Recall by wuyunyi


									22    Business Reviews

Recall achieved revenue growth of 10% for the year, the
majority of which was through organic growth. This was
a significant achievement, as the 18 acquisitions made
during the year created a larger base from which to grow.
Importantly, growth in profitability continued to exceed
revenue growth.

Recall’s global business foundation               customer cartons improving significantly in the   A very efficient, modern storage facility in
comprises a standard service menu,                second half of the year.                          an existing market was added with the
standard operating procedures and a                                                                 purchase of Atlanta Records Management,
                                                  Document Management Services
standard, global IT platform. From that                                                             a very strong player in the legal and financial
                                                  Document Management Services (DMS),
basis, Recall has been able to clearly define     Recall’s major business segment, continued        services segments in the south-east of the
acceptable service delivery through its           to achieve improved revenue growth,               United States.
statistically-based service improvement           particularly in the second half.
                                                                                                    The March acquisition of the UK-based
program, Perfect Order.
                                                  Acquisitions were undertaken during the           Sentinel brought a ‘best practice’ facility in
A Perfect Order is one which is not only on       year to broaden the business ‘footprint’ into     Greenwich, London – a market in which
time and complete but one that has been           new and strategically important markets,          Recall’s existing capacity had become
delivered completely consistent with Recall’s     and also to add efficient storage capacity to     constrained. The ‘mega-centre’ provides
standard operating procedures.                    support future growth.                            substantial additional capacity to service
                                                  A goal for the year was to expand into two        growth in this market.
This program has been a mobilising force
                                                  new, significant North American markets.
behind business improvement for Recall in the                                                       During the year, Recall became the leading
                                                  This was achieved through the purchase of
past year. Early evidence shows that it is                                                          document management provider in
                                                  Professional Records Storage, providing
driving increased customer satisfaction and, in                                                     Scandinavia with entry into two new markets
                                                  entry into the Washington, DC market, and
turn, revenue growth. Perfect Order continues     the acquisition of All-Data in Minnesota,         – Sweden and Finland. It also completed the
to have a positive effect on reducing customer    with centres in the Twin Cities of                purchase of the leading data management
turnover, with the ratio of new to discontinued   Minneapolis-St Paul.                              services business in Oslo, Norway –

                                                                                                    Auckland, New Zealand

                                                                                                         Year ended              Year ended
                                                    A$ millions                                        30 June 2003            30 June 2002     Change %

                                                    Sales                                                      698                        634           10
                                                    Comparable operating          profit1                      130                        111           17

                                                    1 Comparable operating profit is defined on page 81.

Arkivrommet Recall – in which Recall has held       Revenue segmentation                                      Revenue segmentation
an equity stake since 2001, and increased its       by region                                                 by product
stake in Arkivrommet in Denmark.

Elsewhere, extra capacity has been                    A$516       A$634      A$698                              A$516     A$634      A$698
                                                      million     million    million                            million   million    million
developed. Recently, a new mega-centre
was opened in Boston, USA and a highly                                      3%                                                      3%
efficient, one million carton mega-centre was
                                                                            16%                                                     13%
                                                                3%                                                        4%
opened in Sao Paulo, Brazil.
                                                              16%                                                      15%
Through its joint venture in Singapore, Recall
                                                     4%                                                       5%                    28%
operates the tallest information centre in the
world. The 45-metre storage tower                   19%       23%                                            18%       27%
was matched during the year with the
construction of a second tower. Both feature        25%                                                      19%                                Integrated
a sophisticated crane system.                                                                                                                   Solutions
                                                                                            Other                                               Data
Secure Destruction Services                                                                                                                     Protection
                                                              58%           52%             Australia/                 54%          56%         Services
Secure Destruction Services (SDS) is                                                        New Zealand      58%
                                                    52%                                                                                         Secure
Recall’s fastest growing business, with a                                                                                                       Destruction
                                                                                            Europe                                              Services
leading position in North America.
                                                                                            Americas                                            Document
A focus for SDS during the year was the                                                                                                         Services
consolidation of acquisitions made in the past         2001        2002       2003                              2001       2002       2003
three years, which included a number of the                 Years to 30 June                                          Years to 30 June
leading secure destruction companies in
North America. Those acquisitions formed a
national network of secure destruction facilities
which have been re-branded and brought
under a single management team.

Another aim in SDS was to fill the
geographic ‘holes’. That was achieved to a
great extent by acquisitions in key markets

                                  Atlanta, USA      Sydney, Australia
24    Business Reviews

“Through Recall’s global quality initiative – Perfect Order – we have been able to
 define in very objective terms how we measure quality service, allowing us to
 understand whether we are delivering on our promise to customers. Through
 our efforts in Recall this year, we now have the ability to show our customers
 exactly how we performed … by service centre, by order, by day, by shift, by
 type of item, by any way they want to slice it.”
 Al Trujillo
 President & Chief Executive Officer, Recall

                                               including in the United States, major centres   Data Protection Services
                                               in Indiana, Kentucky, Mississippi, Ohio,        During the year, this business achieved
                                               Rhode Island and a number of locations in       consistent, profitable growth in its
                                               Texas, and Vancouver in Canada.                 established markets, benefiting from the
                                                                                               heightened awareness of the need for
                                               A number of important, national contracts
                                                                                               adequate disaster recovery systems in the
                                               were also gained in the United States,
                                                                                               current global security environment.
                                               including a contract with Wal-Mart to service
                                               3,000 pharmacies across the country.            A significant accomplishment was the
                                                                                               conversion of systems to a common
                                               In Thailand, where Recall had already
                                                                                               operating platform, allowing Recall to
                                               forged a presence in DMS and Data
                                                                                               provide consistent, secure data tape storage
                                               Protection Services, a Secure Destruction
                                                                                               and business continuity services in its
                                               Centre was opened in the industrial province
                                                                                               key markets of North America, the
                                               of Samutprakarn, outside Bangkok.
                                                                                               United Kingdom and Asia-Pacific. There
                                               External factors continue to fuel growth in     are plans for expansion of these services
                                               demand for secure destruction, as new           in South America.
                                               regulations and heightened concerns about
                                                                                               The provision of software escrow services
                                               identity theft and corporate governance
                                                                                               continued to expand globally with the North
                                               have increased attention on these issues.
                                                                                               American business growing by 26% due to
                                               In the US, a raft of new State privacy laws
                                                                                               a strong sales program.
                                               require the secure destruction or shredding
                                               of certain documents.                           Integrated Document Solutions
                                                                                               Recall’s smallest business stream, Integrated
                                                                                               Document Solutions (IDS), has been
                                                                                               strategically refocused in the past year. The
                                                                                               number of digital images stored on-line was
                                                                                               increased significantly and the business
                                                                                               offering moved to a more integrated
                                                                                               solution, including not simply the hosting of
                                                                                               images, but also the conversion of
                                                                                               documents from paper to digital form.

                                               Atlanta, USA                                    Singapore

To support this strategic shift, additional
scanning capacity was added in each of
IDS’ major markets.

This year, Recall made its first IDS
                                               Customer focus
acquisition, ISI in Atlanta, Georgia,
complementing the existing business and
bringing specialised imaging and data
capture services.
                                               Recall Secure Destruction Services          unrecognisable and / or unusable,
Solutions focus
                                               ensures dependable, confidential            then recycled whenever possible.
Recall’s four complementary business
                                               destruction of all types of material for
streams provide customers with a full suite                                                Through its reliable and secure
                                               clients in industries such as financial
of services.                                                                               services, Recall is capable of
                                               services, health care and information
The sales organisation is being transformed                                                destroying a wide range of sensitive
from a product-oriented to a solution-based                                                materials. In addition to confidential
organisation, structured to serve particular   Recall’s global network of Secure           paper documents, disks, tapes and
industries. Where, previously, Recall might    Destruction Centres is specifically         films, Recall can handle items with
have had two or three people calling on a      engineered, staffed and monitored           high intrinsic value such as excess,
customer, it now has one national, major       to provide the highest standards of         superseded or sub-standard branded
account manager for each customer – with       efficiency and confidentiality in dealing   products that need to be removed
product specialists brought in as needed for   with items including records of financial   from channels of commerce.
a specific solution.                           transactions, consumer information,         A Certificate of Destruction is available
                                               medical patient records and uniforms.       for each service.
Growth for Recall will continue to come
from selected acquisitions and from the        Materials are collected by Recall’s         With integrity and discretion, Recall
large segment of the market for outsourcing    trained Security Service                    ensures the proper disposal of all types
of information management that is,             Representatives, transported in             of confidential information and the
as yet, untapped.                              secured trucks, and delivered to            medium on which it is held, removing
                                               a Recall Destruction Centre.                the risks associated with accidental or
                                               The materials are then shredded             intentional breaches of privacy.
                                               or pulverized to render them

Sydney, Australia

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