O PERA TING I NC O m E J AN u AR y – D ECE m BER M SEK 2012 2011 % Oper atin g income before amortization 3 085 3 385 -9 Currenc y chan g e from 2011 20 – Currenc y adjus ted oper atin g income before amortization 3 105 3 385 -8 Oper atin g income after amortization Oper atin g income after amortization w as M SEK 2 315 (2 973). Amortization and impairment of acquisition related int an g ible assets amounted to M SEK -297 (-218), of which impairment losses cons titutes M SEK -26. F or further information refer to the section Capit al emplo y ed and fnancin g. Acquisition related cos ts impacted the period b y M SEK -49 (-194), positiv ely afected b y re v aluation of deferred consider - ations mainly in the second half of the y ear . F or further informa - tion refer to note 11. Items afectin g compar abilit y w ere M SEK -424 (0), where M SEK -458 related to the cos t sa vin g s progr am in the Group and M SEK 34 related to re v er sal of pro visions. F or further information refer to note 11. Financial income and e xpenses Financial income and e xpenses amounted to M SEK -573 (-493). The fnance net has been ne gativ ely impacted b y the a v er a g e siz e of net debt durin g the y ear , as w ell as the early issue of t w o Eurobonds tot alin g ME UR 650 to beneft from fa v or able mark et conditions. This means that the Group in the short -term per spec- tiv e will increase interes t cos t until the m E u R 500 Eurobond loan matures in April 2013. Income before t ax es Income before t ax es w as M SEK 1 742 (2 480). The real chan g e w as -29 percent . T ax es, net income and earnin g s per share The Group ’ s t ax r ate w as 30.4 percent (29.9). The t ax r ate before non-deductible impairment losses and t ax on items afectin g compar abilit y w as 29.8 percent . Net income w as M SEK 1 212 (1 739). Earnin g s per share amounted to SEK 3.32 (4.75), a decrease of -30 percent com - pared to las t y ear . Adjus ted for the s tren g thenin g of the S w edish krona durin g 2012 the earnin g s per share decreased -29 percent in real terms o v er pre vious y ear . Adjus ted also for items afectin g compar abilit y and impairment losses earnin g s per share amounted to SEK 4.21 (4.75), which w as a decrease of -11 percent com - pared to 2011. C ONDENSED S T A TE m ENT O f I NC O m E A C C ORDING T O S EC u RIT AS ’ f INANCIAL m ODEL M SEK 2012 2011 T ot al sales 66 458.2 64 057.1 Organic sale s gro w th, % 0 3 Production e xpenses -55 360.0 -52 977.4 Gross income 11 098.2 11 079.7 Sellin g and adminis tr ativ e e xpenses -8 028.2 -7 766.9 Other oper atin g income 12.8 74.3 Share in income of associated companies 2.7 -2.4 Oper atin g income before amortization 3 085.5 3 384.7 Operating margin, % 4.6 5.3 Amortization and impairment of acquisition related int an g ible assets -297.1 -218.2 Acquisition related cos ts -49.5 -193.5 Items afectin g compar abilit y -424.3 – Oper atin g income after amortization 2 314.6 2 973.0 f inancial income and e xpenses -573.0 -493.0 Income before t ax es 1 741.6 2 480.0 T ax es -529.6 -741.4 Net income for the y ear 1 212.0 1 738.6 Securit as ’ fnancial model is described on pa g es 50–51. n n n Oper atin g items. n n n Net debt -related items. n n n G oodwill, t ax es and non-oper atin g items. n n n Items related to shareholder s ’ equit y . De v elopment in the Group ’ s business se gments Securit y Ser vices North America S ALE S AND INC O m E M SEK 2012 2011 T ot al sales 23 492 22 356 Organic sale s gro w th, % 1 4 Oper atin g income before amortization 1 157 1 270 Operating margin, % 4.9 5.7 Real change , % -12 2 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 (4) and w as hampered b y ne gativ e or ganic sales gro wth in feder al g o v ernment ser vices and P ink erton Corpor ate Risk M ana g ement . The loss of the lar g e contr act with an automotiv e cus tomer in the u .S . in the be g innin g of the y ear w as ofset b y the lar g e airport securit y contr act s t arted in Canada. The sales of specializ ed guar din g solutions as share of tot al sales amounted to 12 percent (7). The oper atin g mar g in w as 4.9 percent (5.7). Out of the decline -0.5 percent w as e xplained b y the de v elopment in feder al g o v ernment ser vices, where difculties in the inte gr ation process resulted in a ne gativ e oper atin g mar g in. Actions ha v e been t ak en to brin g feder al g o v ernment ser vices to a break -e v en oper atin g result in 2013. The de v elopment in P ink erton Corpor ate Risk M ana g ement had a ne gativ e impact on the oper atin g mar g in b y -0.1 percent . L as t y ear the oper atin g mar g in w as positiv ely impacted b y a set tlement in a client dispute of 0.1 percent . The S w edish krona e x chan g e r ate w eak ened v er sus the U .S . dollar and thus had a positiv 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 90 percent (91). The emplo y ee turno v er r ate in the U SA w as 48 percent (44). 58 Securit as Annual R eport 2012 Annual R eport R eport of the Boar d of Director s