the leader in protective services
TRANSCRIPT
Santiago GalazDivisional President Security Services North America
Investor Day 2016
The Leader in Protective Services
1
Market Leader in North America
MSEK 8 253 MSEK 435
Sales Operating income
Share of Group January-March 2016
40% 44%
• Protective services in the US, Canada and Mexico comprising 13 business units
• 108,000 employees
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US Market Evolution
Security Guards (k) Outsource
Producer Price Index Annual Change Percentage
Total Number of Security Guards & Outsource Percentage
0.0
0.5
1.0
1.5
2.0
2.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 201552%
53%
54%
55%
56%
57%
58%
59%
60%
850
900
950
1,000
1,050
1,100
1,150
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
A solid 3 to 4% market growthInvestor Day 2016, Santiago Galaz 3
Industry Consolidation Creating Opportunities
Guarding
• Universal acquired Guardsmark (2015)
• AlliedBarton will merge with Universal Services of America to create AlliedUniversal (2016)
Electronic Security
• Tyco IS being acquired by Johnson Controls (JCI) (2016)
• Apollo Investment acquired Protection One & ASG (2015) and ADT (2016)
• Stanley Security pending of Stanley Black & Decker decision
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Electronic Security
Fire & Safety
Corporate Risk Management
On-site Guarding
Mobile Guarding
Remote Guarding
Specialization in Each is Key
The Leader in Protective Services
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Electronic Security Acquisition: A Necessary Step in our Journey
We found what we were looking for:
• US & Canada national coverage, coast-to-coast with high quality service levels
• Full spectrum of electronic security capabilities from design to build and integrate, install, monitoring and service delivery
• Strong service organization focusing on recurring and repeat revenue
• Solid brand reputation and a strong focus on long term customer relationships
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Not a cost synergy acquisition
Acquisition Considerations
• Protect Sales speed
• Respect Production processes
• Improve Back-office
• Leverage commercial synergies
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Protect Team & Strategy
All ES Production in SES
Cross selling I
Cross selling II
Bundling
Day One
Closing
TSA Migration
Standing Up
Signing
Integrating into Securitas
Separating from Diebold
Two Simultaneous Processes
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A Senior Team with ES industry expertise and strong team dynamics
Electronic Security Executive Management Team
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ES Field Operations
Sub-Contractor LocationsADI Locations
ES Sales
Center of ExcellenceDisaster RecoveryMonitoring CentersESHQ
Over 1,100 dedicated ES associates and extensive partner network
Coast to Coast Coverage
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Four Direct Sales Channels Plus Securitas
• National Financial
• Regional Financial
• Commercial National Accounts
• Commercial Enterprise
• Securitas
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~$9BTotal Addressable
Market
Source: IMS Research, SDM, Imperial Capital & Management Estimates
North America Market Size & Segmentation
Size ($ Billions) Customer Markets Security Providers
~6.4 Enterprise Integration 1,000 local integrators
~3.7 National and Regional Accounts Handful of competitors
~6.4 Local Commercial 10,000 local providers
~2 Custom Residential 10,000 local providers
~1.8 Mass Market Small Business 10,000 local providers
~5 Mass Market Residential 10,000 local providers
SES Value Proposition Plays well to Multi-site, Large Businesses
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Securitas ES – Target Customer Profiles
Enterprise CustomerIconic site with complex integrated security
• Sophisticated solutions including video analytics, biometrics, mobile access & situational awareness intelligence
National CustomerFinancial company with 3000+ branches
• Programmatic security program with video refresh plan, security management platform & embedded alarm monitoring personnel
National Enterprise & Alarm CustomerTelecom company with corporate campus, regional centers & 1000+ retail stores
• Networked security solutions including video, access, intrusion alarm & embedded personnel
Regional CustomerSpecialty retail company with 500+ stores
• Comprehensive security solutions including intrusion, fire, video, alarm monitoring & online security management services
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