bankruptcy also asserted a claim of MBRL 314, which 
as of December 31, 2019 was equivalent to MSEK 724 in the civil court 
against Securitas, alleging that Securitas is responsible for the company’s 
financial failure. Securitas denies all allegations. The defense of this case 
has been entrusted to one of the leading law firms in Brazil. In a decision 
by the first instance court in Brazil the case was fully rejected. The judg-
ment was appealed by the bankruptcy estate to the Brazilian Court of 
Appeals and the Court of Appeals decided on formal grounds to nullify the 
judgment and to remand the case to the first instance court for retrial (and 
production of evidence). The case is slowly moving through the Brazilian 
legal system and Securitas maintains its previous position to the claims.
In addition, several former employees of the EA Group have sued Secu-
ritas and other parties in labor courts and claimed inter alia wages and 
other compensations. The number of labor law cases involving Securitas 
continued to decrease and the claimed amounts are in average relatively 
low. Securitas denies all responsibility for such labor claims. 
Spain – tax audit
The Spanish tax authority has, in connection with audits of Securitas 
Spain, challenged certain interest payments in 2009, 2012 and 2014, 
and decided to reject interest deductions made for the financial years 
2003–2005, 2006–2007 and 2008–2009 respectively. The years 
2003–2005 are finally resolved by the Supreme Court and paid in 2016. 
For years 2006–2007 Securitas has in 2018 requested a leave for 
appeal to the Supreme Court, but has not yet received any decision. The 
years 2008–2009 have been resolved by the court, which Securitas has 
accepted, see further below.
The Spanish Supreme Court issued their judgment during 2016 
regarding the years 2003–2005, implying that the years 2003–2004 
were resolved as time barred and the majority of the interest deduc-
tions for 2005 were disallowed. Securitas closed the years 2003–2005 
in 2016 by payment of tax and interest of MEUR 4.3 (equivalent to 
MSEK 41). 
In June 2017 the superior court Audiencia Nacional issued a negative 
judgment concerning the years 2006–2007, implying that all interest was 
disallowed, in contradiction to the 2016 judgment by the Supreme Court 
on the same matter for the years 2003–2005. This is also contradictory to 
the lower court Tribunal Económico Administrativo Central’s earlier judg-
ment for the years 2008–2009, a judgment that Securitas has accepted 
as final.  
If finally upheld by Spanish courts, the resolution by the Spanish tax 
authorities regarding rejected interest deductions for the years 2006–
2007, and the accepted judgment regarding years 2008–2009, would 
result in a tax of MEUR 29, equivalent to MSEK 300, including interest 
up to December 31, 2019 (as of December 31, 2018 this exposure was 
estimated to MEUR 28, equivalent at the time to MSEK 287). No further 
exposure exists for similar rejected interest deductions after the financial 
year 2009, as the Group adjusted the capitalization of Securitas Spain in 
2009 to avoid future challenges of interest deductions.
Further, the Spanish tax authority decided, in connection with an audit 
of Securitas Spain in 2013, to reject a tax exemption for a demerger of the 
Spanish Systems company, in connection with Securitas AB’s distribution 
of the shares in Securitas Systems AB to its shareholders and the list-
ing on the Stockholm Stock Exchange in 2006. In June 2017, Securitas 
received a negative judgment from the superior court Audiencia Nacional 
and has been granted a leave for appeal with the Supreme Court in May 
2018.
If finally upheld by Spanish courts, the resolution by the Spanish 
tax authorities, concerning the demerger case, would result in a tax of 
MEUR 22, equivalent to MSEK 226, including interest up to Decem-
ber 31, 2019 (as of December 31, 2018 this exposure was estimated to 
MEUR 21, equivalent at the time to MSEK 217).

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
123
Securitas Annual and Sustainability Report 2019
Further, in 2014 the tax authority decided to reject a deduction for a 
currency related liquidation loss in the financial year 2010, relating to a 
company that was acquired in 2004. In 2017 the lower court TEAC issued 
a negative judgment, which was in contradiction to the 2016 Supreme 
Court judgment regarding the basis for disallowing the deduction. 
Securitas has appealed the case to the superior National court Audiencia 
Nacional.
If finally upheld by Spanish courts, the resolution by the Spanish tax 
authorities regarding the liquidation loss would result in a tax of MEUR 18, 
equivalent to MSEK 191, including interest up to December 31, 2019 (as 
of December 31, 2018 this exposure was estimated to MEUR 18, equiva-
lent at the time to MSEK 183).
Provided that the courts decide in Securitas cases in accordance with 
the 2016 Supreme Court judgment, the exposure for the currency related 
liquidation loss for the financial year 2010 is expected to cease.
Securitas believes it has acted in accordance with applicable law and 
will defend its position in the courts. However, the tax resolutions cause 
some uncertainty and it may take several years until all final judgments 
have been received.
Spain – Mutua
Securitas in Spain has received a claim of MEUR 6.3 from the social secu-
rity authorities relating to services allegedly received from Mutua Univer-
sal in the period 1998 to 2007. The authorities are questioning whether 
such services, in such case, were allowed to be provided under applicable 
regulations. This is a consequence of a lawsuit against some of Mutua 
Universal’s former employees. Securitas is affected, as over 2 000 other 
companies, as an indirect beneficiary of the services rendered. Securitas 
is convinced that it has acted in accordance with applicable law.
Other proceedings
Over the years, Securitas has made a number of acquisitions in different 
countries. As a result of such acquisitions, certain contingent liabilities  of 
the businesses acquired have been assumed. The risks relating to such 
contingent liabilities are covered by contractual indemnification, insur-
ance or adequate reserves. 
Companies within the Securitas Group are also involved in a number of 
proceedings, including legal proceedings and tax audits arising out of the 
business. Any liabilities arising out of such proceedings are not expected 
to be material to the business operations or the financial position of the 
Group.
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
124
Securitas Annual and Sustainability Report 2019
  NOTE 39    Financial five year overview1
	
	
	
MSEK
2015
2016
2017
2018
20192
INCOME
 Total sales
80 860
88 162
92 197
101 467
110 899
of which acquired business
270
3 136
718
1 760
1 339
 Acquired sales growth, %
0
4
1
2
1
 Organic sales growth, %
5
7
5
6
4
 Real sales growth, %
6
11
5
8
6
Operating income before amortization
4 089
4 554
4 697
5 304
5 738
 Operating margin, %
5.1
5.2
5.1
5.2
5.2
Amortization and impairment of acquisition related intangible assets
-275
-288
-255
-260
-271
Acquisition related costs
-30
-113
-48
-120
-62
Items affecting comparability
–
–
–
-455
-209
Financial income and expenses
-308
-389
-376
-441
-578
 Income before taxes
3 476
3 764
4 018
4 028
4 618
Taxes
-1 032
-1 118
-1 267
-1 007
-1 256
Net income for the year 
2 444
2 646
2 751
3 021
3 362
– whereof attributable to non-controlling interests
7
4
2
5
5
Average number of shares after dilution (‘000)
365 059
365 059
365 059
365 059
364 993
 Earnings per share after dilution (SEK)
6.67
7.24
7.53
8.26
9.20
CASH FLOW
Operating income before amortization
4 089
4 554
4 697
5 304
5 738
Investments in non-current tangible and intangible assets
-1 329
-1 659
-1 808
-2 188
-3 010
Reversal of depreciation
1 072
1 229
1 445
1 693
2 690
Change in accounts receivable
-707
-1 039
-449
-1 575
-239
Changes in other operating capital employed
274
-46
-48
-62
-277
Cash flow from operating activities
3 399
3 039
3 837
3 172
4 902
 as % of operating income before amortization
83
67
82
60
85
Financial income and expenses paid
-322
-301
-425
-432
-443
Current taxes paid
-914
-1 017
-1 122
-856
-1 191
 Free cash flow 
2 163
1 721
2 290
1 884
3 268
as % of adjusted income
78
52
68
48
83
Free cash flow per share
5.9
4.7
6.3
5.2
9.0
Cash flow from investing activities, acquisitions and divestitures
-147
-3 566
-304
-1 755
-574
Cash flow from items affecting comparability
-27
-17
–
-117
-303
Cash flow from financing activities
-3 303
2 146
-743
-376
-1 699
Cash flow for the year
-1 314
284
1 243
-364
692
Interest-bearing net debt at beginning of year
-10 421
-9 863
-13 431
-12 333
-14 513
Change in lease liabilities
-28
-92
28
-31
-3 332
Change in loans
2 235
-3 332
-654
-1 053
93
Revaluation of financial instruments
1
23
-29
26
60
Translation differences on interest-bearing net debt
-336
-451
510
-758
-541
Interest-bearing net debt at year-end
-9 863
-13 431
-12 333
-14 513
-17 541

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
125
Securitas Annual and Sustainability Report 2019
MSEK
2015
2016
2017
2018
20192
CAPITAL EMPLOYED AND FINANCING
Non-current assets excluding acquisition related items
3 872
4 634
5 384
5 987
9 729
Accounts receivable
11 353
13 353
13 349
15 604
16 120
Other operating capital employed
-10 617
-11 203
-11 173
-12 392
-12 749
Operating capital employed
4 608
6 784
7 560
9 199
13 100
 as % of total sales
6
8
8
9
12
Goodwill
16 429
19 380
18 719
21 061
22 157
Acquisition related intangible assets
987
1 356
1 173
1 458
1 563
Shares in associated companies
369
419
420
452
320
Capital employed
22 393
27 939
27 872
32 170
37 140
 Return on capital employed, %
18
16
17
15
15
Net debt
-9 863
-13 431
-12 333
-14 513
-17 541
Net debt equity ratio, multiple
0.79
0.93
0.79
0.82
0.89
Net debt to EBITDA ratio
1.9
2.4
2.0
2.3
2.2
Interest coverage ratio, multiple
13.1
11.1
11.8
10.7
9.4
 Free cash flow in relation to net debt
0.22
0.13
0.19
0.13
0.19
Shareholders’ equity attributable to equity holders of the Parent Company
12 510
14 487
15 518
17 632
19 569
Non-controlling interests
20
21
21
25
30
Equity per share
34
40
43
48
54
Return on equity, %
21
20
18
18
18
Equity ratio, %
31
30
31
32
32
Financing of capital employed
22 393
27 939
27 872
32 170
37 140
	
	
	
	
	
1 For definitions and calculation of key ratios refer to note 3.
2 Securitas has adopted IFRS 16 Leases as of January 1, 2019. As a consequence, certain lines in the consolidated financial statements  
as well as key ratios are not comparable with the preceding years. For further information refer to note 41.
 Group key ratios according to Securitas’ financial model. Refer to pages 54-55.
Total sales and 
organic sales growth
 Organic sales growth, % 
0
20 000
40 000
60 000
80 000
100 000
120 000
15 16 17 18 19
0
2
4
6
8
10
%
MSEK
Operating income 
before amortization 
and operating margin
 Operating margin, %
15 16 17 18 19
MSEK
%
0
1 000
2 000
3 000
4 000
5 000
6 000
4.5
4.7
4.9
5.1
5.3
5.5
0
2.00
4.00
6.00
8.00
10.00
Earnings per share
15
16
17
18
19
SEK
Free cash ﬂow 
in relation to net debt
15 16 17
18
19
0
5
10
15
20
25
%
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
126
Securitas Annual and Sustainability Report 2019
The impact on the Group´s financial position from the adoption and appli-
cation of IAS 29 Financial reporting in Hyperinflationary economies, as 
described in note 2, is illustrated below. The index used by Securitas for 
the remeasurement of the financial statements in 2019 is the consumer 
price index with base period January 2003. 
EXCHANGE RATES AND INDEX 
Dec 31, 
2019
Dec 31, 
2018
Jul 1, 
20181
Exchange rate SEK/ARS
0.16
0.23
0.33
Index 
17.15
11.15
9.17
NET MONETARY GAIN RECOGNIZED IN THE CONSOLIDATED STATEMENT 
OF INCOME   
MSEK
Jan-Dec 
2019
Jul-Dec 
20181
Financial income and expenses
25
23
Total net monetary gain
25
23
REMEASUREMENT IMPACT RECOGNIZED IN OTHER COMPREHENSIVE 
INCOME 
MSEK
Jan-Dec 
2019
Jul-Dec 
20181
Jul 1, 
20181
Remeasurement on first time adoption 
July 1, 2018
–
275
275
Remeasurement during the year
79
39
–
Total remeasurement for 
hyperinflation, net of taxes
79
314
275
1 First time adoption date for IAS 29 was July 1, 2018.
REMEASUREMENT IMPACT IN THE CONSOLIDATED BALANCE SHEET ON 
THE INITIAL ADOPTION DATE JULY 1, 2018 
MSEK
July 1, 2018
ASSETS
Non-current assets
Goodwill
236
Acquisition related intangible assets
5
Other intangible assets
4
Tangible non-current assets
40
Total non-current assets
285
Current assets
Non-interest-bearing current assets
5
Total current assets
5
TOTAL ASSETS
290
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Attributable to equity holders of the Parent Company
275
Total shareholders' equity
275
Current liabilities
Non-interest-bearing current liabilities and provisions
15
Total current liabilities
15
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
290
REMEASUREMENT IMPACT IN THE CONSOLIDATED CAPITAL EMPLOYED 
AND FINANCING ON THE INITIAL ADOPTION DATE JULY 1, 2018 
MSEK
July 1, 2018
Operating capital employed
34
Goodwill
236
Acquisition related intangible assets
5
Capital employed
275
Shareholders' equity
275
  NOTE 40    Remeasurement for hyperinflation

NOTES AND COMMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS
127
Securitas Annual and Sustainability Report 2019
As described in note 2 Accounting principles, Securitas has adopted 
IFRS 16 Leases as of January 1, 2019. The effects of the adoption are 
described below. 
The cumulative effect of the adoption has been recognized without 
restatement of the comparative periods. As a consequence, certain lines 
in the consolidated financial statements and segment overviews as well 
as key ratios are not comparable with the preceding year.
Securitas’ lease agreements are mainly attributable to buildings and 
vehicles. As from the transition to IFRS 16, they are accounted for as 
right-of-use assets and long-term and current lease liabilities in the con-
solidated balance sheet. This includes leased fixed assets that according 
to IAS 17 were classified as financial leases in 2018.
In the consolidated statement of income, depreciation of the right-of-
use assets is accounted for on the lines production expenses and selling 
and administrative expenses. Interest expenses are accounted for on the 
line financial expenses. In the Group’s segment overviews, the effects of 
the adoption of IFRS 16 are accounted for under each segment.
The lease liabilities on January 1, 2019 have been measured at the 
present value of remaining lease payments, discounted by using the 
incremental borrowing rate for each country. The Group’s average incre-
mental borrowing rate on lease liabilities recognized in the balance sheet 
on January 1, 2019 was approximately 3.9%. The right-of-use assets on 
January 1, 2019 have been measured at an amount equal to the lease 
liabilities. 
Extension clauses are evaluated for each lease agreement and are 
applied based on the best estimate at each closing. Payments for short-
term leases, where the lease term ends within 12 months of the date of 
initial application, as well as leases of low-value assets, have been recog-
nized on a straight-line basis as an expense in the statement of income 
and thus excluded from the lease liabilities accounted for under IFRS 16.
In the consolidated statement of cash flow, interest expenses are 
accounted for on the line financial items paid under cash flow from opera-
tions while principal payments are included on the line change in lease 
liabilities under cash flow from financing activities. 
The impact on the consolidated statement of income and consolidated 
balance sheet from the adoption and application of IFRS 16 is specified in 
the tables below. The effect on deferred tax from IFRS 16 is accounted for 
in note 15.
IMPACT ON CONSOLIDATED STATEMENT OF INCOME 
MSEK
Jan-Dec 
2019
Operating income before amortization1
80
Financial expenses 
-148
Income before taxes 
-68
Deferred taxes
19
Net income for the year
-49
Earnings per share before and after dilution (SEK)
-0.13
Earnings per share before and after dilution and before items 
affecting comparability (SEK)
-0.13
1 Depreciation of right-of-use assets included in operating income in 2019 was MSEK -890.
BRIDGE BETWEEN OPERATING LEASES UNDER IAS 17 AND  
LEASE LIABILITY ACCORDING TO IFRS 16
MSEK
Jan 1, 2019
Operating leases under IAS 17 at December 31, 2018 
4 259
Effect of discounting
-504
Finance leases recognized at  December 31, 2018 (note 31 and 34)
222
Short-term leases recognized on a straight-line basis as expense
-269
Low-value leases recognized on a straight-line basis as expense
-53
Lease liability under IFRS 16 at January 1, 2019
3 655
IMPACT ON CONSOLIDATED CAPITAL EMPLOYED AND FINANCING
MSEK
Jan 1, 2019
Capital employed
Previously recognized financial lease assets (note 21)
222
Additional right-of-use assets under IFRS 16
3 433
Operating capital employed at January 1, 2019
3 655
Financing
Previously recognized financial lease liabilities
222
Additional lease liabilities under IFRS 16
3 433
Net debt at January 1, 2019
3 655
IMPACT  ON CONSOLIDATED BALANCE SHEET
MSEK
Jan 1, 2019
Assets
Previously recognized financial lease assets (note 21)
222
Additional right-of-use assets under IFRS 16
3 433
Total right-of-use assets at January 1, 2019
3 655
Liabilities
Previously recognized financial lease liabilities
222
Additional lease liabilities under IFRS 16
3 433
Total lease liabilities at January 1, 2019
3 655
  NOTE 41    Adoption and impact of IFRS 16 Leases
KEY RATIOS
Dec 31, 2019
Less: Impact from 
IFRS 16
Dec 31, 2019 
adjusted for IFRS 16
Dec 31, 2018
Net debt to EBITDA
2.2
-0.2
2.0
2.3
Free cash flow to Net debt
0.19
0.04
0.23
0.13
Interest coverage ratio
9.4
2.8
12.2
10.7
Operating capital employed as % of sales
12
-3
9
9
Return on operating capital employed, %
50
7
57
58
Return on capital employed, %
15
1
16
15
Net debt to equity ratio
0.89
-0.17
0.72
0.82
Equity ratio, %
32
1
33
32
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

PARENT COMPANY FINANCIAL STATEMENTS
128
Securitas Annual and Sustainability Report 2019
Parent Company statement of income	
MSEK
Note
2019
2018
License fees and other income
44
1 449
1 196
Gross income
1 449
1 196
Administrative expenses
46, 47
-1 034
-808
Other operating income
46
34
30
Operating income
449
418
Result of financial investments
Dividend
44
1 980
1 593
Interest income
44
612
659
Interest expenses
44
-443
-418
Other financial income and expenses, net
48
60
435
Total financial income and expenses
2 209
2 269
Income after financial items
2 658
2 687
Appropriations
Group contributions from subsidiaries
44
340
338
Group contributions to subsidiaries
44
-212
-136
Depreciation and amortization in excess of plan
57
1
2
Transfer to tax allocation reserve
57
-234
-333
Total appropriations
-105
-129
Income before taxes
2 553
2 558
Current taxes
49
-151
-221
Deferred taxes
49
-38
-68
Net income for the year
2 364
2 269
Parent Company statement of comprehensive income	
MSEK
Note
2019
2018
Net income for the year
2 364
2 269
Other comprehensive income
Items that subsequently may be reclassified to the statement of income
Cash flow hedges net of tax
45
36
63
Cost of hedging net of tax
45
12
-44
Total items that subsequently may be reclassified to the statement of income
48
19
Other comprehensive income
49
48
19
Total comprehensive income for the year
2 412
2 288
Parent Company statement of cash flow	
MSEK
Note
2019
2018
Operations
Operating income
449
418
Reversal of depreciation
50, 51
2
26
Financial items received
2 602
2 251
Financial items paid
-451
-403
Current taxes paid
-210
-125
Change in other operating capital employed
169
428
Cash flow from operations
2 561
2 595
Investing activities
Investments in and disposals of non-current tangible and intangible assets
50, 51
98
-11
Shares in subsidiaries
52
-2 633
-36
Cash flow from investing activities
-2 535
-47
Financing activities
Dividend paid
-1 606
-1 460
Proceeds from bond loans
1 445
3 004
Redemption of bond loans
-792
-3 480
Proceeds from commercial paper
5 098
2 500
Redemption of commercial paper
-5 300
-1 550
Change in other interest-bearing net debt excluding liquid funds
1 399
-2 179
Cash flow from financing activities
244
-3 165
Cash flow for the year
270
-617
Liquid funds at beginning of year
1 326
1 943
Liquid funds at year-end
55
1 596
1 326

PARENT COMPANY FINANCIAL STATEMENTS
129
Securitas Annual and Sustainability Report 2019
Parent Company balance sheet	
MSEK
Note
2019
2018
ASSETS
Non-current assets
Intangible assets
50
29
128
Machinery and equipment
51
5
6
Shares in subsidiaries
52
43 911
41 332
Shares in associated companies
53
112
112
Interest-bearing financial non-current assets
45
1 375
1 542
Deferred tax assets
49
27
28
Other long-term receivables
698
358
Total non-current assets
46 157
43 506
Current assets
Current receivables from subsidiaries
385
395
Interest-bearing current receivables from subsidiaries
45
3 692
5 574
Other current receivables
50
18
Current tax assets
109
–
Prepaid expenses and accrued income
54
152
9
Other interest-bearing current assets
45
2
7
Cash and bank deposits
55
1 596
1 326
Total current assets
5 944
7 329
TOTAL ASSETS
52 101
50 835
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity
Restricted equity
Share capital
365
365
Legal reserve
7 363
7 363
Development expenditure reserve
9
69
Total restricted equity
7 737
7 797
Non-restricted equity
Hedging reserve
63
15
Retained earnings
19 112
18 418
Net income for the year
2 364
2 269
Total non-restricted equity
21 539
20 702
Total shareholders’ equity
56
29 276
28 499
Untaxed reserves
57
687
455
Long-term liabilities
Long-term loan liabilities
45
17 189
15 818
Other long-term liabilities
146
151
Deferred tax liabilities
150
100
Total long-term liabilities
58
17 485
16 069
Current liabilities
Current liabilities to subsidiaries
638
378
Interest-bearing current liabilities to subsidiaries
45
2 149
2 124
Group account bank overdraft
206
772
Other short-term loan liabilities
45
1 137
2 172
Accounts payable
15
12
Accrued expenses and prepaid income
59
283
284
Current tax liabilities
218
66
Other current liabilities
7
4
Total current liabilities
4 653
5 812
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
52 101
50 835

PARENT COMPANY FINANCIAL STATEMENTS
130
Securitas Annual and Sustainability Report 2019
Parent Company statement of changes in shareholders’ equity
MSEK
Share  
capital1
Legal 
reserve
Development 
expenditure 
reserve
Hedging
reserve
Retained
earnings and 
net income
for the year
Total share-
holders’ 
equity
Opening balance 2018
365
7 363
57
-4
19 883
27 664
Net income for the year
–
–
–
–
2 269
2 269
Other comprehensive income
Items that subsequently may be  
reclassified to the statement of income
Cash flow hedges net of tax2
–
–
–
63
–
63
Cost of hedging net of tax2
–
–
–
-44
–
-44
Total items that subsequently may be  
reclassified to the statement of income
–
–
–
19
–
19
Other comprehensive income
–
–
–
19
–
19
Total comprehensive income for the year
–
–
–
19
2 269
2 288
Share-based incentive schemes1
–
–
–
–
7
7
Dividend paid to shareholders of the Parent Company
–
–
–
–
-1 460
-1 460
Transfer to development expenditure reserve
–
–
28
–
-28
–
Transfer from development expenditure reserve
–
–
-16
–
16
–
Closing balance 2018
365
7 363
69
15
20 687
28 499
Opening balance 2019
365
7 363
69
15
20 687
28 499
Net income for the year
–
–
–
–
2 364
2 364
Other comprehensive income
Items that subsequently may be  
reclassified to the statement of income
Cash flow hedges net of tax2
–
–
–
36
–
36
Cost of hedging net of tax2
–
–
–
12
–
12
Total items that subsequently may be  
reclassified to the statement of income
–
–
–
48
–
48
Other comprehensive income
–
–
–
48
–
48
Total comprehensive income for the year
–
–
–
48
2 364
2 412
Share-based incentive schemes1
–
–
–
–
-29
-29
Dividend paid to shareholders of the Parent Company
–
–
–
–
-1 606
-1 606
Transfer to development expenditure reserve
–
–
1
–
-1
–
Transfer from development expenditure reserve
–
–
-61
–
61
–
Closing balance 2019
365
7 363
9
63
21 476
29 276
	
	
	
	
	
	
1 Further information is provided in note 56.
2 A specification can be found in note 45, in the table revaluation of financial instruments, as well as in note 49.

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
131
Securitas Annual and Sustainability Report 2019
  NOTE 42    Accounting principles
The Parent Company’s financial statements are prepared in accordance 
with the Swedish Annual Accounts Act and the Swedish Financial Report-
ing Board’s standard RFR 2 Accounting for Legal Entities. The Parent 
Company thus follows the same accounting principles as the Group, 
which are described in note 2, when relevant and except in the cases 
stated below. The differences that exist between the Parent Company’s 
and the Group’s accounting principles are a result of the restrictions that 
the Swedish Annual Accounts Act, the Swedish Act on Safeguarding of 
Pension Commitments and the options that RFR 2 allow for IFRS in the 
Parent Company.
RFR 2: IFRS 3 Business combinations
The Parent Company measures the acquisition cost as the sum of the 
acquisition-date fair values of assets transferred, liabilities incurred or 
transferred and all costs that are directly attributable to the acquisition. 
Contingent considerations are recognized as part of the acquisition cost if 
it is probable that they will be realized. The acquisition cost is adjusted in 
subsequent periods if the initial assessment needs to be revised.
RFR 2: IFRS 9 Financial instruments
The Parent Company follows IFRS 9 except for financial guarantees in 
relation to subsidiaries. For further information refer to the accounting 
principles adopted by the Group for financial instruments in note 2.
RFR 2: IFRS 15 Revenue
Anticipated dividend from a subsidiary is recognized as income in the 
Parent Company in accordance with RFR 2 if the Parent Company has the 
exclusive right to decide the amount of the dividend from the subsidiary. 
The Parent Company must furthermore ensure that the dividend is in line 
with the subsidiary’s dividend capacity. Dividend from a subsidiary that 
has not been anticipated is accounted for on a cash basis.
RFR 2: IFRS 16 Leases
The Parent Company does not apply IFRS 16. Consequently, leases 
where the Parent Company is the lessee are recognized as an operating 
expense in the statement of income on a linear basis over the lease term. 
There are no lease contracts where the Parent Company is the lessor.
RFR 2: IAS 19 Employee benefits
Accounting for defined benefit plans according to the Swedish Act on 
Safeguarding of Pension Commitments leads to differences between the 
accounting in the Parent Company and the Group. These differences have 
no material impact on the employee benefits relating to the employees of 
the Parent Company. Pension solutions either fall within the framework of 
the ITP–plan that is insured via Alecta, which is described in note 32, or in 
all material aspects consist of other defined contribution plans.  
RFR 2: IAS 21 Effects of changes in foreign exchange rates
Exchange rate differences arising on a monetary item that forms part 
of the Parent Company’s net investment in a foreign subsidiary are 
accounted for in the Parent Company’s statement of income, in accor-
dance with RFR 2.
RFR 2: IAS 27 Consolidated and 
separate financial statements 
The Parent Company applies the alternative rule in RFR 2: IAS 27 related 
to Group contributions, which means that Group contributions from sub-
sidiaries as well as Group contributions to subsidiaries are accounted for 
as appropriations in the statement of income. 
Shares in subsidiaries
Shares in subsidiaries are initially accounted for at cost with subsequent 
adjustments for capital contributions, impairment and revaluation of 
deferred considerations. Shares in subsidiaries are reviewed for impair-
ment whenever events or changes in circumstances indicate that the  
carrying amount may not be recoverable. 
Securitas’ share-based incentive scheme
In addition to the Group’s accounting principles for share-based payments 
(IFRS 2) as described in note 2 Accounting principles, the following has 
been applied in the Parent Company’s financial statements. The Parent 
Company has secured the delivery of shares according to Securitas short-
term, sharebased incentive scheme by entering into a swap agreement 
with a third party regarding purchase of shares. 
To the extent that shares according to the swap agreement is subject 
to delivery to employees in other Group companies than the Parent Com-
pany, a liability to Group companies has been recorded in the Parent Com-
pany’s accounts. This liability is recorded at the value of the commitment 
that Securitas AB has to the subsidiaries to deliver shares, that is the num-
ber of shares to be delivered according to the swap agreement at the lat-
est share price for Securitas AB’s series B share. Social security expenses 
are calculated based on the market value of the shares that potentially will 
be allocated. Fluctuations in the share price for these shares thus lead to 
changes in social security expenses that impact the Parent Company’s 
and Group’s income. 
This is the only impact on the Parent Company’s and Group’s income 
due to fluctuations in the share price for the shares that potentially will 
be allocated. This means that any possible increase or decrease of the 
liability to Group companies has not been accounted for in the Parent 
Company’s income statement.
  NOTE 43    Events after the balance sheet date
Approval of the Annual Report and  
Consolidated Financial Statements for 2019
This Annual Report including the Consolidated Financial Statements 
was approved by the Board of Directors and the President and CEO of 
Securitas AB on March 18, 2020.
Other significant events after the balance sheet date
In order to hedge the share portion of Securitas short-term, share-based 
incentive scheme 2019, Securitas AB entered into a swap agreement 
with a third party in the beginning of March 2020. 
There have been no other significant events with effect on the financial 
reporting after the balance sheet date.
Notes
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
132
Securitas Annual and Sustainability Report 2019
  NOTE 44    Transactions with related parties
	
	
	
Transactions between the Parent Company and subsidiaries are priced in accordance with business principles.	
THE PARENT COMPANY’S TRANSACTIONS WITH RELATED PARTIES COMPRISE
MSEK
2019
2018
License fees from subsidiaries
1 434
1 177
Other income from subsidiaries
15
19
Dividends from subsidiaries
1 980
1 593
Interest income from subsidiaries
602
630
Interest expenses to subsidiaries
-53
-47
Group contributions from subsidiaries
340
338
Group contributions to subsidiaries
-212
-136
Guarantees issued on behalf of subsidiaries
2 424
2 281
	
	
  NOTE 45    Financial risk management	
	
	
	
	
The Parent Company follows, as stated in note 42, IFRS 9 Financial instruments. Refer to note 2 and note 7 for further information about financial risks 
that are applicable also for the Parent Company.
LIQUIDITY REPORT AS PER DECEMBER 31, 2019 AND 2018
MSEK
Total
< 1 year
Between 1 year
and < 3 years
Between 3 years
and 5 years
> 5 years
December 31, 2019
Borrowings
-19 441
-1 928
-9 030
-5 315
-3 168
Derivatives outflows
-13 941
-9 070
-3 141
-65
-1 665
Accounts payable
-15
-15
–
–
–
Total outflows
-33 397
-11 013
-12 171
-5 380
-4 833
Investments
5 216
5 187
3
8
18
Derivatives receipts
13 754
9 046
3 136
66
1 506
Total inflows
18 970
14 233
3 139
74
1 524
Net cash flows, total1
-14 427
3 220
-9 032
-5 306
-3 309
December 31, 2018
Borrowings
-19 329
-3 056
-5 707
-3 789
-6 777
Derivatives outflows
-24 232
-19 689
-80
-2 875
-1 588
Accounts payable
-12
-12
–
–
–
Total outflows
-43 573
-22 757
-5 787
-6 664
-8 365
Investments
6 820
6 708
16
96
–
Derivatives receipts
24 385
19 652
217
3 007
1 509
Total inflows
31 205
26 360
233
3 103
1 509
Net cash flows, total1
-12 368
3 603
-5 554
-3 561
-6 856
	
	
	
	
1 Variable rate cash flows have been estimated using the relevant yield curve as at the balance sheet date.
HEDGING RESERVE AS PER DECEMBER 31, 2019 AND 2018
MSEK
Cost of 
hedging 
reserve 
Interest rate 
cash flow 
hedges
Currency 
cash flow 
hedges
Total  
before tax
Deferred 
tax
Total net  
of tax
Opening balance January 1, 2019
-56
10
65
19
-4
15
Change in fair value of hedging instrument recognized in other 
comprehensive income
16
-18
117
115
-25
90
Reclassified from other comprehensive income to profit or loss
–
6
-60
-54
12
-42
Closing balance December 31, 2019
-40
-2
122
80
-17
63
Opening balance January 1, 2018
–
5
-10
-5
1
-4
Change in fair value of hedging instrument recognized in other 
comprehensive income
-56
-1
195
138
-30
108
Reclassified from other comprehensive income to profit or loss
–
6
-120
-114
25
-89
Closing balance December 31, 2018
-56
10
65
19
-4
15

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
133
Securitas Annual and Sustainability Report 2019
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
REVALUATION OF FINANCIAL INSTRUMENTS1	
MSEK
2019
2018
Recognized in the statement of income
Fair value adjustment to hedged item in fair value hedge
350
358
Fair value adjustment to hedging instrument in fair value hedge
-350
-358
Other financial income and expenses2,3
-6
7
Deferred tax
–
–
Impact on net income for the year
-6
7
Recognized via hedging reserve in other comprehensive income
Transfer to cash flow hedging reserve before tax
99
194
Transfer to  cost of hedging reserve before tax
16
-56
Deferred tax on transfer to hedging reserve
-25
-30
Transfer to hedging reserve net of tax
90
108
Transfer to statement of income before tax
-54
-114
Deferred tax on transfer to statement of income
12
25
Transfer to statement of income net of tax
-42
-89
Change of cash flow hedging reserve before tax
45
80
Change of cost of hedging reserve before tax
16
-56
Total change of hedging reserve before tax4
61
24
Deferred tax on total change of hedging reserve4
-13
-5
Total change of hedging reserve net of tax
48
19
Total impact on shareholders' equity as specified above
Total revaluation before tax5
55
31
Deferred tax on total revaluation5
-13
-5
Total revaluation after tax
42
26
	
	
	
1 Securitas has early adopted the amendments to IFRS 9, specifically the temporary relief from certain accounting requirements to hedging relationships directly affected by the IBOR reform.
2  Related to financial assets and financial liabilities at fair value through profit or loss. 
3  There was no significant ineffectiveness in the fair value hedges or in the cash flow hedges.
4  Total of transfer to hedging reserve and transfer from hedging reserve to statement of income.
5  Total revaluation and deferred tax recognized via statement of income and via other comprehensive income.
DERIVATIVES IN THE BALANCE SHEET
MSEK
2019
2018
Interest-bearing financial non-current assets
Fair value hedges
-116
110
Cash flow hedges
356
283
Other derivative positions1
-27
-39
Total derivatives included in interest-bearing financial non-current assets
213
354
Interest-bearing current receivables from subsidiaries
Other derivative positions
1
0
Total derivatives included in interest-bearing current receivables from subsidiaries
1
0
Other interest-bearing current assets
Other derivative positions
2
7
Total derivatives included in other interest-bearing current assets
2
7
Long-term loan liabilities
Fair value hedges
288
165
Cash flow hedges
-117
-67
Other derivative positions2
13
18
Total derivatives included in long-term loan liabilities
184
116
 
Interest-bearing current liabilities to subsidiaries
Other derivative positions
–
22
Total derivatives included in interest-bearing current liabilities to subsidiaries
–
22
Other short-term loan liabilities
Other derivative positions
15
15
Total derivatives included in other short-term loan liabilities
15
15
1 Cross currency interest rate swaps are split into different components, of which some elements are negative when the overall fair value is positive.
2 Cross currency interest rate swaps are split into different components, of which some elements are positive when the overall fair value is negative.

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
134
Securitas Annual and Sustainability Report 2019
FAIR VALUE – HIERARCHY AS PER DECEMBER 31, 2019 AND 2018	
	
	
Quoted
market prices
Valuation techniques
using observable
market data
Valuation techniques
using non-observable
market data
Total
MSEK
2019
2018
2019
2018
2019
2018
2019
2018
Financial assets at fair value through profit or loss
 – 
 – 
3
8
 – 
 – 
3
8
Financial liabilities at fair value through profit or loss
 – 
 – 
-15
-36
 – 
 – 
-15
-36
Derivatives designated for hedging with positive fair value
 – 
 – 
213
354
 – 
 – 
213
354
Derivatives designated for hedging with negative fair value
 – 
 – 
-184
-116
 – 
 – 
-184
-116
LIABILITIES FROM FINANCING ACTIVITIES 2019 AND 2018
Non-cash changes
MSEK
Opening balance 
Jan 1
Cash flows1
Reclassification
Other changes
Translation 
differences
Closing balance 
Dec 31
2019
Long-term borrowings
15 818
1 490
-373
68
186
17 189
Short-term borrowings
5 068
-2 086
373
-22
159
3 492
Derivative assets held to 
hedge external borrowings
-516
–
–
-122
–
-638
Total
20 370
-596
–
-76
345
20 043
2018
Long-term borrowings
12 887
3 004
-760
115
572
15 818
Short-term borrowings
8 298
-4 173
760
-61
244
5 068
Derivative assets held to  
hedge external borrowings
-299
–
–
-217
–
-516
Total
20 886
-1 169
–
-163
816
20 370
1 Excluding other derivative positions and dividend paid to shareholders of the Parent Company, which are included in cash flow from financing activities in the consolidated statement of cash flow.
  NOTE 46    Administrative expenses and other operating income	
Administrative expenses
AUDIT FEES AND REIMBURSEMENTS
MSEK
2019
2018
PwC
Audit assignments
9
7
Additional audit assignments
2
2
Tax assignments
1
2
Other assignments1
2
2
Total1
14
13
	
	
	
1  Total audit fees and reimbursements to PwC amounts to MSEK 14 whereof MSEK 1 does not relate  
to PwC Sweden,  included in Other assignments. 
Additional audit assignments mainly comprise review of the interim 
report for the second quarter as well as review of financial reporting and 
internal control in additional countries than those included in the agreed 
audit plan. Tax assignments mainly comprise tax return compliance, 
transfer pricing and questions related to  tax legislation compliance. Other 
assignments mainly comprise review of pension plans.
Other operating income
Other operating income consists in its entirety of trade mark fees for the 
use of the Securitas brand name.
  NOTE 47    Personnel
AVERAGE NUMBER OF YEARLY EMPLOYEES: DISTRIBUTION BETWEEN WOMEN AND MEN
Women
Men
Total
2019
2018
2019
2018
2019
2018
Board of Directors
3
3
5
5
8
8
President
–
–
1
1
1
1
Other employees, Sweden
31
28
21
22
52
50

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
135
Securitas Annual and Sustainability Report 2019
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
STAFF COSTS
2019
2018
Of which bonuses
MSEK
Salaries
Social 
benefits
(of which 
pensions)
Salaries
Social 
benefits
(of which 
pensions)
2019
2018
Board of Directors and President1
29
8
(1)
31
7
(1)
1
6
Other employees
84
54
(19)
73
42
(13)
12
17
Total
113
62
(20)
104
49
(14)
13
23
	
	
	
	
	
	
	
	
	
	
	
	
1 Refer to note 9 for further information regarding remuneration to the Board of Directors and President.
	
     Other financial income  
  NOTE 48     and expenses, net	
	
	
	
MSEK
2019
2018
Impairment losses, shares in subsidiaries1
-54
–
Exchange rate differences, net
138
447
Bank costs and similar income / expense items
-18
-19
Revaluation of financial instruments
-6
7
Total other financial income and expenses, net
60
435
	
	
	
1 Impairment losses 2019 for Securitas Argentina S.A. have been recognized as a combination of 
adverse movements in foreign currency rates and negative underlying performance.
  NOTE 49    Taxes
Statement of income	
TAX EXPENSE
MSEK
2019
2018
Tax on income before taxes
Current taxes
-151
-221
Deferred taxes
-38
-68
Total tax expense
-189
-289
	
	
	
The Swedish corporate tax rate was 21.4 percent (22.0).
DIFFERENCE BETWEEN STATUTORY SWEDISH TAX RATE  
AND ACTUAL TAX EXPENSE FOR THE PARENT COMPANY
MSEK
2019
2018
Income before taxes according  
to the statement of income
2 553
2 558
Tax based on Swedish tax rate
-546
-563
Tax related to untaxed reserves
-50
-73
Tax related to previous years / foreign  
withholding tax
-1
-1
Tax related to non-taxable income
424
351
Tax related to non-deductible expenses
-16
-3
Actual tax expense
-189
-289
Tax related to non-taxable income in 2019 and 2018 mainly relates to 
dividends from subsidiaries. Tax related to non-deductible expenses in 
2019 relates mainly to write-down of shares in subsidiaries and in 2018 
non-deductible expenses was mainly related to miscellaneous non-
deductible expenses.  
Other comprehensive income
TAX ON OTHER COMPREHENSIVE INCOME
MSEK
2019
2018
Deferred tax on cash flow hedges
-9
-17
Deferred tax on cost of hedging
-4
12
Deferred tax on other comprehensive income
-13
-5
	
	
	
Balance sheet
Deferred tax assets are attributable to employee related debt.
Tax loss carryforwards
The tax loss carryforwards for the Parent Company amounted to  MSEK 0 
(0) as of December 31, 2019.
  NOTE 50    Intangible assets1
	
	
	
MSEK
2019
2018
Opening balance
307
288
Disposals2
-213
-9
Capital expenditures
2
28
Closing accumulated balance
96
307
Opening amortization
-179
-159
Disposals2
113
5
Amortization for the year
-1
-25
Closing accumulated amortization
-67
-179
Closing residual value
29
128
	
	
	
1  In 2019, mainly related to the brand name Securitas in one of the Group’s countries of operations, 
included with MSEK 16 (16). The trademark is tested annually for impairment. Refer to note 17 sec-
tion impairment testing for further information.  
In 2018, mainly related to Securitas Guard Management System, which is a system used for commu-
nicating, coordinating, performing and reporting services. 
2  In 2019, mainly related to Securitas Guard Management System, which has been disposed to a Group 
company.  
  NOTE 51    Machinery and equipment
	
	
	
MSEK
2019
2018
Opening balance
24
61
Disposals
0
-35
Capital expenditures
0
0
Write-offs
–
-2
Closing accumulated balance
24
24
Opening depreciation
-18
-41
Disposals
0
22
Write-offs
–
2
Depreciation for the year
-1
-1
Closing accumulated depreciation
-19
-18
Closing residual value
5
6

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
136
Securitas Annual and Sustainability Report 2019
  NOTE 52    Shares in subsidiaries1 
	
	
	
Subsidiary name
Corporate identity no.
Domicile
Number of 
shares 2019
% of share capital /
voting rights 2019
Book value  
2019, MSEK
Book value  
2018, MSEK
Grupo Securitas Mexico S.A de C.V2
GSM930817U48
Monterrey
14 999
99.98
44
14
Protectas S.A.
CH-550-0084385-3
Lausanne
50 000
100
33
33
Securitas Argentina S.A.3
1587929
Buenos Aires
6 882 400
20
2
13
Securitas Asia Holding AB
556691-8800
Stockholm
100 000
100
286
286
Securitas Aviation d.o.o.
MBS 080689871
Zagreb
1
100
1
1
Securitas BH d.o.o.
65-01-0503-11
Sarajevo
–
100
87
87
Securitas Biztonsági  
Szolgáltatások Magyarország Kft
Cg.01-09-721946
Budapest
–
100
22
22
Securitas Bulgaria Ltd
204820136
Sofia
200
100
0
0
Securitas Canada Ltd
454437-4
Toronto
4 004
100
86
86
Securitas ČR sro
43872026
Prague
–
100
186
186
Securitas Eesti AS
10188743
Tallinn
1 371
100
32
32
Securitas Fire & Safety Services SRL4
J40 / 13561 / 2007
Bucharest
1
5
0
0
Securitas Group Reinsurance DAC
317030
Dublin
2 000 000
100
576
576
Securitas Holding GmbH
HRB 33348
Düsseldorf
1
100
2 572
2 572
Securitas Holdings Inc.
95-4754543
Parsippany
100
100
2 208
2 208
Securitas Hrvatska d.o.o
MBS 080132523
Zagreb
1
100
177
177
Securitas Intelligent Services AB
556655-4670
Stockholm
1 000
100
50
50
Securitas Invest AB
556630-3995
Stockholm
1 000
100
7
7
Securitas Middle East and Africa Holding AB
556771-4406
Stockholm
100 000
100
192
180
Securitas Montenegro d.o.o.
02387620
Niksic
–
100
1
1
Securitas Nordic Holding AB
556248-3627
Stockholm
1 000 000
100
9 269
9 269
Securitas NV5
0427.388.334
Brussels
8 238
99.90
942
942
Securitas Podjetje za varovanje d.o.o.
8075280000
Ljubljana
–
100
0
0
Securitas Polska Sp. z o. o.
0000036743
Warsaw
18 000
100
27
27
Securitas Rental AB
556376-3829
Stockholm
1 000
100
4
4
Securitas Security Consulting Holding AB
556087-1468
Stockholm
1 000
100
137
128
Securitas Security Services Ireland Ltd
275069
Dublin
2 410 002
100
29
29
Securitas Seguridad Holding SL
B83446831
Madrid
7 267
100
8 398
8 043
Securitas Services d.o.o.
17487809
Belgrade
–
100
148
148
Securitas Services Holding U.K. Ltd
5759961
London
34 000 400
100
976
976
Securitas Services International BV
33287487
Amsterdam
25 000
100
2 345
2 345
Securitas Services Romania SRL
J40 / 2222 / 2001
Bucharest
21 980
100
49
49
Securitas Sicherheitsdienstleistungen GmbH
FN148202w
Vienna
–
100
92
92
Securitas SK sro
36768073
Prievidza
–
100
33
1
Securitas Toolbox Ltd
316907
Dublin
100
100
0
0
Securitas Transport Aviation Security AB
556691-8917
Stockholm
5 100 000
100
425
273
Securitas Treasury Ireland Ltd
152440
Dublin
21 075 470
100
14 475
12 475
Total shares in subsidiaries
43 911
41 332
1 The main business in the subsidiaries is specialized guarding and mobile services, monitoring, 
technical solutions and consulting and investigations. The subsidiaries also comprise of the Group’s 
internal bank, Securitas Treasury Ireland Ltd, as well as the Group’s internal insurance company,  
Securitas Group Reinsurance DAC. A complete specification of the subsidiaries can be obtained from 
the Parent Company.
2 The remaining 0.02 percent of Grupo Securitas Mexico S.A de C.V are held by Securitas Rental AB.
3 The remaining 80 percent of Securitas Argentina S.A. are held by Securitas Seguridad Holding SL.
4 The remaining 95 percent of Securitas Fire & Safety Services SRL are held by Securitas Services 
Romania SRL.
5 The remaining 0.1 percent of Securitas NV are held by Securitas Rental AB.
CHANGE ANALYSIS OF SHARES IN SUBSIDIARIES
MSEK
2019
2018
Opening balance
41 332
41 296
Acquisitions1
32
–
Capital contributions
2 601
37
Impairment losses2
-54
–
Revaluation of deferred considerations
–
-1
Closing balance
43 911
41 332
1 Intra group acquisition relates to Securitas SK sro.
2 Impairment losses 2019 for Securitas Argentina S.A. have been recognized as a combination of 
adverse movements in foreign currency rates and negative underlying performance.
  NOTE 53    Shares in associated companies
HOLDINGS 2019 AND 2018	
Company
Domicile
Share in 
equity, %
Voting 
rights, %
Book value, 
MSEK
Walsons Services Pvt Ltd
Delhi
49
49
112
Holdings 2019
112
Walsons Services Pvt Ltd
Delhi
49
49
112
Holdings 2018
112

NOTES AND COMMENTS TO THE PARENT COMPANY FINANCIAL STATEMENTS
137
Securitas Annual and Sustainability Report 2019
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
  NOTE 54    Prepaid expenses and accrued income
	
	
MSEK
2019
2018
Prepaid software licenses and support costs
2
4
Prepaid insurance premiums
1
1
Other prepaid expenses
5
4
Total prepaid expenses and accrued income
8
9
  NOTE 55    Liquid funds
Liquid funds include short-term investments with a maximum duration 
of 90 days that are readily convertible to a known amount of cash and 
subject to an insignificant risk of change in value. Liquid funds also include 
cash and bank deposits. Short-term investments refer to fixed interest 
rate bank deposits.
In the Parent Company’s balance sheet, utilized internal credits in the Swed-
ish cash-pool account are reported under the Group account bank overdraft.
  NOTE 56    Shareholders’ equity
Number of shares December 31, 2019
Number of 
shares
MSEK
Series A
17 142 600
17
Series B
347 916 297
348
Total number of shares/share capital
365 058 897
365
Less: Treasury shares
-125 000
–
Total number of shares outstanding1
364 933 897
–
1 The quota value is SEK 1.00 per share.
The number of Series A shares is unchanged in relation to December 31, 
2018. During the year, 125 000 Series B shares have been repurchased 
as a hedge for the long-term incentive scheme. As of December 31, 2019 
there were no outstanding convertible debenture loans that could result 
in any dilution of the share capital.
Each Series A share carries ten votes and each Series B share one vote.
This is the only difference between the two series of shares.
Shareholders with more than 10 percent of the votes
The principal shareholders are Investment AB Latour with 10.9 percent 
of the capital and 29.6 percent of the votes, and Melker Schörling AB with 
4.1 percent of the capital and 10.7 percent of the votes.
Proposed allocation of earnings 
The statements of income and the balance sheets of the Parent Company 
and the Group are subject to adoption by the Annual General Meeting on 
May 7, 2020.
RETAINED EARNINGS IN THE PARENT COMPANY AVAILABLE  
FOR DISTRIBUTION
MSEK1
Hedging reserve
63
Retained earnings
19 112
Net income for the year2
2 364
Total
21 539
THE BOARD OF DIRECTORS PROPOSED THAT THE EARNINGS  
ARE ALLOCATED AS ­FOLLOWS
MSEK1
a dividend to the shareholders of SEK 4.80 per share3 
1 752
retained earnings to be carried forward3 
19 787
Total
21 539
	
	
	
	
1 Refer to the Report of the Board of Directors for the proposed allocation of earnings in SEK and for 
the Board’s statement on the proposed dividend.
2 Includes Group contributions to subsidiaries of MSEK 212.
3 Calculated on the number of shares outstanding as per February 6, 2020. Excluding 125 000  
treasury shares.
Share-based incentive scheme
Securitas’ share-based incentive scheme has had the following impact on 
retained earnings:	
	
MSEK
2019
2018
Swap agreement1, 2
-147
-140
Redemption of previous year's swap agreement1
140
149
Share-based remuneration to employees3
6
7
Settlement of previous year's  
share-based remuneration to employees3
-7
-9
Repurchase of shares4
-21
–
Total impact on retained earnings
-29
7
	
	
	
	
1 Related to the whole Group’s short-term share-based incentive scheme.
2  The number of shares that have been hedged in this swap agreement amount to a total of 1 003 835 
(999 831) and have been allotted to the participants during the first quarter 2020, provided that 
they were still employed by the Group at that time.
3 Related to share-based remuneration for Securitas AB’s employees only.
4  Number of shares repurchased amounts to 125 000. Repurchased shares services as a hedge for 
the long-term incentive program.
  NOTE 57    Untaxed reserves	
	
	
	
MSEK
2019
2018
Accumulated depreciation and amortization  
in excess of plan
20
21
Tax allocation reserve
667
434
Total untaxed reserves
687
455
  NOTE 58    Long-term liabilities	
LONG-TERM LIABILITIES FALL DUE FOR PAYMENT AS FOLLOWS
MSEK
2019
2018
Maturity < 5 years
14 106
12 879
Maturity > 5 years
3 379
3 190
Total long-term liabilities
17 485
16 069
  NOTE 59    Accrued expenses and prepaid income
	
	
	
MSEK
2019
2018
Employee-related items
28
43
Accrued interest expenses
220
210
Other accrued expenses
35
31
Total accrued expenses and prepaid income
283
284
  NOTE 60    Pledged assets
	
	
	
MSEK
2019
2018
Pension balances, defined contribution plans
124
128
Total pledged assets
124
128
  NOTE 61    Contingent liabilities
	
	
	
MSEK
2019
2018
Guarantees
–
1
Guarantees related to discontinued operations
16
15
Total contingent liabilities1
16
16
	
	
	
1 Guarantees on behalf of subsidiaries are disclosed in note 44. There are no guarantees on behalf of 
associated companies.

138
Securitas Annual and Sustainability Report 2019
The Board of Directors and the President declare that the consolidated 
financial statements have been prepared in accordance with IFRS as 
adopted by the EU and give a true and fair view of the Group’s financial 
position and results of operations. The financial statements of the Parent 
Company have been prepared in accordance with generally accepted 
accounting principles in Sweden and give a true and fair view of the Parent 
Company’s financial position and results of operations.
The statutory administration report of the Group and the Parent Com-
pany provides a fair review of the development of the Group’s and the Par-
ent Company’s operations, financial position and results of operations and 
describes material risks and uncertainties facing the Parent Company and 
the companies included in the Group.
The Board of Directors and the President also submit Securitas AB’s 
Sustainability Report for 2019. The sustainability report describes 
the Group’s work with regards to economic, environmental and social 
aspects. The report is prepared according to the Sustainability Reporting 
Standards, issued by Global Reporting Initiative (GRI). 
The statements of income and balance sheets of the Parent Company 
and the Group are subject to adoption by the Annual General Meeting on 
May 7, 2020.
Stockholm, March 18, 2020 
Marie Ehrling
Chairman
	
Carl Douglas	
Ingrid Bonde
	
Vice Chairman	
Director
	
John Brandon	
Anders Böös	
Fredrik Cappelen
	
Director	
Director	
Director
	
Sofia Schörling Högberg	
Dick Seger
	
Director	
Director
	
Susanne Bergman Israelsson	
Åse Hjelm	
Jan Prang
	
Director	
Director	
Director
	
Employee Representative	
Employee Representative	
Employee Representative
Magnus Ahlqvist
 President and Chief Executive Officer
Our report has been submitted on March 18, 2020
PricewaterhouseCoopers AB
	
Patrik Adolfson	
Madeleine Endre
	
Authorized Public Accountant	
Authorized Public Accountant
	
Auditor in charge	
SIGNATURES OF THE BOARD OF DIRECTORS

139
Securitas Annual and Sustainability Report 2019
AUDITOR’S REPORT
REPORT ON THE ANNUAL ACCOUNTS AND  
CONSOLIDATED ACCOUNTS
Opinions
We have audited the annual accounts and consolidated accounts of 
Securitas AB (publ) for the year 2019. The annual accounts and con-
solidated accounts of the company are included on pages 57-143 in this 
document.
In our opinion, the annual accounts have been prepared in accordance 
with the Annual Accounts Act and present fairly, in all material respects, 
the financial position of parent company as of 31 December 2019 and 
its financial performance and cash flow for the year then ended in accor-
dance with the Annual Accounts Act. The consolidated accounts have 
been prepared in accordance with the Annual Accounts Act and present 
fairly, in all material respects, the financial position of the group as of 31 
December 2019 and their financial performance and cash flow for the 
year then ended in accordance with International Financial Reporting 
Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. 
The statutory administration report is consistent with the other parts of 
the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders 
adopt the income statement and balance sheet for the parent company 
and the group.
Our opinions in this report on the annual accounts and consolidated 
accounts are consistent with the content of the additional report that has 
been submitted to the parent company’s audit committee in accordance 
with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Standards on 
Auditing (ISA) and generally accepted auditing standards in Sweden. Our 
responsibilities under those standards are further described in the Auditor’s 
Responsibilities section. We are independent of the parent company and the 
group in accordance with professional ethics for accountants in Sweden and 
have otherwise fulfilled our ethical responsibilities in accordance with these 
requirements. This includes that, based on the best of our knowledge and 
belief, no prohibited services referred to in the Audit Regulation (537/2014) 
Article 5.1 have been provided to the audited company or, where applicable, 
its parent company or its controlled companies within the EU.
We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinions.
Our audit approach
Audit scope
We designed our audit by determining materiality and assessing the risks 
of material misstatement in the consolidated financial statements. In par-
ticular, we considered where management made subjective judgements; 
for example, in respect of significant accounting estimates that involved 
making assumptions and considering future events that are inherently 
uncertain. As in all of our audits, we also addressed the risk of manage-
ment override of internal controls, including among other matters consid-
eration of whether there was evidence of bias that represented a risk of 
material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to 
enable us to provide an opinion on the consolidated financial statements 
as a whole, taking into account the structure of the Group, the accounting 
processes and controls, and the industry in which the group operates.
Securitas’ business consists of performing various protective ser-
vices. Its customers differ in size and operate in diverse segments and 
(This is a translation of the Swedish original.  
For any interpretation the Swedish version prevail)
businesses. The Group has arisen through acquisitions and contracts with 
customers. Operations are conducted in some 56 countries. The busi-
ness is labor intensive, and the number of employees amounts to 370 000 
people.
In summary, our audit can be described as follows
•	In the Group audit, we focused on the operations of the Parent Company 
and the 12 most significant reporting units. These units account for 
approximately 79 percent of net income, 92 percent of operating profit 
and 67 percent of the Group’s operating assets. For the ten largest enti-
ties and the Parent Company, our audit activities encompassed a limited 
review of the half-yearly report as of June 30, an assessment of key 
controls related to financial reporting according to Securitas’ framework, 
early warning of the closing on September 30 prior to the year-end clos-
ing, and an audit of the year-end closing for the Group’s consolidated 
financial closing. For the other entities, our audit focused on internal 
control over financial reporting and the year-end closing. 
•	During the year, the auditor in charge, the co-signer and members of the 
audit team visited some 15 operations in 14 countries in order to gain a 
further understanding of the operations in these countries, perform an 
overall review of the financial reporting based on the Group’s accounting 
principles and evaluate compliance with Securitas’ framework for inter-
nal control. Some of these countries are included in the audit procedures 
described above and are also subject to a statutory audit. The countries 
visited account for approximately 21 percent of the Group’s net income. 
For other reporting units, analytical audit procedures are performed as 
a part of the audit of the consolidation. In addition to this, statutory audit 
procedures are performed in some 30 countries or entities, correspond-
ing to 18 percent of net income, 21 percent of operating profit and 19 per-
cent of the Group’s assets. The statutory audit has in most cases not been 
completed prior to signing the audit opinion for the group. The outcome 
of the statutory audits is reported separately to Securitas in connection 
with the review of half-yearly report. As this is not deemed to be material, 
is not used as support in the audit of the financial closing for the group. 
The outcome is used in the planning of the audit in order to follow up on 
any significant matters noted for any reporting unit regarding financial 
reporting or internal control.
Materiality
The scope of our audit was influenced by our application of materiality. 
An audit is designed to obtain reasonable assurance whether the financial 
statements are free from material misstatement. Misstatements may arise 
due to fraud or error. They are considered material if individually or in aggre-
gate, they could reasonably be expected to influence the economic deci-
sions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantita-
tive thresholds for materiality, including the overall group materiality for the 
consolidated financial statements as a whole. These, together with qualita-
tive considerations, helped us to determine the scope of our audit and the 
nature, timing and extent of our audit procedures and to evaluate the effect 
of misstatements, both individually and in aggregate on the financial state-
ments as a whole.
Key audit matters
Key audit matters of the audit are those matters that, in our professional 
judgment, were of most significance in our audit of the annual accounts 
and consolidated accounts of the current period. These matters were 
addressed in the context of our audit of, and in forming our opinion 
thereon, the annual accounts and consolidated accounts as a whole, but 
we do not provide a separate opinion on these matters.
Auditor’s report
To the general meeting of the shareholders of Securitas AB (publ), corporate identity number 556302-7241

140
Securitas Annual and Sustainability Report 2019
AUDITOR’S REPORT
Key audit matter
Audit of impairment testing of goodwill and other 
acquisition related intangible assets 
We refer to Note 4 Critical estimates and judgments, Note 16 Acquisitions 
and divestitures of subsidiaries and Note 17 Goodwill and impairment 
testing. In Note 17, information regarding the sensitivity analysis per-
formed with regards to which adjustment of assumptions made would 
trigger an impairment of goodwill. 
Goodwill and other acquisition related intangible assets, including cus-
tomer relations, amount to MSEK 22 157, and are as such a significant 
portion of Securitas’ consolidated balance sheet per December 31, 2019 
corresponding to some 36% of the total assets. The balance sheet item 
is subject to management’s assessments and assumptions, and with 
regards to the significance and complexity in the assessment of the value 
of the balance sheet item, also considered as a key audit matter in the 
audit.
Securitas annually performs a test to assess the value of goodwill and 
if there is any need for impairment if the book value of the assets exceeds 
the calculated fair value according to the test.
Securitas has an established process to test the valuation, based on 
the identified cash generating units (CGU), as described in note 17. For 
2019, there was 4 identified cash generating units. In 2019, Securitas has 
tested goodwill on a segment level instead of country level. The change in 
method is due to that Securitas applies IFRS 16 from a segment level. 
Securitas process implies that they prepare the impairment test based 
on business plans, financial plans and prognosis for the five immediate 
years. The cash flows from the years beyond the five immediate years are 
extrapolated based on the business plan. The process therefore contains 
assumptions that have a significant impact on the impairment test. This 
includes assumptions on sales growth, margin development and discount 
rate (WACC). These parameters are as such affected by unexpected 
future market or economic conditions, particularly those relating to the 
cash flow forecast and the applied discount rate.
The value according to the test correspond to the value of discounted 
cash flow for identified cash generating units. Even if a unit passes 
the impairment test, a future negative development compared to the 
assumptions and assessments that constituted the basis for the test, can 
imply that there is a need for an impairment write-down. The risk for an 
impairment is larger for entities that currently perform worse in compari-
son with the approved business plan.
Other acquisition related intangible assets are subject to depreciations 
according to plan. For these assets, an impairment test is performed if 
it can be assumed that the value of the assets has reduced so that an 
impairment may be necessary.
Securitas conclusion, based on the best assessment and the informa-
tion available at the time of preparing the annual impairment test, is that 
there is no need for impairment related to the assets mentioned above 
per 31 December 2019.
How our audit addressed the Key audit matter
When testing for impairment of goodwill and other acquisition-related 
intangible assets, in order to ensure primarily the valuation and accuracy, 
we have performed audit procedures including:
•	Evaluation of the assumptions as disclosed in note 17 as well as that 
the model used are in accordance with IFRS, we used PwC valuation 
experts to test and evaluate the models and methodology used includ-
ing the new level on which impairment testing is performed, as well as 
the significant assumptions. 
•	On a sample basis we have tried, verified, evaluated and challenged the 
data used in the calculation versus the Company’s long-term plans and, 
where possible, external information. We have focused on assessed 
growth rates, margin developments and discount rate applied per cash 
generating unit. We also followed-up the accuracy and inherent quality 
of the Company’s process to prepare business plans and financial plans 
based on the historic outcome.
•	Control of the sensitivity in the valuation for negative changes to key 
assumptions, that either individually or collectively could imply an 
impairment of goodwill.
•	Assessment of that the disclosures provided in the financial statements 
are correct based on the impairment test performed, particularly for 
information on the sensitivity in the valuations. 
•	Comparison of the disclosures in the annual report to the requirement 
of IAS 36 and found them to be consistent in all material aspects.
Based on our audit, it is our conclusion that Securitas’ assumptions are 
such that they are within an acceptable interval. Furthermore, the infor-
mation included in note 17 comply with the requirement for disclosures 
regarding assumptions and risks, for which a fair change in assumptions 
imply, or can imply, a need for impairment.

141
Securitas Annual and Sustainability Report 2019
AUDITOR’S REPORT
Key audit matter
Routines and processes including accounting of employee-
related expenses and pension and medical plans
We refer to note 4 Critical estimates and judgments, note 9 Remuneration 
to the Board of Directors and senior management, note 12 Personnel, 
note 32 Provisions for pensions and similar commitments as well as note 
33 Other long-term provisions, note 35 Other current liabilities and note 
36 Short-term provisions.
Securitas has 370 000 employees in its subsidiaries. The Group’s 
employee-related expenses mainly regard salaries and payroll overhead, 
including social charges and employers’ contributions as well as other 
short-term remuneration, including holiday pay and variable compensa-
tion. Employee-related expenses amount to approximately BSEK 86, cor-
responding to 81 percent of operating costs. This is thus the most signifi-
cant cost item in Securitas’ consolidated income statement. The related 
costs consist of both salaries and other remuneration, including variable 
compensation and directly related taxes and social contributions. 
In addition to this, Securitas is responsible for, or its employees partici-
pate in, a number of pension plans and plans implying medical benefits to 
employees. For these plans, Securitas has an obligation, which is recog-
nised as liability.
The risk refers to the completeness of these items, meaning that they 
are correctly calculated, properly cut off and valued. There is also an 
inherent complexity in the management of payroll when various groups 
of empolyees are under different employment contracts and collective 
agreements, which in itself gives rise to differences in how salaries, other 
remuneration and benefits should be calculated, and which actuarial 
assumptions are to be used regarding the plans. Securitas’ internal control 
framework includes specific controls on the management of payroll and 
personnel costs to ensure that proper salaries and remuneration and 
attributable taxes and charges are paid.
How our audit addressed the Key audit matter
In order to be able to pay salaries to close to 370 000 employees on a 
monthly basis, or in some cases more frequently, there must be well-func-
tioning routines and processes in place in order to calculate and control 
the salaries and remuneration to be paid.
Our audit is therefore based both on an evaluation of the internal control 
environment and on other analytical procedures, including system-based 
analysis of certain balance sheet and income statement items for selected 
subsidiaries, and detailed testing. These subsidiaries correspond to some 
62 percent of the employee-related costs, on a full year basis, and have 
approximately 157 000 employees.
The basis for the evaluation of internal control has been Securitas’ internal 
control framework for financial reporting. The testing of controls and 
amounts has been performed on a sample basis. Our audit procedures 
have, inter alia, included:
•	Reconciling significant accruals and/or provisions regarding, for 
example, holiday pay, accrued salaries, taxes and social charges with 
system-generated support and calculations and estimates made by 
management. 
•	Auditing of employee-related costs, including plans, using analytical 
procedures with regard to changes in costs in the income statement, 
accruals and provisions compared with our knowledge and understand-
ing and use of systems-based data analysis. 
•	With regards to pension and medical plans, we have audited significant 
supporting assumptions, assessed historical outcome and assessed the 
reasonability of management’s estimates. Wherever possible, we also 
verified this information with external support, including reports from 
independent and external actuaries. Overall the provisions are within 
the acceptable interval. 
Based on our audit, no significant observations have been noted which 
have resulted in reporting to the audit committee. Our overall conclusion 
is that there are, in all material respects, proper processes in place to man-
age and account for payroll and employee-related expenses.
Key audit matter
Valuation of provisions related to disputes, and 
disclosures on contingent liabilities 
We refer to note 4 Critical estimates and judgments and note 38  
Contingent liabilities.
Subsidiaries within the Group are involved in a number of legal proceed-
ings and related matters. These legal disputes include litigations in vari-
ous countries, for example, Estrela Azul (Brazil), Mutua (Spain) and the 
investigation described on page 61 related to improper supplier- and 
other business relations in Argentina. The key assumption is manage-
ment’s assessment of the future outcome of the ongoing proceedings 
and exposures, which directly affects the valuation of these matters and 
the disclosures provided in the financial reports. 
The company consults external legal advisors regarding significant 
queries and issues relating to these matters. The future outcome of the 
matters, and the accounting effects thereof, are based on assessments 
and complex legal matters which may take time to finally solve. The risk 
primarily regards the valuation of the outcome of these cases. As a part of 
our audit, we have considered the ongoing matters and disputes given the 
inherent subjectivity and uncertainty regarding the final outcome. Secu-
ritas has established routines whereby the Group’s Chief Legal Officer 
reports each quarter on the development of and significant events related 
to these matters to the CEO and audit committee. This report is also sent 
to the Board of Directors.
How our audit addressed the Key audit matter
In our audit, we examined the accuracy and valuation of the aforemen-
tioned matters. Securitas has a documented assessment of the outcome 
of the ongoing cases and exposures, and monitors these on a continuous 
basis, assisted by both in-house legal counsel and external lawyers. A fol-
low-up is conducted at both the local and Group level. We have discussed 
these assumptions with the company’s in-house legal counsel, and with 
Group legal for some of the more significant cases. 
We have evaluated the assessments and estimates made by man-
agement with regard to the existing disputes and exposures. This was 
performed based on documentation of the individual matters, conducted 
investigations, the historical outcome of similar cases and statements 
from external legal advisors regarding disputes, contingent liabilities and 
other exposures of which they are aware, or for which they are supporting 
or representing Securitas. 
As outlined in the financial statements, the outcome of such matters 
are dependent on the future outcome of continuing legal and regulatory 
procedures. As such, calculations of provisions are subject to inherent 
uncertainty. We have not noted any inconsistencies in the documentation 
that we have received and examined, or that the disclosures provided 
did not correspond to the requirements in IAS 37 Provisions, Contingent 
Liabilities and Contingent Assets.

142
Securitas Annual and Sustainability Report 2019
AUDITOR’S REPORT
How our audit addressed the Key audit matter
In our audit, we checked the accuracy and valuation of these matters. 
Securitas has a documented assessment of the outcome of the ongoing 
matters and exposures and monitors these on an ongoing basis. The audit 
procedures performed include, for example:
•	Discussion of these matters with the company’s in-house tax counsel 
for some of the more significant matters. 
•	Examination of Securitas’ tax calculations and application of tax regula-
tions.
•	Evaluation of the assessments and estimates made by management 
with regard to the existing tax disputes and ongoing tax audits. This 
was based on the historical outcome of similar cases and statements 
from external legal advisors regarding disputes, contingent liabilities 
and other exposures of which they are aware or for which they are sup-
porting or representing Securitas. 
•	Review of the written communication between the company and the 
tax authorities with regards to ongoing tax audits. For these cases, we 
also consulted PwC tax experts, who participated in our audit.
•	With the assistance of inter alia PwC’s Argentinian tax experts, we have 
audited the support and estimates that support the correction of tax in 
Argentina that is described on page 61.
As disclosed in the financial statements, the outcome of these matters 
are dependent on the future outcome of legal procedures, and associated 
with an inherent uncertainty. Thus, the calculations of the provisions are 
subject to inherent uncertainty. We have not noted any inconsistencies 
in the documentation that we have received and examined, or that the 
disclosures provided did not correspond to the requirements in IAS 37 
Provisions, Contingent Liabilities and Contingent Assets.
Key audit matter
Valuation of provisions for tax-related matters 
We refer to note 4 Critical estimates and judgments, and note 15 Taxes.
Companies within the Group are involved in tax-related matters and tax 
audits. This includes, inter alia, the ongoing tax audit in Spain. The key 
assumption is management’s assessment of the future outcome of the 
ongoing proceedings and exposures, which directly affects the valuation 
of these matters, and the disclosures provided in the financial reports. The 
risk primarily regards the valuation of the outcome of these cases. As a 
part of our audit, we considered the tax cases, given the inherent subjec-
tivity and uncertainty related to the final outcome.
In addition to this, an investigation following information from a 
whistleblower has revealed that employees in Argentina have engaged 
in business activities in violation of the Securitas Values and Ethics Code. 
The investigation, that indicates various compliance issues, including 
conflicts of interest and irregular supplier and other business relationships 
have resulted in corrections of taxes in Argentina by MSEK 130. This is 
described on page 61 in this annual report.
The company consults external legal advisors and tax advisors for 
significant queries. The future outcome of the matters, and the account-
ing effects thereof, are based on assessments and complex legal matters 
which may take time to finally solve. The risk primarily regards the valua-
tion of the outcome of these cases. As a part of our audit, we have consid-
ered the ongoing matters and disputes given the inherent subjectivity and 
uncertainty regarding the fin al outcome.
Other Information than the annual accounts 
and consolidated accounts
This document also contains other information than the annual accounts 
and consolidated accounts and is found on pages 1-31 and 144-164. 
The Board of Directors and the Managing Director are responsible for this 
other information.
Our opinion on the annual accounts and consolidated accounts does 
not cover this other information and we do not express any form of assur-
ance conclusion regarding this other information.
In connection with our audit of the annual accounts and consolidated 
accounts, our responsibility is to read the information identified above 
and consider whether the information is materially inconsistent with the 
annual accounts and consolidated accounts. In this procedure we also 
take into account our knowledge otherwise obtained in the audit and 
assess whether the information otherwise appears to be materially mis-
stated.
If we, based on the work performed concerning this information, con-
clude that there is a material misstatement of this other information, we 
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Director's 
and the Managing Director
The Board of Directors and the Managing Director are responsible for the 
preparation of the annual accounts and consolidated accounts and that 
they give a fair presentation in accordance with the Annual Accounts Act 
and, concerning the consolidated accounts, in accordance with IFRS as 
adopted by the EU. The Board of Directors and the Managing Director are 
also responsible for such internal control as they determine is necessary 
to enable the preparation of annual accounts and consolidated accounts 
that are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts, The 
Board of Directors and the Managing Director are responsible for the 
assessment of the company's and the group's ability to continue as a 
going concern. They disclose, as applicable, matters related to going con-
cern and using the going concern basis of accounting. The going concern 
basis of accounting is however not applied if the Board of Directors and 
the Managing Director intend to liquidate the company, to cease opera-
tions, or has no realistic alternative but to do so.
The Audit Committee shall, without prejudice to the Board of Direc-
tor’s responsibilities and tasks in general, among other things oversee the 
company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the 
annual accounts and consolidated accounts as a whole are free from 
material misstatement, whether due to fraud or error, and to issue an audi-
tor’s report that includes our opinions. Reasonable assurance is a high 
level of assurance, but is not a guarantee that an audit conducted in accor-
dance with ISAs and generally accepted auditing standards in Sweden 
will always detect a material misstatement when it exists. Misstatements 
can arise from fraud or error and are considered material if, individually 
or in the aggregate, they could reasonably be expected to influence the 
economic decisions of users taken on the basis of these annual accounts 
and consolidated accounts.
A further description of our responsibility for the audit of the annual 
accounts and consolidated accounts is available on Revisorsinspe-
ktionen’s website: www.revisorsinspektionen.se/revisornsansvar. This 
description is part of the auditor´s report.

143
Securitas Annual and Sustainability Report 2019
AUDITOR’S REPORT
REPORT ON OTHER LEGAL AND REGULATORY  
REQUIREMENTS
Opinions
In addition to our audit of the annual accounts and consolidated accounts, 
we have also audited the administration of the Board of Director’s and the 
Managing Director of Securitas AB (publ) for the year 2019 and the pro-
posed appropriations of the company’s profit or loss.
We recommend to the general meeting of shareholders that the profit 
be appropriated in accordance with the proposal in the statutory admin-
istration report and that the members of the Board of Director’s and the 
Managing Director be discharged from liability for the financial year.
Basis for Opinions
We conducted the audit in accordance with generally accepted auditing 
standards in Sweden. Our responsibilities under those standards are 
further described in the Auditor’s Responsibilities section. We are inde-
pendent of the parent company and the group in accordance with profes-
sional ethics for accountants in Sweden and have otherwise fulfilled our 
ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinions.
Responsibilities of the Board of Director’s 
and the Managing Director
The Board of Directors is responsible for the proposal for appropriations 
of the company’s profit or loss. At the proposal of a dividend, this includes 
an assessment of whether the dividend is justifiable considering the 
requirements which the company’s and the group’s type of operations, 
size and risks place on the size of the parent company’s and the group’ 
equity, consolidation requirements, liquidity and position in general.
The Board of Directors is responsible for the company’s organization 
and the administration of the company’s affairs. This includes among 
other things continuous assessment of the company’s and the group’s 
financial situation and ensuring that the company´s organization is 
designed so that the accounting, management of assets and the compa-
ny’s financial affairs otherwise are controlled in a reassuring manner. The 
Managing Director shall manage the ongoing administration according to 
the Board of Directors’ guidelines and instructions and among other mat-
ters take measures that are necessary to fulfill the company’s accounting 
in accordance with law and handle the management of assets in a reassur-
ing manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and thereby our 
opinion about discharge from liability, is to obtain audit evidence to assess 
with a reasonable degree of assurance whether any member of the Board 
of Directors or the Managing Director in any material respect:
•	has undertaken any action or been guilty of any omission which can 
give rise to liability to the company, or
•	in any other way has acted in contravention of the Companies Act, the 
Annual Accounts Act or the Articles of Association.
Our objective concerning the audit of the proposed appropriations 
of the company’s profit or loss, and thereby our opinion about this, is to 
assess with reasonable degree of assurance whether the proposal is in 
accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a guaran-
tee that an audit conducted in accordance with generally accepted audit-
ing standards in Sweden will always detect actions or omissions that can 
give rise to liability to the company, or that the proposed appropriations 
of the company’s profit or loss are not in accordance with the Companies 
Act.
A further description of our responsibility for the audit of the administra-
tion is available on Revisorsinspektionen’s website: www.revisorsinspe-
ktionen.se/revisornsansvar. This description is part of the auditor’s report.
PricewaterhouseCoopers AB was appointed the auditor of Securitas 
ABs (publ) by the annual general meeting on May 6, 2019 and has been 
the auditor of the company since 1987.
Stockholm, March 18, 2020
PricewaterhouseCoopers AB
	
Patrik Adolfson	
Madeleine Endre
	
Authorised public accountant	
Authorised public accountant
	
Auditor in charge

Securitas Annual and Sustainability Report 2019
144
Sustainability notes
 About this report
This report has been prepared according to the Global Reporting Initiative 
(GRI) sustainability reporting standards, with the Core application level. 
The report also highlights how our priorities reflect the Ten Principles of 
the UN Global Compact (UNGC) with respect to labor and human rights, 
the environment and anti-corruption, and therefore acts as our UNGC 
Communication on Progress. The 2018 sustainability report was pub-
lished on April 12, 2019. We aim to publish a report on an annual basis. 
Unless otherwise noted, the report pertains to the 2019 calendar year and 
encompasses all companies within the Securitas Group. Wherever pos-
sible, the baseline for the report data is 2018. Information in compliance 
with the Swedish legal requirements on sustainability reporting is found 
on pages 10, 11 ,13 and 144-157. For more information, contact: Cecilia 
Alenius Group Sustainability Officer cecilia.alenius@securitas.com
Stakeholder dialogs 
Securitas encourages a continuous and proactive dialog with our stake-
holders in order to better understand their expectations and to identify 
areas that we need to develop further. We meet many of our stakeholders 
regularly during the course of our daily work, and our aim is to be a respon-
sible, honest and transparent company. Listed below are Securitas’ key 
stakeholders and a description of how we engage with them. Our main 
stakeholders are identified based on the impact they might have on our 
business as well as on their interests and potential influence on Securitas.
STAKEHOLDER GROUP
METHOD OF DIALOG
IMPORTANT TOPICS
HOW WE RESPOND
Clients
Securitas consistently tries to 
find new ways to strengthen our 
client partnerships by gaining 
an in-depth understanding of 
our clients’ needs and industry-
specific requirements, and 
establishing a shared view on 
sustainable business conduct.
We meet our clients on a daily 
basis and constantly engage 
in dialog with them. We have 
also implemented a number 
of initiatives to establish best 
practices and develop more easy-
to-use digital interfaces with our 
clients. 
•	Securitas’ in-depth knowledge of 
the client’s industry and security 
needs
•	The benefits of security solutions 
consisting of different combina-
tions of cost-efficient protective  
services
•	Global consistency in service 
delivery and the capability to 
scale from local to global solu-
tions
Securitas communicates the 
benefits of its protective services, 
including electronic security, in a 
clear, transparent and sustainable 
way. With our deep understanding 
of each client’s business, values 
and goals, we can develop security 
solutions and services tailored to 
their individual needs and meet the 
requirements they impose on us as 
a sustainable supplier.
Employees and employee 
representatives  
Securitas’ most valuable assets 
are our 370 000 skilled and 
engaged employees, distributed 
over 56 countries around the 
world. Our employees represent 
the company on a daily basis 
and our company’s reputation 
is determined largely by their 
actions.
  
The most important forum is the 
ongoing daily dialog between 
our employees and Securitas 
managers at different levels, 
facilitated by collaboration tools, 
such as Office 365 and Workplace 
by Facebook. Securitas also 
conducts employee surveys. 
Securitas engages in a proactive 
and open dialogue with local 
unions, UNI and the EWC.
  •	Values and ethics 
•	Fair wages and terms of employ-
ment
•	Health and safety
•	Recruitment and onboarding 
•	Training and skills development 
•	Talent management 
•	Data privacy
  
In order to attract, retain and 
develop our employees, Securitas 
strives to be a reliable employer. 
Solid human resources processes 
are a vital part of this. We have also 
formulated a purpose – We help 
make your world a safer place – to 
articulate what we do and to further 
guide our employees in their daily 
work. Securitas values proactive 
relationships and a constructive 
dialog with local unions as well as 
global union associations.
Shareholders
An active dialog with our 
shareholders and investors 
ensures that our business is 
developed from a long-term 
perspective.
We publish interim reports 
and other continuous financial 
information, organize Investor 
Days and conduct other investor 
and analyst meetings, roadshows 
and conferences. At the Annual 
General Meeting, all shareholders 
are able to exercise their influence.
•	How Securitas is leading the 
transformation of the security 
industry
•	How to manage the challenges 
related to the transformation to 
intelligent data-driven security 
solutions
•	Maintaining long-term, stable, 
profitable and sustainable opera-
tions
Securitas provides data and figures 
that support our strategy as well 
as information about how the 
transformation of the services we 
offer affects our financial results. 
We illustrate the benefits of our 
position as an industry leader with 
a strong competitive advantage.
SUSTAINABILITY NOTES

145
Securitas Annual and Sustainability Report 2019
STAKEHOLDER GROUP
METHOD OF DIALOG 
IMPORTANT TOPICS
HOW WE RESPOND
Society
Securitas plays an important role 
in society by providing security 
and safety. This is a prerequisite 
for a functioning community, 
and we actively participate in 
the local communities where we 
operate.
As a large employer and a trusted 
partner to our clients, we engage 
in a constant dialog with different 
parts of the communities where 
we operate.
•	Contribution to increased secu-
rity and safety in local communi-
ties, through cooperation 
•	Creating work opportunities
•	Equal conditions for men and 
women, ethnic and religious 
minorities, individuals with dis-
abilities, etc.
Securitas provides security in 
a responsible way, protecting 
workplaces, public areas and 
properties. We also aim to be 
engaged in the local communities, 
for example, by actively 
participating in various local 
projects.
Suppliers
Securitas has many suppliers 
in its operations. Ensuring 
that our suppliers follow our 
requirements concerning values 
and ethics, among other things, 
is essential to Securitas.
The main forum is the ongoing 
dialog between our suppliers and 
Securitas representatives on all 
levels. 
•	Quality of procured goods and 
services
•	Requirement to comply with 
Securitas’ Values and Ethics 
Code
•	Compliance with anti-corruption 
policy 
•	Contract commitment and fulfill-
ment of deliveries
We provide our suppliers with 
information regarding Securitas’ 
Values and Ethics Code and include 
compliance with the Code in our 
supplier contracts. We also have 
specific guidelines and standards 
for suppliers and conduct supplier 
risk assessments when required.
Industry organizations
As one of the largest companies 
in the security industry, Securitas 
is a driving force in raising 
the standards and levels of 
professionalism in the industry.
Securitas is a member of 
various local and global 
industry organizations, such 
as the International Security 
Ligue, the American Society of 
Industrial Security (ASIS) and the 
National Association of Security 
Companies in the US. Meetings 
are conducted regularly.
•	Status of security officers and the 
profession
•	Remuneration issues
•	Employee skills development
•	Regulatory issues
•	Terms for values and ethics in the 
international security industry
We assume an active role in 
industry organizations, especially 
in markets where we have a leading 
position. We work to increase 
industry regulation in order to 
improve the status of the security 
officer profession, raise industry 
wage levels and intensify skills 
development efforts.
Policy makers  
and authorities
Securitas cooperates closely 
with authorities in all countries 
where we operate – both to 
improve our business conditions 
and to explore new business 
opportunities.
  
Securitas maintains a continuous 
dialog with authorities and 
policymakers at the local, national 
and international level.
  •	Laws and regulations concerning 
the security industry
•	Possibilities to expand assign-
ments to ensure a safer society
  
Securitas works to improve 
the business conditions in the 
security industry. We also explore 
opportunities to take over non-core 
police tasks.
Materiality analysis
Material issues are topics that have a substantial influence on the stake-
holders’ perception of our performance and impact our ability to create 
and sustain value. They indicate Securitas’ most significant economic, 
environmental and social impacts. Materiality determines when an issue 
becomes important enough to be included in the business strategy and 
the way we manage and report on non-financial issues. 
Our process for identifying materiality provides a future focus for our 
sustainability work and helps us analyze our impact across the value 
chain. It provides us with deeper insights into stakeholders’ expectations 
of Securitas, how we should develop our sustainability agenda and how 
our stakeholders perceive the outcome of our progress and strategy. 
In addition to the information we obtain through regular communica-
tion with our stakeholders, we conducted a stakeholder dialog in 2019 to 
collect input regarding our sustainability work and performance. This dia-
log was carried out in the form of a web-based survey sent to stakeholder 
representatives.
The survey included questions about what sustainability areas Securi-
tas should focus on, how well the stakeholders think we perform in these 
areas and finally, their view on how sustainable we are as a company. 
The results indicated areas that have also previously been considered 
prioritized:
•	Decent working conditions
•	Health and safety
•	Compliant business practices
•	Capacity building
•	Diversity and equal opportunity
The areas where the stakeholders think that Securitas performs best 
included complaint business practices/anti-corruption, human rights, 
decent working conditions, and privacy and confidentiality. A clear major-
ity (76 percent) of the stakeholders also confirmed that Securitas under-
stands their priorities and expectations.
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Securitas Annual and Sustainability Report 2019
146
Based on the materiality analysis, we have decided to focus on the 
areas listed below in our sustainability work.
OUR FOCUS AREAS 
Material aspect for Securitas
GRI Topic
Anti-corruption
205 Anti-corruption
Occupational health and safety
403 Occupational health and safety
Talent training and retention
401 Employment
Labor practices, non-discrimination 
and human rights
404 Training and education
405 Diversity and equal opportunity
Client relations 
418 Client privacy
Sustainability governance 
The Board of Directors decides on Securitas’ sustainability strategy and 
policies together with the President and CEO of Securitas AB, who has 
ultimate responsibility for the realization of the Group’s sustainability 
work. The Group has an Ethics and Sustainability Board, which estab-
lishes the principles for the Group’s sustainability work and follows up 
cases of alleged non-compliance with Securitas’ Values and Ethics Code. 
The board meets regularly and comprises the Group’s President and CEO, 
SVP General Counsel, SVP Group Brand and Communications and Group 
Sustainability officer. Our system for managing our work related to envi-
ronmental, social and governance areas comprises six key components: 
1.  Securitas’ Values and Ethics Code: One of the company’s most 
important policies, Securitas’ Values and Ethics Code stipulates the 
basic principles that Securitas expects its employees and business 
partners to follow at all times. 
2.  Employee training: All Securitas employees undergo training in 
Securitas’ Values and Ethics Code. An in-depth e-learning program for 
managers and office personnel is available in more than 40 languages. 
Local-language e-learning and classroom training sessions are held for 
the company’s security officers. Relevant employees also receive train-
ing in other core policies, such as the anti-corruption policy. 
3.  System for reporting non-compliance: The Securitas Integrity 
Line (known as Securitas Hotline in the US and Canada, and Linea de 
Alerta in Mexico) is a Group system used for reporting cases of non-
compliance with Securitas’ Values and Ethics Code. All employees and 
business partners are encouraged and expected to report any cases of 
non-compliance, with the assurance that the reporter will not be sub-
jected to any negative consequences. 
4.  Risk management: Non-compliance with Securitas’ Values and Ethics 
Code is considered a risk, and as such, it has been classified as one of 
seven priority risks in the Group’s enterprise risk management process. 
These risks are followed up on a regular basis. 
5.  Monitoring: To meet the demands of clients and other stakeholders 
with respect to increased transparency and communication, Securitas 
AB publishes a sustainability report that follows the Global Reporting 
Initiative (GRI) standards. 
6.  Group Sustainability Officer: The Group Sustainability Officer leads 
the Group’s ongoing sustainability work and, in addition to following 
the regular reporting line, also reports to the Board of Directors’ Audit 
Committee. Responsibilities include coordination of sustainability 
activities across the Group, which involves working closely together 
with other core functions. Other responsibilities include stakeholder 
engagement on sustainability issues, and supporting the Group’s 
countries of operation with respect to sustainability matters. 
Supply chain
We must ensure that our suppliers live up to our requirements, as set forth 
in Securitas’ supplier and sub-contractor policies, and that they adhere to 
Securitas’ Values and Ethics Code. A separate code of conduct for suppli-
ers will be implemented during 2020.
Suppliers of uniforms and electronic security equipment are among 
those defined as critical suppliers, meaning suppliers whose failure to per-
form in accordance with our specific requirements could severely impact 
Securitas’ performance or brand, locally or globally. 
Suppliers’ adherence to our anti-corruption policy is also a key area 
for monitoring performance. While selecting, assessing and monitoring 
critical suppliers, we also evaluate whether the supplier has established 
a selection procedure, and conducted risk assessments of its own critical 
suppliers. 
Memberships and engagements in organizations 
Securitas is a member in the following industry organizations: 
•	International Security Ligue 
•	Aviation Security Services Association International (ASSA-I) 
•	ASIS International 
•	National organizations for security companies in most countries where 
we operate, such as the National Association of Security Companies 
(US), Bundesverband der Sicherheitswirtschaft (Germany), Cámara 
Argentina de Empresas de Seguridad e Investigación (Argentina) and 
the Hong Kong Security Association (Hong Kong)
International commitments
•	UN Global Compact 
•	International Security Ligue’s Code of Conduct and Ethics 
Sustainability indexes 
•	FTSE4Good Index Series 
•	STOXX Global ESG Leaders 
Supplier rating systems and reporting 
•	EcoVadis (silver level and industry leader) 
•	Sedex 
•	CDP 
Management approach
Anti-corruption
Securitas has operations in 56 countries all over the world, and acting 
with integrity and ensuring we take an active stand against corruption are 
prioritized issues. Certain markets are more challenging than others in this 
regard for example, countries with a low score in Transparency Interna-
tional’s Corruption Perceptions Index, but this does not mean that we do 
not actively monitor lower-risk countries. 
Securitas’ Values and Ethics Code and the Securitas anti-corruption 
policy set out minimum requirements that ensure compliance with appli-
cable local and extraterritorial laws. The anti-corruption policy also sets 
out the principle of zero tolerance for any corrupt practices, with clear 
definitions, requirements for risk assessment, guidance regarding third 
party relationships, training and follow-up. Local entities are subsequently 
asked to create their own detailed policies for gifts and entertainment. 
Non-compliance with Securitas’ Values and Ethics Code and other key 
policies is considered an operational risk, and as such, is part of the Group’s 
enterprise risk management process (ERM). ERM is an integral component 
of Securitas’ operations, and risk awareness is part of the company culture. 
Risk assessments are conducted within the framework of the Securitas 
ERM process. Controls are performed on several levels within the organiza-
tion and are established based on the process concerned. 
Relevant managers and administrative staff must complete a detailed 
e-learning course on the anti-corruption policy. Approximately 90 percent 
of these employees have completed the course. 
Securitas encourages all employees to report incidents of non-compli-
ance with Securitas’ Values and Ethics Code or any irregularities that they 
encounter in their work. This can be done through various channels, for 
example, the Group’s Securitas Integrity Line reporting system, which is 
publicly available at www.securitasintegrity.com (Securitas Hotline in the 
US and Canada, securitashotline.com/securitashotline.ca; Linea de Alerta 
in Mexico; lineadealerta.com.mx) 
SUSTAINABILITY NOTES

147
Securitas Annual and Sustainability Report 2019
Occupational health and safety
Health and safety work is vital to our operations. Our security officers are 
trained not only to protect themselves, but also to help others while on 
assignment, for example, by performing first-aid and CPR, and fire safety. 
A thorough risk assessment helps us identify and scope safety hazards. 
The lessons we have learned from this approach have even become part 
of the services we offer our clients.
Securitas makes extensive efforts to ensure the health and safety of 
both our security officers and the individuals they must, from time to 
time, act against. If threatening situations occur, the security officers are 
instructed to avoid confrontation and await the arrival of the police. The 
vast majority of our security officers do not carry weapons. Those who 
do have undergone specialist training and licensing requirements and are 
usually deployed on special assignments, for example, in a critical infra-
structure facility such as an airport. 
Security officers receive appropriate training, instruction and equip-
ment for the assignment in question. We work actively with occupational 
health and safety issues in all countries. Our operations in 22 are OHSAS 
18001/ISO45001 certified and most countries have health and safety 
committees. We closely monitor the number of work-related injuries and 
work-related ill health. 
Breaches can be reported through various channels, for example, the 
Group’s Securitas Integrity Line reporting system.
Talent training and retention
Securitas’ clients are increasingly demanding a higher degree of security 
and more advanced security solutions. We build on the experience and 
expertise of our employees, and employ people with various competen-
cies, leveraging our competence to meet new challenges. As a result of 
expanding business areas within data-driven intelligent services, Secu-
ritas must employ people with new competencies that we have not had 
before and develop and empower our existing employees in new capaci-
ties. With our focus on innovation, we provide our employees with the 
tools they need to help our clients stay safe. Using technology efficiently 
requires both a wide set of skills and specialized capabilities. 
Securitas has its own training centers in most countries of operation 
in order to ensure that the employees have the necessary competence 
to provide clients with high-quality security services. By improving the 
knowledge and skills of employees, we contribute to their professional 
growth and to a better understanding of the security profession. Empow-
ering employees means a greater focus on training, skills and opportuni-
ties for professional development. We also encourage people to take on 
responsibility early in their careers. 
In 2019, the average number of training hours per employee was 26.7. 
We also conduct recurring employee surveys, the latest of which was 
carried out in 2018. In Security Services Europe, the survey covered all 
employees, while only managers and office personnel participated in 
Security Services North America. Our long-term ambition is to extend 
the survey to all employees in all major markets. The results of the survey 
show that a sense of empowerment is a critical factor for employees’ job 
satisfaction.
Labor practices, non-discrimination and human rights
Securitas has a large workforce of 370 000 skilled and engaged employ-
ees, and working conditions are therefore important. Decent labor prac-
tices, the right to organize, human rights and non-discrimination are all vital 
to Securitas, our employees and our clients, and to our ability to attract and 
retain people with the right skill sets and values to meet future demands. 
We work in many diverse markets around the world and in all of them 
we prioritize fair wages and working conditions. Securitas’ Values and 
Ethics Code ensures that the company maintains and promotes the high-
est ethical business standards, and we also use our influence as one of 
the largest players in the industry in discussions with clients, unions and 
industry associations.  
Securitas has entered into framework agreements with UNI Global 
Union, the Swedish Transport Workers’ Association, and the European 
Workers’ Council in our European division. These agreements underline 
our joint commitment to universal principles concerning business con-
duct, as outlined by the UN Global Compact and ILO’s core conventions. 
They have also been influential when it comes to determining our level 
of ambition. In countries where Securitas does not have collective bar-
gaining agreements or union representation, we encourage other ways 
of maintaining an open dialog with our employees, including workplace 
meetings, employee ombudsmen, call centers and channels for reporting 
concerns, such as the Securitas Integrity Line. 
As a leading player in the security market, it is important that we pay 
wages that meet or exceed industry levels. Securitas has sound pro-
cesses in place to ensure we live up to all legal standards and follow local 
and regional legislation and regulations regarding, for example, wages, 
working hours, overtime, social security charges and taxation.
Client relations
Developing our intelligent security services offering will create significant 
opportunities, but will also pose challenges and set high expectations to 
deliver these solutions responsibly. It is vital that we protect the data that 
we process on behalf of our clients. It is also essential that data is only 
shared and retained based on client approvals, in accordance with appli-
cable laws and in a way that protects the privacy rights of individuals. 
Many large corporations have strict requirements for the use of big 
data. It is important to be watchful and establish processes and practices 
to safeguard data privacy. At Securitas, we have policies, processes and 
training programs in place for managing these concerns, developed in 
accordance with the General Data Protection Regulations (GDPR) as well 
as local laws and regulations.    
At a minimum, we address the negative implications of these techno-
logical advances by complying with all relevant legislative requirements. 
In addition, our policies – including Securitas’ Values and Ethics Code 
and purchasing guidelines – provide us with support in addressing these 
issues. Our emphasis on risk assessment processes enables us to analyze 
risks efficiently, including the more recent implications of increased digiti-
zation in the industry and society as a whole.
Environment
The environment was not identified as a material topic in our materiality 
analysis, but as we are signatory of UN Global Compact, it is important for 
us to be transparent and work to combat climate change. We have there-
fore chosen to report our CO2 emissions anyway. The Securitas Group’s 
emissions policy states that we should strive to continually reduce our 
climate impact, focusing primarily on the energy and transport areas. 
The policy sets limits for CO2 emissions for new purchased or leased 
company vehicles, and Securitas AB participates in CDP, formerly known 
as the Carbon Disclosure Project. We strive to follow the Rio Declaration’s 
precautionary principle regarding threats of serious or irreversible envi-
ronmental damage. The Group’s operations do not require a permit under 
the Swedish Environmental Code.     
Child labor and forced labor
Securitas does not employ or accept any form of child labor or forced 
labor. In the countries where the Group operates, there are regulations 
regarding who can work as a security guard, including age limits. Licenses 
for security officers are not given to people under the age of 18. An 
employee’s age is also verified in as part of the recruitment processes. 
Securitas’ UK operations comply with the disclosure obligations under the 
Modern Slavery Act 2015. 
Securitas requires its suppliers to comply with Securitas’ Values and 
Ethics Code, which includes non-acceptance of child labor and forced 
labor. 
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Securitas Annual and Sustainability Report 2019
148
Sustainability risks 
At the highest level, the Board considers where future strategic opportu-
nities and risks lie, and helps shape the corporate strategy. Balanced and 
focused risk management is necessary for the fulfillment of Securitas’ 
strategies and the achievement of its corporate objectives. 
Enterprise risk management is an integral component of Securitas’ 
operations, and risk awareness is part of the company culture. Risk 
RISK AREA
DESCRIPTION
CONSEQUENCE
PREVENTIONS
Working conditions
Risk that labor practices, the right 
to organize, human rights and 
non-discrimination may not be 
respected.
Licenses to conduct security 
operations could be lost, which 
would lead to a loss of business, 
a negative financial impact and 
brand damage. It might also lead 
to difficulties in recruiting and 
retaining employees.
Securitas has policies and sound 
processes in place to ensure we live 
up to all legal standards and comply 
with local and regional legislation 
and regulations. We have a global 
framework agreement with UNI 
Global Union and the Swedish 
Transport Workers’ Association.
Occupational health  
and safety
Risk that employees may be 
injured or even die due to 
inadequate health and safety 
processes and procedures.
Poor health and safety procedures 
that put our employees at risk 
can lead to reputational and 
brand damage, a loss of business 
and difficulties in recruiting and 
retaining employees.
Employees are trained 
continuously to ensure that they 
can perform their tasks safely. 
Adequate equipment must also be 
provided.
Access to talent
Risk that we will not be able 
to attract and retain the right 
talent to remain a leader in the 
development of the security 
industry.
Not being able to fulfill our clients’ 
requirements could lead to a loss of 
business and market position.
We must continuously improve 
our recruitment and onboarding 
processes, talent management 
and training, and use modern tools 
for sharing knowledge and best 
practices.
Training
Risk that our employees may 
not have the right competence 
for their assignments or for 
developing new services and the 
business.
Not meeting client demands on 
us as a provider of high-quality 
professional security services 
could lead to lost client contracts 
and difficulties in recruiting and 
retaining employees.
Securitas has training centers 
in most countries and provides 
both basic and highly specialized 
training for employees at all levels, 
including skills that support the 
strategy of data-driven innovation 
and digitization.
Securitas’ Values and 
Ethics Code
Risk that employees or business 
partners might not comply with 
Securitas’ Values and Ethics Code 
and the company’s core values.
Licenses could be lost, which 
would lead to a loss of business, 
a negative financial impact and 
brand damage. It might also lead 
to difficulties in recruiting and 
retaining employees.
Securitas has policies and sound 
processes in place to ensure we live 
up to all legal standards and comply 
with local and regional legislation 
and regulations. We have a global 
framework agreement with UNI 
Global Union and the Swedish 
Transport Workers’ Association.
assessment is a dynamic process that aims to identify and analyze risks 
in relation to Securitas’ objectives. It serves as the basis for implementing 
mitigating actions after considering the controls in place (reduce, transfer/
share or accept the risk in question). Sustainability risks are handled in the 
same way. Our major sustainability risks are described below. 
For more information on the Group’s risk management process, see 
pages 45–51.
SUSTAINABILITY NOTES

149
Securitas Annual and Sustainability Report 2019
RISK AREA
DESCRIPTION
CONSEQUENCE
PREVENTIONS
Ethical business standards
Risk that employees or business 
partners may be involved in 
corruption, unfair competition, 
conflicts of interest and other non-
ethical business behavior.
In a worst-case scenario, this type 
of non-ethical business behavior 
could lead to a major negative 
financial impact, a loss of business 
and reputational damage.
Securitas has a zero-tolerance 
policy against all forms of bribery 
and corruption. Without exception, 
all employees and business 
partners must comply with local 
laws and regulations as well as 
Securitas’ Values and Ethics Code 
and other key policies.
Protecting data 
Risk that our data may not be 
properly protected.
Inadequate protection of data could 
lead to reputational and brand 
damage, a loss of business and 
fines.
Data protection and privacy are 
important and thus protected 
through strong security, 
organizational and technical 
measures. Securitas complies with 
all relevant legal requirements 
related to the protection of data 
and has policies, processes and 
training programs in place.
Client relations
Risk that we may not meet 
our clients’ sustainability 
requirements.
An inability to comply with our 
clients’ sustainability requirements 
could lead to a loss of business, a 
negative financial impact and brand 
damage.
We must have an in-depth 
understanding of our clients’ 
needs and industry-specific 
requirements, and a business 
that is sustainable in all areas. Our 
emphasis on employee safety and 
fair labor practices ensures that we 
deliver high-quality services.
Security practices
Risk that employees could act 
in a way that is contrary to local 
laws, authority regulations and 
Securitas’ policies and human 
rights conventions.
Acting in a way that contravenes 
the law, policies and conventions, 
and in a worst-case scenario 
contributing to human rights 
violations, could lead to 
reputational and brand damage, a 
loss of business and difficulties in 
recruiting and retaining employees.
Securitas has policies and sound 
processes in place to ensure that 
we live up to all legal standards. 
We conduct risk assessments of 
the countries we operate in and of 
our clients, when necessary. As a 
signatory of UN Global Compact, 
Securitas commits to its Ten 
Principles.
Environment
Risk that our operations could 
cause environmental damage.
Not working to reduce our climate 
impact could lead to brand damage, 
a loss of clients and difficulties in 
recruiting and retaining employees.
Securitas complies with or exceeds 
the environmental requirements 
in the countries where we operate, 
and we continuously work to 
reduce the consumption of 
resources, emissions and waste.
SUSTAINABILIT Y NOTES

Securitas Annual and Sustainability Report 2019
150
Key figures 
NUMBER OF EMPLOYEES PER BUSINESS SEGMENT 
2019
% of total
2018
% of total
Security Services North America
121 000
33
122 000
33
Security Services Europe
124 000
34
128  000
35
Security Services Ibero-America
64 000
17
63  000
17
Other
61 000
16
57  000
15
Total
370 000
370  000
SALARIES AND BENEFITS PER BUSINESS SEGMENT 
MSEK
2019
% of total
2018
% of total
Security Services North America
38 556
45
33  689
43
Security Services Europe
35 236
41
33  469
43
Security Services Ibero-America
10 303
12
9  712
12
Other
1 932
2
1  662
2
Total
86 027
78  532
GENDER DISTRIBUTION, AVERAGE NUMBER OF YEARLY EMPLOYEES
2019
2018
Men
Women
Total
Men
Women
Total
Number of employees
234 505
67 550
302 055
234  421
65  892
300  313
Percentage of employees
78
22
100
78
22
100
GENDER DISTRIBUTION, BOARD OF DIRECTORS
2019
2018
Men
Women
Total
Men
Women
Total
Number of Board members1
5
3
8
5
3
8
Percentage of Board members
62
38
100
62
38
100
1 Excluding employee representatives
SHARE OF EMPLOYEES COVERED BY COLLECTIVE BARGAINING 
AGREEMENTS, %
2019
2018
Share of employees covered by collective 
bargaining agreements
59
56
EMPLOYEE TURNOVER, %
2019
2018
Employee turnover1
40
40
1 Does not include India and Vietnam
NEW EMPLOYEES – AGE GROUP AND GENDER IN RELATION TO TOTAL NEW EMPLOYEES, %
2019
2018
Men
Women
Total
Men
Women
Total
Under 30 years
36
14
50
39
12
51
30–50 years
27
9
36
29
8
37
Over 50 years
11
3
14
9
3
12
NEW EMPLOYEES (NUMBER)
2019
2018
Actual number1
149 283
154 116 2
% of average number of yearly employees
49
51
1 Does not include India and Vietnam
2 The total has been restated due to changed calculation method.
SUSTAINABILITY NOTES

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Securitas Annual and Sustainability Report 2019
SHARE OF EMPLOYEES WITH PERMANENT  
AND TEMPORARY WORK CONTRACTS, RESPECTIVELY, %
2019
2018
Permanent
91
91
Temporary 
9
9
SPLIT PER GENDER, %
2019
2018
Permanent employees, men
72
72
Permanent employees, women
19
19
Temporary employees, men
7
7
Temporary employees, women
2
2
WORKFORCE SPLIT ON EMPLOYMENT CATEGORY
2019
2018
Men
Women
Total
Men
Women
Total
Managers/office personnel
11 728
6 151
17 879
11  247
5  555
16  802
Security officers
275 730
69 464
345 194
274  996
68  306
343  302
Total1
363 073
360 104
1  The difference compared with total number of employees is explained by missing or inadequate information from certain reporting entities.
AREA MANAGERS AND BRANCH MANAGERS, SPLIT ON GENDER
Men
Men, %
Women
Women, %
Total
Area managers
248
86
42
14
290
Branch managers
1 453
86
229
14
1 682
Total
1 701
271
1 972
SPECIFICATION OF YEARS OF SERVICE PER EMPLOYMENT CATEGORY
2019
% of total
2018
% of total
Managers and office personnel
Less than 1 year
3 122
17
2  962
18
1–2 years
3 349
19
2  450
15
2–5 years
3 162
18
3  280
19
5–10 years
3 121
17
2  963
18
Over 10 years
5 089
29
5  106
30
17 843
16  761
Security officers
Less than 1 year
106 484
32
115  943
34
1–2 years
58 678
17
59  315
17
2–5 years
72 041
21
66  588
20
5–10 years
46 415
14
45  439
13
Over 10 years
53 390
16
56  014
16
337 008
343  299
Total1
Less than 1 year
109 606
31
118  905
33
1–2 years
62 027
18
61  765
17
2–5 years
75 203
21
69  868
19
5–10 years
49 536
14
48  402
14
Over 10 years
58 479
16
61  120
17
354 851
360  060
1 The difference compared with total number of employees is explained by missing or inadequate information from certain reporting entities. 
SUSTAINABILIT Y NOTES
SHARE OF EMPLOYEES WITH FULL-TIME  
AND PART-TIME EMPLOYMENT, RESPECTIVELY, %
2019
2018
Full-time
87
86
Part-time
13
14
SPLIT PER GENDER, %
2019
2018
Full-time, men
70
70
Full-time, women
17
16
Part-time, men
9
10
Part-time, women
4
4

Securitas Annual and Sustainability Report 2019
152
WORK-RELATED INJURIES
2019
2018
Total hours worked
721 010 888
741 330 169
Actual number of work-related injuries
6 456
6  131
Injury rate
1.8
1.7
Actual number of work-related fatalities
2
2
Notes: The injury rate is calculated based on 200 000 hours worked. 
CAUSES, WORK RELATED FATALITIES
2019
2018
Traffic accident
2
1
Shooting, other fatal attack
0
1
WORK RELATED FATALITIES 2019 PER COUNTRY
Traffic accident
Assault
USA
1
0
Costa Rica
1
0
2
0
WORK RELATED FATALITIES 2018 PER COUNTRY
Traffic accident
Assault
Colombia
0
1
Portugal
1
0
1
1
SUSTAINABILITY NOTES
TRAINING HOURS
2019
2018
Total number of hours of training
9 677 595
9  084  536
Average number of hours of training per employee
26.7
25.2
TRAINING HOURS, PER EMPLOYMENT CATEGORY
2019
2018
Managers/office staff
428 026
370  739
Security officers
9 249 569
8  713  797
TRAINING HOURS, PER GENDER
2019
2018
Men
8 320 246
7 422 687
Women
1 357 349
1 661 849
PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL 
COMMUNITY, %
2019
2018
Hired from local community
98
98
Hired from outside local community
2
2

153
Securitas Annual and Sustainability Report 2019
GROSS DIRECT EMISSIONS AND INDIRECT MARKET-BASED EMISSIONS OF CO2 EQUIVALENT 2019
Direct  
(Scope 1)
%
Indirect 
(Scope 2)
%
Indirect 
(Scope 3)
%
Total
%
Security Services North America
34 159
25
2 437
9
7 284
14
43 880
20
Security Services Europe
72 821
54
21 557
76
29 095
54
123 473
57
Security Services Ibero-America
25 322
19
2 802
10
12 821
24
40 945
19
AMEA
3 312
2
1 332
5
3 692
7
8 336
4
Other
98
0
101
0
464
1
663
0
Total
135 712
28 229
53 356
217 297
Change compared to 2018, %
23
-6
3
13
tCO2 emission per employee  
(full-time equivalent, FTE)
0.63
GROSS DIRECT EMISSIONS AND INDIRECT MARKET-BASED EMISSIONS OF CO2 EQUIVALENT 2018
Direct  
(Scope 1)
%
Indirect 
(Scope 2)
%
Indirect 
(Scope 3)
%
Total
%
Security Services North America
22  625
21
2  336
8
8  747
17
33  708
18
Security Services Europe
60  601
55
23  322
77
27  998
54
111  921
58
Security Services Ibero-America
23  646
21
3  024
10
10  047
19
36  717
19
AMEA
3  169
3
1  406
5
4  006
8
8  581
4
Other
43
0
39
0
1  046
2
1  128
1
Total
110  084
30  127
51  844
192  055
Change compared to 2017, %
19
-1
-4
8
tCO2 emission per employee  
(full-time equivalent, FTE)
0.57
2016 is the base year for the market based emissions, and it is chosen as 
it was the first year that Securitas assessed its climate impact using the 
market based calculation method. The boundary of the climate assess-
ment includes 53 reporting units, the same units as currently reporting
in accordance with the location based method. 
A GHG assessment quantifies all seven Kyoto greenhouse gases where 
applicable and it is measured in units of carbon dioxide equivalence, or 
CO2e. For Securitas the following greenhouse gases are applicable and 
have been included in the assessment:
Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O). 
Biogenic CO2 emissions: 69.6 tonnes (2018: 22.2 tonnes)
 The Greenhouse Gas Protocol Corporate Standard is a standard for 
reporting climate data. The system Our Impacts has been used as the cal-
culation tool. Operational control is the chosen consolidation approach.
The increase in emissions is explained by improved quality of reported 
Scope 1 (vehicles) data. Securitas makes ongoing efforts to refine the 
reporting in all its sites, why increases due to improved data quality might 
continue to appear in the coming years. At the same time the growth in 
sales and FTEs shows that the emissions intensity has stayed more or 
less constant during the past three reporting years, despite the increase 
in total emissions. Emissions in both Scope 2 has continued to decrease 
whereas Scope 3 has increased slightly. The higher emissions in Scope 3 
refers to larger purchases of uniforms and also upstream emissions from 
vehicles. 
Emissions from business travel continues to decrease as many sites 
referring to increased use of for example video conference meetings.
AVERAGE CO2 EMISSIONS, ALL COMPANY OWNED AND LEASED 
VEHICLES
2019
2018
Gram/km
141
139
Max CO2 gram per km for new minivans  
(6–7 seater)
1701/200 2
170 1
Max CO2 gram per km for new company cars  
(max 5 seater)
160 2
125 1
Number of vehicles
15 304
14 609
1 According to the calculation method NEDC
2 According to the calculation method WLTP
SUSTAINABILIT Y NOTES

Securitas Annual and Sustainability Report 2019
154
Client satisfaction surveys
Clients are an important stakeholder group and client satisfaction surveys is 
another way of maintaining a constructive dialog with this group.
59 percent of all countries of operation conduct regular client satis-
faction surveys. The share of satisfied clients lies between 75 and 95 
percent.
The three key conclusions from surveys conducted in 2019 are:
•	Service quality – most customers are satisfied with the service quality
•	Training - training of the security officers can be further improved
•	Communication – more communication to make things easier for our 
clients
SUSTAINABILITY NOTES
SUBSCRIPTION TO/ENDSORSEMENT  
OF EXTERNAL DECLARATIONS, PRINCIPLES, ETC
COUNTRY
ISO 9001
ISO 14001
ISO 27001
OHSAS 
18001 /
ISO45001
Austria
Belgium
Bosnia and 
Herzegovina
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Hungary
Ireland
Latvia
Montenegro
Norway
Poland
Romania
Serbia
Slovakia
Slovenia
Sweden
Switzerland
the Netherlands
Turkey
UK
Argentina
Chile
Colombia
Costa Rica
Ecuador
Peru
Portugal
Spain
Uruguay
Australia
Hong Kong
India
Morocco
Singapore
UAE
Vietnam

155
Securitas Annual and Sustainability Report 2019
GRI-index
Securitas AB’s sustainability report is prepared according to the Global 
Reporting Initiative (GRI) sustainability reporting standards, with the 
Core application level. Where relevant, this report also highlights how 
our priorities reflect the UN Global Compact’s Ten Principles for labor and 
human rights, the environment and anti-corruption and therefore acts as 
our UNGC Communication on Progress.
GRI STANDARD
Disclosure
Page reference
Note
UN Global 
Compact
General disclosures 
GRI 102: General 
disclosures
Organizational profile
102-1 Name of the organization
57
102-2 Activities, brands, products, and services
25-29, 57
102-3 Location of headquarters
75
102-4 Location of operations
25
102-5 Ownership and legal form
162-163
102-6 Markets served
25-29
102-7 Scale of the organization
98 (note 10),  124 (note 39)
102-8  Information on employees and other workers 150-152
Includes data from the associated 
companies in India and Vietnam
6
102-9 Supply chain
146
102-10 Significant changes to the organization and 
its supply chain
4, 61
102-11 Precautionary principle or approach
147 
102-12 External initiatives
13, 146,154
102-13 Membership of associations 
145, 146
Strategy
102-14 Statement from senior decision-maker
4-5
102-15 Key impacts, risks, and opportunities
8-9, 148-149
Ethics and integrity
102-16 Values, principles, standards, and norms of 
behavior
30-31, 146-147
10
102-17 Mechanisms for advice and concerns about 
ethics
146
SUSTAINABILIT Y NOTES

Securitas Annual and Sustainability Report 2019
156
GRI STANDARD
Disclosure
Page reference
Note
UN Global 
Compact
General disclosures 
GRI 102: General 
disclosures
Governance
102-18  Governance structure
34-39
102-20 Executive-level responsibility for  
economic, environmental, and social topics
146
102-21 Consulting stakeholders on economic, 
environmental, and social topics
144-145
102-22 Composition of the highest governance 
body and its committees
35-41
102-23 Chair of the highest governance body
37, 39
Stakeholder engagement
102-40 List of stakeholder groups
144-145
102-41 Collective bargaining agreements
150
Includes data from the associated 
companies in India and Vietnam
3
102-42 Identifying and selecting stakeholders
144-145
102-43 Approach to stakeholder engagement
144-145
102-44 Key topics and concerns raised
145
Reporting practice
102-45 Entities included in the consolidated 
financial statements
136 (note 52)
102-46 Defining report content and topic  
boundaries
145
102-47 List of material topics
145
102-48 Restatements of information
–
102-49 Changes in reporting
–
No changes in our focus areas have been 
made, compared with previous year.
102-50 Reporting period
144
102-51 Date of most recent report
144
102-52 Reporting cycle
144
102-53 Contact point for questions regarding the 
report
144
102-54 Claims of reporting in accordance with the 
GRI Standards
144
102-55 GRI content index
155-157
102-56 External assurance
158
Material Topics
Anti-corruption
Management 
approach
103-1 Explanation of the material topic  
and its boundary
146
103-2 The management approach and its 
components 
146
103-3 Evaluation of the management approach
146
GRI 205:  
Anti-corruption
205-2 Communication and training about anti-
corruption policies and procedures
146
Environment
Emissions
Management 
approach
103-1 Explanation of the material topic  
and its boundary
147
Environment was not considered a material 
topic in our materiality analysis, but as we 
are a signatory of UN Global Compact, it is 
important for us to be transparent and work 
for reduced climate impact, and we have 
therefore chosen to report CO2 emissions 
anyway.
103-2 The management approach and its  
components 
147
103-3 Evaluation of the management  
approach
147 
GRI 305: Emissions
305-1 Direct (Scope 1) GHG emissions
153
Includes data from the associated 
companies in India and Vietnam
7, 8, 9
305-2 Energy indirect (Scope 2) GHG  
emissions
153
Includes data from the associated 
companies in India and Vietnam
7, 8, 9
305-3 Other indirect (Scope 3) GHG  
emissions
153
Includes data from the associated 
companies in India and Vietnam
7, 8, 9
SUSTAINABILITY NOTES

157
Securitas Annual and Sustainability Report 2019
GRI STANDARD
Disclosure
Page reference
Note
UN Global 
Compact
Social
Employment
Management 
approach
103-1 Explanation of the material topic  
and its boundary
147
103-2 The management approach and its  
components 
147
103-3 Evaluation of the management  
approach
147
GRI 401: 
Employment
401-1 New employee hires and  
employee turnover
150
Does not include data from the associated 
companies in India and Vietnam. Omission: 
Total number of leavers.
6
Occupational health and safety
Management 
approach
103-1 Explanation of the material topic  
and its boundary
147
103-2 The management approach and its  
components 
147
103-3 Evaluation of the management  
approach
147
Includes data from the associated 
companies in India and Vietnam
GRI 403: 
Occupational  
health and safety
403-1 Occupational health and safety 
management systems
147, 154
Includes data from the associated 
companies in India and Vietnam
6
403-4 Worker participation, consultation and 
communication on occupational health and safety
147
Includes data from the associated 
companies in India and Vietnam
403-5 Worker training on occupational health and 
safety
147
Includes data from the associated 
companies in India and Vietnam
403-9 Number of work-related injuries
152
Includes data from the associated 
companies in India and Vietnam
Training and education
Management 
approach
103-1 Explanation of the material topic  
and its boundary
147
103-2 The management approach and its  
components 
147
103-3 Evaluation of the management  
approach
147
GRI 404: Training 
and education
404-1 Average hours of training per year  
per employee
152
Includes data from the associated 
companies in India and Vietnam. Omission: 
Average number of training hours per 
gender.
6
Diversity and equal opportunity
Management 
approach
103-1 Explanation of the material topic  
and its boundary
147
103-2 The management approach and its  
components 
147
103-3 Evaluation of the management  
approach
147
GRI 405: Diversity 
and equal 
opportunity
405-1 Diversity of governance bodies  
and employees
150
Includes data from the associated 
companies in India and Vietnam. Omission: 
Split per age group.
Client privacy
Management 
approach
103-1 Explanation of the material topic  
and its boundary
147
103-2 The management approach and its  
components 
147
103-3 Evaluation of the management  
approach
147
Includes data from the associated 
companies in India and Vietnam
GRI 418: Client 
privacy
418-1 Substantiated complaints  
concerning breaches of client privacy 
and losses of client data
18, 147, 149
Includes data from the associated 
companies in India and Vietnam
Risk for child labor
13, 147
1, 2, 5
Risk for forced labor
13, 147
1, 2, 4
SUSTAINABILIT Y NOTES

Securitas Annual and Sustainability Report 2019
158
This is a translation of the Swedish original report
Auditor’s report on the statutory sustainability report
To the general meeting of the shareholders in Securitas AB (publ) corpo-
rate identity number 556302-7241 
Engagement and responsibility
It is the Board of Directors who is responsible for the statutory sustain­
ability report for the year 2019 as outlined in the table below and that it 
has been prepared in accordance with the Annual Accounts Act. 
The scope of the audit
Our examination has been conducted in accordance with FAR’s auditing 
standard RevR 12 The auditor’s opinion regarding the statutory sustain-
ability report. This means that our examination of the statutory sustain-
ability report is substantially different and less in scope than an audit 
conducted in accordance with International Standards on Auditing and 
generally accepted auditing standards in Sweden. We believe that the 
examination has provided us with sufficient basis for our opinion. 
Opinion
A statutory sustainability report has been prepared. 
Stockholm, March 18, 2020
PricewaterhouseCoopers AB
Patrik Adolfson 	
	
Madeleine Endre 
Authorised Public Accountant 	
Authorised Public Accountant
Auditor in charge
INFORMATION ABOUT:
See page
Environment
147, 149, 153
Social conditions
146-148
Personnel
10-13, 30, 144, 147, 
148, 150-152
Respect for human rights
13, 147
Anti-corruption
146, 149
Business model
10-11
Significant risks for sustainability
148-149
GRI index
155-157
SUSTAINABILITY NOTES

Securitas Annual and Sustainability Report 2019
159
SUSTAINABILIT Y NOTES

Securitas Annual and Sustainability Report 2019
160
Statement of income 20191	
MSEK
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Sales
26 195
27 134
28 106
28 125
Sales, acquired business
549
550
108
132
Total sales
26 744
27 684
28 214
28 257
Organic sales growth, %
7
5
4
2
Production expenses
-22 113
-22 882
-23 238
-23 355
Gross income
4 631
4 802
4 976
4 902
Selling and administrative expenses
-3 350
-3 443
-3 416
-3 428
Other operating income
8
9
9
8
Share in income of associated companies
1
9
5
15
Operating income before amortization
1 290
1 377
1 574
1 497
Operating margin, %
4.8
5.0
5.6
5.3
Amortization of acquisition related intangible assets
-66
-70
-67
-68
Acquisition related costs
-12
-17
-5
-28
Items affecting comparability
-20
-46
-60
-83
Operating income after amortization
1 192
1 244
1 442
1 318
Financial income and expenses
-139
-150
-149
-140
Income before taxes
1 053
1 094
1 293
1 178
Net margin, %
3.9
4.0
4.6
4.2
Current taxes
-305
-318
-375
-202
Deferred taxes
12
18
18
-104
Net income for the period
760
794
936
872
Whereof attributable to:
Equity holders of the Parent Company
758
795
935
869
Non-controlling interests
2
-1
1
3
Earnings per share before and after dilution (SEK)
2.08
2.18
2.56
2.38
Earnings per share before and after dilution and before items  
affecting comparability (SEK)
2.12
2.27
2.68
2.54
Statement of cash flow 20191	
MSEK
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Operating income before amortization
1 290
1 377
1 574
1 497
Investments in non-current tangible and intangible assets
-707
-780
-800
-723
Reversal of depreciation
640
660
701
689
Change in accounts receivable
-133
-266
305
-145
Change in other operating capital employed
-1 157
-45
390
535
Cash flow from operating activities
-67
946
2 170
1 853
Cash flow from operating activities, %
-5
69
138
124
Financial income and expenses paid
-289
-55
-41
-58
Current taxes paid
-250
-275
-299
-367
Free cash flow
-606
616
1 830
1 428
Free cash flow, %
-72
68
174
124
Cash flow from investing activities, acquisitions and divestitures
-149
-233
-7
-185
Cash flow from items affecting comparability
-66
-77
-54
-106
Cash flow from financing activities
1 022
-1 083
-953
-685
Cash flow for the period
201
-777
816
452
Capital employed and financing 20191	
MSEK
March 31, 2019
June 30, 2019
September 30, 2019
December 31, 2019
Operating capital employed
14 239
14 293
13 968
13 100
Operating capital employed as % of sales
13
13
13
12
Return on operating capital employed, %
43
43
47
50
Goodwill
21 903
22 070
22 801
22 157
Acquisition related intangible assets
1 508
1 523
1 507
1 563
Shares in associated companies
487
484
504
320
Capital employed
38 137
38 370
38 780
37 140
Return on capital employed, %
13
13
14
15
Net debt
-19 290
-20 460
-19 415
-17 541
Shareholders’ equity
18 847
17 910
19 365
19 599
Net debt equity ratio, multiple
1.02
1.14
1.00
0.89
	
	
	
	
1 For definitions and calculation of key ratios refer to note 3.
QUARTERLY DATA

161
Securitas Annual and Sustainability Report 2019
QUARTERLY DATA
Statement of income 20181	
MSEK
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Sales
23 111
25 208
25 255
26 133
Sales, acquired business
245
258
566
691
Total sales
23 356
25 466
25 821
26 824
Organic sales growth, %
6
7
6
5
Production expenses
-19 305
-21 039
-21 140
-22 086
Gross income
4 051
4 427
4 681
4 738
Selling and administrative expenses
-2 977
-3 153
-3 241
-3 283
Other operating income
7
8
7
8
Share in income of associated companies
10
4
5
12
Operating income before amortization
1 091
1 286
1 452
1 475
Operating margin, %
4.7
5.0
5.6
5.5
Amortization of acquisition related intangible assets
-63
-65
-67
-65
Acquisition related costs
-9
-16
-16
-79
Items affecting comparability
–
–
-268
-187
Operating income after amortization
1 019
1 205
1 101
1 144
Financial income and expenses
-93
-103
-91
-154
Income before taxes
926
1 102
1 010
990
Net margin, %
4.0
4.3
3.9
3.7
Current taxes
-213
-264
-237
-248
Deferred taxes
-23
-7
-16
1
Net income for the period
690
831
757
743
Whereof attributable to:
Equity holders of the Parent Company
689
833
756
738
Non-controlling interests
1
-2
1
5
Earnings per share before and after dilution (SEK)
1.89
2.28
2.07
2.02
Earnings per share before and after dilution and before items  
affecting comparability (SEK)
1.89
2.28
2.61
2.39
Statement of cash flow 20181	
MSEK
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Operating income before amortization
1 091
1 286
1 452
1 475
Investments in non-current tangible and intangible assets
-519
-556
-543
-570
Reversal of depreciation
380
415
449
449
Change in accounts receivable
-274
-463
-451
-387
Change in other operating capital employed
-1 603
119
507
915
Cash flow from operating activities
-925
801
1 414
1 882
Cash flow from operating activities, %
-85
62
97
128
Financial income and expenses paid
-243
-39
-50
-100
Current taxes paid
-260
-234
-146
-216
Free cash flow
-1 428
528
1 218
1 566
Free cash flow, %
-182
57
109
146
Cash flow from investing activities, acquisitions and divestitures
-514
-721
-387
-133
Cash flow from items affecting comparability
–
–
-24
-93
Cash flow from financing activities
804
312
-1 001
-491
Cash flow for the period
-1 138
119
-194
849
Capital employed and financing 20181	
MSEK
March 31, 2018
June 30, 2018
September 30, 2018
December 31, 2018
Operating capital employed
9 598
10 514
9 847
9 199
Operating capital employed as % of sales
10
10
10
9
Return on operating capital employed, %
55
54
55
58
Goodwill
19 553
20 845
20 786
21 061
Acquisition related intangible assets
1 367
1 358
1 482
1 458
Shares in associated companies
424
452
442
452
Capital employed
30 942
33 169
32 557
32 170
Return on capital employed, %
15
15
15
15
Net debt
-14 467
-16 732
-15 749
-14 513
Shareholders’ equity
16 475
16 437
16 808
17 657
Net debt equity ratio, multiple
0.88
1.02
0.94
0.82
	
	
	
	
1 For definitions and calculation of key ratios refer to note 3.

Securitas Annual and Sustainability Report 2019
162
The Securitas Share 
DATA PER SHARE 
SEK / share
2019
2018
2017
2016
2015
Earnings per share3, 4
9.20
8.26
7.53
7.24
6.67
Earnings per share before items affecting comparability
9.61
9.17
7.87
7.24
6.67
Dividend
4.80 1
4.40
4.00
3.75
3.50
Dividend as % of earnings per share
50 2
53
51
52
52
Yield, %
3.0 2
3.1
2.8
2.6
2.7
Free cash flow per share
8.95
5.16
6.27
4.71
5.93
Share price at end of period
161.45
142.25
143.20
143.40
130.00
Highest share price
170.05
164.05
151.80
152.90
135.00
Lowest share price
136.75
134.70
125.30
110.00
90.10
Average share price
153.43
146.96
139.07
132.01
115.80
P / E ratio
17
17
18
20
19
Number of shares outstanding (000s)3, 5
364 934
365 059
365 059
365 059
365 059
Average number of shares outstanding, after dilution (000s)3, 5
364 993
365 059
365 059
365 059
365 059
1 Proposed dividend.
2 Calculated on proposed dividend.
3 There are no outstanding convertible debenture loans. Consequently, there is no potential dilution.
4 Number of shares used for calculation of earnings per share includes shares related to the Group’s 
share-based incentive schemes that have been hedged through swap agreements.
5 On June 24, 2019, 125 000 shares were repurchased.
THE SECURITAS SHARE
At year-end, the closing price of the Securitas share on Nasdaq Stockholm 
was SEK 161.45, corresponding to a market capitalization of 
MSEK 56 171 (49 491). Earnings per share was SEK 9.20 (8.26), which 
represented a total change of 11 percent compared with 2018, and 6 
percent when adjusted for changes in exchange rates. EPS before items 
affecting comparability was SEK 9.61 (9.17), which represented a total 
change of 5 percent compared with 2018, and -1 percent when adjusted 
for changes in exchange rates. Adjusted for the negative impacts from 
the adoption of IFRS 16, as well as a higher tax rate compared to 2018, 
EPS before items affecting comparability and adjusted for exchange rates 
would have been 4 percent in 2019. 
Performance of the share in 2019  
At year-end, the closing price of the Securitas share was SEK 161.45 
(142.25). The share price increased by 13 percent in 2019 to compare 
with the OMX Stockholm Price index, which increased by 30 percent. The 
highest price paid for a Securitas share in 2019 was SEK 170.05, which 
was noted on May 6, and the lowest price paid was SEK 136.75, which 
was noted on January 3.
Trading
A total of 275 million (325) Securitas shares were traded on Nasdaq 
Stockholm, representing a value of MSEK 42 001 (47 720). The turnover 
velocity in 2019 was 79 percent (92), compared with a turnover rate of 
45 percent (48) for the entire Nasdaq Stockholm. The average number of 
Securitas shares traded each day was 1 099 300.
The trading on Nasdaq Stockholm represented 40 percent of all traded 
Securitas shares in all categories of venues in 2019 (includes, for example 
BATS Chi-X Europe, Turquoise as well as dark pools and off-book).
Share capital and shareholder structure
At December 31, 2019, the share capital amounted to SEK 365 058 897, 
distributed between an equal number of shares, each with a quota value 
of  SEK 1.00. Of these shares, 17 142 600 are Series A shares and 
347 916 297 are Series B shares. Each Series A share carries ten votes 
and each Series B share carries one vote. The free float of the Securitas 
share is 89 percent. 
 At December 31, 2019, Securitas had 41 892 shareholders (32 197). 
In terms of the number of shareholders, private individuals make up the 
largest shareholder category with 37 252 shareholders, corresponding 
to 89 percent of the total number of shareholders. In terms of capital and 
votes, institutional and other corporate entities dominate with 95 and 96 
percent, respectively.
Shareholders based in Sweden hold 53 percent (49) of the capital and 
67 percent (64) of the votes. Compared with 2018, the proportion of for-
eign shareholders in the shareholder base has decreased. At December 
31, 2019, shareholders outside Sweden owned 47 percent (51) of the 
capital and 33 percent (36) of the votes. The largest shareholdings held 
by foreign shareholders are in the US and the UK, with 17 percent of the 
capital and 12 percent of the votes in the US and 11 percent of the capital 
and 7 percent of the votes in the UK. Foreign shareholders are not always 
recorded in the share register. Foreign banks and other custodians may be 
recorded for multiple customers’ shares and the actual owners are then 
not displayed in the register.
At December 31, 2019, the principal shareholders in Securitas were 
Investment AB Latour, holding 10.9 percent (10.9) of the capital and 29.6 
percent (29.6) of the votes, and Melker Schörling AB, holding 4.1 percent 
(4.5) of the capital and 10.7 percent (11.0) of the votes. These sharehold-
ers are represented on the Board of Directors by Carl Douglas and Sofia 
Schörling Högberg. 
Dividend policy and cash dividend 
With a balanced growth strategy comprising both organic and acquisi-
tion-driven growth and continued investments in security solutions and 
electronic security, Securitas should be able to sustain a dividend level in 
the range of 50–60 percent of the annual net income. The Board of Direc-
tors proposes a dividend of SEK 4.80 (4.40) per share, corresponding 
to 52 percent of net income and 50 percent of net income before items 
affecting comparability. Based on the share price at the end of 2019, the 
dividend yield for 2019 amounted to 3 percent.  
Authorization to repurchase shares in Securitas AB
The 2019 Annual General Meeting resolved to authorize the Board of Direc-
tors to resolve upon the acquisition of the company’s own shares up to a max-
imum of 10 percent of all shares and for a period up to the Annual General 
Meeting in 2020. On June 24, 2019, 125 000 shares were repurchased.
Securitas share in brief
Series B Securitas shares are traded on Nasdaq Stockholm, part of Nas-
daq Nordic, and on other trading venues such as BATS Chi-X Europe. 
Securitas is listed on Nasdaq Stockholm on the Large Cap List for com-
panies, which includes large companies with a market capitalization of 
more than MEUR 1000, and is included in the Industrial Goods & Services 
sector. The ISIN code for the Securitas share on Nasdaq Stockholm is 
SE0000163594.
The ticker code for the Securitas share is SECU B on Nasdaq Stock-
holm, SECUB:SS on Bloomberg and SECUb.ST on Reuters. Securitas has 
been listed on the stock exchange since 1991.

163
Securitas Annual and Sustainability Report 2019
LARGEST SHAREHOLDERS AT DECEMBER 31, 2019 
Shareholder
Series A shares
Series B shares
% of capital
% of votes
Investment AB Latour
12 642 600
27 190 000
10.9
29.6
Melker Schörling AB1
4 500 000
10 419 039
4.1
10.7
State Street and Trust Co2
0
31 388 097
8.6
6.0
Lannebo Funds
0
14 930 992
4.1
2.9
HSBC Bank Plc2
0
11 970 684
3.3
2.3
Didner & Gerge Funds
0
10 403 258
2.8
2.0
BNY Mellon NA2
0
9 179 368
2.5
1.8
Swedbank Robur Funds
0
8 647 709
2.4
1.7
BNY Mellon SA/NA2
0
8 454 362
2.3
1.6
Carnegie Funds
0
7 325 000
2.0
1.4
Total, ten largest shareholders
17 142 600
139 908 509
43.0
59.9
Total, rest of owners
0
208 007 788
57.0
40.1
Total as of December 31, 2019
17 142 600
347 916 2973
100.00
100.00
1 In addition to the holding through Melker Schörling AB, holdings in the Schörling family of in total 7 200 shares are included.
2 Custodian banks.
3 Includes 125 000 shares that were repurchased on June 24, 2019.
SHAREHOLDER SPREAD AT DECEMBER 31, 2019
Number of shares
Number of  
shareholders 
Number of  
Series A shares 
Number of  
Series B shares 
% of 
capital
% of 
votes
1–500
31 865
0
3 984 265
1.09
0.77
501–1 000
4 311
0
3 487 323
0.96
0.67
1 001–5 000
4 289
0
9 580 797
2.62
1.84
5 001–10 000
556
0
4 075 996
1.12
0.78
10 001–15 000
181
0
2 274 326
0.62
0.44
15 001–20 000
115
0
2 111 425
0.58
0.41
20 001–
575
17 142 600
322 402 165
93.01
95.09
Total
41 892
17 142 600
347 916 2971
100.00
100.00
1 Includes 125 000 shares that were repurchased on June 24, 2019. 
Source: Euroclear Sweden
Source: Euroclear Sweden
Free cash flow per share: Free cash  
flow in relation to the number of shares  
outstanding.
Market capitalization: The number  
of shares outstanding times the market 
price of the share price at year-end.
P / E ratio (Price / Earnings): The share  
price at the end of each year relative to 
earnings per share after taxes.
Turnover velocity: Turnover during  
the year relative to the average market  
capitalization during the same period.
Yield: Dividend relative to share price  
at the end of each year. For 2018, the  
proposed dividend is used.
Definitions
Share prices for Securitas, January 1 – December 31, 2015–2019
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
Traded number of shares in 1 000’s per month
2019
2018
2017
2016
2015
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
OMX Stockholm 30 Index
OMX Stockholm Price Index
Securitas AB
Share price
Number of shares, 1 000’s
Source:
THE SECURITAS SHARE

Securitas Annual and Sustainability Report 2019
164
Reporting dates
Securitas will release financial information for 2020 as follows:
Interim Reports 2020
January – March	
	
May 7, 2020
January – June	
	
July 29, 2020
January – September	
	
November 3, 2020
January – December	
	
February 6, 2021
Financial information
Our financial reports are available both in English and in Swedish and can 
be read and downloaded at our webpage at the following address: 
www.securitas.com/investors/financial-reports/
We also offer an order and subscribe service of financial information at the 
following address:
www.securitas.com/investors/order-and-subscribe/
Other questions concerning our financial information can be addressed to 
us through mail, telephone or e-mail:
Securitas AB
Investor Relations
P.O. Box 12307
SE-102 28 Stockholm
Sweden
Telephone: +46 10 470 30 00
E-mail: ir@securitas.com
www.securitas.com
Investor Relations activities conducted in 2019
Securitas arranged an investor day in December. All the presentations 
from the day can be found at: www.securitas.com/investors/presenta-
tions/presentations-investor-days/. 
During the year Securitas participated in investor meetings, investor con-
ferences and roadshows in Chicago, London, New York and Stockholm. 
Financial analysts who cover Securitas
COMPANY NAME	
	
NAME
AlphaValue	
	
Hélène Coumes
Barclays	
	
Paul Checketts
Carnegie	
	
Mikael Löfdahl
Citi	
	
Marc van’t Sant
Credit Suisse	
	
Andrew Grobler
DNB	
	
Karl-Johan Bonnevier
Deutsche Bank	
	
Steven Goulden
Exane BNP Paribas	
	
Allen Wells
Goldman Sachs	
	
Matija Gergolet
Handelsbanken	
	
Carina Elmgren
HSBC	
	
Chirag Vadhia
Jefferies	
	
James Winckler
J.P. Morgan Cazenove	
	
Sylvia Barker
Morgan Stanley	
	
Edward Stanley
Nordea	
	
Henrik Mawby
Pareto Securities	
	
Stefan Wård
RBC Capital Markets	
	
Andrew Brooke
SEB	
	
Dan Johansson
UBS	
	
Bilal Aziz
Analysts that follow Securitas might change during the year. The list 
above is updated regularly and can be found at https://www.securitas.
com/investors/analyst-coverage-and-ratings/
Annual General Meeting of shareholders 
in Securitas AB (publ.)
The shareholders in Securitas AB are hereby invited to attend the Annual 
General Meeting (AGM) to be held at 4.00 p.m. CET on Thursday May 
7, 2020 at Courtyard Marriott Hotel, Rålambshovsleden 50, Stockholm, 
Sweden. Registration for the AGM begins at 3.00 p.m. CET.
Notice of attendance
Shareholders who wish to attend the AGM must:
(i) be recorded in the share register maintained by Euroclear Sweden AB 
(Euroclear), made as of Thursday, April 30, 2020,
and (ii) notify Securitas AB of their intent to participate in the AGM at the 
address:
Securitas AB, “AGM”
c/o Euroclear Sweden AB
P.O. Box 191, SE-101 23 Stockholm, Sweden
or
by telephone +46 10 470 31 30
or 
via the company website www.securitas.com /agm2020,
by Thursday, April 30, 2020, at the latest.
On giving notice of attendance, the shareholder shall state name, personal 
identity number or equivalent (corporate identity number), address and 
telephone number. A proxy form is available on the company website 
www.securitas.com /agm2020 and will be sent by mail to shareholders 
informing the company of their address and their wish to receive a copy 
of the proxy form. Proxy and representative of a legal person shall submit 
papers of authorization prior to the AGM. As confirmation of the notifica-
tion, Securitas AB will send an entry card, which should be presented at 
registration for the AGM.
In order to participate in the proceedings of the AGM, owners with 
nominee-registered shares must request their bank or broker to have their 
shares temporarily owner-registered with Euroclear. Such registration 
must be made as of Thursday, April 30, 2020 and the banker or broker 
should therefore be notified in due time before said date.
Financial Information  
and Invitation to the  
Annual General Meeting
FINANCIAL INFORMATION AND INVITATION TO THE ANNUAL GENERAL MEETING

Production: Securitas AB in cooperation with Narva
Print: Elanders, Sweden, 2020
Photo: Matt Fukishim: Cover, pages: 0,1
Unsplash: 8-9  
Ingemar Lindewall: 5, 6-7, 10-11, 14, 16, 17, 18, 19, 
20 (left and right), 21, 23, 24, 26, 27, 28 (right),  
29, 33, 39, 41, 43, 44, 53, 159
Raf Ketelslagers: 20 (middle), 22 
Nicolás Anguita: 28 (left) 
Mats Lundqvist: 30-31
Photo editing: Lena Hoxter
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3041 0242

Securitas AB
PO Box 12307
SE-102 28 Stockholm
Sweden
Visiting address:
Lindhagensplan 70
www.securitas.com
Securitas Annual and Sustainability Report 2019