Annual Report and Accounts 2009

Europe – Andreas Paterakis

Clearly the economic downturn affected my region and we have seen major clients revisiting and scrutinising their budgets, and we also felt a little bit of delay in our receivables but manageable. On the other hand the difficult economic environment gave the opportunity to leaders like G4S to stand out and really outperform competitors with weaker financial and organisational infrastructure. So in that sense the economic downturn helped us increase our market share.

Within my region, we clearly saw that the big markets performed much better. In Romania where a full roll out of the Romanian post contract has increased both the top and the bottom line. I would add Israel where we managed to increase our participation in government contracts and definitely Greece cash solutions where a combination of increased operational efficiency and enhancing our offering to the banks by ATM monitoring has increased our market share.

When it comes in difficult environment, I think it should go back to basic things. First of all you have to make sure that your housekeeping is working properly and strict control on costs is in place. Number two, you have to focus your effort on clients who really appreciate the high quality service that we offer them and number three, you have to make sure that these clients really honour the terms of the contract that they have with us.

The growth in 2010, most significantly the substantial growth will come in two different directions, one from specific countries like for example Russia where we are the only international security player fully licensed according to the new law which went into effect as of 1st January of this year, and secondly by specific sectors like the oil and gas sector where we are ready to offer a complete solution for protecting this natural resource by adding also a leakage detection system.

In 2009 we were very successful in the cash solution business where we started for the first time the note sorting contract with the Central Bank of Cyprus following regulations of the European Central Bank and this will have to be applied in all European country members. And we also were very successful in starting a full CASH360 solution for a major supermarket retailer in Greece. For 2010 I think the opportunities are even more challenging. First of all, following a very successful pilot that we did for a Turkish oil and gas operator, we will offer for the first time a complete solution for the oil and gas sector.