Security

The Security business area is a total supplier of technical security solutions for the professional market. It is also the biggest supplier of electrical safety services in Norway. The business area supplies its technical security services to customers in Norway, Sweden and Finland, and from 2013 also in Denmark.

Security solutions

Security provides complex integrated security systems, with options for system customisation for individual customers. Deliveries include access control, alarm systems, video surveillance, locks and fittings, as well as related remote services. Infratek supplies equipment from leading global manufacturers in security systems. Complementary agencies enable flexibility, and customised security systems are tailored to the customer’s requirements. Infratek has a dedicated remote service centre, which is open 24/7. The centre provides remote services and maintenance of customers’ security systems in addition to monitoring the customers’ solutions 24 hours a day.

Infratek Security has the following subsidiaries: Infratek Security Finland OY (100 percent ownership), Infratek Säkerhet Sverige AB (51 percent), Infratek Sikkerhed Danmark AS (51 percent) and Eiendomssikring AS (85 percent). Eiendomssikring supplies products and services related to locks and fittings in Norway.

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Industry-specific security solutions

Infratek provides security solutions to customers in various industries, including oil and gas, the power sector, retail, the health service, banking and postal services, transport and property. In addition to the need for traditional security, the retail sector and oil and gas industry also have special needs to support their core business. These industries are therefore priority areas for Infratek.

Infratek’s deliveries to the retail sector include electronic anti-theft systems, RFID and people counting systems, in addition to other security systems aimed at reducing shrinkage and improving profitability. Infratek supplies ATEX-specified products to the oil and gas industry that are specially adapted for use at facilities and installations with hazardous conditions. Infratek has extensive experience in this sector, as well as the expertise and certification needed to carry out work at the production facilities. In addition to supplying solutions and products to the Nordic market, Infratek is also a supplier to the global oil and gas industry.
 

Electrical safety

Infratek’s electrical safety business provides services such as legally mandated safety surveillance performed by grid companies in their licence areas (so-called DLE services). The DLE work entails surveillance of electrical installations and businesses, control of electrical equipment, information and consultancy services, as well as assisting the police in investigations into fires. Infratek’s services also include measuring and calibrating electricity meters. All grid companies are required by law to inspect their electrical installations and equipment. DLE services are regulated by The Directorate for Civil Protection and Emergency Planning in Norway (DSB).
 

Performance in 2011

The business area’s performance in 2012 was up from 2011, with an operating profit of NOK 26 million and an operating margin of 8.1 percent. After the downturn in the wake of the financial crisis, the market has picked up again, and Infratek is experiencing a growing demand for its security systems and services.

The market for electrical safety services has been satisfactory in 2012, and is on a par with 2011. However, the financial performance was reduced due to renegotiated contracts with lower prices.

 
NOK million
2012
2011
Operating revenues
320.6
306.4
Operating profit before depreciation
28.8
26.6
Operating profit
25.8
23.2
Operating margin
8.1%
7.6%
 

Strategy

Infratek is a Nordic supplier of technical security, with a presence in Norway, Sweden, Finland and Denmark. Security is the top supplier within retail and the oil and gas industry. Further expansion is planned in relation to the industries in which Infratek is already a leading supplier, such as the power sector, transport, banking and postal services, property and the health service. In addition to expanding the customer base in these industries, more potential will be generated by increasing sales to established customers, and this will continue to be a strategically important focus for the business area.

Infratek will form more ties with strategic partners, both within sales and the supply of services. This is a key component in our goal to become a leading Nordic supplier within the core segments and create a honed value chain for greater profitability and improved quality.

The number of major international customers within technical high security solutions is steadily growing, with a corresponding greater need for standardised solutions across national borders. Therefore, and in line with the Group’s main strategy, Security will aim for profitable growth in the countries where Infratek already has a presence, consolidate its position as a Nordic supplier in the security market and exploit economies of scale in the Group. In the market for statutory control services of electrical safety, Infratek will continue to play a key role.
 

Market and market outlook

As a result of higher crime levels and a changed threat picture, the security market is an international growth industry. The industry is characterised by rapid technological developments and a growing demand for services from third party suppliers. Many private and public sector businesses want to protect their operations from production interruptions and losses. In addition, demand is growing for security technology for use in day-to-day operations that require monitoring, remote control and notification of events. The benefits customers gain from this in their daily work lead to a greater willingness to invest in security technology. Within technical security, Infratek competes with traditional security suppliers and electrical installation companies. The global market has been characterised by deteriorating macroeconomic conditions, but this is starting to stabilise and positive growth is expected in 2013.

The need for inspections of electrical equipment has been given a stronger focus in recent years, and the market for electrical safety services is regarded as stable, but with greater competition between geographic markets. New regulatory requirements may lead to a higher level of activity in the long term. However, the market is characterised by more active players and greater competition. As the largest electrical safety company in Norway, Infratek is in a position to realise potential growth in this area. 
 

Securing of Felleskjøpet’s shops in Norway

In 2012, Infratek entered into an agreement with Felleskjøpet for the delivery, installation, operation and service of electronic article surveillance and an option for deliveries of integrated security solutions such as camera surveillance, access control and alarm systems for the company’s shops in Norway. Felleskjøpet has around 100 shops in Norway. The decision to use Infratek was mainly based on the high quality and attractive products described in the tender competition with several competitors.

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Security of Google

Since 2010, Infratek has been supplying technical security to the Internet company Google in Norway. Infratek was appointed to secure the company’s Swedish and Finnish divisions in 2012. The security solution consists of access control, alarm systems and camera surveillance. Google’s decision to hire Infratek to supply safety solutions in Sweden and Finland was based on the effective solutions and quality of deliveries it supplied in Norway.

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Security solutions for Statoil

In 2012, Infratek completed the upgrade of high security solutions at Statoil premises in Hammerfest, Herøya, Notodden, Rjukan, Sandsli and Sture. The upgrade at these plants is on a par with the high security solution supplied by Infratek to Statoil premises worldwide, and relates to access control and alarm systems. 

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