INVESTIGATION AND SECURITY ACTIVITIES …_Security... · Investigation and Security Activities...

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Essential Business Information Essential Business Information JOHANNESBURG OFFICE BALLYOAKS OFFICE PARK, BUILDING B, 35 BALLYCLARE DRIVE, BRYANSTON EXT 7 P O BOX 3044, RANDBURG, 2125 TEL: +27 11 513 -1450 FAX: +27 11 463-2771 PORT ELIZABETH OFFICE 1 ST FLOOR, BLOCK F, SOUTHERN LIFE GARDENS, 70 2 ND AVENUE, NEWTON PARK P O BOX 505, HUNTERS RETREAT, 6017 TEL: +27 41 394-0600 FAX: +27 41 363-2869 WEBSITE: WWW.WHOOWNSWHOM.CO.ZA REG NO: 1986/003014/07 DIRECTORS: MAUREEN MPHATSOE (CHAIRPERSON), JIM FICK (EXPERIAN), GLEN BALS (EXPERIAN), ANDREW MCGREGOR (MANAGING) © Copyright Who Owns Whom (Pty) Ltd INVESTIGATION AND SECURITY ACTIVITIES INCLUDING VEHICLE TRACKING Siccode 88920 May 2012 COMPILED BY: Kim Imrie [email protected]

Transcript of INVESTIGATION AND SECURITY ACTIVITIES …_Security... · Investigation and Security Activities...

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Essential Business InformationEssential Business Information

JOHANNESBURG OFFICE

BALLYOAKS OFFICE PARK, BUILDING B, 35 BALLYCLARE DRIVE, BRYANSTON EXT 7

P O BOX 3044, RANDBURG, 2125

TEL: +27 11 513 -1450 FAX: +27 11 463-2771

PORT ELIZABETH OFFICE

1ST FLOOR, BLOCK F, SOUTHERN LIFE GARDENS, 70 2ND

AVENUE, NEWTON PARK

P O BOX 505, HUNTERS RETREAT, 6017

TEL: +27 41 394-0600 FAX: +27 41 363-2869

WEBSITE: WWW.WHOOWNSWHOM.CO.ZA

REG NO: 1986/003014/07

DIRECTORS: MAUREEN MPHATSOE (CHAIRPERSON), JIM FICK (EXPERIAN), GLEN BALS (EXPERIAN), ANDREW MCGREGOR (MANAGING) © Copyright Who Owns Whom (Pty) Ltd

INVESTIGATION AND SECURITY

ACTIVITIES INCLUDING VEHICLE TRACKING

Siccode 88920

May 2012

COMPILED BY:

Kim Imrie [email protected]

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Contents

1 INTRODUCTION 1

2 DESCRIPTION OF THE INDUSTRY 1

2.1 Industry Supply Chain 2

3 SIZE OF THE INDUSTRY 3

4 STATE OF THE INDUSTRY 8

4.1 Local 8

4.1.1 Corporate Actions 12

4.1.2 Regulations 13

4.1.3 Black Economic Empowerment 14

4.2 Regional 15

4.3 International 16

5 INFLUENCING FACTORS 17

5.1 Economic Environment 17

5.2 Input Costs & Efficiency 18

5.3 Crime, Collaboration and Risk Management 18

5.4 Information Technology and Technology 19

5.5 Labour Resources 20

5.6 Environmental Concerns 22

5.7 Cyclicality 22

6 COMPETITION 22

6.1 Barriers to Entry 22

6.2 Research and Development 23

6.3 Innovation 23

7 SWOT ANALYSIS 24

8 FUTURE OUTLOOK 25

9 INDUSTRY ASSOCIATIONS 26

10 REFERENCES 28

10.1 Publications 28

10.2 Websites 28

APPENDIX 1 30

SASA Gold Class Membership Criteria 30

APPENDIX 2 32

Vesa Members list of Vehicle Tracking companies: 32

ORGANOGRAM 88920 33

Investigation and Security Activities 33

COMPANY PROFILES 35

ADT SECURITY (PTY) LTD 35

ARCFYRE INTERNATIONAL (PTY) LTD 38

BIDVEST MAGNUM (PTY) LTD 39

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CHUBB SECURITY SA (PTY) LTD 42

COMPUTER SECURITY & FORENSIC SOLUTIONS (PTY) LTD 45

ENFORCE SECURITY SERVICES (PTY) LTD 46

FIDELITY SECURITY GROUP (PTY) LTD 48

GUARDIAN FORENSIC SERVICES CC 58

IDECO GROUP LTD 59

IMVULA QUALITY PROTECTION (PTY) LTD 61

PROTEA COIN GROUP (ASSETS IN TRANSIT & ARMED REACTION) (PTY) LTD 63

PROTEA COIN GROUP (SECURITY SERVICES) (PTY) LTD 66

SBV SERVICES (PTY) LTD 68

SERVEST SECURITY (DIVISION OF SERVEST (PTY) LTD) 70

STALLION SECURITY (PTY) LTD 72

TOP SECURITY (PTY) LTD 74

VUSELA RISK SERVICES GROUP (PTY) LTD 76

ORGANOGRAM 88920A 77

Vehicle Tracking Service Providers 77

COMPANY PROFILES 78

ALTECH NETSTAR (PTY) LTD 78

C-TRACK (SA) (PTY) LTD 81

MIX TELEMATICS AFRICA (PTY) LTD 83

TRACKER NETWORK (PTY) LTD 85

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1 INTRODUCTION

According to the South African Security Association (SASA) the local private security industry is

valued at an annual R50bn. The industry, previously thought of as fragmented, is becoming less so

and is moving towards convergence with higher LSM categories and corporates demanding more

sophisticated services. Crime and customer demand for improved technological innovations are

driving change and have resulted in co-operation between security companies and new and

innovative IT entrants.

The emphasis of this report will be on investigation, surveillance, guard and other protective

activities for individuals and property and excludes the installation of alarm systems as defined by

Standard Industrial Classification code 8892. Vehicle tracking companies also fall under this sector

through the supply and installation of tracking devices, stolen vehicle recovery and more

increasingly diversification into fleet management. The cash-in-transit (CIT) sector is also covered.

2 DESCRIPTION OF THE INDUSTRY

The security industry, globally and locally, is moving from being isolated in terms of product

offerings, customers and industry participants to being much more integrated. “Convergence” has

become a catch phrase and is defined as “the ability of one or different networks to carry different

services.” The term also applies to the physical security industry which is becoming integrated with

the IT industry mainly as a result of technological innovations in Internet Protocol (IP) networking.

The private security industry comprises a range of private companies involved in the provision of

security and security-related activities including guarding, assets in transit, renting of alarm

systems, monitoring of these systems, risk and security consultancy, and the manufacture and

distribution of security equipment. The companies operate in a competitive environment and

attempt to gain an advantage by offering more than one service. With advanced products coming

onto the market there is evidence of new partnerships emerging between physical security players

and IT software integrators.

Due to its competitive nature and the high demand for private security in the country, measures

have been taken by its main regulatory body, the Private Security Industry Association (PSIRA) to

tighten regulations to prevent unscrupulous companies and individuals from entering the industry.

Protective alliances such as the Security Industry Alliance, comprising an alliance of security

organisations holding to similar standards has been set up to restore and maintain the integrity of

the industry. The South African Security Association (SASA) has gone one step further by setting

up Gold class membership where all member companies hold to a prescribed set of requirements.

See Appendix 1 for requirements and a member list. The guarding sector has historically been most

subject to “fly-by-nights” and is the largest employer in this sector, worth billions of Rand annually.

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It is also the sector most likely to have a high number of unregistered companies that do not

comply with legislation. PSIRA inspections are undertaken in order to root out such companies.

The industry is governed by the Private Security Industry Regulatory Act 56 of 2001, discussed in

more detail under Regulations. One of the main tenets of the act is the requirement that all private

security businesses be registered with PSIRA. Apart from registration aspects, other functions of

PSIRA include providing letters of good standing and involve the processing of training course

reports.

In the cash in transit (CIT) sector, there are a number of large groups.

♦ Prior to 1986 banks owned the cash in transit facility Fidelity Services. According to an

industry expert at Fidelity, prior to 2006 the Fidelity Services Group comprised three

divisions operating as separate companies: Fidelity Cash Management Services, Supercare

and Fidelity Guards. In 2006, these 3 divisions were unbundled as follows:

• Fidelity Cash Management Services which was bought out by G4S;

• The Supercare Services Group specialising in cleaning services; and

• Fidelity Guards with its emphasis on the guarding component. In terms of the buyout in

2006 a restraint was placed on Fidelity Guards from trading in the CIT market. This

restraint ended mid 2009 and The Fidelity Security Group has re-entered the CIT

market with Fidelity Cash Solutions.

♦ G4S has its roots locally in the merger between Group 4 Falck and Securicor in 2004.

♦ SBV was established in 1986 by the three main banks trading at that time, Standard,

Barclays and Volkskas and was later joined by Nedbank. Previously SBV operated on a “cost

recovery basis” by and for the banks. However, now it is expanding into other areas and

operates as a commercial company.

♦ Protea Security and Coin Security Group, wholly owned subsidiaries of Mvelaserve, united

in July 2007 to form The Protea Coin Group.

The vehicle tracking industry comprises four main companies, Tracker, Matrix Vehicle Tracking,

Altech Netstar and C-Track. There are a number of smaller vehicle tracking companies, compliant

with legislation, which are members of the Vehicle Security Association of South (VESA). See

Appendix 2 for a list of these companies.

A new association for the electronics security industry, the Electronic Security Industry Alliance

(ESIA) has been established.

2.1 Industry Supply Chain

The industry provides services to a broad range of participants and is itself made up of many

players as evidenced by the more than 30 security and related associations and organisations

currently in operation. Broadly participants provide services to the following groups:

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♦ Owners of large spaces such as Government, Airports and Universities with high traffic

levels require increasingly sophisticated methods of monitoring and access control;

♦ Corporates and SMEs. Corporates are a large purchaser of guarding and surveillance

services. As technology becomes more updated, there has been a shift from physical to

automated security. Vehicle tracking services and fleet management services are in

demand;

♦ Homeowners: Due to the high crime rate most suburban homes have an alarm monitoring

service; and

♦ Banks and retailers require CIT services to transport cash.

Suppliers to the industry are the manufacturers of alarms, vehicle monitoring devices and other

surveillance and security equipment. Technical specialists in wiring technology are required for the

large numbers of homeowners requiring a basic alarm monitoring system. Increasingly IT

specialists are necessary for the installation of additional features onto an existing IT network.

Biometric fingerprint technology specialists are becoming more in demand as this form of

technology becomes popular as a means of identification in access control. A supplier of this

technology is Advanced Corporate Security Systems which has amongst its clients Standard Bank,

Eskom, SARS, SAPS, Denel and the SABC. A company expanding into Africa is ERS Biometrics.

They are supplying fingerprint identification access control and time and attendance systems to

Nigerian telecommunications company, SB Telecoms. SB Telecoms’ clients include corporates,

financial institutions, hospitals and most government departments.

Due to industry convergence, companies that would have been classified as a supplier have

partnered with security companies. An example of this is Vusela Security and QuikTrak.

3 SIZE OF THE INDUSTRY

According to PSIRA the private security industry is growing at approximately 18% per annum.

SASA valued the sector at approximately R50bn per annum, but according to the National Sales

and Marketing Manager for G4S, Daphne du Preez, this is closer to R55bn.

The table below indicates the number of active security businesses registered in each province

during 2010 and 2011. The increase of 1332 registered businesses clearly illustrates the 18%

growth.

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[Source: PSIRA Annual Report 2010/2011]

According to PSIRA there were 8 828 registered and active security businesses and 411 109

registered and active security officers as at the end of March 2011. With a population in South

Africa of roughly 50.6 million there are approximately 81 security guards per 10 000 inhabitants.

Although there are 8 828 active registered security providers, each service provider will offer more

than one service. The number of services per category is represented below.

[Source: PSIRA Annual Report 2010/2011]

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The number of active registered security businesses and security officers per category for the years

2010 and 2011 is shown in the table below.

Category 2010 2011

Armed Response Businesses 2 721 2 836

CIT Businesses 2 204 2 300

Guarding Businesses 5 784 6 324

Security Businesses 7 496 8 828

Security Officers 391 035 411 109

[Source: PSIRA Annual Report 2010/11]

According to the South African Intruder Detection Services Association (SAIDSA), there are six

main national players: ADT, Chubb, Fidelity, G4S, Bidvest Magnum and Stallion. Other large

employers are Enforce, Servest Security and Imvula. The CIT sector is made up of established

security companies offering traditional cash in transit services as well as a number of smaller

players who operate on either a regional or national basis.

Company Description of Products Cash / Assets in Transit

Employees

ADT Security (Pty) Ltd ♦ 24 hour armed response

and monitoring

♦ Alarm systems

♦ Fire protection equipment

♦ Guarding services

11 000

Arcfyre International (Pty)

Ltd

♦ Security and risk

management

23

Bidvest Magnum (Pty) Ltd ♦ Security systems

♦ Undercover investigation

♦ Polygraph services

♦ Security officers

♦ Crime intelligence

8 678

Chubb Security SA (Pty)

Ltd

♦ Electronic security and

monitoring

♦ Alarm Systems

♦ Armed response

♦ Fire detection and

suppression

2 900

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Company Description of Products

Cash /

Assets in Transit

Employees

Computer Security &

Forensic Solutions (Pty)

Ltd

♦ IT Security

♦ IT Forensic

(Cyber/Computer and

Mobile)

♦ IT Risk vulnerability

assessment/auditing

♦ IT Intelligence services.

Enforce Security Services

(Pty) Ltd

♦ Undercover investigation

♦ Corporate security

electronic systems

♦ Training

♦ Physical guarding services.

8 000

Fidelity Security Group

(Pty) Ltd

♦ Security services

♦ Guarding

♦ Mining security

♦ Armed response

♦ Risk analysis

X

Fidelity Cash

Solutions

33 000

G4S Cash Solutions (Pty)

Ltd

♦ ATM servicing

♦ Cash / Assets-in-transit

♦ Pension distribution

X

3 500

G4S Secure Solutions

(SA) (Pty) Ltd

♦ Security officers

♦ CCTV and monitoring

♦ Assets-in-transit

X

13 130

Guardian Forensic

Services cc

♦ Prevention, detection,

investigating and resolution

of financial crime

5

Ideco Group Ltd ♦ Finger-print scanning

♦ Background screening

♦ Access control

Imvula Quality Protection

t/a iMvula Quality

Protection (Africa)

♦ Guarding services

♦ Armed response

♦ Monitoring

3 500

Protea Coin Group (Assets

in Transit & Armed

Reaction (Pty) Ltd

♦ Assets in transit

♦ Armed response X

16 000

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Company Description of Products

Cash /

Assets in Transit

Employees

Protea Coin Group

(Security Services) (Pty)

Ltd

♦ Monitoring and protection

services

♦ Assets-in-transit

♦ Technical security solutions

♦ Investigations & information

gathering

♦ Close protection (VIP)

♦ International security & risk

management

♦ Mining security

♦ Aviation security

♦ Tracking & fleet monitoring

♦ Specialised guarding

X

18 000

SBV Services (Pty) Ltd ♦ Transfer of money from

ATM’s to banks

♦ From one bank to another

♦ The replenishment of ATM´s

X

3 997

Servest Security

(Div of Servest (Pty) Ltd)

♦ Guarding services

♦ Electronic security

♦ VIP protection

5 500

Stallion Security (Pty) Ltd ♦ Guarding

♦ Electronic security

♦ Investigation

♦ Armed response

♦ Property guarding

7 500

Top Security (Pty) Ltd ♦ Alarm systems

♦ Monitoring

♦ Armed response

♦ Guarding services

900

Vusela Risk Services

Group (Pty) Ltd

♦ Security, protection and

emergency management

250

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According to Mike Krogh, the National Sales & Relationship Manager: CIT at SBV, the local market

share for cash in transit can be represented as follows:

CIT Companies Bank Branches/

Cash Centres ATM Retail

Protea Coin 20-25% 90%

G4S 15-20%

SBV 95% 60% 2-3%

The four main vehicle tracking companies are listed below.

Company Description of Products Revenue Employees

Altech Netstar (Pty) Ltd ♦ Vehicle tracking systems

♦ Monitoring & recovering of

stolen vehicles

R936.0m

(2011)

730

C-Track (SA) (Pty) Ltd ♦ Vehicle tracking systems R245.7m

(2011)

500

Mix Telematics Africa (Pty)

Ltd

t/a Matrix Vehicle Tracking

♦ Vehicle tracking systems

♦ Fleet management

♦ Driver safety compliance

R342.8m

(2011)

467

Tracker Network (Pty) Ltd

t/a Tracker

♦ Recovery of stolen vehicles

♦ Fleet monitoring

♦ Vehicle Tracking services

R1,081.2m

(2011)

1 200

4 STATE OF THE INDUSTRY

4.1 Local

The high crime rate in South Africa has contributed to the fact that the private security industry has

been one of the fastest growing local industries, and one of the largest employers in the country.

The table below provides statistics regarding serious crimes.

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Table 1: Serious crime during the 2003/2004 to 2010/2011 financial years and the

percentage increases/decreases in crime between 2009/2010 and 2010/2011

[Source: SAPS, 2011 Crime Statistics]

As can be seen from the statistics, there has been a general decrease in crime. Business Against

Crime (BAC) attributes the reduction in crime rates to “enhanced directed leadership and

accountability” as a result of the introduction of the Justice, Crime Prevention and Security (JCPS)

Cluster in October 2010. One of the main tenets of the initiative is that crime will be fought

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differently, by developing strong partnerships. As a result, there have been a number of public-

private partnerships between government, business and other crime fighting organisations.

Public-private partnerships have positively impacted the CIT sector, which involves the movement

of assets, provides ATM front-end services and cash management and processing services.

According to cash in circulation statistics from The South African Reserve Bank (SARB), there is

approximately R78bn in notes in circulation. Mike Krogh of SBV believes that the improvement in

CIT heist figures, shown below, has been largely as a result of heightened security measures

introduced since the Polokwane incident in 2006 when four security personnel lost their lives.

However, he did stress that as soon as improved law and enforcement existed in one area, crime

syndicates tended to shift focus to other areas of crime.

Table 2: Robbery in cash Transit in RSA for April to March 2003/2004 to 2010/2011

[Source: SAPS, 2011 Crime Statistics]

The large CIT companies only service businesses with more than 5 000 transactions per month

because of the high costs of operation. This has opened the market for smaller independent

companies such as ATM Solutions and Spark ATM Systems, who now have approximately 1 300 and

4 500 ATMs respectively in operation nationally. Both companies offer in-store withdrawals in

convenience stores by providing end-to-end ATM solutions where the need to transport cash has

been obviated. The Retail Risk Conference held in Gauteng towards the end of 2011 highlighted the

shift of cash handling accountability from banks to retail customers. There was much interest in

closed loop cash recycling solutions. Cash can be collected, counted, sorted and redistributed at the

retail site, without having to transfer it to a bank. These solutions are proving to be cost effective to

the retail industry since they do not have to pay high bank fees for transporting cash and do not

need as many armed security guards in and around their premises.

The restraint of trade against Fidelity Security Services, which occurred as part of the merger

conditions when G4S bought Fidelity Cash Management Solutions in 2006, has been lifted. Fidelity

has again entered the retail market and is expected to garner market share with its newly named,

Fidelity Cash Solutions. SBV intends to grow its share of the retail sector, and is also looking at

providing end-to-end solutions. A trial project at a Gauteng shopping centre involves a pneumatic

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tube system for the transfer of cash, discussed further under Information Technology (IT) and

Technology. SBV has also moved into the guarding sector and has begun bidding for tenders.

The South African security sector is reflective of the needs in the market place. According to Tasha

Smith of Envey Technologies the market is made up of only a few large players with a large base of

companies that install equipment. At the bottom end, needs are service- and not product- driven

and security is a grudge purchase driven mostly by price. Consumers purchase products on the

recommendation of the monitoring company who installs the system. These needs are fulfilled by

alarm companies who offer wired technology and do not have the capacity to train technicians due

to their size and financial constraints. Incremental benefits will be added with technology updates

such as a remote control. At the top end with the mostly corporate clients, access to new

technology is a prerogative. Companies will make larger investments in order to prolong the

longevity of the system. In this scenario the market is “driven from the top down.” Here

collaboration of security companies with IT players becomes necessary as systems become more

integrated. Companies are adopting new access control systems, such as biometric fingerprint

access or card identification. This then taps into advanced camera surveillance which can clearly

identify people and objects under all conditions. These products are linked to the company human

resources database and other systems via an IP network.

According to a 2010 Frost & Sullivan report entitled ‘The South African markets for CCTV,’

increased workplace violence, armed robberies and corporate espionage are resulting in companies

installing new security systems and replacing legacy systems with advanced CCTV systems. This

survey estimated the South African surveillance market to be increasing from a US$537,7m in 2008

to a likely $869,3m by 2015, a compound annual growth rate (CAGR) of 7.1%. In an attempt to

address retail shrinkage, the Shoprite chain instituted a corporate wide solution that integrated a

point of sale (POS) platform with video surveillance.

Notwithstanding the reduction in incidents of crime, there is still a high incidence of ATM bombings,

cable theft and cyber crime. A recent R42m Postbank cyber heist committed in January 2012

highlights the extent of the problem. It appears that the crime syndicate had knowledge of the post

office’s IT systems and the theft occurred despite Postbank having spent more than R15m to

upgrade its fraud detection service. According to one source, the Postbank security systems and

network are still in urgent need of an overhaul.

As previously mentioned there have been initiatives by security industry bodies to rid the sector of

criminal elements and non-compliant companies. Furthermore the public has been challenged to

ensure that their security providers have the necessary paperwork and are compliant with

regulations such as PSIRA registration, vetting of employees, compliance with the Firearms Control

Act, and that they are taking cognisance of labour regulations.

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Of concern is the fact that the regulatory body, PSIRA, is also in the process of getting its own

house in order, and has closely averted bankruptcy. PSIRA is funded mostly by annual fees paid by

registered security companies. As the last fee hike was in 2002, large fee increases have been

proposed which has caused a stir within industry organisations such as The Security Industry

Alliance (SIA). Members of SIA have applied for a review of new PSIRA regulation changes, which

include a large increase in fees. See Regulations for more detail.

In terms of a new Compliance and Enforcement strategy released in December 2011, PSIRA will

conduct compliance inspections. Inspections will occur at security businesses and will involve

consultations with security officer employees and employers regarding:

♦ Registration, training status and compliance;

♦ Reporting of engagements and terminations;

♦ Compliance of uniform requirements and firearms; and

♦ General conditions of employment.

Despite 6611 inspections having been conducted between April 2010 and March 2011, the

effectiveness of PSIRA has been questioned by some industry experts who believe the increase in

the frequency of inspections has not matched the growth in annual security business registrations.

PSIRA has set up a new fraud hot-line so that any unregistered, “fly-by-night” security companies

who do not comply with the PSIRA act can be reported.

According to an industry expert at Tracker, Stolen Vehicle Recovery (SVR) is becoming a saturated

market in South Africa. As a result, many the tracking companies are diversifying into fleet

management and other related location-based products and services in an effort to build growth.

4.1.1 Corporate Actions

2012

♦ NOSA, a subsidiary of Micromega Holdings Ltd has entered into a joint venture with SASA

to provide occupational risk management services to SASA gold members at discounted

rates.

♦ LG has appointed QD Dynamics as their exclusive dealer of the LG CCTV range in South

Africa.

2011

♦ Impro Technologies chose Elvey Security Technologies to be the national distributor for

their range of access control systems.

♦ Platinum Risk Solutions developed a technology division to run as a separate entity from

the guarding division.

♦ In August the Competition Tribunal approved the merger between a newly formed shelf

entity, Mainstreet 872 (Pty) Ltd and Tracker Investment Holdings (Pty) Ltd. One of the

shareholders of Tracker, Remgro Ltd was replaced by Actis LLP.

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2010

♦ Bidvest Magnum, previously Magnum Shield, formed a new security cluster within The

Bidvest Group. This will better enable Bidvest Magnum to offer integrated security

solutions.

♦ G4S entered thriving Brazilian security market with acquisitions of Plantech and Instalarme.

♦ G4S acquired Skycom, a market leader in the African systems market.

♦ Vusela Security partnered with QuikTrak to offer secure, reliable, stable high speed

communication.

2009

♦ G4S acquired the following companies:

o Secura Monde International Ltd and Shiremoor International Engineering Ltd,

together, the UK’s leading specialist banknote and high security technical and

commercial advisory companies;

o All Star International, one of the premier facilities management and base

operations support companies providing services to the US Government;

o Adesta, US-based provider of integrated security systems and communication

systems; and

o Hill & Associates Consultants Ltd, Asia’s leading provider of specialist risk mitigation

consulting services.

♦ Fidelity Cash Solutions, part of The Fidelity Security Group began operations after Restraint

of Trade conditions were lifted.

4.1.2 Regulations

Enshrined in the Private Security Industry Regulation Act (56 of 2001) is an individual’s right to life

and security and the right not to be deprived of one’s property. It acknowledges the important role

played by the private security industry in defending these rights as well as the importance of

having a legitimate and trustworthy security industry. The act requires all private investigators and

individuals or companies performing security functions to be registered with the Private Security

Industry Regulatory Authority (PSIRA). The Act provides a detailed definition of security providers

and lists the requirements for being approved and registered with this Authority.

Proposed amendments were released in November 2011 and include the following:

♦ Introduction of government funding for PSIRA;

♦ Abolition of the payment of individual levies by security guards;

♦ Tightening of registration criteria to deter criminals from participating in the industry;

♦ “Strategic limitation and prohibition of foreign control over certain sectors;” and

♦ Increased footprint of PSIRA walk-in centres and the provision of more inspectors for

greater compliance monitoring.

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However, the following amendments have not proven popular:

♦ An increase of approximately 40% in the fees payable by security service providers under

Regulation 9(3)(a) and (b);

♦ The annual fee is no longer to be paid monthly but annually upfront;

♦ The monthly amount payable by security providers under Regulation 9(3)(c) in respect of

each of their employees is to be increased by 1000% and must also be paid annually

upfront before 30 April; and

♦ A 10% penalty with interest for non-payment will be levied.

The Private Security Levies Act (23 of 2002) allows PSIRA to collect levies, interest and penalties

for non-compliance from members of the association. Non-compliance will also result in suspension

of registration. Members of SIA, who oppose the above-mentioned amendments and will continue

to pay according to the old fee structure, have proceeded with an application for review.

In Terms of Regulation 10(5)(c) of Private Security Industry Regulations, 2003, PSIRA became

aware of the increasingly large number of falsified copies of registration certificates amongst

private security companies and identity theft of valid holders of certificates. To ensure that only

trained and registered security officers are deployed, all security businesses have to keep certified

copies of the identity document and PSIRA registration certificate of any security officer employed.

The Firearms Control Act is in the process of being finalised after public concerns have been

addressed. According to the Minister of Police, there are better processes in place to deal with the

inflow and outflow of applications and there will be better controls for the non-reporting of lost

firearms.

Regulation 11 of the Statutory Code of Conduct for Security Providers relates specifically to the

obligations of employers towards their employees, the conditions relating to the employment of

staff, training and disciplinary codes. Revised minimum wages and conditions were agreed and are

effective for a three-year period from 1 September 2009.

In terms of the Training of Security Officers Regulations, 1992, PSIRA is responsible for the quality

assurance of training within the industry. All training providers in the security industry registered

with PSIRA must also be registered with the Safety and Security Sector Education and Training

Authority (SASSETA).

There are also other acts which control conditions of employment, minimum wages,

communications equipment possession and the use and protection of information.

4.1.3 Black Economic Empowerment

There is no BEE charter for the private security industry at present but there is large-scale support

for the policy and recognition that the disparities in income, employment and occupation need to be

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corrected. Security companies are aware that should they wish to secure a share of government

security tenders, a good BEE standing together with other prerequisites like PSIRA registration is a

requirement.

G4S achieved the Impumelelo Top Empowerment Company for the years 2008, 2009 and 2010. To

be considered for this rating companies need to exhibit black ownership and directorship and either

have a turnover of not less than R10m or show a growth of at least 15% if their turnover is

between R8m and R10m. G4S Cash Solutions is a level 5 contributor while G4S Secure Solutions is

a level 3 contributor.

Other security companies which qualified for Impumelelo in 2010 are CCTV Security Surveillance

Gauteng (Pty) Ltd, Denel Aviation (level 3 rating), Masakhane Security (Pty) Ltd, black owned

Reshebile Aviation & Protection Services and Security SA and Protea Coin. The Protea Coin Group

and Bidvest Magnum are rated as level 3 contributors.

4.2 Regional

International Monetary Fund (IMF) statistics project there are 15 African countries with GDP growth

of 5% and that this growth is accelerating. As large retailers look to expand away from areas of

static growth, more opportunities are likely for the security industry. Shoprite is looking to expand

further in Nigeria for example. Currently it has two stores there and it intends opening 12 more

stores in Africa before June 2012. It also plans to enter the Democratic Republic of Congo.

According to a spokesperson part of what made their expansion from one store in Lusaka, Zambia

in 1995 to 149 stores in 16 countries possible was a corporate wide solution to address internal

shrinkage.

During 2010/2011, Nigeria with its population of 160 million people exhibited annual growth figures

of greater than 8 % and GDP greater than $200bn annually, making it the fastest growing economy

in Africa. Lagos, Nigeria was the venue for the inaugural security exhibition, IFSEC West Africa in

2010 and due to its success, has again been staged there in March 2012. In 2011 there were 90

exhibitors and more than 2200 visitors. The economic boom in Nigeria has brought about a

burgeoning security industry wishing to take advantage of the demand for intrusion detection

systems and demand for access control.

Government bank regulations in Uganda require that all banks install and maintain a CCTV system.

Further security is left to the discretion of individual banks in a country where the incidence of

identity theft and fraud involving stolen cards and chequebooks is rife. Centenary Rural

Development Bank in Kampala has used Hikvision products which take into account varying light

quality, given that power outages are common. Up to three months of video footage of ATM kiosks

can be taken and stored for later viewing. The bank has already noticed an improvement in the

ATM related crime incidents.

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SBV is looking to expand further into Africa with its focus currently on Nigeria (70 CIT trucks) and

Lesotho (5 CIT trucks) where it has established links with the banking community. The markets of

Namibia, Uganda and Swaziland are under consideration as part of their diversification strategy

although the strategy of their “shareholder banks” will be the main determinant. For the present

time South Africa remains their focus.

G4S is on an expansion drive and aims to increase revenue in eastern Africa by 50% as it expands

to Ethiopia and Southern Sudan by seeking acquisitions. With its purchase of Skycom in 2009 it is

well placed to leverage the established African network that Skycom has in the installation of

access control hardware and software and time and attendance solutions. Prior to August 2011 G4S

regional offices included Madagascar, Mauritius, Tanzania, Kenya, Uganda, Malawi and Rwanda.

G4S runs a training academy in Nairobi which teaches new skills to fraud and corruption

investigators. It is in negotiation with the government of Kenya and hopes to bid to manage

Kenya’s first privately-run prison. According to Adam Miller, MD of G4S East Africa, G4S which is

the largest employer aside from government, is likely to list on the Nairobi Stock exchange in the

near future.

4.3 International

According to market research company Memoori, the value of the world electronic security market

is US$19.17bn with growth expected to be 3.7% for the next 5 years. China is expected to make

up the largest proportion of this growth by the end of this decade and Asia overall makes up more

than 30% of the market. Europe accounts for 22% while North America accounts for 26%. Most

popular items are security cameras and related equipment followed by intruder alarms and then

access control.

Demand in China is driven by a growing middle class and burgeoning urbanisation. There are

government stimulus packages such as The Safe Cities Project and 3111 Pilot Project to stimulate

growth in Western China. The most important security industry applications in this region are video

surveillance with the largest market share at 26.3%, access control, intrusion detection and

intelligent management systems. It is predicted that biometrics, cameras, DVRS and intelligent

transportation cards (ITS) will be the four fastest growing applications showing CAGR between 13%

and 36% in 2012.

According to the 2011 Global Retail Theft Barometer, worldwide shrinkage cost retailers more than

$119bn in 2011, an increase of 6.6% from the previous year. Customer theft, including shoplifting

and organised retail crime causes the greatest shrinkage loss followed by employee theft.

The Confederation of European Security Services (CoESS) is an organisation which represents 18

EU Member States and a total of 25 countries, comprising 50 000 companies and 1.8 million private

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security employees. It values the European private security services industry at an annual €35bn.

According to their consolidated figures for 2011 there are certain trends that emerge:

♦ The average ratio of security force participants to 10 000 inhabitants is less than that for

the police (31.11:36.28);

♦ Average annual market growth is 13.3%;

♦ The average combined market share of the top three security firms makes up 54% of the

market;

♦ Average amount of yearly turnover made up by guarding relative to other sectors is

60.19%; and

♦ The average number of cars in use for cash in transit is 825.

A major factor which influences growth in the private security industry in Europe is regulation. More

businesses and homes there are linked directly to police services than they are locally. Technology

is being put to good use as false alarms have to be confirmed with visual verification in order for

service to be activated. In South Africa false alarms are worked into the service costs offered by

local private security companies.

In the United States the security products sector is one of the most dynamic sectors of the US

economy. The emphasis is on cameras, analytics and storage systems. Technology is the main

determinant as analogue cameras are replaced with IP cameras. Analytics is seen as an important

component of good surveillance systems. Storage is no longer localised but is kept on a centralised

network system.

Of interest is a statistic provided by SBV that the world’s highest number of cash heists occurs in

the UK, with around 950 incidents recorded in 2010. However, these are usually low-value thefts

involving little violence. South Africa has experienced a high level of violence in high value heists

but the value of the heists has fallen by 50% since 2008.

5 INFLUENCING FACTORS

5.1 Economic Environment

Many security systems are imported and as a result companies are affected by the volatility of the

rand. Rand volatility opens the way for the influx of cheap imports which are threatening the

market share of established security product brands. The rand depreciated by 18% in 2011 due to

the euro zone crisis and lack of global growth.

The protracted global recession which began in 2008 has heightened awareness of desperate

individuals using fraudulent methods to enter the industry. Thus companies have to use more

thorough screening methods when considering prospective employees. Jack Edery of Elvey Security

Technologies has stated a noticeable result has been consumers being more conservative in their

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spending. The lack of economic growth has slowed down the pace of construction and

refurbishment which is where security providers would have been contracted. The result is there

are fewer “triggers” to install alarm systems or make use of monitoring. Alarm companies have also

reported that getting in monthly subscriptions has become more difficult and that people are

stretching the life of their current systems.

5.2 Input Costs & Efficiency

In the current climate of rising input costs, security companies have focused on business efficiency.

SBV, for example, which was previously focused on business provided by the four major banks

Standard, First National, Nedbank and ABSA, has turned to the retail sector in an attempt to create

efficiencies. Its capital-intensive armoured vehicles are also are being used for retail businesses and

recently Shell became a client.

The security industry is undergoing wage negotiations with The Security Services Employers

Organisation (SSEO). Concern has been expressed at the extreme wage demands leading to an

“unviable negotiating range.” Should wage costs become too high there may be more incentives for

companies to opt for the growing trend of less physical guarding and the greater use of CCTV and

access control. According to Smith from Elvey, a number of security firms have gone out of

business as input costs have become too high while the recession has meant there is less income.

5.3 Crime, Collaboration and Risk Management

Incidents of crime affect how security companies respond. One such example was the CIT incident

in Polokwane in 2006, which led to SBV changing their entire fleet. Since this incident they have

invested heavily in risk prevention and detection, which Krogh from SBV believes has contributed to

the improvement in CIT crime statistics.

Collaborative efforts on crime reduction include liaising with international agencies. Recently the US

Secret Service, the Hawks and South African police were involved in the arrest of a suspect in six

ATM bombings in January and February 2012 in Cape Town. Kalyani Pillay of SABRIC said that as a

result of a joint effort between police, SABRIC and other industry role-players a number of arrests

linked to ATM crime were made during 2011. Replacement costs of ATMs damaged range between

R50 000 and R300 000 depending on the location and type of machine used.

With copper cable theft reaching epidemic proportions, the South African Chamber of Commerce

and Industry started a Copper Theft Barometer in January 2011. The barometer measures theft of

copper and cables on a monthly basis and at December 2011 it stood at R20.9m. The 2011 annual

total was R214m compared to R259m in 2010, a 17.4% decrease. Companies such as Telkom,

Eskom and Transnet have spent substantial amounts securing their premises in an attempt to

prevent this type of crime.

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5.4 Information Technology and Technology

According to Lusax Security Informatics, from being a stand-alone sector, there is now evidence of

integration as IT products are merged with security products to provide a client with the best all-

round solution. Previously the installation of a CCTV camera involved only the running of a coaxial

cable between a camera, a monitor and a VCR. To install an IP video surveillance system however,

involves network, router and server configuration with the configuration of a digital recording

system based on camera features such as resolution. The correct software for control and operation

of the system needs to be found, thus necessitating co-operation between security and IT

companies.

A clear example of new technology demands initiating partnerships in the security industry is the

partnership between Vusela Security and QuikTrak. Vusela, though established primarily as a

guarding company in 2007, began making forays into offering other services when clients in the

banking industry began requesting remote CCTV monitoring, and alarm monitoring which can be

integrated with CCTV. Isma’il Shado, head of IT at SB Telecoms, Nigeria also found that due to

client requests the company had to increase its portfolio of offerings.

As a means of reducing the problem of CIT heists, technology is being put to good use by

eradicating the need to transfer cash. A pneumatic tube system has been installed at a Gauteng

shopping centre. Retailers place their takings into canisters which move at 6m/s to a cash hub

located in the centre. The money is then processed and transferred to ATMs within the shopping

centre. Although the project is initially a joint effort by three parties, SBV, BAC and suppliers of the

technology, it is likely that it will become a SBV facility with the costs being recouped from fees

charged to retailers.

As more technological advancements are made, there is more emphasis on the use of technology.

This is especially so in the arena of guarding where less use is being made of physical security and

more use is being made of CCTV and access control. End users of security are becoming better

informed of the advantages of new forms of security and are demanding more integrated solutions

to their problems. More and more IT capability is required, resulting in more partnerships between

security and IT companies.

IP networks and enabled security products have become more attractive because of the following

advantages.

♦ Installation of additional products is simplified without the need for additional electric power

cables.

♦ Standardised technology platforms do away with redundant systems, technology and data.

Problems can be solved once and IT/security personnel can come up with the best workable

solution.

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♦ Legacy security systems involved much wiring from access points to a field panel and power

supply. However, IP identity management software systems connect to IP-based cameras,

gateways and intercoms at access points.

♦ Making use of an IP network for security products allows surveillance and recording of

videos as far as the network stretches. Other systems such as access control can be easily

added.

Other examples of new technology include the following.

♦ A new product for the guarding sector called Secure Patrol. It is a personnel monitoring

system which uses GPS technology. It can identify when a guard may have been knocked

over, where a guard has left a defined boundary area and if there is excess speed.

♦ High Definition (HD) TV cameras are proving popular for use in monitoring large areas such

as universities. HDTV provides 5 times the resolutions of analogue TV. According to

Security Focus they are becoming “the standard for surveillance cameras.”

♦ Network Video Recorder (NVR) technology is proving more effective than Digital Video

Recorders (DVR) due to the fact that NVRs can be replaced and upgraded.

Biometric recognition security systems are becoming cheaper and more powerful. These systems

are capable of recognising people from their fingerprints, face, speech, retina, iris, handwritten

signature, hand geometry and wrist veins. Good biometric systems are cost-efficient, fast, accurate

and user-friendly and will increase in importance for both governments and companies. They can

be used in organisations such as prisons, high security facilities or when providing access to

networks.

The vehicle tracking and fleet management industry is entirely reliant on technology and IT.

The most basic vehicle tracking component is usually GPS-based, although it can also be based on

a cellular triangulation platform. Data transmission methods are terrestrial or satellite. Advanced

technology in fleet management can also be used for mechanical diagnostics, to form profiles for

any driver at any given time and also to disable a vehicle from a remote location in an emergency

situation. C-Track has increasingly diversified into new technologies where the “track and Tracker”

concept is being “complemented by the provision and application of intelligent data.” Their products

are based on technology using GPS/ GSM (GPRS) & RF location methods and this means that a

vehicle can be located to within 4m of its position.

5.5 Labour Resources

The guarding arena of the private security industry employs at least half of the employees in the

sector. Since the strike action in 2006 which lasted 96 days and resulted in deaths, there has been

a need to make the industry more accountable with regard to working conditions and wage rates.

Proper training of security officers has become more important and PSIRA is tasked with providing

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quality assurance of the training provided by the 530 training centres accredited with the Authority.

The Security Providers Training Alliance has recently been established.

A noticeable trend has been the use of less physical security and the use of more integrated

solutions involving access control and CCTV. At the same time higher standards are being expected

of companies who supply physical guarding. A court ruling where a security company was held

liable for loss and damages caused during a robbery highlights the importance of adequate guard

training. As a result of this particular case, certain aspects were emphasised. Guards are expected

to be given have guidelines regarding their responsibilities, they should be able to contact their

head office and a client must know what can be provided by an experienced, trained and graded

security officer;

Given the current recessionary environment security companies are making use of more stringent

vetting procedures when hiring staff. In this way internal fraud and theft can be reduced. For

example, every employee hired by SBV is vetted on an annual basis. Voice stress analysis (VSA),

developed in the US and used by the FBI is used in preference to lie detector tests as it is less

invasive, is also used. Any outside consultants used such as those involved in technology upgrades

are also subject to screening. Staff members are sent for training every six months. Similarly G4S

Cash Services places emphasis on the recruitment process using polygraph analysis, psychometric

profile tests and ensuring that individuals have a clear record with PSIRA. SIA is spearheading an

“Employment for Life” database, which will assist security providers in assessing the background of

prospective candidates. It will provide a detailed employment history, criminal checks, duration of

employment and training. Security officers will be provided with a loyalty card and incentives upon

joining the scheme.

Employees of companies such as G4S, Protea Coin, Bidvest Magnum, ADT Security and Chubb

belong to the Security Services Employers Organisation (SSEO). Employees of SBV belong to the

major union for the banking industry, SASBO (formerly the South African Society of Bank Officials

but now known as “The Finance Union”). At the beginning of March 2012, organisations received

notification of new minimum weekly wages and increases of 8.5% across various grades of

employees ranging from general workers to heavy motor vehicle drivers and security officers.

There is seldom industrial action due to the benefits offered to members. CIT companies form part

of the Road Freight Bargaining Council.

According to Axis “convergence” in the electronic security industry is creating the need for industry

players to look for potential employees with a mix of IT and security knowledge and skills.

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5.6 Environmental Concerns

The Bidvest Group won the 2011 Ernst & Young award for Excellence in Sustainability Reporting for

“recognition of its commitment to sustainable development.” Bidvest was recognised for its

understanding of, and commitment to sustainability.

In June 2011, Chubb Security announced that it was upgrading its fleet of Toyota Yaris vehicles

with the more fuel efficient Toyota Aygo vehicles which emit less carbon dioxide (CO2).

An opportunity exists for private security firms to combat Rhino poaching with the support of The

World Wildlife Fund (WWF) and TRAFFIC. Despite 232 poaching-related arrests in 2011 and 165 in

2010, it does not yet appear that law enforcement agencies have poaching under control. At the

LeadSA 2011 summit the private security industry was represented together with government

delegates, police officials and members of the business sector to find ways to eradicate the

scourge.

C Track has introduced cDrive, a driver behaviour solution which uses information sent from a

vehicle to improve its energy efficiency. This solution measures seven variables, which include the

speed of the vehicle, its location, how fast the vehicle is accelerating and decelerating, how fast it

negotiates corners and how fast brakes are applied.

5.7 Cyclicality

Crime, the main determinant for security in South Africa, is cyclical and most prevalent around the

festive season. Physical security products and systems are bound by their life cycle. Companies,

keen to improve the longevity of their systems are engaging the services of IP network

professionals to offer them an integrated system. In this way new products can be easily added and

long term cost benefits are realised despite high initial outlays.

6 COMPETITION

The private security industry is highly competitive with almost 9000 registered businesses all vying

for similar business. Companies attempt to differentiate by means of their offerings such as

national footprint, ability to integrate various security services and innovation. At the bottom end of

the market, price and service are major factors. At the top end IT skills and the ability to offer

innovative solutions to client requirements such as security for multiple branches, securing large

areas, replacing physical guards with CCTV cameras and automated monitoring are most important.

6.1 Barriers to Entry

Compliancy requirements form the largest barrier to entry in the industry. Consumers are

becoming aware of the advantages of paying slightly more to obtain the services of a trustworthy

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operator. As inspections from PSIRA are likely to increase and as more participants become aware

of compliancy requirements, fewer unscrupulous and unregistered individuals and companies are

expected in the market.

Security and IT capabilities have to be in place for security companies to enter the corporate

market. These companies are competing with aggressive IP companies who are highly skilled and

are able to offer innovative business management systems to fulfil company needs. High barriers

exist for companies and manufacturers with vested interests in outdated technology. This would

apply to analogue CCTV manufacturers whose products can be substituted with new technology.

6.2 Research and Development

According to Mike Krogh of SBV, research and development was spurred on by the Polokwane cash

heist in 2006 which ended in the death of four guards trapped inside their vehicle. The current

armoured vehicles have a patented Polyurethane Dispensing Unit, or Pudu. In a heist attempt, an

impenetrable wall of hot foam forms inside the vault area. Pudu is now being considered for use in

the cross pavement transport of cash since this is currently the key area of criminal attack. Other

developments to vehicles include:

♦ 360°ballistic protections allowing for protection from an R5 rifle when overturned;

♦ Vehicles are made locally from Swedish steel;

♦ Run-flat tyres and tracking devices; and

♦ Doors open only one at a time with the use of biometric fingerprint access.

Applied DNA Sciences has developed and patented sigNature DNA, developed from botanical DNA

which is mixed with ink for use in CIT boxes. The marker enhances the effectiveness of the ink

because the DNA cannot be copied. It provides forensic evidence that the money is linked to a

particular box and is accepted by courts globally.

6.3 Innovation

Due to the competitive nature of the industry there is much process and technological innovation.

Companies compete by striving to offer the most advanced and integrated approach.

♦ G4S Cash Services offers a CASH360 package which includes cash handling, software, cash

transportation and processing services. Another such product is its end-to-end ATM services

which begin with proposed ATM site analysis going through to cash- forecasting, -

replenishment, and –reconciliation.

♦ The latest IP technology known as SureConnect developed by Elvey Security Technologies

allows security systems to be monitored via mobile phones or the internet instead of using

radio frequencies and phone lines which have limitations in transmission and deficiencies in

reliable signal verification. Video images can be sent with infinitely more detail, speed and

accuracy to control rooms and reaction services.

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As previously mentioned, SBV is breaking ground with its pilot project at a Gauteng shopping

centre which does away with the need to transport cash using vehicles. Instead, a system of

pneumatic tubes is used to convey cash to a cash hub where it is in turn transferred directly to

ATMs. It is likely that this project will be copied to other shopping centres once it is proven

successful.

7 SWOT ANALYSIS

♦ Strengths

o Competitiveness of the industry means companies have to offer new products and

skills to stay ahead.

o Innovative processes and products regularly come onto the market.

o Lack of confidence in the SAPS and recognition of individual responsibility in fighting

crime.

o Despite some problems with the industry regulatory authority, there are many well-

run industry organisations.

♦ Weaknesses

o Existence of unscrupulous operators.

o PSIRA deficiencies.

♦ Opportunities

o Consistently high, though decreasing crime rate.

o New technologies present opportunities for IT companies to enter the market.

o Companies with IT and IP capability could have a competitive advantage.

o Individuals proficient in Security and IT will be in demand for their skills in

integrating security products onto existing networks

o Growth rates of 5% and more in 15 African countries.

o Cyber crime creates opportunities for security providers proficient in network

security.

o CIT solutions for retail centres.

♦ Threats

o New technology for legacy analogue and wired system providers.

o Competition provided by pure IT IP-based providers with skills in integrated

solutions.

o Proposed PSIRA legislation.

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8 FUTURE OUTLOOK

The recession which started in 2008 looks to be protracted despite some glimmers of hope offered

in 2011. Analysts believe the industry will continue to be affected by the stagnant growth in the

property and refurbishment market where many of the new installations occur.

Locally, within the lower LSM categories of residential and SMEs, legacy security systems which

include wired systems will remain acceptable. For this sector security remains a grudge purpose

necessitated by the high crime rate. Within higher LSMs, which include large corporates a high level

of technology integration will be demanded and will involve the provision of integrated business

management systems. The danger of cyber crime as company assets become more mobile as well

as the growth in social media and its associated risks will result in greater demand for security

providers skilled in data protection. The market is likely to see further partnerships between

security and IT companies with advantages for both sides.

Continued expansion by companies into Africa is likely. Adam Miller, managing director of East

Africa for G4S predicts that sales will increase to $250m by 2013 through “organic growth.” Their

aim is to increase revenue in Eastern Africa by 50%. The company aims to expand its operations on

the continent beyond basic activities such as providing security guards, alarms and emergency

response, to include businesses such as the secure transportation of shipments from the ports of

Mombasa in Kenya and Dar es Salaam in Tanzania, and handling cash for commercial and central

banks. According to Isma’il Shado, head of IT at SB Telecoms, there is huge potential in Nigeria for

access control, Time and Attendance, and shift management systems.

Internationally, security is expected to show high grow rates. China’s security industry is expected

to show a CAGR of 10.3% in 2012 with much mass-market consumption potential. According to

iSuppli research, high growth areas internationally are likely to occur in government fields of

airports, prisons and other traditional monitoring markets of banks, civil transport and commercial

and residential buildings. This growth will be spurred on by falling costs of CCTV cameras and

network standardisation. Products of high growth are expected to be biometrics, cameras, DVR and

intelligent transportation card (ITS).

As security products become IT- and IP- enabled and end users become better informed as to their

availability, niche IP players and security systems integrators could have the competitive advantage

in an industry which has historically been slow to change.

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9 INDUSTRY ASSOCIATIONS

♦ Private Security Industry Regulatory Authority (PSIRA)

The main function of PRISA is to regulate and promote the private security industry. All

private security companies are required to register with the authority and comply with its

standards. If companies are non-compliant, penalties are charged.

Tel: +27 12 337 5530

Email: [email protected]

Website: www.psira.co.za

♦ Security Industry Alliance (SIA)

The SIA represents the industry at all levels. It is a non-profit organisation comprising an

alliance of associations and is the vehicle for communicating effectively across the sector. It

represents common interests of the various disciplines and aims to build bridges with the

government departments for the sake of achieving joint goals in safety and security.

Tel: +27 11 498 7468/45

Fax: +27 11 498 7387

Email: [email protected]

Website: www.securityalliance.co.za

♦ South African Bank Risk Intelligence Centre (SABRIC)

SABRIC is a Not for Profit Company based in Midrand, Gauteng, established by the four

major banks to assist the Banking and Cash-in-Transit industries in combating organised

crime. Although mainly funded by the four major banks it also receives funding from banks:

Investec, African Bank, Capitec Bank, Mercantile Bank, Bank of Athens, Ubank and Bidvest

Bank. Other contributing members are CIT companies: SBV, G4S, Protea Coin and

independent ATM services providers, ATM Solutions and Bytes Technologies.

Tel: +27 11 847 3000

Fax: +27 11 847 3001

Email: [email protected]

Website: www.sabric.co.za

♦ Security Association of South Africa (SASA)

This is a non-profit organisation comprising voluntary professionals dedicated to improving

and maintaining service standards and improving relationships between various divisions of

the industry.

Tel: +27 11 828 5314/5

Fax: +27 11 828 5495

Email: [email protected]

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♦ South African Institute of Security (SAIS)

SAIS was established in Johannesburg in 1978 – and was responsible for drawing up the

original training standards for the security industry. Today, it has a membership of 153, of

which 18 are fellows

Tel: +27 86 111 1418 / +27 11 455 3157

Fax: +27 86 518 4374

Email: [email protected]

Website: www.instituteofsecurity.co.za

♦ South African Intruder Detection Services Association (SAIDSA)

This organisation focuses on the installation, repair, maintenance and monitoring of alarm

systems. It represents the employers for the industry and continuously evaluates and

upgrades the skills and standards in the sector.

Tel: +27 11 845 4870

Email: [email protected]

♦ Security Services Employers Organisation (SSEO)

SSEO was formed in October 1997.

Tel: +83 272 1373

Fax: +86 670 9209

Email: [email protected]

Website: www.sseo.org.za

♦ South African National Security Employer’s Association (SANSEA)

This is the only body representing employers in the guarding industry. It sets and monitors

standards in the guarding division and focuses on the development of the industry.

Tel: +27 11 452 8418

Fax: +27 86 503 2505

Email: [email protected]

Website: www.sansea.co.za

♦ Vehicle Security Association of South Africa (VESA)

This is a non-profit organisation, established in 1987, that regulates manufacturing

standards, installation standards and certification of vehicle security systems in the country

and protects the public and insurers from unscrupulous businesses offering cheaper, inferior

products.

Tel: +27 11 315 3588

Fax: +27 11 315 3617

Email: [email protected]

Website: www.vesa.co.za

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♦ Close Protection Association of South Africa (CPASA)

CPASA is a Non-Profit Association created to serve the specialist security industry and

consumers of the industry's products and services.

Website: www.cpasa.org.za

♦ Electronic Security Industry Alliance (ESIA)

The mandate of ESIA, is to unite the entire Electronic Security Industry, encompassing ALL

security disciplines and services, and to provide for a unified voice.

Website: www.esia.co.za

♦ Confederation of European Security Services (CoESS)

CoESS represents the interests of the EU private security services sector.

Tel: +32 2 462 0773

Fax: +32 2 460 1431

Email: [email protected]

Web: www.coess.eu

10 REFERENCES

10.1 Publications

♦ Strategic Plan for the period 2011-2016, Department of Justice and Constitutional

Development, March 2011

♦ The Accountability of South Africa’s Private Security Industry, J. Berg, 2007

♦ Private Security Services in Europe, CoESS, 2011

♦ The Future of South Africa’s Private Security Industry

♦ Security industry convergence – bridging the knowledge divide, School of Economics and

Management, Lund University, 26 August 2007

♦ SASSETA 2011 Annual Report

♦ Security Focus, Vol 30 No. 1, 2012 and Vol 29 No.11/12, 2011

♦ PSIRA Annual Report 2010/2011

10.2 Websites

♦ http://allafrica.com

♦ http://en.wikipedia.org

♦ http://mg.co.za

♦ www.adnas.com

♦ www.axis.com

♦ www.bac.co.za

♦ www.bloomberg.com

♦ www.businessday.co.za

♦ www.coess.eu

♦ www.coin.co.za

♦ www.ctrack.co.za

♦ www.defenceweb.co.za

♦ www.engineeringnews.co.za

♦ www.exchange-rates.org

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♦ www.fidelitysecurity.co.za

♦ www.fmessentials.com

♦ www.frost.com

♦ www.g4s.co.za

♦ www.globalretailtheftbarometer.com

♦ www.gvpedia.com

♦ www.iol.co.za

♦ www.issafrica.org

♦ www.miningweekly.com

♦ www.nedbankgroup.co.za

♦ www.osf.org.za

♦ www.politicsweb.co.za

♦ www.resbank.co.za

♦ www.sabric.co.za

♦ www.saidsa.co.za

♦ www.sapsjournalonline.gov.za

♦ www.sasseta.org.za

♦ www.sccg.com

♦ www.security.co.za

♦ www.securityfocus.co.za

♦ www.servamus.co.za

♦ www.sourcesecurity.com

♦ www.southafricamag.com

♦ www.tac.com

♦ www.topco.co.za

♦ www.traffic.org

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APPENDIX 1

SASA Gold Class Membership Criteria

In order to qualify for SASA gold class of membership, applicants are to supply:

♦ Letter of Good Standing PSIRA

♦ PSIRA Certificate

♦ Tax Clearance Certificate

♦ Letter of Good Standing Workers Compensation Association (WCA)

♦ Letter of Good Standing Provident Fund

♦ Confirmation of Submission of Work Skills Plan (WSP) and Employment

♦ Equity Report / Plan (EER / P)

SASA gold class members will be required to supply the above information in May of

every year.

In addition to the compulsory information required above the following documentation can also be

supplied for verification:

♦ ISO 9001: 2000 QMS

♦ NOSA

♦ BEE – Accreditation Rating

♦ Chambers of Commerce & Industry

♦ Employer Organisation

♦ Other National Certification / membership

♦ International certification / membership

Auditing Of Compliance

Members will be audited on an annual basis to ensure continued compliance and possible

adjustment of their additional rating. Documentation must be received by SASA National Head

Office by no later than the 15th May of each year (two weeks before the beginning of each new

SASA year).

GOLD MEMBERS LIST

♦ Access Security Systems cc

♦ Afri Guard (Pty) Ltd

♦ Alpha Security & Patrols

♦ Analytical Risk Management (Pty) Ltd

♦ Apcan Risk Management

♦ Bidvest Magnum (Pty) Ltd

♦ Blue Light Monitoring and Armed Response

♦ Bona Electronic Solutions (Pty) Ltd

♦ Bosasa Security (Pty) Ltd

♦ Byers and Associates Security Services CC

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♦ Callguard Security Services (Pty) Ltd

♦ Combined Private Investigations cc

♦ Corporate Security

♦ Doculam (Pty) Ltd

♦ Elvey Security Technologies

♦ Enforce Security Services (Pty) Ltd

♦ FBS Security Services (Pty) Ltd

♦ Fire & Instrument Services

♦ Grey Guarding

♦ Grinnell Security Services

♦ Guardforce International Transportation Ltd

♦ Gubevu Security Group

♦ iFacts (Pty) Ltd

♦ Imvula Quality Protection (Africa) (Pty) Ltd

♦ ISASA Security Training CC

♦ Ithemba Skymark Security Services

♦ Izikathi Security (Pty) Ltd

♦ John Elliott Security CC

♦ LAD Security

♦ Malandela Security Services (Pty) Ltd

♦ Mantis Risk Solutions cc T/A Mantis Security

♦ Maxim Security Services (Pty) Ltd

♦ Nationwide Security Holdings (PTY) LTD

♦ Ntamo Technologies (Pty) Ltd

♦ Omega Risk Solutions (Pty) Limited

♦ Protea Coin Group

♦ Red Alert TSS (Pty) Ltd

♦ Security Patrol Experts

♦ Servamus Security cc

♦ Servest Security - a Division of Servest (Pty) Ltd

♦ Stallion Security

♦ Symbiotix Group (Pty) Ltd

♦ Thorburn Security Solutions (Pty) Ltd

♦ Trellicor (Pty) Ltd

♦ Ummvemve Investments CC T/A Security-4-U

♦ Vikela Aluvin (Pty) Ltd (Aluvin Securiseal (Pty) Ltd

♦ X-Pert Security Services

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APPENDIX 2

Vesa Members list of Vehicle Tracking companies:

CELLSTOP SOUTH AFRICA (PTY) LTD

Contact: Philip Bromley

Tel: +27 21 702 0122

Fax: +27 21 702 2446

Email: [email protected]

Website: www.cellstop.co.za

GLOBAL TELEMATICS (S.A.) (PTY) LTD

Contact: Richard Van Rooyen

Tel: +27 21 915 6505/6500

Fax: +27 21 914 0505

Email: richard.vanrooyen@telematics-

sa.co.za

Website: www.global-telematics.com

PFK ELECTRONICS (PTY) LTD

Contact: Colin Snyman

Tel: +27 31 274 7200

Fax: +27 31 205 4324

Email: [email protected]

Website: www.autowatch.co.za

PULSIT ELECTRONICS (PTY) LTD

Contact: Bokkie Fourie

Tel: +27 87 151 3280

Fax: +27 16 362 4055

Email: [email protected]

Website: www.pulsit.co.za

RAPTOR VEHICLE TRACKING (PTY) LTD

Contact: Justin Taylor

Tel: +27 86 010 6231

Fax: +27 86 668 0623

Email: [email protected]

Website: www.raptorvehicletracking.co.za

SKYGISTICS (PTY) LTD

Contact: Myrtle Du Preez

Tel: +27 86 500 2710

Fax: +27 12 682 1631

Email: [email protected]

Website: www.skygistics.com

SMARTSURV WIRELESS (PTY) LTD

Contact: Marius Symms

Tel: +27 21 529 7300

Fax: +27 21 529 7399

Email: [email protected]

Website: www.smartsurv.co.za

SMM TELEMATICS (PTY) LTD

Contact: Phatudi Mashamaite

Tel: +27 86 111 5217

Fax: +27 11 656 5830

Email: [email protected]

Website: www.smmtelematics.co.za

TRACKMATIC SOLUTIONS (PTY) LTD

Contact: David Slotow

Tel: +27 86 199 9927

Fax: +27 86 655 8874

Email: [email protected]

Website: www.trackmatic.co.za

VSC SOLUTIONS

Contact: Gert Basson

Tel: +27 11 523 4800

Fax: +27 11 523 4911

Email: [email protected]

Website: www.vscsolutions.co.za

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ORGANOGRAM 88920

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Page 2

of

2

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COMPANY PROFILES

ADT SECURITY (PTY) LTD

Reg. Number: 2000/029969/07

VAT Number: 4890203732

BEE Rating: Level 7 Empowerdex Updated: 2012-01-30

Postal Address: Physical Address:

PO Box 782224, Sandton

2146

1 Charles Crescent, Eastgate Ext 4

Sandton, 2090

Tel: +27 11 259 3501 Fax.: 086 121 2425

Email: [email protected] Website: www.adt.co.za

Branches

Branch Area Head Tel

ADT Bloemfontein Free State

+27 86 121 2600

ADT Brits North West

+27 86 121 2507

ADT Cape Town Western Cape

+27 86 121 2300

ADT Centurion Gauteng

+27 12 663 7192

ADT East Hub (Jhb) Gauteng

+27 11 425 4539

ADT East London Eastern Cape

+27 86 121 2900

ADT George Western Cape

+27 44 801 8600 / 086 12 12 340

ADT Hartbeespoort Gauteng

+27 12 253 1655

ADT Hermanus Western Cape

+27 86 121 2306

ADT Hout Bay Western Cape

+27 21 790 2643

ADT Jeffrey's Bay Eastern Cape

+27 86 121 2250

ADT Johannesburg Gauteng

+27 86 121 2400

ADT Kimberley Eastern Cape

+27 86 121 2650

ADT KwaZulu-Natal KwaZulu-Natal

+27 86 121 2100

ADT KZN South Coast KwaZulu-Natal

+27 86 121 2109

ADT Middelburg Mpumalanga

+27 86 121 2540

ADT Nelspruit Mpumalanga

+27 86 121 2560

ADT North Hub (Jhb) Gauteng

+27 86 121 2400

ADT Paarl Western Cape

+27 86 121 2307

ADT Pietermaritzburg KwaZulu-Natal

+27 33 394 0135

ADT Plettenberg Bay Western Cape

+27 44 533 1775 / 086 12 12 340

ADT Polokwane Limpopo

+27 86 121 2570

ADT Port Elizabeth Eastern Cape

+27 86 121 2200

ADT Pretoria Gauteng

+27 86 121 2500

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ADT Pretoria Satellite Office Gauteng

+27 86 121 2506

ADT Richards Bay & Empangeni KwaZulu-Natal

+27 35 789 3438

ADT Rustenburg North West

+27 86 121 2520

ADT Sedgefield Eastern Cape

+27 44 343 3297 / +27 86 121 2340

ADT South Hub (Jhb) Gauteng

+27 11 869 5330

ADT Umhlanga KwaZulu-Natal

+27 86 121 2107

ADT Vaal Triangle Gauteng

+27 86 121 2430

ADT Welkom Free State

+27 86 121 2220

ADT West Hub (Jhb) Gauteng

+27 11 763 4223

ADT Witbank Mpumalanga

+27 86 121 2530

Shareholders

Shareholder Percentage

Tyco International Luxembourg S.A.R.L 100.00

Management

Name Position Email Appointed

Mr Keith Alberts National Operations Director

Mr Graham Boys Regional Managing Director: KwaZulu-Natal

Mr Pierce Butler Commercial Director

2001-09-17

Ms Deborah Fisher Financial Director

Mr Adrian Good Regional Managing Director: Western Cape

Mr Clive Humphrey Regional Managing Director: Northern Region

Mr Rodney Kekana Human Resources Director

Mr Richard Mcghee Sales Director

Mr Roy Rawlins Regional Managing Director: Gauteng

Mr Danna Strydom Managing Director

2002-02-13

History of Business

The American District Telegraph was established in 1874. Sentry Group Ltd and all its subsidiaries

including Volberay Investments (Pty) Ltd t/a Wright Security Armed Response was acquired on 1

July 2001 and incorporated into a shelf company named Kovacs Investments 180 (Pty) Ltd for

registration purposes. The name subsequently changed to ADT Security Services (Pty) Ltd. On 5

December 2001, the company underwent a name change to ADT Security (Pty) Ltd. Tyco

International acquired the worldwide operations of ADT Security in 1998.

Nature of Business

ADT Security (Pty) Ltd operates as a security company providing a 24 hour armed response and

monitoring service to residential, corporate and commercial clients. The company, through its

national network of dealers also installs alarm systems and supplies and installs fire protection

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equipment. ADT Kusela (Pty) Ltd provide guarding services to the corporate, commercial and

industrial sectors.

Nr. of Employees 11 000

Banks Standard Bank of South Africa Ltd

Auditors Deloitte & Touche

Brandnames

ADT, Always There, Sensormatic

Trademarks

ADT, Always There

Distribution Rights

ADT, Always There

Subsidiaries, Associates & Investments

Name Percentage

ADT Kusela (Pty) Ltd 100.00

ADT Security Guarding (Pty) Ltd 100.00

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ARCFYRE INTERNATIONAL (PTY) LTD

Reg. Number: 2005/005715/07

VAT Number: 4510218128

BEE Rating: Level 4 Premier Verification Updated: 2012-04-12

Postal Address: Physical Address:

PO Box 971, Banbury

2164

Unit 2 Bushhill Office Park, Jan Frederick Road

Randpark Ridge, 2169

Tel: +27 11 794 9502 Fax.: +27 11 794 8236

Email:

Website: www.arcfyre.com

Shareholders

Shareholder Percentage

Mr JM Higgings 100.00

Management

Name Position Email Appointed

Mr Jared Murray Higgings Chief Executive Officer

Ms Lee-Anne Larkins Travel Manager

Ms Marlene Welman Operations Manager [email protected]

Ms Filipa Wiid Financial Administrator [email protected]

History of Business

Arcfyre International (Pty) Ltd was registered in 2005.

Nature of Business

Arcfyre International (Pty) Ltd provide security and risk management services.

Nr. of Employees 23

Banks Standard Bank of South Africa Ltd

Auditors Taxpro

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BIDVEST MAGNUM (PTY) LTD

Reg. Number: 1998/022683/07

VAT Number: 4490145564

BEE Rating: Level 3 Empowerdex Updated: 2012-02-09

Postal Address: Physical Address:

PO Box 1219, Kelvin

2054

Carlon Falco Office Building, 16 Southway Road

Kelvin, 2090

Tel: +27 11 555 4949 Fax.: +27 11 555 4950

Email:

Website: www.magnumshield.co.za

Branches

Branch Area Head Tel

Bidvest Magnum Cape Town Western Cape Mr Andrew Holdsworth +27 86 162 4278

Bidvest Magnum Durban KwaZulu-Natal Mr Mac Maharaj +27 861 243 326

Bidvest Magnum East London Eastern Cape Mr Francois Faber +27 43 735 3170

Bidvest Magnum Gauteng Central Gauteng Ms Madie Leonard +27 861 243 248

Bidvest Magnum Johannesburg Gauteng Mr Vicky Bernard +27 861 243 470

Bidvest Magnum Knysna Eastern Cape Mr Francois Faber +27 861 243 737

Bidvest Magnum Mthatha Eastern Cape Mr Francois Faber +27 47 537 1561

Bidvest Magnum Pietermaritzburg KwaZulu-Natal Mr Mac Maharaj +27 861 243 326

Bidvest Magnum Port Elizabeth Eastern Cape Mr Francois Faber +27 861 243 737

Bidvest Magnum Pretoria Gauteng Mr Johan Nell +27 861 243 782

Bidvest Magnum Richards Bay KwaZulu-Natal Mr Mac Maharaj +27 35 789 8827

Bidvest Magnum Rustenburg Gauteng Mr Johan Nell +27 14 594 1289

Bidvest Magnum Vereeniging Gauteng Mr Vicky Bernard +27 16 422 2232

Shareholders

Shareholder Percentage

Bidvest Group Ltd, The (Held by Government Employees Pension Fund - 19.5%;

State Street Bank and Trust - 6.6%; Dinatla Investment Holdings (Pty) Ltd - 4.7%;

SSB Client Omnibus - 4.6%); Northern Trust Company London - 2.7%; SSB West

Client - 1.8%; JP Morgan Chase Bank London - 1.8%; Sanlam - 1.7%; Vanguard

Emerging Markets - 1.6%; Old Mutual Life Assurance Compnay South Africa -

1.5%; Liberty Life Association of South Africa Ltd - 1.2%; Joffe Family - 1.1%;

Brown Brothers Harriman (Luxembourg) S.C.A. - 1.1%)

100.00

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Management

Name Position Email Appointed

Mr Roy Allen Clarke Operations Director

2008-01-12

Mr David John Crichton Managing Director

Mr Lionel Isaac Jacobs Executive Director

Mr Christiaan Laubscher Human Resources Director

2008-01-07

Mr David John Mitchell Sales Director

Mr Kevin Craig Monk Non-Executive Director

2010-06-21

Mr Kevin Moodley Divisional Financial Director

Mr Alfred (Alf) William Still Financial Director

2006-01-07

Mr John Mitchell Taylor Non-Executive Director

2006-01-07

History of Business

The company was established in November 1998, when the Bidvest Group Ltd acquired Shield

Security Group (Pty) Ltd. The assets and operations were incorporated into a shelf entity named

Basfour 616 (Pty) Ltd and the name was changed to Shield Security Group (Pty) Ltd. The subsidiary

companies were also acquired and divisionalised. In February 2002, Magnum Security (Pty) Ltd

merged with Shield Security Group (Pty) Ltd and the name changed to Magnum Shield Security

Services (Pty) Ltd. In October 2010, the company underwent a further name change to Bidvest

Magnum (Pty) Ltd.

Nature of Business

Bidvest Magnum (Pty) Ltd operates as an industrial security firm supplying security manpower. The

company is also involved in security systems analysis, investigation and undercover investigation

activities. Specialised services are offered through an independent division and includes the

following:

♦ Profiling of personal particulars, criminal history, financial records and qualifications

♦ Polygraphing which is used for pre-employment screening

♦ Technical services include covert cameras, Technical Surveillance Counter Measures (TSCM)

- ’Debugging‘

♦ Investigations to assist companies and clients in all aspects of commercial and industrial

investigations

♦ Placement of Crime Intelligence Officers as part of the workforce to provide management

with a means of gathering information specific to criminal and other activities within an

organisation as well as the possible breach of company policies and procedures.

The fully compliant Dog Unit is based in Brakpan and supplies dogs to Gauteng, Mpumalanga and

the North West Province.

Clients include mainly the mining and maritime industries, but G4s also has a strong prescence in

the following sectors:

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• Hospitality and gaming

• Commercial and retail

• Educational institutions

• Financial institutions

• Residential and golf estates.

Nr. of Employees 8 678

Empowerment

Stake 28.43%

Secretary Bidvest Secretarial Services

Banks Standard Bank of South Africa Ltd

Auditors KPMG Inc

Brandnames

Magnum Shield

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CHUBB SECURITY SA (PTY) LTD

Reg. Number: 1950/036293/07

VAT Number: 4220101101

BEE Rating: Non-Compliant BEE Rating Solutions Updated: 2012-01-31

Postal Address: Physical Address:

Private Bag X47, Wilro Park

1731

Chubb House, Cnr Pigeon & Pheasant Streets

Horison Park, 1724

Tel: +27 11 761 7000 Fax.: +27 11 761 7272

Email: [email protected] Website: www.chubb.co.za

Branches

Branch Area Head Tel

Chubb Amanzimtoti KwaZulu-Natal

+27 861 903 911

Chubb Ballito KwaZulu-Natal

+27 861 032 911

Chubb Bedfordview Gauteng

+27 861 101 911

Chubb Bloemfontein Free State

+27 861 051 911

Chubb Brits North West

+27 861 012 911

Chubb Cape Town Western Cape

+27 861 021 911

Chubb Durban KwaZulu-Natal

+27 861 031 911

Chubb George Western Cape

+27 861 044 911

Chubb Hartbeespoort North West

+27 861 012 911

Chubb Jhb Central Gauteng

+27 861 505 911

Chubb Ladysmith KwaZulu-Natal

+27 861 036 911

Chubb Mafikeng North West

+27 861 018 911

Chubb Meyersdal Gauteng

+27 861 303 911

Chubb Nelspruit Mpumalanga

+27 861 888 911

Chubb Newcastle KwaZulu-Natal

+27 861 034 911

Chubb Pietermaritzburg KwaZulu-Natal

+27 861 033 911

Chubb Polokwane Limpopo

+27 861 015 911

Chubb Port Alfred Eastern Cape

+27 861 046 911

Chubb Port Elizabeth Eastern Cape

+27 861 041 911

Chubb Port Shepstone KwaZulu-Natal

+27 861 315 911

Chubb Pretoria Gauteng

+27 861 012 911

Chubb Randburg Gauteng

+27 861 505 911

Chubb Richards Bay KwaZulu-Natal

+27 861 035 911

Chubb Roodepoort Gauteng

+27 861 505 911

Chubb Rustenburg North West

+27 861 014 911

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Chubb Scottburgh KwaZulu-Natal

+27 861 039 911

Chubb Vanderbijlpark Gauteng

+27 861 016 911

Chubb Welkom Free State

+27 861 057 911

Chubb Witbank Mpumalanga

+27 861 013 911

Shareholders

Shareholder Percentage

United Technologies Corporation (UTC) (USA) 100.00

Management

Name Position Email Appointed

Mr Paul Robert Clegg Group Human Resources Director

2008-06-30

Mr Stefan Oberholtzer Group Managing Director

2008-09-06

Mr Leonard Ralph (Len)

Whiting Group Financial Director

2011-04-01

History of Business

The company was established in March 1950 as Chubb Alarms (Pty) Ltd and underwent a name

change to Chubb Security SA (Pty) Ltd in March 1998.

Nature of Business

Chubb Security SA (Pty) Ltd offers a range of security and fire protection services, through the

following business units:

♦ Chubb Electronic Security (CES) offers a total security solution and installs, maintains and

monitors electronic intruder alarms and surveillance systems. It provides an advanced

armed response service through a national network of monitoring and dispatch centres

throughout South Africa.

♦ Chubb Integrated Systems provides integrated or independent system solutions for access

control, asset management, closed circuit television, fire systems, intrusion fencing as well

as public address and voice evacuation. The fire offering covers the full range of detection,

protection and suppression options. The company has the ability to provide a total solution

for their client’s risk management requirements and in addition, has an in-house design and

commissioning office.

♦ Chubb Fire is a fire fighting equipment manufacturer/distributor and service provider.

Nr. of Employees 2 900

Secretary Mr Leonard (Len) Whiting

Banks First National Bank (a division of FirstRand Bank Ltd); Standard Bank of

South Africa Ltd

Auditors PricewaterhouseCoopers Inc

Attorneys Routledge Modise Attorneys

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Brandnames

Chubb, Chubb Electronic Security, Chubb Fire, Chubb Integrated Systems, SabreFonic

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COMPUTER SECURITY & FORENSIC SOLUTIONS (PTY) LTD

Reg. Number: 2000/015273/07

VAT Number: 4130183488 Updated: 2012-04-17

Postal Address: Physical Address:

PO Box 66219, Highveld 1

0169

123 Centurion Galleries, Jean Avenue

Centurion, 0157

Tel: +27 12 667 3240 Fax.: +27 12 667 3227

Email:

Website: www.csfs.co.za

Shareholders

Shareholder Percentage

Directors 100.00

Management

Name Position Email Appointed

Ms Heidi Britz Financial Manager

Mr Willem (Wimpie) Cornelius

Britz Managing Director [email protected] 2000-07-11

Mr Craig Retief Information Security Director

2010-05-28

Mr Johannes Roux IT Forensic Director

2010-05-28

History of Business

Computer Security & Forensic Solutions (Pty) Ltd (CSFS) was registered in 1999.

Nature of Business

Computer Security & Forensic Solutions (Pty) Ltd (CSFS) focus is to deliver IT Security, IT Forensic

(Cyber/Computer and Mobile), IT Risk vulnerability Assessment/Auditing and IT Intelligence

services.

CSFS provides in house customer base developed solutions, with the ability to manage the risk in a

manner which will not only provide the client with security on their network and the Internet, but

also enable them to institute prosecution in whatever form.

Client base ranges from small, medium, Corporate Enterprises and Governments throughout South

Africa and Africa.

Banks Standard Bank of South Africa Ltd

Auditors El van Wyk

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ENFORCE SECURITY SERVICES (PTY) LTD

Reg. Number: 2002/021840/07

VAT Number: 4030214961

BEE Rating: Level 3 Integra Updated: 2012-01-31

Postal Address: Physical Address:

PO Box 937, Durban

4000

43 Sea Cow Lake Road, Upton Park

Durban, 4001

Tel: +27 31 573 7600 Fax.: +27 31 579 3040

Email: [email protected] Website: www.enforce.co.za

Branches

Branch Area Head Tel

Enforce Security Services Cape Town Western Cape

+27 21 511 5558

Enforce Security Services Dubai United Arab Emirates

+97 14 409 3333

Enforce Security Services Gauteng Gauteng

+27 11 312 4500

Enforce Security Services Nelspruit Mpumulanga

+27 13 755 4698

Enforce Security Services Pietermaritzburg KwaZulu-Natal

+27 33 342 1347

Enforce Security Services Polokwane Limpopo

+27 15 291 1910

Enforce Security Services Port Elizabeth Eastern Cape

+27 41 484 2440

Enforce Security Services Richards Bay KwaZulu-Natal

+27 35 753 4979

Shareholders

Shareholder Percentage

Mr SJ Ncube 52.00

Mr AP Feuilherade 12.00

Mr CJ Phipps 12.00

Mr DC Birkett 12.00

Mr DG Lategan 12.00

Management

Name Position Email Appointed

Mr David Christopher

Birkett Group Business Development Director

2004-08-27

Mr Anthony Paul

Feuilherade Marketing Director

2002-09-30

Mr Derek George

Lategan Managing Director: Guarding

2004-08-27

Mr Peter John Main Operations Director

2009-08-01

Ms Laura Tenita Moodley Financial Director [email protected] 2006-01-09

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Mr Sibusiso Justin Ncube Executive Chairman

2004-08-27

Mr Clinton James Phipps Chief Executive Officer

2002-09-30

History of Business

Enforce Cleaning Services (Pty) Ltd commenced operations in February 2003 when a shelf company

was utilised for registration purposes. In October 2004, the company underwent a name change to

Enforce Security Services (Pty) Ltd.

Nature of Business

Enforce Security Services (Pty) Ltd offers a range of security services focused on the Commercial,

Retail, Industrial, Community, Hospitality, Health Care, Mining and Special Events market sectors.

Services and products include:

♦ Guarding services

♦ Alarms and armed response

♦ Remote Video Monitoring

♦ CCTV and access control

♦ Fire and voice evacuation

♦ Investigations

♦ Integrated solutions

♦ Training

♦ VIP Protection

♦ Special Events, specialist in event and crowd planning management

♦ Vimbela Services which specialises in the provision of uniformed parking attendants, pay

parking management, special event parking and access control service for schools,

churches, private functions, special events and social gatherings.

Nr. of Employees 8 000

Empowerment

Stake 52%

Banks First National Bank (a division of FirstRand Bank Ltd)

Auditors Alan H English & Co

Turnover [2009] R350.0m (Est) (As per company)

Brandnames

Enforce

Trademarks

Enforce

Distribution Rights

Enforce

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FIDELITY SECURITY GROUP (PTY) LTD

Reg. Number: 2002/030292/07

VAT Number: 4150170407

BEE Rating: Level 2 Empowerdex Updated: 2012-02-01

Postal Address: Physical Address:

Private Bag X5, Westgate

1784

104D Mimosa Road, Roodepoort

1734

Tel: +27 11 763 9000 Fax.: +27 11 768 5034

Email:

Website: www.fidelitysecurity.co.za

Branches

Branch Area Head Tel

Fidelity Security Aliwal North Depot Eastern Cape

+27 51 634 1048

Fidelity Security Armoury Gauteng Mr Sarel Yssel +27 11 672 0159

Fidelity Security Ballito KwaZulu-

Natal Ms Pam Otten +27 32 945 2717

Fidelity Security Bethlehem Free State Mr P Kriel +27 58 303 0015

Fidelity Security Bloemfontein Free State Mr W Pretorius +27 51 432 3655

Fidelity Security Botswana Botswana

Fidelity Security Butterworth Eastern Cape Mr Gayiza

Fidelity Security Cape Town Western

Cape Mr. F Louw +27 21 692 1290

Fidelity Security Durban KwaZulu-

Natal

Mr. Neil Burger

(GM) +27 31 251 5600

Fidelity Security East London Eastern Cape Mr G Banks +27 43 731 1358

Fidelity Security East Rand Gauteng Mr L Pagel +27 11 892 0380

Fidelity Security Eastern Cape Region

Office Eastern Cape Mr P Naidoo

Fidelity Security Free State/Northern

Cape & Limpopo Region Office Gauteng Mr G Pretorius

Fidelity Security Gauteng Johannesburg

Regional Office Gauteng Mr B Smith +27 11 672 0159

Fidelity Security George Eastern Cape Mr W Groves

Fidelity Security Graaff-Reinett Depot Eastern Cape

+27 71 860 9283

Fidelity Security Johannesburg - North

West Gauteng

Mr M Van

Nuwenhuizen +27 11 672 3412

Fidelity Security Johannesburg City

South Gauteng Mr. S Pillay +27 11 672 5463

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Fidelity Security Kimberley Northern

Cape Mr D Paton +27 53 831 5035

Fidelity Security Klerksdorp North West Mr H Hayter +27 18 468 1162

Fidelity Security Kokstad KwaZulu-

Natal Mr W van Staden

Fidelity Security Kroonstad Free State Mrs K Coetzee +27 56 212 6720

Fidelity Security KwaZulu-Natal Region

Office

KwaZulu-

Natal Mr F Bartmann +27 31 251 5600

Fidelity Security Ladysmith / Bergville /

Estcourt

KwaZulu-

Natal Mr Jan Ferreira

Fidelity Security Mafikeng North West Mr Aubrey Fisher +27 18 381 7573

Fidelity Security Makhado (Louis

Trichardt) Limpopo

Mr P van

Skalkwyk +27 15 516 2958

Fidelity Security Malelane Depot Mpumalanga Mr M van Staden +27 13 790 0334

Fidelity Security Marble Hall Mpumalanga Mr G van

Aswegen +27 13 261 3132

Fidelity Security Matsapha Swaziland Mr Musa Zwane +27 26 8518 9523 80952

Fidelity Security Mbabane Swaziland Mr J Ngubeni +26 8404 9775 2809

Fidelity Security Midrand Gauteng Mr L Pillay +27 11 318 4931

Fidelity Security Moralla (Liembo) Free State Mr W Pretorius +27 51 432 3655

Fidelity Security Mpumalanga & North

West Region Office Gauteng Mr M Bartmann +27 11 674 2825

Fidelity Security Mthatha Eastern Cape Mr Kruger +27 47 531 2282

Fidelity Security National Operations

Director Gauteng Mr L Bartmann +27 11 674 1800

Fidelity Security Nelspruit Nelspruit Mr F Swanepoel +27 13 752 7098

Fidelity Security Newcastle KwaZulu-

Natal Mr Danie van Zyl

Fidelity Security Pietermaritzburg KwaZulu-

Natal Mr Derick Cross +27 33 394 7096

Fidelity Security Pinetown KwaZulu-

Natal

Mr Ramesh

Kalicharan +27 31 705 5911

Fidelity Security Polokwane Limpopo Mr M Davel +27 15 297 1446

Fidelity Security Pongola KwaZulu-

Natal Mrs E. Ferriera +27 34 413 1061

Fidelity Security Port Elizabeth Eastern Cape

+27 41 364 0890

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Fidelity Security Port Shepstone KwaZulu-

Natal Mrs M Petrides

Fidelity Security Pretoria Gauteng Mr K Van Wyk +27 12 804 2709

Fidelity Security Pretoria Regional Office Gauteng Mr M Jooste +27 12 804 2709

Fidelity Security Queenstown Eastern Cape

+27 45 838 4078

Fidelity Security Qwa Qwa Free State Mr D Maputi +27 58 713 2237

Fidelity Security Richards Bay / Eshowe KwaZulu-

Natal Mr Viljoen +27 35 787 2326

Fidelity Security Rustenburg North West Mr P Bolz

Fidelity Security Sibasa Limpopo Mr S Matsila +27 15 962 1135

Fidelity Security Standerton Mpumalanga Mr V Gopal +27 17 712 5460

Fidelity Security Steelport Mpumalanga Mr P Lategan +27 13 230 5318

Fidelity Security Swaziland &

Mozambique Regions Swaziland

Mr M Barlow-

Jones +26 8404 5319

Fidelity Security Upington Nothern

Cape Mr D Paton +27 54 516 8889

Fidelity Security Vereeniging Gauteng Mr W Willemse +27 16 422 9183 /673469

Fidelity Security Vryburg North West Mrs M Muller +27 53 927 4494 /382022

Fidelity Security Vryheid / Ulundi KwaZulu-

Natal Mr D Van Zyl +27 34 983 9848/5

Fidelity Security Welkom Free State Robert Burger +27 57 396 1128

Fidelity Security Western Cape Regional

Office

Western

Cape Mr F Louw +27 21 692 1290

Fidelity Security Witbank Mpumalanga Hendrik Maaz +27 13 656 0389

Fidelity Security Worcester Western

Cape +27 23 347 7902

Shareholders

Shareholder Percentage

New Seasons 25.50

Khulani Holdings 25.45

Eagle Creek Investments 393 (Pty) Ltd 15.86

Corvest 6 (Pty) Ltd 13.00

Dickerson Investments 13.00

Share Participation Trust 4.39

Guarding Trust, The 2.71

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Management

Name Position Email Appointed

Mr Wahl Justice

Bartmann Chief Executive Officer

2003-07-15

Mr Norman Beckerleg Financial Manager [email protected]

Mr Stephen John Brown Non-Executive Director

2005-12-14

Mr Robert Ian Dickerson Non-Executive Director

2005-08-12

Mr Shadrack Khumalo Non-Executive Director

2007-10-10

Mr Ashley Mabogoane Non-Executive Director

2006-07-18

Mr Venay Shaun Maharaj Executive Director

2003-07-15

Mr Vusumuzi Paul

Mhlungu Non-Executive Director

2005-08-12

Mr Nelson Mwale Non-Executive Director

2010-09-28

Mr Nokukhanya Pamella

Nzuza Non-Executive Director

2010-09-13

Mr Anoj Singh Non-Executive Director

2007-09-10

Mr Felix (Patrick)

Zondo Executive: Human Resources

History of Business

Fidelity Security Group (Pty) Ltd was registered in November 2002.

Nature of Business

Fidelity Security Group (Pty) Ltd operates as a professional security service provider. Services are

offered to the domestic, industrial, corporate and commercial sectors and include:

♦ Guarding services

♦ Reaction services

♦ Mining security services

♦ Electronic security

♦ Risk analysis.

Specialised training courses, mentorships and learnership programmes and pre-employment

qualification tests are also offered to prospective employees.

Nr. of Employees 33 000

Empowerment

Stake 53.58%

Banks ABSA Bank Ltd

Auditors PricewaterhouseCoopers Inc

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Brandnames

Fidelity

Subsidiaries, Associates & Investments

Name Percentage

CSG Guarding (Pty) Ltd 100.00

Eyethu (Pty) Ltd 100.00

Fidelity Corporate Services (Pty) Ltd 100.00

Fidelity Security Services (Pty) Ltd 100.00

Fidelity Services Group Swaziland (Pty) Ltd 100.00

Gulf Fidelity Security Services LLC 100.00

Mossguard Protection Services (Pty) Ltd 43.00

Nokhul (Pty) Ltd 49.00

Secureco (Pty) Ltd 100.00

Secureco KZN (Pty) Ltd 48.00

Umsuka Wemali Finance (Pty) Ltd 100.00

Unity Pride Security Services (Pty) Ltd 49.00

Wesguard Security Services (Pty) Ltd 100.00

General Comment

Fidelity Security Group operates throughout South Africa, Botswana, United Arab Emirates and

Swaziland.

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G4S CASH SOLUTIONS (SA) (PTY) LTD

Reg. Number: 1964/008074/07

VAT Number: 4610218374

BEE Rating: Not Finalised Updated: 2012-02-01

Postal Address: Physical Address:

Private Bag X34, Bryanston

2021

Hertford House, Eton Office Park

17th Harrison Road, Bryanston, 2191

Tel: +27 11 709 8000 Fax.: +27 86 625 5166

Email:

Website: www.g4s.com

Branches

Branch Area Head Tel

G4S Cash Solutions (SA) Bethlehem Free State

+27 58 303 8010

G4S Cash Solutions (SA) Bloemfontein Free State

+27 51 432 7720

G4S Cash Solutions (SA) Boksburg Gauteng

+27 11 894 7831

G4S Cash Solutions (SA) Brackenfell Cape Town Western Cape

+27 21 981 0701

G4S Cash Solutions (SA) Burgersfort Limpompo

+27 13 231 8601

G4S Cash Solutions (SA) Cape Town Western Cape

+27 21 529 7900

G4S Cash Solutions (SA) Cleveland Gauteng

+27 11 622 6710

G4S Cash Solutions (SA) Durban KwaZulu-Natal

+27 31 240 8600

G4S Cash Solutions (SA) East London Eastern Cape

+27 43 736 6600

G4S Cash Solutions (SA) George Western Cape

+27 44 874 4657

G4S Cash Solutions (SA) Germiston Gauteng

+27 11 872 0516

G4S Cash Solutions (SA) Johannesburg Head Office Gauteng

+27 11 709 8000

G4S Cash Solutions (SA) Kimberley Northern Cape

+27 53 832 1722

G4S Cash Solutions (SA) Klerksdorp North West

+27 18 462 3193

G4S Cash Solutions (SA) Krugersdorp Gauteng

+27 11 953 1900

G4S Cash Solutions (SA) Louis Trichardt Limpompo

+27 15 516 1421

G4S Cash Solutions (SA) Mafikeng North West

+27 18 381 3393

G4S Cash Solutions (SA) Marble Hall Mpumalanga

+27 13 261 1050

G4S Cash Solutions (SA) Mthatha Eastern Cape

+27 47 532 3021

G4S Cash Solutions (SA) Nelspruit Mpumalanga

+27 13 753 2205

G4S Cash Solutions (SA) Newcastle KwaZulu-Natal

+27 34 312 6076

G4S Cash Solutions (SA) Pietermaritzburg KwaZulu-Natal

+27 33 386 3388

G4S Cash Solutions (SA) Polokwane Limpopo

+27 15 297 3723

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G4S Cash Solutions (SA) Port Elizabeth Eastern Cape

+27 41 581 6400

G4S Cash Solutions (SA) Port Shepstone KwaZulu-Natal

+27 39 685 5450

G4S Cash Solutions (SA) Pretoria East Gauteng

+27 12 377 0520

G4S Cash Solutions (SA) Pretoria West Gauteng

+27 12 377 0520

G4S Cash Solutions (SA) Randburg Gauteng

+27 11 792 2215

G4S Cash Solutions (SA) Richards Bay KwaZulu-Natal

+27 35 751 1463

G4S Cash Solutions (SA) Rustenburg North West

+27 14 592 6240

G4S Cash Solutions (SA) Tzaneen Limpopo

+27 15 307 4249

G4S Cash Solutions (SA) Vanderbijlpark Gauteng

+27 16 931 2970

G4S Cash Solutions (SA) Welkom Free State

+27 57 353 3215

G4S Cash Solutions (SA) Witbank Mpumalanga

+27 13 656 5454

Shareholders

Shareholder Percentage

G4S Plc (UK) via G4S International Holdings Ltd 74.90

Zungu Investment Company (Pty) Ltd t/a Zico 5.00

Management

Name Position Email Appointed

Mr Michael John Donaldson Non-Executive Director [email protected] 2005-12-14

Mr Albert Erasmus Managing Director

2011-12-02

Mr Tsepiso Mare Tlakadira

Mofokeng Alternate Director [email protected] 2006-02-28

Ms Marilise Viljoen Financial Director

2011-11-25

Mr Sandile Donald Muziwenkosi

Zungu

Non-Executive

Chairman [email protected] 2005-09-08

History of Business

Fidelity Guards was originally established in 1957. In 1989, a restructuring took place and Fidelity

Guards Holdings (Pty) Ltd was established utilising a shelf company named Voluntary Investments

(Pty) Ltd and the name changed to Fidelity Cash Management Services (Pty) Ltd in May 1999. The

company has undergone numerous name changes and restructures. The most recent was in

January 2009, when the name changed from G4S Cash Services (SA) (Pty) Ltd to G4S Cash

Solutions (SA) (Pty) Ltd.

Nature of Business

G4S Cash Solutions (SA) (Pty) Ltd (G4S) is a part of worldwide security solutions group, which

specialises in outsourcing of business processes in sectors where security and safety risks are

considered a strategic threat. The company provides cash management services including

transportation and delivery of cash, banking and ATM front-end servicing and pension distribution.

Support services include insurance, investigations and research and development, among others.

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The client base spans major banks, foreign exchange suppliers, public services, petroleum

companies, entertainment, hospitality and gaming enterprises, major retailers, franchises and

many other commercial operations, on a daily basis.

Nr. of Employees 3 500

Banks Standard Bank of South Africa Ltd

Auditors KPMG Inc.

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G4S SECURE SOLUTIONS (SA) (PTY) LTD

Reg. Number: 2000/017702/07

VAT Number: 4180192488

BEE Rating: Level 3 Empowerdex Updated: 2012-02-02

Postal Address: Physical Address:

PO Box 13330, Hatfield

0028

2nd Floor, G4S Gables Building

1209 Schoeman Street, Hatfield, 0083

Tel: +27 12 431 3700 Fax.: +27 12 342 2354

Email: [email protected] Website: www.g4s.co.za

Shareholders

Shareholder Percentage

G4S Plc (UK) via G4S International Holdings Ltd 74.00

G4S Staff Share Trust 13.00

Zungu Investment Company (Pty) Ltd t/a Zico 13.00

Management

Name Position Email Appointed

Mrs Janet Bredell Sales & Marketing Director

2008-01-11

Mr Costas Diavastos Human Resources Director

2007-01-05

Ms Tabea Dominica Magodielo Non-Executive Director

2010-05-12

Ms Rita Maud Motanyane Non-Executive Chairman

2007-01-02

Mr Lucky Sixolo Non-Executive Director

2010-03-29

Mr Rouan Venter Managing Director

2009-11-16

Ms Marilise Viljoen Financial Director

2011-09-21

Mr Sandile Donald Muziwenkosi

Zungu Non-Executive Director

2010-12-14

History of Business

G4S Security Services (SA) (Pty) Ltd was established utilising a shelf entity named, Krakon

Investments (Pty) Ltd for registration purposes in August 2000. The name changed to Gray

Securicor (Pty) Ltd in April 2001. In May 2003, the name changed from Securicor Gray (South

Africa) (Pty) Ltd to Securicor (South Africa) (Pty) Ltd. In June 2005, the company underwent a

merger with Group 4 Falck (Pty) Ltd merging the assets and operations of Group 4 Falck (Pty) Ltd,

G4 Security Services (Africa) (Pty) Ltd and Securicor (SA) (Pty) Ltd under the legal entity of

Securicor to form G4S Security Services (SA) (Pty) Ltd. In December 2009, the company

underwent a further name change to G4S Secure Solutions (SA) (Pty) Ltd.

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Nature of Business

G4S Secure Solutions (SA) (Pty) Ltd is involved in the provision of integrated security solutions to a

broad spectrum of industries, specialising in the mining, aviation, diplomatic, justice (prisons),

distribution, ports & harbours, and petro-chemical industries. The company also provides

investigation services, close protection & journey management services. Operations are carried out

in three divisions across all nine provinces in South Africa, namely:

♦ Security Services includes security officers and aviation security

♦ Security Systems encompasses all technology i.e. access control, cctv

♦ Cash and Valuables Transportation

Nr. of Employees 13 130

Empowerment

Stake 22.64%

Secretary Ms Brigitte Hackl

Banks Nedbank Ltd (a division of the Nedbank Group Ltd)

Auditors KPMG Inc

Attorneys Van Huyssteens Commercial Attorneys; Deneys Reitz Inc

Turnover [2010] R820.0m (Est) (As per company)

Brandnames

G4S

Subsidiaries, Associates & Investments

Name Percentage

Federal Gaming (Cape) (Pty) Ltd 50.00

G4S Aviation Security (SA) (Pty) Ltd 100.00

G4S Integrity Assessment (Pty) Ltd t/a Integra 100.00

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GUARDIAN FORENSIC SERVICES CC

Reg. Number: 2008/063503/23 Updated: 2012-04-05

Postal Address: Physical Address:

PO Box 22194, Helderkruin

1733

Unit 11, Ridgegate Shopping Centre

106 Wilde Amandel Avenue, Roodekrans, 1724

Tel: +27 83 453 1895 Fax.: +27 86 531 6000

Email: [email protected] Website: www.guardianforensicservices.com

Shareholders

Shareholder Percentage

Marthinus Albertus Koen 100.00

Management

Name Position Email Appointed

Mr Marthinus Albertus Koen Director

2008-03-25

History of Business

Guardian Forensic Services cc was registered on 25 March 2008.

Nature of Business

Guardian Forensic Services cc provides a balanced and multi-disciplinary approach to the

prevention, detection, investigating and resolution of financial crime and associated risks by a team

of expert forensic investigators, forensic accountants and legal advisors.

Nr. of Employees 5

Auditors Wilhelmia Magdalena Mulder

Attorneys Van der Berg & Associates

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IDECO GROUP LTD

Reg. Number: 2001/023463/06

JSE Code: IDE Updated: 2012-03-31

Postal Address: Physical Address:

Block B, Ground floor, Centurion Office Park

46 Embankment road corner Hendrik Verwoerd

0157

Tel: +27 86 104 3326 Fax.: +27 11 745 5615

Email: [email protected] Website: www.ideco.co.za

Shareholders

Shareholder Percentage

ZNG Technologies AG 42.93

Muvoni Investment Holdings (Pty) Limited 41.42

Management

Name Position Email Appointed

Mr HB Aucamp Financial Director

Mr MJ Kekana Independent Non-Executive Director

Mr Vhonani Mufamadi Executive chairman

Ms AX Sisulu-Dunstan Independent Non Executive Director

Mr JA Vorster Independent Non Executive Director

2011-10-28

Nature of Business

Ideco Group Ltd is an investment holding company with investments in wholly–owned subsidiaries

providing fingerprint solutions and logical access control, large scale Automated Fingerprint

Identification Systems (“AFIS”) solutions, fingerprint scanning activities, the provision of an

automated illicit activity checking service to employers. They also provide background screening

services to employers of prospective employees.

There are three business segments, viz:

♦ Biometric readers and solutions

♦ Secure credentialing services: carried out by two companies: Ideco AFISwitch and Managed

Integrity Evaluation (Pty) Ltd (MIE)

♦ Biometric projects

Banks ABSA Bank Ltd; Standard Bank of South Africa Ltd

Auditors BDO South Africa Incorporated

Turnover [2011] R138.8m (AR2011)

Estimated Profit -R0.9m (Net Loss)

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Prevailing Conditions in the Industry

The company experienced the following conditions in its different segments:

♦ Biometric readers and solutions: Operating profit increased by R2.9m between 2010 and

2011.

♦ Secure credentialing services: With effect from 1 July 2011, the SAPS terminated criminal

record checks based on names and identity numbers and now only performs criminal record

checks based on fingerprints which caused more checks to be done through AFISwitch. The

revenue of AFISwitch for the year ended 31 August 2011 increased by 42.8% compared to

the year ended 31 August 2010.

♦ Biometric projects: The biometric project segment reported a loss in EBITDA of R2.4m for

the year ended 31 August 2011 compared to a loss of R1.2m for the previous financial year.

Overall the company experienced growth between 2010 and 2011:

♦ Revenue increased by 34%

♦ Earnings before interest, tax, depreciation and amortisation of continued operations

increased by 92% from R7.1m to R13.6m

♦ Loss after tax was reduced from R6.9m to R0.96m

Subsidiaries, Associates & Investments

Name Percentage

Ideco AFISwitch 100.00

Ideco Biometric Security Solutions 100.00

Ideco Biometrix 100.00

Ideco Identity Solutions 100.00

Ideco Technologies 100.00

General Comment

Ideco has taken the strategic decision to sell Ideco Biometric Security Solutions (Pty) Ltd (“IBSS”),

the major contributor to revenue and profit for the biometric readers and solutions segment, in

order to refocus its resources on providing transaction-based verification services.

With effect from 12 January 2011, the Group acquired the 75% of the issued share capital of

Biometric Medical Solutions (Pty) Ltd not already held by Ideco.

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IMVULA QUALITY PROTECTION (PTY) LTD

Trading As: iMvula Quality Protection (Africa)

Reg. Number: 1996/011543/07

VAT Number: 4060209402

BEE Rating: Level 2 Emex Updated: 2012-02-02

Postal Address: Physical Address:

Postnet Suite 358, Private Bag X29

Gallo Manor, 2052

iMvula Place, 5 Wolseley Street, Woodmead East

Sandton, 2191

Tel: +27 11 202 7700 Fax.: +27 11 202 7751

Email: [email protected] Website: www.imvula.net

Branches

Branch Area Head Tel

iMvula Quality Protection Bloemfontein Free State

+27 51 430 5329

iMvula Quality Protection Cape Town Western Cape

+27 21 949 9311

iMvula Quality Protection Durban KwaZulu-Natal

+27 31 700 9190

iMvula Quality Protection Operations Centre Gauteng

+27 11 579 4360

iMvula Quality Protection Polokwane Limpopo

+27 15 291 4631

iMvula Quality Protection Port Elizabeth Eastern Cape

+27 41 586 3990

iMvula Quality Protection Richards Bay KwaZulu-Natal

+27 35 580 1041

iMvula Quality Protection Vredenburg West Coast

+27 22 715 1715

Shareholders

Shareholder Percentage

Imvula Empowerment Holdings (Pty) Ltd 100.00

Management

Name Position Email Appointed

Mr Dawood Alexander Director

2007-01-08

Ms Angela Avis Chief Executive Officer

2006-03-10

Mr Peter Birch Director

1996-04-11

Dr Morgan Chetty Director

2007-11-09

Mr Charlton Dube Non-Executive Director

2011-12-12

Mr Paul Kruger Director

2008-11-12

Mr Vincent (Joe) Matthews Chairman

Mr Andries Welthagen Financial Manager [email protected]

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History of Business

Imvula Quality Protection (Pty) Ltd was established in August 1996. The company underwent a

name change from Newcap One (Pty) Ltd to Quality Protection Security (Pty) Ltd in August 2006. In

September 2006, the company underwent a further name change to iMvula Quality Protection (Pty)

Ltd.

Nature of Business

iMvula Quality Protection (Pty) Ltd is as a security company, offering the following services:

♦ Guarding services

♦ Armed response

♦ Management, supervision and guard monitoring

♦ Safety and security reviews

♦ Development of emergency and contingency plans

♦ Screening of new and existing personnel

Nr. of Employees 3 500

Empowerment

Stake 72%

Banks First National Bank (a division of FirstRand Bank Ltd); Mercantile Bank Ltd;

Standard Bank of South Africa Ltd

Auditors West-Evans Inc.

Brandnames

iMvula Quality Protection

Trademarks

iMvula Quality Protection

Distribution Rights

iMvula Quality Protection

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PROTEA COIN GROUP (ASSETS IN TRANSIT & ARMED REACTION)

(PTY) LTD

Reg. Number: 1999/003646/07

VAT Number: 4650186424

BEE Rating: Level 3 Premier Verification Updated: 2012-02-13

Postal Address: Physical Address:

PO Box 29305, Sunnyside

132

Coin Security House, 222 Witch-Hazel Avenue

Highveld Techno Park, Centurion, 0157

Tel: +27 12 665 8000 Fax.: +27 12 665 5503

Email: [email protected] Website: www.proteacoin.co.za

Shareholders

Shareholder Percentage

Mvelaserve Ltd (Held by Mvelaphanda Holdings (Pty) Ltd - 18.49%; Coronation

Fund Managers - 9.29%; Octavian Funds - 6.01%; Mvelaphanda Group Ltd -

5.96%; Allan Gray - 5.8%; Tantalum Capital - 5.47%; Government Employees

Pension Fund - 4.64%)

100.00

Management

Name Position Email Appointed

Ms Ida Bezuidenhout Financial Manager bezuidenhouti@

proteacoin.co.za

Mr Barend Simon

de Waal Group Chief Operating Officer

2009-05-29

Ms Emile du Plessis

Grobler Financial Director

2009-04-01

Ms Nkosiphendule

Kolisile Non-Executive Chairman

2009-05-18

Mr David Motshwane

Moisi Non-Executive Director

2010-04-01

Ms Fiorella Mugari Non-Executive Director

2010-07-01

Ms Hannelie Nel Human Resources Manager

Mr Petrus Albertus

van Niekerk Group Chief Executive Officer

2007-01-07

Mr Zukile Vokwana Group Procurement Director

2007-04-09

History of Business

Coin Security Group (Pty) Ltd was established in 1979. In 1999, Rebhold Ltd purchased the assets

and operations of Coin Security Group (Pty) Ltd and transferred it into a shelf entity named Lexshell

300 Investment Holdings (Pty) Ltd. Coin Security Group (Pty) Ltd and Lexshell 300 Investments

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Holdings (Pty) Ltd underwent a simultaneous name change in May 2010. The holding company,

Rebhold Ltd underwent a name change to Rebserve Ltd in December 2001. In December 2004,

Rebserve Ltd and Investment Holdings (Pty) Ltd merged. The Rebserve Ltd entity was used as a

vehicle for this merger and the name was subsequently changed to Mvelaphanda Group Ltd. The

company underwent a name change from Coin Security Group (Pty) Ltd to Protea Coin Group

(Assets In Transit and Armed Reaction) (Pty) Ltd in November 2007.

Nature of Business

The Protea Coin Group operates as a security company providing security services to the corporate

and private sector. The company operates through 5 divisions, namely:

♦ Assets-in-transit includes bulk cash transportation, daily banking and deposit services, ATM

management (replenishment, reconciliation and maintenance), and valuable assets

transportation.

♦ Armed reaction includes installation, 24 hour control centre monitoring and maintenance of

a full range of security solutions.

♦ The Technical division is involved in the design, installation and monitoring of high

technology surveillance security solutions.

♦ The Physical division provides manned guarding services, specialised reaction unit, canine

units, an equestrian unit, and a cargo risk management solution.

♦ The Mining division offers specialised security solutions to the mining sector including the

security around prime product, access control to mining facilities, bullion/product

transportation, surveillance and crime prevention and risk management consulting.

Nr. of Employees 16 000

Empowerment

Stake 54.39%

Secretary Rebhold Management Services

Banks First National Bank (a division of FirstRand Bank Ltd)

Auditors PKF (Jhb) Inc

Attorneys Webber Wentzel Attorneys

Brokers Glenrand MIB

Corporate Governance in Relation to AIDS Policy

Protea Coin has a wellness programme in place and employees are encouraged to test

confidentially for TB and HIV/AIDS. The company also has a formal HIV/AIDS policy which is

committed to those infected or affected by HIV/AIDS and provides voluntary counselling and

testing to all employees.

Brandnames

Coin, Protea Coin

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Trademarks

Coin, Protea Coin

Distribution Rights

Coin, Protea Coin

Subsidiaries, Associates & Investments

Name Percentage

Al-Jaber Coin Security Group LLC 49.00

Cameos Solutions (Pty) Ltd 100.00

Coin Aviation Security (Pty) Ltd 100.00

Coin Cameos (Pty) Ltd 100.00

Coin International (Nigeria) 100.00

Coin Risk Management (Pty) Ltd 100.00

Protea Coin Cargo Protection (Pty) Ltd 100.00

Smart Solution Holdings (Pty) Ltd t/a Smart Holdings 100.00

General Comment

Al-Jaber Coin Security Group LLC (Al-Jaber Coin) was formed in March 2004 to address security

needs in the United Arab Emirates (UAE) and the Middle East. Al-Jaber Coin has been granted one

of six licences to exclusively operate in the Abu Dhabi Emirate.

The residential Armed Response operation (except in enclosed estates) was disposed of in 2010.

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PROTEA COIN GROUP (SECURITY SERVICES) (PTY) LTD

Reg. Number: 1991/003768/07

VAT Number: 4190122384

BEE Rating: Level 3 Premier Verification Updated: 2012-01-31

Postal Address: Physical Address:

PO Box 68276, Highveld Park

0169

6 Eddington Crescent , Techno Park

Pretoria, 0002

Tel: +27 12 665 0620 Fax.: +27 12 665 0042

Email: [email protected] Website: www.proteacoin.co.za

Shareholders

Shareholder Percentage

Mvelaserve Ltd 100.00

Management

Name Position Email Appointed

Mr Barend Simon de Waal Chief Operating Officer

2005-08-12

Ms Emile du Plessis Grobler Chief Financial Officer

2000-06-01

Ms Nkosiphendule Kolisile Chairman

2009-05-19

Mr David Motshwane Moisi Director

2010-05-01

Mr Petrus Albertus van Niekerk Chief Executive Officer

1995-03-01

Mr Zukile Vokwana Director

2004-12-06

History of Business

Coin Security Group was originally established in Pretoria in July 1979. Protea Coin Group (Security

Services) (Pty) Ltd was registered on 16 July 1991.

Nature of Business

Protea Coin Group is a security service provider to the South African and International markets.

The company offers a variety of services namely:

♦ Monitoring and Protection Services;

♦ Assets-in-Transit

♦ Physical Security

♦ Technical Security Solutions

♦ Investigations & Information Gathering

♦ Close Protection (VIP)

♦ International Security & Risk Management

♦ Mining Security

♦ Aviation Security

♦ Tracking & Fleet Monitoring

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Specialised guarding services are offered to the following business sectors:

♦ Industrial Security

♦ Healthcare

♦ Retail

♦ Hospitality and Gaming

♦ Commercial Property

♦ Educational Institutions

♦ Banking

♦ Corporate and Government Sectors

♦ Residential and Golf Estates

Nr. of Employees 18 000

Empowerment

Stake 54.39%

Banks Nedbank Ltd (a division of the Nedbank Group Ltd)

Auditors PKF (Pta) Inc

Attorneys Webber Wentzel

Brokers Glenrand M.I.B

Turnover [2011] R2,000.0m (Est) (As per company)

Corporate Governance in Relation to AIDS Policy

Protea Coin has a wellness programme in place and employees are encouraged to test

confidentially for TB and HIV/AIDS. The company also has a formal HIV/AIDS policy which is

committed to those infected or affected by HIV/AIDS and provides voluntary counselling and

testing to all employees.

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SBV SERVICES (PTY) LTD

Reg. Number: 1986/003865/07

VAT Number: 4640120020

BEE Rating: Level 4 BEE Rating Solutions Updated: 2012-02-13

Postal Address: Physical Address:

PN Suite 48, Private Bag X1

Melrose Arch, 2076

SBV House, Cnr 8th Avenue & 11th Street

Houghton, Johannesburg, 2090

Tel: +27 11 283 2000 Fax.: +27 11 283 2201

Email: [email protected] Website: www.sbv.co.za

Shareholders

Shareholder Percentage

ABSA Group Ltd (Held by Barclays Bank Plc - 55.5%; Public Investment

Corporation - 9.3%; Batho Bonke Capital (Pty) Ltd - 3.9%) 25.00

FirstRand Ltd (Held by RMB Holdings Ltd - 33.89%; Public Investment Corporation

- 12.03%; FirstRand Empowerment Trust & Related Parties - 8.13%; Financial

Securities Ltd (Remgro) - 3.9%)

25.00

Nedbank Group Ltd (Held by Old Mutual Plc via Old Mutual (South Africa) Ltd -

51.86%; Public Investment Corporation Ltd - 8.42%) 25.00

Standard Bank Group Ltd (Held by Industrial & Commercial Bank of China -

20.1%; Public Investment Corporation - 13.3%; Tutuwa participants - 5.6%) 25.00

Management

Name Position Email Appointed

Mr Mark Ian Barrett Non-Executive Director

2005-12-20

Mr Mbusi Dlamini Executive Head: Cash Operations

Mr Jan Adriaan du Plessis Non-Executive Director

2008-07-21

Mr Grant Craig

Dunnington Group Chief Executive Officer

2001-09-25

Ms Ghita Erling Non-Executive Director

2008-09-22

Mr Larry McCarthy Non-Executive Director

2010-08-02

Mr Andrew James Dewijs

Meerburg Financial Director

2005-10-05

Mr Gareth Mitchell Financial Analyst [email protected]

Mr Christopher (Chris)

Ras General Manager: Risk & Compliance

Ms Ravina Reddy General Manager: Human Resources &

Communication

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Mr Dirk Johannes

Reyneke Non-Executive Chairman

2006-12-31

Mr Gideon Johannes

Serfontein Non-Executive Director

2007-08-23

Mr Michael (Mike) Shipton Executive Head: Cash in Transit

Mr Jason Taylor Non-Executive Director

2001-11-28

Mr Stephanus Albertus

van Jaarsveld Non-Executive Director

1998-09-29

Ms Marilise van Wyk Financial Controller

History of Business

SBV Services (Pty) Ltd was registered on 26 September 1986.

Nature of Business

SBV Services (Pty) Ltd is a cash risk management company. Services include cash and valuables

transportation, coin and cash management, fully outsourced cash centre management, ATM

replenishment and management and risk management.

Nr. of Employees 3 997

Empowerment

Stake 18.86%

Banks Nedbank Ltd (a division of the Nedbank Group Ltd); Standard Bank of South

Africa Ltd

Auditors KPMG Inc

Brandnames

SBV

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SERVEST SECURITY (DIVISION OF SERVEST (PTY) LTD)

Reg. Number: 1997/006391/07

VAT Number: 4930175734

BEE Rating: Level 3 Premier Verification Updated: 2012-02-02

Postal Address: Physical Address:

PO Box 2144, Bedfordview

2008

23 Thora Crescent, Wynberg

2090

Tel: +27 11 444 0102 Fax.: +27 11 444 5916

Email: [email protected] Website: www.servest.co.za

Shareholders

Shareholder Percentage

Servest Holdings Ltd (Held by Management - 50.9%; Safika Investments (Pty) Ltd

- 26%; RMB Corvest (Pty) Ltd - 14.3%; Servest Staff Incentive Trust - 8.8%) 100.00

Management

Name Position Email Appointed

Mr Kevin Michael Derrick Managing Director

2007-05-03

Mr Kenton James Fine Director

1997-01-12

Mr Redewaan Isaacs Non-Executive Director

2011-06-30

Mr Andrew Robert Maggs Executive Director

2001-01-10

Mr Kgasago (Simon)

Manaka Non-Executive Director

2007-09-28

Ms Hlengiwe Philile

Maphumulo Non-Executive Director

2011-06-30

Ms Ntameni Mulandzi Non-Executive Director

2011-06-30

Mr Raymond Smart Divisional Financial Director raymonds@

servestsecurity.co.za

Mr Dennis Christopher

Zietsman Group Chief Executive Officer [email protected] 1997-01-12

History of Business

Gremick Security and Technology cc was registered in 1993. In 1997, the operations were acquired

and divisionalised under Servest (Pty) Ltd. In November 2010, the division was rebranded, Servest

Security.

Nature of Business

Servest Security provides security services to clients within the industrial, commercial and retail

sectors. Services include:

♦ Guarding services

♦ Electronic security alarms - custom design, installation and maintenance of equipment.

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♦ VIP protection services

♦ Parking management

♦ CCTV

♦ Access control Systems

♦ Fire Detection & Safety systems

Nr. of Employees 5 500

Empowerment

Stake 30.77%

Banks ABSA Bank Ltd; Standard Bank of South Africa Ltd

Auditors Deloitte & Touche

Brandnames

Gremick

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STALLION SECURITY (PTY) LTD

Reg. Number: 1978/002006/07

VAT Number: 4930120995

BEE Rating: Not Finalised Empowerdex Updated: 2012-01-19

Postal Address: Physical Address:

PO Box 16638, Doornfontein

2028

35 Siemert Street, Doornfontein

2098

Tel: +27 11 533 8888 Fax.: +27 11 533 8889

Email: [email protected] Website: www.stallion.co.za

Shareholders

Shareholder Percentage

Stallion Holdings (Pty) Ltd (Held by Clive Zulberg - 75%; Amabubesi Security

Services (Pty) Ltd - 25%) 100.00

Management

Name Position Email Appointed

Ms Rose Dias Group Company Secretary [email protected]

Mr Tembile Sangoni Business Development Director

2003-01-10

Mr Bradley Lawrence

Soekoe Managing Director

1998-01-11

Mr Clive Zulberg Chief Executive Officer

1991-08-08

History of Business

Jandec Investments (Pty) Ltd was established in June 1978 and underwent a simultaneous name

change to Natpump (Pty) Ltd. On 30 April 1990, the company underwent a further name change to

Stallion Security (Pty) Ltd.

Nature of Business

Stallion Security operates as a security company on a contract basis for the commercial and

industrial markets. The company specialises in the fields of:

♦ Guarding

♦ Electronics security

♦ Investigations

♦ Event management

♦ Armed response

♦ Property guarding

Nr. of Employees 7 500

Secretary SGF Secretaries

Banks First National Bank (a division of FirstRand Bank Ltd); Standard Bank of

South Africa Ltd

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Auditors Tuffias Sandberg KSi

Brandnames

Stallion Security

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TOP SECURITY (PTY) LTD

Reg. Number: 2000/031846/07

VAT Number: 4630195594

BEE Rating: Not Rated Updated: 2012-01-23

Postal Address: Physical Address:

PO Box 52898, Saxonwold

2132

110 Lillian Avenue, Parkmore

Rosebank, 2196

Tel: +27 11 884 6660 Fax.: +27 11 884 7025

Email: [email protected] Website: www.topsecurity.co.za

Branches

Branch Area Head Tel

Top Security Bedfordview Gauteng Mr Quinn Maree +27 11 450 3309

Top Security Edenvale Gauteng Mr Thys De Beer +27 11 453 4944

Top Security Jukskei Park Gauteng Mr Thinus Thiebaut +27 11 462 1929

Top Security Randburg Gauteng Mr Charles Zeelie +27 11 782 7673

Shareholders

Shareholder Percentage

Mr E O´Rafferty 100.00

Management

Name Position Email Appointed

Ms Tertia Carlse Administration Manager

M Vernon Raymond Carr Chief Operating Officer

2001-07-09

Mr Kenneth Carr Chief Operating Officer

Ms Susan Coetzee Finance Department Manager

Mr Anthony de Aguiar Director

Mr Alfie Gouws Installation Manager

Mr George Koster Group Technical Manager

Ms Fransina Landsberg Customer Relations Officer

Ms Louise Louw Financial Manager louisel@

topecurity.co.za

Mr Olaf Petersen Control Room Manager

Mr Robert Smit Chief Financial Officer rsmit@

topsecurity.co.za

Ms Saomi Vermaak Debtors Manager

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History of Business

The company was established in September 2001, utilising a shelf company named Quickstep 288

(Pty) Ltd for registration purposes and the name changed to Top Security (Pty) Ltd on 11 October

2001.

Nature of Business

Top Security (Pty) Ltd supplies, installs, repairs and services security systems. The company also

offers a monitoring system, armed reaction and guarding services for the domestic and commercial

markets.

Nr. of Employees 900

Banks Nedbank Ltd (a division of the Nedbank Group Ltd)

Auditors Lotter & Company

Brandnames

ID-a-Kid, TOP GUN, Top Security

Trademarks

Top Security

Distribution Rights

Top Security

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VUSELA RISK SERVICES GROUP (PTY) LTD

Reg. Number: 2003/028765/07

VAT Number: 4480234063

BEE Rating: Not Finalised Updated: 2012-04-25

Postal Address: Physical Address:

PO Box 68790, Highveld

0169

Block 2, Unit 10, Falcon Crest Office Park

142 Suid Street, Centurion, 0157

Tel: +27 86 188 7352 Fax.: +27 12 667 4951

Email: [email protected] Website: www.vusela.com

Branches

Branch Area Head Tel

Vusela Cape Town Western Cape

Vusela Durban KwaZulu-Natal

Vusela Port Elizabeth Eastern Cape

Vusela Roodepoort Gauteng

Shareholders

Shareholder Percentage

Directors 100.00

Management

Name Position Email Appointed

Mr Dirk Johannes du Plooy Chief Operating Officer [email protected] 2007-09-04

Mr Pieter Wynand Grove Non-Executive Director

2010-04-19

Mr Albertus Philippus Jacobus (Jaco)

van Schalkwyk Chief Executive Officer

2006-12-07

History of Business

The company was established in November 2003 when a shelf entity named, Mystic River

Investments 21 (Pty) Ltd, was utilised for registration purposes. The name was changed to Vusela

Risk Services Group (Pty) Ltd in January 2007.

Nature of Business

Vusela Risk Services Group (Pty) Ltd is a security, protection and emergency management

company and supplies integrated risk managed services to corporate clients and businesses in

South Africa.

Nr. of Employees 250

Banks ABSA Bank Ltd

Auditors Calculus Chartered Accountants (SA)

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td -

13

.38%

Th

ree

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mon

ds T

rad

ing 5

64 (

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) L

td -

12.1

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Ma

salin

i C

ap

ital (P

ty)

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td

10

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re

tail

an

d insta

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f ve

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le

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evic

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nd

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es:

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rac, G

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ix,

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MX

2,

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3,

Pin

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X-D

rive

AL

TE

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TS

TA

R (

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r: R

936

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s

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ch)

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d t

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dem

ark

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am

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:A

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ets

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ng,

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r S

leuth

, C

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, V

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orp

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n L

td -

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%G

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lc -

2.9

%

75

%

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%

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ntity

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ty)

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–5%

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td

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Loc,

Matr

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2,

MX

3,

Pin

Po

int,

Safe

Drive,

X-D

rive

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COMPANY PROFILES

ALTECH NETSTAR (PTY) LTD

Reg. Number: 1992/001223/07

VAT Number: 4760134629

BEE Rating: Level 3 NERA Updated: 2012-01-12

Postal Address: Physical Address:

PO Box 2435, Halfway House

1685

Block 0, Central Park Offices, 16th Road, Randjes

Park Ext 5, Midrand, 1682

Tel: +27 11 207 5000 Fax.: +27 11 315 6190

Email:

Website: www.netstar.co.za

Branches

Branch Area Head Tel

Altech Netstar Bloemfontein Free State Ms Bernadette Barnard +27 51 400 0100

Altech Netstar Cape Town Western Cape Mr Michael (Mike) Dumont +27 21 551 7999

Altech Netstar Durban KwaZulu-Natal Mr John Taylor +27 31 569 9500

Altech Netstar East London Eastern Cape Ms Samantha Rheeder +27 43 721 1340

Altech Netstar George Western Cape Ms Engela Marais +27 44 874 7019

Altech Netstar Nelspruit Mpumalanga Ms Emmerentia Lottering +27 13 753 3792

Altech Netstar Newcastle KwaZulu-Natal Ms Maureen Maree +27 34 312 2128

Altech Netstar Polokwane Limpopo Mr Jeremy Burnard +27 15 292 8000

Altech Netstar Port Elizabeth Eastern Cape Mr Cuan Smith +27 41 363 5235

Altech Netstar Rustenburg North West Mr Francois Naude +27 78 714 1376

Altech Netstar Witbank Mpumalanga Mr Theo Claassen +27 13 690 1997

Shareholders

Shareholder Percentage

Allied Technologies Ltd (Held by Allied Electronics Corporation Ltd - 56.5%;

Government Employees Pension Fund - 8.92%; Altech One Nominees (Pty) Ltd -

8.12%; Old Mutual Plc - 2.9%)

75.00

Thebe Investment Corporation (Pty) Ltd 20.00

Identity Capital Partners (Pty) Ltd 5.00

Management

Name Position Email Appointed

Dr Johannes Elias William

Carstens Non-Executive Chairman

1997-09-15

Ms Mariam Cassim Non-Executive Director

2011-09-12

Mr Jeffrey Alan Hedberg Non-Executive Director

2011-07-01

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Mr Vusumuzi Phillip (Vusi)

Khanyile Non-Executive Director

2011-07-01

Mr Harry Peter Louw Managing Director [email protected] 2003-11-13

Mr Evan Matthee Chief Financial Officer [email protected]

Mr Rapulane Samuel

Mogototoane Executive Director

2011-07-01

Ms Sonja Emilia Ncumisa

Sebotsa Non-Executive Director

2011-07-01

Mr Craig Gordon Venter Group Chief Executive Officer

1995-02-10

History of Business

Altech Netstar (Pty) Ltd was originally registered as Advanced Transportation Information Systems

(Pty) Ltd t/a Netstar in March 1992. The company underwent a name change to Altech

Transportation Information Systems (Pty) Ltd during 1992 and then to Altech Transport

Information Systems (Pty) Ltd on 21 July 1995. In October 1995, the company underwent a further

name change to Netstar (Pty) Ltd and in January 2007, the company changed the name to Altech

Netstar (Pty) Ltd. In 1999, the operations and assets of a company named Starserve (Pty) Ltd was

incorporated into the company.

Nature of Business

Altech Netstar (Pty) Ltd is involved in stolen vehicle tracking and recovery as well as fleet

management. The company’s ground and air recovery teams respond to approximately 600

incidents per month throughout southern Africa. The product range includes asset and personal

tracking products and services. The company’s recovery infrastructure includes a 24-hour control

centre, a network of ground recovery teams, helicopters and aeroplanes, 115 fitment centres and it

currently manages 550 000 billable vehicle subscribers.

Altech Netstar interacts with customers at its service centres, through the call centres, on

HelloPeter.com and through the customer service portal at [email protected].

Nr. of Employees 730

Empowerment

Stake 43.33%

Secretary Altech Management Services (Pty) Ltd

Banks ABSA Bank Ltd

Auditors PKF (Jhb) Inc

Turnover [2011] R936.0m (Est) (As per company)

Corporate Governance in Relation to AIDS Policy

The Group has an HIV/AIDS policy in place that focuses on educating employees, raising awareness

and encouraging people to know their status. Altech runs various training workshops, industrial

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theatre and guest-speaker programmes to raise awareness. HIV/AIDS-related educational material

is also distributed through internal publications like the Altech Talk magazine and various electronic

media. There is a workplace HIV/AIDS programme and employees can access HIV/AIDS counselling

through this and through the Group’s medical aid scheme.

Influencing Factors

Innovation remains the most critical factor in developing new products and reducing costs for the

company. The bulk of Altech Netstar’s sales are driven by the insurance industry and motor

dealers, and much of the company’s innovation and product development therefore responds to the

requirements of these two market segments.

Brandnames

Advanced Phone-In, Altech Netstar, Auto-Dialer, Boomerang, Cyber Sleuth, Cyber-Sleuth Supreme,

Early Warning System, Guardian, Netstar, Sleuth, Vigil Early Warning, Vigil Sleuth, Vigil Supreme

Trademarks

Boomerang, Early Warning System, Guardian

Distribution Rights

Boomerang, Early Warning System, Guardian

Subsidiaries, Associates & Investments

Name Percentage

Altech Netstar Traffic (Pty) Ltd 50.00

General Comment

The company operates in Zambia, Namibia, Botswana, Swaziland and Malaysia and significant

opportunities for expansion into Brazil have been identified.

Effective 1 December 2010, Altech Netstar (Pty) Ltd implemented an empowerment (“BEE”)

transaction whereby Thebe Investment Corporation (Pty) Ltd and Identity Capital Partners (Pty) Ltd

acquired a combined 25% plus one share equity shareholding in the Netstar Group.

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C-TRACK (SA) (PTY) LTD

Reg. Number: 1997/016952/07

VAT Number: 4680191345 Updated: 2012-04-29

Postal Address: Physical Address:

PO Box 68270 , Highveld Park

0169

Regency Office Park, 9 Regency Drive

Route 21 Corporate Park, Irene, 0062

Tel: +27 12 450 2222 Fax.: +27 12 450 2323

Email: [email protected] Website: www.ctrack.co.za

Shareholders

Shareholder Percentage

Digicore Holdings Ltd 100.00

Management

Name Position Email Appointed

N Gasa

2006-04-11

H Jordt

2006-04-11

BS Khuzwayo

2006-07-25

Mr Wessel Lourens National Operations Manager

Mr Dawie Nel Financial & Admin Manager

Donald Nieuwoudt Financial Director

2005-03-31

Mr Sango Siviwe Ntsaluba

2006-04-11

Mr Bruce Richards Managing Director

MD Rousseau

2000-06-01

NH Vlok

1997-10-08

History of Business

C-Track (SA)(Pty) Ltd began operating in 1997 utilising a shelf entity named Merchan Properties

(Pty) Ltd for registration purposes and changing the name to Digicore Distribution (Pty) Ltd on 23

October 1997. On 24 July 1998, Digicore Distribution (Pty) Ltd changed its name to Veprotech (Pty)

Ltd which underwent a name change on 29 June 2000 to Digicore Fleet Management (Pty) Ltd. At a

later date, the operations of Digicore Cellular (Pty) Ltd which had been in operation since August

1999 and is now dormant, were taken over and incorporated into Digicore Fleet Management (Pty)

Ltd. In October 2006, the name was changed to C-Track (S A) (Pty) Ltd.

Nature of Business

C-Track operates countrywide and is involved in the supply and installation of special vehicle

instrumentation such as Tac-O-Graphs, computers and C-track vehicle tracking systems, servicing

mainly trucking companies. The Ctrack range of products use GPS/GSM (GPRS) & RF location

methods.

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Nr. of Employees 500

Banks ABSA Bank Ltd

Auditors PKF (Gauteng) Inc

Attorneys Edelstein Bosman Inc

Turnover [2011] R245.7m (Est) (As per company)

Anticipated

Turnover R285m

Estimated Profit R55m

Target Market

Individual consumers, logistics companies, vehicle dealerships

Brandnames

CTrack Insure, CTrack Secure

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MIX TELEMATICS AFRICA (PTY) LTD

Trading As: Matrix Vehicle Tracking

Reg. Number: 2004/019797/07

VAT Number: 4610216287

BEE Rating: Level 8 BEE Matrix Updated: 2012-02-10

Postal Address: Physical Address:

PO Box 12326, Vorna Valley

1686

Matrix Corner, Howick Close

Waterfall Park, Midrand,1685

Tel: +27 11 654 8000 Fax.: +27 11 654 8125

Email: [email protected] Website: www.mixtelematics.co.za

Shareholders

Shareholder Percentage

Mix Telematics Ltd (Held by GAF Family Trust - 13.74%; Imperial Corporate

Services (Pty) Ltd - 13.38%; Three Diamonds Trading 564 (Pty) Ltd - 12.18%;

Masalini Capital (Pty) Ltd - 11.02%)

100.00

Management

Name Position Email Appointed

Ms Riëtte Botha Managing Director

2004-12-15

Prof Patrick Neil

Fitzgerald Non-Executive Director

2008-01-06

Mr Stefan (Joss) Brian

Joselowitz Chief Executive Officer

2005-01-01

Ms Kerry Pursey Financial Manager kerry.pursey@

mixtelematics.co.za

Ms Megan Loanne

Pydigadu Group Financial Director

2010-08-01

History of Business

Telimatrix (Pty) Ltd was established in 1996 as Matrix Vehicle Tracking (Pty) Ltd. In January 2005,

the operations were transferred into a dormant entity named Quarrymane Investments (Pty) Ltd

and operations commenced. On 14 January 2005, the company underwent a name change to

Matrix Vehicle Tracking (Pty) Ltd. In March 2008, the company underwent a further name change

to Mix Telematics Africa (Pty) Ltd.

Nature of Business

Mix Telematics Africa is involved in the retail and installation of vehicle tracking devices under the

Matrix Vehicle Tracking brand name. The company also provides solutions for vehicle tracking, fleet

management, driver safety and compliance. Tracking devices are installed through approved

fitment centres nationwide.

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Nr. of Employees 467

Empowerment

Stake 16.67%

Secretary Probity Business Services (Pty) Ltd

Banks First National Bank (a division of FirstRand Bank Ltd)

Auditors PricewaterhouseCoopers Inc

Turnover [2011] R342.8m (AR2011 - Vehicle Tracking segment)

Estimated Profit R71.7m (Operating)

Brandnames

FastTrac, Geoloc, Matrix, MiX Drive, MX1, MX2, MX3, PinPoint, SafeDrive, X-Drive

Subsidiaries, Associates & Investments

Name Percentage

Matrix V-Track Nigeria Ltd 60.00

MiX Telematics East Africa Ltd 99.90

MiX Telematics Enterprise SA (Pty) Ltd 85.10

MiX Telematics Fleet Support (Pty) Ltd 49.00

General Comment

On 1 April 2008, MiX Telematics Africa division concluded a shareholders’ agreement to establish a

company in Nigeria (Matrix-V Track Pvt).

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TRACKER NETWORK (PTY) LTD

Trading As: Tracker

Reg. Number: 1995/005497/07

VAT Number: 4030154340

BEE Rating: Level 5 EmpowerLogic Updated: 2012-01-25

Postal Address: Physical Address:

PO Box 2492, Cresta

2118

Stonemill Office Park, 340 Republic Road

Darrenwood, 2194

Tel: +27 11 380 0300 Fax.: +27 11 380 0399

Email: [email protected] Website: www.tracker.co.za

Shareholders

Shareholder Percentage

Tracker Connect (Pty) Ltd 100.00

Management

Name Position Email Appointed

Mr André Ackerman Chief Financial Officer

2005-01-01

Mr Gareth Crocker Communications Manager

Mr Michael du Preez Marketing Director

2007-01-07

Mr Alan Hutcheson Chief Executive Officer

2007-01-07

Mr Ronald (Ronn) Knott-Craig Operations Director

2007-01-07

Mr Andile Luke Human Resources Director

2002-01-10

Mr Michael Nieuwoudt Sales Director

2003-01-09

Mr Clement Olivier Technical Director

1999-01-06

Mr Koos Radebe CSI & Communications Director

2003-01-04

Ms Bronwyn Tippett Marketing Manager

Mr Carel Wessels Engineering Director

2007-01-06

History of Business

Tracker Network (Pty) Ltd t/a Tracker was established when a shelf entity named Groovyprops 7

(Pty) Ltd was utilised for registration purposes and the name changed to Tracker Network (Pty) Ltd.

Nature of Business

Tracker operates as a technology company offering stolen vehicle recovery (SVR) and fleet

monitoring/telematics solutions to both individuals and companies throughout Southern Africa. The

company´s network coverage spans over 98% of South Africa and currently 570 102 vehicles are

fitted with the Tracker technology in South Africa. Installation of tracking devices are carried out by

approved fitment centres in South Africa.

Nr. of Employees 1 200

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Empowerment

Stake 35.97% (Mineworkers Investment Company (Pty) Ltd)

Secretary Ms Lizette Le Roux

Banks First National Bank (a division of FirstRand Bank Ltd)

Auditors PricewaterhouseCoopers Inc

Turnover [2011] R1,081.2m (Est) (As per company)

Target Market

Major companies as well as all vehicle owners.

Brandnames

ExecuFleet, ExecuSAT, Fleet, SkyTrax, Tracker Alert, Tracker Retrieve

General Comment

Tracker has been operational since it was developed by LoJack in the USA in 1986. The Tracker

system was originally developed as an aid for the police to curtail vehicle theft. More than 2 million

units have been fitted throughout the world.

Tracker is also the only vehicle tracking company in South Africa to benefit from a formal

partnership with the South African Police Service, having just recently renewed its partnership

contract with the SAPS, to combat vehicle theft and hijacking for the third consecutive five-year

term. This means that Tracker´s recovery technology is fitted in about 1 300 recovery vehicles and

50 aircrafts, ensuring that Tracker is able to operate with the ´power of arrest´.