Securitas AB Annual Report 2005

The Group – Financial control and fi nancial objectives
Six Fingers – fi nancial controls
ensure correct and timely action
To guide employees and the organization towards its stated objectives, the Group
has an established fi nancial framework and fi nancial reporting that continuously
measures results from the more than 3,000 branches up to the consolidated Group.
The fi nancial reporting makes it possible to follow on a monthly basis a number
of simple fi nancial ratios that are understood by every employee. The Six Fingers
model leads to timely and correct actions for better results.
Four cornerstones form a solid platform and serve
as the framework for fi nancial reporting:
■ Securitas Financial Policies and Guidelines, is the
Board of Directors’ policy document built around three
central themes: transparent and coherent reporting
internally and externally, proactive risk management
and continuous improvement in fi nancial oversight and
control.
■ Securitas Reporting Manual, provides all managers
and fi nancial professionals with detailed instructions
and defi nitions for fi nancial reporting.
■ Securitas Financial Model – Six Fingers outlines
the guidelines for the divisions’ fi nancial focus and the
delegation of responsibilities between different levels
of the organization in terms of fi nancial key ratios including
cash fl ow and capital employed.
■ The Controller has a key role, acting with integrity
and professionalism on his or her own and teamed with
others, to inspire high ethical standards, competence
and dedication as well as to continuously strive for
accurate, transparent, relevant and timely fi nancial
information.
To create a simple reporting method for timely and
accurate follow-up, Securitas has used a fi nancial
model since the late 1980s called Six Fingers. It serves
as the basis for internal follow-up and was developed
for the security services operations and later modifi ed
Our most important key ratios can be measured
at all levels of the company. This means that
everyone speaks the same language when results
are analyzed. Thus the quality of our fi nancial
reporting also improves.
and adapted to the divisional structure. In 2005, Six
Fingers was further developed to refl ect the ongoing
specialization and differentiation of the divisions and
the introduction of IFRS.
Six Fingers focuses on key factors that impact profi t,
not on the profi t trend itself. These factors are clearly
linked to operations and are used from branch offi ces
upward. They are grouped into categories: volumerelated
factors, effi ciency-related factors and capital
usage related factors. For managers, this provides
a better understanding of the reasons behind current
earnings and better precision in decisions to quickly
take action to improve them. The model is also used to
analyze acquisition targets.
Our most important key ratios can be measured at all
levels of the company. This means that everyone speaks
the same language when results are analyzed. Thus the
quality of our fi nancial reporting also improves.
Six Fingers – Volume-related factors
Håkan Winberg
Executive Vice President
and Chief Financial Offi cer
To sell, to retain and to increase revenue are based on
the establishment of long-term customer relationships.
Guarding services, alarm monitoring, systems maintenance
and cash handling services are often purchased on
an annual or multi-year basis. The fi rst three key factors
therefore relate to the development of the customer contract
portfolio:
22 SECURITAS 2005