Acquisitions after December 31 2012 Selectron U rugua y Securit as has acquired the monitorin g and ins t allation compan y Selectron in U rugua y Enterprise v alue is es timated to M SEK 20 M UYU 60 Selectron has annual sales of appro ximately M SEK 27 M UYU 80 and 90 emplo y ees The compan y has a s tron g presence in the fnancial and ret ail cus tomer se gments Other signifcant e v ents Authorization to repurchase shares in Securit as AB In or der to be able to contribute to shareholder v alue the Boar d consider s it benefcial for the compan y to be able to adjus t the compan y s capit al s tructure as appropriate at each point in time The Boar d has therefore decided to propose to the Annual G en er al M eetin g on M a y 7 2013 that the Boar d be authoriz ed to be able to resolv e on the acquisition of the compan y s shares for a period until the ne xt Annual G ener al M eetin g up to a maximum of ten 10 percent of the issued shares in the compan y F or this purpose the Boar d intends to propose that an y shares that ha v e been repurchased as per such an authorization be cancelled Increase of in v es tment pace in technology and initiation of cos t sa vin g s progr am m easures w ere initiated in October 2012 to bet ter align Securit as with future cus tomer needs and e xpect ations and to further increase the in v es tment pace in technology The M obile and M onitorin g and Securit y Ser vices Europe business se gments ha v e been mer g ed as of Januar y 1 2013 to impro v e the coor di nation and speed of technology implement ation A cos t sa vin g s progr am w as initiated in North America and in Europe also includin g Spain in the business se gment Securit y Ser vices Ibero America which w as in all material aspects fnaliz ed in December 2012 T ot al sa vin g s are es timated to appro ximately M SEK 370 annually efectiv e as of Januar y 1 2013 and the res tructurin g cos t amounted to M SEK 458 The res tructurin g cos t is classifed as an item afectin g compa r abilit y in the s t atement of income The tot al cash pa yments relatin g to the res truc turin g progr am amounted to M SEK 152 in 2012 In the s t atement of cash fo w these pa yments are classifed as a cash fo w from items afectin g compar abilit y and are thus not included in our measurement of free cash fo w The tot al pro vision relatin g to the res tructurin g progr am as of December 31 2012 amounted to M SEK 300 F urther information is pro vided in note 11 Spain o v ertime compensation The Spanish Supreme Court has issued a rulin g that pro vides guidelines on the comput ation of o v ertime compensation B ased on these guidelines Group m ana g ement has deemed that the pro visions w ere sufcient for the e xposure As a result of an increased number of claims ha vin g been decided in court and subsequently set tled durin g the cour se of 2012 Group M ana g e ment has obt ained bet ter visibilit y re gar din g the e xposure and the probable outfo w that will be necessar y in or der to set tle o v ertime compensation claims Group m ana g ement has based on this decided to release M SEK 23 ME UR 26 from the pro vision at the end of 2012 The remainin g pro vision amounts to M SEK 40 ME UR 47 which is deemed sufcient for the remainin g e xposure The re v er sal from the pro vision is classifed as an item af fectin g compar abilit y in the s t atement of income f or further information re gar din g the Spanish o v ertime compen sation case refer to note 11 note 32 and note 35 Spain t ax audit The Spanish t ax authorit y has in connection with an audit of Securit as Spain challen g ed cert ain interes t deductions and in a t ax resolution in the fourth quarter decided to reject interes t pa y ments made for the y ear s 20062007 This w as e xpected as a consequence of a similar resolution receiv ed in 2009 re gar din g interes t deductions for the y ear s 20032005 If fnally upheld b y Spanish courts the resolution b y the Span ish t ax authorities w ould result in a t ax of m E u R 16 includin g interes t in addition to m E u R 10 referrin g to interes t deductions for the y ear s 20032005 Securit as belie v es it has acted in accor dance with applicable la w and will defend its position in court Ho w e v er the t ax resolu tions cause some uncert aint y and it ma y t ak e a lon g time until a fnal jud gment is made T o a v oid future challen g es of interes t deductions the Group adjus ted the capit alization of Securit as Spain in 2009 f or further information re gar din g the Spanish t ax audit refer to note 37 G erman y claim from Deutsche B ank Securit as in G erman y has set tled a dispute with Deutsche B ank concernin g a cert ain contr act mat ter from 2006 in v olvin g a Let ter of Comfort and has a greed to pa y the B ank an amount of m E u R 10 in return for a full release of all present and future claims The set tlement amount is co v ered b y pre viously recog niz ed pro visions and has been paid on Januar y 10 2013 Other signifcant e v ents after the balance sheet date There ha v e been no signifcant e v ents with efect on the fnancial reportin g after the balance sheet date e x cept for the acquisition lis ted abo v e Chan g e in Group M ana g ement L ucien M eeus has as of Augus t 8 2012 left his position as Divisional President m onitorin g and has also s tepped do wn from Securit as Group M ana g ement Erik Jan Jansen w as as of this date appointed Divisional President for both the divisions m obile and m onitorin g F rom Januar y 1 2013 the President and CEO of Securit as Alf G or ansson has assumed responsibilit y for the mer g er bet w een the Securit y Ser vices Europe and the M obile and M onitorin g business se gments the name of the business se gment is Securit y Ser vices Europe As of Januar y 1 2013 Erik Jan Jansen has been appointed C OO Chief Oper atin g Ofcer of Securit y Ser vices Europe and B art Adam has been appointed CF O Chief Financial Ofcer of Securit as 63 Securit as Annual R eport 2012 Annual R eport R eport of the Boar d of Director s