SECURITAS AB Annual Report 2011

4 CEO statement
...if we develop our core business and improve
our ability to generate added value for our customers.”
Basic guarding
Securitas Annual Report 2011
Specialized
guarding
We tailor our
services to specific
industry and
customer needs.
Security solutions
We add a multitude
Guarding solutions of services such
We add technology as risk analysis and
solutions to investigations,
optimize and factors that in
further improve our combination with
specialized technology and
guarding concept. specialized
guarding provide
a high value
combined service.
“Managing the machine”
Our approach is based on the concept of “managing
the machine” – that is, managing our resources in
the most efficient manner, according to the Securitas
Model. As a result of total employee turnover, we
hire approximately one hundred thousand security
officers annually, which requires extremely efficient
operational control. In 2011, employee turnover was
44 percent in the USA and 28 percent in Europe.
“Managing the machine” also entails delivering
professional and high-quality services to our customers
through a flat organizational structure based
on efficient branch offices. Working closely with
our customers and having motivated employees is
also important, as is the ability to manage sick leave
rates and overtime through sound planning and
strong routines and maintaining tight cost and
financial control. In short, the Securitas Model.
However, price increases must be on par with wage
cost increases. In 2011, this was not achieved in
a few countries in Europe and, consequently, we
suffered lower margins in Security Services Europe.
In the Security Services North America, Mobile and
Monitoring and Security Services Ibero-America
business segments, margins were stable com-
pared with the preceding year. In 2011, the Group
achieved an operating result of MSEK 3 385
(5.3 percent) compared with MSEK 3 724 (6.1 percent)
in 2010, corresponding to a negative real
change of –3 percent.
From basic guarding to security solutions
In addition to “managing the machine,” we will only
improve our operating margins if we also develop our
core business and improve our ability to generate
added value for our customers. This goal is being
achieved in several ways:
· Today, more than one-third of our branch offices
are organized by customer segment, allowing us
to utilize our size and specialize in specific segments.
As a result, we can provide customers
with expertise, experience, knowledge and ideas
for how they can improve their security solutions
in a cost-efficient manner.
· We invest in technology and security system
design resources in order to strengthen our
ability to propose optimal solutions, comprising
physical security, technology, patrols, alarm
monitoring and consulting and investigation
services. We actively seek out acquisitions of
security technology companies and a few such
acquisitions were completed in 2011. We
attempted to accelerate this process in 2011 by
making a public bid for Niscayah (former Securitas
Systems), but were not successful due to a
higher bid by another company. Instead, we are
now building our expertise organically, primarily
to support and enhance our existing customer
portfolio, and adding new areas of competence
and customer bases by conducting acquisitions
in key markets.
· Our state-of-the-art client web portals provide
customers with all required security-related
information online and provide such additional
features as alerts and access to data, which are
important for assessing security needs.
· Through acquisitions, we are strengthening our
competence in highly specialized consulting and
investigation services, enabling us to advise our
customers on complex security issues or crisis
situations.
· In 2011, we implemented an internal business
model known as the Diamond Box, which provides
systematic guidance on how to perform a
professional operational analysis of a customer’s
security needs and then transform those conclu-