Estonian security market and fair competition

1. Foryoursafety! Estonian security market and fair competition Andre Lilleleht Estonian SecurityAssociation (ESA) CEO 09.11.2017

2. ESA – historicalbackround • Estonian Security Association (ESA) is a non-governmental organization established by the leading security service companies in 1993. • The aim of ESA is to promote the high quality standards in security business and to represent the interests of its members before government agencies and other institutions. • The main goal for ESA is to maintain the principles of good practice in security business and to co-operate with all interested parties on security and safety issues both at home and internationally. • An important area of activity is the development of cooperation with law enforcement agencies and other interested parties in matters concerning the security of society.

3. ESA - nameclarityissue • Turva – SecuritybutTurvalisus – SecurityandSafetyandSafeness • Turvaseadus – SecurityAct – a lawthatregulatestheactivities of privatsecurityfirms • Valvamine - Guarding • Kaitsmine – Protection • Ohutus – Safety • Turvaline elukeskkond – Safelivingenviroment • Estonian SecurityAssociation (ESA) = guarding + protection + safety + technology + training + auditing = Safelivingenvironment

4. ESA membershipissue • ESA pays constant attention to the development of relations between its members in the spirit of good business practices and the observance of the principles of fair competition in the entire security market. The principles are set out in Good Security Practices Agreement. • Becoming a member of the ESA provides an opportunity to participate in shaping the environment that affects security business. • Being a member of the ESA is a sign of heightened standards of self, and it is also a guarantee of greater reliability for our customers and partners. • ESA has 23 members who control approx. 75% of Estonian security market.

5. Fields of economic activities of members • Securitytechnologysector • Mechanicalprotectiontools • Alarm systems • Access ControlSystems • Video systems • Automaticfire alarm systems • Sprinkler, waterfog and foamextinguishingsystems • Gasextinguishingsystems • Emergencylighting • SmokeDetectionSystems • Fireextinguishers • Guarding and protectionsector • Guarding services • Alarm services • Personal protection services • Secure freight escort services • Securing public events • Traffic management • Parking arrangement 8/0 • Safetysector • Water rescue services • Fire safety services 23/4 18/11 6/2 Securitytraining Security audit 8/1 5/1

6. Contribution to the Estonian economy

7. The total turnover of security companies

8. Contribution to the Estonian economy

9. The total volume of Estonian security market

10. Turnover of security&safetysystem

11. Turnover of security&safetyservices

12. Privat marketof safety services in Estonia

13. How to create an honest competitive environment? • ESA members are sure that executionof good security practices contributes to the development of high business ethics.Honest, reliable and diligent compliance of contracts, the quality of provided service and goods being sold, and respect for the contractual partner are unwritten laws (Good Security Practices Agreement). • How to participate in setting up fair competitive environment beyond the scope of the ESA membership? • Cooperation with competitors? • Cooperation with contractors? • Cooperation with the public? • Cooperation with market surveillance authorities?

14. ESA co-operationpartners ESA's current cooperation agreements: • Ministry of the Interior • National Rescue Board • National Tax and Customs Board (TCB) • Associations of security companies in Lithuania and Latvia • Turiba University (Riga) Planned Co-operation Agreements in 2018: • Police and Border Guard Board • Ministry of Justice, Ministry of Finance, Ministry of Economic Affairs and Communications. • Professional associations with common interests

15. Cooperation agreement between TCB and ESA • The cooperation agreement was signed on September 22, 2009, with the aim of enhancing measures to prevent the payment of non-pecuniary wages and hiding turnover in privatcompanies operating in the field of security and safety. • In April 2017, all ESA memberssigned a writtenconsent of freewillas an addendum to the cooperation agreement, according to which TCB will send quarterly summaries to all ESA members about their turnover, taxes paid, number of employees and gross wages. • On the basis of TCB summaries, it is possible to assess the key indicators of security firms operating in the market, which in turn can serve as a basis for the implementation of value-based procurement by contracting authorities.

16. Security companies' turnover and taxes paid The turnover of enterprises providing manned surveillance services in the third quarter of 2017 Taxes paid by enterprises providing manned surveillance services in the third quarter of 2017 7 143 002,4 EUR 27 264 968,3 EUR

17. Securitycompanies’ avaragewages in 2017

18. Securitycompanies’ avaragewages in 2016

19. Security market avaragewages in 2016

20. Foroursafelivingenviroment! Wethank all market players, industryworkers and ESA partnersfor keeping a goodsecurity market in ESTONIA