Safe Storage

Safe Storage develops innovative solutions for the protection of valuables at home, in transit and at work and helps businesses and people control access to those valuables effectively. The Business Unit represents 40% of Group sales.

Vision: Become the number one protector of valuables.

Mission: To protect valuables and to provide peace of mind at home, in transit and at work.

40

%

of Group Sales

A wide range of safe storage products is available from Gunnebo brands, including modular strong rooms and vault doors, mechanical and automated safe deposit lockers, high-security electronic locks and locking systems, safes and filing cabinets, globally marketed through the renowned brands Chubbsafes, Hamilton and Steelage. These brands have been providing customers with peace of mind for centuries. Gunnebo’s offering in Safe Storage also includes high-security server cabinets (SecureIT) that protect sensitive IT equipment not only against intrusion, manipulation and wilful damage, but also from intelligence gathering and high-energy electromagnetic pulse attacks.

The products are certified by independent certification bodies that guarantee a specific level of protection against burglary, fire or explosives. Since there is no global certification standard, Gunnebo certifies its products in accordance with the most trusted regional norms, such as EN in Europe, UL in the USA and BIS in India. Independent certification is important for customers as it provides a recognised classification system which corresponds to local insurance ratings.

Global market for Safe Storage

The market for Safe Storage is very fragmented with only a few players acting on more than one continent. The market is also fragmented in terms of offering, stretching from high-graded products down to basic metal safes. Total market value is estimated at some BSEK 32, where Europe, Middle East and Africa represents 39%, Asia-Pacific 33% and Americas 28%. The annual CAGR is estimated at 6% until 2022.*

*Source: Global Safes & Vaults Market 2018–2022

Market drivers and trends

  • Growing demand for safes and vaults to protect valuables outside the banking sector
  • Customisation driven by changing needs of what individuals and businesses want to protect
  • Cybersecurity growing in importance
  • Safe storage products integrating technology for more connectivity
  • Greater security concerns due to terrorism and a more uncertain world order for all public and high-risk sites

Strategic priorities

  • Customer-driven solutions through a new, proprietary innovation model
  • Become recognised as the leading innovator in our business
  • Capture growth by product offering and sales through distribution and channel partners
  • Support bank customers in their change process
  • Develop non-banking markets – update product roadmap for new segments with fit-for-purpose offerings

Performance 2020

Safe Storage was adversely affected by the pandemic during the year. Since the end of the first quarter the Business Unit saw a dramatic drop in both order and sales levels, which reached the lowest point in Q2. Safe Storage did gradually recover both sales and orders during the remaining quarters of 2020.

The main reason for the drop was lower demand due to restrictions on mobility and closures of several important markets. The pandemic also affected the service and installation business with a decline in demand, even though service to customers with crucial roles in society was maintained throughout the year. In addition, some of the Business Unit’s manufacturing units were temporally closed due to government restrictions during the second quarter, and the utilisation ratio was substantially lower than during a normal year. The latter led to absorption losses in the manufacturing units, which was addressed by cost adaptations and capacity adjustments.

Share of Group – Safe Storage

During the year Safe Storage continued to invest in order to the strengthen its online presence and the Business Unit’s product development. Market specific websites were launched for the Chubbsafes brand and e-commerce platforms in South East Asia, India and Indonesia performed well since being introduced from Q2. September saw the launch of the EverydaySafe™ security solution, which can be integrated flexibly into storage units in the home and office. Using existing expertise and technology, this new patent-pending product was developed, which should be seen as a complement to the Business Unit’s offering as it primarily targets individuals. The first orders of the EverydaySafe™ were delivered during Q4.

For 2020, the Business Unit’s EBITA amounted to MSEK 37 (158), resulting in a margin of 2.2% (7.0). The lower result is attributable to the drop in sales volumes on almost all markets due to COVID-19 which rigorous cost control was not been able to fully compensate for.

 

2020

2019

Net sales, MSEK

1,701

2,248

Sales growth, %

–21

6

EBITA, MSEK

37

158

EBITA, %

2.2

7.0

Sales model and customer structure

Market segments

Bank, public sector, homes, retail, commercial offices, pharma, distribution, ware­houses storing high­value goods and high-risk sites

Sales model

Direct: complex projects, ATM safes and service

Indirect: safes, cabinets and service

Gunnebo brands

Manufacturing units

  • Doetinchem (NL)
  • Markersdorf (DE)
  • Halol (IN)
  • Jakarta (ID)
  • Cincinnati (US)

Customer cases

Peace of mind reimagined: EverydaySafe™ safe launched in partnership with kitchen retailer

In September 2020, Gunnebo launched an important new product under its Chubbsafes brand, marking a radical step forward in the Group’s approach to innovation and opening up large and exciting new markets.

The EverydaySafe™ is a mass appeal product designed to be sold as an integral part of high quality household or office furniture. The solution is highly versatile and can be built into a kitchen, bedroom, hotel or office environment, blending invisibly into the furniture. Indeed, it becomes part of the furniture.

This is a novel product that has potential to open up new markets for Gunnebo. It was market tested and launched in Sweden and Norway in partnership with Ballingslöv, a well-known kitchen manufacturer. Ballingslöv is marketing the EverydaySafe in the following way:

https://www.youtube.com/watch?v=_AoU3-AeKIE&feature=emb_logo

The EverydaySafe™ was developed in a “sprint” of hackathons and workshops as part of Business Unit Safe Storage’s new innovation strategy, developed in 2019. The innovation drive is a key element of Gunnebo’s strategic plan to become “the number one protector of valuables through industry-leading innovation”. Called the Gunnebo Safe Storage Way to Innovation, the strategy aims to seize growth opportunities in selected segments by shifting our innovation formula from factory-based to customer-based.

The concept of a mass appeal residential safe was developed in response to rising crime, with domestic security and the fear of being targeted in the forefront of people’s minds. Indistinguishable from standard drawers, cupboards or cabinets, the EverydaySafe™ is a high-tech appliance that acts as an attractive addition to existing furniture designs.

Not only does it protect and safeguard against burglary of stored items such as passports, cash, jewellery and watches, it also includes a signal-blocking Faraday cage to prevent the copying of credit card data or digital car keys via sophisticated high-tech theft devices. The safe is equipped with an anchoring technology providing assurance against attempts to forcibly remove the safe from the furniture. It is opened using a mobile phone app or via biometric fingerprint identification.

The EverydaySafe™ is currently being launched in the UK and in Germany. We encourage all kitchen retailers interested in becoming an official distribution partner to contact the EverydaySafe™ team.

EverydaySafe (photo)

First fully automated, 24/7-self-service deposit box business in German non-banking sector

Private safe deposit centres are growing in number across the world – not only because of troubled economic times, but also due to the downward trend in the number of physical bank branches.

Trisor GmbH is a start-up business with big ambitions to reshape the market for safe deposit box services in Germany. It has a vision to provide clients with practical, highly secure and easy 24/7 access to their valuables.

Trisor is therefore establishing a unique network of local, state-of-the-art, automated safe deposit locker facilities, ensuring round-the clock access to their specialist rental business. So management was looking for a trustworthy, reliable, long-standing and above all highly experienced supplier of automated safe deposit boxes to begin realising this project.

Trisor (photo)

Julian Treidler, CEO, was aware of Gunnebo’s proven track record in this specialist sector and was confident of our reputation for supplying complex solutions on time and within budget: “With Gunnebo we can grow exponentially as they are flexible, innovative and professional. Each project is managed with precision and we know we can rely on their experience and expertise to realise our future projects.”

Gunnebo’s state-of-the-art, fully automated safe deposit locker solution SafeStore Auto (SSA) was the ideal choice to equip Trisor’s first facility in Berlin. Trisor commissioned a fully project managed solution of more than 5,000 safe deposit boxes and three SSA Midi dispensing units. These include advanced technology with a multi-layered customer authentication process, comprising a crypto memory card, pin code and biometric fingerprint scan.

The management team at Trisor has the ambition to roll this concept out nationwide. Their intention is to expand to an additional 17 sites in Europe over the next three years. Growth plans are both aggressive and rapid.