Loomis — Call Transcript 2026

Ladies and gentlemen, welcome to the Loomis extra call regarding the announcement acquisition of Hermes Transportes Blindados. I am George, the Call Operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by Q&A session. You can register for questions at any time by pressing star 1 on your telephone. For operator assistance, please press star 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead. Good morning, welcome to our call, where we will present the announced acquisition of Hermes Transportes Blindados. My name is Aritz Larrea, I am the President and CEO of Loomis. With me here today, I have our CFO, Johan Wilsby, and our Head of Investor Relations and Sustainability, Jenny Boström. It is great to see so many of you joining on short notice to hear us present our largest acquisition to date. Yesterday, we announced that we had entered a certain agreement with, among others, CVC Capital for their shares in Hermes, marking our entry into Peru. The transaction will be conducted through a public offer tender. Before I go into details of Hermes and the transaction itself, let me spend some time explaining why Peru is an attractive market for us. For many years, Loomis has operated in Argentina and Chile, and we have long explored different opportunities to expand our business in Latin America. As you know, this is one of the strategic priorities we presented at our Capital Markets Day in 2024. Among the countries we have been closely monitoring is Peru. I assume most of you are familiar with Peru, but let me provide some context. As shown on the map, Peru is located on the west coast of the continent and has a population of approximately 32 million people. It stands out as an attractive market due to its high and resilient level of cash usage, where cash continues to account for a majority of transactions, particularly when including the informal economy. Furthermore, the country has a solid macroeconomic environment and maintains an independent central bank. Peru is one of the fastest-growing economies in Latin America, supported by investment, exports, and prudent fiscal policy. It has a stable macroeconomic framework characterized by low public debt and a conservative fiscal management across multiple governments. In addition, Peru is one of the world's largest producers of silver and a major gold producer. It also ranks among the largest global exporters of copper. Finally, banking penetration remains relatively low, which has historically supported a high reliance on cash despite the growth of digital payments. Given these factors and favorable market conditions, Peru is an attractive country for a company such as Loomis looking to expand in Latin America. Let's turn on to the next slide to take a closer look at the company. We have now initiated the process to acquire Hermes, a company founded in 1985 and listed on the Lima Stock Exchange. The company brings more than 40 years of experience in secure logistics and risk management within Peru's financial system. It operates under the supervision of the Superintendency of Banking, Insurance, and Private Pension Fund Administrators. Hermes has built a leading market position with an estimated 50% market share and a diversified client base of approximately 1,000 customers across the country. It serves key sectors, including financial institutions, retail, mining, utilities, and government entities, acting as a critical partner to both private and public banks. Hermes is at the center of Peru's cash circulation system and plays a fundamental role in society. What does Hermes offer? In many ways, Hermes operates similarly to Loomis. The company provides secure transport, processing, and custody of cash and valuables. Its services also include ATM operations, cash collection, and the smart cash handling solutions that help automate processes and reduce risk. Beyond cash, Hermes delivers specialized secure logistics for industries such as mining, including the high-security transport of precious metals and other high-value minerals. Hermes operates a well-established nationwide platform of 19 branches with presence in most parts of the country. The company employs more than 3,200 professionals delivering its services every day and operates a stable fleet of purpose-built armored vehicles. In addition, it has begun expanding into Automated Solutions with an installed base of around 1,000 Smart Safes. Turning to the numbers, in 2025, the company reported revenues of approximately SEK 1.2 billion, further highlighting the strength, resilience, and maturity of the business. Overall, Hermes stands out as a trusted and strategically important partner to many of Peru's most significant organizations. I'm truly impressed by Hermes and its strong track record of growth, profitability, and innovation, and I look forward to continuing this journey together. Turning on to the next slide, Hermes operates across five business units, each focused on risk management solutions. These services support the financial, retail, government services, and mining sectors, and align closely with our own business lines and areas of expertise. The first is valuables logistics. Here, Hermes provides secure transportation of banknotes, coins, precious metals, jewelry, and other high-value assets. This also includes cash management services as well as ATM supply and maintenance, with more than 3,200 ATMs managed nationwide in 2025. Titan Light, also known as smart security, serves small and medium-sized retail businesses. It focuses on the collection, transport, processing, and storage of cash and valuables. Hermes has built a strong position among SMEs, an area that is also a key strategic growth priority for us at Loomis. Hermetic Ace is comparable to our Automated Solutions offering. It automates cash validation and accounting, enables real-time monitoring, and produces detailed reports to support operational control and financial close. Hermes also offers customized teller services and branch administration outsourcing, including the operation of bank branches and payment locations for, among others, financial institutions and utility companies. Finally, through specialized logistics, Hermes delivers tailored solutions such as national and local courier services, document processing, mail room management, and digital storage services. Let's move on to the next slide, where I will dive into the strategic rationale for this acquisition. This transaction marks a key milestone in our ambition to expand Loomis's presence in Latin America. With this acquisition, we increase our footprint in the region from two to three countries by entering Peru through a market-leading player, where we see both strong strategic fit and continued growth potential. Hermes's strong position among small and medium-sized businesses provides a solid platform to expand our Automated Solutions offering in Peru. The company already has an installed base of around 1,000 smart safes, giving us an excellent foundation to build on and to introduce Loomis's own cash-handling Automated Solutions under the Cima brand. This creates clear opportunities for both organic growth and cross-selling. In addition, we see meaningful opportunities to drive operational efficiencies over time. This includes areas such as procurement, where we can leverage our global scale in vehicles, equipment, and insurance, as well as implementation of best practices in routing, fleet utilization, and security protocols. These are proven levers within Loomis, and we see good potential to gradually enhance margins. We also see strong potential to grow within the mining sector. Hermes is already the dominant player in domestic secure transport of minerals across Peru. By combining this position with Loomis's international cross-border logistics and storage capabilities, we unlock opportunities to extend the offering beyond national borders and capture additional value in the supply chain. Another important opportunity lies in further digitalization. By introducing more advanced data analytics and cash flow visibility tools, we can enhance the value proposition to customers, improving efficiency, transparency, and integration with their broader financial operations. Finally, the acquisition supports Loomis's financial targets, contributing to both revenue growth and margin accretion. Hermes also demonstrates strong governance and is at the forefront of sustainability in its market, aligning well with Loomis's sustainability priorities and targets. Overall, this is a transaction where we combine a strong local platform with Loomis's global capabilities, creating a clear path for long-term value creation. Let's turn on to the next slide, where I would like to share a few personal reflections on why this is such a good fit between Loomis and Hermes. First, there's a strong cultural alignment. Both companies operate in environments where trust, security, and reliability are absolutely critical. In my discussions with the Hermes team, it is clear that they share our uncompromising focus on safety, operational excellence, and customer trust. That is not something you can easily replicate. It has to be embedded in the culture. Second, we see a high degree of similarity in the business model. Hermes has developed a platform that, in many ways, mirrors our own, combining cash-in-transit, cash management, and value-added services. This makes the integration more straightforward and allows us to accelerate value creation by sharing best practices across operations, technology, and commercial execution. Third, I have been particularly impressed by the quality of the local management team. They have built a market-leading position in a complex environment, which speaks to their capabilities and discipline. Our intention is very clear. We want to support and empower this team, combining their deep local expertise with Loomis's global scale and experience. Another important factor is our shared approach to governance and sustainability. Hermes operates with strong standards in both areas, which aligns well with Loomis's priorities and expectations as a global listed company. There's a strong alignment in how we view the future of the industry. Both companies recognize that while cash remains critical infrastructure, the market is evolving toward more technology-enabled and integrated solutions. This is an area where we see significant potential to grow together. With that, I would also like to say that I'm very pleased to welcome more than 3,200 Hermes employees to the Loomis family. Their expertise and dedication will be a key part of our continued success going forward. Turning on to the next slide and going through the transaction details. We have entered into a share tender agreement with CVC Capital Partners and other minority shareholders, representing 99.49% of the outstanding shares of Hermes. As part of these agreements, we intend to launch a public tender offer to acquire up to 100% of the company. While we aim to acquire all outstanding shares, the transaction is not contingent upon achieving full acceptance. The transaction values the business at an enterprise value of PEN 1,450 million, corresponding to an EV to adjusted EBITDA multiple of approximately 6.6x based on 2025 financials. The acquisition will be fully financed through debt with a committed bridge facility in place from our core banking group. From a financial perspective, net debt to EBITDA is expected to temporarily exceed 2x following the acquisition. However, this increase is short-term and leverage is expected to normalize within six months. We remain fully committed to maintaining our investment grade credit rating. Importantly, the transaction is expected to be immediately accretive to both operating profit and earnings per share. Moving on to the next slide, I want to show you the steps that are involved in this process. Here you can see a high-level timeline of the key steps involved in this transaction. As mentioned, Hermes is listed on the Lima Stock Exchange. To date, we have entered into a share tender offered agreement with shareholders representing 99.49% of the outstanding shares. The tender offer will be launched once certain customary conditions have been fulfilled, including change of control clauses. We expect the offer to commence during the second or third quarter of 2026. Once launched, the acceptance period will be around 30 days. Following completion of the tender offer, the business will be reported within our Europe and Latin America segment and consolidated into the group as of closing. Closing is expected to take place during the third quarter of 2026, shortly after the completion of the tender offer. No regulatory approvals are expected to be required to complete the transaction, and a potential delisting will be managed through a separate process following the successful completion of the acquisition. To sum up, this transaction represents a strategic milestone in the history of Loomis. With the acquisition of Hermes, we are entering Peru, one of the most attractive markets in Latin America, characterized by solid macroeconomic fundamentals, a growing economy, and a high and resilient level of cash usage. Hermes is the clear market leader with a strong track record of growth, profitability, and innovation, and a business model that aligns closely with our own. This acquisition strengthens our position in Latin America, expands our platform for future growth, and supports our long-term financial targets. Last but certainly not least, I'm very pleased to welcome more than 3,200 new colleagues to Loomis. Their expertise and dedication will be an important part of our continued success going forward. With that, I would like to open the call for questions. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star one at this time. Our first question comes from Dan Heimer with SEB. Please go ahead. Yes. Good morning, everyone. Interesting acquisition. A couple of questions from my side. Maybe starting a little bit on the mining exposure here. Is it possible to give any sense on how big it is in terms of sales? Also a little bit on how your international business can complement Hermes local mining logistics. I mean, do you think you can take over some of the transport, international transport or precious metals that, I guess, Hermes currently hands off to other partners? Thank you. Thank you for your question, Dan. Good morning. To start off, I would say that the mining services represent around 15%-20% of Hermes' revenue. As you know, as we're saying, what they take care of today is the domestic business going from the mining areas to the airport. We can fulfill that second leg, the international leg and offer a door-to-door solution to the customer. There's a great potential there, as you say. Okay, very interesting. Maybe a little bit on the EBITDA margin on Hermes. It already looks quite robust. I mean, usually you target margin expansion through adding technology, move up the value chain. How much can you do here in terms of the margin? Is the infrastructure already at peak efficiency, so to say, and the potential is more towards, I guess, growth synergies? Do you think there's cost synergies as well here? I would say that we have cost synergies as well. We need to look at the business. We already talked about international part of the mining services. You also need to consider the great opportunity we have with Automated Solutions coming from our Cima brand. That is a huge opportunity in Peru as well. Perfect. The final one from my side. I mean, it seems to look quite similar to your own operation, but in terms of CapEx, et cetera, is it also similar on that line given the EBITDA margin is quite high, but is it the same sort of bridge down to operating profit, or is this one more capital intensive compared to your operation? No, very similar to ours. All right. Perfect. All from my side. Thank you very much. Thank you, Dan. The next question comes from Simon Jönsson with ABG. Please go ahead. Thank you. Good morning, everyone, and congratulations on the transaction. Just first, a follow-up on the sales mix here. You said 15%-20% on mining. You also highlighted some exposure to Automated Solutions services. Can you maybe share a bit more what that share is currently of the group? Sorry? Share of Automated Solutions. I don't have the details now with me. What we've said is that they already have 1,000 machines, and there's a lot to explore in that sense in the Peru market, but I don't have all the details that you're asking for now. All right. Do you have any understanding on sort of the penetration in this market for automated solutions? Is it, you know, significantly less mature compared to Europe and North America, you would say? Yes. It's less mature for sure. Yeah. All right. On your market position, maybe it's a bit difficult to answer, but, around 50% market share, do you also see that there is more potential for bolt-ons in this country? Do you think now you're sort of taking what you can and will try to take market shares? Do you think that there is also bolt-on acquisition potential here? Not in this country, Simon. All right. Thank you. You know, In terms of your general presence here in Latin America now, do you think that with this it makes even more sense to be, you know, more aggressive in the other countries in Latin America on average? I mean, we already explained at our Capital Markets Day that this was gonna be one of our main focuses when growing the business in emerging markets. We keep exploring as we've been doing for the past years in adding new countries to this Latin America business line. All right. Just a final one on margins, and, you know, you talked a little bit about that you see even further margin potential here, but it is very high margins, of course. Can you just maybe explain a bit, you know, the reason behind that? You know, is it any specific category here where margins are very high, or is it just that, you know, margins in general are much higher, or is there anything for us to keep in mind here on the sales exposure and margin for different segments? When you look at Latin America, you see that margins are higher, but obviously the risk is higher as well. That's a normal thing in our business. I would say that aside from that, there's nothing else special in the Peruvian market. All right. Thanks. That's all for me. Thank you. As a reminder, if you wish to register for a question, you may press star and one. Our next question comes from Viktor Lindeberg with DNB. Please go ahead. Good morning. Thank you. Starting to look a bit in the rearview mirror, to my understanding, CVC has been the main owner the past five, six years, and curious to understand the business development under the control of CVC, what any transformation initiatives or business initiatives that have been taken here. Also I noticed that the head count is quite a bit lower today than it was when CVC acquired the company. It would be interesting to understand the business mix change or if the company is sort of shrinking to find a better and stronger position, or if that information was incorrect. Starting on that, and then a few more. Thank you. Morning, Viktor. I don't have all the details on what CVC has done with the company, but I can tell you that, more or less when you, when you see the past years, it has remained flat. I haven't seen any big transformation being done by CVC. Probably they have been working on efficiency as we are, and that means reducing headcount while keep growing the business. No other specifics there. All right. I noticed Peru has a bit higher corruption index when looking at this world map. I know you have been very much investing in compliance on group level, but also locally, and just to see what you see in terms of business counterpart risks here, and if that's something you need to review given your strict focus on compliance and this being a new market for you further out on the risk curve. In that sense, we are aware of the general corruption risks in Peru as well as in other South American countries. We obviously have done a full due diligence, and it indicated that the company has strict protocols in place. Yes, we have had an extensive due diligence process, including legal, compliance, labor, payroll, finance, tax, IT operations, and insurance. But what we see is that Hermes is committed to ensuring compliance with the regulations governing these operations and has a strong regulatory compliance program in place. There are no business areas within Hermes that you foresee that you might leave behind or focus less on. No. Going forward? No. No. Not at all. No. Okay, that's good. Final housekeeping question. Transaction cost, assuming this approval and tendering will follow through, what kind of integration cost, transaction cost should be expected on the back of this? No material costs are expected for that part of the process. Obviously we've been working for a number of months of that already, but those kind of M&A related costs we've already assuming in the P&L. Okay. Thank you. Thanks. Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Larrea for any closing remarks. Thank you all for listening in such short notice, and please reach out if you have any questions. We're very excited with the time ahead with this acquisition. Thank you very much. Bye-bye. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Speaker 3: Ladies and gentlemen, welcome to the Loomis extra call regarding the announcement acquisition of Hermes Transportes Blindados. I am George, the Call Operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by Q&A session. You can register for questions at any time by pressing star 1 on your telephone. For operator assistance, please press star 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead. Ladies and gentlemen, welcome to the Loomis extra call regarding the announcement acquisition of Hermes Transportes Blindados. ladies and gentlemen welcome to the loomis extra call regarding the announcement acquisition of hermes transportes blindados I am George, the Call Operator. i am george the call operator I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. i would like to remind you that all participants will be in listen-only mode and the conference is being recorded The presentation will be followed by Q&A session. the presentation will be followed by q&a session You can register for questions at any time by pressing star 1 on your telephone. you can register for questions at any time by pressing star 1 on your telephone For operator assistance, please press star 0. for operator assistance please press star 0 The conference must not be recorded for publication or broadcast. the conference must not be recorded for publication or broadcast At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. at this time it's my pleasure to hand over to aritz larrea president and ceo Please go ahead. please go ahead

Speaker 1: Good morning, welcome to our call, where we will present the announced acquisition of Hermes Transportes Blindados. My name is Aritz Larrea, I am the President and CEO of Loomis. With me here today, I have our CFO, Johan Wilsby, and our Head of Investor Relations and Sustainability, Jenny Boström. It is great to see so many of you joining on short notice to hear us present our largest acquisition to date. Yesterday, we announced that we had entered a certain agreement with, among others, CVC Capital for their shares in Hermes, marking our entry into Peru. The transaction will be conducted through a public offer tender. Before I go into details of Hermes and the transaction itself, let me spend some time explaining why Peru is an attractive market for us. Good morning, welcome to our call, where we will present the announced acquisition of Hermes Transportes Blindados. good morning welcome to our call where we will present the announced acquisition of hermes transportes blindados My name is Aritz Larrea, I am the President and CEO of Loomis. my name is aritz larrea i am the president and ceo of loomis With me here today, I have our CFO, Johan Wilsby, and our Head of Investor Relations and Sustainability, Jenny Boström. with me here today i have our cfo johan wilsby and our head of investor relations and sustainability jenny boström It is great to see so many of you joining on short notice to hear us present our largest acquisition to date. it is great to see so many of you joining on short notice to hear us present our largest acquisition to date Yesterday, we announced that we had entered a certain agreement with, among others, CVC Capital for their shares in Hermes, marking our entry into Peru. yesterday we announced that we had entered a certain agreement with among others cvc capital for their shares in hermes marking our entry into peru The transaction will be conducted through a public offer tender. the transaction will be conducted through a public offer tender Before I go into details of Hermes and the transaction itself, let me spend some time explaining why Peru is an attractive market for us. before i go into details of hermes and the transaction itself let me spend some time explaining why peru is an attractive market for us For many years, Loomis has operated in Argentina and Chile, and we have long explored different opportunities to expand our business in Latin America. As you know, this is one of the strategic priorities we presented at our Capital Markets Day in 2024. Among the countries we have been closely monitoring is Peru. I assume most of you are familiar with Peru, but let me provide some context. As shown on the map, Peru is located on the west coast of the continent and has a population of approximately 32 million people. It stands out as an attractive market due to its high and resilient level of cash usage, where cash continues to account for a majority of transactions, particularly when including the informal economy. Furthermore, the country has a solid macroeconomic environment and maintains an independent central bank. For many years, Loomis has operated in Argentina and Chile, and we have long explored different opportunities to expand our business in Latin America. for many years loomis has operated in argentina and chile and we have long explored different opportunities to expand our business in latin america As you know, this is one of the strategic priorities we presented at our Capital Markets Day in 2024. as you know this is one of the strategic priorities we presented at our capital markets day in 2024 Among the countries we have been closely monitoring is Peru. among the countries we have been closely monitoring is peru I assume most of you are familiar with Peru, but let me provide some context. i assume most of you are familiar with peru but let me provide some context As shown on the map, Peru is located on the west coast of the continent and has a population of approximately 32 million people. as shown on the map peru is located on the west coast of the continent and has a population of approximately 32 million people It stands out as an attractive market due to its high and resilient level of cash usage, where cash continues to account for a majority of transactions, particularly when including the informal economy. it stands out as an attractive market due to its high and resilient level of cash usage where cash continues to account for a majority of transactions particularly when including the informal economy Furthermore, the country has a solid macroeconomic environment and maintains an independent central bank. furthermore the country has a solid macroeconomic environment and maintains an independent central bank Peru is one of the fastest-growing economies in Latin America, supported by investment, exports, and prudent fiscal policy. It has a stable macroeconomic framework characterized by low public debt and a conservative fiscal management across multiple governments. In addition, Peru is one of the world's largest producers of silver and a major gold producer. It also ranks among the largest global exporters of copper. Finally, banking penetration remains relatively low, which has historically supported a high reliance on cash despite the growth of digital payments. Given these factors and favorable market conditions, Peru is an attractive country for a company such as Loomis looking to expand in Latin America. Let's turn on to the next slide to take a closer look at the company. We have now initiated the process to acquire Hermes, a company founded in 1985 and listed on the Lima Stock Exchange. Peru is one of the fastest-growing economies in Latin America, supported by investment, exports, and prudent fiscal policy. peru is one of the fastest-growing economies in latin america supported by investment exports and prudent fiscal policy It has a stable macroeconomic framework characterized by low public debt and a conservative fiscal management across multiple governments. it has a stable macroeconomic framework characterized by low public debt and a conservative fiscal management across multiple governments In addition, Peru is one of the world's largest producers of silver and a major gold producer. in addition peru is one of the world's largest producers of silver and a major gold producer It also ranks among the largest global exporters of copper. it also ranks among the largest global exporters of copper Finally, banking penetration remains relatively low, which has historically supported a high reliance on cash despite the growth of digital payments. finally banking penetration remains relatively low which has historically supported a high reliance on cash despite the growth of digital payments Given these factors and favorable market conditions, Peru is an attractive country for a company such as Loomis looking to expand in Latin America. given these factors and favorable market conditions peru is an attractive country for a company such as loomis looking to expand in latin america Let's turn on to the next slide to take a closer look at the company. let's turn on to the next slide to take a closer look at the company We have now initiated the process to acquire Hermes, a company founded in 1985 and listed on the Lima Stock Exchange. we have now initiated the process to acquire hermes a company founded in 1985 and listed on the lima stock exchange The company brings more than 40 years of experience in secure logistics and risk management within Peru's financial system. It operates under the supervision of the Superintendency of Banking, Insurance, and Private Pension Fund Administrators. Hermes has built a leading market position with an estimated 50% market share and a diversified client base of approximately 1,000 customers across the country. It serves key sectors, including financial institutions, retail, mining, utilities, and government entities, acting as a critical partner to both private and public banks. Hermes is at the center of Peru's cash circulation system and plays a fundamental role in society. What does Hermes offer? In many ways, Hermes operates similarly to Loomis. The company provides secure transport, processing, and custody of cash and valuables. Its services also include ATM operations, cash collection, and the smart cash handling solutions that help automate processes and reduce risk. The company brings more than 40 years of experience in secure logistics and risk management within Peru's financial system. the company brings more than 40 years of experience in secure logistics and risk management within peru's financial system It operates under the supervision of the Superintendency of Banking, Insurance, and Private Pension Fund Administrators. it operates under the supervision of the superintendency of banking insurance and private pension fund administrators Hermes has built a leading market position with an estimated 50% market share and a diversified client base of approximately 1,000 customers across the country. hermes has built a leading market position with an estimated 50% market share and a diversified client base of approximately 1,000 customers across the country It serves key sectors, including financial institutions, retail, mining, utilities, and government entities, acting as a critical partner to both private and public banks. it serves key sectors including financial institutions retail mining utilities and government entities acting as a critical partner to both private and public banks Hermes is at the center of Peru's cash circulation system and plays a fundamental role in society. hermes is at the center of peru's cash circulation system and plays a fundamental role in society What does Hermes offer? what does hermes offer In many ways, Hermes operates similarly to Loomis. in many ways hermes operates similarly to loomis The company provides secure transport, processing, and custody of cash and valuables. the company provides secure transport processing and custody of cash and valuables Its services also include ATM operations, cash collection, and the smart cash handling solutions that help automate processes and reduce risk. its services also include atm operations cash collection and the smart cash handling solutions that help automate processes and reduce risk Beyond cash, Hermes delivers specialized secure logistics for industries such as mining, including the high-security transport of precious metals and other high-value minerals. Hermes operates a well-established nationwide platform of 19 branches with presence in most parts of the country. The company employs more than 3,200 professionals delivering its services every day and operates a stable fleet of purpose-built armored vehicles. In addition, it has begun expanding into Automated Solutions with an installed base of around 1,000 Smart Safes. Turning to the numbers, in 2025, the company reported revenues of approximately SEK 1.2 billion, further highlighting the strength, resilience, and maturity of the business. Overall, Hermes stands out as a trusted and strategically important partner to many of Peru's most significant organizations. Beyond cash, Hermes delivers specialized secure logistics for industries such as mining, including the high-security transport of precious metals and other high-value minerals. beyond cash hermes delivers specialized secure logistics for industries such as mining including the high-security transport of precious metals and other high-value minerals Hermes operates a well-established nationwide platform of 19 branches with presence in most parts of the country. hermes operates a well-established nationwide platform of 19 branches with presence in most parts of the country The company employs more than 3,200 professionals delivering its services every day and operates a stable fleet of purpose-built armored vehicles. the company employs more than 3,200 professionals delivering its services every day and operates a stable fleet of purpose-built armored vehicles In addition, it has begun expanding into Automated Solutions with an installed base of around 1,000 Smart Safes. in addition it has begun expanding into automated solutions with an installed base of around 1,000 smart safes Turning to the numbers, in 2025, the company reported revenues of approximately SEK 1.2 billion, further highlighting the strength, resilience, and maturity of the business. turning to the numbers in 2025 the company reported revenues of approximately sek 1.2 billion further highlighting the strength resilience and maturity of the business Overall, Hermes stands out as a trusted and strategically important partner to many of Peru's most significant organizations. overall hermes stands out as a trusted and strategically important partner to many of peru's most significant organizations I'm truly impressed by Hermes and its strong track record of growth, profitability, and innovation, and I look forward to continuing this journey together. Turning on to the next slide, Hermes operates across five business units, each focused on risk management solutions. These services support the financial, retail, government services, and mining sectors, and align closely with our own business lines and areas of expertise. The first is valuables logistics. Here, Hermes provides secure transportation of banknotes, coins, precious metals, jewelry, and other high-value assets. This also includes cash management services as well as ATM supply and maintenance, with more than 3,200 ATMs managed nationwide in 2025. Titan Light, also known as smart security, serves small and medium-sized retail businesses. It focuses on the collection, transport, processing, and storage of cash and valuables. I'm truly impressed by Hermes and its strong track record of growth, profitability, and innovation, and I look forward to continuing this journey together. i'm truly impressed by hermes and its strong track record of growth profitability and innovation and i look forward to continuing this journey together Turning on to the next slide, Hermes operates across five business units, each focused on risk management solutions. turning on to the next slide hermes operates across five business units each focused on risk management solutions These services support the financial, retail, government services, and mining sectors, and align closely with our own business lines and areas of expertise. The first is valuables logistics. these services support the financial retail government services and mining sectors and align closely with our own business lines and areas of expertise. the first is valuables logistics Here, Hermes provides secure transportation of banknotes, coins, precious metals, jewelry, and other high-value assets. here hermes provides secure transportation of banknotes coins precious metals jewelry and other high-value assets This also includes cash management services as well as ATM supply and maintenance, with more than 3,200 ATMs managed nationwide in 2025. this also includes cash management services as well as atm supply and maintenance with more than 3,200 atms managed nationwide in 2025 Titan Light, also known as smart security, serves small and medium-sized retail businesses. titan light also known as smart security serves small and medium-sized retail businesses It focuses on the collection, transport, processing, and storage of cash and valuables. it focuses on the collection transport processing and storage of cash and valuables Hermes has built a strong position among SMEs, an area that is also a key strategic growth priority for us at Loomis. Hermetic Ace is comparable to our Automated Solutions offering. It automates cash validation and accounting, enables real-time monitoring, and produces detailed reports to support operational control and financial close. Hermes also offers customized teller services and branch administration outsourcing, including the operation of bank branches and payment locations for, among others, financial institutions and utility companies. Finally, through specialized logistics, Hermes delivers tailored solutions such as national and local courier services, document processing, mail room management, and digital storage services. Let's move on to the next slide, where I will dive into the strategic rationale for this acquisition. This transaction marks a key milestone in our ambition to expand Loomis's presence in Latin America. Hermes has built a strong position among SMEs, an area that is also a key strategic growth priority for us at Loomis. hermes has built a strong position among smes an area that is also a key strategic growth priority for us at loomis Hermetic Ace is comparable to our Automated Solutions offering. hermetic ace is comparable to our automated solutions offering It automates cash validation and accounting, enables real-time monitoring, and produces detailed reports to support operational control and financial close. it automates cash validation and accounting enables real-time monitoring and produces detailed reports to support operational control and financial close Hermes also offers customized teller services and branch administration outsourcing, including the operation of bank branches and payment locations for, among others, financial institutions and utility companies. hermes also offers customized teller services and branch administration outsourcing including the operation of bank branches and payment locations for among others financial institutions and utility companies Finally, through specialized logistics, Hermes delivers tailored solutions such as national and local courier services, document processing, mail room management, and digital storage services. finally through specialized logistics hermes delivers tailored solutions such as national and local courier services document processing mail room management and digital storage services Let's move on to the next slide, where I will dive into the strategic rationale for this acquisition. let's move on to the next slide where i will dive into the strategic rationale for this acquisition This transaction marks a key milestone in our ambition to expand Loomis's presence in Latin America. this transaction marks a key milestone in our ambition to expand loomis's presence in latin america With this acquisition, we increase our footprint in the region from two to three countries by entering Peru through a market-leading player, where we see both strong strategic fit and continued growth potential. Hermes's strong position among small and medium-sized businesses provides a solid platform to expand our Automated Solutions offering in Peru. The company already has an installed base of around 1,000 smart safes, giving us an excellent foundation to build on and to introduce Loomis's own cash-handling Automated Solutions under the Cima brand. This creates clear opportunities for both organic growth and cross-selling. In addition, we see meaningful opportunities to drive operational efficiencies over time. This includes areas such as procurement, where we can leverage our global scale in vehicles, equipment, and insurance, as well as implementation of best practices in routing, fleet utilization, and security protocols. With this acquisition, we increase our footprint in the region from two to three countries by entering Peru through a market-leading player, where we see both strong strategic fit and continued growth potential. with this acquisition we increase our footprint in the region from two to three countries by entering peru through a market-leading player where we see both strong strategic fit and continued growth potential Hermes's strong position among small and medium-sized businesses provides a solid platform to expand our Automated Solutions offering in Peru. hermes's strong position among small and medium-sized businesses provides a solid platform to expand our automated solutions offering in peru The company already has an installed base of around 1,000 smart safes, giving us an excellent foundation to build on and to introduce Loomis's own cash-handling Automated Solutions under the Cima brand. the company already has an installed base of around 1,000 smart safes giving us an excellent foundation to build on and to introduce loomis's own cash-handling automated solutions under the cima brand This creates clear opportunities for both organic growth and cross-selling. this creates clear opportunities for both organic growth and cross-selling In addition, we see meaningful opportunities to drive operational efficiencies over time. in addition we see meaningful opportunities to drive operational efficiencies over time This includes areas such as procurement, where we can leverage our global scale in vehicles, equipment, and insurance, as well as implementation of best practices in routing, fleet utilization, and security protocols. this includes areas such as procurement where we can leverage our global scale in vehicles equipment and insurance as well as implementation of best practices in routing fleet utilization and security protocols These are proven levers within Loomis, and we see good potential to gradually enhance margins. We also see strong potential to grow within the mining sector. Hermes is already the dominant player in domestic secure transport of minerals across Peru. By combining this position with Loomis's international cross-border logistics and storage capabilities, we unlock opportunities to extend the offering beyond national borders and capture additional value in the supply chain. Another important opportunity lies in further digitalization. By introducing more advanced data analytics and cash flow visibility tools, we can enhance the value proposition to customers, improving efficiency, transparency, and integration with their broader financial operations. Finally, the acquisition supports Loomis's financial targets, contributing to both revenue growth and margin accretion. Hermes also demonstrates strong governance and is at the forefront of sustainability in its market, aligning well with Loomis's sustainability priorities and targets. These are proven levers within Loomis, and we see good potential to gradually enhance margins. these are proven levers within loomis and we see good potential to gradually enhance margins We also see strong potential to grow within the mining sector. we also see strong potential to grow within the mining sector Hermes is already the dominant player in domestic secure transport of minerals across Peru. hermes is already the dominant player in domestic secure transport of minerals across peru By combining this position with Loomis's international cross-border logistics and storage capabilities, we unlock opportunities to extend the offering beyond national borders and capture additional value in the supply chain. by combining this position with loomis's international cross-border logistics and storage capabilities we unlock opportunities to extend the offering beyond national borders and capture additional value in the supply chain Another important opportunity lies in further digitalization. another important opportunity lies in further digitalization By introducing more advanced data analytics and cash flow visibility tools, we can enhance the value proposition to customers, improving efficiency, transparency, and integration with their broader financial operations. by introducing more advanced data analytics and cash flow visibility tools we can enhance the value proposition to customers improving efficiency transparency and integration with their broader financial operations Finally, the acquisition supports Loomis's financial targets, contributing to both revenue growth and margin accretion. finally the acquisition supports loomis's financial targets contributing to both revenue growth and margin accretion Hermes also demonstrates strong governance and is at the forefront of sustainability in its market, aligning well with Loomis's sustainability priorities and targets. hermes also demonstrates strong governance and is at the forefront of sustainability in its market aligning well with loomis's sustainability priorities and targets Overall, this is a transaction where we combine a strong local platform with Loomis's global capabilities, creating a clear path for long-term value creation. Let's turn on to the next slide, where I would like to share a few personal reflections on why this is such a good fit between Loomis and Hermes. First, there's a strong cultural alignment. Both companies operate in environments where trust, security, and reliability are absolutely critical. In my discussions with the Hermes team, it is clear that they share our uncompromising focus on safety, operational excellence, and customer trust. That is not something you can easily replicate. It has to be embedded in the culture. Second, we see a high degree of similarity in the business model. Hermes has developed a platform that, in many ways, mirrors our own, combining cash-in-transit, cash management, and value-added services. Overall, this is a transaction where we combine a strong local platform with Loomis's global capabilities, creating a clear path for long-term value creation. overall this is a transaction where we combine a strong local platform with loomis's global capabilities creating a clear path for long-term value creation Let's turn on to the next slide, where I would like to share a few personal reflections on why this is such a good fit between Loomis and Hermes. let's turn on to the next slide where i would like to share a few personal reflections on why this is such a good fit between loomis and hermes First, there's a strong cultural alignment. first there's a strong cultural alignment Both companies operate in environments where trust, security, and reliability are absolutely critical. both companies operate in environments where trust security and reliability are absolutely critical In my discussions with the Hermes team, it is clear that they share our uncompromising focus on safety, operational excellence, and customer trust. in my discussions with the hermes team it is clear that they share our uncompromising focus on safety operational excellence and customer trust That is not something you can easily replicate. that is not something you can easily replicate It has to be embedded in the culture. it has to be embedded in the culture Second, we see a high degree of similarity in the business model. second we see a high degree of similarity in the business model Hermes has developed a platform that, in many ways, mirrors our own, combining cash-in-transit, cash management, and value-added services. hermes has developed a platform that in many ways mirrors our own combining cash-in-transit cash management and value-added services This makes the integration more straightforward and allows us to accelerate value creation by sharing best practices across operations, technology, and commercial execution. Third, I have been particularly impressed by the quality of the local management team. They have built a market-leading position in a complex environment, which speaks to their capabilities and discipline. Our intention is very clear. We want to support and empower this team, combining their deep local expertise with Loomis's global scale and experience. Another important factor is our shared approach to governance and sustainability. Hermes operates with strong standards in both areas, which aligns well with Loomis's priorities and expectations as a global listed company. There's a strong alignment in how we view the future of the industry. Both companies recognize that while cash remains critical infrastructure, the market is evolving toward more technology-enabled and integrated solutions. This makes the integration more straightforward and allows us to accelerate value creation by sharing best practices across operations, technology, and commercial execution. this makes the integration more straightforward and allows us to accelerate value creation by sharing best practices across operations technology and commercial execution Third, I have been particularly impressed by the quality of the local management team. third i have been particularly impressed by the quality of the local management team They have built a market-leading position in a complex environment, which speaks to their capabilities and discipline. they have built a market-leading position in a complex environment which speaks to their capabilities and discipline Our intention is very clear. our intention is very clear We want to support and empower this team, combining their deep local expertise with Loomis's global scale and experience. we want to support and empower this team combining their deep local expertise with loomis's global scale and experience Another important factor is our shared approach to governance and sustainability. another important factor is our shared approach to governance and sustainability Hermes operates with strong standards in both areas, which aligns well with Loomis's priorities and expectations as a global listed company. hermes operates with strong standards in both areas which aligns well with loomis's priorities and expectations as a global listed company There's a strong alignment in how we view the future of the industry. there's a strong alignment in how we view the future of the industry Both companies recognize that while cash remains critical infrastructure, the market is evolving toward more technology-enabled and integrated solutions. both companies recognize that while cash remains critical infrastructure the market is evolving toward more technology-enabled and integrated solutions This is an area where we see significant potential to grow together. With that, I would also like to say that I'm very pleased to welcome more than 3,200 Hermes employees to the Loomis family. Their expertise and dedication will be a key part of our continued success going forward. Turning on to the next slide and going through the transaction details. We have entered into a share tender agreement with CVC Capital Partners and other minority shareholders, representing 99.49% of the outstanding shares of Hermes. As part of these agreements, we intend to launch a public tender offer to acquire up to 100% of the company. While we aim to acquire all outstanding shares, the transaction is not contingent upon achieving full acceptance. This is an area where we see significant potential to grow together. this is an area where we see significant potential to grow together With that, I would also like to say that I'm very pleased to welcome more than 3,200 Hermes employees to the Loomis family. with that i would also like to say that i'm very pleased to welcome more than 3,200 hermes employees to the loomis family Their expertise and dedication will be a key part of our continued success going forward. Turning on to the next slide and going through the transaction details. their expertise and dedication will be a key part of our continued success going forward. turning on to the next slide and going through the transaction details We have entered into a share tender agreement with CVC Capital Partners and other minority shareholders, representing 99.49% of the outstanding shares of Hermes. we have entered into a share tender agreement with cvc capital partners and other minority shareholders representing 99.49% of the outstanding shares of hermes As part of these agreements, we intend to launch a public tender offer to acquire up to 100% of the company. as part of these agreements we intend to launch a public tender offer to acquire up to 100% of the company While we aim to acquire all outstanding shares, the transaction is not contingent upon achieving full acceptance. while we aim to acquire all outstanding shares the transaction is not contingent upon achieving full acceptance The transaction values the business at an enterprise value of PEN 1,450 million, corresponding to an EV to adjusted EBITDA multiple of approximately 6.6x based on 2025 financials. The acquisition will be fully financed through debt with a committed bridge facility in place from our core banking group. From a financial perspective, net debt to EBITDA is expected to temporarily exceed 2x following the acquisition. However, this increase is short-term and leverage is expected to normalize within six months. We remain fully committed to maintaining our investment grade credit rating. Importantly, the transaction is expected to be immediately accretive to both operating profit and earnings per share. Moving on to the next slide, I want to show you the steps that are involved in this process. The transaction values the business at an enterprise value of PEN 1,450 million, corresponding to an EV to adjusted EBITDA multiple of approximately 6.6x based on 2025 financials. the transaction values the business at an enterprise value of pen 1,450 million corresponding to an ev to adjusted ebitda multiple of approximately 6.6x based on 2025 financials The acquisition will be fully financed through debt with a committed bridge facility in place from our core banking group. the acquisition will be fully financed through debt with a committed bridge facility in place from our core banking group From a financial perspective, net debt to EBITDA is expected to temporarily exceed 2x following the acquisition. from a financial perspective net debt to ebitda is expected to temporarily exceed 2x following the acquisition However, this increase is short-term and leverage is expected to normalize within six months. however this increase is short-term and leverage is expected to normalize within six months We remain fully committed to maintaining our investment grade credit rating. we remain fully committed to maintaining our investment grade credit rating Importantly, the transaction is expected to be immediately accretive to both operating profit and earnings per share. importantly the transaction is expected to be immediately accretive to both operating profit and earnings per share Moving on to the next slide, I want to show you the steps that are involved in this process. moving on to the next slide i want to show you the steps that are involved in this process Here you can see a high-level timeline of the key steps involved in this transaction. As mentioned, Hermes is listed on the Lima Stock Exchange. To date, we have entered into a share tender offered agreement with shareholders representing 99.49% of the outstanding shares. The tender offer will be launched once certain customary conditions have been fulfilled, including change of control clauses. We expect the offer to commence during the second or third quarter of 2026. Once launched, the acceptance period will be around 30 days. Following completion of the tender offer, the business will be reported within our Europe and Latin America segment and consolidated into the group as of closing. Closing is expected to take place during the third quarter of 2026, shortly after the completion of the tender offer. Here you can see a high-level timeline of the key steps involved in this transaction. here you can see a high-level timeline of the key steps involved in this transaction As mentioned, Hermes is listed on the Lima Stock Exchange. as mentioned hermes is listed on the lima stock exchange To date, we have entered into a share tender offered agreement with shareholders representing 99.49% of the outstanding shares. to date we have entered into a share tender offered agreement with shareholders representing 99.49% of the outstanding shares The tender offer will be launched once certain customary conditions have been fulfilled, including change of control clauses. the tender offer will be launched once certain customary conditions have been fulfilled including change of control clauses We expect the offer to commence during the second or third quarter of 2026. we expect the offer to commence during the second or third quarter of 2026 Once launched, the acceptance period will be around 30 days. once launched the acceptance period will be around 30 days Following completion of the tender offer, the business will be reported within our Europe and Latin America segment and consolidated into the group as of closing. following completion of the tender offer the business will be reported within our europe and latin america segment and consolidated into the group as of closing Closing is expected to take place during the third quarter of 2026, shortly after the completion of the tender offer. closing is expected to take place during the third quarter of 2026 shortly after the completion of the tender offer No regulatory approvals are expected to be required to complete the transaction, and a potential delisting will be managed through a separate process following the successful completion of the acquisition. To sum up, this transaction represents a strategic milestone in the history of Loomis. With the acquisition of Hermes, we are entering Peru, one of the most attractive markets in Latin America, characterized by solid macroeconomic fundamentals, a growing economy, and a high and resilient level of cash usage. Hermes is the clear market leader with a strong track record of growth, profitability, and innovation, and a business model that aligns closely with our own. This acquisition strengthens our position in Latin America, expands our platform for future growth, and supports our long-term financial targets. Last but certainly not least, I'm very pleased to welcome more than 3,200 new colleagues to Loomis. No regulatory approvals are expected to be required to complete the transaction, and a potential delisting will be managed through a separate process following the successful completion of the acquisition. no regulatory approvals are expected to be required to complete the transaction and a potential delisting will be managed through a separate process following the successful completion of the acquisition To sum up, this transaction represents a strategic milestone in the history of Loomis. to sum up this transaction represents a strategic milestone in the history of loomis With the acquisition of Hermes, we are entering Peru, one of the most attractive markets in Latin America, characterized by solid macroeconomic fundamentals, a growing economy, and a high and resilient level of cash usage. with the acquisition of hermes we are entering peru one of the most attractive markets in latin america characterized by solid macroeconomic fundamentals a growing economy and a high and resilient level of cash usage Hermes is the clear market leader with a strong track record of growth, profitability, and innovation, and a business model that aligns closely with our own. hermes is the clear market leader with a strong track record of growth profitability and innovation and a business model that aligns closely with our own This acquisition strengthens our position in Latin America, expands our platform for future growth, and supports our long-term financial targets. this acquisition strengthens our position in latin america expands our platform for future growth and supports our long-term financial targets Last but certainly not least, I'm very pleased to welcome more than 3,200 new colleagues to Loomis. last but certainly not least i'm very pleased to welcome more than 3,200 new colleagues to loomis Their expertise and dedication will be an important part of our continued success going forward. With that, I would like to open the call for questions. Their expertise and dedication will be an important part of our continued success going forward. their expertise and dedication will be an important part of our continued success going forward With that, I would like to open the call for questions. with that i would like to open the call for questions

Speaker 3: We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star one at this time. Our first question comes from Dan Heimer with SEB. Please go ahead. We will now begin the question and answer session. we will now begin the question and answer session Anyone who wishes to ask a question may press star one on their telephone. anyone who wishes to ask a question may press star one on their telephone You will hear a tone to confirm that you have entered the queue. you will hear a tone to confirm that you have entered the queue If you wish to remove yourself from the question queue, you may press star two. if you wish to remove yourself from the question queue you may press star two Questioners on the phone are requested to disable the loudspeaker mode while asking a question. questioners on the phone are requested to disable the loudspeaker mode while asking a question Anyone who has a question may press star one at this time. anyone who has a question may press star one at this time Our first question comes from Dan Heimer with SEB. our first question comes from dan heimer with seb Please go ahead. please go ahead

Speaker 2: Yes. Good morning, everyone. Interesting acquisition. A couple of questions from my side. Maybe starting a little bit on the mining exposure here. Is it possible to give any sense on how big it is in terms of sales? Also a little bit on how your international business can complement Hermes local mining logistics. I mean, do you think you can take over some of the transport, international transport or precious metals that, I guess, Hermes currently hands off to other partners? Thank you. Yes. yes Good morning, everyone. good morning everyone Interesting acquisition. interesting acquisition A couple of questions from my side. a couple of questions from my side Maybe starting a little bit on the mining exposure here. maybe starting a little bit on the mining exposure here Is it possible to give any sense on how big it is in terms of sales? is it possible to give any sense on how big it is in terms of sales Also a little bit on how your international business can complement Hermes local mining logistics. also a little bit on how your international business can complement hermes local mining logistics I mean, do you think you can take over some of the transport, international transport or precious metals that, I guess, Hermes currently hands off to other partners? i mean do you think you can take over some of the transport international transport or precious metals that i guess hermes currently hands off to other partners Thank you. thank you

Speaker 1: Thank you for your question, Dan. Good morning. To start off, I would say that the mining services represent around 15%-20% of Hermes' revenue. As you know, as we're saying, what they take care of today is the domestic business going from the mining areas to the airport. We can fulfill that second leg, the international leg and offer a door-to-door solution to the customer. There's a great potential there, as you say. Thank you for your question, Dan. thank you for your question dan Good morning. good morning To start off, I would say that the mining services represent around 15%-20% of Hermes' revenue. to start off i would say that the mining services represent around 15%-20% of hermes' revenue As you know, as we're saying, what they take care of today is the domestic business going from the mining areas to the airport. as you know as we're saying what they take care of today is the domestic business going from the mining areas to the airport We can fulfill that second leg, the international leg and offer a door-to-door solution to the customer. we can fulfill that second leg the international leg and offer a door-to-door solution to the customer There's a great potential there, as you say. there's a great potential there as you say

Speaker 2: Okay, very interesting. Maybe a little bit on the EBITDA margin on Hermes. It already looks quite robust. I mean, usually you target margin expansion through adding technology, move up the value chain. How much can you do here in terms of the margin? Is the infrastructure already at peak efficiency, so to say, and the potential is more towards, I guess, growth synergies? Do you think there's cost synergies as well here? Okay, very interesting. okay very interesting Maybe a little bit on the EBITDA margin on Hermes. maybe a little bit on the ebitda margin on hermes It already looks quite robust. it already looks quite robust I mean, usually you target margin expansion through adding technology, move up the value chain. i mean usually you target margin expansion through adding technology move up the value chain How much can you do here in terms of the margin? how much can you do here in terms of the margin Is the infrastructure already at peak efficiency, so to say, and the potential is more towards, I guess, growth synergies? is the infrastructure already at peak efficiency so to say and the potential is more towards i guess growth synergies Do you think there's cost synergies as well here? do you think there's cost synergies as well here

Speaker 1: I would say that we have cost synergies as well. We need to look at the business. We already talked about international part of the mining services. You also need to consider the great opportunity we have with Automated Solutions coming from our Cima brand. That is a huge opportunity in Peru as well. I would say that we have cost synergies as well. i would say that we have cost synergies as well We need to look at the business. we need to look at the business We already talked about international part of the mining services. we already talked about international part of the mining services You also need to consider the great opportunity we have with Automated Solutions coming from our Cima brand. you also need to consider the great opportunity we have with automated solutions coming from our cima brand That is a huge opportunity in Peru as well. that is a huge opportunity in peru as well

Speaker 2: Perfect. The final one from my side. I mean, it seems to look quite similar to your own operation, but in terms of CapEx, et cetera, is it also similar on that line given the EBITDA margin is quite high, but is it the same sort of bridge down to operating profit, or is this one more capital intensive compared to your operation? Perfect. perfect The final one from my side. the final one from my side I mean, it seems to look quite similar to your own operation, but in terms of CapEx, et cetera, is it also similar on that line given the EBITDA margin is quite high, but is it the same sort of bridge down to operating profit, or is this one more capital intensive compared to your operation? i mean it seems to look quite similar to your own operation but in terms of capex et cetera is it also similar on that line given the ebitda margin is quite high but is it the same sort of bridge down to operating profit or is this one more capital intensive compared to your operation

Speaker 1: No, very similar to ours. No, very similar to ours. no very similar to ours

Speaker 2: All right. Perfect. All from my side. Thank you very much. All right. all right Perfect. perfect All from my side. all from my side Thank you very much. thank you very much

Speaker 1: Thank you, Dan. Thank you, Dan. thank you dan

Speaker 3: The next question comes from Simon Jönsson with ABG. Please go ahead. The next question comes from Simon Jönsson with ABG. the next question comes from simon jönsson with abg Please go ahead. please go ahead

Speaker 4: Thank you. Good morning, everyone, and congratulations on the transaction. Just first, a follow-up on the sales mix here. You said 15%-20% on mining. You also highlighted some exposure to Automated Solutions services. Can you maybe share a bit more what that share is currently of the group? Thank you. thank you Good morning, everyone, and congratulations on the transaction. good morning everyone and congratulations on the transaction Just first, a follow-up on the sales mix here. just first a follow-up on the sales mix here You said 15%-20% on mining. you said 15%-20% on mining You also highlighted some exposure to Automated Solutions services. you also highlighted some exposure to automated solutions services Can you maybe share a bit more what that share is currently of the group? can you maybe share a bit more what that share is currently of the group

Speaker 1: Sorry? Sorry? sorry

Speaker 4: Share of Automated Solutions. Share of Automated Solutions. share of automated solutions

Speaker 1: I don't have the details now with me. What we've said is that they already have 1,000 machines, and there's a lot to explore in that sense in the Peru market, but I don't have all the details that you're asking for now. I don't have the details now with me. i don't have the details now with me What we've said is that they already have 1,000 machines, and there's a lot to explore in that sense in the Peru market, but I don't have all the details that you're asking for now. what we've said is that they already have 1,000 machines and there's a lot to explore in that sense in the peru market but i don't have all the details that you're asking for now

Speaker 4: All right. Do you have any understanding on sort of the penetration in this market for automated solutions? Is it, you know, significantly less mature compared to Europe and North America, you would say? All right. all right Do you have any understanding on sort of the penetration in this market for automated solutions? do you have any understanding on sort of the penetration in this market for automated solutions Is it, you know, significantly less mature compared to Europe and North America, you would say? is it you know significantly less mature compared to europe and north america you would say

Speaker 1: Yes. It's less mature for sure. Yeah. Yes. yes It's less mature for sure. it's less mature for sure Yeah. yeah

Speaker 4: All right. On your market position, maybe it's a bit difficult to answer, but, around 50% market share, do you also see that there is more potential for bolt-ons in this country? Do you think now you're sort of taking what you can and will try to take market shares? Do you think that there is also bolt-on acquisition potential here? All right. all right On your market position, maybe it's a bit difficult to answer, but, around 50% market share, do you also see that there is more potential for bolt-ons in this country? on your market position maybe it's a bit difficult to answer but around 50% market share do you also see that there is more potential for bolt-ons in this country Do you think now you're sort of taking what you can and will try to take market shares? do you think now you're sort of taking what you can and will try to take market shares Do you think that there is also bolt-on acquisition potential here? do you think that there is also bolt-on acquisition potential here

Speaker 1: Not in this country, Simon. Not in this country, Simon. not in this country simon

Speaker 4: All right. Thank you. You know, In terms of your general presence here in Latin America now, do you think that with this it makes even more sense to be, you know, more aggressive in the other countries in Latin America on average? All right. all right Thank you. thank you You know, In terms of your general presence here in Latin America now, do you think that with this it makes even more sense to be, you know, more aggressive in the other countries in Latin America on average? you know in terms of your general presence here in latin america now do you think that with this it makes even more sense to be you know more aggressive in the other countries in latin america on average

Speaker 1: I mean, we already explained at our Capital Markets Day that this was gonna be one of our main focuses when growing the business in emerging markets. We keep exploring as we've been doing for the past years in adding new countries to this Latin America business line. I mean, we already explained at our Capital Markets Day that this was gonna be one of our main focuses when growing the business in emerging markets. i mean we already explained at our capital markets day that this was gonna be one of our main focuses when growing the business in emerging markets We keep exploring as we've been doing for the past years in adding new countries to this Latin America business line. we keep exploring as we've been doing for the past years in adding new countries to this latin america business line

Speaker 4: All right. Just a final one on margins, and, you know, you talked a little bit about that you see even further margin potential here, but it is very high margins, of course. Can you just maybe explain a bit, you know, the reason behind that? You know, is it any specific category here where margins are very high, or is it just that, you know, margins in general are much higher, or is there anything for us to keep in mind here on the sales exposure and margin for different segments? All right. all right Just a final one on margins, and, you know, you talked a little bit about that you see even further margin potential here, but it is very high margins, of course. just a final one on margins and you know you talked a little bit about that you see even further margin potential here but it is very high margins of course Can you just maybe explain a bit, you know, the reason behind that? can you just maybe explain a bit you know the reason behind that You know, is it any specific category here where margins are very high, or is it just that, you know, margins in general are much higher, or is there anything for us to keep in mind here on the sales exposure and margin for different segments? you know is it any specific category here where margins are very high or is it just that you know margins in general are much higher or is there anything for us to keep in mind here on the sales exposure and margin for different segments

Speaker 1: When you look at Latin America, you see that margins are higher, but obviously the risk is higher as well. That's a normal thing in our business. I would say that aside from that, there's nothing else special in the Peruvian market. When you look at Latin America, you see that margins are higher, but obviously the risk is higher as well. when you look at latin america you see that margins are higher but obviously the risk is higher as well That's a normal thing in our business. that's a normal thing in our business I would say that aside from that, there's nothing else special in the Peruvian market. i would say that aside from that there's nothing else special in the peruvian market

Speaker 4: All right. Thanks. That's all for me. All right. all right Thanks. thanks That's all for me. that's all for me

Speaker 1: Thank you. Thank you. thank you

Speaker 3: As a reminder, if you wish to register for a question, you may press star and one. Our next question comes from Viktor Lindeberg with DNB. Please go ahead. As a reminder, if you wish to register for a question, you may press star and one. as a reminder if you wish to register for a question you may press star and one Our next question comes from Viktor Lindeberg with DNB. our next question comes from viktor lindeberg with dnb Please go ahead. please go ahead

Speaker 5: Good morning. Thank you. Starting to look a bit in the rearview mirror, to my understanding, CVC has been the main owner the past five, six years, and curious to understand the business development under the control of CVC, what any transformation initiatives or business initiatives that have been taken here. Also I noticed that the head count is quite a bit lower today than it was when CVC acquired the company. It would be interesting to understand the business mix change or if the company is sort of shrinking to find a better and stronger position, or if that information was incorrect. Starting on that, and then a few more. Thank you. Good morning. good morning Thank you. thank you Starting to look a bit in the rearview mirror, to my understanding, CVC has been the main owner the past five, six years, and curious to understand the business development under the control of CVC, what any transformation initiatives or business initiatives that have been taken here. starting to look a bit in the rearview mirror to my understanding cvc has been the main owner the past five six years and curious to understand the business development under the control of cvc what any transformation initiatives or business initiatives that have been taken here Also I noticed that the head count is quite a bit lower today than it was when CVC acquired the company. also i noticed that the head count is quite a bit lower today than it was when cvc acquired the company It would be interesting to understand the business mix change or if the company is sort of shrinking to find a better and stronger position, or if that information was incorrect. it would be interesting to understand the business mix change or if the company is sort of shrinking to find a better and stronger position or if that information was incorrect Starting on that, and then a few more. starting on that and then a few more Thank you. thank you

Speaker 1: Morning, Viktor. I don't have all the details on what CVC has done with the company, but I can tell you that, more or less when you, when you see the past years, it has remained flat. I haven't seen any big transformation being done by CVC. Probably they have been working on efficiency as we are, and that means reducing headcount while keep growing the business. No other specifics there. Morning, Viktor. morning viktor I don't have all the details on what CVC has done with the company, but I can tell you that, more or less when you, when you see the past years, it has remained flat. i don't have all the details on what cvc has done with the company but i can tell you that more or less when you when you see the past years it has remained flat I haven't seen any big transformation being done by CVC. i haven't seen any big transformation being done by cvc Probably they have been working on efficiency as we are, and that means reducing headcount while keep growing the business. probably they have been working on efficiency as we are and that means reducing headcount while keep growing the business No other specifics there. no other specifics there

Speaker 5: All right. I noticed Peru has a bit higher corruption index when looking at this world map. I know you have been very much investing in compliance on group level, but also locally, and just to see what you see in terms of business counterpart risks here, and if that's something you need to review given your strict focus on compliance and this being a new market for you further out on the risk curve. All right. all right I noticed Peru has a bit higher corruption index when looking at this world map. i noticed peru has a bit higher corruption index when looking at this world map I know you have been very much investing in compliance on group level, but also locally, and just to see what you see in terms of business counterpart risks here, and if that's something you need to review given your strict focus on compliance and this being a new market for you further out on the risk curve. i know you have been very much investing in compliance on group level but also locally and just to see what you see in terms of business counterpart risks here and if that's something you need to review given your strict focus on compliance and this being a new market for you further out on the risk curve

Speaker 1: In that sense, we are aware of the general corruption risks in Peru as well as in other South American countries. We obviously have done a full due diligence, and it indicated that the company has strict protocols in place. Yes, we have had an extensive due diligence process, including legal, compliance, labor, payroll, finance, tax, IT operations, and insurance. But what we see is that Hermes is committed to ensuring compliance with the regulations governing these operations and has a strong regulatory compliance program in place. In that sense, we are aware of the general corruption risks in Peru as well as in other South American countries. in that sense we are aware of the general corruption risks in peru as well as in other south american countries We obviously have done a full due diligence, and it indicated that the company has strict protocols in place. we obviously have done a full due diligence and it indicated that the company has strict protocols in place Yes, we have had an extensive due diligence process, including legal, compliance, labor, payroll, finance, tax, IT operations, and insurance. yes we have had an extensive due diligence process including legal compliance labor payroll finance tax it operations and insurance But what we see is that Hermes is committed to ensuring compliance with the regulations governing these operations and has a strong regulatory compliance program in place. but what we see is that hermes is committed to ensuring compliance with the regulations governing these operations and has a strong regulatory compliance program in place

Speaker 5: There are no business areas within Hermes that you foresee that you might leave behind or focus less on. There are no business areas within Hermes that you foresee that you might leave behind or focus less on. there are no business areas within hermes that you foresee that you might leave behind or focus less on

Speaker 1: No. No. no

Speaker 5: Going forward? No. Going forward? going forward No. no

Speaker 1: No. Not at all. No. No. no Not at all. not at all No. no

Speaker 5: Okay, that's good. Final housekeeping question. Transaction cost, assuming this approval and tendering will follow through, what kind of integration cost, transaction cost should be expected on the back of this? Okay, that's good. okay that's good Final housekeeping question. final housekeeping question Transaction cost, assuming this approval and tendering will follow through, what kind of integration cost, transaction cost should be expected on the back of this? transaction cost assuming this approval and tendering will follow through what kind of integration cost transaction cost should be expected on the back of this

Speaker 1: No material costs are expected for that part of the process. Obviously we've been working for a number of months of that already, but those kind of M&A related costs we've already assuming in the P&L. No material costs are expected for that part of the process. no material costs are expected for that part of the process Obviously we've been working for a number of months of that already, but those kind of M&A related costs we've already assuming in the P&L. obviously we've been working for a number of months of that already but those kind of m&a related costs we've already assuming in the p&l

Speaker 5: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 1: Thanks. Thanks. thanks

Speaker 3: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Larrea for any closing remarks. Ladies and gentlemen, that was the last question. ladies and gentlemen that was the last question I would now like to turn the conference back over to Mr. Larrea for any closing remarks. i would now like to turn the conference back over to mr larrea for any closing remarks

Speaker 1: Thank you all for listening in such short notice, and please reach out if you have any questions. We're very excited with the time ahead with this acquisition. Thank you very much. Bye-bye. Thank you all for listening in such short notice, and please reach out if you have any questions. thank you all for listening in such short notice and please reach out if you have any questions We're very excited with the time ahead with this acquisition. we're very excited with the time ahead with this acquisition Thank you very much. thank you very much Bye-bye. bye-bye

Speaker 3: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye. Ladies and gentlemen, the conference is now over. ladies and gentlemen the conference is now over Thank you for choosing Chorus Call, and thank you for participating in the conference. thank you for choosing chorus call and thank you for participating in the conference You may now disconnect your lines. you may now disconnect your lines Goodbye. goodbye