Securitas AB Annual Report 2005

More documents

Recommendations

Info

Security Services Europe In order to understand and be able to meet customer needs, all Securitas branch managers work closely with both customers and colleagues. Here, Securitas’ Site Coordinator Mohammed Kerouane is helping out a customer at IKEA in Plaisir, France. Operations The core business of Security Services Europe is guarding services. As society evolves, the requirements placed on security services become more complex and specialized and this is reflected in our range of services and organization. The division is organized into four vertical, specialized units: Permanent guarding and Transport aviation security for large customers, and Mobile and Alarm monitoring for small customers. Large customers accounts for 83 percent of total sales coming from mainly medium-sized and large companies that require specialized and tailor-made solutions. The trend is clear; customers expect their security provider to understand their particular field and tailor services to suit their needs. For this segment, services range from permanent guarding for large industrial customers, including manned gates, receptionists and trained fire guards, to combined solutions comprising technical solutions, alarm monitoring services, beat patrol and call-out services. Organization Besides beat patrol, receptionist and operator services, Securitas is also responsible for ensuring fire safety for certain customers, as is the case here for IKEA. Fire guard Jorge De Castro is specially trained in fire safety, as are all employees entrusted with this responsibility. Security Services Europe IKEA is an example of a Securitas customer in the segment Large Customers. At the customer’s request, branch managers such as Mohammed Kerouane are increasingly customizing the service offering at the request of the customer – requests that demand more specialized solutions. The unit for Transport aviation security specializes in high-risk areas such as airports, seaports and railroad- related businesses, helping to protect cargo and passengers. It provides specially trained screening personnel, dog patrols and guards with extended authority. Guards are thoroughly screened and trained according to industry regulations. The Mobile services and Alarm monitoring units cover 17 percent of sales to small customers with lesssophisticated security demands who are served with standardized solutions. Typical services provided by the Mobile services unit are beat patrol, opening and closing of premises, alarm monitoring, city patrol and call-outs. The Alarm monitoring unit specializes in monitoring services for alarms installed by independent installers. The services include alarm monitoring, GPS tracking and as call-outs. The vertical units in turn are divided geographically into 19 countries, 145 areas and 895 branches, together comprising 86,000 employees, see organization table below. Large customers Small customers Permanent guarding Transport aviation security Mobile services Alarm monitoring Sweden Austria France Poland Norway Switzerland Spain Tjeckien Denmark Germany Portugal Hungary Finland The Netherlands Argentina Estonia Belgium UK & Ireland Sweden France Norway Spain Finland Portugal Germany The Netherlands Belgium Sweden France Norway Belgium Denmark UK & Irland Finland Spain Germany Portugal The Netherlands Sweden Finland Germany The Netherlands Belgium France 50 SEcurITAS 2005
The Mobile services unit, whose services are directed at small customers, is an example of how the division successfully deals with specialization and refi nement of services. Modern technology, exemplifi ed by GPS-equipped call-out vehicles and Internet-based customer support, allows for a more effective and secure service delivery for both customers and employees. The unit in the Netherlands experienced organic sales growth from zero to six percent in 2005. Market and customers The market for guarding and security services in Europe is estimated at slightly more than MSEK 200,000 of which 75 percent, MSEK 151,000, is outsourced – the addressable market for Securitas. The market has grown 4-6 percent annually in the past few years, slightly exceeding GDP growth. In 2005, the market expanded by 3-4 percent. The outsourced part generally grows faster than the market average. Competition Securitas is the market leader in Europe, with a market share of around 17 percent. The largest competitor is the newly merged Group 4 Securicor, with a slightly lower market share than that of Securitas, and with an operation similar to Securitas in most European countries that have a security industry. Other players with a regional and considerable smaller market share include Prosegur (Spain-Portugal) and Initial-Rentokil (United Kingdom- Belgium). For the most part, Securitas’ competitors offer the same range of services, except in the small to medium-sized customer segments. In many countries, mobile services – for example, beat patrol and call-outs – are only offered by Securitas. Pricing by large players is generally comparable, but in some countries and areas, Securitas meets fi erce price competition from local and regional players. In Europe as a whole, more than 19,000 companies employ a total of approximately 1.1 million security offi cers. Strong position Security Services Europe’s market position is strong, with fi nancial strength, stable organic sales growth and sound operating margins. The new and more customer- focused organization makes the division more responsive to customer needs, providing the potential to further increase market share. The European economy was generally weak during the year, especially in major countries like France and Germany. Spain also showed a somewhat lower level of activity than previous year. On the other hand, the economic climate was more favorable in Norway, Sweden, the United Kingdom and Eastern Europe. The security industry is a somewhat late-cyclical business. This means that the division is to some extent affected by general market conditions although, it usually takes time before a change in the economic environment impacts sales and income. Sales and market shares Country Sales MSEK Sales MLOC Market share, % Sweden 2,764 2,764 > 50 Norway 1,486 1,278 > 50 Denmark 267 214 24 Finland 897 96 50 Estonia 64 108 14 Germany 3,806 409 15 UK/Ireland 1,117 82 6 Belgium 1,756 189 46 The Netherlands 1,805 194 20 Switzerland 480 80 19 Austria 308 33 17 France 5,082 546 23 Spain1 4,153 446 23 Portugal 943 101 26 Argentina1 222 85 5 Hungary 89 2,379 10 Poland 225 97 3 Czech Republic 134 426 5 Elimination of internal sales2 –111 Total1 25,487 17 1 Adjusted for full-year sales of acquired units. 2 Refers to sales within the Security Services Europe division. Security Services Europe SECURITAS 2005 51
Page 1 and 2: Securitas AB Annual Report 2005
Page 3 and 4: Sales per region A world
Page 5 and 6: A positive 2005 lays the foundation
Page 7 and 8: A history of growth Securitas was f
Page 9 and 10: The wheel of fortune Rationalizatio
Page 11 and 12: Koncernen 12 Comments by the CEO 14
Page 13 and 14: and customers have been convinced t
Page 15 and 16: The Securitas Group - sales growth,
Page 17 and 18: From multi-service providers to sec
Page 19 and 20: The entire organization supports th
Page 21 and 22: Our values Our values - Integrity,
Page 23 and 24: New sales of customer contracts tha
Page 25 and 26: 25 20 15 10 5 0 Return on capital e
Page 27 and 28: Risk business plans Each division a
Page 29 and 30: Swedish GAAP IFRS MSEK 2001 2002 20
Page 31 and 32: Income 2004 MSEK IFRS Q1 2004 IFRS
Page 33 and 34: Market capitalization & Enterprise
Page 36 and 37: Report of the Board of Directors -
Page 38 and 39: Financial overview BDM, Switzerland
Page 40 and 41: Financial overview Divestment of re
Page 44 and 45: Security Services USA Security Offi
Page 46 and 47: Security Services USA Security Offi
Page 52 and 53: Security Services Europe Securitas
Page 56 and 57: Securitas Systems In the fall of 20
Page 58 and 59: Securitas Systems Bell Security, ac
Page 62 and 63: Direct Mikael Sundberg holds the fr
Page 64 and 65: Direct Directs model for expansion
Page 68 and 69: Cash Handling Services Route Superv
Page 70 and 71: Cash Handling Services One of the s
Page 72: Annual Report - Financial statement
Page 75 and 76: Statement of cash fl ow MSEK NOTE I
Page 77 and 78: Supplementary information Securitas
Page 79 and 80: Financial statements - Notes and co
Page 81 and 82: net assets, and qualify for the hed
Page 83 and 84: Recognition and subsequent measurem
Page 85 and 86: NOTE 3 CRITICAL ESTIMATES AND JUDGE
Page 87 and 88: Table 3A. Maturity structure of iss
Page 89 and 90: a certain percentage of the fi nal
Page 91 and 92: NOTE 10 OPERATING EXPENSES Income s
Page 93 and 94: Notes and comments to the consolida
Page 95 and 96: Goodwill is tested on an annual bas
Page 97 and 98: NOTE 28 CHANGES IN SHAREHOLDERS’
Page 99 and 100: Pension cost MSEK IFRS 2005 Notes a
Page 101 and 102:
Table 1A. Adjusted Consolidated Sta
Page 103 and 104:
Free cash fl ow was not impacted by
Page 105 and 106:
elating to the tax calculated on th
Page 107 and 108:
Table 5. Consolidated Balance Sheet
Page 109 and 110:
NOTE A GOODWILL MSEK Jan 1, 2004 De
Page 111 and 112:
Statement of income MSEK NOTE Paren
Page 113 and 114:
Parent Company changes in sharehold
Page 115 and 116:
NOTE 42 PERSONNEL Average number of
Page 117 and 118:
NOTE 50 LIQUID ASSETS Liquid assets
Page 119 and 120:
To the Annual General Meeting of th
Page 122 and 123:
Corporate Governance - Board of Dir
Page 124 and 125:
Corporate governance - Report of th
Page 126 and 127:
Report of the Board of Directors -
Page 128 and 129:
Page 130 and 131:
Corporate Governance - Report of th
Page 132 and 133:
Page 134 and 135:
Corporate Information
Page 136 and 137:
Corporate Information - Financial i
Page 138:
Securitas Services Ltd. Berkshire H
show all

Securitas AB Annual Report 2005

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?