1. THE FUTURE OF PRIVATE SECURITY COMPANIES Lt Col Tim Spicer OBE Chief Executive Officer 31 October 2006

2. The Future of Private Security Companies “The 2006 Quadrennial Defence Review for the first time outlines a vision of the National Security Battle Space with significant private sector involvement” NDU Report 2006

3. The Future of Private Security Companies Current and future operational environment Key factors Commercial Government Humanitarian Assessment

4. The Future of Private Security Companies THE LANDSCAPE The Unstable World Protracted Asymmetrical Warfare Terrorism Organised Crime Deep rooted problems Threat of traditional warfare between states Natural disaster, famine, drought, tsunami, earthquake and associated complications Wide spectrum of actors Continuing inability of UN to act quickly, decisively and effectively Media

5. The Future of Private Security Companies CURRENT MARKET DRIVERS IRAQ AFGHANISTAN GOVERNMENT Vs COMMERCIAL NATIONALISATION COMPETITIVE TENDERING / MARKET FORCES

6. The Future of Private Security Companies SIZE OF INDUSTRY 20,000 in Iraq alone 2 nd largest Coalition Partner Revenues in excess of $100 billion by 2010 ???????? In US Service contracts including security 40% of DOD contract

7. The Future of Private Security Companies CRITICAL FACTORS IMAGE REGULATION CAPABILITY

8. The Future of Private Security Companies IMAGE

9. The Future of Private Security Companies REGULATION National International Aggressive Self-regulation Quality Standards Insurance Liability Contractual compliance

10. The Future of Private Security Companies CAPABILITY Management & leadership Professional Standards Effective Delivery Engage carefully Innovate to survive Mutual Support

11. The Future of Private Security Companies COMMERCIAL WORLD Can’t escape the threat Greater awareness for need of security Duty of Care Sarbanes – Oxley Act 2002 Insurance

12. The Future of Private Security Companies GOVERNMENT US UK: FCO, MOD Home Defence (Homeland Security) Peacekeeping/Peace enforcement Security Sector Reform

13. The Future of Private Security Companies HUMANITARIAN UN ? Natural Disasters NGOs ‘The Humanitarian Space’ Post conflict reconstruction

14. The Future of Private Security Companies THE FUTURE

15. The Future of Private Security Companies ASSUMPTIONS Threat will continue No abrogation of sovereignty No abrogation of responsibility for National Defence at home/overseas Conflict Resolution by established Armies UN & unilateral government action will lead in Peacekeeping/enforcement Quest for regulation will continue Media

16. The Future of Private Security Companies ROLES COMMERCIAL Business Intelligence Physical Security Duty of Care

17. The Future of Private Security Companies GOVERNMENT UK/US outsourcing Protective Security - Static - Mobile Military Support - Force Protection - Lines of communication - KP - Training - Air & Aviation -Specialist EOD/Medical SSR / DDR

18. The Future of Private Security Companies HUMANITARIAN Protective Security C3I ‘Hearts & Minds’

19. The Future of Private Security Companies INDUSTRY FUTURE TRENDS Continue to strive for legitimacy Engagement Consolidation Diversification Internationalisation

20. The Future of Private Security Companies SUMMARY Healthy but at a critical milestone Solid sector in UK and US UK could be “quality” market leaders Work together

21. QUESTIONS