Securitas AB (publ) (SECUB) Earnings Call Transcript & Summary

Welcome to Securitas Capital Markets Day 2026. Thank you so much for joining us here in London, and thank you for joining us over the webcast. I'm Micaela Sjokvist, and I'm heading up the IR function at Securitas. During this morning, we will have a great team presenting, and we will have 2 Q&A sessions, and we will also have a long break allowing for both coffee and for 2 demos. Demos that will show our risk intelligence services and our digitization journey. So don't miss them. But now, let's start, and let me introduce to you Securitas President and CEO, Magnus Ahlqvist.

Thank you, Micaela, and it's wonderful to see everyone here at the London Stock Exchange. And if I look at the right place, also a warm welcome, everyone, who is joining us on the webcast. So today, we want to share our perspective on the security industry and what the clients are looking for in a leading security partner. But we will also talk about why Securitas is well positioned to benefit, but also to take a leadership position in the next phase. And if you look at the last phase, we have, in the last couple of years or the last 5, 6 years, built a stronger, sharper and also more digitally capable Securitas. So we have a foundation today to move from transformation to profitable growth. And when you look at the next phase in our growth strategy, this is really about helping our clients in a more complex risk environment. It's helping them with security that is more connected and also more intelligence-led. And our ambition, as we've been working with our strategy internally, you always have to then highlight what you call the strategy and the kind of the wanted position. And for us, that is to be the trusted partner in intelligence-led security. And in the past month, I had the opportunity to meet over 300 clients in Paris just last week and also in Orlando in the U.S. a couple of weeks ago. And based on all of those conversations, I'm more confident than ever about our strategy and that we're well positioned for the next phase. So today, you will hear about the quality of our business. You will hear about the scale of our business, and we will also talk about what intelligence-led security is all about. But before we begin, let's just take a brief look at the progress that we have made. So I think over the last 5 to 6 years, I know many of you are following us closely, and you heard us talk about significant transformation, heavy lifting, but we've also driven quite a lot of progress in that one. We have invested a lot in our capabilities, strengthening leadership. And here, obviously, very happy that I have a number of great leaders and colleagues with me here today. But we've also then been investing a lot in building our digital backbone that will enable us to scale and to build the business for the next phase. So when you look at a few of the highlights, starting with the Technology business. Our technology team have done tremendous work with the integration of Stanley Security. And they're creating Securitas Technology, which is now one of the leading Technology businesses in the world. We've also strengthened our focus on execution capability. Stronger leadership, like I said, emphasis on accountability and also driving execution certainty. And we have greatly also improved our services and Guarding business. So we have Jorge and Henrik here who've done tremendous work in terms of upskilling, digitalizing the Guarding business, but then also doing a lot of the work with active portfolio management, and that's helped us also enhance the quality of the business to a level where we haven't been in the past. And like I said, we built a digital backbone to scale. And I got the question many times from you, what are all of these investments that you're doing? And I hope that today, you're going to see the pieces also coming together as we are sharing how we're also starting to scale these digital capabilities to the benefit of our clients and also to the business. And when I look at this, this work is also translating into tangible results. So we delivered on the 8% operating margin target that we communicated in 2022. And thanks also to solid profitability and cash conversion, we have also reduced our net debt to EBITDA now to 2.1. So we have a really healthy balance sheet. And all of this is thanks to building stronger partnership with our clients and doing that at scale. And we have been driving a lot of focus on client centricity since I started as CEO. And I'm glad to say that today, we're building deeper relationships with our clients, and we have a client retention rate just above 90%. And this is important when you look at the growth opportunity because we have a really good group of clients that we can grow with over the next phase. Another focus that we've had is also building our scalable business. And today, what we call recurring monthly revenue is more than SEK 1 billion per month. So we are ready for the next phase. And today, we're also then announcing our new financial targets, and we are shifting the emphasis from the margin improvement to profitable growth. And we're updating our financial targets with a 10% EPS growth target over a cycle. We've also been trying to sharpen the business, like I said. So we're also then increasing the cash conversion or the cash flow target to 80% to 90% and also the net debt to EBITDA to be below 2.5. And we are maintaining a strong 50% to 60% dividend policy. But to be clear, margin discipline that we have and the profitability remains central to how we are growing the business, and we're also maintaining the long-term ambition to get to 10% operating margin. But what changes now is that now we're combining that discipline with an increasing focus on driving profitable growth. And we are really well positioned with our clients and also when you look at the external dynamics in the market to be able to drive this. And Matteo will go through a lot more detail also in his section in terms of what underpins the EPS target. But with that, let us now shift the focus to the future. So if you simplify a little bit, you can say that the last part was very much about building key capabilities. It was about sharpening our business and about the margin delivery. And the next phase is now to leverage this foundation and the capabilities we have to then be able to bring more connected, more scalable solutions for our clients and also for Securitas. And it's very much about winning in a really exciting phase for the security industry. But before I talk about how we win, let me just share a few perspectives in terms of the dynamics in the market. And I think you all know, I've said many times that this is a very conservative industry. But I firmly believe that the next 5 years are going to be more transformative than the last 25 years that we have seen in our industry. And why is this? Well, we obviously have quite a turbulent situation geopolitically. But if you look at this from our industry perspective, the change drivers are very much related to advances in technology, automation and AI. And those shifts are really now changing how security is delivered, how it's valued and also how it's being bought. And already today, when you look at artificial intelligence, it's starting to have an impact on our industry and the value chain. So let me just share a few examples because I think these are important to also then have as context. And when I look at this, you will see that there is a number of different opportunities and dynamics where there is an impact. And if you're starting with the design, there is real opportunity to now optimize AI to design the security equation in a new way. But we also see significant opportunity in detection. So when you look at detection, when we have overlaid AI on top of existing camera infrastructure, we are seeing tremendous benefit in terms of the monitoring, reduction of false alarms, and this is also then helping us and optimize the resource allocation and the response. And then you look at delivery. And here, I also think that we're going to see a really profound impact in our business. And this is obviously our opportunity to augment our security technicians that we have, the security officers that we have in the front line, which will enable them to have better knowledge and intelligence at their fingertips. This is going to be really positive also for continuing our journey of enhancing the productivity, investing more in our employees and also then adding higher value to our clients. And then we have operational optimization. And this is something I've also mentioned in the last couple of years, looking at Europe, in particular, where Henrik and the team have also been leveraging AI to optimize our branch structure and to drive operational optimization. This is something that we have also started to scale across the entire business. So there's no doubt that there is going to be real impact and opportunities related to AI and automation. But important for anyone in our Services business, which is still quite people-intensive is that you need modern platforms and you also need to be digitalized end-to-end to be able to capitalize on the opportunities presented. And Matt, Jonas and Serdar will provide more insights and examples during the coming sections. But when you look at these trends about AI, they are evident, like I said, in the dialogue with our clients. And we will talk about what the clients are looking for in a security partner for the next phase, but these are just a few major themes that I see are important and that we are hearing in our dialogue with them. So first, just continuing on the AI theme, they are looking to capitalize on the opportunities presented with AI. But they're also very clear that the complexity for them is increasing. So they also need a trusted partner who can help and integrate, makes sense and also then operationalize to drive real value from the AI opportunities presented. Another important one is the clients also see that it's a more complex risk landscape, and they're also looking for a partner who can help and be more intelligence-led. So that means essentially more on top of the risk of the threats that are facing their business. And then we have 2 other things that are not new, but that are important. And one of those is the emphasis on quality. Because when you look at this industry, we have seen in our market research and also when we go out and ask also customers that are not companies -- that are not customers of Securitas, quite often that the expectation in terms of quality is higher than the perceived delivery. And that's obviously a gap when we talk about our strategy. Brian will also talk about how we also intend to close that gap and to do that consistently. And then last but not least, there is a continuous pressure on value for money. So everyone wants to do more with the same amount of money or some even with less. And I think this is also an important [ one where ] we're also well positioned with our capabilities to make that work. So when you look at these trends, this is exactly in line with what I heard also just last week when we were together with 100 clients in Paris. But if you then move the perspective from the clients and when you look at the markets, we are fortunate to be operating in large and also expanding markets. And this is a picture that illustrates the 3 main areas where we are present. So when I look at security services, this is obviously primarily different types of guarding capabilities. And here, you're seeing a USD 240 (sic) [ 245 ] billion market. And we believe that roughly half of this market is addressable market for us. And then just to qualify what addressable means, that means obviously where we are geographically present, but it's also where we have customers that are -- that place emphasis on compliance and quality, but who are also willing to pay for it. So it's a very significant market, around 3% CAGR is what we are foreseeing over the next 5 years. And then you look at the technology market and technology for us, that's systems integration, it's monitoring and remote services, and it's also the important maintenance in terms of the technology that we have installed for the clients. And this then is roughly USD 130 billion market. And here, you also see that we have roughly 3/4, which is then addressable market share for us. You also see a slightly higher growth rate in the technology space, which I also think is normal given the trends that we are seeing. And then we have what is partly new to us, security risk management intelligence. And that's obviously -- it's not a small market, but in comparison to the other 2, it's fairly small. But here, we are seeing significantly higher growth rate. And one of the drivers there is this increasing need for intelligence and working in a more dynamic way. When you look at Securitas, we are 100% security and safety focused. And this obviously means that this provides significant runway for us to grow market share and also to drive growth. And we have deep expertise in all 3 areas. And we're going to talk about today how we also then capture that value. So to summarize this section about the market itself, we see significant amount of change in the next 5 years. We see that our clients are looking for a trusted partner who can help them in an increasingly complex, but also more promising type of situation or context. And we are fortunate to operate in large and also expanding markets. So let us then shift to our strategy and how we are winning in this next phase. And as I mentioned at the beginning, our strategy is to be the trusted partner in intelligence-led security. And our strategy has been built for this shift, and we have the assets and the capabilities to lead it. So this is a simple or somewhat simplified illustration of how we think about fully integrated and intelligence-led security. And at the core, this is a fairly simple idea. So you're starting with the client's risk posture. We use intelligence to understand what is changing and then you adapt and mitigate the response accordingly. And this is obviously how you then go from intelligence or information that becomes intelligence and that we then translate into action. And this is how security is becoming more dynamic, more targeted, but also more value focused. So now let me take you into the future a bit, and I'm going to show a video now just to share a little bit how we security -- how we see security evolving in the next 5 to 10 years and also what the clients of tomorrow are looking for in a security partner. And this is just to provide some context to why our strategy matters, but also then why we have the assets and why we're building the assets to lead in this context. [Presentation]

So I hope that this gives you a sense of how we think security is evolving in the next phase. It shows the future client needs, fully integrated intelligence model -- intelligence-led model, which is then required to address it and to be able to work in that way. And in a few moments, Matt and Jonas will come back or come up on the stage, and they will give you a lot more detail to share what this looks like in real practice. But let me just share a few more words about the strategy and our capabilities. So we have built 3 areas in security services, technology and security risk management. And when you look at these areas, each is strong, each is capable also to win based on the depth of expertise, the quality and the efficiency based on which we are running these businesses today. But the real differentiator is that we are able to connect these different capabilities in the next phase. One integrated model which is giving the clients fewer interfaces, better coordination and also more value. And this is how we win share as clients move increasingly towards integrated solutions. And then you might ask the question, is this for everyone, and that will not be the case. One size doesn't fit all. Starting points are going to be different, and the ideal security partnership will also differ. But I included this slide also to share a little bit how we are driving growth and how we think about growth. So when I look at this one, we have a number of clients who are just single service today. But as we win trust, and as their security needs are changing, we're also in a good position to move into more of a multiservice type of engagement. But then we also have the opportunity to migrate over to more fully integrated and intelligence-led relationship. And later, Brian is going to show you how we are doing this with our global clients, but I just want to say already now that what Brian is sharing about the global clients which is roughly 20% of our business, it's equally applicable across all the large and national clients that we have in our base as well. So this is very much about winning. It's about expanding and it's about integrating in terms of how we are then leveraging the client base that we have to capture more value and to drive more growth, but at the same time, also increasing the value that we provide for our clients. And we have also now been after the last phase of a lot of building and transformation, we have also now start to put incentive programs in place to also then be able to incentivize the different parts of the business to also then work more related to the client and also then to increase the synergies and the share of wallet. But when we are doing that and becoming more intelligence-led, we also then have more connected services. And this is also then helping and driving the recurring revenue. And the recurring revenue is a real proof point that the strategy that we have is working. So as we expand technology footprint and connected services, we then, at the same time, emphasize the integrated and intelligence led, we also then increased the share of revenue that is predictable, scalable and higher margin. So we're building a more connected business in the next phase with stronger client relationships, higher scalability, more resilient revenue and also profit base. And this is important because there is higher stickiness also with the clients, and there is also significantly higher margin profile on these types of services. So our strategy is simple. We want to lead this intelligence-led shift, scale innovation and win together with our clients. And these are the drivers of our next phase of EPS growth. So in the next sections now with Matt and Jonas, you're going to hear a lot about intelligence-led security and what is this all about. Serdar will talk about innovation and AI so that you would also get a better sense in terms of how is this evolving now and what's our view and the role that we are able to take in this space. And then like I said, Brian will talk about how we are winning the clients, how we're scaling quality, but how we also then essentially work in that model that I shared with single service, multi-service and also then integrated model for the benefit of the client but also for the benefit of Securitas. And then after the break, Matteo will then provide more detail on the finance and also then guiding you through the thinking behind the financial targets. But if you're looking at the first 4 here, these are really the engines of our growth for the next phase. And the rest of the presentations, we will just provide more proof points and hopefully also much better understanding of how we make this work. And then I just want to say that during the break, Micaela mentioned briefly that we will also then have demo sessions. And I encourage all of you spend time with Mike, spend time with Lauren because there we will also share things that are not part of the presentation here, where we are showing how we are working intelligence-led but also fully digital in our business today. So I think that is also really, really important for, for your understanding in terms of what is the type of machine that we have now built. But before handing over, let me just close with the most important point. And that is that the future of security industry and who is going to win is not going to be defined by presence alone, by technology alone or data alone, it's really about the winners will be those who can connect all 3. Turn intelligence into action, and that is the advantage that we are now building at Securitas. We have local and global presence. We have global capabilities, strong client relationships and the expertise to be able to lead this shift. This is already happening today with our clients, and we see significant opportunity to drive profitable growth. So now I would like to welcome Matt Ellis and Jonas Florvik on the stage and maybe just then a special welcome to Matt because he has been a customer of Securitas for the last 10 years. He was leading and building the world's largest -- one of the world's largest security programs at Amazon. He joined us on the 1st of April, so it's a flying start, but it's really great to have you both on the team. So warm welcome.

Hello, everyone. As you saw in the earlier video from Magnus, Securitas is moving conventional security services toward adaptive intelligence-led solutions, combining risk intelligence, guarding and technology into one connected ecosystem. Now the dynamic model shown, the one that was shown in the video, just able to adjust in real time to changing risks is where we're heading. But there are clear steps for us to take in the journey for us to get there. Steps like providing all of our frontline security officers with threat information and intelligence, steps like providing AI-enabled risk assessments whenever clients engage Securitas with services and steps like integrating technology, guarding and AI in a risk-based way into a turnkey solution for clients. And that is why Securitas has created SRM. I've worked in large-scale corporate security for over 15 years, and this industry has long talked about the desire to be intelligence-led and risk-based. And what's historically held back industry has been the lack of technology and the difficulty in scaling and implementing solutions. And that has changed. The technology now exists and the innovation over the past 2 or 3 years has materially expanded what is possible. Clients now face a different challenge, choosing the right technology, integrating that into their existing environments and building and operating the models needed to deliver measurable security outcomes and efficiencies without introducing risk. And this is where Securitas can lead. We are positioned to deliver intelligence-led security at scale, giving clients proactive decision-making advantages, strengthening their resilience, improving their efficiency and reinforcing our role as the trusted adviser. So I am new to Securitas, I joined about 2 months ago in my role as the President of Security Risk Management. And as I mentioned, I joined from a background leading large-scale security programs in industry. And through that experience, I have seen firsthand what intelligence-led and risk-based security can deliver when it's implemented effectively at scale. I've also seen that very, very few organizations have the internal resources, the expertise, the operational capacity required to build and sustain these capabilities on their own. And coming from that environment, I've also been able to see the pent-up demand across the market for more adaptive intelligence-led solutions. There is a huge appetite from clients today, yet there are currently very few providers capable of delivering these services in a truly integrated and meaningful way and none that can offer them at scale. And that's exactly what clients are asking Securitas for and something that I've heard consistently since joining. The challenges that they describe are familiar to me, integrating intelligence, technology and operations into a connected security model that improves outcomes while remaining scalable, resilient and, of course affordable. In my previous role leading corporate security at Amazon, I was responsible for over 500 locations around the world and support of over 350,000 employees. And experiences like that are what give me the confidence that Securitas is uniquely positioned and capable to lead the next evolution of security. I'd now like to introduce you to my colleague, Jonas Florvik, the VP of Securitas Risk Intelligence.

Thank you, Matt. And as Matt said, very few organization can deliver -- truly deliver intelligence-led security at scale. This is exactly the journey that we have started at Securitas. Since a couple of years, we have now digitalized our operations and how we interact with our clients through the client interface, MySecuritas. Today, we handle, for example, more than 3.6 million guard report a month in the platforms, together with that we have 80,000 active client users interacting with us through MySecuritas. At the same time, we have built a baseline in AI, not as a future concept but embedded into our service today. Serdar will soon speak more about what we do within the space of AI. So my name is Jonas Florvik, I have been leading the client digitalization and AI initiatives within Securitas. From today and further on, my focus will be Securitas Risk Intelligence as part of shaping how we deliver intelligence-led security to our clients. I will also today share with you 2 examples on what we're already doing with our client. But before that, Matt, intelligence-led.

So intelligence-led security is about bringing together security services, technology and security risk management into a single ecosystem for our clients. And where this is really effective is when we can do it through a single-client interface. The investment in SRM, Securitas now has all of the component parts required to deliver intelligence-led security at scale. And intelligence-led security is not simply about collecting more information, it's about turning information into better decisions and better outcomes. Our risk assessments will be providing clients with up-to-date view of the risk across their sites and their portfolios as threats and vulnerabilities evolve over time. From there, security planning can become adaptive rather than static. Site-specific security programs, post orders, incident response plans can all be tailored to the operational environment and continuously updated based upon events and intelligence. And our monitoring capabilities will combine public information, proprietary intelligence, client data, guard force reporting, technology systems and more to create continuously monitored operating pictures. Of course, automation and AI will help filter and prioritize these signals at scale, allowing analysts and operators to focus their attention where it matters the most. And those signals can be transformed into finished intelligence and actionable insights delivered through MySecuritas directly to our clients and to our frontline security teams, reducing the noise, accelerating the decisions and triggering predefined operational responses in response to evolving and changing threats. And ultimately, this all must lead to action. Guards, technology, intelligence, operational workflows are all orchestrated together to proactively prevent incidents and to be able to respond more rapidly. Of course, importantly, AI is an enabler for our guard force and not a replacement for it. The role of AI is to support our offices with faster insights, improved decision-making and allowing them to operate more effectively and more proactively so we can have greater impact for our clients. Intelligence-led security at scale relies upon 3 fundamentals: the ability to collect threat information at a global scale, the ability to translate that into actionable intelligence and the ability to deliver operational outcomes through execution, prepare, monitor, act. SRM consists of 3 separate business groups, each of which will continue to be successful in its own right, supporting its customers as they do today. But collectively, they create something far more powerful, the ability to deliver integrated intelligence-led security solutions at a global scale. These 3 groups are Liferaft, a cloud-based threat intelligence SaaS platform that scales monitoring, alerting and investigations as well as frontline intelligence. This is how we collect threat intelligence data at scale. Liferaft scans billions of online posts and data points every day, generating approximately 10 million notifications each month and filtering those down into a few hundred highly relevant alerts per customer use case. This provides the large-scale monitor layer that automates the collection and the triage, dramatically increasing the speed and the scale of the coverage of our threat monitoring across people, places, events and emerging risks. Securitas Risk Intelligence, 24/7 analyst-led intelligence capability that transforms global threat signals into curated, actionable risk insights. This is where threat data becomes intelligence and decision support. And on average, Securitas Risk Intelligence delivers more than 1,250 intelligence briefs and reviews over 20,000 events each month, helping clients make faster risk-based decisions through verified assessments. And Pinkerton, a global risk advisory and protective services organization that converts intelligence into operational execution and measurable outcomes. Pinkerton delivers investigations, advisory services, embedded services, executive protection, travel risk management and crisis response capabilities to help clients operate more securely in complex environments. And together, these capabilities allow Securitas to move beyond conventional security delivery toward a connected intelligence-led model that can proactively adapt to the risk and deliver measurable security outcomes at scale. Now Jonas will dive deeper into our Securitas Risk Intelligence business.

So if we look a little bit deeper into the risk intelligence capability, that capability is designed for a fundamentally more complex world because threat today are global, they are always on and they are interconnected. At the same time, our clients need to make better and faster decisions than ever before. So what we provide is a global intelligence partner that have 24/7 operations. We have analysts all over the world connected to data as platform as Liferaft, but also connected to our presence. But the real value is not just monitoring the threat. The real value is that we can tell the clients what matters to them and what they can do about it. What we do is analyze constant flow of signals globally and translated into clear, actionable intelligence that is tailored for each client's operations and the risk profile. So in short, what we do, we reduce complexity and we enable decision. So instead of just talking about this in theory, let's talk about 2 live examples. This first one started in our global monitoring where we monitor for early signals. We could detect a signal. There was an identified signal or planned disruption linked to an activist group. So this was already a client to us. So we reached out to this client proactively with the intelligence we have. With the intelligence, the client took legal actions and they secured a court injunction, meaning that the authorities can intervene early or even before it happens. And it also show how intelligence naturally involves into deeper partnerships with the clients. So they use this as evidence and the outcome of this was they reduced significantly their operational impact and brand impact, and it was estimated to USD 10 million. So this is an example of how intelligence can help the client act before it happens, not react to the incident. My next example is one of the largest events in the world. You probably know about it. It's the Oktoberfest in Germany. The Oktoberfest, I believe, is a powerful example on how security is shifting. It's moving from manpower operations into intelligence-led security. At this scale, we have millions of visitors. We have a dynamic environment. We have a critical infrastructure with the transportation system that is part of the solution on delivering a great Oktoberfest. The challenge is not adding more guards, it's handling complexity in real time. This is exactly where our risk intelligence services come in. So what we do is that we do a full pre-event assessment, not only on the venue, but also the surrounding, the suppliers, the transportation system. Then we continue during the event to monitor threats as the event happens. We provide daily briefs. We apply alerts to them. We constantly update them about the situation. But again, the value is not alone the intelligence. It's when we connect intelligence to our operations, to our technology and create one operational picture that is real time, always updated and connected to our people. And that we do through, again, the client interface, MySecuritas, but we also flow the intelligence down to the people on the ground. So they enables them to take immediate decision, coordinated responses and continuously adaptations of the security situation. So it's just not intelligence that comes in and someone looks at it, we operationalize it into our risk profile. I believe that this is what it means to become a trusted adviser, helping the clients to move from a reactive security setup to a proactive security management because the client doesn't -- today doesn't only want to buy guards alone, they wants to buy better decision, early visibility and operational resilience. So Matt?

Thank you. So Securitas has invested to make intelligence-led security real at scale, not only through the creation of SRM, but through the continued digitization and modernization of our broader operations. And this is what our clients and our industry are increasingly asking for, security programs that are more adaptive, intelligence-led, efficient, outcome-focused, programs that not only strengthen the security outcomes, but improve operational efficiency and that are resilient. And Securitas is uniquely positioned to lead this transition at a global scale. There is no other organization today that has the combination of intelligent services, operational delivery, technology and the global footprint required to deliver in a scalable and repeatable way. This represents a significant market opportunity over the next several years. As highlighted by Magnus, this is a $21 billion addressable market by 2030. But just as importantly, this is an opportunity for Securitas to help shape the future direction of our industry. The tools and the technologies and the capabilities now exist to meet client expectations in ways that were just not possible a few years ago. But success depends on our ability to leverage that information and data at a global scale, getting the right information to the right people at the right time. And this is where we are positioned to lead. We are going to be first to market with these solutions, and that puts Securitas in a great position. The security threat environment is not static. Our models should not be static either. I'd now like to pass you on and introduce you to our SVP of Innovation and AI, Serdar.

Good morning. I would like to start my presentation with that image. Please imagine this. Another day in a large enterprise, thousands of employees, visitors across many locations, constantly changing risks, thousands of cameras and millions of alerts. So welcome to the daily life of an overwhelmed security manager. I'm Serdar Ince. I lead Innovation and AI at Securitas Technology. And today, I will present our plans to transform security through technology, especially artificial intelligence and make the life of that security manager easier. Before this role, I worked at Securitas in different positions, leading product management and digital transformation. And before this, I worked in the security industry to develop software products. And before that, I did research at universities and a research lab. So I was able to see all the steps of a commercial product. And at Securitas, I was able to meet hundreds of clients to listen their problems. So my role is finding the emerging technology, build services and solve client problems. So Matt and Jonas talk about this as well. If you take a step back of what we do as security professionals on a daily basis, what we do is we try to prevent or detect an incident -- prevent an incident, [ detect ] an incident. If not possible to detect it, then interpret, then act on it and then report or escalate the situation. So technology as one of the specializations has been always an enabler with its system sensors in each and every step. So what technology does is it extends the human reach, enhance the security, helps us move faster, interpret better and with precision. And when we talk about technology to our clients, we always get the question, which technologies, which are the ones that are relevant for us. So what we do every year is we undertake a big research effort to identify the emerging technologies, and we publish it in our global technology outlook report, and a copy is available for you at the registration desk during the lunch time. So please take and I'll be happy to answer any questions. And this is the industry's most comprehensive technology trend analysis because it's a compilation of the feedback from our clients and market survey, technology partners and internal experts. And the goal is to identify new technologies earlier to build services around it. So that's why we believe this is a competitive advantage. And of all the technologies that we talk about, artificial intelligence, especially Generative AI has been a very impactful technology in security. As Magnus said, our industry has been a conservative industry, but large language models, vision language models became popular in less than 4 years ago, but now we already have applications in security. And what we see is a major opportunity. Traditionally, what happened was all the data was coming from the systems to users. What we can do now is we can insert intelligence layer in between that will help us to filter the noise and understand the context in a way that was not possible before. And of course, AI is available to anyone, so practically zero start-up cost. We believe we differentiate ourselves for 2 reasons. First, we have the capability to deploy and integrate systems that collect data. So all the different systems, all different sensors. And second, we believe we have the know-how to incorporate AI into new and existing into workflows. So our ultimate goal is to scale the operation to provide better security and safety. And what we observed is artificial intelligence has been impactful on especially in video monitoring. AI has existed in some form in video monitoring for years. But what is Generative AI doing is it's about to unlock the next level in video monitoring to help us understand the context and give better information to the human. So let me try to illustrate what I mean with this example. So let's say you have an image like this. So about 2 decades ago, what we had was we had what we call motion detection. So basically, what it did was the cameras were able to tell that something changed in the camera. So you would get an alert and you would get a lot of alerts. And it was not very helpful for the operator. Then we were able to later use the systems to delineate the objects. So we will now get the information that something is moving, which is again helpful, but not very helpful because you will get a lot. And then the algorithms, deep learning algorithms were able to classify the objects into human and vehicle, which is important for security, and we were able to get that there is a person in the scene. And what we do is we will set up a virtual zone and the AI will tell us there's a person in this area. Again, useful, but it didn't give us the context. But now with Generative AI, if you take the same image and if you feed it into a GenAI model and ask it to describe the image as if you're sending the answer to a security personnel, it will say a person in dark clothing, wearing a cap is seen climbing over a chain link fence, indicating suspicious behavior or unauthorized entry. And how is this possible? Because these models have been trained hours -- millions of hours of video, so they are able to identify these kind of things. So with this, we are reaching to a level that we didn't have before to understand the context in the video. So with this tool at our disposal, what I'd like to do now is I'd like to show how we solve the client problems using this technology. And what I will do is I will show 4 examples for client problems that we hear, and I'll show how we solve these problems. So these products are already available for our clients. So the first one is I receive a lot of alerts, especially from an access control system because an access control system is meant to log opening and closing of a door. But let's say, you have an alarm saying that the door is open. Is it because somebody propped it open or somebody is moving the chairs. So what you should do is you should look at the video. What we do here is between this access control system and human, we insert an intelligence layer. So what it does is when it receives the alert, it looks at the video on your behalf and decides whether it should be escalated to a human. So this model that was trained from our -- one of our partners, and this is one of the pilots of that application. So what it did was out of that hundreds of alerts that is coming from the system, it reviewed the alerts and it deemed that only 7% require human intervention. So what this means is that the operator spends much less time to review the alarms and focus on the real alarms that require human judgment. Again, this is available today from our teams. The second problem that we keep hearing is I have a large enterprise and across the enterprises, there are always common security risks. People bringing firearms, there's a fight, there's someone falling down. So the question we got is, can the system watch the cameras on my behalf and tell me that something happened that I should review. Again, what we have here is a purpose-built AI model from one of our partners built on millions hours of video. So what it does is it can detect 150-plus different security risks. So the AI watches the camera for you and sends you an alert saying that somebody fell down or somebody jumping the fence or people are fighting in this area. So with this tool, again, available today, this helps the operator a lot because they don't have to watch the video, the AI will do it on their behalf. So it will increase the efficiency. Another problem that we hear, okay, common security problems are good, but I sometimes also have very specific problems that I want to monitor in my camera. How can I do that? That's another solution that we have. It is in our client portal. It is called SecureStat Cumulus. So what we built here is that we allow the user to talk to the system like the person is talking to a chatbot. So for example, in this case, the question that the client would like to monitor is, is there anyone wearing a balaclava or ski mask. So what the system does is it takes a picture of the event when something is moving in the camera. It compares to the question and sends an alert. Yes, a person is wearing a balaclava covering their face while walking through a hallway. Again, this helps the user to monitor the video much more effectively. This is a solution that we built, and it can be used on existing cameras as well. We utilize the cloud infrastructure. Another problem that we have is cameras are good, AI is good, but I have a huge site. I don't have enough people to patrol my site or enough cameras. So how can I do this more effectively? So the answer is actually another camera, but this time, it's on [ leg. ] So what it does is it's an autonomous robot that can walk along the patrol route and it can detect people and backpacks along the way. So this is, again, a robot available from one of our partners. Let me show you how the robot walks and see. So this is the view from the robots eyes. So what it does is it walks on the prerecorded patrol route, and it takes pictures, have 360 pictures and send them to an AI model. And then AI model in real time, identifies that, okay, there's a person here, there's a backpack here. So it just tells the operator in a remote station that these are the things that must be taken care of. So all in all, we are transforming video monitoring from a manual human-dependent process to an automation supported human in loop process, also from an evidence collection tool to an AI tool that can help prevent incidents. When we tell the story, we always get one more question. And the question is, over the years, I installed so many cameras. How can I use my existing cameras without replacing? And what we believe is this is one of the differentiators that we have. What we can do is, we can utilize the existing equipment that is already on site. So what we do is we use the existing cameras. And whenever we need AI, we insert either additional hardware on site or we utilize the AI models in the cloud, and we transform an existing installation to use existing -- to use the best AI models. And while doing so, we also offer several services. We offer remote monitoring services. You might remember that I kept saying that there's always a human at the end who will receive the alarm. It might be as well our trained operator in a monitoring station or remote maintenance solutions or storage of the video. So we are able to use existing equipment, use the latest technology and build recurring services around them. So all the things I've described so far are the ones that are available today that we can build and deploy. What about our future vision? What are the things that we will build? So Matt and Jonas talk about this as briefly and also Magnus when he showed that video, the constant changing risk landscape. We believe this is one of the views we can provide in the future for our clients, the future concept. So it is a digital twin of their enterprise. What is happening? Where is it happening? The systems will not only collect data from many sensors, but the system will, again, understand the context what is happening in this data, even run scenarios based on the risk profile. And what will be shown to the manager is a live risk score that changes based on the new data. So the idea is to bring from thousands of inputs to a one decision-ready risk score that is updated in real time. Another concept, another possibility in the future is a security copilot. So whenever an operator is handling an incident, that person will need to do a lot, understand what has happened so far and what will happen next and what are the required actions. So what does -- what this kind of copilot could do is it will summarize the incident until that point because that's the majority thing of an operator would do. For example -- in this example, a potential break in, says suspect entered this facility at this time, he tampered with the lock. Now he's moving to a restricted zone. And it will recommend the actions. So you can escalate the police, you can deploy a drone, you can deploy a guard. And as the operator takes action, the system will also say the status of the last action. Again, this is a future concept that can be built by using all the information and data that we have from our systems. So AI-powered security, the goal is really to separate signal from the noise. And remember that as security managers, our goal is really to reduce the data and alerts that we receive, so we can concentrate on what really matters. Coming back to what Magnus and Matt said earlier about intelligence-led security. We already process millions of signals, reports, alerts every day. But without integration, that creates noise. What we do is connect those signals across the systems and turn into clear action for our clients, operators and officers. As I've shown you today, these are not just theory. This is already what we are doing, and you'll see more of these in the demos from Mike and Lauren during the break. So to wrap up, why we believe we are well positioned to lead the AI-powered security. We believe there are 3 main reasons that we will be leading this change. First, we have the presence. We have the presence on site. We have the presence off-site in a monitoring station. And we already have been installing cameras and system over the years. So we have a very large installed base that we can bring into the AI world. And second, we have the ability to connect systems, data and artificial intelligence. And third, we have the scale. We have the global footprint to deploy solutions worldwide, and Brian will talk about our global clients program. And what we also have is we have the ability to identify and adopt new technologies earlier, and we have the right partnership and connections with the leading technology partners. So we believe we are in a competitive position to lead the AI-powered security. So with that, I would like to hand over to Brian Riis Nielsen, President of Global Clients, to show us how these new technologies make a difference for our clients, and we win with our clients. Thank you.

Thank you, Serdar. Wow, what a number of exciting opportunities to bring to our clients, not just what you shared, but what Matt and Jonas shared. So it's all about how do we work to bring all of this together in front of our clients. So before I go deep there, I will start introducing myself. My name is Brian Riis Nielsen. I've been leading the Global Clients business since it was established back in 2019. I have had the pleasure a couple of occasions to give updates on this development in this exciting segment. Last time it was 2024, some of you might remember. I gave a lot of promises that we were on the right direction, great momentum. I see some of you smiling. So probably you are remembering. I'm pleased to say that we not even kept that momentum. We further accelerated that in the years to come, and that has been a huge contributor to achieving our 2025 targets. So now what? Today, I'm going to share some of the key drivers behind that success that we believe, like Magnus said, is scalable also to our large local and national clients to support the next journey in our strategy. But before I do that, just a few figures on what I call a big success, the global clients, we have seen significant higher growth than the market average. Also when we track the comparable market of global and cross-border clients, significantly higher growth than the market. We have now grown from a low double-digit share of global sales in Securitas to now 20% of the total global sales. It's also fair to say that we have leveraged the AI also from a business point of view. The Data Center business that we decided to invest in -- back in 2019 has been one of the key driver, if not the key driver of this growth. We see that both the complexity mentioned by a few colleagues here, but also the clients' need for a partner they can scale with. And there, we have been the preferred partner for many of these clients. You will hear a comment from at least one of them later. Also talking about our portfolio in Global Clients, you saw Magnus sharing the split in our business between single service, multiservice and the integrated services. It's fair to say when you talk about our global programs, only -- you can say until 2022, we were on the global programs purely or more or less 99% security services. Only when we acquired Stanley, we got the capabilities and the credibility to then bolt on technology at a global scale. And what you see today is even just after a few years is that we have now started that movement that you heard Magnus talking about. We still have the vast majority of our business in single services and the security services, which we -- which I will go into a little later on how we are driving that single service business at quality and scale. But we are seeing a strong movement towards based on the trends that you have heard earlier today towards more combined multi-services than even the integrated services. So with all the capabilities you have heard about, today, I'm so excited to bring more and more clients on this journey, as you might understand. But let's take a step back because no matter how many capabilities we build, no matter how many services we can bring to these security managers in this complex world, we have to be great in each of our specializations. So the quality that we have seen being such an important component of winning with our clients. And in the Global Clients business, it has been at a scale that we needed to drive even quality at a consistent level. So driving that consistency with our clients, and I'm glad that one of our clients is here today now joining us as one of my colleagues. So I think that's a good statement that at least we have delivered something great. But what we then look at when you say what is required in the security services industry to deliver quality. We delivered quality through people. And the security services industry in many parts of the world is not regulated. We can have very big variances in the wages. But we have went -- we have gone into this when we established Global Clients, but also what we have done in many, many markets. In a quality strategy, you need to be the best employer. You need to attract the best people in the industry, and you need to train them better than your colleagues. And then you need to have to run that nice cycle. I will give you 3 examples what we have done different to the rest of the market. Maybe some of you remember, we shared the data center specialized certified training 2 years ago at the Capital Market Day. That has brought us into a position as the global market leader in data centers. But with the people working on these data centers, they are the best trained and some of the best paid in the industry. So we see higher client retention and higher staff retention when we do that. So all in all, a lot of clients find that attractive, not just the data centers, but we see a lot of other industries where you have high compliance, high regulations, but high standards. You look at the life science pharma industry, you look at the defense industry that is growing fast now. We even on the local level also see the critical national infrastructure. So we don't see us being only dependent on one industry here. We see a lot of industries requesting this. So we find that the superior quality recipe here has worked. And we bolt on our digital capabilities to that because we have to admit that not a lot of clients have unlimited budgets. So we need to make sure when we drive superior quality at a higher cost per individual, we need to make them more efficient than the rest. The best way to do that is to digitalize our operation. That's why the digitalization strategy that you have heard earlier today is so important because there, we drive efficiencies to our client. And a little bit on top of that, we become more AI-ready than the rest of the industry. So that's -- I'll come back to that. So when you have built that platform with your client, you build trust through superior quality, then the client opens up for, "Hey, what other services do you have in Securitas that we could buy." So when you have that approach and in a specialized business like ours, we decided in the Global Clients business to be very structured in the way we collaborate because you heard all of these complex things earlier today. When we go in front of a client, we need to come together. So you can't win with one client alone here. You need to bring all the experts in here. So that's why we have seen this commercial orchestration so important across our specializations. But then we also need, like Magnus said, we need to incentivize. So it promotes and recognize and also incentivize strong partnership across our commercial team. So that has been one of the key components. And I'm glad to say, like Magnus shared, this is now being scaled across our business to unlock the commercial benefits we have across our business. So let me now take a step back and let you also look at a few client comments here. These client statements, like you see, I'll give you a few seconds to read some of them. But reality is we have seen a trend now. We have seen a very, very clear trend in the client request and needs. You have heard it from Magnus and the other people here today, Matt and the team, the clients are asking more and more what -- how can you do to help us leveraging the benefit of AI. And driving from single service into multiservices, but even into integrated services is, in many clients' view, the only way they can leverage the full scale of AI. You can ask yourself this question. Who do you think will be best of leveraging the full scale of AI? This client #1 with one or very few partners globally across all the security disciplines or the client or the company 2 here with 50-plus security suppliers. How do you think -- who do you think would be best positioned to leverage AI? I think that's why you see some of our long-standing clients that I would say have been a single client of ours for decades now opening up is why you see some of our new, very new clients saying, we want to work with you. We know where we want to be, but it's a long journey. It's not something we fix overnight. But we start a journey today with many, many clients with an agreement on where we want to end. And then I'm sure a lot of things will happen down the line, new opportunities, but we call that for trusted partnership and intelligence-led. So with that, I feel we have proven that the combination of building superior quality in our single services, combined with structured incentivized commercial orchestration opens up the client trust, the clients' willingness to work with us and with the add-on to the capabilities you have heard about today. I can say I have never been more excited to be in this company. I think we are uniquely positioned not just globally, but also locally to win significant market share. With that, Micaela, I think need to hand over to you. It's time, I believe, for Q&A now.

It certainly is.

So I would like to welcome up the speakers from until now then. And we will take questions both from the audience here and please wait until you get a microphone and then please state your name and company. And then I will also try to weave in a few questions from the webcast. So please go ahead. Yes, gentlemen in the middle there.

Remi Grenu from Morgan Stanley. So the first question is a little bit to come back on this integrated service offering. Can you help us understand a little bit how the contract -- your contract structures are evolving to make sure that you can monetize all the services that you are offering to clients when you were moving from single services towards integrated services? And then the second question is probably on the AI capabilities. If you can share with us what is the feedback from clients, what they're focusing on? Is it about the quality? Is it about cost reduction that you're helping them unlock? And if you've got any kind of quantified KPIs on this cost reduction that you can implement for clients when you're deploying these AI capabilities?

Brian, do you want to take the first one?

Yes, if -- just making sure I understood exactly how we are building the contract with these clients. Was the question, right?

Yes.

So we are seeing initially in the contracting phase. And I have to say most of our new client relationship starts as a single service client. We are -- I would say 2 areas. One thing is when we build the -- in the last couple of years, many of our new contracts, even though we contract a single service, we construct the agreement that opens up for bolt-on of other services within our business and ultimately an integrated service. So we don't have to go through all the negotiation of contracting every time a client decide to bolt-on services. And secondly, we are incentivizing clients to do that. So we are building in even in a single-service contract initially, innovation and efficiency programs that really incentivize and also position the opportunity to drive efficiencies through multi-services but ultimately integrated services. And then I would finally say it is very rare that you can build that kind of contract in a traditional tendering process is normally happening when we have a client relationship but then start developing more risk based and consultative approach to a co-creation such as this in fact. So that's a little bit how we try step-by-step to build these relationships.

And I think just -- if you simplify that, you can say that if it's single service, multiservice, we traditionally then develop and also contract in a similar way as in the past. But what we're seeing with more and more of the clients that we are working with when they are saying that, okay, us sitting and orchestrating them as a customer, everything is becoming too complex. So we have a number of cases where they're now saying, help me and optimize all of this to what Brian just said. So it's more like an open book type of approach that would say this is the total security budget, these are the outcomes that we want to optimize for -- help us and optimize that. And I think that is the shift that we are starting to see but like Brian also shared, it's also a smaller percentage of the global clients. So we have that one, but it's definitely a growing importance. And I think that's very much also a reflection of the fact that security teams at the clients that they are also struggling to optimize this to be able to get the full kind of benefit. There was a second question about AI. And I think you asked about how do we -- or what are the kind of the metrics that we agreed or that we are searching for -- solving for.

Yes.

Yes. So I think when you look at that, when we are seeing, and this is typically that type of a dialogue. If we then have an existing solution, we see that there is real optimization opportunity. We will then sit down with the client also to what I mentioned before and say what are the outcomes that we are searching for. Some of the examples that Serdar shared when we have implemented AI or overlay AI based on existing camera infrastructure, if we are reducing the false alarms with 80%, 85%, that obviously means that there's going to be much more relevance in terms of where we spend the effort. That will also mean that, that could be a case so we can actually then reduce some of the on-site -- guards that we have on site. But we will typically then also leverage that to also invest more in technology. But I think those ones, that's what we're also now starting to build more and more use cases and also then becoming more able -- to also be able to tell other clients based on the first cases that we have done what are the kind of savings that we believe or that we are fairly confident we can help you and drive in terms of optimization and then reinvest that would -- that essentially be reflected in the lower cost of ownership.

Great. Next question. Yes, up there, yes.

Very informative. I'm James from [indiscernible] Group. And I just had a question on your margin expansion strategy. So I just want to get an idea of how much margin expansion you can get from your portfolio management because from my understanding, this is set to conclude in Q2 of '26. And the second question is after the first half of this year, how are the margins going to be expanded in the T&S segment? Is it through pricing? Or is it through volume or a bit of both? How do you hope to expand your margins?

So I'll give a brief answer because then I will let Matteo also share because he will go into a lot more detail. But I think when you're looking at the active portfolio management, that's obviously been a specific program that you correctly also highlighted, we're finalizing that in Q2. Henrik can comment on that in the next Q&A section. And that is important because then after that point, it becomes business as usual. When you're looking at the margin expansion, we will go into the growth algorithm and also what is underpinning the EPS target. But I think it's safe to say, and Matteo will share that later on, that we believe that we are very well positioned to drive continuous margin improvement from this point onwards. And that's a reflection of the fact that we are shifting also to your second question, more and more to our business towards higher value. We have more what we call recurring and scalable business with the recurring monthly revenue that is also then increasing as we become more connected, so the revenue shift is one. But then I also believe that we're well positioned, and we've already done quite a lot also in terms of leveraging also more modern and scalable platforms to also drive better efficiency in the existing operations. So we feel confident about the opportunities that we have going forward. And then obviously, when I look at technology and the solutions that we have been reporting for a number of years, we also see that there we are really well positioned also when we look at the demand that we are seeing in the market and where connectivity and technology is just becoming more important. So those are the main trends. But I will leave it to you, Matteo, to break that down also in some more detail.

Next question there from Simon in the middle here.

Simon Jonsson from ABG here. I have a question on the Data Center business in the Global Clients business. So can you talk a bit about how that is -- is it more single product or multi compared to the rest of global operations, you think? Or how is the share for data center customers specifically?

Yes. I would say it's, in fact, the majority of the 15% is in the data center space, where we have very, very unique capabilities of specialization, both in our security services and technology. So that has brought us into a lot of client relationship where we have that multiservice. But we also see a lot of data centers still procuring single service, but it's definitely a trend right now that more and more -- you saw one example up here, clients that maybe over a lot many years have really procured security services guarding separately from technology, they are suffering from the fact where most of new data centers are built today, it's in very remote areas. We need to find new solutions because we simply struggle to keep up with the need for labor. So I think it's a very open dialogue with these clients now, and we need to find the future solutions. And that's why they are turning towards not just because we are the leader on the security services side, but because we have the opportunity to combine with the technology and with the risk and intelligence now that can reduce the need in the future for too much labor to protect these data centers. And then I haven't -- we haven't thought about the next generation of the data centers in the space. But right now, they are primarily out in the remote areas. But that in itself gives a challenge there. So it's a combination, I would say.

Next question up there.

Victoria from JPMorgan. My question is on the Security Risk Management business. So when you win new business with your clients here, is this an activity that they usually did in-house before, like the risk assessment, the intelligence things or is this something that they didn't do before or they did with another provider? And -- so I just want to understand that dynamic.

Yes, some and some. So some opportunities are, as you say, to take functions that are being done in-house and to add more value by doing that in an integrated way. Some providers are not engaging services at all today. So that's new market opportunity for us. But as we look at what we're going to do in SRM, there's driving the 3 businesses forward that I highlighted and creating the synergies and opportunities between them to our customers but there's also the work that we're going to do for Securitas in enabling that integrated solutions to be delivered to customers because the revenue gain for SRM will be relatively small. It's the market share that Securitas will take. So we're an enabler for Securitas, but we're directly growing as separate businesses.

Andy here on the second row.

Andy Grobler from BNP. Two, if I may. Just firstly, when you talked about AI and technology and implementing it, to what extent is that deflationary to your existing revenues with that client? And how do you offset that? One of the client testimonials talked about it significantly reducing cost? And then secondly, just in terms of competition, you said you're uniquely placed, but there are others out there that can provide many of these services. What do you do to differentiate? And where are you seeing the greatest competitive change?

I think if you think about the deflationary impact, it's probably more related to the security officers that we might have on -- that we have on site. And I think that -- that one, I would say, based on what we see, you can look at that as a deflationary impact, but you also look at that as a real opportunity because when I look at our industry, it's very people intensive. Like Brian said, also just looking at the data center space, there's a lot of people who are engaged. We have consistently been driving also to say how can we enhance the productivity of our employees. And there, obviously, we see tremendous opportunity with AI to also make that happen. So I think that is kind of a counterweight. But if you're just looking at the pure optimization program based on AI, unless you're able to take a different type of a role, I think then you have a bigger impact. But the important thing today is that, I mean, we have one strong leg with our Guarding business. We have another one with the Technology business. Today, then also with SRM, we are able to take an end-to-end position. And I think that is what is taking us into the second point in terms of where we are different because when I talk to many of the clients and maybe not where Matt just joined us from, but if you look at the Fortune 500 clients, most of those customers, they don't have the expertise to design and to integrate and operationalize the program with a lot of different vendors. They just don't have the competence. So I think the competitive edge that we have is that we have tremendous value with our presence that we have, and that's obviously our security officers who are on site or mobile, I think Henrik has more than 10,000 [ cars ] in Europe alone, mobile officers. So that value itself in combination with technology and also then with the SRM and the ability to integrate and operationalize the program, that is what is making us unique because if I look at all the competitors are either Guarding businesses or they are in Systems Integration businesses. And then if you ask the last question, and you say, okay, on the software layer, then there will be different software companies and we can do quite a lot. But they don't -- I mean, they can then only essentially manage data, but not able to orchestrate the response. We take the intelligence to action essentially. And that's what we can do dynamically, but we can also then adopt that over time. So that's the reason that we are saying that we are unique and uniquely positioned to also benefit when we're looking at the next phase.

Okay. Gentleman up here.

It's [ Miguel Medina from Lighthouse. ] I have 2 questions. The first one is linked to the previous question when -- regarding the addressable market, you have a very dominant share in the traditional bid -- sorry, you have like a 50% share in the traditional bid and very dominant shares in the technology-led areas. How do you see those evolving over time? Are you going to be able to maintain that very large market share in both? That's the first question. And the second one is on regulation, which has not been mentioned during the presentation. With all these data analysis, AI implementation, et cetera, are there any jurisdictions that from your point of view, are more forthcoming or you are basically neutral in terms of regulation?

So I guess I'm taking that question. If you look at the different markets, so we talk about the USD 240 (sic) [ 245 ] billion security services, so that's essentially Guarding business. And then we have technology and SRM. When we are calling out what we say is addressable market, that is the market then out of the USD 240 (sic) [ 245 ] billion, we say it's roughly half, which is then around $12 billion essentially of addressable market for us. So -- sorry, $120 billion. So it's still very significant market. We have around $10 billion, $11 billion or something like that of that market today. So even if we are kind of cutting the market in half to say what is addressable, when you look at the market share, we still have a fairly small market share in that space, and it's very similar also in the technology space. So this is also -- that the nature of this industry is that it's still very, very fragmented. And when we talk about runway and opportunity to grow, it's that small type of market share, which is really driving the difference. On the second question, I think regulation, number one, anything that we're working with in terms of data, we're obviously working and putting a lot of emphasis on how we ensure full compliance. This is also something that we were leveraging the investments that we have made also in modern platforms because this is obviously about managing significant amounts of data every day that we heard earlier from Jonas. So I think that is one point. The other one, when we talk about critical infrastructure regulation and things like that, I believe that is positive for Securitas because it's just about strengthening the kind of the quality requirements. And when that is happening, I think we're also well placed to do that as a serious player that has always been focused on full compliance and quality. So I wouldn't say that regulation will be a negative thing. It's rather an opportunity because it will help and put more emphasis on quality and compliance.

We have time for one more question before the break. Yes. Oh no, Johan here.

Johan Eliason, SB1 Markets. I would like to ask about the financial targets you presented today, the 10% EPS growth, the cash conversion target, the debt ratios and policies, they are all good, and I do appreciate the improved cash conversion targets you introduced. But by and large, they are basically the same numbers that you had pre-Stanley. And then to some extent, it's the financial targets you had for a decade. And this Capital Markets Day could have been 15 years ago without Goransson talking about increasing the technology share and improving the margins going forward. But by and large, 10 years went on, and we saw nothing happening with the margin target. How do you make sure with these targets? Yes, you do still have this 10% margin target longer term, as you mentioned, but you didn't present it in the slide itself. How do you make sure that we still can expect margin improvement over this period? For example, I mean, what will stop your managers taking on a new contract like the critical infrastructure just to make sure that the EPS growth will be fantastic when this new big contract comes up with a 2% margin or whatever. I think the margin target in itself is important because it gives robustness to your earnings. Investors like that. And it also tends to give companies with higher margins a better valuation profile because it does show the moats that you have from your competitors.

First of all, I think we are a completely different company today compared to 10 years ago. When we decided in 2022, when we acquired Stanley, I think that the lack of credibility we had was that we have been talking about higher margin opportunity as we were shifting significantly bigger part of the business towards technology and solutions. But it hadn't -- I mean, we haven't really shown it. So a very important decision that we made in '22 was that we said, well, we're going to make that 8% operating margin target. That's the main target because we need to show that we are capable of driving that shift. And that I have to say is really good because when I presented those numbers in '22 and when we asked people in the audience after, most people are saying there's no way you're going to get to 8% without shrinking the business. And we have actually grown the business, and we have expanded the margins. And that's obviously based on the capabilities that we have, but it's also based on the great work that our team has done. I think when you're looking at the next phase, our thinking is that now we are in a significantly better position, much more focused, and I didn't mention that earlier in the morning, but we have also divested or closed more than $1.2 billion worth of business just to sharpen the business so that everything that we have is fully consistent and in line with the strategy. We have capabilities in technology, security risk management, but we also have a Guarding business, which is in a much, much better shape. And I think that's something Brian also shared good examples from the global clients. So the next phase is more about -- I think we're in a better position now to also then optimize. And that optimization is essentially assuming that we will have continuous margin improvement, but also then shifting focus on growth of the entirety because that is obviously what is adding value in the end. And then to your very specific question, Johan, we have also constructed the incentives in a way that will prioritize profitable growth and going downwards in terms of margin just to chase some volume, that mistake, we will never do that again.

And by that, we conclude the first Q&A session, and we're now having a long break of 60 minutes. And I suggest that we meet back in here at 5 past 11 to recommence the Capital Markets Day. But a few instructions before you move. On your badges, you are -- you have a group number of 1, 2, 3 or 4. And group # 1 and 2 can now go to the first demos. And group #3 and 4 can go and have some coffee and do some mingling. And then you will switch and you will be shown where to go, but the demos are over here. So see you in 1 hour. [Break]

Very good. So great to see you back, everyone. Just before I introduce Matteo, I also wanted to say I realize there were a lot of questions in the 2 demo sessions on end-to-end digitalization, also on risk intelligence. All of us will be here between 12:00 and 1:00 so during the lunch. So for those who didn't have the chance to ask questions, we would be happy to address those as well. So now we have the last part of our presentation today. And now looking forward to welcoming Matteo on the stage. And just like Matt, Matteo joined us on the 1st of April. And when we were looking and I was looking for a CFO, which is very much also a key partner in terms of driving the business, I was looking for someone who had obviously genuine good financial experience, but also somebody who had been preferably working and operating a leading service organization. And that was a little bit how I found Matteo or how we found you, I should say, with a number of years at up at Atlas Copco. And many of you probably know that as an industrial group, but we also have one of the leading service organizations across any category in the world. But then Matteo just joined us most recently from ASSA ABLOY, where he was also then leading a significant business in the EMEA region. So with that, warm welcome, Matteo.

Thank you, Magnus, for the great introduction. I'm really happy to be here today. My name is Matteo Dall’'Ora, and I'm proud to represent Securitas as the new Group CFO. I spent in my career not only on financial roles, but also on businesses roles, always with a strong focus on customer and business performances. For me, finance is not just about reporting numbers, but actually using them to drive business decision and strong performances and ultimately, more value for our customers and our shareholders. And this is exactly what attracted me here in Securitas, a company with a very strong legacy and performances, a very good market relevance and a significant untapped opportunity. And I think what we have seen today for all my colleagues highlight the scale of opportunity that we have in front of us. In my first 2.5 months with the company, I had a chance to meet a lot of our leaders and get a better understanding of our strength, but also the area where we can improve further. And what stands out to me is that we have a very committed leadership team with a strong focus on customer and that also work in a very -- they work on a journey to improve the company and position our company very well for the future. So what I will show you today is that we have a company with a much stronger financial performance with a very clear value to create more value to the company and that we have disciplined path to deliver profitable growth. But before I deep dive into the future, allow me to spend a couple of minutes talking about what changed in the business in the last couple of years. In the last few years, we have significantly strengthened our financial profile. We have improved our return on capital employed by more than 60%, reaching a great level of 16% for the total business at the end of 2025. We doubled our free cash flow from SEK 3.4 billion to SEK 6.8 billion. And in 82% of our market, we have improved our profitability of more than 50 basis points. From a group perspective, we have improved our operating margin for more than 1.4 percentage points, reaching a 7.4% operating margin for the full year 2025. And if I exclude the SEIS business, 7.7%. As Magnus also highlighted earlier, we continue to focus on recurring revenues, reaching SEK 1 billion, and we know that this kind of business is also very good from a marginality point of view. And we continue also to improve our operational efficiency with an improvement of 30% in revenues versus employee compared to the 2022 period. So overall, this reflects a business that have become more efficient, more profitable and more resilient. Now when I look back and we look at the communicated external target, I think also we have delivered very strongly. We reached an average of 8% real sales growth in Technology & Solutions business. It's also true that if you look at the full period, in the first part, we have delivered a much stronger growth. In the second part, we're lowering a bit, but still reaching an average of 8% over the period to position ourselves in a very good position for the future. We delivered for the last 2 quarters of 2025, an average operating margin of 8.2%, and we continue also to deliver a very strong cash flow and this averaging of 81% over the '22-'25 period. We continue also to be stronger in our financial position, delivering a 2.1x net debt to EBITDA at the end of 2025. And in the period also, we continue to pay out a good level of dividend to our shareholders on an average of 50%. So overall, we have delivered on our commitments, and we are now in a much stronger financial foundation. And this put us in a very good position for the next phase. Over the past year, we have been working in stabilizing the business, completing the STANLEY acquisition. We are working on an active in strategic portfolio assessment, and we have also exiting markets that did not fit the long-term strategy of the company. At the same time, we have improved the profitability with active portfolio management. We are creating more efficient with transformation and optimization program and the realization of the acquisition synergies. We have invested and modernized the business, and we have now a much stronger, more focused and more resilient business. With this foundation in place, we are ready to enter the next phase, accelerating profitable growth. leveraging our portfolio, strengthening our value proposition and improving our customer retention. I'd like to repeat what Matt Ellis said earlier. There is no other organization in the market today that can deliver intelligent capability, technology, operational efficiency and presence to deliver this solution in a scalable and repeatable way. I think this is a significant opportunity that we have in front of us. Now as Magnus introduced earlier, I'm glad to present our new financial target for the next phase. We decided to make our targets sharpen and more ambitious. But let me start first with the operating cash flow. We increased our operating cash flow ambition from 80% to 90%. After achieving, I show you a few minutes ago, 81% on average over the last period, we decided to increase the bar because we have the fundamental to do so. We strengthened our capital structure, targeting our leverage below 2.5x net debt to EBITDA, and we want to continue to deliver to shareholders a good payout in terms of dividends between 50% and 60%. Now let me explain why we have decided to change the target to EPS rather than keeping Technology & Solutions and operating margin as a main target. The target typically reflects the strategic phase where the company is in that particular moment. And the previous phase, we knew very well our target. We wanted to effectively integrate STANLEY acquisition. We wanted to become the leader in technology solution, and we wanted to achieve an 8% margin by the end of 2025. So now the company is completely different. We are more stronger, more resilient and more profitable, and we are now ready to enter the next phase. And that's the reason why we decided to have EPS as a core target. EPS brings everything together, growth, profit and margin, capital efficiency and capital allocation. So this is the best measure to understand whether we are creating value for our shareholders. But let me explain now how do we want to deliver the 10%. We want to deliver the 10% from 3 main drivers. The first one is about growth, which will impact roughly half of the growth that we are expecting on the EPS. We aim to grow organically by 4% to 6% per year, which will allow us to increase our market share. We have seen earlier from all my colleagues that Securitas today has all the components to deliver an intelligent-led security at scale. Second is about margin improvement, which is about 4% of the total 10% on EPS. We want to continue to expand our margin by 20 to 30 basis points on a yearly base, driven by efficiency and mix. The cross-sales and upsales opportunity as well as the integrated services will increase the mix. And we know that this mix is more profitable. Therefore, we will improve our marginality. And [ Joergen ] coming back to your question, we want to grow in a profitable way. We will not go back as before. We want to continue to improve our marginality at least by 20 to 30 basis points on a yearly basis. I think it's important to remind, Magnus said it earlier, our long-term ambition is to be a company of 10% for the group on operating margin. And the third, but not least, is about capital allocation through disciplined deleverage of our financial position, but also value-accretive M&A. This is not aspirational. We have seen from all my colleagues that this is happening already today, and we are able now and we want to scale it up further. We have seen also from Magnus that we operate in a large and growing market. Today, the security market is about USD 300 billion. And the serviceable market where Securitas wants to operate is also large. It's about $200 billion. And we have a fairly low market share overall of less than 10%. I think it's also important to say that the market where we operate is not a mature, it's not a low-growth market. It's actually growing more than the GDP in all the geographies where we operate. So the combination give us a significant headroom to grow across all the region. Combine this with our strong value proposition, give us a solid and credible foundation to deliver sustainable profitable growth in the range of 4% to 6%. The opportunity is clear. Now it's about to convert in this through disciplined capital allocation. And we want our capital allocation to remain disciplined and consistent. We maintain a strong balance sheet, and we aim to have a leverage below 2.5x net debt to EBITDA. We will continue to invest in organic growth, and we know that the mix towards technology and more integrated services will drive the growing CapEx. But on the other hand, we will continue to work on efficiency to keep the CapEx below 3% of sales. We want to continue to return a strong payout to our shareholders in terms of dividends between 50% and 60%. And at the same time, our financial position will allow us to restart the M&A activity and targeting a growth of 1% to 2% on average per year over time. And if we are able to generate more capital, above all the priorities that we have discussed about all the priority -- the growth priorities that we have discussed, we will return it to shareholders. But let me spend also a moment how do we think about M&A going forward. Our approach to M&A will be discipline and focus. We aim to build a consistent value-accretive machine, contributing 1% to 2% annually growth on average over time. We will prioritize technology bolt-on with focus on recurring revenues and synergies potential. We will look at geographic expansion where we'll strengthen our position. And together with Matt, we will also look at opportunity in the security risk management area. All acquisition must be strategically relevant and EPS accretive. Timing of accretion will depend on the assets that we are going to purchase, but discipline and value creation will remain nonnegotiable. So all in all, this brings together all the elements of our growth strategy. I think it's needless to say, but I'm truly proud to be part of this company and more excited to what is coming in the future. Over the past year, we have strengthened our fundamental, improved profitability and build a more focused and resilient business. We are now ready to enter the next phase. The fundamentals are strong, and now we scale a profitable business with discipline and clear focus on shareholder return. Thanks for listening.

And now we are ready for the next Q&A session. And I would like to invite [ Magnus Henrik ] who is our Divisional President for Europe; Jorge, who is Divisional President of North America; and Tony, Global President, Technology up on stage. And we have the first question coming from Remi Grenu from Morgan Stanley here in the middle.

The first one is on the North American market and the competitive landscape there. I think looking at some of the data from industry provider, it feels like you've lost a little bit of market share over the last few years. So first, is it something you recognize? And if so, how are you thinking about the competitive landscape there and to win market share from your competitors in that geography? The second one is on the 4% to 6% organic growth algorithm. If you can help us maybe understand a little bit of the building blocks between the different divisions, Security Services, Technology & Solutions, for which you previously had a guidance for revenue growth. So if you can help us understand a little bit the drivers there. And the last one is on M&A. So 1% to 2% of sales per year. Is it possible to have a broad idea of an envelope of investment you will need every year to kind of reach that 1% to 2%? Or if you can help us a little bit steer the discussion on capital required for that M&A ambition?

Jorge, do you want to start on North America?

Yes, thank you. It's a good question. And the way we see it on the services side, we have a huge opportunity for growth in North America. So the data when we look to external data, we can have 10% market share. And strategically, we are changing our go-to-market. When we look to the client segments where we see that our strategy fits, we -- our market share is really low. So we have been measuring that, and we see a huge improvement and opportunities on that. I don't know if the technology you want to comment on.

No. As far as the technology business, what we have seen is with the STANLEY acquisition and the combining of our businesses globally, we are actually -- and with our organic growth, we're actually sitting in a very strong market position. Clearly, either the #2 or #1 commercial electronic security provider globally.

And I think on the 4% to 6% organic growth, one question, if I understood correctly, was help and share a bit where is that coming from? I mean if you can look at that in different dimensions. One is we are in a really good position to win and to grow with existing clients. So I think that is one. Second one is obviously also with the strength of the offering that we have, we have really good opportunity to also win new clients in light of the kind of the security context that is developing. When you're looking at the data, my expectation would be that we have a higher growth rate in technology, higher growth rate also than in security risk management, but still a healthy growth rate on the Guarding business because the Guarding business, and I also realized the interest in the breakout session, we are building a really high-quality operation. We're trying to address a number of the key points that have been weaknesses in this industry and it was more volume-based. And the exciting thing is that the presence that we have and the people that we have, they will be as important in the future as they've been in the past. I would argue that it will be more important because we can also invest more, which is what we are doing. So that is a little bit the kind of the perspective between the different business lines. But then I would also say where we have the majority of our presence, we see good growth opportunity in North America, similar in Europe, similar in Ibero-America, but also then in the EMEA region, which we report under the other segments. There, we have a very significant market, but fairly small business in comparison, but we also see slightly higher growth rate in the market. So I think that we are quite well positioned with the geographic footprint, but also the service lines that we have in the business today. Then we had on M&A.

On M&A, I think for M&A, we are working hard to build the pipeline, first of all. As I said also in my presentation, we want to be disciplined and value accretive when it comes to M&A. So -- and of course, the time of accretion will depend on the asset that we are going to buy. So it's very difficult to give you exactly the multiple that we're going to pay for the acquisition. But again, we want to be more disciplined and more focused and value accretive on M&A going forward, prioritizing on technology bolt-on geographic when it makes sense. And also with SRM, we just did Liferaft. So I think we need to make sure that we function there and we go and then we can look ahead as well as other opportunity over there.

But I think if I look at the technology business and what Tony is leading, when we acquired STANLEY, we doubled our technology business overnight. And we built fundamental capabilities where it really matters the most. I think the important thing that we see today is that today, we have done a deep integration. We have built common systems. So we have a really good platform. And from that perspective as well, we can also afford to be more selective about where do we drive investments in terms of coverage and density when you look at systems integration and maintenance, for example, or which are the spots where we then also say that here it will be beneficial also in relationship to the clients that we also strengthen our presence. So we are, I think, in a much better position today compared to a couple of years ago, thanks to the fact that we now have a strong and scalable platform.

Good. I'm actually going to take one quick question here from the webcast. What are the main levers to achieve an operating margin before amortization of more than 10%? So the 10% operating margin ambition, what are the main levers to reach that?

So I think if you look at the growth or the growth formula that Matteo shared, in a way, if we are successful in delivering the 20, 30 basis points every year, obviously, we're going to get there in not-too-distant future. So I think continue to refine how we are running the business, continue to also then tap into the synergies in terms of higher-value business, which is more in the technology, more in the connected space, more in the SRM space. but then also continue to drive real operational improvements in our Guarding business. And there, I mean, when I look back at 2024, when Henrik and Jorge and a few others were then presenting, we have done tremendous work in the services business and improving. And we also see continued opportunity to drive improvement. And that's obviously based on new ways of working, modern platforms and also driving that kind of productivity improvement that Matteo highlighted. So I think those are the kind of the organic things that are really within our own control. And then obviously, Matteo also highlighted acquisitions because we are in a very good position also to accelerate also acquisition activity, but always then with really, really high discipline.

Yes, [ Dan Hammer ] here from SEB.

A couple of questions from my side. Maybe starting with the 8% technology growth. Do you have a firm view of what the market growth has been during this period? And I know construction activity has been quite dampened. And that's typically when you do some bigger installations at least security systems. So what's your view of your performance versus the market?

Tony, do you want to cover on the installations market?

Yes. I would say we have been performing at or above the market. In the Q1, we were actually down, I would say, and that was really a temporary pause because we have seen a real strong order and also a growth in the backlog, which for installations, you could see a cycle with the larger installations having different cycle times. So anticipate that we'll be back at where we have been historically.

And I would say to your comment on as well is if you look at North America, where we have the best data in terms of installations, we also see a bit of 2 different types of situations. So a lot of the kind of normal business and normal industry, I mean there, it has been subdued, like you said, in terms of construction and activity. On the other hand, in the data center space, there has been very significant and healthy activity. So it's been a little bit 2 stories. But I think that when I listen to the clients and also see what we are gaining in terms of our order book, we are in a good position. And I don't see a reason why we should not be able to grow as market or faster than the market on a sustainable level for many years to come because we also still have -- even though we're a leading position globally today, we #1 or #2 type position, it's a very fragmented market. And more and more clients are also looking for a stronger partner who can help them and drive this integration and then also operationalize how we work.

Maybe a final one, if I'm allowed to. In terms of the 10% EPS growth target, it excludes ISCs, and you invested quite significant over the last couple of years in terms of modernizing the platform and making it end-to-end digitalized. But in order to keep up the same state of the platform, what sort of investments do you foresee here for -- to deliver on 2030 strategy?

Do you want to start?

Starting first, maybe a comment. You haven't seen ISC comments in my presentation because I think we want to live it in the past. What we believe now we are reaching a level that we will not go above level of ISC. So today, we have one program over there, and we are not forecasting to go above that level going forward. So that's why that will be less relevant, I would say, for the future. When it comes to transformation, I think the company has been transforming over this year already a lot, and we will continue to invest and modernize the company. But I also said that we will invest in organic growth, and we will keep our CapEx below the 3% of sales. So it's not that from now on, we will have to invest a huge amount of money because we have already done this, and we have a very good platform to continue to do that.

And I think if you take a historic perspective in 2018 and '19, when we had the Capital Markets Day, we talked about this type of a future that we have shared this morning as well, where the winners and the winning combination is going to be a combination of people of presence and technology and data. But we also realized back then that we were quite underinvested and not capable enough in terms of modern systems and platforms and being digital. And so I think that it was also a very different starting point. So now we have done a lot of those investments. We obviously also intend to leverage those capabilities also in the next phase. And I think that is also something which I understand as well that we have received many questions throughout the years, how much are you going to invest, but it was very much based on the vision that this is what it's going to take and the capabilities we have today to really win and to win big in the next phase. So I don't really regret any of the investments. I'm really grateful that we are through that period. But -- now then that's why we're also saying that we believe that we're in a good position to then shift the focus from more kind of transformation-related work to really driving growth.

Yes, Andrew Grobler here again.

Just a couple from me, if I may. Just if you hit all of those targets in terms of the growth and the margin and the cash flow, even with the M&A, you're going to be -- your leverage is going to come down. At what point do you start either increasing the dividends, share buybacks, special dividends? Is there a point in time when you make that decision? And then secondly, just a small one. In terms of the data center business, which you've talked about several times. Can you just quantify how big that is? And in terms of the profitability, where that sits relative to the group?

I think give you a specific timing, and it will be difficult. But as I said also, if we have excess capital above all the priorities that we put in place, then we will give it back to shareholders. So this is our intent. And like I said, we will -- with this element, we will probably have a leverage, which is lower than the 2.5. But also, I believe that we have the duty to invest in this company. We have a great return on capital employed. I think we have the opportunity to make good investment as well in Securitas going forward. But to give a specific timing, I think it's a bit difficult, but we will definitely return to shareholders if excess cash will happen.

And then on the data center business, I'm looking at you, Brian. I think we are approaching double-digit percentage of the total sales in the business in the data center space. And so it's a significant part, but it also shows the diversification that we have across the entire business. So it's not a dominant part in any way. But I'm glad that we were also very focused and targeted in terms of really doubling down that space because there, we are -- it's a great example that Brian have shown where we have also been able to grow together with the clients and very well positioned for the next phase.

Yes. Yes, right here and second row.

Geoffroy Michalet from ODDO BHF. From your conversation, we have the feeling that most of the growth is coming from one pool of clients, which are the blue chip clients. But could you give us a sense on how much do you think it will contribute in the future and how much the smaller, let's say, midsized clients will contribute to the growth and margin as well?

I will then give the opportunity, I think, to Henrik, Jorge and Tony to just give a flavor because I think this is a very relevant question as well. So maybe just some perspectives on your side.

So I think you're right. In the last couple of years, the global clients have been growing very, very well, while we, at the same time in Europe, as you know, have done active portfolio management. Now we're coming to a different phase. So while I believe that, of course, Global Clients will continue to grow as presented by Brian, also we will come into a space now where we can also go back to profitable growth to make sure that you exit that program and focus more on the delivery, especially with what Matt will deliver together with Tony and team and technology, we are in a different position now to go to the market. So I'm convinced that also those parts will grow healthy in our business.

Yes. In North America services side, we are really focused and take advantage and harness the good practice that we have in global clients to look across the markets. And we are changing the commercial organization now to really looking for synergies, sharing best practices and how to go to market in a more efficient way. So we are really using different enablers, digital marketing, so using external data to really reach the market because we strongly believe that our growth needs to be coming from other parts of the marketplace, not only focus on the blue clients. But when we talk about data centers, I think it's important to highlight, we are growing with our clients, not only on the data center segment. So the hyperscalers, they have corporate, they have other contracts, we are growing together. So this is really a partnership, a journey with our clients. But yes, the focus is really take advantage of the good practices, what we are doing great in this focus on global clients and drive that to the local and regional clients, national clients with a huge potential also.

And from a technology standpoint, maybe a little bit different. We established our global client program in the technology business in 2022 when we announced the STANLEY acquisition. So you may remember that. And it has been growing very successfully, as Brian mentioned, in partnering with the services at a Global Client program. So it has had good growth. But we also have a large part of our segments across the globe that are in local businesses, commercial businesses, also in regional or national kind of clients that maybe aren't global in nature, but have multisite. So across multiple verticals, multiple industries. So that diversification has been important for us. And so we're looking at driving growth across all those different sales channels.

And I think that's the beauty of the business as well. So I mean, if you look at the installations business that we had questions on before as well, I mean we're designing and integrating solutions for some of the most iconic buildings in the world. But then at the same time, Tony would also remind me that if you look at an average job that we have, that could be in the tens of thousands of dollars and not in the millions of dollars. And this is really where the strength of the business model is coming in because it's not only that we are very good at the highly sophisticated. We have built coverage, we have built density to also then be able to do this. And this is obviously one of the most important themes that the 4 of us are discussing also together with Ibero-America and AMEA as well is how do we then also leverage these capabilities now to also then introduce more technology to a significant client base that we have. Because if I look at Jorge and Henrik, they have really healthy business in the SME segment and in the midsized segment. And those are obviously 2 segments we don't talk about that much today, but very important parts of our business and where we also have good opportunity to drive solutions or installations work, but where we then also have a recurring revenue through the maintenance work that we're doing over time. I hope that gives a flavor to the question.

Yes. Simon, again there.

So you talked a bit about bolt-ons in the technology segment in your M&A targets. Can you elaborate a bit on what kind of specific companies would that be? Would it be installation companies, integrators, hardware companies that own products? Or what kind of bolt-on opportunities do you see?

Tony?

Yes. So obviously, as we mentioned previously, the industry is highly fragmented. And so there's -- it's a great opportunity for bolt-on acquisitions. The bolt-on acquisitions, I think, Matteo, you actually mentioned it, we look for obviously having a recurring revenue element within the business and not just an installation, not just an integration business. So one that has a healthy mix of revenue and that could be accretive to the profit profile that we have for the business. So that could be in different geographies where we're trying to actually build scale or density even further than what we have in a particular market. So -- or it could be open new white space somewhere where today, we may not have a physical presence. Anything else you'd add, Magnus?

I think it's just the scalability because we're -- I mean, what Tony and I were discussing a lot 4 years ago when we bought STANLEY is that it's so important that we integrate. We do deep integration. We build common platforms, common ways of working around the world because when we have done that, it becomes a lot easier and also more predictable when we acquire something. And I think that is why the bolt-on acquisitions will be really attractive for us in the next phase because we've done a lot of the heavy work now. And -- but we obviously also STANLEY acquisition was a real catalyst to build really critical mass and scale and now obviously looking forward to them just continuing to strengthen that capability.

Allen Wells in the middle there from Jefferies.

Allen Wells from Jefferies. I just wanted a quick follow-up on the organic growth targets. Obviously, the business has been focused on margin recovery in recent years, and you've seen directionally some slowing in growth in the last couple of quarters as well. But when you think about that 4% to 6% organic growth target, do you need to invest in the commercial functions in the business to get to the top end of that target? Are there parts of the business that just needs a bit more investment to push to the top end? And then within that 4% to 6% target, how do you think about the price volume mix within that versus what we've seen in the last couple of years? And then finally, could you provide a little bit of color around the pipeline of opportunities? Has there been a structural shift in the scale interest within those -- the projects that are coming in that gives you the confidence that 6% is now attainable when it wasn't? Or is it more just the attrition levels as you reduce the kind of portfolio rationalization drop away that, that can drive acceleration?

I'll try to ensure -- remind us if we don't address all the questions here. But yes, I think stepping up our commercial focus is probably going to be a combination of the focus that we are driving because to drive the amount of change that we have been doing has been consuming quite a lot of effort also internally. So I think now being able to shift more focus on real client engagement and developing the business -- that has been an important theme, I would say, among these leaders over the last 12 months. And that's always something that we always build long term and kind of gradual. But we probably also have an opportunity. We had one Board member for many years who said, when you're thinking about the business, do you have a sales kind of focus or a product focus. And I feel that when I look at the product and the value proposition we have, starting to become so strong now. So we're also just keen to be able to get that message more out there as well. And I think there enhancing the commercial effort is going to be important. If you're looking at the growth, I would say, on this one, I mean, we are expecting a few percent in terms of price or wage-related increases. No doubt also going forward, we also see that we are through that kind of hyperinflation period that we had after COVID, but that we're then also growing real portfolio. So real volume or what we call net change is also positive. I think that has to be -- it is a really, really important part for us going forward. Any other flavors on that from your side?

Yes. I think, yes, you have mentioned the price increases and the new capabilities and the focus on sales. But yes, we have been talking about these new tools that we can use and enable us to grow. But I think it's important to highlight our consistent on delivery. We have been a lot of investments global -- we have a global framework. So we have been working on direction and alignment. If we deliver -- and Brian, you have covered very well on that point. If we deliver superior quality, we'll retain better our clients. So with price increases, more sales and retain our clients, I think the 4%, 6% growth, we don't need to do investments to naturally and organically achieve that.

Very important point. If we don't see client retention gradually improving, then we are doing something wrong ourselves because we're going deeper, it's more complex engagement and significantly higher stickiness as well. So I mean I think that -- yes, that is an important point, Jorge, where obviously, with active portfolio management, et cetera, it's -- we have been hurting, but we are now switching back to kind of business as usual.

And I think the last question was on the pipeline, I think as well. And on the pipeline, we see a strong pipeline, and we've had a strong pipeline. It has been that we have actively said advise clients who were not prepared to be on the journey with us. But we continue to have that pipeline. And it is, as Magnus said, there's been some internal focus to make sure that we can either elevate the value or exit those contracts. And now since we are coming to the end of that, we can have the full focus to building that pipeline. But the pipeline has been quite strong at the all-time.

Okay. Just up here, right.

Short one on working capital. Given the higher weight of large clients, also you're placing a lot of emphasis on recurring revenue. Are you anticipating any change, any improvement in the working capital is going to remain roughly similar to what has been for the past 2, 3 years?

I think we will continue to work on improvement on our working capital for sure. We have still opportunity to improve our DSO overall. But I think we will maintain our capital -- our working capital levels similar to what we had, trying to get efficiency over there on time to time. But yes, so the improvement will be there for sure.

[ Victoria Chang ] here in the middle.

So on some of your new technology offerings like digital twin, intelligence software, AI models, et cetera, like that, I assume a lot of these propositions won't just need an initial investment. It's ongoing technology costs that you might pay some external vendors for, et cetera, et cetera. So given that, do you see the mix of your OpEx changing in terms of variable versus fixed costs? Or do you expect inflationary pressure and ongoing technology costs as well in the medium term? And how do you seek to offset that?

Yes. I think that the mix -- I mean, the base is there from a technology point of view. I think after the STANLEY acquisition over the last 3 years, we have created a very good base. So I don't expect the mix from OpEx and CapEx changing that much. And you will see also in our numbers today. We are below the 3% CapEx overall. When we look at technology and solution of this part is 15%, 20% of our CapEx. A big part is still related to IFRS 16 and then all the other things related to the CapEx we have in our company. So I feel that we'll relatively stay within that level. Although as I said also before, the cross-sales and upsales opportunity that we have in integrated services will drive our CapEx a bit up, but we will also work on operational efficiency to maintain the CapEx below the 3% of sales.

And I think it's important to emphasize, I mean, we are technology agnostic. And this is fundamentally important for our clients because today, there is no short kind of scarcity in terms of promising technologies or new hardware, new software, new AI, et cetera. The biggest question for the client is more, okay, what makes sense for me? And how can I get help in integrating and operationalizing this. But a lot of that development cost, that's obviously residing with the partners that we are working with. And I think Serdar shared that. And this is a big part of what Tony is doing in the business as well. It's also then who are the technology partners that make the most sense for which types of clients. So I think from that perspective, we're not standing with the risk or the kind of the investment bets that are being made. But where we are investing in our own intellectual property is more in the digital layer and the data and the information that we are generating in the business because that is tremendously valuable as we are shifting towards an intelligence-led business. But that's obviously investments that we have been making for many, many years and that we will continue to make in the years to come as well.

And by that, we are running out of time. We have 30 seconds left. So it's a really quick question if we're going to have the last one. I think by that, we leave the stage for Magnus and some concluding remarks and the rest of us leave the stage.

So just to wrap this up now, I sincerely hope that this has helped and give you a better understanding of how we see the security market evolving. It's an exciting phase. Like I said at the beginning, I think we are well positioned to benefit but we're also really well positioned to take a leading position in the development of this industry in the years to come. And when you're going a few years back, we have delivered on our transformation. We have delivered on the financial targets. I think we also now have a really good foundation to start focusing on driving growth. And when you think about the business, and we were coming into that also in the Q&A session now, we also have tremendous strength in the resilience of the business and the diversity of the business. So we are no longer depending on just one particular service line, not on one geography and also not on one vertical segment. And I think that is important because we have multiple ways that we can then start to grow with our clients. And I think we've also shared that today that the clients are also increasingly saying this is more complicated. We need a more capable partner who can really help us be the trusted partner on this future journey towards intelligence-led security. And the markets, they are large, but they're also expanding. And I think that's something that we feel really good about since we have 100% focus on high-quality security and safety. So we have proven that we can transform. We have really significant runway for driving growth and driving that growth as the leader in intelligence-led security. So I think from this position, the next phase is a lot more exciting than the last phase because we continue to build a more competitive business. I also got the question a couple of times during the break today in terms of the barriers to entry. I think they are clearly increasing because this is becoming more complex and the combination of the different capabilities is becoming critical for the next phase. And then obviously, with high barriers to entry and then also a more resilient business, we're also in a really good position to create better shareholder value. So from our side, we're going to be around for everyone who's in the room for the next hour. But I just want to say thank you for joining us today and for being part of the journey. Thank you.