Niscayah is a complete security partner with the customer’s total security needs in focus. The long-term goal is to become a leading security partner on all markets where Niscayah operates. The goal shall be reached on the basis of the Group’s mission, vision and position.

Business concept

Niscayah offers and integrates high technology IT-based security and surveillance solutions to companies and organizations with high security demands. Through detailed risk analyses, Niscayah offers solutions which add value and minimize interruption to the customers’ business operations. The security solutions offer the customer the possibility of controlling their risk environment in an economical and time efficient manner.

Goals and strategy

Niscayah's long-term operating goal is to become a leading partner within security systems. The Company focuses on growing organically and through acquisitions on the major markets in Europe and the US. The principal financial goals are to achieve a total sales growth of more than 10 percent annually and a return on capital employed that exceeds 20 percent. The strategy for reaching the operating and financial goals rests on three fundamental pillars: customer focus, knowledge and growth.

Customer focus

Niscayah's customers are distinctive in that they have a defined risk in their operations, which means that they have a great need for effective security solutions. Many of the company’s customers have operations in several countries and/or in several geographical locations within a country. The customer can benefit from Niscayah's international presence and scalable solutions. Niscayah's objective is to become a leading security partner within all of the prioritized customer segments.

Customer segments

The profitability in the security system sector is determined by the share of business at the selected customer segments and not by the size of the market share within a particular geographical region or country. The objective is to offer expert competence within all prioritized customer segments in each country.

Knowledge

Continuous work is conducted with the aim of identifying new technical opportunities and on converting these into better functioning and more cost efficient security solutions. The goal is to lie at the cutting edge of technical developments and to offer the customer the best security solution and to continually improve know-how within services including, analysis and design, implementation, systems management as well as systems operations.

The customer relationship and knowledge of the security risks in the customer’s operations, means that Niscayah gains considerable expertise regarding future needs relating to product and concept development. These skills can be supplied to manufacturers of alarms and other technical equipment. This form of knowledge transfer, builds long-term relationships between Niscayah and the product manufacturers, which are valuable for both parties.

Knowledge advancement

The collaboration also aims to support and follow the latest research, which ensures that Niscayah can remain at the cutting edge of developments and thus meet the customers’ future needs more effectively as a result.

Growth

The growth target is based on a combination of organic growth and acquisition led growth, where the organic growth is prioritized by developing prioritized customer segments and making the complete offering more distinctive. Establishment in a new country preferably takes place through acquisitions where a customer base already exists with established services.

Acquisitions

The security market is very fragmented. Approximately two thirds of the market consists of smaller players operating on a local market. Niscayah's acquisitions are concentrated on companies that possess high technical competence, focused on specific customer segments. Niscayah's acquisitions can be divided into three principal categories:

• Complementary to current operations
  Complementary acquisitions are often handled by the local country management and are integrated quickly into the operations. Eurotelis, which was acquired in France during 2004,was such an acquisition, whereby the French operation’s presence within the banking market was strengthened considerably.

• Existing country – new customer segment
  Acquisitions within a new customer segment require the involvement of both the Group and the Country Management. It is important that both the corporate culture and the financial model are implemented so that the integration can be completed in an effective manner. Through the acquisition of Hamilton Pacific in the US during 2005, the American operation could add banks and financial institutions as a prioritized customer area.

• Expansion to a new country
  On expansion to a new geographical market the focus is mainly directed towards the customer segments where Niscayah has broad experience. Banking is a prioritized area where there is already a strong presence in most countries. The acquisition of Bell in the UK in 2004 and CIS SpA in Italy are examples of completed acquisitions in the banking area. 
  It is of the utmost importance that new acqui­sitions are rapidly integrated with the Group’s existing operations and that the revenue model, which is described on page 19, is introduced. By applying the company’s business model to the acquired companies, the conditions for reaching the established profitability target within 2–5 years are created. The period of time varies depending on the size, market and customer segment of the acquired company.