The lock and security company LukkoExpert Security Oy operates in seven big cities. The company is an expert in the security technology and services of locking and door automatics. LukkoExpert Security offers high-quality mechanical and electric locks, fittings, burglary protection equipment, door automatics, monitoring and alarm systems for properties and planning, maintenance and installation services connected to these.

LukkoExpert Security Oy offers an expert comprehensive service, which is guaranteed by a high-quality and extensive selection. Because of the network formed by the company’s branches, the products and services can be delivered quickly even in urgent needs and comprehensively geographically.

LukkoExpert Security Oy serves house management and building management agencies, property and housing companies, construction businesses and other companies, communities and private individuals regarding purchases related to structural locking and electronic monitoring systems. The company’s professional and knowledgeable personnel advises the customers in choosing suitable products and services.

 Key figures

About the Business Area

The security business area can be divided into three sectors:

1. Security Services include guard services, security checks, hospital guard services, reception services, store guard services, and alarm centre services, for example.

2. Asset Tracking and Cash Handling includes valuable item storage and transportation, money handling, and ATM maintenance, for example.

3. Security Systems includes locking, door automation (not including doors), burglar alarm systems, video surveillance systems, access control and management solutions, fire alarm systems, product security, and biometric identification, for example.

Security Industry in Finland

The total value of security industry products and services in Finland was over 1.1 billion euro in 2007. The turnover growth in 2006-2007 was 11.6%. The industry employs 12,000-13,000 people.



Division of the Security Industry Turnover in 2007



Source: Finnsecurity

Market Trends and Drivers

1. Security:

Risk management has become a central priority for companies as well as the public sector.

2. Minimising fraud and misuse:

The aim to minimise fraud and misuse increases the demand for access control and other security technologies.

3. Reduction in costs and technological development:

The reduction in the costs of access control systems and their technological development increases the demand for the respective products.

4. IT trends:

IT trends will affect the security industry more in the future, wherein security solutions are increasingly developing as network solutions and services.

5. Integration:

The market is increasingly moving towards locally integrated or Internet/web-based security systems.

6. Increase in wealth and the ageing of the population:

The increase in wealth and the ageing of the population in turn increase the demand for higher-class property security solutions.

7. Increasing penetration in the market:

Simple electric locking solutions have started to penetrate the lower segments of the market.

8. Locking company consolidation:

The number of small, privately-owned locking companies is reducing in number, and the company chains will become larger.

9. Outsourcing:

The private security industry will continue to grow as both the public sector and the private sector transfer their operations in the hands of security service providers. Outsourcing and specialisation, as well as consolidation, will continue.

10. Changes in customer needs:

Complexity increases, customers become more demanding, and changes become more rapid. The demands for development in operations profitability increase.

Changing Markets

In access control, the number of code equipment is expected to decrease, and the number of electronic identification equipment is expected to grow substantially. There is much growth potential in biometric identification, but the growth is expected to remain moderate in the near future. No growth is expected in working hour management systems. Different ASP services continue to grow. The markets for traditional locking have decreased and are expected to decrease in the future. The market for access control products and systems is developing and the size of the market is expected to grow. The total market in locking and door-related services is in a state of flux. The traditional locking companies are developing towards company chains and total service. The products are moving away from mechanical locks and doors towards electromechanical and electronic access control solutions.



Sensitive Markets

The demand for security products and services is for the most part independent from economic situations. In 2009, the locking business area is expected to remain at the 2008 level. The decline in housing production decreases the demand for locks and security technology in the consumer segment. Renovation will partly compensate for the decline in housing production. The modernisation of solutions will also stay in demand. The focus on products will move towards total security system solutions. Public sector purchasing is expected to grow within the next three years. Growth is boosted by the changing security needs of the customers, the increased focus in risk management, and the outsourcing of security operations. The growth is restricted by a lack of a professional workforce, the stability of professionals and the tightened price competition, as well as dispersed security purchasing by the customers.

Panostaja Oyj Goals in the Industry

The goal of Panostaja is to create a leading Finnish solutions provider for security and door-related products and services by 2010. The company is the leading service provider in the industry and a nationally well-known brand. The company is the market leader in Finland in access control and working hour management systems. The company will grow organically over 10% annually. The profitability of operations (result before taxes) is over 10% of the turnover.

Sources:

Finnsecurity ry


The evaluations of the management of Panostaja Oyj about the current state and development of the business area.

It has to be noted that those statements of this business area description that do not concern historical facts are made of future prospects. These statements are based on the best evaluation and belief of the management, which are made with the best current knowledge. Due to the risks and uncertainties related to such statements, the real outcome may differ significantly from the results expected at this time. Unknown or unexpected factors, or assumptions proved wrong, may cause a significant deviation from the real results from the future prospects and result expectations as given in the statements. Panostaja Oyj will not update or change any statements related to future prospects due to new knowledge, future events or other reasons, except when it is legally obligated to do so.

Links to business area information

Finnsecurity ry