Securitas AB Annual Report 2005

Direct
Directs model for expansion is based on creating a strong local team that successively expands
geographically. Together with colleagues in Eindhoven, the Netherlands, Gerben van der Wallen
holds an information meeting aimed at recruiting new franchisees for Aroundio.
Client portfolio growth
Direct strives for annual net growth in the client portfolio
over 20 percent. The fulfi llment of this objective the
past fi ve years is shown below. Net growth in the client
portfolio exceeds the division’s objective. At the end
of 2005, the division had a total of 689,245 monitored
alarms.
Net growth in client portfolio
Thousands
800
700
600
500
400
300
200
100
0
89 91 93 95 97 99 01 03 05
Client cancellations
The quality of the client portfolio is determined by the
number of clients lost during a specifi c period of time.
Client cancellations in the subscription portfolio should
be less than 6 percent and for the past fi ve years the
client cancellations have been less than that. They have
dropped during 2005 by 0.3 percentage points compared
to 2004, due to better customer service when clients move.
Client cancellations
%
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
Ton Jeucken is a sales manager for Aroundio in the Netherlands.
His job is primarily to serve as a model for his staff and demonstrate
the practical aspects of the sales process.
Pay-back time
The pay-back time consists of the cost for acquiring
new clients, the income fl ow of each client or the accumulated
cash fl ow that every client generates over time.
The objective is that the repayment period for a new client
should be less than four years. The repayment period for
2005 was 3.4 years. The new GPRS modem technology
and camera, however, will somewhat increase the investment
cost for new clients.
Pay-back time
800
600
400
200
0
–200
–400
–600
EUR
01 02 03 04 05
2005
1 2 3 4 5 6 7 8 9
■ Acquisition cost ■ Yearly contribution ■ Accumulated cash flow
64 SECURITAS 2005
Year