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, % 4.1 3.9 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 4.1 percent (3.9). 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, % 10.0 12.0 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 10.0 percent (12.0). The oper atin g mar g in w as pressured b y -0.9 percent due to one-of 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, % 5.1 6.0 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 5.1 percent (6.0), 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