Annual Report 2008 - Securitas

Leading the Specialization
in Europe
Organization
Security Services Europe provides specialized
guarding services for large and medium-sized customers
in 23 countries, while Aviation, part of the
business segment Security Services Europe, provides
airport security services in twelve countries.
Security Services Europe has a combined total of
more than 800 branch offices and over 110,000
employees.
Strategy and objectives
The overall objective of Security Services Europe
is to grow in line with the market average and to
see yearly profitability improvements. This is to be
achieved by specializing in specific customer segments
and offering tailor­made security solutions.
The growth strategy is supported by selective
acquisitions and the long­term objective is to have
an operational presence throughout the EU. To support
the growth strategy, a specialization process is
ongoing, and in 2008, a new competence center for
Public Transportation was added to the two existing
centers for Retail and Maritime/Logistics. The purpose
of these competence centers is to strengthen
cross-border development of certain customer
segments. Additionally, we have strengthened our
structure for global accounts to proactively coordinate
our services for customers with a European or
global security need. In this, we cooperate closely
with Security Services North America.
Market and competition
The market for outsourced security services
(excluding mobile and monitoring services) in the
countries where Security Services Europe operates
grew by 6–8 percent in 2008 and reached a value
of BSEK 158. Securitas has a strong position in the
European market and is the market leader in eight
countries and second or third in another eight. In
2008, Security Services Europe’s market share
remained at 17 percent (17). There are almost
22,000 security companies operating in Europe
with a total of nearly 1.1 million employees. The
market is still fragmented and most of the companies
are local players, competing mainly on price.
The main competitors are G4S, operating across
Europe except in Spain, Portugal, Germany and Italy,
and Prosegur, mainly operating in Spain, Portugal
and France.
Customers
In Europe, Securitas is the leading company in
the security market. We service a wide range of
customers in a variety of industries and customer
segments. Our organization is capable of providing
service for customers with a Europe-wide need,
as well as customers with a very specific need.
Customers range from governments, airports, seaports,
logistical suppliers, manufacturing industries,
insurance companies, shopping centers, retail
chains, hotels, hospitals, universities and museums
to event companies. In 2008, we signed several
new medium-sized contracts in all countries of
operation in and across our various customer segments.
No large contracts were terminated. Our
services for the Oslo Tollroad contract were reduced
heavily due to the introduction of an automated,
intelligent charging system by the customer. In
Romania, a large contract was signed with an oil
and gas company. Contracts are usually signed for
a minimum period of one year and are renewable
each year, normally for a period of three to five
years. The client retention rate in 2008 was stable
at an average of about 90 percent.
Service offering
Customers in various customer segments tend to
have increasingly specialized needs related to the
specifics of their industry. This requires a strong
ability to provide tailor-made solutions and a deep
understanding of each customer segment. Securitas’
solutions are developed in close cooperation with
customers locally and often include elements of
technology, in addition to specialized guarding.
The combination of specialized security officers
and various security systems provides our customers
with flexible and cost­effective security solutions.
Securitas acts as coordinator for the customer by
being the single point of contact, combining the
elements specified above and partnering with subcontractors
on specific requirements. We share our
knowledge and solutions for various customer segments
across Europe. As an independent organization
within the business segment Security Services
Europe, Aviation provides specialized services for
airports, airport-related business and airlines. The
services range from security screening of hand and
checked baggage to cargo security, document profiling
and aircraft guarding and search.
Presentation of our business
Security Services Europe
Securitas Annual Report 2008
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