Securit y Ser vices Europe S ALE S AND INC O m E M SEK 2012 2011 T ot al sales 27 185 26 178 Organic sale s gro w th 1 0 Oper atin g income before amortization 1 102 1 009 Operating margin 41 39 Real change 12 21 Compar ativ es ha v e been res t ated due to oper ations mo v ed bet w een the se gments Securit y Ser vices Europe M obile and M onitorin g and Securit y Ser vices Ibero America F urther information re gar din g the s t atement of income cash fo w and capit al emplo y ed is pro vided in note 9 Or ganic sales gro wth w as 1 percent 0 and supported mainly b y Bel g ium Denmark G erman y Nor w a y and T urk e y The or ganic sales gro wth in F r ance w as ne gativ e with 7 percent afected b y v olume losses due to price increase campaigns and a price com petitiv e mark et The oper atin g mar g in w as 41 percent 39 The main con tributor s to the positiv e de v elopment w ere Bel g ium F r ance and G erman y while the oper atin g mar g in declined in S w eden The S w edish krona e x chan g e r ate s tren g thened v er sus the euro and thus had a ne gativ e efect on the oper atin g result in S w edish kronor The real chan g e w as 12 percent in the period The client retention r ate w as 91 percent 89 The emplo y ee turno v er w as 26 percent 27 The emplo y ee turno v er has been adjus ted due to oper ations in Portugal and Spain bein g mo v ed to Securit y Ser vices Ibero America M obile and M onitorin g S ALE S AND INC O m E M SEK 2012 2011 T ot al sales 6 165 6 041 Organic sale s gro w th 1 3 Oper atin g income before amortization 619 722 Operating margin 100 120 Real change 12 3 Compar ativ es ha v e been res t ated due to oper ations mo v ed bet w een the se gments Securit y Ser vices Europe M obile and M onitorin g and Securit y Ser vices Ibero America F urther information re gar din g the s t atement of income cash fo w and capit al emplo y ed is pro vided in note 9 Or ganic sales gro wth w as 1 percent 3 sho win g a mix ed picture in the business se gment and amon g the countries The decline w as mainly e xplained b y the ne gativ e impact from portfolio net chan g e with lo w er new sales in the M obile oper ation where lo w er e xtr a sales also hampered the de v elopment The or ganic sales gro wth in the M onitorin g oper ation w as fat supported b y mainly the Nor dic countries and Bel g ium The oper atin g mar g in w as 100 percent 120 The oper atin g mar g in w as pressured b y 09 percent due to oneof efects comin g from re v aluations of primarily bad debt pro visions and in v entories The remainin g de viation w as related to the ne gativ e or ganic sales gro wth in the M obile oper ation and a w eak mark et situation in Spain The real chan g e in oper atin g income in the business se gment w as 12 percent Securit y Ser vices Ibero America S ALE S AND INC O m E M SEK 2012 2011 T ot al sales 9 032 9 097 Organic sale s gro w th 3 11 Oper atin g income before amortization 465 550 Operating margin 51 60 Real change 13 9 Compar ativ es ha v e been res t ated due to oper ations mo v ed bet w een the se gments Securit y Ser vices Europe M obile and M onitorin g and Securit y Ser vices Ibero America F urther information re gar din g the s t atement of income cash fo w and capit al emplo y ed is pro vided in note 9 Or ganic sales gro wth w as 3 percent 11 and w as e xplained b y the de v elopment in Spain and Portugal Contr act losses and reductions terminations due to uncert ain client credit w orthiness as w ell as lo w er e xtr a sales had a ne gativ e impact B y the end of the fr s t quarter 2012 contr acts with lo w mar g in in Spain w orth appro ximately M SEK 450 ME UR 50 in annual sales w ere termi nated The in v es tments in the technology platform in Spain has had a positiv e impact on sales v olumes but the ne gativ e efects from toug h mark et conditions continued to put pressure on the or ganic sales gro wth sho win g 17 percent in Spain in 2012 In L atin America the or ganic sales gro wth w as 21 percent primarily driv en b y price increases and g ood portfolio de v elopment in Ar g entina U rugua y and Peru The oper atin g mar g in w as 51 percent 60 and declined mainly in Spain due to ne gativ e le v er a g e from lo w er portfolio and e xtr a sales in a toug h price competitiv e mark et The positiv e efect from lea vin g lo w proft abilit y contr acts w as out w eig hed b y increased social pa yroll t ax es and a ne gativ e price and w a g e balance In v es tments in a technology platform in Spain also impacted ne gativ ely In L atin America the oper atin g mar g in is slig htly behind las t y ear due to in v es tments in technology resources mainly in Ar g entina The S w edish krona e x chan g e r ate s tren g thened and thus had a ne gativ e efect on the oper atin g result in S w edish kronor The real chan g e w as 13 percent in the period The client retention r ate w as 82 percent 86 The emplo y ee turno v er r ate w as 33 percent 39 The emplo y ee turno v er has been adjus ted due to oper ations in Portugal and Spain bein g mo v ed from Securit y Ser vices Europe 59 Securit as Annual R eport 2012 Annual R eport R eport of the Boar d of Director s