Securitas AB Annual Report 2005

More documents

Recommendations

Info

Report of the Board of Directors – Direct Continued good organic growth “ 2005 was a good year with healthy growth in the division’s operations. It meant a continuation of the trends we have seen since the start in 1989, with a history of growing sales and operating income. These healthy trends are important for future investments in new products, services, and markets. Our growth has always been organic, and it will continue to be so, also in the future. Client demands for increased functionality and quality, combined with a continued attractive pricing situation for our products and services, mean that the integration of all processes, from sales and installation to alarm monitoring and call-out services, is becoming an increasingly bigger and important business. Our business concept is based on specialization and standardization, which makes it diffi cult to acquire and integrate client portfolios from other market participants into our business systems and fl ows. Our goal is to continue to refi ne the basic business processes to be able to allow for more innovation and improvement in services, products, and market channels. Establishment in new markets When we move to establish ourselves in a market, we do it in three steps. In the fi rst, pilot phase, we test sales methods and the concept in a small area to get to know the market, make local adaptations, and form a clear understanding of how the expansion will take place. We work locally, in a delimited geographic area, to build up and train the management team that will lead operations. This phase usually takes up to two years, depending on how many resources other areas of the business can spare. Then we follow up with a build-up phase, when we begin the geographical expansion in the new market. New sales coaches, sales personnel, installers and local and external partnerships are recruited and trained in area after area. Throughout this phase, which Our growth has always been organic. It will continue to be so, also in the future. Dick Seger Divisional President, Direct takes between three and fi ve years in a small country, the number of clients increases year after year as we open up in new areas. During this period, relatively large long-term investments are made while we build up our customer service centers with 24-hour staffi ng. When the basic structure is in place, the business enters into an operational phase aimed at continued growth in existing areas, while additional marketing and sales channels are being developed and our services and the content of our customer service continues to improve. Organization for growth The division’s organization is structured to support the business in its various phases. It is important that the division’s competence-center resources for products, systems, service models, sales methods, marketing campaigns, partnerships, and brand names are in place from the start of the build-up phase in a new market. The strength is the Group’s common structure for business systems and business processes, which also is a condition for being able to take advantage of the servicecenter services for IT production for new markets. Today we have well-established structures in the Nordic countries for the unit that serves small businesses, founded in 1989, and in Spain on the consumer side, established in 1994. The unit Consumer is being developed in the Nordic countries. These markets are still in a period of volume expansion. Other markets, such as, the Netherlands and Belgium, are in the pilot phase. France has been a part of the Group since 1997. The business there is concentrated in a few large cities (Paris, Lyon, and Bordeaux) with stable sales, while new pilot operations have been initiated in Strasbourg. We thus have excellent opportunities for profi table growth in existing and new markets for a long time to come. ” 60 SECURITAS 2005
4 3 2 1 0 Total sales ■ BSEK 01 02 03 04 05 The year 2005 ■ Total sales amounted to MSEK 2,706 (2,148). Organic sales growth was 23 percent. ■ Operating income amounted to MSEK 258 (201), an increase of 25 percent, adjusted for changes in exchange rates. ■ The number of connected alarms increased of 26 percent to 689,245 connected alarms. ■ A reorganization was carried out to encourage standardization, integration, and improvement in the division. A joint production and sales management team was assigned to France, the Netherlands, and Belgium. A similar reorganization was carried out in the Nordic operations. ■ Centralized resources and expertise in products, systems, partnership, and brand names were reinforced be to better able to support local operations. Key ratios 1 0.4 0.3 0.2 0.1 0.0 Operating income/Operating margin ■ BSEK % ■ 01 02 03 04 05 12 9 6 3 0 1.5 1.2 0.9 0.6 0.3 0.0 Capital employed/ Return on capital emloyed ■ BSEK % ■ 01 02 03 04 05 ■ A service center for IT production in new markets was developed and introduced in the Netherlands and Belgium. ■ At the beginning of the year, the monitoring of third-party alarms in France, the Netherlands, and Belgium were transferred to the Security Services Europe division. This was a natural step towards the goal of refi ning the Direct business model. ■ A clear trend that was reinforced during the year was an broader social acceptance of camera surveillance. ■ Continued expansion of mobile-telephone networks, with increased capabilities such as GPRS and 3G, simplifi ed alarm installations and improved the possibilities of transferring images from surveillance cameras connected to alarms. IFRS IFRS Swedish GAAP MSEK Income 2005 2004 2003 Total sales 2,706 2,148 1,680 Organic sales growth, % 23 28 28 Operating income before amortization 258 201 153 Operating margin, % 9.5 9.4 9.1 Amortization of goodwill – – –4 Amortization of acquisition related intangible fi xed assets –9 –6 – Acquisition related restructuring costs – – – Operating income after amortization 249 249 195 149 Operating cash fl ow Operating income before amortization 258 201 153 Investments in fi xed assets –577 –443 –341 Reversal of depreciation 316 236 162 Change in operating capital employed –16 42 7 Cash fl ow from operating activities –19 36 –19 Cash fl ow from operating activities, % –7 18 –12 Capital employed and fi nancing Operating fi xed assets 815 843 669 Accounts receivable 234 232 178 Other assets 714 299 241 Other liabilities 660 660 543 388 Total operating capital employed 1,103 831 700 Goodwill 51 13 16 Acquisition related intangible fi xed assets 55 13 – Total capital employed 1,209 857 716 Operating capital employed as % of sales 41 39 42 Return on capital employed, % 21 24 21 1 Adjusted to exclude the business for third-party monitoring which was transferred to Security Services Europe and Direct Switzerland, which has been transferred to the segment Other. 30 24 18 12 6 0 Direct SECURITAS 2005 61
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 50 and 51: Security Services Europe In order t
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?