Security

Infratek, through the business area Security, is and end-to-end supplier of technical security solutions for major customers, as well as Norway’s largest supplier of electrical safety services. The business area offers its technical services in Norway, Sweden and Finland.

Security solutions

Security supplies complex integrated security systems, which can be tailored to the customer’s individual needs. Deliverables include access control, alarm and CCTV systems, locks and fittings, as well as associated support services. Infratek sells equipment from the market’s leading producers of security systems. Complementary dealerships provide flexibility, and allow security systems to be tailored to customers’ individual needs. Infratek has its own round-the-clock service centre, which offers operational and maintenance services for customers’ security systems, as well as 24-hour surveillance of the customer’s solutions.
 

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Infratek Security has the subsidiaries Eiendomssikring AS, in which it has an 85 per cent stake, and Unisec Varularm AB, in which it has a 51 per cent stake. Eiendomssikring supplies products and services relating to locks and fittings in Norway. Unisec supplies security solutions to the Swedish retail sector.
 

Industry-specific security solutions

Infratek supplies security solutions to customers in several different industries including oil and gas, power, retail, healthcare, banking and postal office services, transport and property. Retail and oil and gas are industries which, in addition to traditional security solutions, also have specific requirements associated with their business operations. Infratek therefore focuses on these two areas.
 
Within retail, Infratek supplies electronic product tagging and customer counting systems, in addition to general security systems – solutions which help reduce shrinkage and improve profitability. In the oil and gas sector Infratek supplies ATEX-specified products, which are specially designed for use in installations and facilities where there is a risk of explosion. Infratek has extensive experience of this segment, as well as the necessary competence and certification to perform work on production facilities. Infratek offers products and services to the oil and gas industry across the Nordic region.
 

Electrical safety

Infratek’s electrical safety business provides system safety monitoring and surveillance services on behalf of power grid companies (so-called DLE services). DLE services comprise supervision of electrical systems and activities, control of electrical equipment, information and consulting services, and assisting the police in the investigation of fires. Infratek also measures and calibrates electricity metres. All grid owners are obliged by law to carry out checks on their electrical installations and equipment. DLE services are regulated by the Directorate for Civil Protection and Emergency Planning (DSB).
 

Performance in 2011

With an operating profit of NOK 23.2 million and an operating margin of 7.6 per cent, results from the Security business area for 2011 were slightly weaker than the previous year. The first half of 2011 was strongly impacted by weakening macroeconomic conditions, which affected new sales and checked organic growth. However, at the end of the year the market was starting to rally, and Infratek is experiencing increased demand for security systems and services.
 
The market for electrical safety services was satisfactory in 2011, and is expected to remain stable throughout 2012.
 
The Security business area employed 202 staff at the end of 2011.
 
NOK million
2011
2010
Operating revenues
306.4
315.8
Operating profit before depreciation
26.6
39
Operating profit
23.2
35.2
Operating margin
7.6%
11%

The operating profit for 2010 includes a positive pension effect of NOK 4.7 million.
 

Strategy

Infratek provides technical security solutions in the Nordic region, and has operations in Norway, Sweden and Finland. Security is the number one supplier to the retail and oil and gas segments. At the same time, the business aims to expand further in industries where Infratek is already a leading supplier, e.g. power generation, transport, banking and post office services, property and healthcare. In addition to increasing the customer base within these industries, secondary sales to established customers offer major potential, and will continue to be a strategically important focus area for the business area moving forward.
 
Infratek will increasingly link up with strategic partners both within sales and performance of deliveries and services. It is important to realise our aim of becoming both market leader in the Nordic region within our core segments and a leading edge value chain for increased profitability and quality.
 
Increasingly, major customers of technical high security solutions are international organisations with a growing need for standardised solutions extending across national borders. With this in mind, and in line with the Group’s overarching strategy, Security will work to achieve profitable growth in the countries in which we have recently established a presence, to reinforce Infratek’s position as Nordic-wide provider of high-security services, and to utilise economies of scale within the Group. With respect to electrical safety, Infratek will continue to play an active role in the market for DLE services.
 

Market and market outlook

International growth in the market for security systems is being driven by rising crime rates and a shifting threat profile. The industry is being characterised by rapid technological development and an increasing degree of service purchases from third-party suppliers. Both private enterprises and public sector agencies are increasingly seeking to secure their own operations in order to prevent interruption or loss. Furthermore, security technology is increasingly being used as part of entities’ day-to-day operations requiring surveillance, remote control and incident notification. The ongoing benefits this provides for customers are making them more willing to invest in security technology. In the field of technical security Infratek is competing with both traditional security service providers and electrical installation companies. In 2011 the industry was strongly impacted by significant consolidation activities, while the global market was beset by deteriorating macroeconomic conditions. Stabilisation is expected in 2012, followed by positive growth in 2013.
 
In recent years the need for supervision of electrical installations has received more attention, while the market for electrical safety services is deemed to be stable. Any new regulatory requirements could help to boost activity levels over the longer term. However, the market now features an increasing number of active participants and increased competition. As the largest electrical safety company in Norway Infratek is well positioned to participate in any growth in this area.
 
 
A SELECTION OF IMPORTANT PROJECTS
 
 
Security solutions for Statoil
In 2011 and the first half of 2012 Infratek upgraded its high security solutions at Statoil locations in Hammerfest, Herøya, Notodden, Rjukan, Sandsli and Sture. The installations were upgraded to include high security solutions similar to those previously delivered by Infratek to Statoil locations globally, while access control systems and alarms were upgraded.
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Securing of Accenture
Since 2008 Infratek has delivered technical security services to the consultancy company Accenture in Norway. In 2011 Infratek was chosen to secure the company’s departments in Sweden and Finland. The security installation comprises access control, alarms and CCTV monitoring. Accenture chose Infratek as a supplier in Sweden and Finland based on efficient solutions and the quality of the supplies the company had given in Norway.
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Securing of COOP’s stores in Norway
In 2011 Infratek signed a framework agreement with COOP to deliver, install, operate and service electronic tagging and integrated security solutions including CCTV monitoring, access control and alarms for the company’s around 450 stores in Norway. Infratek was named partner primarily due to the high quality of previous deliveries.
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