Securitas AB : Paradigm shift in the security industry

 Securitas is well positioned to take advantage of the paradigm shift taking place in the security industry, says the company's President and CEO Alf Göransson, at Securitas' Investor Day, arranged in Stockholm today.

Given current market dynamics and a gradual increase in the use of technology in security solutions, the security markets in Europe and North America have been growing at the same pace as GDP for the past few years.

"This trend will likely continue for the next few years. Historically, the security market has grown 1 to 2 percent faster than GDP in mature markets. Today's slower growth rate could be accelerated if the degree of outsourcing of currently insourced security services were to increase as the role of technology becomes more important in enhancing security levels. The rate could also be improved through an enlargement of the security market since the private security industry could,  to a larger extent, take over services currently performed by public authorities, governments and other entities," Alf Göransson says.

The degree to which the use of technology is increasing varies from country to country in the Securitas markets.

"As the pace accelerates, Securitas will be able to gain market shares by having a stronger and more cost-efficient offering than many guarding companies, and thus have a higher organic growth rate than the security market average. This supports us reaching our target of an average growth of earnings per share of 10 percent annually," Alf Göransson says.

Security solutions and technology accounted for 6 percent of Group sales in 2012 and 7.5 percent for the third quarter of 2013. Securitas has set a target to triple this figure by year-end 2015. The capital expenditure needed to increase the Group's sales of security solutions will be offset by a slower rate of acquisitions. For every MSEK 100 in annual security solutions sales (new sales or conversion of existing contracts) Securitas expects to make a capital expenditure of 10 to 20 percent. These expenditures will primarily relate to customer site equipment and will be depreciated over the contract duration.

This press release is also available at: www.securitas.com

Information:
Gisela Lindstrand, Senior Vice President Corporate Communications and Public Affairs, Securitas AB, mobile [phone], or email [e-mail]
Micaela Sjökvist, Head of Investor Relations, Securitas AB, mobile: [phone], or email [e-mail]

Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer's needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 300,000 employees are making a difference.

Securitas AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 10.30. (CET) on December 5, 2013.