Securitas AB Annual Report 2005

The Group – Comments by the CEO
Dear Shareholders,
Last year I concluded my remarks in the annual report
as follows:
“The changing demand and the evolving market have
created businesses that didn’t exist two decades ago,
such as cash management and affordable quality home
alarms. This has created new business opportunities,
new companies and new industries. The security market
will continue to develop and open up new opportunities
to companies that are focused enough to see, understand
and capture the trends.”
This dynamic has now led to one of the most important
decisions in Securitas’ history. In February 2006, we
announced the intention to distribute to the shareholders
and publicly list three of our divisions: Securitas Systems,
Direct and Cash Handling Services. If the Extraordinary
General Meeting in September gives its approval, the
Securitas Group will thereby take the fourth major step
in its development in modern times.
Behind this decision lies a simple business logic
Securitas has developed over many years. The principle
is “from the simple to the specialized and qualifi ed.”
Or, as we usually say, “from arms and legs to refi ned
security services.”
The fi rst step in Securitas’ more than 70-year history
entailed a Swedish security company’s successful growth
into the Swedish market leader in guarding services.
A new approach
In the mid-1980s the second step began. Securitas new
strategies necessitated a new approach: taking responsibility
for the transformation of a small-scale, local
Securitas’ next step shows that we are fi rst again.
In ten years, most major, internationally active
security companies will probably have followed
our lead.
The value-creating journey continues
Thomas Berglund
President and Chief Executive Offi cer
industry for guarding services into to a market with
qualifi ed, specialized and customer-oriented security
solutions developed on a large, international scale.
Through acquisitions, Securitas became the market leader
in Europe. We set new standards for the development
of employees and services. Demand was segmented and
specialized, and a professional security industry took shape.
As an element in this focus on security, Securitas
distributed to its shareholders the lock operations in
Assa Abloy in 1994.
The third step began in 1999 with the major expansion
in North America. After a number of acquisitions,
Securitas became the market leader in the USA as well.
Demand for refi ned and differentiated services grew
quickly. Securitas became a security group in the truest
sense, offering a wide range of specialized services and
professional solutions.
This step was completed with the separation into
fi ve divisions with their own clearly defi ned strategies,
customers and customer needs, services and solutions
that required maximum focus and entrepreneurship.
In the process, we sowed the seeds for the decision
we have now made to divide up the Group.
Obviously, the historical developments we have
shaped have been an important driving force. But the
critical reason for this major decision lies ahead in
the future.
Success in the USA an important turning point
In 2005, we reached an important turning point. The
success of our U.S. operations shows that the Securitas
Model works in this extremely large and diffi cult market.
We have attained a market leading position. The market
12 SECURITAS 2005