DEKRA brings safety to the world

• Sales grow by around 7 per cent to 2.3 billion euros
• Adjusted EBIT stands at 162.7 million euros
• Equity ratio increases to 24.5 per cent
• Number of employees increases to around 32,600
• Strategic acquisitions strengthen international presence

The globally active expert organisation DEKRA is benefiting from its consistent strategic focus on the safety megatrend and the internationalisation of its business. In the 2013 financial year, sales increased by 6.8 per cent (currency-adjusted 7.3 per cent) to 2.3 billion euros. Adjusted earnings before interest and taxes (EBIT) increased by 10.5 per cent to 162.7 million euros. The adjusted EBIT margin improved to 7 per cent. DEKRA has harmonised its accounting for the 2013 financial year even more closely with international financial standards (IFRS). By adjusting the key earnings figures for non-operating effects, more transparency and better comparability are achieved and the operating profitability is emphasised. The foreign share of sales increased further to more than a third (36.2 per cent). Growth was generated by all three business units - Automotive, Industrial and Personnel - and was achieved in roughly equal parts organically and through acquisitions. The number of employees increased significantly by around 4,300 to almost 32,600. The current year has also got off to a good start: In the first quarter of 2014, turnover rose by around 13.8 per cent to almost 590 million euros. DEKRA expects the company's successful development to continue for the year as a whole. Thanks to the strong position in many markets and the increasing demand for safety services, growth in 2014 is expected to be on a par with the previous year.

‘The consistent focus on our statutory mission of safety and internationalisation are the formula for the success of our positive global development,’ DEKRA CEO Stefan Kölbl told journalists in Stuttgart on Thursday. Safety knows no borders. That is why the company transports its expertise all over the world: ‘This enables us to continuously improve our global delivery capability for our globally active customers,’ explained DEKRA CEO Stefan Kölbl. Acquisitions play an important role in this. Of ten acquisitions in 2013, the majority were made abroad, including Sweden, South Africa, Australia and New Zealand. This means that DEKRA has been present on all five continents since 2013. The growth is also reflected in the number of employees, which rose by 15 per cent to almost 32,600. "I am delighted that we have once again been able to strengthen our equity ratio while continuing to grow steadily. This makes a decisive contribution to job security at DEKRA," says Roland Gerdon, DEKRA Board Member for Finance, Human Resources and IT.

Leading in Germany - expanding internationally

Turnover in the DEKRA Automotive business unit rose by 5.7 per cent to 1.23 billion euros. Germany continues to be the most important market: DEKRA-Automobil GmbH once again performed very well with sales of around one billion euros (including recurring industrial testing services). For the first time, more than nine million vehicles were inspected in Germany. Despite intense competition in the testing sector, the market share is around 34 per cent. DEKRA is the market leader here as well as in the area of expert reports.

With a total of 23 million vehicle inspections, DEKRA is also the leading testing organisation for motor vehicles worldwide. This position underlines the importance of the internationalisation of core automotive services. In 2013, for example, DEKRA acquired a majority stake in Vehicle Testing New Zealand (VTNZ), the number one testing organisation in New Zealand. ‘With VTNZ, we have gained 80 test centres, 800 employees and around 50 million euros in turnover in one fell swoop,’ said Stefan Kölbl.

Well positioned in high-growth markets

The DEKRA Industrial business unit continued to develop dynamically: sales rose by five per cent to 674.2 million euros in 2013. Business was successful, for example, in the Business Assurance, Product Testing & Certification, Consulting and Materials Testing & Inspection services. DEKRA has further strengthened its position in these areas by acquiring companies in South Africa, Australia and the Netherlands. Stefan Kölbl: ‘The DEKRA Industrial business unit is particularly internationally positioned with a foreign share of 85 per cent of sales.’

Strong growth with personnel services and qualifications

The Personnel business unit increased its turnover by 16.2 per cent to around 390.3 million euros. ‘Both DEKRA Akademie and the DEKRAArbeit Group have grown strongly despite tough competition and against market trends,’ said DEKRA CEO Stefan Kölbl, expressing his satisfaction.

International markets are also becoming increasingly important for the DEKRA Personnel business unit. For example, DEKRA Akademie is supporting a pilot project for dual vocational training in the tourism industry in Greece on behalf of the Federal Ministry of Education. The aim is to improve the labour market opportunities of young Greeks and thus reduce the high level of youth unemployment. In Hungary, DEKRA is training nursing staff to reduce the shortage in Germany. After completing their training, these nurses work in German clinics. The DEKRA Arbeit Group is expanding its personnel services business in European markets from Spain to Turkey. In addition, an increasing number of skilled workers are being placed in Germany from abroad.

Safety mission creates social benefits

"We consistently pursue our safety mission. This not only opens up new growth potential for us, but also creates concrete social benefits," explained Stefan Kölbl.

In the DEKRA Automotive business unit, the expert organisation is increasingly focusing on pedestrians and other road users as well as drivers. The DEKRA Technology Centre in Klettwitz, Brandenburg, has put a new test bench into operation. It can be used to test electronic driver assistance systems for the protection of pedestrians as early as the development phase. DEKRA is thus supporting the accelerated introduction of safety systems in series models, which will help to increase pedestrian safety. At present, one in five road deaths in the EU is still a pedestrian.

In the DEKRA Industrial business unit, DEKRA has established itself as an internationally recognised expert in materials testing in just a few years. Thanks to this expertise, the company has been appointed to the European Commission'sPETROBOT consortium. A group of leading companies is developing robots that will be able to carry out hazardous inspections in pressurised containers and tanks in the future. In the DEKRA Personnel business unit, new services are increasingly being designed on the basis of Internet technologies. ‘The internet is revolutionising the way we learn,’ says Kölbl. ‘We use this, for example, to communicate safety-relevant information in compliance with occupational health and safety legislation.’ DEKRA offers employers an internet platform for this with the DEKRA Safety Web. The solution was the first occupational safety portal for online instructions to be certified by the German Statutory Accident Insurance.

Outlook for 2014: unbroken growth trend

DEKRA will continue its long-term upward trend in 2014. ‘With a little economic tailwind, we will once again grow significantly both nationally and internationally and improve our key figures,’ said Kölbl.

The international delivery capability for globally active customers is to be further expanded. The DEKRA CEO described the recent expansion of capacity with the opening of the new laboratory for product testing and certification in Arnhem, the Netherlands, as an important milestone on this path: "With the new centre and our global laboratory network, we are ideally positioned in this growth market. "The DEKRA boss expects business impetus from the increased internal networking of expertise, for example in process and organisational safety: as one of the world's leading safety consultants, the DEKRA Insight service unit supports global customers in the oil, gas and process industries from the USA, the UK and Australia.

In DEKRA growth regions such as North America and Asia-Pacific, the international expert organisation intends to grow organically with core automotive services and services relating to the safety of production facilities and electronic components. Stefan Kölbl also announced further acquisitions with which DEKRA intends to secure or expand its position as a leading provider in key markets and regions. ‘DEKRA will continue on its chosen path and work consistently to make the world a safer place.’

Press contact:

Dr Torsten Knödler
Phone: +49 711 7861 2075
torsten.knoedler(at)dekra.com