P ositiv e de v elopment in L atin America While Securit y Ser vices Ibero- America faced a problematic situation in Spain and Portugal in 2012 that w as har d to resolv e , the de v elopment in L atin America w as the complete opposite . Securit as is currently the mark et leader in se v er al countries in L atin America and has around 36 000 emplo y ees on a continent where the securit y mark ets will continue to gro w in 2013. In tot al, ho w e v er , sales in the business se gment Securit y Ser vices Ibero- America decreased from M SEK 9 097 in 2011 to M SEK 9 032 and the oper atin g mar g in from 6.0 percent to 5.1 percent . Durin g the fourth quarter e xtensiv e res tructurin g measures w ere implemented and almos t 400 emplo y ees w ere let g o , primarily in Spain. Inte gr ated securit y solutions The cour se of e v ents in the problematic mark ets demons tr ates ho w import ant it is that w e tog ether with our cus tomer s de v elop optimal, cos t -efectiv e securit y solutions that are suited to their bud g ets. The k e y is fndin g the rig ht balance bet w een what should be done b y securit y ofcer s on site and what can be done b y specially tr ained securit y ofcer s from a monitorin g center , and to what e xtent securit y ofcer s or technolog ical solutions should be used. Securit y companies that do not ha v e the abilit y , kno wled g e and ambition to solv e this equation will not sur viv e in the toug h compe - tition in an indus tr y that is s tron g ly char acteriz ed b y lo w v alue creation and hig h price tr ansparenc y . Securit as is usin g all of our po w er to mo v e up the v alue chain, from tr aditional guar din g to complete securit y solutions. Our s tr ate gy is to ofer complete securit y solu- tions that inte gr ate all of our areas of competence and result in impro v ed mar g ins, optimal solutions for our cus tomer s and s tron g er , more lon g -term cus tomer relationships. In our product portfolio , fre and safet y solutions are becomin g an increasin g ly import ant part of our selection of ser vices. W e currently ha v e around 7 000 emplo y ees w orkin g full-time in this area of Import ant fgures and e v ents durin g 2012 Sales, oper atin g mar g in and proposed dividend • T ot al sales M SEK 66  458 (64 057) • Or ganic sales gro wth 0 percent (3) • Oper atin g mar g in 4.6 percent (5.3) • Proposed dividend SEK 3.00 (3.00) Financial t ar g ets An av erage gro w th o f earning s per share o f 10 perc ent annually • Earnin g s per share 2012: SEK 3.32 (4.75) • Earnin g s per share adjus ted for items afectin g compar abilit y and impairment losses 2012: SEK 4.21 (4.75) F ree cash fo w t o ne t deb t o f at leas t 0.20 • F ree cash fo w to net debt 2012: 0.21 (0.08) Acquisitions • 6 ma jor acquisitions in mature and new mark ets, with 3 200 emplo y ees and es timated annual sales equiv alent to appro ximately M SEK 500: MPL Be v eilig in g sdiens ten (the Netherlands), Protect (Croatia), Chillida Sis temas de Se guridad (Spain), T r ailback (Ar g entina), P T En vironment al Indok ar y a (Indonesia), F eder al R es guar d (Ar g entina). Specializ ed guar din g W e t ailor our ser vices to indus tr y and cus tomer needs. Guar din g solutions W e add technology solutions to optimiz e our specializ ed guar din g concept . Securit y solutions W e add ser vices such as risk analysis and in v es tigations, that in combination with technology and specializ ed guar din g pro vide a hig h v alue inte gr ated solution. B asic guar din g 4 Securit as Annual R eport 2012 CEO s t atement