Coor Service Management : Presentation material

Interim report

Q3 2023 October 25, 2023

	1.	Key highlights in the quarter
Agenda	2.	Financial performance
3.	Sum-up and Q&A

AnnaCarin Grandin, President and CEO Andreas Engdahl, CFO and IR Director

1. Key highlights in the quarter

Agenda	2.	Financial performance
3.	Sum-up and Q&A

Key highlights in the quarter

• Business activity:
• • New IFM contract with Swedbank
  • New partnership agreement with ATP Ejendomme in Denmark
  • 5-yearprolongation of IFM contract with Aibel in Norway
  • Structured exit of Ericsson contract with continued delivery of some advanced services
• Integration of Skaraborgs Städ progressing well
• Strong results in annual customer satisfaction survey
• Net Zero 2040 ambitions approved by Science Based Targets
• Continued growth opportunities in the Nordic market with organic growth as priority and a more cautious view on M&A

Stable cash generation but margin below financial target

Business responsibility	Q3 2023	Q3 2022	LTM	Mid-long term target

Organic Growth

Acquired Growth

Adj. EBITA-Margin

Cash Conversion1

Leverage1

Customer Satisfaction2

Customer satisfaction index (CSI)

3% 1% 1%

4% 10% 3%

4,2% 4,4% 4,8%

93% 91% 93%

2,4x 1,8x 2,4x

71

71

-

4-5%

Organic net sales growth over a business cycle

n/a

~5,5%

Adj. EBITA margin

>90%

(Adj. EBITDA - CAPEX - ΔWC) /

Adj. EBITDA

<3,0x

Net debt / Adj. EBITDA LTM

≥70

1 LTM 2 Survey conducted once a year

Action program to strengthen profitability

• benefit from Coor's leading position in the Nordics

WHY

Successful growth journey, despite termination of a few large contracts

Growth in combination with external factors has put pressure on the operating margin

HOW

Accelerate towards financial target by;

• Increased cost restrictions
• Increased focus on procurement to better utilize Nordic economies of scale
• Increased harmonization of underlying processes to enable a more efficient administration and operation and realize synergies in staffing

EFFECT

Action program fully implemented estimates an annual effect of ~SEK 100 million from staff reductions and procurement cost reductions

Majority of activities implemented during Q4 2023 and Q1 2024

Costs for the action program estimated to ~ SEK 40 million, majority will be included in the result for the fourth quarter as IAC

Net Zero 2040 ambitions approved by Science Based Target

Social and environmental responsibilityQ3 2023 Q3 2022 FY 2022Mid-long term target

	Engaged and motivated employees1	76	76	76	≥70
	Employee motivation index (EMI)
						≤3,5
	Safe work environment	2	6,6	7,9	7,0
		Total number of accidents x 1,000,000/
	Total Recorded Injury Frequency (TRIF)				number of hours worked
	Equal opportunities		52% / 48%	50% / 50%	50% / 50%	50% / 50%
	Share female / male managers

Environmental responsibility

Scope 1 - From our vehicles		17%	29%	25%
Reduction of green house gases2
Scope 2 - From our premises		N/A	N/A	-57%
Reduction of green house gases2,3
Scope 3 - From F&B
	-18%	-16%	-16%
Reduction of green house gases2
Scope 3 - SBTi aligned suppliers	12%	N/A	4%
Reduction of green house gases2
1 Survey conducted once a year 2 LTM	3 Measured at year end

-50%​

Total CO2e emissions from Scope 1 and 2 compared to baseline in absolute numbers (tCO2e)

-30%

Total CO2e emissions from purchased food raw

material in kg/total number of kgs

purchased food raw material (kgCO2e/kg)

75%

of suppliers by emissions will be aligned to Science Based Targets

1. Key highlights in the quarter

Agenda	2.	Financial performance
3.	Sum-up and Q&A

Net Sales segmentation

Net Sales

(LTM)

12.2

bnSEK

Sales and Adj. EBITA development

Profit & Loss

		Q3		LTM	Helår
	2023	2022	Chg.	Q3	2022
Net sales	3 016	2 766	249	12 244	11 789
Adj. EBITA	126	122	4	592	634
Adj. EBITA margin	4,2%	4,4%	-0,2%	4,8%	5,4%
IACs	-18	-21	3	-79	-69
Amortization	-31	-32	1	-139	-156
EBIT	78	70	8	374	408
Financial net	-38	-19	-19	-127	-72
Income tax	-12	-12	0	-68	-79
Net income	28	39	-11	179	257
Add-back amortization	31	32	-1	139	156
Adj.Net income	59	71	-12	318	414