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Strategic aim

The world is increasingly connected and this trend is set to continue, driven by the global investment in infrastructure, communications, technology and data.

At G4S we are investing in the resources and capabilities to provide customers with industry-leading solutions that enable them to operate securely, reliably and efficiently in a connected world.

This year, we have included an extended market review, identifying some of the key trends facing our industry and outlining how G4S is developing and delivering solutions in both our Security and Cash businesses that add value to G4S and our customers.

View from the top

  • Integrated solutions in a connected world

    Since 2013, underlying revenues have grown by 18% and Adjusted EPS by 56%, while we have generated operating cash flow of nearly £3 billion.

    Ashley Almanza Group Chief Executive Officer

     

    Chief Executive’s Review(66KB PDF)
    Ashley Almanza
  • Corporate governance supporting change

    During 2018 we made progress in developing our plans to position the company for the future.

    John Connolly Chairman

     

    Chairman’s Statement(98KB PDF)
    John Connolly

Financial Highlights and KPI’s

RevenueKPI

£7.3bn+1.1%

(2017: £7.2bn)

Adjusted PBITAKPI

£474m

(2017: £474m)

Adjusted EPSKPI

16.7p

(2017: 16.7p)

Operating cash flowKPI

£453m-12.2%

(2017: £516m)

Dividend per share

9.70p

(2017: 9.70p)

At a glance

With 546,000 people, G4S is one of the world’s largest private sector employers.

Our employees touch the lives of others every day, providing crucial services to keep them safe and secure.

Our success is underpinned by the way we lead and engage with our people.

Our businesses

Secure solutions:

85% * of Group underlying revenues
  • 78% Security solutions
  • 7% Care and justice services

A world leader in integrated security

Our strategy anticipates and addresses global security challenges and trends and ensures G4S is well positioned in an industry expected to grow 4 - 6% per annum from 2017 to 2027.**

With our global footprint in more than 90 countries, an attractive range of products and services, and security expertise, we are well positioned to meet this increased demand.

We continue to develop innovative industry-leading solutions that integrate consulting, technology, people and data analytics to deliver solutions that are relevant, valuable and effective for our customers.

We are investing in an efficient and effective organisation with strong values and a positive embedded safety culture.

**Freedonia Security Services Report, October 2018.

Our business model

G4S PEOPLE G4S TECHNOLOGY

Cash solutions:

15% * of Group underlying revenues

Connecting cash solutions

In order to achieve economies of scale, we have built number one or number two positions in 41 of the 44 countries in which we operate. In all of these markets, a very large share of the overall cash handling and cash management market remains within banks, retailers and other businesses whose primary function is not cash handling. We believe that these banks and businesses will continue to outsource cash management services to G4S.

Our improving unit economics, the strength of our market positions and our innovative cash and payment technology give us confidence that G4S Cash Solutions is well positioned to play a leading role in the next wave of cash management outsourcing. We have a market leading position in the large retailer segment in the United States and we are one of the market leaders globally in the small and midsize business market segments.

Our technology is delivering significant savings for our customers and provides a valuable higher margin annuity revenue stream for G4S. Market penetration is low at this stage and we therefore see substantial potential for further growth. Indeed we believe that our cash technology services have the clear potential to produce profits greater than the profits from the Group’s CIT and cash processing business in the medium term.

Our business model

#1 OR 2 MARKET LEADING POSITIONS IN 41 OF 44 COUNTRIES G4S Technology G4S People G4S Network

Social impact and CSR performance highlights

We play an important role in society - our 546,000 employees deliver services that create a safer and better environment in which millions of people live and work. Through these services and our organisation, G4S delivers a broad range of significant and far reaching social and economic benefits to the communities in which we live and work, many of which are helping to realise the United Nations Sustainable Development Goals.

  • Health
    and Safety

    The safety of our employees and those in our care is one of our corporate values and is a priority for the Group.

    100

    Reduction in road traffic fatalities since 2013

  • Human
    rights

    Our respect for human rights is core to the sustainable success of the business and continues to by an important part of our risk assessments and mitigation process.

    96

    Human rights control self assessments carried out in 2018

  • Anti-bribery and
    Corruption

    We will continue to develop and encourage a workplace culture in which all employees are clear about the company’s standards of ethics and feel confident that they may raise ethical concerns.

    519

    Number of cases raised via Speak Out

Strategy and performance overview

  • People and values

    We recruit, develop and deploy the best people in the industry

    100

    Reduction in road traffic fatalities since 2013

  • Customer focus and service excellence

    We build long-term customer relationships based upon trust and understanding of our customers’ businesses and objectives

    £1.4bn

    Annual contract value of new business won in 2018 (2017: £1.4bn)

  • Technology and innovation

    We design, market and deliver innovative, industry-leading technology and services that protect and add value for our customers wherever they operate

    45%

    Of security revenues were technology enabled in 2018 (2017: 42%)

  • Operational excellence and cost leadership

    We have safe, secure, reliable and efficient operations

    30bp

    Improvement in Secure Solutions Adjusted PBITA margin in 2018 compared with 2017

  • Financial and commercial discipline

    We manage risk effectively and ensure we provide profitable, cash generative services

    100

    Reduction in annual finance costs through refinancing achieved

Our values

Our people and values underpin everything we do.

  • We act with INTEGRITY AND RESPECT
  • We are passionate about SAFETY, SECURITY AND SERVICE EXCELLENCE
  • We achieve this through INNOVATION AND TEAMWORK