Securitas AB Annual Report 2005

Securitas is responsible for passenger, aviation staff and equipment security checks at
Tegel airport in Berlin, to fulfi ll the very high security requirements placed on the airlines.
Peter Balzereit is one of the airport’s 650 specially-trained guards.
Growth targets
Financial objectives are closely linked to the overall
strategy. The growth target of 6-8 percent will be achieved
through an even more customer-oriented approach.
To expand the customer portfolio, further specialization
is needed in specifi c areas. By increasing the share of
Outlook
The division continuously strives to
add value by refi ning its services.
The Mobile services unit is growing.
The challenge in established markets
is to prove that the development of
Securitas’ services continually create
added value for our customers. One
way to do this is to develop and introduce
new technology for security
offi cers, a process that began in 2005
and will continue in 2006. For new
markets, mobile services offer a great
opportunity. As labor costs rise, mobile
services become a more cost-effective
solution for small to medium-sized
customers.
In a labor-intensive business such
as security, people are the most valuable
asset, and efforts will continue to
develop our staff. This starts early in
the recruitment and initial training
pro cess, where increasing demands are
placed on specifi c security offi cer
profi les. Specialized training programs
are offered for certain business sectors.
Michael Hammarström is a customer services operator at the monitoring center
of Alert Services in Stockholm. He stays in touch with Securitas’ external alarm
installers to ensure quality performance in the entire chain; from alarm to call-out,
in accordance with the customer’s specifi c requests.
combined solutions – guarding services and technical
systems in a single, comprehensive agreement – for
large customers, as well as mobile services for smaller
customers, margins are expected to improve. In addition,
the division is aiming to further strengthen its position
in some countries through regional acquisitions.
In 2006 the new organizational structure
will allow further recruitment
and training of selected employees
throughout the division. This was done
in 2005 in the Transport aviation
unit, where security offi cers are being
recruited and trained specifi cally for
airports. This approach has resulted in
lower employee turnover and tailormade
services.
Furthermore, numerous legislative
and social initiatives are under way and
will affect the industry and company in
the next two years on both a national
and pan-European level. In France,
government plans call for increased
training and licensing in 2007, which
will be positive for the industry. The
German market still poses a challenge,
as it is highly fragmented and relatively
untapped in eastern sections in
terms of security services. There is still
room for outsourcing, however, which
is a positive structural factor.
The nationwide licensing scheme in
the United Kingdom will come into
force in 2006 – a positive development
for Securitas – and create a regulated
environment for the industry and its
customers.
Eastern Europe is a fast-growing
market, but still has a highly fragmented
industry with little or no regulation.
These countries pose a challenge
when it comes to improving industry
standards and working conditions.
The security industry here is largely
state-controlled and the police play a
different role compared to many Western
European countries. In this respect,
these markets also represent a great potential
for further growth for Securitas,
as do the markets where it does not yet
operate or has a low market share.
Security Services Europe
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